13 AgreementCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
04/20/09
Council Date:
City Manager
Kevin Carruth
13.
04/27/09
RECOMMENDED MOTION:
Morion to approve a resolution approving an agreement with Paris Living to administex the Homebuyer
Assistant Grant; and authorizing the Ciry Manager to negoriate and execute all necessary documents.
POLICY ISSUE(S):
Agreement
BACKGROUND:
Last fall the City received a$390,000 Owner Occupied Housing Assistance grant from the Texas
Department of Housing and Community Affairs (TDHCA) HOME Program. The program will provide a
zero interest, deferred forgivable loan, with a term of 5-20 years (depending upon income), to reconstruct or
rebuild build a minimum of five homes for qualified low- and moderate-income homeowners. The City
issued RFQs for admuiistrarion of the program and Paris Living responded and is willing to administer the
program on behalf of the City again. The grant pays up to $15,000 for adnunistration of the grant, which is
the amount Paris Living will accept for the administration of the program.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution, TDHCA grant agreement; Paris Living agreement
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$
~ Department Report ~ Resolution
Budgeted Amt.
$-0-
❑ Presentation ❑ Ordinance
y'TD Actual
$
❑ Public Hearing ❑ Other
Acct. Name
Consultants
Acct. Number
30-0318-40-02
FISCAL NOTES:
Fees paid to Paris Living will not exceed the maxitnum of $15,000 paid by grant funds.
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris
Revised 2/04/08
(~rA - A
DRAFT
attorney\reswork\current\Paris Living Homebuyer Asst Grant Contract Res
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY
OF PARIS AND PARIS LIVING, A COMMUNITY DEVELOPMENT
CORPORATION, TO ADMINISTER THE HOMEBUYER ASSISTANCE
PROGRAM FUNDED BY THE TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS; AUTHORIZING THE CITY MANAGER TO EXECUTE
THE AFORESAID AGREEMENT AND ALL OTHER DOCUMENTS
NECESSARY TO THE FORMAL APPROVAL OF SAID GRANT; MAKIIVG
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 28th day of
January, 2008, in Resolution No. 2007-009, authorize an application to be made to the
Texas Department of Housing and Community Affairs for the 2008 Homebuyer Assistance
Program Grant, HOME/American Dream Downpayment Initiative (HOME/ADDI) award;
and,
WHEREAS, the Texas Department of Housing and Community Affairs has issued its
HOME Program Homebuyer Assistance Contract with the City of Paris in connection with a
HOME Investment Partnerships Program award entitled "Texas Department of Housing
and Community Affairs Home Program HOME Contract No. 1000930" for the period
beginning August 15, 2008, and ending August 14, 2010, in the total amount of
$208,000.00; and,
WHEREAS, it is deemed to be in the best interests of the citizens of Paris that the
City of Paris enter into an agreement with Paris Living to administer the City's Homebuyer
Assistant Grant Program to assist 20 low and moderate income families in the City of Paris
through the provision of down payment and closing cost assistance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the Agreement between the City of Paris and Paris Living to
administer the City's Homebuyer Assistant Program in connection with a HOME
Investment Partnerships Program award entitled Texas Department of Housing and
Community Affairs Home Program HOME Contract No. 1000930" for funds to assist 201ow
and moderate income families through the provision of down payment and closing cost
assistance in the City of Paris be, and is hereby approved.
Section 3. That the City Manager of the City of Paris, be, and he is hereby,
ooaca99
authorized and directed to execute, on behalf of the City of Paris, the Agreement with Paris
Living under the terms and conditions and in the form shown in Exhibit A, attached hereto,
as well as any and all other documents incident to implementation of the program.
Section 7. That this resolution shall be effective from and after its date of
passage.
PASSED AND APPROVED this 27th day of April, 2009.
Jesse James Freelen, Mayor
ATTEST:
Janice Ellis, City Clerk
ATTEST:
W. Kent McIlyar, City Attorney
000099
2800 Lamar Avenue, P.O. Box 26 ■ Paris, Texas 75460
903.739.9947 ■ fax 903.739.2104 ■ parisliving@sbcglobal.net
200£3 t)FF0€;Ei:S
April 21, 2009
President
Cti4'tten FeaidBe',
Jesse James Freelen
Mr
g',PasE,s,e,.
.
Pililmp t;ecaw
Mayor
City of Paris
Secs~e€ary-
p,p, gox 9037
Denise 'iVi!@ia~sea5
Paris, Texas 75461
SOARD OF
n~~ECFORS Dear Mayor Freelen:
Mfl{'y Cdil!'B(
Do" W1iyo"n Paris Livin -A Community Development Corporation ("Paris Living" or the "Corporation") is
R~Bi9 RCBllg~i! g
9erooaie E'ipken pleased to be selected by the City of Paris (the "City") to administer the City's Homebuyer
Jee~ard MoSe1tiy Assistance Program funded by the Texas Department of Housing and Community Affairs
y~ac'e Byr(i ("TDHCA") in the amount of $208,000, including administrative cost allowance. As outlined
JiB9 Drake
va~ McDowt•<i in our proposal, Paris Living will administer the above referenced program on behalf of the City
in exchange for a fee equal to 4% of the total project costs, which is the administrative fee
allowed by TDHCA, plus other project related soft costs allowable by TDHCA through the
Kev:n C.arreuth HOME Program. For your convenience, I have listed some terms and conditions below and, if
you concur, this letter will serve as our official Agreement (the "Agreement").
STAFF
MichtaeE Hun6:er
1. The City hereby engages Paris Living to provide, in general, the following:
(a) perform the overall administration of the Program at the direction of the City and in
accordance with the approved program design as submitted in the grant application;
(c) if req_uested, develop and implement a marketing effort for the Program including
writing news releases, meeting with Realtors at the request of the participating ienciers,
creating public service announcements for local Radio and Television;
(d) develop and disseminate information packets to, and train, participating lenders and
Realtors;
(e) work with each participating lender to process each borrower through to closing;
prepare or have prepared all forms for set-up and draw of funds as well as closeout
forms on behalf of the City;
(g) review and make recommendations designed to improve the Program;
(h) assist the City during TDHCA monitoring visits and prepare any required response to
any monitoring findings;
cvu
.»OOOluU IBIT.A-
(i) cause to be maintained a file on each property funded through the Program for review by
TDHCA and/or HUD;
(j) prepare any and all invoices from Paris Living or its consultant Hunter & Hunter
Consultants, Inc. ("H&HCI") to each property closing as necessary;
(k) provide any and all other services as may be required by the City and that Paris Living
has the ability and expertise to perform;
2. Specifically, the Scope of Work to be performed by Paris Living under this agreement
is as follows (Please note that some of the items listed below will be charged to each individual
loan as project related soft costs as is allowed under HUD regulations):
PROJECT MANAGEMENT
• Develop a record keeping system including the establishment of a filing system;
. Maintain the project and administrative files;
. Provide general advice and technical assistance to the City on implementation of the
Project and regulatory matters;
. Furnish the City with the necessary forms and procedures required for implementation
of the Project;
. Prepare and submit to TDHCA any and all documentation necessary for amending the
HOME contract;
• Prepare and submit Set-Up, Completion and other required reports;
. Serve as liaison for the City during any monitoring visit by TDHCA or HUD;
• Develop a Project affirmative marketing plan for the City;
• Conduct all necessary Lender/Realtor training sessions;
. Review all files received from lenders to ensure that the applicant and house qualifies
for the program;
. Assist the City in acquiring the services of independent inspectors and to ensure that all
houses in the program pass required inspections;
. Assist the City with acquisition of homebuyer training;
. Assist the City with the completion of second lien documents;
• Maintain all project files in a reasonable and logical order;
. Manage dispute resolution as required.
FINANCIAL MANAGEMENT
. Assist the City in proving its ability to manage the grant funds to the state's audit
division;
. Assist the City, if requested, in establishing and/or maintaining a bank account (direct
deposit account) and/or separate local bank account, journals and ledgers;
• Assist the City in responding to single audit report requests from TDHCA;
• Prepare al] fund reimbursements on behalf of the City;
• Review any invoices received for payment and file back-up documentation;
. Provide general advice and technical assistance to City Council, staff and consultants
on implementation of the Project and regulatory matters.
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ENVIRONMENTAL
. Prepare the administrative environmental documents for City signature;
• Prepare the Homebuyer Assistance Environmental Checklist for each property;
• Ensure that all lenders disseminate lead base paint information to prospective
borrowers;
• Ensure that all lead base paint certification and acknowledgments are signed and filed
in each individual project file;
• Ensure that an environmental file is created and maintained for the Program.
FAIR HOUSING/EQUAL OPPORTUNITY
• Ensure that all marketing materials prepared include affirmative marketing/equal
opportunity statements and logos;
. Maintain documentation of all program beneficiaries by ethnicity and gender.
CLIENT INTAKE QUALIFICATION AND INTAKE
. Meet with each prospective borrower and help them fill out the application for
assistance;
. Review each applicants financial information to ensure they qualify for the assistance to
be provided;
• Assist each applicant in completing all the forms required for assistance
• Collected information regarding income and employment to be included in the project
files;
• Clarify and resolve any issues related to the application intake process;
• Prepare notifications to sellers of properties to be purchased by qualified applicants;
• Prepare approval letters to the applicants for City staff signature;
• Perform any other necessary activities to ensure an effective application process.
AUDIT/CLOSE-OUT PROCEDURES
• Prepare the final completion report and Certification of Completion for filing with
TDHCA;
• Assist the Corporation in resolving any monitoring and audit findings;
• Assist the Corporation in resolving any third party claims;
• Provide City Auditor with HOME audit guidelines.
3. In connection with Paris Living's activities on the City's behalf, the City will cooperate.
with Paris Living; furnish or cause to be furnished to Paris Living all information and data
concerning the City and the City's project(s) which Paris Living reasonably requests; and
provide Paris Living with reasonable access to its elected and appointed staff to the extent Paris
Living deems appropriate.
The City acknowledges and understands that while Paris Living or its consultant(s) will be
administering the Program on the City's behalf, that this service does not, from the perspective
of TDHCA, relieve the City from any ultimate responsibility for the appropriate administration
of the Program.
4. In consideration of services provided pursuant to this agreement, the City agrees to pay
ar cause to be paid to Paris Living an administrative fee, in an amount equal to 4% of all
project funds expended. In addition, Paris Living will receive a potential additional amount,
not to exceed 10% of each successful down payment and closing cost award to be paid at each
000102
loan closing to defray costs associated with provision of application intake, document
preparation, environmental, homebuyer counseling, home inspections, or other project specific
services necessary to enable an individual property to close (presuming that Paris Living or one
of its consultant(s) performs that actual service). Paris Living agrees that its fees will not
exceed amounts allowable as costs that can be charged against the administrative or project
related soft costs of the Program or against third party participants.
Further it is understood that while the administrative costs will be charged for accomplishing
certain administrative tasks, that TDHCA requires that any administrative draw processed to
TDHCA not exceed the percentage of projects completed and drawn. Therefore, H&HCI will
bill the City and prepare subsequent documentation for reimbursement from TDHCA to the
City based upon the following general activity categories and per the following milestones:
% OF TOTAL
ACTIVITY* CONTRACT FEE
l
Affirmative Marketing
25%
.
2.
Record Keeping
36%
3.
Financial Management
38%
4
Administrative Environmental
01%
.
TOT
AL:
100%
% OF
BILLING MILESTONES**
CONTRACT FEE
1
2°a home loan completed and reimbursed by TDHCA
10%
.
2.
5"' home loan completed and reimbursed by TDHCA
15%
3
10t' home loan completed and reimbursed by TDHCA
25%
.
4
15t'' home loan completed and reimbursed by TDHCA
25%
.
5
19`h home loan completed and reimbursed by TDHCA
20%
.
6.
20'b (or last) home completed and reimbursed by TDHCA
5%
TOTAL: 20 home loans completed
100%**
*these categories reflect work activity for managing the homebuyer program in general.
Activities and work associated with individual loans and projects will be billed to each loan
closing as project related soft costs. Such activities would include such items as: document
preparation, individual property file reviews, environmental checklist preparation, and
document delivery.
**If the total contract is not completed the total administrative fees charged to the City and
subsequently to TDHCA for reimbursement under the Administrative fee portion of the
contract with the City will be in an amount that is the same percentage as the total number of
loans completed (as per the HiJD rules).
5. Further, the City understands and agrees that Paris Living may, upon written approval
from the City Manager of the City of Paris, subcontract portions of the administration of the
Program to other entities, with the understanding that Paris Living has the ultimate
responsibility and liability to the City for the administration of the Program.
6. Paris Living and the City agree that the period of this Agreement will be far a minimum
of three years from the agreement signing date or to coincide with the length and term of the
City's contract with TDHCA including any extensions to thereof, whichever period is longer.
7. It is expressly understood and agreed by the Parties to this Agreement, that Paris Living
is an independent contractor, and as such, Paris Living agrees to release, defend, indemnify and
- 000103
hold the Ciry of Paris, its elected officials, officers and employees harmless from and against
all damages, injuries, claims, property damage, losses, demands, suits, judgments and costs
including reasonable and necessary attorney's fees of any kind or character which arises from
or are related to this Agreement or the services to be provided by Paris Living, its consultants,
subconsultants, employees or contractors under this Agreement.
8. Paris Living shall obtain a Directors and Officers liability insurance policy in the
minimum amount of One Million Dollars ($1,000,000) insuring Paris Living, its directors,
officers, employees, consultants and subcontractors against any claims, demands, lawsuits,
settlements or costs, including reasonable attorney's fees, arising from the negligent actions or
inactions or intentional wrongful actions committed by Paris Living or its directors, officers,
agents, employees, consultants and or subcontractors related to this Agreement or the services
to be provided pursuant to this Agreement. Paris Living may invoice the City of Paris for the
annual premium for the policy.
9. Paris Living further agrees to administer the Homebuyer Assistance Program for the
City of Paris in strict compliance with the terms and requirements of the TDHCA HOME
PROGRAM, Home Contract No. 1000930 attached hereto and incorporated herein as Exhibit
«A »
10. Paris Living further agrees that at any time during normal business hours and upon
forty-eight (48) hours notice, Paris Living shall make available to representatives of the City
for examination all of its records, and the records of any consultant or subcontractor hired or
retained by Paris Living to administer this Program, with respect to matters covered by this
Agreement, and will permit such representatives of the City to audit, examine, copy and make
excerpts or transcripts of such records, and to audit all contracts, invoices, payroll records, ,
personnel records or other data relating to matters covered by this Agreement or by the
TDHCA Homebuyer Assistance Program, all for a period of three (3) years following the date
of final settlement of this Agreement or final payment by the City under this Agreement,
whichever is later.
11. For the convenience of the parties hereto; any number of counterparts of this Agreement
may be executed by the parties hereto. Each such counterpart shall be, and shall be deemed to
be, an original instrument, but all counterparts taken together shall constitute one and the same
Agreement. This Agreement shall become effective upon the date last signed by the parties
listed below.
If the foregoing correctly sets forth our Agreement, please have both enclosed copies of this
letter signed in the spaces provided and return one copy to us at P.O. Box 26, Paris TX 75461.
If you have any questions or desire further comment please call me at (903) 784-0836 or our
consultant, Michael Hunter at (972) 771-5907.
Very truly yours,
Paris Living-A Community
Development Corporation
By:
Clifton Fendley
President
City of Paris
Effective Kevin Carruth Effective
Date City Manager Date
w 000104
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
tUtU2n.tCl7Ca•StatC.ft'.1i5 $OARD MEMBERS
RickPerry C. Kent Conine, Chair
GOVERtiOR Leslie Bingham Escareiio
Tomas Cardenas, P.E.
Sonny Flores
L:AJuan S. Munoz, Ph.D.
1Vlichael Gerber
Gl
EXECUTIVE DIRECTOR oria Ray
August 22, 2008 fcl~~''~
Mr. Kevin Carruth, City Manager
Ciry Of Paris
PO Box 9037
Paris, TX 75461
RE: HOME Program HBA Application # 2008-0004 and Contract #1000930
Dear Mr. Carruth:
Enclosed is a copy of the fully executed Paris for your ecent XTDHCA OeME Pc' gr~am a az'd
Community Affairs (TDHCA) and the City Of
Your contract number is 1000930. Please note that the contract effective dates are stated on the contract's
signature page. Please notd in the enclllosed execut d co ~ tdministrative errors on pages 9 and 16.
T h e s e p a g e s h a v e b e e n r e plae
As a successful HOME applicant, the City Of Paris will be responsible for policies, procedures and
regulations detailed in your contract. In an effort to provide immediate technical assistance to you
throughout the contract process, specific HOME Division staff inembers have been assigned to your
contract.
- Your assigned Program Specialist is Charlotte Co( the H04ME Contract SyG~st mcaacces~and
Charlotte Cox will be responsible for assisting you with
navigation, setting up activities, requesting disbursement of funds, and loan documents.
Your Performance Specialist is Sylvia Mendez, (512) 475-2972> sylvia.mendez@tdhca.state.tx.us. Sylvia
Mendez will be responsibl~ed for and fulf ll yoiu~ contractual obligat onsersight to ensure that you are able to
meet the benchmarks requ
On behalf of the HOME Division staff, I would like to say thank you, and we look forward to working
with you in providing affordable housing in your community.
Sincerely,
~
7eannie Arellano, Director
HOME Division
JA:smg
Enclosures
ContractFile #1000930
221 Ensr 11T" • P. O. Box 13941 • AusTiN> "TExns 78?ll-3941 •(800) 527-0657 •(512) 475-3800
: J Pn„r~d o, -r,hd n,,p"
~ 000105
TE?iAS DEPARTME1iT OF HOL?SING AND COR~MUlOYiTY ESF'FAIRS
HOME PROGRaM
H0N1E CONTRACT # 1000930
WITH
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS,
CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M- SG-48-0100
Award Year: 2008
HUD Entity Type: State Recipient
This contract and agreement ("Contract") in corulection with a HOME Investment Partnerships
Program award is made and entered into by and between the TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas,
hereinafter referred to as "Department," and CITY OF PARIS, A Political Subdivision of the
State of Texas, ("Administrator"), herein collectively referred to as "Parties." For and in
consideration of the promises herein made, and the mutual benefits derived and to be derived, the
parties hereto agree and by execution hereof are bound to the mutual obligations and to the
nerformance and accomplishment of the tasks which are th_e substance of this contract.
SECTION 1. CONTRACT PERIOD:
This contract shall be effective and commence on the date the Department's Executive Director
executes the contract and shall terminate TWENTY-FOUR (24) months from the effective date,
unless otherwise specifically provided herein ("Contract Period").
SECTION 2. ADMINISTRATOR PERFORMANCE:
Administrator agrees to administer a Homebuyer Assistance award in accordance with the
HOME Investment Partnerships Act of 1990, 42 U.S.C. 12721-12839 (the "Act"); applicable
Federal and CPD Notices issued by HUD; implementing regulations, 24. C.F.R. Part 92; Tex.
Gov't Code Arui. Chapter 2306 (Vernon 2003), the HOME Investment Partnerships Program
Rules, 10 TAC §53 et seq. (the "HOME Rules"), the HOME Program Manuals ("HOME
Manual") and the Application Package. Adnlinistratar agrees to perform all activities in
accordance with the ternzs of the Performance Statement and Budget attached hereto as Exhibit
A; the Applieable Laws and Regulations attached hereto as Exhibit B; the Certifications attached
hereto as Ehhibit C; all sucli Exhibits incorporated herein for all relevant purposes; the
assuranees, certifications, and all other statements made by Administrator in its application for
- 000106
the project funded under this contract; and with all other ternls, provisions, and requirements
herein set forth.
SECTION 3. DEPA-R'TMENT OBLIGATIONS
A. Department shall be obligated to pay actual and reasonable costs incurred by
Administrator, during the contract period, for performances rendered under this contract
by Administrator, subject to the limrtations set forth in this Section 3:
l. It is expressly understood and agreed by the Parties hereto that Department's
obligations under this Section 3 are contingent upon the full and satisfactory
performance by Administrator of the activities herein described and the actual
receipt by Department of adequate federal funds to meet Department's liabilities
under this contract. If adequate funds are not available to make payments under
this contract, Department shall notify Administrator in writing within a reasonable
time after such fact is determined. In that event, this contract shall terminate and
neither Party shall have any further rights or obligations hereunder;
2. Department shall not be obligated to pay to Administratar for any costs incurred
by Administrator, which have been paid to Administrator or are subject to
payment to Administrator, or have been reimbursed to Administrator or are
subject to reimbursement to Administrator, by any source other than Department;
3. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator which are not allowable costs, as set forth in 24 C.F.R. Sections
rt~~ng~or-zle~ermina ions of-------
the U.S. Department of Housing and Urban Affairs, and Section 5 of this contract.
Funds provided under this contract may not be used for payment of prohibited
activities and costs as more particularly described in 24 C.F.R. Sections 92.214
and 92.602(b)(4) and/or Policies or Rules promulgated by the Department;
4. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator or for any performances rendered by Administrator which are
not strictly in accordance with the terms of this contract, including the terms of
Exhibit A, Exhibit B, and Exhibit C, of this contract; and
5. Department shall not be obligated to pay for costs incurred or performances
rendered by Administrator before the effective date of this contract or after the
termination date of this contract and shall further not be obligated to pay for any
costs incurred within the contract period and not billed to Department within sixty
(60) days after the termination date of this contract. the total of all
B. Not withstanding any other provision of this contract to the contrary,
payments and other obligations incurred by Department under this contract shall not
exceed the sum of TWO HUNDRED EIGH'I' THOUSAND AND NO/100 DOLLARS
(S208,000.00), of which EIGHT THOUSAND AND NO/100 DOLLARS, (S8,000.00)
is for Administrative expenses.
HOME Contract # 1000930
Page 2 of 21
..a 00010/
SECTY`lJ1V 'V. Y7YSBaJRSEln"YJGl`V~ FU1`IDS
A. Administrator may not request disbursement of funds for eligible costs incurred under
this contract until the funds are needed for payment of eligible costs in accordance with
the requirements of 24 C.F.R. Part 92. Administrator shall submit to Department at its
offices in Travis County, Texas, a properly completed electronic request for funds and
support documentation as required and as specified by Department. Department shall
determine the reasonableness of each amount requested and shall not make disbursement
of any such payment until Department has reviewed and approved such request.
Administrator agrees to attend Implementation Training prior to the disbursement of any
funds under this contract and prior to the closing of any loan.
B. Department reserves the right to recapture funds provided under this contract and the loan
documents in the event Department determines that Administrator will be unable to
expend all funds awarded within the contract period and development period as defined
in the loan documents. Administrator acknowledges that in the event Administrator is
unable to perform in accordance with the Performance Statement and Budget (Exiibit A),
interim construction loan documents, Administrator shall terminate this contract and
surrender Administrator's rights to any remaining funds.
C. It is expressly understood and agreed by the Parties hereto that any right or remedy
provided for in this Section 4, or in any other provision of this contract, shall not preclude
the exercise of any other right or-remedy under this contract or under any provision of
law. Nor shall any action taken in the exercise of any right or remedy be deemed a
waiver of anv other ri,ght ar reritedv--FaiLure,-to- Px~~y-righ~ar-rem€dy-her-P,~.~~tPr__----_
shall not constitute a waiver of the right to exercise that or any other right or remedy at
any time.
D. For Owner Occupied Housing Assistance and Homebuyer Assistance, no funds may be
requested for disbursement if the commitment for funding is not made 90 days prior to
the termination date in Section 1 of this Contract. For Tenant Based Rental Assistance no
funds may be requested for disbursement if the commitment for funding is not made 180
days prior to the termination date in Section 1 of this Contract. In the event that a loan
closing is required for single family rehabilitation or reconstruction, non-development
activities, no funds may be requested for disbursement if the commitment for funding is
not made 180 days prior to the termination date in Section 1 of this Contract.
SECTION 5. UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES AND PROGRAM INCOME
A. If Administrator is a governmental entity, Administrator shall comply with the
requirements of OMB Circular No. A-87; the requirements of 24 C.F.R. Part 85 as
applicable, and the Uniform Grant Management Standards, Chapter 783 Texas
Government Code, unless otherwise specified in this contract.
B. If Administrator is a non-profit or for-profit organization, Administrator shall comply
with requirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84
unless otherwise specified in this contract.
HOME Contract 9 1000930
Page 3 of 21
w 0001 08
C. Administrator may not retain program income or Communitv Housing Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of program income to fund other eligible HOME activities.
Administrator shall comply with the requirements of 24 C.F.R. 592.503 to account for
program income, repayments, and recaptured funds related to activities financed in whole
or in part with funds provided under this contract. Administrator shall provide reports of
program income as requested by Department. Program income derived under this
contract must be submitted to Department within seven (7) business days of receipt. In
any event, program income received from a prior HOME contract must be disbursed
before Administrator requests additional funds from Department and the amount of
requested funds should be reduced by the program income used and noted in the request.
D. If Administrator is not a government entiry, Administrator shall maintain director or
officer liability insurance coverage in an amount, not less than $100,000, that is sufficient
to protect the interests of Department in the event an actionable act or omission by a
director or officer of Administrator damages the Department's interests. Administrator
shall provide Department with certificates of insurance evidencing Administrator's
current and effective insurance coverage. Administrator agrees to notify the Department
immediately upon receipt of notification of the termination, cancellation, expiration, or
modification of any required insurance coverage or policy endorsements. Administrator
agrees to suspend the performance of all work performed under this contract until the
Administrator satisfies the required coverage requirements, obtains the required policy
endorsements and delivers to Department certificates of insurance evidencing that such
coverag;e and policy endor~~ents arP c„r_rznt__and_effectiue,z~-~ec~:..,~
from Department that the performance of work under this contract may recommence.
SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Administrator shall establish and maintain sufficient records, as specified by Department
and in accordance with 24 C.F.R. §92.508, including records that demonstrate that each
household assisted with funds provided under this contract is income eligible in
accordance with 24 C.F.R. §92.203.
B. Administrator agrees that Department, HUD, the Auditor of the State of Texas, the
United States General Accounting Office, the Comptroller of the United States, or any of
their duly authorized representatives, shall have the right to access and to examine all
books, accounts, records, reports, files, and other papers or property belonging to or in
use by Administrator pertaining to this contract. Administrator agrees to maintain such
records at its regular place of business.
C. All records pertinent to this contract shall be retained by Administrator for a period of
five (5) years in accordance with 24 C.F.R. §92.508(c), except:
1. If any litigation, claim, negotiation, audit, monitoring, inspection or other action
has started before the expiration of the required record retention period records
must be retained until completion of the action and resolution of all issues which
arise from it, or until the end of the required period, whichever is later.
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2. Records coverin'o displacement and acquisitions must be retained for five ( ' 5)
years after the date by which all persons displaced from the property and all
persons whose property is acquired for the project have received the final payment
to which they are entitled in accordance with 24 C.F.R. Part 92.
3. For rental housing developments, records must be retained for five (5) years after
the project completion date; except that records of individual tenant income
verifications, project rents and project inspections must be retained for the most
recent five (5) year period, until five (5) years after the affordability period
terminates.
D. Administrator acknowledges that Department is subject to the Texas Public Information
Act and Administrator agrees that funds received from the Department are subject to the
Texas Public Information Act and the exceptions to disclosure as provided under the
Texas Public Information Act.
E. Administrator shall include the substance of this Section 6 in all of its subcontracts.
SECTION 7. REPORTING REQUIREMENTS
A. Administrator shall submit to Department such reports on the operation and performance
of this contract as may be required by Department, including but not lirnited to the reports
specified in this section. Administrator shall provide Department with all reports
necessary for Department's compliance with 24 C.F.R. Part 92.
B. In addition t4 the limitations on_.liahili.i}---athP,-wLsP.--spec'-f=~ -i-n-41iis--c~ac#~ iIt--is--
expressly understood and agreed by the Parties hereto that if Administrator fails to submit
to Department in a timely and satisfactory manner any report required by this contract or
_ the HOME Manual, Department may, at its sole option and in its sole discretion, withhold
any or all disbursements otherwise due or requested by Administrator hereunder. If
Department withholds such disbursements, it shall notify Administrator in writing of its
decision, the reasons for this action and the time period in which Administrator must
bring itself into compliance. Disbursements withheld pursuant to this paragraph may be
held by Department until such time as the Administrator is in compliance with the
requirements for which funds are being withheld. If Administrator fails to perform as
required within the stated cure period, Department may terminate this contract and
Administrator hereby agrees and acknowledges that upon termination, Adrninistrator's
rights to any funds shall be terminated.
C. In addition to other reports, the Administrator shall provide reports to Department
regarding program activities to evidence progress of performance in accordance with the
requirements of the Act, 10 TAC §53 and contained in the Performance Statement and
Budget (Exhibit A).
SECTION 8. MONITORING
Department reserves the right to carry out field inspections and desk reviews to ensure
compliance with the requirements of this contract. After each monitoring visit or desk review,
HOME Contract # 1000930
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Department shall provide Administrator with a written report of the monitor's findings. If the
znonitoring reports note deficiencies in Administrator's performance under the ternis of this
contract, the monitoring report shall include requirements for the tiniely correction of such
deficiencies bv Administrator. Failure by Administrator to take the action specified in the
monitoring report may be cause for suspension, termination or repayment of funds, as provided
in Sections 16, 17, and 18 of this contract. Adininistrator a(irees to attend training, as required by
Department, including Implementation Training, Wednesday Workshop training, an d 1 s`
Thursday Income Eligibility Training and other HOME Program workshops.
SECTION 9. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the Parties hereto that Department is contracting with
Administrator as an independent contractor, and that Administrator, as such, agrees to hold
Department harmless and to the extent allowed by law indemnify Department from and against
any and all claims, demands, and causes of action of every kind and character which may be
asserted by any third party occurring or in any way incident to, arising out of, or in connection
with the services to be performed by Administrator under this contract.
SECTION 10. SUBCONTRAC'Y'S
A. Administrator shall only subcontract for nerformanse_-of__activit;P~r.rihed--in..-th-is---------
contract after Administrator has obtained the appropriate documentation verifying the
subcontractor's eligibility, as specified by Department, for each such proposed
subcontract. Administrator, in subcontracting for any activities described in this contract,
expressly understands that in entering into such subcontracts, Department is in no way
liable to Administrator's subcontractor(s).
B. In no event shall any provision of this section constitute adoption, ratification, or
acceptance of Administrator's or subcontractor's performance hereunder. Department
maintains the right to insist upon Administrator's full compliance with the terms of this
contract, and by the act of approval under this section, Department does not waive any
right of action which may exist or which may subsequently accrue to Department under
this contract.
C. Administrator shall comply with all applicable federal, state, and local laws, regulations,
and ordinances for making procurements under this contract. Administrator shall ensure
compliance with the requirements of 24 C.F.R. §§84.40 - 84.48 (if Administrator is a
nonprofit organization) or 24 C.F.R. §85.36 (if Administrator is a govemment entity), in
the procurement of property and services.
D. Administrator shall include language in any subcontract that provides the Department and
HUD the authority to directly review, monitor, and/or audit the operational and financial
performance and/or records of work performed under this Contract by any third-party,
includin2 subeontractors, contractors and consultant or serviee provider.
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Administrator shall include in any subcontracts that failure to adequately perform under
this Contract may result in penalties up to and includino, Debarnzent from performing
additional work for the Department.
SECTION fl 1. COI>1FLICT OF INTERES'T
A. Administrator shall ensure that no employee, agent, consultant, ofticer or elected or
appointed official of Administrator, who exercises or has exercised any functions or
responsibilities with respect to activities assisted with funds provided under this contract
or who is in a position to participate in a decision making process, or gain inside
information with regard to such activities, may obtain a personal or financial interest or
benefit from a HOME assisted activity, or have an interest in any contract, subcontract, or
agreement (or the proceeds thereof) with respect to a HOME assisted activity either for
themselves or those with whom they have family or business ties, during their tenure or
for one year thereafter.
B. Administrator shall ensure that no employee, officer, or agent of Administrator shall
participate in the selection, or in the award or administration of a subcontract supported
by funds provided hereunder if a conflict of interest, real or apparent, would be involved.
Such conflict of interest would arise when: 1) the employee, officer, or agent; 2) any
member of his or her immediate family; 3) his or her partner; or 4) any organization
which employs, or is about to employ any of the above, has a financial or other interest in
the firm orerson selected to perform the subcontract Administrator shall comnlv wi.th
24 CFR §92.356 (exceptions can only be waived by HUD).
C. No owner, developer or sponsor of HOME-assisted housing, including their officers,
employees, agents, consultants ar elected or appointed officials may occupy a HOME-
assisted unit in a development (with the exceptions of (1) an individual living in a
HOME-assisted rental housing development where he/she is a project manager or a
maintenance worker in that development and (2) an individual receiving HOME funds to
acquire or rehabilitate his/her principal residence).
D. None of the funds provided under this contract may be paid to an entity or organization
that provides downpayment assistance if the activities of that entity or organization are
financed in whole or in part, directly or indirectly, by contributions, service fees, or other
payments from the sellers of housing, whether or not made in conjunction with the sale of
specific housing acquired with funds provided under this contract.
E. Administrator shall include the substance of this Section 11 in all of its subcontracts.
SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTIVITIES
A. Administrator shall ensttre that no person shall, on the grounds of race, color, religion,
sex, handicap, familial status, or national origin, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under, any program or activity
funded in whole or in part with funds provided under this contract.
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B. None of the performances rendered by Administrator under this contract shall involve.
and no portion of the funds received by Administrator under this contract shall be used in
support of any inherently religious acti~~ity. such as worship, religious instruction, or
proselytization. Administrator shall comply with the regulations promulgated by the U.S.
Department of Housina and Urban Development at 24 C.F.R. §92?57.
C. Administrator shall include the substance of this Section 12 in all of its subcontracts.
SECTION 13. I,EGAL AUTHORITY
A. Administrator assures and guarantees Department that Administrator possesses the legal
authority to enter into this contract, to receive funds authorized by this contract, and to
perform the services Administrator has obligated itself to perform under this contract.
B. The person(s) signing and executing this contract on behalf of Administrator does hereby
warrant and guarantee that he is duly authorized by Administrator to execute this contract
on behalf of Administrator and to validly and legally bind Administrator to all the terms,
performances, and provisions of this contract.
C. Administrator shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by U. S.
Department of Housing and Urban Development and/or the Department. In addition,
Department shall have the right to suspend or terminate this contract if Administrator is
debarred, suspended, proposed for debarment, or is otherwise ineligible from
____participatin~ in the HOME Pro~ram by HUD or the Department_ Administrator
acknowledges and agrees that this section specifically includes, but is not limited to,
consultants hired by Administrator to assist Administrator in any aspect relative to the
activities of this contract. ,
SECTION 14. LITIGATION AND CLAIMS
A. Administrator shall give Department immediate notice, in writing, of the occurrence of
any of the following events:
1. any action, including any proceeding before an administrative agency, filed
against Administrator in connection with this contract; and
2, any claim against Administrator, the cost and expense of which Administrator
may be entitled to be reimbursed by Department.
B. Except as otherwise directed by Department, Administrator shall furnish irninediately to
Department copies of all pertinent papers received by Administrator with respect to such
action or claim.
SECTION 15. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this contract, any changes, additions, or
deletions to the terms of this contract shall be in writing and executed by both parties to
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this contract. An executed facsimile copv will be sufficiei7t to evidence the Parties
agreement to any amenciinent, revision or chan~~e to this contract.
B. It is understood and al,-,reed by the Parties hereto that perionnance of all activlties under
this contract inust be rendered in accordance %vith the Act, Exhibit A of this Contract, the
regulations promulgated ui7der the Act, the assurances and certifications made to
Department by Administrator, and the asstlralices and certifications made to the United
States Department of Housing and Urban Development by the State of Texas witli regard
to the operatiorl of the HOME Program. Based on these coilsiderations, and in order to
ensure the legal and effective performailce of this contract by both Parties, the Parties
herein agree that the activities under this contract are amended by the provisions of the
HOME Mantial and any amendments or revisions thereto, and may be further amended in
the following manner:
1. Department may issue guidance which serves to establish, interpret, or clarify the
performance requirements under this contract. Such policy directives shall:
a. be promulgated in the form of HOME Program Policy Issuances;
b. have the effect of qualifyin; the terms of this contract; and
c. be binding upon Administrator as if written herein.
2. Provided, however, that said guidance and any amendments to the HOME Manual
shall not alter the terms of this contract so as to release Department of any
obligation specified in Section 3 of this contract to reimburse costs incurred by
Administrator pnor to the effective date of said amendinent or policy directive.
C. Any changes, additions, or deletions to the terms of this contract which are required by
changes in federal _or state law, or regulations, are automatically incorporated into this_
contract without the requirement of a written amendment hereto, and shall become
effective on the date designated by such law or regulation.
D. Amendment requests must be submitted in writing by Administratar sixty (60) days prior
to this contract's termination date, as specified in Section L SECTION 16. SUSPENSION
In the event Administrator fails to cornply with any tenn of this contract, Department may, upon
written notification to Administrator, suspe7ld this contract in whole or in part, w.ithhold further
disbursements to Administrator, and prohibit Administrator from incurring additional obligations
for funds under this contract. Adnlinistrator acknowledges that it does not have a right to
suspension as a pre-requisite to termination.
SECTION 17. TERMINATION
A. Department ma_y terniinate this contract in whole or in part, in accordance with this
section. In the event Administrator fails to comply, in Department's sole discretion and
judgi-rient, xith any ternl of this contract, or any term stated in a federal statute or
regulatioil, or with any assurance given to Departnlent by Administrator, or "vith any term
HOME Contract 4] 000930
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in a state plan, or with Adrninistrator's application, the noticeof award, or else~vhere
Department may take any of the following actions:
1. Temporarily withhold disbursenzents pending correction of tlle deficiency by
Administrator;
2. disallow all or part of the cost of the activity or action not in compliance;
3. suspend this contract upon wntten notification to Administrator of the deficiency
and the penod within which Administrator must comply;
4. accept Administrator's failure to comply or correct any deficiency within the time
penod set forth in any written notice of suspension as evidence of Administrator's
inability to perform under the terms of this contract, Administrator's intent to
terminate this contract and Administrator's agreement to surrender all rights to
remaining funds;
5. withhold further HOME awards from Administrator, and/or affiliated Parties;
6. take more severe enforcement action against Administrator by taking any other
remedies that may be legally available to Department, as determined by
Department, to ensure compliance with the terms of this contract.
B. At the sole discretion of Department, if Administrator has not achieved substantial
progress within six (6) months of the effective date of this Contract or has failed to meet
any performance benchmark, this Contract may be terminated. Administrator may appeal
to have the Contract reinstated'in accordance with 10 TAC §1.7.
SECTION 18. AUDIT
A, In addition to the requirements of Section 6(B) of this contract, Adrninistrator shall
submit to Department, within sixty (60) days after the end of each fiscal year, an Audit
Certification Fom1 as specified by Department for each fiscal year in which any months
of the Administrator's fiscal year overlaps a month of the contract period. Unless
otherwise directed by Department, Administrator shall arrange for the performance of an
annual financial and compliance audit of funds received and performances rendered under
this contract, subject to the following conditions and limitations:
1. Administrator shall have an audit conducted in accordance with 24 C.F.R. §84.26
or §85.26, as applicable; OMB Circular A-133; and 31 U.S.C. 7501 for any of its
fiscal years included within the contract period specified in Section 1 of this
contract in which Administrator has expenses of more than $500,000 in federal
financial assistance provided by a federal agency in the fonn of grants, contracts,
loans, loan guarantees, property, cooperative agreements, interest subsidies,
insurance or direct appropriations, but does not include direct federal cash
assistance to individuals. The tern-i federal financial assistance includes awards of
financial assistance received directly from federal agencies, or indirectly through
other units of State and local goverrunent.
2. At the option of Administrator, each audit required by tllis section may cover
Administrator's entire operations or each department, agency, or establishment of
Administrator which received, expended, or otherwise administered federal funds.
HOME Contract # ] 000930
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3. Notwithstanding anything to the contrary in Section 3, Administrator may utilize
funds budaeted under this contract to pay for that portion of the cost of such audit
services properly allocable to the activities funded by Department under this
contract. Provided, however, Department shall not mal:e payment for the cost of
such audit services until Department has received the audit report from
Administrator.
4. Unless otherwise specifically authorized by Department in writing, Administrator
shall submit two (2) copies of the report of such audit to Department within thirty
(30) days after completion of the audit, but no later than nine (9) months after the
end of each fiscal period included within the period of this contract. Audits
performed under this section are subject to review and to direction on resolution
of findings by Department or its authorized representative.
B. Notwithstanding anything in Section 18(A) to the contrary, Department reserves the right
to conduct an annual financial and compliance audit of funds received and performances
rendered under this contract. Administrator agrees to permit Department, or its
authorized representative, to audit Administrator's records and to obtain any documents,
materials, or information necessary to facilitate such audit.
C. Administrator understands and agrees that it shall be liable to Department for any costs
disallowed pursuant to financial and compliance audit(s) of funds received under this
contract. Administrator further understands and agrees that reimbursement to Department
of such disallowed costs shall be paid by Administrator from funds which were not
rovided or otherwise made available to Administrator under tYus contract______
_ - -
.I? .
D. Administrator shall take all necessary actions to facilitate the performance of such audit
or audits conducted pursuant to this section as Department may require of Administrator.
E. All approved HOME audit reports shall be made available for public inspection within
thirty (30) days after completion of the audit.
SECTION 19. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The environmental effects of each activity carried out with funds provided under this
contract must be assessed in accordance with the provisions of the HOME Manual,
National Environmental Policy Act of 1969 (NEPA) and the related activities listed in
HUD's implementing regulations at 24 C.F.R. Parts 50, 51, 55 and 58. Each such activity
must have an environmental review completed and support documentation prepared
complying with the National Environmental Policy Act of 1969 and regulations at 24
C.F.R. Parts 50, 51, 55 and Part 58. No funds may be.committed to an activity before
the completion of the environmental review process, including the requirements of
24 C.F.R. §58.6, and the Department has provided written clearance.
B. If funds are provided under this contract to a"state recipient," the recipient is delegated
authoriry as the Responsible Entity (RE) and makes all environmental clearance
determinations. The Departme.nt assumes the role of HUD pursuant to 24 CFR Part 58,
"Subpart H- Release of Funds for Particular Projects" and is responsible for reviewing
HONIE Contract # 1000930
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and approving the Ftequest for Release of Funds and granting the recipient the Authority
to Use Grant Funds.
C. A non-governmental entin is not delegated authority to become an RE and make
environmental detenninations and therefore, shall assist Department in completing the
environmental review by providing all relevant documentation needed to perform an
environmental review, or carry out mitigating nleasures required, or selecting an alternate
property for assistance.
D. Both state recipients and subrecipients or CHDOs rnust attend HOME training for
environmental assessment. The assessments must be satisfactory to Department. This
contract is conditional in nature and does not grant Administrator legal claim to any
HOME funds for a specific project or site until the environmental review process is
approved by Department. The agreement to provide funds to the project is conditional on
Department's or Administrator's determination to proceed with, modify or cancel the
project based on the results of a subsequent environmental review.
E. Funds provided under this contract may not be used in connection with acquisition or
rehabilitation or new construction of housing located in an area identified by the Federal
Emergency Management Agency (FEMA) as having special flood hazards, unless the
locality in which the site is located is participating in the National Flood Insurance
Program (NFIP) or less than a year has passed since FEMA notification regarding such
hazards and flood insurance is obtained as a condition of approval of the commitment.
Administrator must determine if the locality participates in the NFIP during the
preliminary stages of the environmental clearance process.
SECTION 20. AFFIRMATIVE 1VIARKETING
Administrator shall adopt affirmative marketing procedures and requirements. The affirmative
. marketing procedures and requirements shall include, but not be limited to those specified in 24
C.F.R. §92.351. The procedures and requirements shall be prepared in accordance with the
HOME Manual.
SECTION 21. LABOR STANDARDS
A. Every contract for the construction (rehabilitation or new construction) of housing that
includes 12 or more units assisted with HOME funds must contain a provision in
accordance with 24 C.F.R. §92.354. Contracts involving their employment shall be
subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards
Act, 40 U.S.C. Sec. 328 to 334. Construction contractors and subcontractors must
comply with regulations issued under these Acts and with other federal laws, and
regulations pertaining to labor standards and HUD Handbook Federal Loan Standards
Compliance in Housina and Communitv Development Programs, as applicable.
B. Administrator, by execution of this Contract, hereby certifies that Administrator, or a
branch, division, or department of Administrator does not and wi11 not knowingly employ
an undocumented worker, where "undocumented worker" means an individual who, at
HOME Contract # 1000930
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the time of employment, is not laNvfully adtnitted for permanent residence to the United
States or authorized under law to be employed in that manner in the United States. If.
after receiving a public subsidy. Administrator, or a branch, division, or department of
Administrator is con\-icted of a violation under 8 U.S.C. § 1324(a)(f). Administrator shall
repay the amount of the public subsidy as stated under Section 3.13. of this Contract with
interest, at the rate of according to the other ternis provided by an agreement under Texas
Government Code §2264.053, not later than the 120`" day after the date the Department
notifies Administrator of the violation. In accordance with a previous agreement between
the Department and Administrator, Administrator acl:nowledges and agrees that if
Administrator, or branch, division, or department of Administrator is convicted of a
violation under 8 U.S.C. §1324(a)(f), Administrator shall repay the amount of the public
subsidy as stated under Section 3.13. of this Contract with interest, at an interest rate per
annum to be determined by the Department's Board of Directors at the time of award, not
later than the 120`h day after the date the Department notifies the Administrator of the
violation.
SECTI.ON 22. SPECIAL CONDITIONS
A. Department shall not release any disbursements for any costs incurred by Administrator
under this contract until Department has received certification from Administrator that its
fiscal control and fund accounting procedures are adequate to assure the proper disbursal
--O-~.at1d-aC~-ountln.gJnr,-fiulds-pxQy-td~ilucier-this_.contraci-D-epartment shall -spAari£y_-thi-
content and form of such certification.
B. A housing unit assisted with funds provided under this contract must meet the
affordability requirements of 24 C.F.R. §92.254(a) and (c) and 92.612(c). Administrator
is liable and agrees to repay an amount specified by Department for each housing unit
assisted with funds provided under this contract that fails to comply, or ceases to comply,
with the affordability requirements of this contract. If Administrator lends funds
provided under this contract to anyone, the resulting loan agreement, note, and mortgage
rnust provide that the affordability requirements must continue to be met throughout the
term of the loan and that the affordability requirements shall be binding upon the heirs,
successors, assignees, and transferees of Administrator. Department shall not release any
funds for any costs incurred by Administrator under this contract until Department has
received from Administrator an executed, legally enforceable agreement from each
homeowner containing remedies adequate to enforce the affordability requirements of 24
C.F.R. §92.254, as applicable, with Administrator. Administrator shall record such
agreements in the real property recards of the county in which the housing unit is located
and return the original documents, duly certified as to recordation by the appropriate
county official, to Department. Receipt of such certified recorded original agreements by
Department is required prior to disbursement of any funds under this contract.
C. Upon termination of this contract, all funds remaining on hand on the date of termination,
and all accounts receivable attributable to the use of funds received under this contract
shall revert to Department. Administrator shall return these assets to Department within
seven (7) business days after the date of tennination.
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SEC'i'ION 23. ORAL AND WRITTEN AGREEMENTS
hislcointracttha e subject
A. All oral and written agreements bn hor po the e~ ethis cut on contract
en
matter of this contract that were made pr
reduced to writing and are contained in this contract. B. The attachments enumerated and denominated below are a part of this contract and
constitute promised performances under this contract:
1. Exhibit A, Performance Statement and Budget
2. Exhibit B, Applicable Laws and Regulations
3. Exhibit C, Certification Regarding Lobbying
SECTION 24. V1ENUE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County,. Tekas.
-
SECTION 25. COMPLIANCE WITH FEDERAL STATE AND LOCAL LAW
Administrator shall comply with all federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to the
activities and performances of Administrator under this contract. Upon request by Department,
Administrator shall furnish satisfactory proof of its compliance therewith.
SECTION 26. CERTIFICATION REGARDING CERTAIN DISASTER RELIEF
CONTRACTS
The Department may not awaxd a contract that includes proposed financial participation by a
person who, during the five-year period preceding the date of this Contract, has been convicted of
violating a federal law in coruzection with a contract awarded by the federal government for
relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by Section
39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after September 24,
2005; or assessed a penalty in a federal civil or administrative enforcement action in cormection
with a contract awarded by the federal government for relief, recovery, or reconstruction efforts
as a result of Hurricane Rita, as defined by Sectio~ 39.459, UtB~ties ~°ding thisaC.ontract athe
any other disaster occurring after September ~4, 200 ~ e
Administrator hereby certifies that:
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"Under Section 2261.053, Government C'ode, Administrator certifies that the individual or
business entity named in this Contract is not ineligible to receive the specitied contract and
acknoxledges that this contract may be ternunated and payment withheld if this eertification is
inaccurate."
WITIi1ESS OUR HAND EFFECTIVE:
CITY OF PARIS,
A POb,ITICAL SUBDIVZSION OF T'HE S'I'ATE OF TE%AS,
Bv:
Name:
Title:
Date: August 1, 2008
TI~~ C-ONT-~i-C-T- V~'-AS--PR1-~~~B-Y 3'IIE 49AA2B- 0F-DIREET(3RS--fjN-liA'Y-$; 2088;_
AND IS NOT EFFECTNE UNLESS SIGNED BY THE EXECUTIVE DIRECTOR OF THE
T'EXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIl2S, OR ffiS/HER
AUTHORIZED DESIGNEE.
THIS CONTRACT IS APPROVED, ACCEPTED AND MADE EFFECTIVE ON
i`- 2pp ~AND WILL TERMINATE ON
20~ ON BEI-IALF OF:
o ~ t
. ~
TEXAS DEPARTMENT OF HOUSING AND COMIVIUNITY AFFAIl2S
HOME Contract # ] 000930
Page 1 5 of 21
000120
TEXAS DEPARTMENT OF HOUSI?!`G AND C0iN1iNIUNITN' ~FFAIRS
HON~IE CONTRACT # 1000930
EYHIBIT A
PERE'OR.'~1 aNCE STATEMENT AND BUDGET
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS,
Administrator shall carry out the following activities identified by this Exhibit A and in its HOME
Program Application Number 2008-0004.
HOMEBUYER ASSISTANCE PROGRAM
Administrator shall implement a Homebuyer Assistance Program in accordance with 24 C.F.R. Part
92 and the applicable Texas statutes and the Texas Administrative Code utilizing TWO HUNDRED
THOUSAND AND NO/100 DOLLARS ($200,000.00), in project funds and EIGHT THOUSANI)
AND NO/100 DOLLARS ($8,000.00), in adrninistrative funds. Each homebuyer assisted must
meet the definition of a first time homebuyer as defined in 24 CFR Part 92.
Administrator shall use the funds provided under this contract to provide Homebuyer Assistance to a
nliimum o~TWENTY724~11omebuyers. 7erformance und er the Contract, term will be based on the
following benchmarks from the Contract begin date:
(A) 6 months, exeinpt administrative and environmental clearance must be complete for at least-
one Household to be assisted;
(B) 12 months, environmental clearance must be complete for at ]east 50% of the Households to
be assisted, 50% of funds must be committed, 25% of funds drawn, and 25% of match supplied; .
(C) 18 months, enviroiunental clearance must be complete for at least 75% of the Houseliolds to
be assisted, 75% of funds must be committed, 50% of funds drawn, and 50% of matcli
requirement supplied; and
(D) 24 months, 100% of funds must be comniitted, 100% of fu«ds drawn, and 100% of niatched
supplied.
Administrator shall provide HOME Homebuyer Assistance in the form of a 2nd and/or 3rd lien. The
amount for dowzlpayment and elosing cost assistance, including soft costs, shall not exceed Teti
Thousand and No/100 Dollars (S 10,000.00). Each loan will be a zero percezlt (0%) interest defen-ed
forgivable loan. The loan teml will be five (5) years based on the total amount of assistance provided
and in accordance tivith the federal affordability requirements as defined in 24 CFR §92254.
HOME Contract P 1000930
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All loans to assisted homebuvers must be evidenced by loan documents provided by Department.
Each loan to an assisted homebuver must be payable to Department. Each loan for rehabilitation
shall be evidenced by a construction loai1 agreement, note, deed of trust, mechanic" s lien note,
and mechanic's lien contract secured by the property and must be fully executed before any
construction activities commence.
If at any time prior to the full loan period there occurs a resale of the property, a refinance of any
superior lien, a repayment of any superior lien, or if the unit ceases to be the assisted
homebuyer's principal residence, the loan shall become due and payable.
Forgiveness of the loan balance is calculated based on a pro-rata annual share of the loan term.
The anniversary date of the loan shall constitute completion of the year. Any partial year shall
not be waived. The amount due will be based on the pro-rata share number of years of the
remaining loan term.
In the event the home is sold (voluntary or involuntary), the assisted homebuyer will pay the loan
balance from the net proceeds of the sale. The net proceeds are the sales price minus superior
loan repayment (other than HOME funds) and any closing costs. A copy of the HUD closing
statement must be provided.
In the event of refinance of any superior lien, at Department's discretion one of the following
options will apply_
1. re-subordination of the Note if the assisted homebuyer can provide documentation,
acceptable to the Department, showing that no funds are due the assisted homebuyer as a
result of the refinance; or
2. the assisted homebuyer will pay off the Department's note from loan proceeds from the
refinanced superior lien.
In the event of payoff of any superior note, the assisted homebuyer will have the option of:
1. repaying the balance of the Department's Note in full; or
2. repaying the balance of the Department's Note in equal monthly installments over a five (5)
year period.
ZERO (0) of the TWENTY (20) assisted homebuyers shall have incomes that are less than or
equal to thirty percent (30%) of the AMFI, as defined by HUD.
In addition to the number of assisted homebuyers that have incomes less than or equal to 30% of
the AMFI as required above, ZERO (0) of the TWENTY (20) assisted homebuyers shall have
incomes that are less than or equal to fifty percent (50°io) of the AIVIFI, as defined by HUD.
HOME Contract # 1000930
Page 17 of 21
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In addition to the number of assisted homebtiyers that have incomes less than or equal to 300i0
and SO% of the AMFI as required above, ZERO (0) of the TWENTY (20) assisted homebuyers
shall haee incolnes that are less thall or equal to siaty percent (60%) of the AMFI, as detizied bv
HUD.
In addition to the number of assisted homebuyers that have incomes less than or equal to 30%,
50% and 60% of the AMFI as required above, TWENTY (20) of the TWENTY (20) assisted
homebuyers shall have incomes that are less than or equal to eighty percent (SO%) of the AMFI,
as defined by HUD.
Administrator may use the funds provided under this contract to provide assistance to additional
homebuyers once the minimum of TWENTY (20) have been assisted provided that the
additional homebuyers' incomes are less than or equal to eighty percent (80%) of the AMFI, as
defined by HUD, and all other requirements are met.
Each unit must, at a minimum, meet or exceed the Texas Minimum Construction Standards
(TMCS) or Colonia Housing Standards, if located in a Colonia, as well as local building codes
and zoning ordinances. For construction of single family affordable housing, Administrator must
also ensure compliance with the universal design features established by §2306.514 Texas
Government Code, the energy efficiency standards established by §2306.187 of the Texas
Government Code, energy standards as verified by. RESCHECK certification, and the.
International Residential Codes, as required by Subchapter 6, Chapter 214, of the Local
Government Code. - - - -
Administrator is limited to serving homebuyers who certify the assisted unit will be their primary
residence, is located in the rural area of the City of Paris, Lamar County, Texas, in Uniform
State Service region Number Four (4), and in a jurisdiction that is not a participating
jurisdiction, as defined in 24 C.F.R. §92.105, unless otherwise approved by the Department.
MATCH
Administrator will provide match funds in the total amount of Fourteen Thousand and No/100
Dollars ($14,000.00), as specified in its HOME Application, or other eligible match as approved
by Department.
Match funds must be reported on a pro-rata basis based on disbursements. Support
documentation evidencing the match contribution must be submitted by Administrator upon
request for disbursement of funds for each project assisted, in accordance with 24 C.F.R. Part 92,
the Department's HOME Rule, HOME Program Match Guide, CPD Notice 97-03 HOME Match
Guidance and HOME Program Manual.
HOME Contract #10009;0
Paee ] 8 of 21
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ADMINISTRA'TION
Administrator may expend funds provided under this contract for reasonable administrative and
planning costs incurred directly related to this contract, in accordance with Sections 3, 4, and 5 of
this contract and 24 C.F.R §92.207 in an amount of HOME funds that is not more than four
percent (4%) or Eight Tlaousand and No/100 Dollars ($8,000.00) of the total amount of project
funds received under this contract. Administrator shall be allowed to draw up to ten percent (10%) of the actual allowable
administrative costs incurred at the initial stage of the Contract, with the remaining ninety
percent (90%) funded on a pro-rata basis, based on project fund disbursements.
HOMEBUYER TRAINING PROGRAM
Administrator must provide a Homeblryer Counseling Program to all homebuyers assisted under
this contract. The local Homebuyer Counseling Program may include; but is not limited to,
Financial Management, Homebuyer purchase process such as, preparing for homeownership,
shopping for a home, obtaining a mortgage, closing, post purchase counseling and foreclosure
prevention. Administrator shall maintain a file containing all activity relating to efforts made to
guide recipients toward homeownership.
HOME Contract #1000930
Page 19 of 21
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TEXA5 DE~ARTMENT OF HOUSING A1@D COMM-UNITY AFF'AIRS
HOME PROGI2A1vI
I$OME CON'I'I2AC'I' # 1000930
EXHIBIT B
THE APPLICABLE LAVVS AND REGULATIONS
CITY OF PARIS,
A POLITICAL SiJBDIVISION OF THE STATE OF TEXAS,
Administrator shall comply with all federal, state, and ]ocal laws and regulations applicable to the
activities and performances rendered by Administrator under this contract, including but not limited to
the laws and the regulations specified in Sections I through N of this Exhibit B.
1. CIVIL RIGHTS
In addition to The Fair Housing Act (42 U.S.C. §3601 et seq. and implementing regulations at 24
C.F.R. Part 100), specific federal requirements are set forth in 24 C.F.R. Part 5
II. LEAD-BASED PAINT
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. §4821 et seq. and 24 C.F.R. Part 35
III. ENVIRONMENTAL STANDARDS
The environmental effects of each activity carried out with HOME funds must be assessed in
accordance with the provisions of the National Environmental Policy Act of 1969 (42 U.S.C.
§4321 et. seq.) and the related authorities listed in HLTD's implementing regulations at 24 C.F.R.
parts 50 and 58.
IV. ACQUISITION/RELOCATION
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C.
§4201 - 4655 and 49 C.F.R. Part 24.
HOME Contract#1000930
Page 20 of 21
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TEXAS g9EPARTMENT OF HOLTSING kN'D CO1VIAILTNITY AFFAIR5
RpME CON'I'RAC'I' # 1000930
EXHIBIT C
CERTIFICATION I2EGARDING LOBBYLIVG FOR
CONTRACTS, GRAN'I'S, LOANS, AND COOl'ERA'I'IVE AGREEl!'IEN'I'S
CITY OF PARIS,
A POLI'I'ICAL SUBDIVISION OF THE STATE OF TEXAS,
The undersigned certifies, to the best of its knowledge and belief, that:
No federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or att~ emti ti f congress~orffican employee of a
an agency, a member of congress, an officer oployee o
member of congress in connection with the awarding of any federal contract, the making of any
federal grant, the making of any federal loan, the entering into of any cooperative agreement, or
modification of any federal contract, grant, loan, or cooperative agreement.
2. If any funds other than federal appropriated funds have been paid or will be paid to- any person
for influencing or attempting to influence an officer or employee of any agency, a member of
congress, an officer or emPloYee of congress, or an employee of a member of congress in _
connecfiori witTi tliis -federal con racf gr nl, loan,-or coopera~ive agreemeri~~t~e unctersigne~r
shall complete and submit standard form -LLL, "Disclosure Form to Report Lobbying", in
accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in the award
documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under
grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose
accordingly.
This certification is material representation of fact on which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into
this transaction imposed by section 1352, Title 31, U.S. Code. Any person who fails to filethe required
certification shal] be subject to a civil penalty of not less than $10,000 and not more than $100,000 for
each such failure.
CITY OF PARIS, A POLITICAL SU IVI N ' THE STATE OF TEXAS,
By:
K vin Carru
City Manager
Date: Au ust 1, 2008
HOME Contract # 1000930
Page 21 of 21
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
www. tdhca.state. tx. us
Rick Perry BOARD MEMBERS
GOVERNOR C. Kenr Conine, Chair
Gloria Ray, Vice Chair
Les(ie Bingham Escarefio
Mic6ael Gcrber Tomas Cardenas, P.E.
FXFCUTNE DIRECTOR
~~~~m~~~~ Thomas H. Gann
s Juan S. Munoz, Ph.D.
~ e
April 8, 2009 r, r'-):
Mr. Kevin Carruth, City Manager ;--M- MAN~GER,
City Of Paris P*ms T?XAF
PO Box 9037
Paris, TX 75461
RE: HOME Program OCC Application # 2008-0102 and Contract #1001053
Dear Mr. Carruth:
Enclosed is a copy of the fully executed contract and amendment between the Texas Deparrinent of
Housing and Community Affairs (TDHCA) and the City Of Paris for your recent TDHCA HOME
Program award. Your contract number is 1001053. Please note that the contract effective dates are on
page 3 of the amendment.
As a successful HOME applicant, City Of Paris will be responsible for policies, procedures and
regulations detailed in your contract. In an effort to provide immediate technical assistance to you
throughout the contract process, specific HOME Division staff inembers have been assigned to your
contract.
Your assigned Program Specialist is Charlotte Cox, 512.305.8854, charlotte.cox@tdhca.state.tx.us.
Charlotte will be responsible for assisting you with the HOME Contract System access and navigation,
setting up activities, requesting disbursement of funds, and loan documents.
Your Performance Specialist is Sylvia Mendez, 512.4752972, sylvia.mendez@tdhca.state.bc.us. Sylvia
will be responsible for providing technical assistance and oversight to ensure that you are able to meet the
benchmarks required and fulfill your contractual obligations.
The HOME Division staff appreciates your dedication to providing affordable housing in your
community.
Sincerely,
Came n Dorsey
Acting Programs Manager
Enclosures
Contract File #1001053
221 Ensr 11"" • P. O. Box 13941 • AusriN, TFans 78711-3941 •(800) 525-0657 •(512) 475-3800
I Z1 n._ i
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM
HOIVIE CONTRACT # 1001053
WITH
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
CFDA 14.239 HOME 1NVESTMENT PARTNERSHIPS PROGRAM
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M-06-SG-48-0100
Award Year: 2008
HUD Entity Type: State Recipient
This contract and agreement ("Contract") in connection with a HOME Investment Partnerships
Program award is made and entered into by and between the TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas,
hereinafter referred to as "Department," and CITY OF PARIS, A Political Subdivision of the
State of Texas ("Administrator"), herein collectively referred to as "Parties." For and in
consideration of the promises herein made, and the mutual benefits derived and to be derived, the
parties hereto agree and by execution hereof are bound to the mutual obligations and to the
performance and accomplishment of the tasks which are the substance of this contract.
SECTION 1. CONTRACT PERIOD:
This contract shall be effective and commence on the date the Department's Executive Director
executes the contract and shall terminate TWENTY-TWO (22) months from the effective date,
unless otherwise specifically provided herein ("Contract Period").
SECTION 2. ADMINISTRATOR PERFORMANCE:
Administrator agrees to administer an Owner Occupied Housing Assistance Program award in
accordance with the HOME Investment Partnerships Act of 1990, 42 U.S.C. 12721-12839 (the
"Act"); applicable Federal and CPD Notices issued by HUD; implementing regulations, 24.
C.F.R. Part 92; Tex. Gov't Code Ann. Chapter 2306 (Vernon 2003), the HOME Program Rules,
10 TAC §53 et seq. (the "2008 HOME Rules"), adopted December 20, 2007, the HOME
Program Manuals ("HOME Manual") and the Application and Application Submission
Procedures Manual. Administrator agrees to perform all activities in accordance with the terms
of the Performance Statement and Budget attached hereto as Exhibit A; the Applicable Laws and
Regulations attached hereto as Exhibit B; the Certifications attached hereto as Exhibit C; al1 such
Exhibits incorporated herein for all relevant purposes; the assurances, certifications, and all other
statements made by Administrator in its application for the project funded under this contract;
and with all other terms, provisions, and requirements herein set forth.
i ArI - A
statements made by Administrator in its application for the project funded under this contract;
and with all other temis, provisions, and requiremeiits herein set forth.
SECTION 3. DEPARTMENT OBLIGATIONS
A. Department shall be obligated to pay actual and reasonable costs incurred by
Administrator, during the contract period, for perfornlances rendered under this contract
by Administrator, subject to the limitations set forth in this Section 3:
1. It is expressly understood and agreed by the Parties hereto that Department's
obligations under this Section 3 are contingent upon the full and satisfactory
performance by Administrator of the activities herein described and the actual
receipt by Department of adequate federal funds to meet Department's liabilities
under this contract. If adequate funds are not available to make payments under
this contract, Department shall notify Administrator in writing within a reasonable
time after such fact is determined. In that event, this contract shall terminate and
neither Party shall have any further rights or obligations hereunder;
2. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator, which have been paid to Administrator or are subject to
payment to Administrator, or have been reimbursed to Administrator or are
subject to reimbursement to Administrator, by any source other than Department;
3. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator which are not allowable costs, as set forth in 24 C.F.R. Sections
92.205, 92.206, 92.207, 92.602(b)(1)-(3), any future rulings or determinations of
the U.S. Department of Housing and Urban Affairs, and Section 5 of this contract.
Funds provided under this contract may not be used for payment of prohibited
activities and costs as more particularly described in 24 C.F.R. Sections 92214
and 92.602(b)(4) and/or Policies or Rules promulgated by the Department;
4. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator or for any performances rendered by Administrator which are
not strictly in accordance with the terms of this contract, including the terms of
Exhibit A, Exhibit B, and Exhibit C, of this contract; and
5. Department shall not be obligated to pay for costs incurred or performances
rendered by Administrator before the effective date of this contract, unless
otherwise specified, ar after the termination date of this contract and shall fiirther
not be obligated to pay for any costs incurred within the contract period and not
billed to Department within sixty (60) days after the termination date of this
contract.
6. The certification of Contract Completion must be completed and submitted within
sixty (60) days after the contract expiration date.
B. Not withstanding any other provision of this contract to the contrary, the total of all
payments and other obligations incurred by Department under this contract shall not
exceed the sum of THREE HUNDRED EIGHTY-TWO THOUSAND FIVE
HUNDRED AND NO/100 DOLLARS ($382,500.00), of which SEVEN THOUSAND
FIVE HUNDRED AND NO/100 DOLLARS, ($7,500.00) is for Administrative
expenses.
HOME Coiltract # 1001053
Page 2 of 21
\ a.~o-"->
SECTION 4. DISBURSENIENT OF FUNDS
A. Administrator may not request disburseitient of funds for eligible costs incurred under
this contract until the funds are needed for payment of eligible costs in accordance with
the requirements of 24 C.F.R. Part 92. Administrator shall submit to Department at its
offices in Travis County, Texas, a properly completed electronic request for funds and
support documentation as required and as specified by Department. Department shall
determine the reasonableness of each amount requested and shall not make disbursement
of any such payment until Department has reviewed and approved such request.
Administrator agrees to attend Implementation Training prior to the disbursement of any
funds under this contract and prior to the closing of any ]oan.
B. Department reserves the right to recapture funds provided under this contract and the loall
documents in the event Department determines that Administrator wil] be unable to
expend all funds awarded within the contract period and development period as defined
in the loan documents. Administrator acknowledges that in the event Administrator is
unable to perform in accordance with the Performance Statement and Budget (Exhibit A),
interim construction loan documents, Administrator shall terminate this contract and
surrender Administrator's rights to any remaining funds.
C. It is expressly understood and agreed by the Parties hereto that any right or remedy
provided for in this Section 4, or in any other provision of this contract, shall not preelude
the exercise of any other right or remedy under this contract or under any provision of
law. Nor shall any action taken in the exercise of any right or remedy be deemed a
waiver of any other right or remedy. Failure to exercise any right or remedy hereunder
shall not constitute a waiver of the right to exercise that or any other right or remedy at
any time.
D. For Homebuyer Assistance Acquisition Only, no funds may be requested for
disbursement if the commitment for funding is not made 60 days prior to the termination
date in Section 1 of this Contract. For Tenant Based Rental Assistance no funds may be
requested for disbursement if the commitment for funding is not made 180 days prior to
the termination date in Section 1 of this Contract. Due to closing requirements for Owner
Occupied Housing Assistance and Homebuyer Assistance with
rehabilitation/reconstruction/new construction, no fimds may be requested for
disbursement if the commitment for funding is not made 240 days, prior to the
termination date in Section 1 of this Contract or if the loan closing does not occurs 180
days prior thereto.
SECTION 5. UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES AND PROGRAM INCOME
A. If Administrator is a governmental entity, Administrator shall comply with the
requirements of OMB Circular No. A-87; the requirements of 24 C.F.R. Part 85 as
applicable, and the Uniforni Grant Management Standards, Chapter 783 Texas
Government Code, unless otherwise specified in this contract.
HOME Contract # 1001053
Page 3 of 21
~ rl~ to 1 4
B. If Administrator is a non-profit or for-profit organization, Administrator shall comply
with requirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Pai-t 84
unless otherwise specified in this contract.
C. Administrator may not retain program income ar Cominunity Housing Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of progranl income to fund other eligible HOME activities.
Administrator shall comply with the requirements of 24 C.F.R. §92.503 to account for
program income, repayments, and recaptured funds related to activities financed in whole
or in part with funds provided under this contract. Administrator shall provide reports of
program income as requested by Department. Program income derived under this
contract must be submitted to Department within seven (7) business days of receipt. In
any event, program income received from a prior HOME contract must be disbursed
before Administrator requests additional funds from Department and the amount of
requested funds should be reduced by the program income used and noted in the request.
D. If Administrator is not a government entity, Administratar shall maintain director or
officer liability insurance coverage in an amount, not less than $1,000,000 that is
sufficient to protect the uiterests of Department in the event an actionable act or omission
by a director or officer of Administratar damages the Department's interests.
Administrator shall provide Department with certificates of insurance evidencing
Administrator's current and effective insurance coverage. Administrator agrees to notify
the Department inunediately upon receipt of notification of the termination, cancellation,
expiration, or modification of any required insurance coverage or policy endorsements.
Administratar agrees to suspend the performance of all work performed under this
contract until the Administrator satisfies the required coverage requirements, obtains the
required policy endorsements and delivers to Department certificates of insurance
evidencing that such coverage and policy endorsements are current and effective, and
receives notification from Department that the performance of work under this contract
may recommence.
SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Administrator shall establish and maintain sufficient records, as specified by Department
and in accordance with 24 C.F.R. §92.508, including records that demonstrate that each
household assisted with funds provided under this contract is income eligible in
accordance with 24 C.F.R. §921203.
B. Administrator agrees that Department, HUD, the Auditor of the State of Texas, the
United States General Accounting Office, the Comptroller of the United States, or any of
their duly authorized representatives, shall have the right to access and to examine all
books, accounts, records, reports, files, and other papers or property belonging to or in
use by Administrator pertaining to this contract. Administrator agrees to maintain such
records at its regular place of business.
C. All records pertinent to this contract shall be retained by Administrator for a penod of
five (5) years in accordance with 24 C.F.R. §92.508(c), except:
1. If any litigation, claim, negotiation, audit, monitoring, inspection or other action
has started before the expiration of the required record retention period records
HOME Contract # 1001053
Page 4 of 21
~ D
must be retained until completion of the action and resolution of all issues which
anse from it, or until the end of the required period, whichever is later.
2. Records covering displaceinent and acquisitions must be retained for five (5)
years after the date by which all persons displaced from the property and all
persons whose property is acquired for the project have received the final
payment to which they are entitled i1i accordance with 24 C.F.R. Part 92.
3. For rental housing developments, records must be retained for five (5) years after
the project completion date; except that records of individual tenant income
verifications, project rents and project inspections must be retained for the most
recent five (5) year period, until five (5) years after the affordability period
terniinates.
D. Administrator acknowledges that Department is subject to the Texas Public Infonnation
Act and Administratar agrees that funds received from the Department are subject to the
Texas Public Information Act and the exceptions to disclosure as provided under the
Texas Public Information Act.
E. Administrator shall include the substance of this Section 6 in all of its subcontracts.
SECTION 7. REPORTING REQUIREMENTS
A. Administrator shall submit to Department such reports on the operation and performance
of this contract as may be required by Department, including but not limited to the reports
specified in this section. Administrator shall provide Department with all reports
necessary for Department's compliance with 24 C.F.R. Part 92.
B. In addition to the limitations on liability otherwise specified in this contract, it is
expressly understood and agreed by the Parties hereto that if Administrator fails to submit
to Department in a timely and satisfactory manner any report required by this contract or
the HOME Manual, Department may, at its sole option and in its sole discretion,
withhold any or all disbursements otherwise due or requested by Administrator
hereunder. If Department withholds such disbursements, it shall notify Administrator in
writing of its decision, the reasons for this action and the time period in which
Administrator must bring itself into compliance. Disbursements withheld pursuant to this
paragraph may be held by Department until such time as the Administrator is in
compliance with the requirements for which funds are being withheld. If Administrator
fails to perform as required within the stated cure period, Department may terminate this
contract and Administrator hereby agrees and acknowledges that upon termination,
Administrator's rights to any funds shall be terminated.
C. In addition to other reports, the Administrator shall provide reports to Departinent
regarding program activities to evidence progress of performance in accordance with the
requirements of the Act, 10 TAC §53 and contained in the Performance Statement and
Budget (Exhibit A). HOME Contract # 1001053
Page 5 of 21
1 aU "=\~e
SECTION 8. MONITORING
Department reserves the right to carry out tield inspections and desk reviews to ensllre
compliance with the requirements of this contract. After each nlonitoring visit or desk revieW,
Department shall provide Administrator with awritten report of the monitor's findings. If the
monitoring reports note deficiencies in Administrator's perforniance under the tenns of this
contract, the monitoring report shall include requirements for the timely correction of such
deficiencies by Administrator. Failure by Administrator to take the action specified in the
monitoring report may be cause for suspension, terniination or repayment of funds, as provided
in Sections 16, 17, and 18 of this contract. Administrator agrees to attend training, as required by
Department, including Implementation Training, l" Thiirsday Income Eligibility Training and
other HOME Program workshops.
SECTION 9. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the Parties hereto that Department is contracting with
Administrator as an independent contractor, and that Administrator, as such, agrees to hold
Department harmless and to the extent allowed by law indemnify Department from and against
any and all claims, demands, and causes of action of every kind and character which may be
asserted by any third party occurring or in any way incident to, arising out of, or in connection
with the services to be performed by Administrator under this contract.
SECTION 10. SUBCONTRACTS
A. Administrator shall only subcontract for performance of activities described in this
contract after Administrator has obtained the appropriate documentation verifying the
subcontractor's eligibility, as specified by Department, for each such proposed
subcontract. Administrator, in subcontracting for any activities described in this contract,
expressly understands that in entering into such subcontracts, Department is in no way
liable to Administrator's subcontractor(s).
B. In no event shall any provision of this section constitute adoption, ratification, or
acceptance of Administrator's or subcontractor's perfonnance hereunder. Department
maintains the right to insist upon Administrator's fiill compliance with the terms of this
contract, and by the act of approval under this section, Department does not waive any
right of action which may exist or which may subsequently accrue to Department under
this contract.
C. Administrator shall comply with all applicable federal, state, and local laws, regulations,
and ordinances for making procurements under this contract. Administrator shall ensure
compliance with the requirements of 24 C.F.R. §§84.40 - 84.48 (if Administrator is a
nonprofit organization) or 24 C.F.R. S85.36 (if Administrator is a government entity), in
the procurement of property and services.
D. Administrator shall include language in any subcontract that provides the Department and
HUD the authority to directly review, monitor, and/or audit the operational and financial
HOME Contract # 1001453
Page 6 of 21
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perforniance and!or records of work perfornled under this Contract by any ttlird-party,
including subcontractors, contractors and consultant or service provider.
E. Administrator shall include in aily subcontracts that failure to adequately perfornl under
this Contract may result in penalties up to and includinb Debarnient from perfonning
additioilal work for the Department.
SECTION ll.CONFLICT OF INTEREST
A. Administrator shall ensure that no employee, agent, consultant, officer or elected or
appointed official of Adlninistrator, who exercises or has exercised any funetions or
responsibilities with respect to activities assisted with funds provided under this contract
or who is in a position to participate in a decision making process, or gain inside
information with regard to such activities, may obtain a personal or financial interest or
benefit from a HOME assisted activity, or have an interest in any contracC, subcontract, or
agreement (or the proceeds thereo fl with respect to a HOME assisted activity either for
themselves or those with whom they have family or business ties, during their tenure or
for one year thereafter.
B. Administrator shall ensure that no employee, officer, or agent of Administrator shall
participate in the selection, or in the award or administration of a subcontract supported
by funds provided hereunder if a conflict of interest, real or apparent, would be involved.
Such conflict of interest would arise when: 1) the employee, officer, or agent; 2) any
member of his or her immediate family; 3) his or her partner; or 4) any organization
which employs, or is about to employ any of the above, has a financial or other interest in
the firm or person selected to perform the subcontract. Administrator shall comply with
24 CFR §92.356 (exceptions can only be waived by HUD).
C. No owner, developer or sponsor of HOME-assisted housing, including their officers,
employees, agents, consultants or elected or appointed officials may occupy a HOME-
assisted unit in a development (with the exceptions of (1) an individual living in a
HOME-assisted rental housing development where he/she is a project manager or a
maintenance worker in that development and (2) an individual receiving HOME funds to
acquire or rehabilitate his/her principal residence).
D. None of the funds provided under this contract may be paid to an entity or organization
that provides downpayment assistance if the activities of that entity ar organization are
financed in whole or in part, directly or indirectly, by contributions, service fees, or other
payments from the sellers of housing, whether or not made in conjunction with the sale of
specific housing acquired with funds provided under this contract.
E. Administrator shall include the substance of this Section 11 in all of its subcontracts. SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTIVITIES
A. Administrator shall ensure that no person shall, on the grounds of race, colar, religion,
sex, handicap, familial status, or national origin, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under, any program ar activity
fiinded in whole or in part with funds provided under this contract.
HOME Contract # 1001053
Page 7 of 21
l~lD- `~u
B. None of the perfornlances rendered by Administrator under this contract shall involve,
and no portion of the funds received by Administrator under this contract sllall be used in
support of any inherently religious activity, such as worship, religious instniction, or
proselytization. Administrator shall comply with the regulations promulgated by the U.S.
Department of Housing and Urban Development at 24 C.F.R. §92.257.
C. Administrator shall iilclude the substance of this Section 12 in all of its subcontracts.
SECTION 13. LEGAL AUTHORITY
A. Administrator assures and guarantees Department that Administrator possesses the legal
authority to enter into this contract, to receive funds authorized by this contract, and to
perform the services Administrator has obligated itself to perform under this contract.
B. The person(s) signing and executing this contract on behalf of Administrator does hereby
warrant and guarantee that he is duly authorized by Administrator to execute this contract
on behalf of Administrator and to validly and legally bind Administrator to all the terms,
performances, and provisions of this contract.
C. Administrator shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by U. S.
Department of Housing and Urban Development and/or the Department. In addition,
Department shall have the right to suspend or ternlinate this contract if Administrator is
debaned, suspended, proposed for debarment, or is otherwise ineligible from
participating in the HOME Program by HUD or the Department. Administrator
acknowledges and agrees that this section specifically includes, but is not limited to,
consultants hired by Administratar to assist Administrator in any aspect relative to the
activities of this contract.
SECTION 14. LITIGATION AND CLAIMS
A. Administrator shall give Department immediate notice, in writing, of the occurrence of
any of the following events:
l. any action, including any proceeding before an administrative agency, filed
against Administrator in connection with this contract; and
2. any claim against Administrator, the cost and expense of which Administrator
may be entitled to be reimbursed by Department.
B. Except as otherwise directed by Department, Administrator shall furnish immediately to
Department copies of all pertinent papers received by Administrator with respect to such
action or claim.
SECTION 15. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this contract, any changes, additions, or
deletions to the terms of this contract shall be in writing and executed by both parties to
HOME Contract # 1001053
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this contract. An executed facsimile copy will be sufficient to evidence the Parties
agreement to any amendment, revision or change to this contract.
B. It is understood and agreed by the Parties hereto that perfonnance of all activities under
this contract must be rendered in accordance with the Act, the state and federal
regulations promulgated under the Act, the assurances and certifications made to
Department by Administrator, and t}ie assurances and certifications made to the United
States Department of Housing and Urban Developnlent by the State of Texas with regard
to the operation of the HOME Program. Further, the Department may issue guidance
which serves to interpret or clarify the perfonnance requirements under this contract.
C. Any changes, additions, or deletions to the ternls of this contract which are required by
changes in federal or state law, or regulations, are automatically incorporated into this
contract without the requirement of a written amendment hereto, and shall become
effective on the date designated by such law or regulation.
D. Amendment requests must be submitted in writing by Administratar ninety (90) days
priar to this contract's termination date, as specified in Section 1.
SECTION 16. SUSPENSION
In the event Administrator fails to comply with any term of this contract, Department may, upon
written notification to Administrator, suspend this contract in whole or in part, withhold further
disbursements to Administrator, and prohibit Administrator from incurring additional obligations
for funds under this contract. Administrator acknowledges that it does not have a right to
suspension as a pre-requisite to termination.
SECTION 17. TERMINATION
A. Department may terminate this contract in whole or in part, in accordance with this
section. In the event Administrator fails to comply, in Department's sole discretion and
judgment, with any term of this contract, ar any term stated in a federal statute or
regulation, or with any assurance given to Department by Administrator, or with any term
in a state plan, or with Administrator's application, the notice of award, or elsewhere
Department may take any of the following actions:
1. Temporarily withhold disbursements pending correction of the deficiency by
Administrator;
2. disallow all or part of the cost of the activity or action not in compliance;
3. suspend this contract upon wntten notification to Administrator of the deficiency
and the penod within which Administrator must comply;
4. accept Administrator's failure to comply or correct any deficiency within the time
period set forth in any wntten notice of suspension as evidence of Administrator's
inability to perforni under the terms of this contract, Administrator's intent to
terminate this contract and Administrator's agreement to surrender all rights to
remaining fiinds;
5. withhold further HOME awards from Administrator, and/or affiliated Parties;
HOME Contract # 1001053
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6. tal:e more severe enforcement action against Administrator by taking any other
remedies that inay be legally available to Department, as deternlined by
Department, to ensure compliance with tlle terms of this contract.
B. At the sole discretion of Department, if Adnlinistrator has not achieved stibstantial
progress within six (6) months of the effective date of this Contract ar has failed to meet
any perfornlance benchmark, this Contract may be ternlinated. Administrator may appeal
to have the Contract reinstated in accordance xvith 10 TAC § 1.7.
SECTION 18. AUDIT
A. In addition to the requirements of Section 6(B) of this contract, Administrator shall
submit to Department, within sixty (60) days after the end of each fiscal year, an Audit
Certification Form as specified by Department for each fiscal year in which any inonths
of the Administrator's fiscal year overlaps a month of the contract period. Unless
otherwise directed by Department, Adrninistrator shall arrange for the performance of an
annual financial and compliance audit of funds received and performances rendered
under this contract, subject to the following conditions and limitations:
1. Administrator shall have an audit conducted in accordance with 24 C.F.R. §84.26
or §85.26, as applicable; OMB Circular A-133; and 31 U.S.C. 7501 for any of its
fiscal years included within the contract period specified in Section 1 of this
contract in which Administrator has expenses of more than $500,000 in federal
financial assistance provided by a federal agency in the form of grants, contracts,
loans, loan guarantees, property, cooperative agreements, interest subsidies,
insurance or direct appropriations, but does not include direct federal cash
assistance to individuals. The term federal financial assistance includes awards of
financial assistance received directly from federal agencies, or indirectly through
other units of State and local government.
2. At the option of Administrator, each audit required by this section may cover
Administrator's entire operations or each department, agency, or establishment of
Administrator which received, expended, or otherwise administered federal funds.
3. Notwithstanding anything to the contrary in Section 3, Administrator may utilize
funds budgeted under this contract to pay for that portion of the cost of such audit
services properly allocable to the activities funded by Department under this
contract. Provided, however, Department shall not make payment for the cost of
such audit services until Department has received the audit report from
Administrator.
4. Unless otherwise specifically authorized by Departnient in writing, Administrator
shall submit two (2) copies of the report of such audit to Department within thirty
(30) days after completion of the audit, but no later than nine (9) months after the
end of each fiscal period included within the period of this contract. Audits
performed under this section are subject to review and to direction on resolution
of findings by Department or its authorized representative.
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B. Notxvithstanding anything in Section 18(A) to the contrary, Departrnent reserves the nght
to conduct an annual financial and compliance audit of funds received and performances
rendered under this contract. Administrator agrees to permit Department, or its
authorized representative, to audit Administrator's records and to obtain any documents,
materials, or information necessary to facilitate such audit.
C. Administrator understands and agrees that it shall be liable to Department for any costs
disallowed pursuant to financial and complialice audit(s) of funds received under this
contract. Administrator further understands and agrees that reimbursement to
Department of such disallowed costs shall be paid by Administrator from funds which
were not provided or otherwise made available to Administrator under this contract.
D. Administrator shall take all neeessary actions to facilitate the perfornlance of such audit
or audits conducted pursuant to this section as Depai-tment may require of Administrator.
E. All approved HOME audit reports shall be made available for public inspection within
thirty (30) days after completion of the audit.
SECTION 19. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The environmental effects of each activity camed out with funds provided under this
contract must be assessed in accordance with the provisions of the HOME Manual,
National Environmental Policy Act of 1969 (NEPA) and the related activities listed in
HUD's implementing regulations at 24 C.F.R. Parts 50, 51, 55 and 58. Each such
activity must have an environmental review completed and support documentation
prepared complying with the National Environmental Policy Act of 1969 and regulations
at 24 C.F.R. Parts 50, 51, 55 and Part 58. No funds may be requested or committed to
an activity before the completion of the environmental review process, including the
requirements of 24 C.F.R. §58.6, and the Department has provided written
clearance.
B. If funds are provided under this contract to a"state recipient," the recipient is delegated
authority as the Responsible Entity (RE) and makes all environrriental clearance
determinations. The Department assumes the role of HUD pursuant to 24 CFR Part 58,
"Subpart H- Release of Funds for Particular Projects" and is responsible for reviewing
and approving the Request for Release oC Funds and granting the recipient the Authority
to Use Grant Funds.
C. A non-governmental entity is not delegated authonty to became an RE and make
environmental determinations and therefore, shall assist Department in completing the
environmental review by providing all relevant documentation needed to perform an
environmental review, or carry out mitigating measures required, or selecting an alternate
property for assistance.
D. Both state recipients and subrecipients or CHDOs must attend HOME training for
environmental assessment. The assessments must be satisfactory to Department. This
contract is conditional in nature and does not grant Administrator legal claim to any
HOME funds for a specific project ar site until the environmental review process is
approved by Department. The agreement to provide funds to the project is conditional on
Department's or Administrator's deterrnination to proceed with, modify or cancel the
project based on the results of a subsequent environmental review.
HOME Contract # 1001053
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E. Funds provided tinder this contract may not be used in connection with acquisition or
rellabilitation or new construction of housing located in an area identified by the Federal
Emergency Management Agency (FEMA) as having special flood hazards, tmless the
locality in which the site is located is participating in the National Flood Insurance
Pro-ram (NFIP) or less than a year 11as passed since FEMA notification regarding such
hazards and flood insurance is obtained as a condition of approval of the commitment.
Administrator must detennine if the locality participates in the NFIP during the
preliminary stages of the environmental clearance process.
SECTION 20. AFFIRMATIVE MARKETING
Administrator shall adopt affirmative marketing procedures and requirements. The affirmative
marketing procedures and requireinents shall include, but not be limited to those specified in 24
C.F.R. §92.351. The procedures and requirements shall be prepared in accordance with the
HOME Manual.
SECTION 21. LABOR STANDARDS
A. Every contract for the construction (rehabilitation or new eonstruction) of housing that
includes 12 or more units assisted with HOME funds must contain a provision in
accordance with 24 C.F.R. §92.354. Contracts involding their employment shall be
subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards
Act, 40 U.S.C. Sec. 328 to 334. Construction contractors and subcontractors must
comply with regulations issued under these Acts and with other federal laws, and
regulations pertaining to labor standards and HUD Handbook Federal Loan Standards
Compliance in Housing and Community Development Programs, as applicable.
B. Administrator, by execution of this Contract, hereby certifies that Administrator, or a
branch, division, or department of Administrator does not and will not knowingly employ
an undocumented worker, where "undocumented worker" means an individual who, at
the time of employment, is not lawfully admitted for permanent residence to the United
States or authorized under law to be employed in that manner in the United States. If,
after receiving a public subsidy, Administrator, or a branch, division, or department of
Administrator is convicted of a violation under 8 U.S.C. §1324(a)(0, Administrator shall
repay the amount of the public subsidy as stated under Section 3.13. of this Contract with
interest, at the rate of 5% per annum, not later than the 120`h day after the date the
Department notifies Administrator of the violation.
SECTION 22. SPECIAL CONDITIONS
A. Department shall not release any disbursements for any costs incurred by Administrator
under this contract until Department has received certification from Administrator that its
fiscal control and fund accounting pr-ocedures are adequate to assure the proper disbursal
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of, and accountin- far, funds provided iinder this contract. Department shall specify the
content and folm of such certification.
B. A housing unit assisted with funds provided under this contract must ineet the
affordabiliv~requiremeilts of 24 C.F.R. j92.254(a) and (c) and 92.612(c). Administrator
is liable and agrees to repay an amount specified by Department for each housing unit
assisted with funds provided under this contract that fails to comply, or ceases to comply,
with the affordability requirements of this contract. If Administrator lends funds
provided under this contract to anyone, the resulting loan agreement, note, and mortgage
must provide that the affordability requirements must continue to be met throughout the
term of the loan and that the affordability requirements shall be binding upon the heirs,
successors, assignees, and transferees of Administrator. Department shall not release any
funds for any costs incurred by Administrator under this contract until Department has
received from Administrator an executed, legally enforceable agreement from each
homeowner containing remedies adequate to enforce the affordability requirements of 24
C.F.R. §92.254, as applicable, with Administrator. Administrator shall record such
agreements in the real property records of the county in which the housing unit is located
and return the original documents, duly certified as to recardation by the appropriate
county ofFcial, to Department. Receipt of such certified recorded original agreements by
Department is required prior to disbursement of any funds under this contract.
C. Upon termination of this contract, all funds remaining on hand on the date of termination,
and all accounts receivable attributable to the use of funds received under this contract
shall revert to Department. Administrator shall return these assets to Department within
seven (7) business days after the date of termination.
D. Any home demolished that cannot be completed within the contract period becomes the
responsibility of the Administrator for completion.
E. The Administrator shall include language in any subcontract that provides the department
the ability to directly review, monitor, and/or audit the operational and financial
performance and/or records of work performed under this Contract.
F. Administrator shall include language in any subcontract that failure of
subcontractor/consultant to adequately perform under the contract may result in penalties
up to and including debarment from performing additional work for the Department.
SECTION 23. ORAL AND WRITTEN AGREEMENTS
A. All oral and written agreements between the Parties to this contract relating to the subject
matter of this contract that were made prior to the execution of this contract have been
reduced to writing and are contained in this contract.
B. The attachments enumerated and denominated below are a part of this contract and
constitute proinised performances under this contract: 1. Exhibit A, Performance Statement and Budget
2. Exhibit B, Applicable Laws and Regulations
3. Exhibit C, Certification Regarding Lobbying
HOME Contract # 1001053
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SECTION 24. VENUE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
SECTION 25. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAW
Adnlinistrator shall coinply with all federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to the
activities aild performances of Administrator under this contract. Upon request by Department,
Administrator shall furnish satisfactory proof of its compliance therewith.
SECTION 26. CERTIFICATION REGARDING CERTAIN DISASTER RELIEF
CONTRACTS
The Department may not award a contract that includes proposed financial participation by a
person who, during the five-year period preceding the date of this Contract, has been convicted
of violating a federal law in connection with a contract awarded by the federal government for
relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by Section
39.459, Utilities Code, Hurricane Katrina, or any other disaster occumng after September 24,
2005; or assessed a penalty in a federal civil or administrative enforcement action in conneetion
with a contract awarded by the federal government for relief, recovery, or reconstruction efforts
as a result of Hurricane Rita, as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
any other disaster occurring after September 24, 2005. By executing this Contract, the
Administrator hereby certifies that:
"Under Section 2261.053, Government Code, Administratar certifies that the individual or
business entity named in this Contract is not ineligible to receive the specified contract and
acknowledges that this contract may be terminated and payment withheld if this certification is
inaccurate."
WITNESS OUR HAND EFFECTIVE:
CITY OF PARIS,
A POLITICAL SUBDIVISION ()f' THE STATE OF TEXAS
By. -
Name: Kevin Carr h
Title: City Manager
Date: z4f
HOME Contract # 1001053
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THIS CONTRACT WAS APPROVED BY THE BOARD OF DIRECTORS ON
FEBRUARY 5, 2009, AND IS NOT EFFECTIVE UNLESS SIGNED BY THE
EXECUTIVE DIRECTOR OF THE TEYAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS, OR HIS/HER AUTHORIZED DESIGNEE.
THIS CONTRACT IS APPROVED, ACCEPTED AND MADE EFFECTIVE ON
I
Q4g~,jk 200q AND WILL TERMINATE ON
o,,y 201 ~ ON BEHALF OF:
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
By:
chael Gerber, Executive Director
HOME Contract # 1001053
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME CONTRACT # 1001053
EXHIBIT A
PERFORMANCE STATEMENT AND BUDGFT
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall carry out the followin~ activities identified by this Exhibit A and in its
HOME Program Application Number 2008-0102.
OWNER OCCUPIED HOUSING ASSISTANCE PROGRAM
Administrator shall implement an Owner Occupied Housing Assistance Program in accordance
with 24 C.F.R. Part 92 and the applicable Texas statutes and the State HOME Program Rules at
10 TAC Chapter 53 (the "2008 HOME Rules") adopted December 20, 2007, utilizing THREE
HUNDRED SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($375,000.00), in
project funds and SEVEN THOUSAND FIVE HUNDRED AND NO/100 DOLLARS
($7,500.00), in administrative funds.
Administrator shall use the funds provided under this contract to provide assistance to
reconstruct or rehabilitate a minimum of FNE (5) houses each of which must be the principal
residence of the homeowner assisted. Performance under the Contract term will be based on the
following benchmarks from the Contract begin date:
1. 6 months, exempt administrative and broad review environmental clearance must be
complete, and if not tiering, the first Household to be assisted must be environmentally
cleared;
2. 8 months, Authority to Use Grant Funds must be fully executed and all Households to be
assisted must be environmentally cleared;
3. 12 months, 100% of funds must be committed to Households to be assisted;
4. 15 months, 100% of Household's Loans must be closed, if applicable;
5. 20 months, 100% of construction must be complete for all Households to be assisted; and
6. 22 months, 100% funds drawn and 100% of match requirement supplied.
Administratar shall provide HOME Owner Occupied Housing Assistance in the form of a lst,
2nd or 3rd lien loan. The total amount of assistance (including soft costs) shall not exceed:
HOME Contract # 1001053
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1. Sixry Thousand aiid no/100 Dollars ($60,000.00) for a one to four (1-4) person
household.
2. Sixtv Seven Thousand Five Hundred and no/100 Dollars ($67,500.00) for a five to six (5-
6) person household.
3. Seventy Five Thousand azld no/100 Dollars (S75,000.00) for a seven (7) or more person
household.
Each loan will be in the form of a zero percent (0%) interest loan for total amount of assistance
provided with a term based on the income level of the household and in accordance with 10 TAC
§53.31 as follows:
l. Five-year deferred, forgivable loan for households whose income is less than or equal to
tliirty percent (30%) of the AMFI, as defined by HUD.
2. Fifteen-year deferred, forgivable loan for households whose income is greater than thirty
percent (30%) and ]ess than ar equal to fifty percent (50%) of the AMFI, as defined by
HUD.
3. Twenty-year deferred, forgivable loan for households whose income is greater than fifty
percent (50%) and less than ar equal to sixty percent (60%) of the AMFI, as defined by
HUD.
4. Twenty-year term repayable loan for households whose income is greater than sixty
percent (60%) and less than or equal to eighty percent (80%) of the AMFI, as defined by
HUD.
Iii instances where a manufactured housing unit will be replaced with newly constructed housing
(site-built) or the homeowner will relocate to an alternate housing site, HOME assistance shall be
in the form of a zero percent (0%) interest, deferred forgivable loan with a term based on the
federal affordability requirements as defined in 24 CFR §92.254.
All loans to assisted homeowners must be evidenced by loan documents provided by
Department. Each loan to an assisted homeowner must be payable to Department. Each loan
shall be evidenced by a construction loan agreement, note, deed of trust, mechanic's lien note,
and mechanic's lien contract secured by the property and must be fully executed befare any
construction activities commence.
Forgiveness of the loan balance is calculated based on a pro-rata annual share of the loan term.
The anniversary date of the loan sha11 constitute coinpletion of the year. Any partial year shall
not be waived. The amount due will be based on the pro-rata share number of years of the
remaining loan term.
If at any time prior to the full loan penod there occurs a sale of the property, the unit ceases to be
the assisted homeowner's principal residence or default occurs, the loan shall become due and
payable.
In the event of refnance of any superior lien, at Department's discretion one of the following
options will apply:
HOME Contract # 1001053
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1. re-subordination of the Note if the assisted hoineoNvner can provide documentation,
acceptable to the Departmeilt, showinv that no funds are due the assisted homeowner as a
result of the refinance; or
2. the assisted homeowner will pa}- off the Department's subordinate loan from loan proceeds
of the refinanced superior lien.
In the event of payoff of any superior lien, the assisted honleowner will have the option of:
1. repaying the balance of the Department's subordinate loan in full, or
2. repaying the balance of the Departlnent"s loan in equal monthly installments over a five (5)
year period.
For Owner-Occupied Housing Assistance, all project set-ups and support documentation for
commitment of funds must be submitted to and approved by the Department no later than 240
days and the loan must close 180 days prior to the Contract termination date.
ZERO (0) of the FIVE (5) assisted homeowners shall have incomes that are less than or equal to
thirty percent (30%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equal to 30% of
the AMFI as required above, THREE (3) of the FIVE (5) assisted homeowners shall have
incomes that are less than or equal to fifty percent (50%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equal to 30%
and 50% of the AMFI as required above, ZERO (0) of the FIVE (5) assisted homeowners shall
have incomes that are ]ess than ar equal to sixty percent (60%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equal to 30%,
50% and 60% of the AMFI as required above, TWO (2) of the FIVE (5) assisted homeowners
shall have incomes that are less than or equal to eighty percent (80%) of the AMFI, as defined by
HUD.
Administrator may use the funds provided under this contract to provide assistance to reconstruct
or rehabilitate additional houses once the minitnum of FIVE (5) homeowners have been assisted
provided that the additional homeowners' incomes are less than or equal to eighty percent (80%)
of the AMFI, as defined by HUD, and all other requirements are met.
Each unit must, at a minimum, meet or exceed the Texas Minitnum Construction Standards
(TMCS) or Colonia Housing Standards, if located in a Colonia, as well as local building codes
and zoning ordinances. lf a home is reconstructed, Administrator must also ensure compliance
with the universal design features for construction of single family affordable housing,
established by §2306.514 of the Texas Government Code, the energy efficiency standards
established by §2306.187 of the Texas Government Code, energy standards as verified by a
HOME Contract # 1001053
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RESCHECK certification, and tlle International Residential Codes, as required by Subchapter G,
Chapter 214, Local Government Code.
Administrator is limited to serving homeowners who certify the assisted unit will be their
pnmary residence and is located in the Rural area of THE City of PARIS, located in LAMAR
Countv, Texas, in U17ifoim State Service Region Number FOUR (4), and in a jurisdiction that is
not a participating jurisdiction, as defined in 24 C.F.R. 592.105, tmless otherwise approved by
Department.
MATCH
Administrator will provide match funds in the amount of FORTY-SIX THOUSAND EIGHT
HUNDRED SEVENTY-FIVE AND NO/100 DOLLARS ($46,875.00), as specified in its
HOME Application, or other eligible match as approved by Department.
Match funds must be reported on a pro-rata basis based on disbursements. Support
documentation evidencing the match contribution must be submitted by Administrator upon
request for disbursement of funds for each project assisted, in accordance with 24 C.F.R. Part 92,
the Department's HOME Rule, HOME Program Match Guide, CPD Notice 97-03 HOME Match
Guidance and HOME Program Manual.
ADMINISTRATION
Administrator may expend funds provided under this contract for reasonable administrative and
planning costs directly related to this contract in accordance with Sections 3, 4, and 5 of this
contract and 24 C.F.R §92.207 in an amount that is not more than two percent (2%) or SEVEN
THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($7,500.00), of the total amount of
project funds received under this contract.
Administrator shall be allowed to draw up to ten percent (10%) of the actual allowable
administrative costs incurred at the initial stage of the Contract, with the remaining ninety
percent (90%) funded on a pro-rata basis, based on project fund disbursements.
HOME Contract # 1001053
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM
HOME CONTRACT # 1001053
EXHIBIT B
THE APPLICABLE LAWS AND REGULATIONS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall comply with all federal, state, and local laws and regulations applicable to
the activities and performances rendered by Administrator under this contract, including but not
limited to the laws and the regulations specified in Sections I through IV of this Exhibit B.
L CIVIL RIGHTS
In addition to The Fair Housing Act (42 U.S.C. §3601 et seq. and implementing regulations
at 24 C.F.R. Part 100), specific federal requirements are set forth in 24 C.F.R. Part 5
II. LEAD-BASED PAINT
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. §4821 et seq. and 24 C.F.R. Part 35
III. ENVIRONMENTAL STANDARDS
The environmental effects of each activity carried out with HOME funds must be assessed
in accordance with the provisions of the National Environmental Policy Act of 1969 (42
U.S.C. §4321 et. seq.) and the related authorities listed in HUD's implementing regulations
at 24 C.F.R. parts 50 and 58.
IV. ACQUISITION/RELOCATION
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42
U.S.C. §4201 - 4655 and 49 C.F.R. Part 24.
HOME Contract # 1001053
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME CONTRACT # 1001053
EXHIBIT C
CERTIFICATION REGARDING LOBBYING FOR
CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
The undersigned certifies, to the best of its l:nowledge aild belief, that:
No federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any pe1-son for influencing or attempting to influence an officer or
employee of an agency, a member of congress, an officer or employee of congress, or an
employee of a member of congress in connection with the awarding of any federal
contract, the making of any federal grant, the making of any federal loan, the entering
into of any cooperative agreement, or modification of any federal contract, grant, loan,
or cooperative agreement.
2. If any funds other than federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
member of congress, an officer or employee of congress, or an employee of a melnber of
congress in connection with this federal contract, grant, loan, or cooperative agreement,
the undersigned shall complete and submit standard form -LLL, "Disclosure Form to
Report Lobbying", in accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in the
award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and
contracts under grants, loans, and cooperative agreements) and that all sub-recipients
shall certify and disclose accordingly.
This certification is matenal representation of fact on which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352, Title 31, U.S. Code. Any
person who fails to file the required certification shall be subject to a civil penalty of not less
than $10,000 and not more than $100,000 for each such failure.
CITY OF PARIS,
A POLITICAL S DIV O OF THE STATE OF TEXAS
~
By:
Kevin Ca th
City Manager
HOME Contract # 1001053
Page 21 of 21
l10
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM CONTRACT 41001053
OWNER OCCLIPIED HOUSING ASSISTANCE
FIRST AMENDMENT
CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM
Awarding Federat Agency: U.S. Department of Housing and Urban Development
Award Number: M 06 SG 48-0100
Award Year: 2008
HUD Entity Type: State Recipient
The TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and
official agency of the State of Texas (Department) and the CITY OF PARIS (Administrator), A
Political Subdivision of the State of Texas (together, "Parties"), do hereby contract and agree
to amend the original contract by and between the parties, effective 1y,_ Zod, and identified
on Department's records as HOME Contract #1001053 (Contract).
Recitals
WHEREAS Administrator wishes to subject the Contract to all of the provisions of the 2009
HOME Program Rule, 10 TAC § 5 3 et seq. ("2009 HOME Rules"); and
WHEREAS Pursuant to authority granted in 10 TAC §53.30, Department approves
Administrator's request to subject the Contract to all of the provisions of the 2009 HOME Rules;
and
WHEREAS Parties recognize that sections of the Contract do not conform to the requirements
of the 2009 HOME Rules including, but not limited to, Section 1, Contract Period, Section 2,
Administrator Performance, Section 3A, Department Obli a~ tions, Section 22, Special
Conditions, and Exhibit A- Performance Statement; and
WHEREAS the Parties agree that the most efficient method for adapting the Contract to theprovisions of the 2009 HOME Rules is to replace all of the terms and provisions of the Original
Contract with a new set of terms and conditions that conform to the 2009 HOME RULES;
~~,1, - a3
NOW THEREFORE the Parties agree as follows:
Section 1
The ternis and provisions of the Contract are hereby replaced in their entirety with the tenns and
provisions attached hereto, as Attachinent A, except Eahibit C of the Contract, Certification
Regarding Lobbying, remain in effect for the Contract Period.
By signing this First Amendment the Parties expressly understand and agree that its terms shall
become a part of the Contract as if they were set forth word for word therein. This First
Amendment shall be binding upon the Parties hereto and their respective successors and assigns.
Section 2
In the event of an irreconcilable conflict between the terms of this Contract and the 2009 HOME
Rules, the terms of the 2009 HOME Rules shall control.
AGREED TO AND EXECUTED BY:
TEXAS DE$ARTMENT OF HhOUSING .4IND COMMUNITY AFFAIRS
By:
Nanie
Title:i
Michael Cierber
Executive Director
Date: _3'Z~~2, ~0 ot
CITY OF PARIS,
A POLITICAL SUBDxVISION-10F THE STATE OF TEXAS
By: - 4~~
Narne: Kevin Camzth
Title: City Manager
Date:
ATTACHMENT A
HOMF. Contract #1 OO1053
Page 2 of 21
laU.- a,-\
TEXAS DEPARTMENT OF HOLTSING AND COMMUNITY AFFAIRS
HOME PROGRAM
HOME CONTRACT # 1001053
ATTAC'HMENT A
'I'ERMS AND CONDITIONS
CITY OF PARIS,
A POLITICAL SLIBDIVISION OF THE STATE OF TEXAS
CFDA 14.239 HOME 1NVESTMENT PARTNERSHIPS PROGRAM
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M-06 SG-48-0100
Award Year: 2008
HUD Entity Type: State Recipient
This contract and agreement ("Contract'") in connection with a HOME Investment Partnerships
Program award is made and entered into by and between the TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas,
hereinafter referred to as "Department," and CITY OF PARIS, A Political Subdivision of the
State of Texas ("Administrator"), herein collectively referred to as "Parties." For and in
consideration of the promises herein made, and the mutual benefits derived and to be derived, the
parties hereto agree and by execution hereof are bound to the mutual obligations and to the
performance and accomplishment of the tasks which are the substance of this contract.
SECTION 1. CONTRACT PERIOD:
This contract shall be effective and commence on `,V~, pp IF and shall terminate on
ZZ, Zo!/ unless otherwise specifically prov dei herein ("Contract Period").
SECTION 2. ADMINISTRATOR PERFORMANCE:
Administrator agrees to administer an Owner Occupied Housing Assistance award in
accordance with the HOME Investment Partnerships Act of 1990, 42 U.S.C. 12721-12839 (the
"Act"); applicable Federal and CPD Notices issued by HUD; implementing regulations, 24.
C.F.R. Part 92; Tex. Gov't Code Ann. Chapter 2306 (Vernon 2003), the HOME Program Rule,
10 TAC §53 et seq. (the "2009 HOME Rules") adopted November 13, 2008, the HOME
Program Manuals ("HOME Manual'') and the Application and Application Submission
Procedures Manual. Administrator agrees to perform all activities in accordance with the terms
of the Performance Statement and Budget attached hereto as Exhibit A; the Applicable Laws and
Regulations attached hereto as Exhibit B; the Certifications attached hereto as Exhibit C; all such
ATTACHMENT A
HOME Contract # 1001053
Page 3 of 21
13~~ - (~s
Exhibits incorporated herein for all relevant purposes; the assurances, certifications, and all otller
statements Tnade by Administrator in its application for the project funded under this contract;
and with all other tenns, provisions, and requirements herein set forth.
SECTION 3. DEPARTMENT OBLIGATIONS
A. Department shall be obligated to pay actual and reasonable costs incurred by
Administrator, during the contract period, for perforniances rendered under this contract
by Administrator, subject to the limitations set forth in this Section 3:
1. It is expressly understood and agreed by the Parties hereto that Department's
obligations under this Section 3 are contingent upon the full and satisfactory
perforniance by Administrator of the activities herein described and the actual
receipt by Department of adequate federal funds to meet Department's liabilities
under this contract. If adequate funds are not available to make payments under
this contract, Department shall notify Administrator in writing within a reasonable
time after such fact is deternlined. In that event, this contract shall terminate and
neither Party shall have any further rights or obligations hereunder;
2. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator, which have been paid to Administrator or are subject to
payment to Administrator, or have been reimbursed to Administrator or are
subject to reimbursement to Administrator, by any source other than Department;
3. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator which are not allowable costs, as set forth in 24 C.F.R. Sections
92.205, 92.206, 92.207, 92.602(b)(1)-(3), any future rulings or determinations of
the U.S. Department of Housing and Urban Affairs, and Section 5 of this contract.
Funds provided under this contract may not be used for payment of prohibited
activities and costs as more particularly described in 24 C.F.R. Sections 92.214
and 92.602(b)(4) and/or Policies or Rules promulgated by the Department;
4. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator or for any performances rendered by Administrator which are
not strictly in accordance with the terms of this contract, including the terms of
Exhibit A, Exhibit B, and Exhibit C, of this contract; and
5. Department shall not be obligated to pay for costs incurred or perfornlances
rendered by Administrator before the effective date of this contract, unless
otherwise specified, or after the termination date of this contract and shall further
not be obligated to pay for any costs incurred within the contract period and not
billed to Department within sixty (60) days after the termination date of this
contract.
6. The certification of Contract Completion must be completed and submitted within
sixty (60) days after the contract expiration date.
B. Not withstanding any other provision of this contract to the contrary, the total of all
payments and other obligations incurred by Department under this contract shall not
exceed the sum of THREE HUNDRED NINETY THOUSAND AND NO/100
DOLLARS ($390,000.00), of which FIFTEEN THOUSAND AND NO/100
DOLLARS, ($15,000.00) is for Administrative expenses.
ATTACHMENT A
HOME Contract #1001053
Page 4 of 2]
12,u - aco
SECTION 4. DISBURSENIENT OF FUNDS
A. Before the effective date of the HOME Contract, the Contract Administrator may incur
and be reimbursed for travel costs, as provided for «-ith Administrative funds, related to
inandatory implementation training required by the Department as a condition of
receiving a HOME award and Contract.
B. Administrator may not request disbursement of funds for eligible costs incurred under
this contract until the funds are needed for payment of eligible costs in accordance with
the requirements of 24 C.F.R. Part 92. Administrator shall submit to Department at its
offices in Travis County, Texas, a properly completed electronic request for funds and
support documentation as required and as specified by Department. Departrnent shall
determine the reasonableness of each amount requested and shall not make disbursement
of any such payment until Department has reviewed and approved such request.
Administrator agrees to attend Implementation Training prior to the disbursement of any
funds under this contract and prior to the closing of any loan.
C. Department reserves the nght to recapture funds provided under this contract and the loan
documents in the event Department determines that Administrator will be unable to
expend all funds awarded within the contract period and development period as defined
in the loan documents. Administrator acknowledges that in the event Administrator is
unable to perform in accordanee with the Performance Statement and Budget (Exhibit A),
interim constructioil loan documents, Administrator shall ternlinate this contract and
surrender Administrator's rights to any remaining funds.
D. It is expressly understood and agreed by the Parties hereto that any right or remedy
provided for in this Section 4, ar in any other provision of this contract, shall not preclude
the exercise of any other right or remedy under this contract or under any provision of
law. Nor shall any action taken in the exercise of any right or remedy be deemed a
waiver of any other right or remedy. Failure to exercise any right or remedy hereunder
shall not constitute a waiver of the right to exercise that or any other right or remedy at
any time.
E. For Homebuyer Assistance Acquisition Only, no funds may be requested for
disbursement if the commitment for funding is not made 60 days prior to the termination
date in Section 1 of this Contract. For Tenant Based Rental Assistance no funds may be
requested for disbursement if the commitment for funding is not made 180 days prior to
the termination date in Section 1 of this Contract. Due to loan closing requirements for
Owner-Occupied Housing Assistance and Homebuyer Assistance with
Rehabilitation/reconstruction/new construction, no funds may be requested for
disbursement if the commitment for funding is not made 240 days prior to the termination
date in Section 1 of this Contract or if the loan closing does not occur 180 days prior
thereto.
SECTION 5. UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES AND PROGRAM INCOME
A. If Administrator is a governmental entity, Administrator shall comply with the
requirements of OMB Circular No. A-87; the requirements of 24 C.F.R. Part 85 as
ATTACHMENT A
HOME ContracC #1001053
Page 5 of 21
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applicable, and the Uiiiform Gralit Management Standards, Chapter 7S3 Texas
Government Gode, unless othenvise speci fied in this contract.
B. If Administrator is a non-profit or for-profit organization, Administrator shall colnply
with requirements of OMB Ci1-cular No. A-12? and the requirertients of 24 C.F.R. Pari 84
unless otherwise specified in this contract.
C. Administrator may not retain program income or Community Housing Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of program income to fund other eligible HOME activities.
Administrator shall comply with the requirenients of 24 C.F.R. §92.503 to account for
program income, repayTnents, and recaptured funds related to activities financed in whole
or in part with funds provided under this contract. Adminiszrator shall provide reports of
program income as requested by Department. Program income derived under this
contract must be submitted to Department within seven (7) business days of receipt. In
any event, program income received from a prior HOME contract must be disbursed
before Administrator requests additional funds from Department and the amount of
requested funds should be reduced by the program income used and noted in the request.
D. If Administrator is not a government entity, Administratar shall maintain director or
officer liability insurance coverage in an amount, not less than $1,000,000. that is
sufficient to protect the interests of Department in the event an actionable act or omission
by a director or officer of Administrator damages the Department's interests.
Administrator sha11 provide Department with certificates of insurance evidencing
Administrator's current and effective insurance coverage. Administrator agrees to notify
the Department immediately upon reeeipt of notification of the ternlination, cancellation,
expiration, or modification of any required insurance coverage or policy endorsements.
Administratar agrees to suspend the performance of all work performed under this
contract until the Administrator satisfies the required coverage requirements, obtains the
required policy endorsements and delivers to Department certificates of insurance
evidencing that such coverage and policy endorsements are current and effective, and
receives notification from Department that the performance of work under this contract
may recommence.
SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Administrator shall establish and maintain sufficient records, as specified by Department
and in accordance with 24 C.F.R. §92.508, including records that demonstrate that each
household assisted wittl funds provided under this contract is income eligible in
accordance with 24 C.F.R. §92.203.
B. Administrator agrees that Department, HUD, the Auditor of the State of Texas, tlle
United States General Accounting Office, the Comptroller of the United States, or any of
their duly authorized representatives, shall have the right to access and to examine all
books, accounts, records, reports, files, and other papers or property belonging to or in
use by Administrator pertaining to this contract. Administrator agrees to maintain such
records at its regular place of business.
C. All records pertinent to this contract shall be retained by Administrator for a period of
five (5) years in accordance with 24 C.F.R. §92.508(c), except:
ATTACHMENT A
HOMfi Contract # ] OO1053
Page 6 of 21
~ a,l o - Q5~
1. If any litigation, claim, negotiation, audit, Inonitoring, iilspection or other action
has started before the eYpiration of the required record retention period records
Inust be retained until completion of the action and resolution of all issues which
arise from it, or until the end of the requil-ed penod, whichever is later.
2. Records coverin~ displacement and acc~uisitions must be retained for five (5)
years after the date by which all persons displaced from the property and all
persons whose property is acquired for the project have received the final
payment to which they are entitled in accordance with 24 C.F.R. Part 92.
3. For rental housing developments, records must be retained for five (5) years after
the project cornpletion date; except that recards of individual tenant incolne
venfications, project rents and project inspections must be retained for the most
recent five (5) year period, until five (5) years after the affordability period
terminates.
D. Administrator acknowledges that Department is subject to the Texas Public Information
Act and Administrator agrees that funds received from the Department are subject to the
Texas Public Information Act and the exceptions to disclosure as provided under the
Texas Public Information Act.
E. Administrator shall include the substance of this Section 6 in all of its subcontracts.
SECTION 7. REPORTING REQUIREMENTS
A. Administrator shall submit to Department such reports on the operation and performance
of this contract as niay be required by Department, including but not limited to the reports
specified in this section. Administrator shall provide Department with all reports
necessary for Department's compliance with 24 C.F.R. Part 92.
B. In addition to the limitations on liability otherwise specified in this contract, it is
expressly understood and agreed by the Parties hereto that if Administrator fails to submit
to Department in a timely and satisfactory manner any report required by this contract or
the HOME Manual, Department may, at its sole option and in its sole discretion,
withhold any or all disbursements otherwise due or requested by Administrator
hereunder. If Department withholds such disbursements, it shall notify Administrator in
writing of its decision, the reasons for this action and the time period in which
Administratar must bring itself into compliance. Disbursements withheld pursuant to this
paragraph may be held by Department until such time as the Administrator is in
compliance with the requirements for which funds are being withheld. If Administrator
fails to perforni as required within the stated cure period, Department may terminate this
contract and Administrator hereby agrees and acknowledges that upon termination,
Administrator's rights to any funds shall be terminated.
C. In addition to other reports, the Administrator shall provide reports to Department
regarding program activities to evidence progress of performance in accordance with the
requirements of the Act, 10 TAC ti53 and contained in the Perfarmance Statement and
Budget (Exhibit A).
ATTACHMENT A
HOME Contract #1001053
Page 7 of 21
k a(. - 2U
SECTION 8. MONITORING
Departinent reserves the right to carry out field inspections and desk reviews to ensure
compliance with the requirements of this contract. After each monitoring visit or desk review,
Department shall provide Administrator with a written report of the monitor's findincys. If the
monitoring reports note deficiencies in Administrator's performance under the terms of this
contract, the monitoring report shall include requirements for the timely correction of such
deficiencies by Administrator. Failure by Administrator to take the action specified in the
monitonng report may be cause for suspension, telnlination or repayment of funds, as provided
in Sections 16, 17, and 18 of this contract. Administrator agrees to attend training, as required by
Department, including Contract Administration Training, 1 s` Thursday Income Eligibility
Training, and other HOME Program workshops.
SECTION 9. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the Parties hereto that Department is contracting with
Administrator as an independent contractor, and that Administrator, as such, agrees to hold
Department harniless and to the extent allowed by law indemnify Department from and against
any and all claims, demands, and causes of action of every kind and character which may be
asserted by any third party occurring or in any way incident to, arising out of, or in connection
with the services to be performed by Administrator under this contract.
SECTION 10. SUBCONTRACTS
A. Administrator shall only subcontract for performance of activities described in this
contract after Administrator has obtained the appropriate documentation verifying the
subcontractor's eligibility, as specified by Department, for each such proposed
subeontract. Administrator, in subcontracting for any activities described in this contract,
expressly understands that in entering into such subcontracts, Department is in no way
liable to Administrator's subcontractor(s).
B. In no event shall any provision of this section constitute adoption, ratification, or
acceptance of Administrator's or subcontractor's performance hereunder. Department
maintains the nght to insist upon Administrator's full compliance with the terms of this
contract, and by the act of approval under this section, Department does not waive any
nglit of action which may exist or which may subsequently accrue to Department under
this contract.
C. Administrator shall comply with all applicable federal, state, and local laws, regulations,
and ordinanees for making procurements under this contract. Administrator shall ensure
compliance with the requirements of 24 C.F.R. §§84.40 - 84.48 (if Administratar is a
nonprofit organization) or 24 C.F.R. §85.36 (if Administrator is a government entity), in
the procurement of property and services.
D. Administrator shall include language in any subcontract that provides the Department and
HUD the autllority to directly review, monitor, and/or audit the operational and financial
ATTACHMENT A
HOME Contract #]00] 053
Page 8 of 21
iaD -30
perforniance and/or records of work perfornled undcr this Conti-act by any third-party,
including subcontractors, contractors aiid consultailt or service provider.
E. Adniinistrator shall include in any subcontracts that failure to adequately perfonn under
tllis Contract may result in penalties up to and including Debarnient from performing
additional work for the Department.
SECTION 11. CONFLICT OF INTEREST
A. Administrator shall ensure that no employee, agent, consultant, offrcer or elected or
appointed official of Administrator, who exercises or has exercised any functions or
responsibilities with respect to activities assisted with funds provided under this contract
or who is in a position to participate in a decision making process, or gain inside
infonnation with regard to such activities, may obtain a personal or financial interest or
benefit from a HOME assisted activity, or have an interest in any contract, subcontract, or
agreement (or the proceeds thereofl with respect to a HOME assisted activity either for
themselves or those with whom they have family or business ties, during their tenure or
for one year thereafter.
B. Administratar shall ensure that no employee, officer, or agent of Administrator shall
participate in the selection, or in the award or administration of a subcontract supported
by funds provided hereunder if a conflict of interest, real or apparent, would be involved.
Such conflict of interest would arise when: I) the employee, officer, or agent; 2) any
member of his or her immediate family; 3) his or her partner; or 4) any organization
which employs, or is about to employ any of the above, has a financial or other interest in
the firm or person selected to perform the subcontract. Administrator shall comply with
24 CFR §92.356 (exceptions can only be waived by HUD).
C. No owner, developer or sponsor of HOME-assisted housing, including their officers,
employees, agents, consultants or elected or appointed officials may occupy a HOME-
assisted unit in a development (with the exceptions of (1) an individual living in a
HOME-assisted rental housing development where he/she is a project manager or a
maintenance worker in that development and (2) an individual receiving HOME funds to
acquire ar rehabilitate his/her principal residence).
D. None of the funds provided under this contract may be paid to an entity or organization
that provides downpayment assistance if the activities of that entity or organization are
financed in whole ar in part, directly or indirectly, by contributions, service fees, or other
payments from the sellers of housing, whether or not made in conjunction with the sale of
specific housing acquired with funds provided under this contract.
E. Administrator shall include the substance of this Section I 1 in all of its subcontracts.
SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTNITIES
A. Administrator shall ensure that no person shall, on the grounds of race, color, religion,
sex, handicap, familial status, or national origin, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under, any program or activity
funded in whole or in part with funds provided under this contract.
ATTACHMENT A
HOME Contract #1001053
Page 9 of 21
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B. None of the performances rendered by Administrator under this contract shall involve,
and no portion of the fuilds received by Administrator under this contract shall be used in
support of any iilherently religious activity, such as worship, religious instruction, or
proselytization. Admillistrator shall comply with the regulations promulgated by the U.S.
Departrnent of Housing and Urban Development at 24 C.F.R. §92257.
C. Administrator shall include the substance of this Section 12 in all of its subcontracts.
SECTION 13. LEGAL AUTHORITY
A. Administratar assures and-guarantees Department that Administrator possesses the legal
authority to enter into this contract, to receive funds authorized by this contract, and to
perform the services Administrator has obligated itself to perform under this contract.
B. The person(s) signing and executing this contract on behalf of Administrator does hereby
warrant and guarantee that he is duly authorized by Administrator to execute this contract
on behalf of Administrator and to validly and legally bind Administrator to all the terms,
performances, and provisions of this contract.
C. Administrator shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by U. S.
Department of Housing and Urban Development and/or the Department. In addition,
Department shall have the right to suspend or terminate this contract if Administrator is
debarred, suspended, proposed for debarment, or is otherwise ineligible from
participating in the HOME Program by HUD or the Department. Administrator
acknowledges and agrees that this section specifically includes, but is not limited to,
consultants hired by Administratar to assist Administrator in any aspect relative to the
activities of this contract.
SECTION 14. LITIGATION AND CLAIMS
A. Admiiustrator shall give Department immediate notice, in writing, of the occurrence of
any of the following events:
1. any action, including any proceeding before an administrative agency, filed
against Administrator in connection with this contract; and
2. any claim against Administrator, the cost and expense of which Administrator
may be entitled to be reimbursed by Department.
B. Except as otherwise directed by Department, Administrator shall fiirnish immediately to
Department copies of all pertinent papers received by Administrator with respect to such
action or claim.
SECTION 15. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this contract, any changes, additions, or
deletions to the terms of this contract shall be in writing and executed by both parties to
AT'TACHMENT A
HOME Contract #1001053Page 10 of 21
I a(fl-3V-1
this contract. An executed facsimile copy will be sufficient to evidence the Parties
agreement to any ainendTZient, revision or change to this contract.
B. It is understood and agreed by the Parties hereto that perforniance of all activities under
this contract must be rendered in accordance with the Act, the state and federal
regulations promulgated under the Act, the assurances and certifications made to
Department by Administrator, and the assurances and certifications made to the United
States Department of Housing and Urban Development by the State of Texas with regard
to the operation of the HOME Program. Further, the Department may issue guidance
which serves to interpret or clarify the perforn7ance requirements under this contract.
C. Any changes, additions, or deletions to the terms of this contract which are required by
changes in federal or state law, ar regulations, are automatically incorporated into this
contract without the requirement of a written amendment hereto, and shall become
effective on the date designated by such law or regulation.
D. Amendment requests must be submitted in writing by Administrator ninety (90) days
prior to this contract's termination date, as specified in Section 1.
SECTION 16. SUSPENSION
In the event Administrator fails to comply with any ternl of this contract, Department may, upon
wri tten notification to Administrator, suspend this contract in whole or in part, withhold further
disbursements to Administrator, and prohibit Administrator from incurring additional obligations
for funds under this contract. Administrator acknowledges that it does not have a right to
suspension as a pre-requisite to termination.
SECTION 17. TERMINATION
A. Department may terminate this contract in whole or in part, in accordance with this
section. In the event Administrator fails to comply, in Department's sole discretion and
judgment, with any term of this contract, or any term stated in afederal statute ar
regulation, or with any assurance given to Department by Administrator, or with any term
in a state plan, or with Administrator's application, the notice of award, or elsewhere
Department lnay take any of the following actions: 1. Temporarily withhold disbursements pending correction of the deficiency by
Administrator;
2. disallow all or part of the cost of the activity or action not in compliance;
3. suspend this contract upon written notification to Administrator of the deficiency
and the period within which Adinillistrator must comply;
4. accept Administrator's failure to comply or correct any deficiency within the time
period set forth in any wntten notice of suspension as evidence of Administrator's
inability to perform under the terms of this contract, Administrator's intent to
terniinate this contract and Administrator's agreement to surrender all rights to
remaining funds;
5. withhold further HOME awards from Administrator, and/or affiliated Parties;
.ATTACHMENT A
HOME Contract #1001053
Page 1 ] of 21
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6. take more severe enforcement action against Adniinistrator by taking any other
relnedies that may be legally available to Depat-tment, as determined by
Department, to ensure compliance with the terms of this contract.
B. At the sole discretion of Department, if Administrator has not acllieved substantia]
progress within six (6) Inonths of the effective date of this Contract or has failed to meet
any performance benclunark, this Contract may be terminated. Administrator may appeal
to have the Contract reinstated in accordance with 10 TAC ti 1.7.
SECTION 18. AUDIT
A. In addition to the requirements of Section 6(B) of this contract, Administrator shall
submit to Department, within sixty (60) days after the end of each fiscal year, an Audit
Certification Forn1 as specified by Department for each fiscal year in which any months
of the Administrator's fiscal year overlaps a month of the contract period. Unless
otherwise directed by Department, Administrator shall arrange for the perfonnance of an
annual financial and compliance audit of funds received and performances rendered
under this contract, subject to the following conditions and limitations:
1. Administrator shall have an audit conducted in accordance with 24 C.F.R. §84.26
or §85.26, as applicable; OMB Circular A-133; and 31 U.S.C. 7501 for any of its
fiscal years included within the contract period specified in Section 1 of this
contract in which Administrator has expenses of more than $500,000 in federal
financial assistance provided by a federal agency in the form of grants, contracts,
loans, loan guarantees, property, cooperative agreements, interest subsidies,
insurance or direct appropriations, but does not include direct federal cash
assistance to individuals. The term federal financial assistance includes awards of
financial assistance received directly from federal agencies, or indirectly through
other units of State and local government.
2. At the option of Administrator, each audit required by this section may cover
Administrator's entire operations or each department, agency, or establishment of
Administrator which received, expended, or otherwise administered federal funds.
3. Notwithstanding anything to the contrary in Section 3, Administrator may utilize
funds budgeted under this contract to pay for that portion of the cost of such audit
services properly allocable to the activities funded by Department under this
contract. Provided, however, Department shall not make payment for the cost of
such audit services until Department has received the audit report from
Administrator.
4. Unless otherwise specifically aiithonzed by Department in wnting, Administrator
shall submit two (2) copies of the report of such audit to Departlnent within thirty
(30) days after completion of the audit, but no later than nine (9) months after the
end of each fiscal penod included within the period of this contract. Audits
performed under this section are subject to review and to direction on resolution
of findings by Department or its authorized representative.
B. Notwithstanding anything in Section 18(A) to the contrary, Department reserves the right
to conduct an annual financial and compliance audit of funds received and performances
ATTACHMENT A
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rendered under this contt-act. Administrator agrees to pemiit Departinent, or its
authonzed representative, to audit Administrator's records and to obtain any documents,
matenals, or infornlation necessary to facilitate such audit.
C. Administrator understands and a~rees that it shall be liable to Department for any costs
disallowed ptirsuant to financial and compliance audit(s) of fuiids received under this
contract. Administrator fizrther uliderstands and agrees that reimbur-sement to
Depamiient of such disallowed costs shall be paid by Administrator from funds which
were not provided or otherwise made available to Administrator under tllis contract.
D. Administrator shall take all necessary actions to facilitate the performance of such audit
or audits conducted pursuant to this section as Department may require of Administrator.
E. All approved HOME audit reports shall be made available for public inspection within
thirty (30) days after completion of the audit.
SECTION 19. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The environmental effects of each activity carried out with funds provided under this
contract must be assessed in accordance with the provisions of the HOME Manual,
National Environrnental Policy Act of 1969 (NEPA) and the related activities listed in
HUD's implementing regulations at 24 C.F.R. Parts 50, 51, 55 and 58. Each such
activity must have an environmental review completed and support documentation
prepared complying with the National Environmental Policy Act of 1969 and regulations
at 24 C.F.R. Parts 50, 51, 55 and Part 58. No funds may be requested or committed to
an activity before the completion of the environmental review process, including the
requirements of 24 C.F.R. §58.6 and the Department has provided written
clearance.
B. If funds are provided under this contract to a"state recipient," the recipient is delegated
authority as the Responsible Entity (RE) and makes all environmental clearance
deternlinations. The Department assumes the role of HUD pursuant to 24 CFR Part 58,
"Subpart H- Release of Funds for Particular Projects" and is responsible for reviewing
and approving the Request for Release of Funds and granting the recipient the Authority
to Use Grant Funds.
C. A non-governmental entity is not delegated authority to become an RE and make
environmental determinations and therefore, shall assist Department in completing the
environmental review by providing all relevant documentation needed to perform an
environmental review, or carry out mitigating measures required, or selecting an alternate
properiy for assistance.
D. Both state recipients and subrecipiejits or CHDOs must attend HOME training for
environmental assessment. The assessments must be satisfactory to Department. This
contract is conditional in nature and does not grant Administrator legal claim to any
HOME funds for a specific project or site until the environmental review process is
approved by Department. The agreement to provide funds to the project is conditional on
Department's or Administrator's determination to proceed with, modify or cancel the
project based on the results of a si►bsequent environmental review.
E. Funds provided under this contract may not be used in connection with acquisition or
rehabilitation or new construction of housing located in an area identified by the Federal
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Emergency Management Agency (FEMA) as having special flood hazards, unless the
locality in which the site is located is participating in the National Flood Insurance
Progam (NFIP) or less than a year has passed since FEMA notification regarding such
hazards and flood insurance is obtained as a condition of approval of the commitment.
Adnlinistrator must deterniine if the locality participates in the NFIP during the
preliiiiinary stages of the environmental clearance process.
SECTION 20. AFFIRMATIVE MARKETING
Admiilistrator shall adopt affirmative marketiTlc, procedures and requirements. The affirmative
marketing procedures and requirements shall include, but not be liniited to those specified in 24
C.F.R. §92351. The procedures and requirements shall be prepared in accordance with the
HOME Manual.
SECTION 21. LABOR STANDARDS
A. Every contract for the construction (rehabilitation or new construction) of housing that
includes 12 or more units assisted with HOME funds must contain a provision in
accordance with 24 C.F.R. §92354. Contracts involving their employment shall be
subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards
Act, 40 U.S.C. Sec. 328 to 334. Construction contractars and subcontractors must
comply with regulations issued under these Acts and with other federal laws, and
regulations pertaining to labor standards and HUD Handbook Federal Loan Standards
Compliance in HousinQ and Community Development Programs, as applicable.
B. Administrator, by execution of this Contract, hereby certifies that Administrator, or a
branch, division, or department of Administrator does not and will not knowingly employ
an undocumented worker, where "undocumented worker" means an individual who, at
the time of employment, is not lawfully admitted for permanent residence to the United
States ar authorized under law to be employed in that manner in the United States. If,
after receiving a public subsidy, Administrator, or a branch, division, or department of
Administrator is convicted of a violation under 8 U.S.C. §1324(a)(f), Administrator shall
repay the amount of the public subsidy as stated under Section 3.13. of this Contract with
inter-est, at the rate of 5% per annum, not later than the 120`h day after the date the
Department notifies Administratar of the violation.
SECTION 22. SPECIAL CONDITIONS
A. Department shall not release any disbursements for any costs incurred by Administrator
under this contract until Department has received certification from Adniinistrator that its
fiscal control and fund accounting procedures are adequate to assure the proper disbursal
of, and accounting for, funds provided under this contract. Department shall specify the
content and form of such certification.
B. A housing tmit assisted with funds provided under this contract must meet the
affordability requirements of 24 C.F.R. §92.254(a) and (c) and 92.612(c). Administrator
ATTACHMENT A
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is liable and agrees to repay an amount specified by Departnient for each housing unit
assisted with funds provided Llnder this contract that fails to colnply, or ceases to comply,
with the affordability requirements of this contract. If Administrator lends funds
provided under this contract to anyone, the resulting loan agreement, note, and mortgage
nltist provide that the affordability requirements must contiiiue to be met throughout the
ternl of the loan and that the affordability requirements shall be binding upon the heirs,
successors, assignees, and transferees of Administrator. Department shall not release any
funds for any costs incurred by Administrator under this contract until Department has
received from Administrator an executed, legally enforceable agreement from each
homeowner containing remedies adequate to enforce the affordability requiremcnts of 24
C.F.R. §92.254, as applicable, with Administrator: Administrator shall record such
agreements in the real property records of the county in which the housing unit is located
and return the original documents, duly certified as to recordation by the appropriate
county official, to Department. Receipt of such certified recorded original agreements by
Department is required prior to disbursement of any funds under this contract.
C. Upon termination of this contract, all funds remaining on hand on the date of termination,
and all accounts receivable attributable to the use of funds received under this contract
shall revert to Department. Administrator shall return these assets to Department within
seven (7) business days after the date of termination.
D. Any home demolished that cannot be completed within the contract period becomes the
responsibility of the Administrator for completion.
E. The Administrator shall include language in any subcontract that provides the
Department the ability to directly review, monitor, andlor audit the operational and
financial performance and/or records of work performed under this Contract.
F. The Administrator shall include language in any subcontract that failure of
subcontractor/consultant to adequately perform under the contract may result in penalties
up to and including Debarment from performing additional work for the Department.
SECTION 23. ORAL AND WRITTEN AGREEMENTS
A. All oral and written agreements between the Parties to this contract relating to the subject
matter of this contract that were made prior to the execution of this contract have been
reduced to writing and are contained in this contract.
B. The attachments enumerated and denominated below are a part of this contract and
constitute pramised performances under this contract:
1. Exhibit A, Performance Statement and Budget
2. Exhibit B, Applicable Laws and Regulations
3. Exhibit C, Certification Regarding Lobbying
SECTION 24. VENUE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
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SECTION 25. COMPI IANCE WITH FEDERAL, STATE, AND LOCAL LAW
Administrator shall comply Nvith all federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to the
activities alld performances of Administrator under this contract. Upon reauest by Department,
Adniinistrator shall furnish satisfactory proof of its compliance therewith.
SECTION 26. CERTIFICATION REGARDING CERTAIN DISASTER RELIEF
CONTRACTS
The Department may not award a contract that includes proposed financial participation by a
person who, during the five-_year period preceding the date of this Contract, has been convicted
of violating a federal law in connection with a contract awarded by the federal government for
relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by Section
39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after September 24,
2005; or assessed a penalty in a federal civil or administrative enforcement action in connection
with a contract awarded by the federal government for relief, recovery, or reconstruction efforts
as a result of Hurricane Rita, as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
any other disaster occurring after September 24, 2005. By executing this Contract, Che
Administrator hereby certifies that:
"Under Section 2261.053, Government Code, Administrator certifies that the individual or
business entity named in this Contract is not ineligible to receive the specified contract and
acknowledges that this contract may be terminated and payment withheld if this certifieation is
inaccurate."
ATTAC'HMENT A
HOME Contract #1001053
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME COIVTRACT # 1001053
EXHIBIT A
PERFORMANCE STATEMENT AND BUDGET
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall carry out the following activities identified by this Exhibit A and in its
HOME Program Application Number 2008-0102.
OWNER OCCUPIED HOUSING ASSISTANCE PROGRAM
Administrator shall implement an Owner Occupied Housing Assistance Program in accordance
with 24 C.F.R. Part 92 and the applicable Texas statutes and the State HOME Program Rule at
10 TAC Chapter 53 (the "2009 HOME Rules°") adopted November 13, 2008, utilizing THREE
HUNDRED SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($375,000.00), in
project funds and FIFTEEN THOUSAND AND NO/100 DOLLARS ($15,000.00), in
administrative funds.
Administrator shall use the funds provided under this contract to provide assistance to
reconstruct or rehabilitate a minimum of FIVE (5) houses each of which must be the principal
residence of the eligible homeowner assisted. Performance under the Contract term will be
based on the following benchmarks from the Contract begin date:
1. 6 months, exempt administrative and broad review environmental clearance must be
complete, and if not tiering, the first Household to be assisted must be environmentally
cleared;
2. 8 months, Authority to Use Grant Funds must be fully executed and all Households to
be assisted must be environmentally cleared;
3. 12 months, 100% of funds must be committed to Households to be assisted;
4. 18 months, 100% of household's Loans must be closed, if applicable;
5. 22 months, 100% of construction must be complete for all Households to be assisted;
and,
6. 24 months, 100% funds drawn and 100% of match requirement supplied.
Administrator shall provide HOME Owner Occupied Housing Assistance in the form of a lst,
2"d ot- 3id lien loan. The maximum arnount of assistance is the total of construction costs and soft
costs provided to an eligible household, the total construction costs are limited to:
arracxMENT A
HOME Contract 41001053
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1. Rehabilitatiori that is Reconstruction: The lesser of S73.00 per square foot or
$80,000, if the recolistruction includes actual costs for an aerobic septic system and/or
demolition. If the reconstruction includes costs for an aerobic septic system and/or
demolition, the total construction costs cannot exceed $73.00 per square foot
exclusive of the aerobic septic system and demolition costs; and
2. rehabilitation that is not reconstruction: $30,000.
Eaeh loan will be in the form of a zero percent (0%) interest loan far total amount of assistance
provided with a term based on the income level of the household and in accordance with 10 TAC
S 53.31 as follows:
1. Five-year deferred, forgivable loan for households whose income is less than or equal to
thirty percent (30%) of the AMFI, as defined by HUD.
2. Fifteen-year deferred, forgivable loan for households whose income is greater than thirt_y
percent (30%) and less than or equal to fifty percent (50%) of the AMFI, as defined by
HUD.
3. Twenty-year deferred, forgivable loan for households whose income is greater than fifty
percent (50%) and less than or equal to sixty percent (60%) of the AMFI, as defined by
HUD.
4. Twenty-year term repayable loan for households whose income is greater than sixty
percent (60%) and less than or equal to eighty percent (80%) of the AMFI, as defined by
HUD.
In instances where a manufactured housing unit will be replaced with newly constructed housing
(site-built) or the homeowner will relocate to an alternate housing site, HOME assistance shall be
in the form of a zero percent (0%) interest, deferred forgivable loan with a term based on the
federal affordability requirements as defined in 24 CFR §92.254.
For households whose income is at or below thirty percent (30%) of the area median family
income, as defined by HUD, in accordance with the Housing Assistance Rider of the
Department's Legislative Appropriation, Administrator may use the state average median family
income in determining income eligibility for the program, and the form of assistance to
determine the affordability period.
All loans to assisted homeowners must be evidenced by loan documents provided by
Department. Each loan to an assisted homeowner must be payable to Department. Each loan
shall be evidenced by a construction loan agreement, note, deed of trust, mechanic's lien note,
and mechanic's lien contract secured by the property and must be fully executed before any
construction activities commence.
Forgiveness of the loan balance is calculated based on a pro-rata annual share of the loan term.
The anniversary date of the loan shall constitute completion of the year. Any partial year shall
not be waived. The amount due will be based on the pro-rata share number of years of the
remaining loan term.
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If at any tiine pnor to the full loail period there occurs a sale of the property, the unit ceases to be
the assisted homeowner's principal residence ar default occurs, the loan shall beeome due and
payable.
In tlle event of refinance of any superior lien, at Department's discretion one of the following
options will apply:
l. re-subordination of the Note if the assisted hoineowner can provide docurnentation,
acceptable to the Departinent, showing that no funds are due ihe assisted homeowner as a
result of the refinance; or
2. the assisted homeowner will pay off the Department's subordinate loan from loan proceeds
of the refinanced superior lien.
In the event of payoff of any supenor lien, the assisted homeowner will have the option of:
1. repaying the balance of the Department" s subordinate loan in full: or 2. repaying the balance of the Department's loan in equal monthly installments over a five (5)
year period.
For Owner-Occupied Housing Assistance, all project set-ups and support documentation for
commitment of fiinds must be submitted to and approved by the Department no later than 240
days prior to the end of the Contract Period and the loan must close no later than 180 days pnor
to the end of the Contract Period.
ZERO (0) of the FNE (5) assisted homeowners shall have incomes that are less than or equal to
thirty percent (30%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equa] to 30% of
the AMFI as required above, THREE (3) of the FIVE (5) assisted homeowners shall have
incomes that are less than or equal to fifty percent (50%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equal to 30%
and 50% of the AMFI as required above, ZERO (0) of the FIVE (5) assisted homeowners shall
have incomes that are less than or equal to sixty percent (60%) of the AMFI, as defined by HUD.
In addition to the number of assisted homeowners that have incomes less than or equal to 30%,
50% and 60% of the AMFI as required above, TWO (2) of the FIVE (5) assisted homeowners
shall have incomes that are less than or equal to eighty percent (80%) of the AMFI, as defined by
HUD.
Administrator may use the funds provided under this contract to provide assistance to reconstruct
or rehabilitate additional houses after the minimum of FIVE (5) homeowners have been assisted
provided that the additional homeowners' incomes are less than or equal to eighty percent (80%)
of the AIVIFI, as defined by HUD, and all other requirements are met.
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Each unit must, at a minilnuiii, mcet or exceed the Texas Minimum Construction Standards
(TMCS) as well as loca] building codes and zonin- ordinances. If a home is reconstructed,
Administrator niust also ensure compliance with the universal design features for construction of
sin(Yle familv affordable housing. established by §2306.514 of the Texas Government Code, the
energy efficiency standards established by §2306.187 of the Texas Government Code, energy
standards as venfied by a RESCHECK certification, and the International Residential Codes, as
required by Subchapter G, Chapter 214, Local Government Code.
Administrator is liinited to serving homeowners who certify the assisted unit will be their
primary residence and is located,in the Rural area of the City of PARIS, located in LAMAR
County, Texas, in Uniform State Service Region Number FOUR (4), and in a jurisdiction that is
not a participating jurisdiction, as delined in 24 C.F.R. §92.105, unless otherwise approved by
Department.
MATCH
Administrator will provide match funds in the amount of FORTY-SIX THOUSAND EIGHT
HUNDRED SEVENTY-FIVE AND NO/100 DOLLARS ($46,875.00), as specified in its
HOME Application, or other eligible match as approved by Department.
1Vlatch funds must be reported on a pro-rata basis based on disbursements. Support
documentation evidencing the match contribution must be submitted by Administrator upon
request for disbursement of funds for each project assisted, in accordance with 24 C.F.R. Part 92,
the Department's HOME Program Rule, HOME Program Match Guide, CPD Notice 97-03
HOME Match Guidance and HOME Program Manual.
ADMINISTRATION
Administrator may expend funds provided under this contract for reasonable administrative and
planning costs directly related to this contract in accordance with Sections 3, 4, and 5 of this
contract and 24 C.F.R §92207 in an amount that is not more than four percent (4%) or
FIFTEEN THOUSAND AND NO/100 DOLLARS ($15,000.00), of the total amount of project
funds received under this contract.
Before the effective date of the HOME Contract, the Contract Administrator may incur and be
reimbursed for travel costs, as provided for with Adnlinistrative funds, related to mandatory
implementation training required by the Department as a condition of receiving a HOME award
and Contract.
Administrator shall be allowed to draw up to ten percent (10%) of the actual allowable
administrative costs (including pre-award costs) incurred at the initial stage of the Contract, withthe remaining ninety percent (90%) funded on a pro-rata basis, based on project fund
disbursements.
ATTACHMENT A
HOME Contract 41001053
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFA[RS
HOME PROGRAM
HOME CONTRACT # 1001053
EXHIBIT B
THF, APPI.ICABLE LAWS AND REGULATIONS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall comply with all federal, state, and local laws and regulations applicable to
the activities and performances rendered by Administrator under this contract, including but not
limited to the laws and the regulations specified in Sections I through N of this Exhibit B.
1. CIVIL RIGHTS
In addition to The Fair Housing Act (42 U.S.C. §3601 et seq. and implementing regulations
at 24 C.F.R. Part 100), specific federal requirements are set forth in 24 C.F.R. Part 5
II. LEAD-BASED PAINT
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. §4821 et seq. and 24 C.F.R. Part 35
III. ENVIRONMENTAL STANDARDS
The environmental effects of each activity carried out with HOME funds must be assessed
in accordance with the provisions of the National Environmental Policy Act of 1969 (42
U.S.C. §4321 et. seq.) and the related authorities listed in HUD's implementing regulations
at 24 C.F.R. parts 50 and 58.
IV. ACQUISITION/RELOCATION
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42
U.S.C. §4201 - 4655 and 49 C.F.R. Part 24.
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