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2009-034-RES-Homebuyers Assistance ProgramRESOLUTION N0. 2009-034 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 GRAIVT; MAKING 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 201ow 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 20 low 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, 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 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 27th day of April, 2009. j se jame reelen, Mayor ATTEST: nice Ellis, City Clerk ATTEST: W. Kent Mc ar, ity ttorney 2800 Lamar Avenue, P.O. Box 26 ■ Paris, Texas 75460 903.739.9947 ■ fax 903.739.2104 ■ parisliving@sbcgtobal.net 2008 OrE9ti ER`s April 21, 2009 P9'C'.SEd°86t. Cl6kEFD6i Vf;P3dBP,}, Jesse James Freelen Mr TrPa4ureg. . PatalGp Ceciw Mayor City of Paris Se"reta`y P.O. Box 9037 D@'BiE&(; Wi6s63SCBS Paris, Texas 75461 or- DIRECTORS Dear Mayor Freelen: I@%'l:te-y C9a{e.k Do'' W°ison paris Livin A Community Development Corporation ("Paris Living" or the "Corporation") is RaAn ~Ca~igEit g- ,~~,~4„~ti ~o~~a~, pleased to be selected by the City of Paris (the "City") to administer the City's Homebuyer ~era6'~~ ~~~~~ey Assistance Program funded by the Texas Department of Housing and Community Affairs St`'q,"e Byrd ("TDHCA") in the amount of_$208,000, including administrative cost allowance. As outlined ,4z19 Dra@ce_ c~~ ~~DOaVra 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 Kewan Carruth 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"). Se A~~F MiehAet Huiicc-r 1. The City hereby engages Paris Living to provide, in general, the following: (a) perform the overall administration of the Proa am at the direction of the City and in accordance with the approved progam 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, creatina public service announcements for ]ocal 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 bonower 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 desijned to improve the Program; (h) assist the City during TDHCA monitoring visits and prepare any required response to any monitoring findings; EXHIBIT (i) cause to be maintained a file on each property funded through the Progam for review by TDHCA and/or HUD; (j) prepare any and all invoices fr-om Paris Living or its consultant Hunter & Hunter Consultants, Inc. ("H&HCP') 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 s as eis allowed undereHLJD egulat on ~ arbed to each individual l o a n a s p r o j e c t r e l a t e d s o ft cost 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 atld 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 H[JD; . Develop a Project affirmative marketing plan for the City; . Conduct all necessary Lender/Realtor trainina 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 ]ocal bank account, journals and ledgers; • Assist the City in responding to single audit report requests from TDHCA; • Prepare all 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. 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 infonnation 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 Prob am. 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 thern 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 audii findings; Assist the Corporation in resolving any third party claims; . Provide City Auditor with HOME audit b idelines. 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 administerin~ the ProD am 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 aa ees to pay or cause to be paid to Paris Living an administrative fee, in an amount equal to 4% of all project funds expende sudCdl down paymentland closing cost awarddtotbe paid at each not to exceed 10% of ach Cessfu 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 Livin~ 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 charaed against the administrative or project related soft costs of the Prob am or against third pariy 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 aeneral activity categories and per the following milestones: % OF TOTAL CONTRACT FEE ACTIVITY* 25% 1, Affirmative Marketing 36% 2. Record Keeping 3 goo 3. Financial Management Ol% 4. Administrative Environmental 100% TOTAL: % OF BILLING MILESTONES** CONTRACT FEE 1 2°d home loan completed and reimbursed by TDHCA 10% , 2, St'' home loan completed and reimbursed by TDHCA 15% 25% 3. 10~' home loan completed and reimbursed by TDHCA 25% 4 15~' home loan completed and reimbursed by TDHCA 20% . 5 19`h home loan completed and reimbursed by TDHCA So . 6. 20`i' (or last) home completed and reimbursed by TDHCA O 100%** TOTAL: 20 home loans completed *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 thetotal 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 HUD 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 for 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 eatensions to thereof, whichever period is lon~er. 7. It is expressly understood and agreed by the Parties to this Aareement, that Paris Living is an independent contractor, and as such, Paris Living agrees to release, defend, indemnify and ]lold the City of Paris, its elected officials, officers and employees hannless from and against all damages, injuries, claims, properiy damage, losses, demands, suits, judgrinents and costs includinc, reasonable and necessary attorney's fees of any kind or character which arises from or are related to this Aareeme tos under thbs Aaoe med by Paris Living, its consultants, subcorlsultants, employees or contra g, 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, includinc, reasonable attorney's fees, arisina. from the negligent aCtions o1' 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 ab ees to administer the Homebuyer Assistance Program for the City of Paris in strict compliance with the tenns 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 Assis ~eem nt or finallpaym nt b athetCity under this Agreement,e date o f f i n a l s e ttl e m e n t o f t h i s A~ whichever is later. 11. For the convenience of the parties hereto;. any number of counterparts of this Agreement may be executed by dle 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 foregoin; correctly sets forth our AgreemPnt, 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 Livinb A Community Development Corporation By: Clifton Fendley President City of Paris Effective Kevin Carruth Effective Date City Manager Date TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS _ - Zv1U2U.td7CC1.5tatC.tt.1t5 B OpRD ~7EIIBEhS RickPerry ~ C. Kent Conine, Chirir ~,~`~~~~R Leslie Bingham Escacefio Tomas Cardenas, P.E. Sonny Fiores Michael Gerber ]uan S. Munoz, Ph.D. Gloria Ray EXECUTIVE DIRECTOR ~ Allgl1St 22, 2008 •,3~~9r~ ,:I~r~ Mr. Kevin Carruth, Ciry Manager Ciry Of Paris -1s, ve PO Box 9037 Paris, TX 75461 RE: HOME Program HBA Apptication # 2008-0004 and Contract 41000930 Dear Mr. Carruth: Enclosed is a copy of the fully executed contract between the Texas Department of Housing and Community Affairs (TDHCA) and the City Of Paris for your recent TDHCA HOME Program award. the contract Your contract number is 1000930. econta'med dmin strarive errorston pages 9 and 16S signature page. Please note hat the origin1 cntr - These pages have been replaced in the enclosed executed contract As a successful HOME applicant, the City Of Paris will be responsible for policies, procedures and assistance you regulations detailed in your contracHOME Div~ ioprovide n staff m~emberseh v technicaleen assi~ed too your t h r o u g h o u t t h e c o ntract process, specifi contract. Your assigned Program Specialist is Charlotte Cox, (512) 305-8854> charlotte.cox@tdhca.staxe.tx.us. Charlotte Cox will be responsible for assisting you with the HOME Coniract System access and 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 responsible for and fulf ll your contractual obligat onsersight to ensure that you are able to meet the benchmarks requud 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, 4~~.~. t~ ~ Jeannie Arellano, Director HOME Division JA:smg Enclosures Contract File n1000930 221 EnsT 11T" • P. O. Boz 13941 • AusTIN, TExns 78711-3941 •(800) 525-0657 ' (>iZ) 47 5-3800 TE-KAS DEPA_2T_.N1E.NT OF HOUSI'N'G AND C0MMUNI'I'Y 4FFAIRS HOME PROGRaM HONIE CONTR-A,CT # 1000930 «7TH CITY OF PARIS, h POLITICAL SL?BDIVISION OF THE STATE OF TEV.AS, CFDA 14.239 HOME IN'VESTMENT PARTNERSHIPS PROGRAM Awarding Federal Agency: U.S. Department of Housing and Urban Development Award Number: M-_ SG-48-0 100 Award Year: 2008 HUD Entity Type: State Recipient This contract and agreement ("Contract") in coiuzection with a HOME Investment Partnerships Program award is made and entered into by and between the TEXAS DEPARTMENT OF HOUSING AND COMIVIUNITY 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 denved 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 task___s which are the substance of this contract. SECTION L 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 hZVestment Partnerships Act of 1990, 42 U.S:C. 12721-12839 (the "Act"); applicable Federal and CPD Notices issued by I~[.J~D; implementing regulations, 24. C.F.R. Part 92; Tex. Gov't Code Arvi. Chapter 2306 (Vernon 2003), the HOME Investment Partnerships Program Rules, 10 TAC §53 et seq. (the "HONIE Rules"), the HOME Program Manuals ("HOME Manual") and the Application Package. Administrator aggrees to perform all activities in accordance with the tern7s of the Perfonnance Statement arld Budget attached hereto as Exhibit A; the Applicable Lav~,s and Regulations attached hereto as Exhibit B; the Certifications attached hereto as Ezhibit C; all such Exhibits incorpol-ated herein for all relevant purposes; the assurances, certifications, and all other statements made by Adrninistrator in its application for the project funded under this contract; and Nvith all other tenals. provisions, and requiremznts herein set torth. SECT'ION 3. DEPARTMENT 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 limitations 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 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 Adrninistrator or are subject to reimbursement to Administrator, by any source other than Department; 3. Department shall not be obligafed to pay to Administrator for any costs incurred by Administrator which are not allowable costs, as set forth in 24 C.F.R. Sections -any-iutare rnt'r~s---6rzle~ermina ions ot----- the U.S. Departrnent 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 Administratar for any costs incurred by Administrator or for any performances rendered by Administrator which are not strictly in accordance with tlie terms of this contract, including the.terms of Exhibit A, E}c.hibit B, and Exhibit C, of this contract; and of th s~ performances 5. Department shall not be obligated to par dte costs r afte nthe rendered by Adrninistrator before the effective 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. 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 TWO HUNDRED EIGHT 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 Paee 2 of 21 SEC"~~ON 4L DISBLJRSEMENT OF F1i1NDS 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 detez-inine the reasonableness of each amount requested and shall not make disbursement of any such payment until Department has reviewed and approved such request. Adininistrator aQrees to attend Implementation Trairung 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 eapend 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 temiinate 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~ht ar remedy___Ezi1-ur_t to PXPre;~~ anTrigh~x ren'ed~~.1ere~d~-- 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. LTNIFORM ADMINISTRATIVE RE4UIREMENTS, COST PRINCIPLES AND PROGRAM INCOME A. If Administrator is agovenunental entity, Adininistrator shall comply with the requirements of OMB Circular No. A-87; the requirernents 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 oraanization, Administrator shall comply with requirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84 unless otherwisespecified in this contract. HOMF. Contract 41000930 PaQe 3 of 21 C. Administrator may not retain proRram income or Conimunity HousinQ Development Oraanization ineome proceeds of any kind, ho~Nvever derived, under this contract, including the retention of program income to fund other elioible HOME activities. Administrator shall coinply 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 De.partinent 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 progran income used and noted in the request. D. If Administrator is not a government entiry, Administrator sha11 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 coveraae or policy endorsements. Administrator aarees 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 coveraae and polic~~ Pnr.~dorsem-ents are 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(e), except: 1. If any litis2ation, claim, negotiation, audit, monitoring, inspection or other action has started before the expiration of the required re.cord 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. HOME Contract #7 000930 Page 4 of 21 I~ecords coverina displacement and acquisitions must be retained for fi~~e (~j years after the date b}- which all persons displaced from the property and all persons whose property is acquired for the project ha~~e received the final pa~~ment to which they are entitled in accordance with 24 C.F.R. Part 92. 3. For rental housinc, 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 affordabiliry period ternlinates. D. Administrator aclcnowledges that Department is subject to the Texas Public Information Act and Administrator agrees that funds received from the Departinent are subject to the Texas Public Infornzation 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. limita ians on liahilii~-L~-thPr~aL,eP ~P~;fiP~ -~--t~s--~~~ac~-~s------ ~ ~n In addition z 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 terrnination, Adrninistrator's ribhts 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 perforniance in accordance with the requirements of the Act, 10 T:AC §53 and contained in the Performance Statement and Budget (Exhibit A). SECTION 8. MONITORING Department reserves the riaht to carry out field inspections and desk reviews to ensure compliance with the requirements of this contract. After each monitorino visit or desk review, HOME Contract r 100093 0 Page 5 or 21 Department shall pro~~ide Adm.inistrator ~~~ith a~~ritten report of the monitor's findinas. If the monitoring reports note deficiencies in Adininistrator's performance under the ternls of dlis contract, the monitorina report shall include requlrements for the timely correction of such deficiencies by Administrator. Failure by Administrator to talce 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. Administrator agrees to attend trainina, as required by Department, includinQ Implemeiltation Training, WednesdayWoh~shop training, and ls` Thursday Income Eligibiliry Training and other HOME Proeram vvo p SECTION 9. IIVDEPIENDENT 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 eatent allowed l Daehacter which may be any and all claims, demands, and causes of acbon of every kind and asserted by any third party occurring or in any way incident to, arising out of, or in connection with the services to be perfom-ied by Administrator under this contract. SECTION 10. SUBCONTRAC'I'S - f--.ac~i.vitiP~ A. Administrator shall _onlv suTb_contract for_perf rm~nce_o contract after Administrator has obtained tUe 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 terrns 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 government entity), in the procurement of propert~y and services. D. Administrator shall include language in any subcontract that provides the Department and HUD the authoriry 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, including subcontractors, contractors and consultant or service provider. HOME Contract # ] 000930 Paoe 6 of 2 I Administrator shall include in any subcontracts that failure to adequately perforn-i under this Contract ma~result in penalties up to and includin~ Deba~n7ent fronl perfonnina additional Nvork for the Department. SEC'TI0101 fll. C01VF'LIC"i' OF INTEREST A. Administrator shall ensure that no employee, agent, consultant, officer or elected or appointed official of Administrator, who exercises or has exercised any functions or responsibilities with respect to aetivities assisted with funds providedunder 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 agreernent (or the proceeds thereof) with respect t bus ness ties, sdudring thei tenuref or themselves or those with whom they have family 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,• A~min strator ohall co inte`cr~~ the firm or person selected to ~crform the subcontract 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 an individual receiving HOME funds to maintenance worker in that development and (2) 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 ensure that no person shall, on the grounds of race, c.olor, religion, sex, handicap, familial status, or national ori~in, be excluded from participation in, be denied the benefits of, or be subjected to discrirnination under, any program or activity funded in whole or in part with funds provided under this contract. HOME Conuact +1000930 PaLze 7 of 21 L. None of the performances rendered bv Administrator under tlus contract shall involve. and no portion of the funds received by Administrator under this contract shall be used in support of any inherentlv reli~~ioul om~~lv «i h he reQulathops pr~omulaatedtby thenU.Sr proselytization. Administrator shal p _ Department of Housina and Urban Development at 24 C.F.R. §92.257. C. Administrator shall include the substance of this Section 12 in all of its subcontracts. SECTION 13. I.EGAL ALT~THORITY A. Administrator assures and -uarantees Department that Adniinistrator possesses the legal authority to enter into this contract, to receive funds authorized by this contraet, and to perforrn the services Administrator has obligated itself to perform under this contract. B. The person(s) signing and executin-, 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 i~atina in the HOME Proaram by HUD or the Department. Administrator______ partic acltnowledges and agarees 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. L,ITIGATION AND CLAIMS A. Administrator shall give Department ii~zediate 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 fumish 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 other~~~ise in this contract, any chances, additions, or deletions to the terms of this contract shall be in writing and executed by both parties to HUNfE Contract +-1000930 Pace 8 of 21 this coiltract. Sn e.\ecuted facsimile copy \~'ill be sufficient to e~~idence the Parties agreennent to any aiilendnlelit, revision or chanRe to this contract. B. It is understood and a,-,Teed by the Partles llereto that perfonnance of all activlties under tllis contract must be rendered in aecordance with the Act, Ex1libit A of tlzis Contract, the regulations promulgated under the Act, the assurances and certifications made to Departriient 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 operatioii of the HOME Program. Based on these collsiderations, and in order to ensure the legal and effective performance of this eontraet by both Parties, the Parties herein agree that the activities under this contract are amended by the provisions of tlle HOME Manual and any amendments or revisions thereto, and may be further amended in the following Inaruler: 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 fonn of HOME Proaram Policy Issuances; b. have the effect of qualifying 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 prior to the effective date of said amendment or policy directive. - C. Any changes, additions, or deletions to the tenns 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, aiid shall become effective on the date designated by such law or regulation. D. Amendment requests must be submitted in writing by Administrator sixty (60) 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 tenn of this contract, Departnient may, upon written notification to Administrator, suspend this contract in whole or in part; w.ithhold further disbursements to Administrator, and prohibit Administrator from il~cumng additional obligations for funds under this contract. Administrator acknowledges that it does not have a right to suspension as a pre-requisite to tennination. SECTION 17. TERMINATION A. Department ma_y tei-n7inate this colitract in wIlole or in part, in accordance with this section. In the event Administrator fails to comply, in Depai-tment's sole discretion and judgiiient, ~vitl7 any terni of t11is contract, or aily term stated in a federal statute ol- reL,ulation, or with any assurance given to Department by Administrator, or wl . th any tern7 I-30ME Conuact # 1000930 Page 9 of 31 in a state plan, or with .4dministrator's application, the notice of award. or elsewhere Departlnent may take any of the followin, actions: l. Telnporarily %~'ithhold disbursements pendin~ correction ot t11edeficiency b}~ Administrator; 2. disallow all or part of the cost of the activity or action not in connpliance; 3. suspend this contract upon wntten notification to Adn~inistrator of the deficiency and the penod within which Adnlinistrator must coinply; 4. 3ecept Administrator's failure to comply or correct azly deficiel7cy within the time period set forth in any written notice of suspension as evidence of Administrator's inability to perfornl under the terms of this contract, Administrator's intent to tern-iinate this contract and Administrator's agreemelit to surrender all riglits to remaining funds; 5. withhold further HOME awards from Administrator, and/or affiliated Parties; 6. take more severe enforcem antac aolailable auainst Department, tal'ing determnnedtl~y remedies that may be legally Department, to ensure compliance with the terms of this contract. ailed substantial B. At the sole discretion of Department,ve ddate of th s Contract achieved pro~ress within six (6) months of the effecti any perfornlance benchmark, this Contract may be temzinated_ Administrator may appeal to have the Contract reinstated in accordance with 10 TAC § 1.7. SECTION 18. AUDIT In addition to tlle rrements 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 Forna as specified by Department for each the contract which y Umonths nless of the :Administrator's fiscal year overlaps a month of 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 tcnses of more fithan $500,000 in fede al contract in which Admimstrator has expe financial assistance provided by a federal agency in the fonn of grants, contracts, loans, loan gu a r a n tees, pro perty, 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 goverm-nent. At the option of Administrator, each audit required by this section may cover Administrator's entire operations or each departznent, agency, or establisl-iinent of Administrator whiclz received, expended, or otherwise administered federal funds. N OME Connact # ] 0009 ',0 Paee 10 of?I 3. Not«~ithstandinQ anything to the contrary in Section 3, Aaministrator may utilize funds bud2eted under this contract to pay for that portion of the cost of such audit services properly allocable to the activities funded by Departnlznt under this contract. Provided, hoxever, Department shall not inal:e pa;'ment for the cost of such audit services until Department has received the audit report from Administrator. 4. Unless othe.rwise specifically authorized by Department in writinc, 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 pennit 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 tlus 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 CLEAI2ANCE 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 Envirom-nental 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 Che National Environmental Policy Act of 1969 and regulations at 24 C.F.R. Parts 50, 51, 55 and Part 58. No funds may be comanitted 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 environiriental clear3nce 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 reviewina HONg Contract #1000930 Page ]l of?1 aizd approvina the Request for Release of FundS and arantina the recipient the Authority to Use Grant Funds. C. A non-Qovernmental entity is not deleQated authoriry to become an RE and make environmental detenninations and therefore, shall assist Department in completiny the environmental review by providing all relevalit documentation needed to perform an envirorllnental review, or carry out mitigatina nzeasures required, or selectina an alternate property for assistance. D. Both state recipients and subrecipessments muDObe satisfa tory to DepartmentnbThis environmental assessment. The ass 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 ei~h, niodify or cancel the project based on the results of a subsequent environmental rev 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 obfatne local tynpartcipateppinvthe NFIP during the Administrator must determine i preliminary stages of the environmental clearance process. SECTION 20. AFFIRMA''IVE 1VgARKETING 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. §92351. The procedures and requirements shall be prepared in accordance with the HOME Manual. SECTION 21. I.AB4R STANDARDS or the construction (rehabilitation or new construction) of housing that A. Every contract f ontain includes 12 or more units assisted with HOME funds must c a provision in accordance with 24 C.F.R. §92'~ablef the Contracts C--ontract lWork Hours and Safety Standards subject to the provisions, as appli , o Act, 40 U.S.C. Sec. 328 to 334. Construction contractors and subcontractors must aws comply with regulations issuedunder ds h and HUD Handb ok Federal Loan lS andards regulations pertainina to labor stndar Com liance in Housina and Communitv Develo ment Proarams, as applicable. B. Administrator, by execution of this Contract; hereby certifies that Administrator, or a ment of Administrator does not ~d ind vidual holo ~ branch, division, or depart an l.undocumented worker, where "undocumented worker means an HOME Contract # 1000930 Paee 12 of 21 the tiine of emplo~~ment. is not la«~fullv admitted for pemlanent residence to the United States or authorized under la«7 to be emploved in that manner in the United States. If, after receiving a public subsidv, Administrator, or a branch, division, or departnlent of Administrator is convicted of a violation Under 8 U.S.C. § 1324(a)(~. Adnzinistrator shall repay the amount of the public subsidy as stated und~ev ded by anB ~re ment undercTe,~as interest, at the rate of according to the other tern~s p . ~ 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 acreeinent between the Departinent 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. § 13 )24(a)(f), Administrator shall repay the amount of the public subsidy as stated under Section 3.11. 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`" day after the dafe the Department notifies the Administrator of the violation. SEC'TION 22. SPIECIAL 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 T1Pnartment ,h l_specifv_the_.___ , content and fonn of such certification. B. A housing unit assisted with funds provided under this contract must meet the g d (c) and 92.612(c). Administrator affordability requirements of 24 C.F.R. §92.254(a) an is liable and agrees to repay an airiount specified by Department for each housing unit assisted with funds provided under thi thisccontractls tIf comply, with the affordability requirements of provided under this contract to anyone, the resulting loan agreement, note, and mortgage inust 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 containinD remedies adequate to enforce the affordability requirements of 24 C.F.R. §92.254, as applicable, with Administrator. Administrator shall record such av-reements in the real property records of the counry in which the housing unit is located and retunn the oriQinal 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 attrib nab~~to~ shall return heae a sets o D contract n shall revert to Department. Adr seven (7) business days after the date of termination. HOME Contract n 1000930 Pace 13 of 21 SECTIC➢N 23. n1DAL -&NB VVRIT'T]EN AGREEMENT'S All oral and written aoreements between the p~ he e~ ecut on contractof thislco~ntrac~tthave b~een matter of this contract that were made pnor reduced to writing and are contained in this contract. B. The attaclunents enumerated and denominated below are a part of this contract and constitute promised performances under this contract: 1, Exhibit A, Performance Statement and Budget 1). Exhibit B, Applicable Laws and Regulations 3, Exhibit C, Certification Regarding Lobbying SECTIOIV 24. VENUE For purposes of litigation pursuant to this contract, venue shall lie in Travis County,. Texas. - _ - - - - . - 25. CONIP']LIANCE WITH FEDERAL STATE AND LOCAL LA~' SECTION- es, Administrator shall comply with all federal, state and local laws, states, or tr bunallr ated, to the regulations, orders and decrees of any court or adminis Y activities and perforniances of Administrator under this contract. Upon request by Department, Administrator shall furnish satisfactory proof of its compliance therewith. SECTION 26. CERTir ICATIf~N REGARDING CER'I'AIN BISASTER RLLiEr CONTRACTS partici The Department may not award a contract includes f thoSContlraanchas been ponvo'ictbd of person who, during the five-year period precedma ~ the date o venunent violating a federal law in connection with a contract f Huai ane Ritaf asedefin~ed by Sect on relief, recovery, or reconstruction efforts as a reult o fLer 39.459, Utilities Code, Hurricane Katrina, or anin strat vetenforcem n~ ac ion pconnection 2005; or assessed a penalry in a federal civil or adm with a contraet awarded by the federal government ~~r4~~lie~Ttilit~ se C-ode Hurrican reconsttKatrion or as a result of Hurrlcane Rita, as defined by Section any other disaster occurring after September 24, 2005. BNT executina this Contract, the Adlninistrator hereby certifies that: HOI,,1E Contract r 1000930 Paae 14 of 21 "Under Section 2261.053. Govemment Code, Adininistrator certities that the individual or business entity nmlied in this Contract is not ineliaible to receive the specified contract and acl:now-ledges that this contract may be tenninated and payment ,vithheld if this certification is inaccurate." WI'l['IiTESS OUI12 HA1`TD EFFECT'IVE: CITY OF PARIS, A POLITICAL Si)BDIV1SION OF 'I'HE S'I'AT]E OF 'I'E%AS, Bv: Name: Title: Date: August 1, 2008 THIS -CaAT~'12:~i-C'I-~5?~-A$--RObEI~--B-Ir -~I-1~$8A~- ~-D*E~O~2S--(~N ~ 1~~'$- ~6~, ,e,ND IS NOT EFFECTNE F HOUSINGNEAND YC MTHE MUNYTYT~ A~ DIRECTOR OR HIS/HER TEXAS DEPART1ViENT O ALT'I'gIORIZED DESIGNEE. THIS CQNTRArT IS A_PPROVED, ACCEpTED ANiD M.k-DE EFFEC'I'IVE ON 200 AND WILL TERMINATE ON ~ ~ Zp~ ~ON BEFIALF OF: P \ i TEX.4S DEPARTMENT OF HOUSING ?.N`D COIVIMLJNITY AFFAIRS B`!. ; ; - ix%Iichael Gerber, Executive Director HOME Contract r 1000930 PaQe 15 of?1 TEXAS DEPARTNIENT OF HOUSING AlD CONl'MUidlTY AFFAIIZS HOINIE CONTRNCT # 1000930 EIHIBIT A PERFORIN1ANCE 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 dst funds t Eachahomebu~yer ass~ ed n usD A N D N O/ 1 0 0 D O L L A R S 8, 0 0 0. 0 0), i n a d m m i s t r atie fun 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 - _ll-be-based on the 0Y 1- zome6uY-ers.~er-forniance under t_he Contract ten-n _wl. ofTWENTY~2 following benchmarks from the Contract begin date: (A) 6 months, exempt administrative and environrriental clearance yriust be complete for at least- one Household to be assisted; (B) 12 months, environmental clearance must be complete for at least 50% of the Households to be assisted, 50% of funds must be comrnitted, 25% of funds drawn, and 25% of match supplied; (C) 18 inonths, enviroiunental clearance must be complete for at least 75% of the Households to be assisted, 75% of funds must be committed, 50% of funds drawn, and 500/o of matcli requirement supplied; and (D) 24 months, 100°ro of fulids must be comillitCed, 100% of funds drawn, and I 00% of matched supplied. Administrator shall provide HOME Homebuye~iA i~ce i inc for-ni oTt ocosts,nslaalldnot3exlceed Teu anlount for dowllpaylnent and closin~ cost as~ ~ Thousand and No/100 Dollars (S10,000.OC>). Each loan will be a zero percent (01/%) interest defen-ed forgivable loan. The loan ternl will be five (5) years based on the total amount of assistance provided and in accordallce %vith the federal affordability requirements as defined in 24 CFR §92.254. HOME Contract # 1000930 Pa~e 16 of 21 All loans to assisted homebuyers must be evidenced by loan documents provided by Department. Each loan to an assisted homebuyer must be payable to Department. Each loan for rehabilitation shall be evidenced by a constructioil loaii acreement, note, deed of trust, mechanic's lien note, aild mechanic's lien contract secured by the property and must be fully e\ecuted before any construetion activities commenee. 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. For~iveness of the loan balance is calculated based on a pro-rata annual share of the loan tern7. The anniversary date of the loan shall constitute completion of the yeernbep of la ofhhe not be waived. The amount due will be based on the pro-rata shar Yeas remaining loan term. the assisted homebuyer will pay the loan In the event the home is sold (voluntary or involuntary), 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 cthe aso stedd homebuyer a~ a acceptable to the Department, showing that no funds are due 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 balai7ce of the Department's Note in equal monthly installments over a five (5) year period. ZERO(0) of the TWENTY (20) assisted hoinebuyers 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 t~es l shall have the AMFI as required above, ZERO (0) of the TV~ ENTI' (,.0) assisted 1aomebu , incomes that are less than or equal to fifty percent (50°%) of the AMFI, as defined by HUD. HOlVIE Contract -4 1000930 Paoe 17 of 21 I~7 addition to the i11u11ber oi assisted honlebL~yzrs that ha~~e incomes les~s tlasisisted homebuyers and 50% of tlle AI~2FI as required abo~~e, ZERO (0) of tlle T~~'~ENT1 (-0) shall ha~-e incomes that are less than or equal to slxty percent (60;0) of theA1~~1FI, as deiii~ed by HUD. In addition to t11e ntllnber of assisted homebuyers that have incomes less than or equal to 30%, 50% a11d60°% of the AMFI as required above, TWENTY (20) of the TWENTY (20) assisted homebuyers sllall have incomes that are less than or equal to ei-hty percent (80%) of the AMFI, as defined by HUD. Administrator may use the funds provided under this contract to provide assistance to additional homebuyers once the ininimum 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. Stnand Each unit must, at a minimum, meet or exceed the Texas MinamWell as Constr-uction odas (TMCS) or Colonia Housmg Standards, if located in a Colonia, and zoning ordinances. For construction of single family affordable housing, Administrator must exas also ensure compliance with the universal design features establish §2306 of the Texas Government Code, the energy efficiency standards established by § 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), andlierwise approvedtby the Depapmen pating jurisdiction, as defined in 24 C.F.R. §9~.105, u less ot 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 contnbution must be submitted by Admimstrator upon request for disbursernenti of funds for each project assisted, in aceordance with 24 C.F.R. Part 92, the Department's HOME Rule, IIOME Proaram Match Guide, CPD Notiee 97-03 HOME Match Guidance and HOME Program Manual. HOfv1E Contract r I OOU9 ~0 Pa,-, e 18 of 21 AI9MINISTRATION administrator ma'V elpend funds provided under this contract for reasonable administrative and planning costs incurred directly~r~lated to this contract. HOMErfunds thah s~not more than four this contract and 24 C.F.R S9_._07 m an an~ount . percent (4%) or Eaght Thousand and No/100 Do9lars (S8,000.00) 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 incuned at the initial stage of the Contract, with the remaining ninery percent (90°/o) ftiuzded on a pro-rata basis, based on project fund disbursements. HOMEBUYER TRAINING PROGRANI Administrator must provide a Homeblryer Counselincy, 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 activiry relating to efforts rnade to auide recipients toward homeotivnership. HONTE Contract 't 10009 10 Pac~e 19 of 21 USING TE'X..-k~ ~~P-AR'~~ENT OF ONOE PRO G12A~1CO1@~L~TIdIT~' ::4~~5 HOME CONTR,~CT# 100Q930 EX1IIBIT S THE APpLgC.,~BLE LAW S A.ND REGUI.,AT'IONS CITY OF PARIS, A POLITICAL SUBDA'ISION OF THE S'TATE OF TEX.4S, Administrator shall comply with all federal, state, and localhis contract , ~nclutding bnpnotbimi edho activities and performances rendered by Administrator under t the laws and the regulations specified in Sections I through N of this Elhibit B. I. 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 env ironrnenta] effects of each activity carried out with HOMEc ~Act of 1969 (42 U S.C accordance with the provisions o f t he a t i o n a l E n v i r o n m e n t l y . seq.) and the related authorities list ed in HUD's implementing regulations at 24 C.F.R. §4321 et parts 50 and 58. IV, ACQUISITION/R~L<JCATION p pc uisition Policies Act of 1970, 42 U.S.C. The Uniform Relocation Assistance and Real Pro erty q §4201 - 4655 and 49 C.F.R. Part 24. HOIvfE Coniract 411000930 PaL,e 20 of 21 T~XAs ~EPARTMIENT OF HOtiSING A-ND CONTINTUNITY AFFAIR5 HpME CpNTR.AC'I' # 1000930 EXHIBIT C CERTIFICATION REGARI)IING LOBBNqNG FOR Cf}N'I'RA.CTS, G1ZA1v'I'S, LOANS, .AND COOPER4TIVE AGREEMEN'TS CITY OF PARIS, A POLI'i'ICAL SUBDIVISkON OF THE STATE OF TE?tAS, The undersigned certifies, to the best of its knowledge and belief, that: 1. No federal appropriated funds have been att m°tinl nflupenae an offi er or employee of undersigned, to any person for influencmg or pg to 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 agreernent, 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 - - - - - - connectiori wit~i tliis -~dera] con racf, gran ;-lon; or coop- era~ve agreemen"t,-t~ie unc~eTSigned - - - shall complete and submit standard form -LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 3. The undersigned shall require tl~at 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 ce; ification is mate:ial representation of fact on which reliance was olaced when this transaction was made or entered into. Submission of this certifi St~Code. a~ly person who failslto file the required this transaction imposed by section 1352, Title 31, U certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. CYTY OF PARIS, APOLITICAL SU IVI N THE STATE OF TEAAS, Bv: Kd'x',in Carrui,L~ City Manager Date: August 1 2008 HQME Contract k 100093 0 Paae 21 of 21