2009-073-RES-TDHCA Home ProgramRESOLUTION NO. 2009-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AND AUTHORIZIIIIG THE EXECUTION OF A PROFESSIONAL
MANAGEMENT SERVICES AGREEMENT WITH RESOURCE MANAGEMENT
AND CONSULTING COMPANY TO IMPLEMENT A CONTRACT
ADMINISTRATION SYSTEM UIVDER THE GENERAL DIRECTION OF THE
TEXAS DEPARTMENT OF HOUSING AND COMMUIVITY AFFAIRS FOR
TDHCA HOME PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBjECT; AND PROVIDING A11i EFFECTIVE DATE.
WHEREAS, the City of Paris is a participant in the Texas Department of Housing and
Community Affairs Home Funds Program and is a recipient of grants to provide
owner-occupied housing assistance for very low income families in the City of Paris; and,
WHEREAS, the City of Paris is in need of management services under the aforesaid
TDHCA HOME Program; and,
WHEREAS, the City of Paris has received a proposal for such services in an amount
not to exceed $15,000 from Resource Management & Consulting Company in the form
attached hereto as Exhibit A; and,
WHEREAS, it is deemed to be in the best interest of the City of Paris that the Ciry
enter into a professional services agreement with Resource Management Consulting
company;
1VOW, 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 proposal of Resource Management and Consulting Company
to implement a contract administration system under the general direction of the TDHCA
and for certain services in connection with the Owner-Occupied Housing Assistance Project
for the City of Paris as set forth in Exhibit A attached hereto, be and the same is hereby
accepted; and,
Section 3. That the City Manager be, and he is hereby authorized and directed to
negotiate a professional services agreement with Resource Management & Consulting
Company in accordance with the proposal attached hereto as Exhibit A, but subject to final
review and approval by the City Attorney and any and all other necessary documents to
effectuate this Agreement.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of July, 2009.
ATTEST:
nice Ellis, City Clerk
APPROVED AS TO FORM:
~
W. K e n t c yar, C ty At > rney
-,4,A Z-,
J sse Jame reelen, Mayor
PROFESSIONAL MANAGEMENT SERVICES
PART 1- AGREEMENT
THIS AGREEMENT, entered into this 13th day of July, 2009 by and between the CITY OF PARIS,
hereinafter called the "City", and Resource Management & Consulting Co. 200 North Collegiate, Paris,
Texas 75460, hereinafter called "Firm".
WITNESSETH THAT:
WHERES, the City of Paris desires to implement a contract administration system under the
general direction of the TDHCA HOME program; and
WHEREAS, the City desires to engage Resource Management & Consulting Co. to render certain
professional and administrative services in connection with its Owner-Occupied Housing Assistance
Project, HOME Program Contract #1001053.
NOW THEREFORE, the parties do mutually agree as follows:
Part II, Scope of Services, Part III Terms and Conditions and Part IV Home Program Contract No.
1001053 are hereby incorporated by reference into this Agreement.
2. Time of Performance - The services of Resource Management & Consulting Co. shall commence on
the day this Agreement is executed. In any event, all of the services required and performed
hereunder shall be completed at the close of the City's TDHCA Contract.
Access to Information - It is agreed that all information, data reports and records and maps as are
existing, available and necessary for the carrying out of the work outlined above shall be furnished to
Resource Management & Consulting Co. by the City and its agencies. No charge will be made to
Resource Management & Consulting Co. for such information and the City and its agencies will
cooperate with Firm for such information and every way possible to facilitate the performance of the
work described in the contract.
4. Compensation and Method of Pavment - Compensation and reimbursement for professional and
administrative services to be paid hereunder shall be in the amount not to exceed the available
administration budget of $15,000. Payment to Resource Management & Consulting Co. shall be
based on satisfactory pertormance of identified activities in Part II - Scope of Services for general
administration and performance of all terms, conditions and requirements contained in the TDHCA
HOME Program Contract #1001053 (attached hereto and incorporated herein as Part IV to this
Agreement.) City shall pay Firm for additional services requested in writing by the City, at hourly
rates upon request, for services rendered by principals and employees assigned to perform such
services. Soft costs, not included in the administration budget, shall not exceed 10% of construction
costs.
5. Independent Contractor Firm covenants and agrees that Firm is an independent contractor and not
an officer, agent, servant or employee of City; that Firm shall have exclusive control of and exclusive
right to control the details of the work performed hereunder and all persons performing same, and
shall be responsible for the acts and omissions of its officers, agents, employees, contractors,
subcontractors and Firm; that the doctrine of respondeat superior shall not apply as between City and
Firm, its officers, agents, employees, contractors, subcontractors and Firm, and nothing herein shall
be construed as creating a partnership or joint enterprise befinreen City and Firm.
6. Insurance Requirements Firm agrees to meet all insurance requirements set out below, and to
require all subcontractors and/or subconsultants who perform work on this Project to meet these
insurance requirements as well:
EXHIBIT -L
Firm shall maintain insurance for this Project in accordance with the following required coverages
and limits, and shall furnish a copy of said policies or properly executed Accord Certificates to the
City upon execution of this Agreement and throughout the contract term. The City of Paris, its
elected officials, officers and employees shall be included and covered as Additional Insured's on
all policies listed below except the Professional Liability and Workers Compensation policies. All
insurance policies shall be issued by properly funded and capitalized insurance companies
authorized and licensed to write insurance policies in the State of Texas:
General Commercial Liability $500,000 per occurrence/$1,000,000 aggregate
Professional Liability $1,000,000 perclaim and in the aggregate
Workers Compensation State required minimum limits
Indemnification Firm hereby agrees to release, defend, indemnify and hold the City and its elected
officials, officers, agents and employees harmless from and against all damages, injuries (including
death), claims, property damages (including loss of use), losses, demands, suits, judgments and
costs, including reasonable attorney's fees and expenses, in any way arising out of, related to, or
resulting from the services provided by Firm pursuant to this Agreement, but only to the extent
caused by the negligent act or omission or intentional wrongful act or omission of Firm, its officers,
agents, employees, subcontractors, subconsultants, licensees, invitees or any other third parties for
whom Firm is legally responsible (hereinafter "Claims"). Firm is expressly required to defend City
against all such claims and/or lawsuits.
8. Miscellaneous Provisions
a. This agreement shall be construed under and in accordance with the laws of the State of Texas,
and all obligations of the parties created hereunder are performable in Lamar County, Texas and
the parties agree that exclusive venue for any claims or suits related to this Agreement shall lie in
Lamar County, Texas.
b. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, legal representatives, successors and assigns where
permitted by this Agreement.
c. In case one or more of the provisions contained in this Agreement shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision thereof and this Agreement shall not be construed as if such
invalid, illegal, or unenforceable provision had never been contained herein.
d. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary
disbursements in addition to any other relief to which such party may be entitled.
e. This Agreement may be amended by mutual agreement of the parties hereto and a writing to be
attached to and incorporated into this Agreement.
f. If any conflict arises between the terms of this Agreement and any Parts/Exhibits attached hereto,
the terms of this Agreement shall control.
IN WITNESSETH HEREOF, the parties have hereunto set their hand and seals on this _ day of
July, 2009.
CITY OF PARIS
BY:
Kevin Carruth, City Manager
ATTEST:
RESOURCE MANAGEMENT & CONSULTING CO.
BY:
ATTEST:
Charles Edwards, Owner
Janice Ellis, City Clerk Witness
PART II
SCOPE OF SERVICES
TDHCA HOME PROGRAM CONTRACT N0.1001053
Resource Management & Consulting Co. (RMCC) shall provide the following scope of services;
A. Project Administration/Contract Manaqement
1. Develop a recordkeeping system consistent with program guidelines, including the
establishment of a filing system.
2. Maintenance of filing system.
3. Provide general advice and technicai assistance to Administrator's personnel on
implementation of project and regulatory matters.
4. If requested, assist in the procurement of construction services through a sealed bid process,
if applicable, and as required by the HOME program guidelines.
5. Furnish the Administrator with necessary forms and procedures as required to implement
projects under the HOME contract.
6. Assist the Administrator in meeting all special condition requirements that may be stipulated
in the contract between the Administrator and TDHCA.
7. Prepare and submit to TDHCA all documentation necessary for amending the HOME
contract, as applicable.
8. Conduct environmental clearance procedures as required.
9. Prepare and submit Project Set-up, Project Completion, HUB and other required reports.
10. Establish procedures to document expenditures associated with local administration of the
project.
11. Serve as liaison for the Administrator during any review or monitoring visit by staff
representatives from either the Texas Department of Housing and Community Affairs
(TDHCA), or the U.S. Department of Housing and Urban Development (HUD).
B. Financial Manaqement
Assist the Administrator in proving its ability to manage the grant funds to the state's audit
division.
2. Assist the Administrator in establishing and maintaining a Direct Deposit bank account and/or
separate local bank account, journals, and ledgers.
3. Assist the Administrator in submitting the required Direct Deposit Authorization Form, the
Texas Application for Payee Identification Number, the Identification of Contract Administrator
form and any other forms as required by TDHCA.
4. Prepare all fund drawdowns on behalf of the Administrator in order to ensure orderly, timely
payments to all contracting parties within the allotted time period.
5. Review invoices received for payment and file back-up documentation.
6. Provide general advice and technical assistance to Administrator's personnel regarding
implementation of project and regulatory matters.
7. Assist the Administrator to establish procedures to handle the use of any HOME program
income as necessary.
C. Environmental Clearance Procedures
1. Pertorm environmental assessment procedures and prepare documentation as necessary.
2. Coordinate environmental clearance procedures with other federal or state agencies and
interested parties responsible for implementing applicable laws.
3. Document consideration of any public comments.
4. Prepare any required re-assessment of environmental assessment and/or documentation as
necessary.
D. Construction Manaqement (if required for Davis-Bacon compliance)
1. Assist Administrator in documenting compliance with all federal and state requirements
related to equal employment opportunity.
2. Assist Administrator in documenting compliance with all federal and state requirements
related to minimum wage and overtime pay requirements.
3. If required, provide assistance to or act as local labor standards officer. Notify TDHCA in
writing of name, address, and phone number of appointed labor standards compliance
officer.
4. If required, request wage rates from TDHCA.
5. Advertise for bids.
6. Make ten-day call to TDHCA.
7. Verify construction contractor eligibility with TDHCA.
8. Review Construction Contract.
9. Conduct pre-construction conference and prepare reports as necessary.
10. Submit any reports of additional classification and rates to TDHCA.
11. Issue Start of Construction Notice to TDHCA.
12. Review weekly payrolls, including compliance follow-ups, and conduct employee interviews.
13. Process and submit change orders to TDHCA prior to execution.
14. Obtain Final Wage Compliance Report and submit to TDHCA.
15. Provide general advice and technical assistance to Administrator's personnel on
implementation of project and regulatory matters.
E. Owner Occupied Rehabilitation/Reconstruction Assistance - OCC
1. Prepare and submit local rehabilitation guidelines, policies and procedures, and work write-
ups for all projects to TDHCA for approval.
2. Develop affirmative marketing plan, outreach and necessary application
processing/verification forms.
3. Screen applicants for program qualification.
4. Screen homes for feasibility.
5. Conduct lead-based paint assessment.
6. Inform all applicants as to eligibility and prepare HOME contract for qualified appiicants.
7. Prepare work write-ups and cost estimates.
8. If requested, assist homeowners in the procurement of contracted construction services.
9. Conduct homeowner pre-construction conference and prepare documentation.
10. Issue Notice to Proceed to construction contractor(s).
11. Ensure that all construction activities meet or exceed Texas Minimum Construction
Standards.
12. Conduct interim/final inspection, process final contract documents, and maintain a record of
beneficiaries.
13. Maintain client files following TDHCA requirements.
14. Mange dispute resolution process as required.
F. Homebuyer Assistance and American Dream Downpavment Initiative
1. Prepare and submit local rehabilitation guidelines, policies and procedures, and work write-
ups for all projects to TDHCA for approval.
2. Develop affirmative marketing plan, outreach and necessary application
processing/verification forms.
3. Screen applicants for program qualification.
4. Screen homes for compliance with the Texas Minimum Construction Standards.
5. Conduct lead-based paint assessment.
5. Inform all applicants as to eligibility and prepare HOME contract for qualified applicants.
6. Conduct or assist with acquisition of hom-ebuyer education.
7. Assist lender with completion of second lien documents and ensure their timely submission to
TDHCA.
9. Ensure that all construction activities meet or exceed Texas Minimum Construction
Standards.
10. Conduct interim/final inspection, process final contract documents, and maintain a record of
beneficiaries.
11. Maintain client files following TDHCA requirements.
12. Manage dispute resolution process as required.
G. Fair Housing/Equal Opportunitv
Assist the Administrator in developing, implementing and documenting new activities to
affirmatively further fair housing activities during the contract period.
2. Maintain documentation of all project beneficiaries by ethnicity and gender.
3. Prepare Section 3 and Affirmative Marketing Plan.
4. Perform all Section 504 requirements and prepare documentation as necessary.
5. Provide all applicable equal opportunity provisions and certifications for inclusion in bid
packet.
H. Audit/Close-out Procedures
1. Prepare the final Project Completion Report, including Historically Underutilized Businesses
(HUB) report and Certificate of Completion.
2. Assist Administrator in resolving any review, monitoring and/or audit findings.
3. Assist Administrator in resolving any third party claims.
4. Provide auditor with HOME audit guidelines.
THE ABOVE SCOPE OF WORK IS INTENDED TO IDENTIFY THE MAJOR ELEMENTS ASSOCIATED
WITH THE MANAGEMENT AND IMPLEMENTATION OF PROJECTS UTILIZING TEXAS
DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS -HOME PROGRAM FUNDS. IT IS OUR
INTENTION AND PRACTICE TO PROVIDE OUR CLIENTS WITH ALL NECESSARY AND REQUIRED
ASSISTANCE TO SUCCESSFULLY COMPLETE THE PROGRAM MANAGEMENT ASPECT OF THEIR
PROJECT.
PART III
TERMS AND CONDITIONS
Termination of Contract for Cause. If, through any cause, the Firm shall fail to fulfill in a timely and
proper manner his/her obligations under this Contract, or if the Firm shall violate any of the
covenants, agreements, or stipulations of this Contract, the City/County shall thereupon have the
right to terminate this Contract by giving written notice to the Firm of such termination and
specifying the effective date thereof, at least five days before the effective date of such termination.
In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps,
models, photographs and reports prepared by the Firm under this Contract shall, at the option of
the City/County, become its property and the Firm shall be entitled to receive just and equitable
compensation for any work satisfactorily completed hereunder.
Notwithstanding the above, the Firm shall not be relieved of liability to the City/County for damages
sustained by the City/County by virtue of any breach of the Contract by the Firm, and the
City/County may withhold any payments to the Firm for the purpose of set-off until such time as the
exact amount of damages due the City/County from the Firm is determined.
Termination for Convenience of the City/Countv. The City/County may terminate this Contract at
any time by giving at least ten (10) days notice in writing to the Firm. If the Contract is terminated by
the City/County as provided herein, the Firm will be paid for the time provided and expenses
incurred up to the termination date. If this contract is terminated due to the fault of the Firm,
Paragraph 1 hereof relative to termination shall apply.
3. Chanqes. The City/County may, from time to time, request changes in the scope of the services
of the Firm to be performed hereunder. Such changes, including any increase or decrease in the
amount of the Firm's compensation, which are mutually agreed upon by and between the
City/County and the Firm, shall be incorporated in written amendments to this Contract.
4. Personnel.
The Firm represents that he/she has, or will secure at his own expense, all personnel
required in performing the services under this Contract. Such personnel shall not be
employees of or have any contractual relationship with the City/County.
b. All of the services required hereunder will be performed by the Firm or under his/her
supervision and all personnel engaged in the work shall be fully qualified and shall be
authorized or permitted under State and Local law to perform such services.
c. None of the work or services covered by this Contract shall be subcontracted without the
prior written approval of the City/County. Any work or services subcontracted hereunder shall
be specified by written contract or agreement and shall be subject to each provision of this
Contract.
5. Assiqnabilitv. The Firm shall not assign any interest on this Contract, and shall not transfer any
interest in the same (whether by assignment or novation), without the prior written consent of the
City/County thereto: Provided, however, that claims for money by the Firm from the City/County
under this Contract may be assigned to a bank, trust company, or other financial institution
without such approval. Written notice of any such assignment or transfer shall be furnished
promptly to the City/County.
6. Reports and Information. The Firm, at such times and in such forms as the City/County may
require, shall furnish the City/County such periodic reports as it may request pertaining to the
work or services undertaken pursuant to this Contract, the costs and obligations incurred or to be
incurred in connection therewith, and any other matters covered by this Contract.
7. Records and Audits. The Firm shall insure that the City/County maintains fiscal records and
supporting documentation for all expenditures of funds made under this contract in a manner which
conforms to OMB Circular A-87, Section 570.490 of the Regulations, and this Contract. Such
records must include data on the racial, ethnic, and gender characteristics of persons who are
applicants for, participants in, or beneficiaries of the funds provided under this Contract.
City/County shall retain such records, and any supporting documentation, for the greater of three
years from closeout of the Contract or the period required by other applicable laws and regulations.
8. Findinqs Confidential. All of the reports, information, data, etc., prepared or assembled by the Firm
under this contract are confidential and the Firm agrees that they shall not be made available to any
individual or organization without the prior written approval of the City/County.
9. Copyright. No report, maps, or other documents produced in whole or in part under this Contract
shall be the subject of an application for copyright by or on behalf of the Firm.
10. Compliance with Local Laws. The Firm shall comply with all applicable laws, ordinances and codes
of the State and local governments, and the Firm shall save the City/County harmless with respect
to any damages arising from any tort done in performing any of the work embraced by this
Contract.\
11. Equal Emplovment Opportunitv. During the performance of this Contract, the Firm agrees as
follows:
a. The Firm will not discriminate againsk any employee or applicant for employment because of
race, creed, sex, color, handicap or national origin. The Firm will take affirmative action to
ensure that applicants are employed, and that employees are treated during employment,
without regard to their race, creed, sex, color, handicap or national origin. Such action shall
include, but not be limited to, the following: Employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The Firm agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be
provided by the City/County setting forth the provisions of this non-discrimination clause.
b. The Firm will, in all solicitation or advertisements for employees placed by or on behalf of the
Firm, state that all qualified applicants will receive consideration for employment without
regard to race, creed, color, sex, handicap or national original.
c. The Firm will cause the foregoing provisions to be inserted in all subcontracts for any work
covered by this Contract so that such provisions will be binding upon each subcontractor,
provided that the foregoing provisions shall not apply to contracts or subcontracts for
standard commercial supplies or raw materials.\
d. The Firm will include the provisions a. through c. in every subcontract or purchase order
unless exempted.
12. Civil Rights Act of 1964. Under Title VI of the Civil Rights Act of 19964, no person shall, on the
grounds of race, color, or national origin, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under any program or activity receiving Federal financial
assistance.
13. Section 109 of the Housinq and Communitv Development Act of 1974.
No person in the United States shall on the ground of race, color, national origin, or sex 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 made available under this
title.
14. "Section 3" Compliance in the Provision of Traininq Emplovment and Business Oqportunities.
The work to be performed under this contract is on a project assisted under a program
providing direct Federal financial assistance from the Department of Housing and Urban
Development and is subject to the requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701 u. Section 3 requires that to the
greatest extent feasible opportunities for training and employment be given lower income
residents of the project area and contracts for work in connection with the project be awarded
to business concerns which are located in, or owned in substantial part by person residing in
the area of the project.
b. The parties to this contract wilt comply with the provisions of said Section 3 and the regulations
issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24
C.F.R. 235, and all applicable rules and orders of the Department issued thereunder prior to the
execution of this Contract. The parties to this Contract certify and agree that they are under no
contractual or other disability which would prevent them from compiying with these
requirements.
c. The contractor will send to each labor organization or representative of workers with which
he/she has a collective bargaining agreement or other contractor understanding, if any, a notice
advising the said labor organization or workers' representative of his/her commitments under
this Section 3 clause and shall post copies of the notice in conspicuous places available to
employees and applicants for employment or training.
d. The contractor will include this Section 3 clause in every subcontract for work in connection with
the project and will, at the direction of the applicant for or recipient of Federal financial
assistance, take appropriate action pursuant to the subcontract upon a finding that the
subcontractor is in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 C.F.R. Part 135. The contractor will not subcontract with any subcontractor
where it has notice or knowledge that the latter has been found in violation of regulations under
24 C.F.R. Part 135 and will not let any subcontract unless the subcontractor has first provided it
with a preliminary statement of ability to comply with the requirements of these regulations.
e. Compliance with the provisions of Section 3, the regulations set forth in 24 C.F.R. Part 135, and
all applicable rules and orders of the Department issued hereunder prior to the execution of the
contract, shall be a condition of the federal financial assistance provided to the project, binding
upon the applicant or recipient for such assistance, its successors and assigns. Failure to fulfill
these requirements shall subject the applicant or recipient, its contractors and subcontractors,
its successors and assigns to those sanctions specified by the grant or loan agreement or
contract through which federal assistance is provided, and to such sanctions as are Specified
by 24 C. F. R. Part 135.
15. Section 503 Handicapped (if $2 500 or Over) Affirmative Action for Handicapped Workers.
a. The contractor will not discriminate against any employee or applicant for employment
because of physical or mental handicap in regard to any position for which the employee or
applicant for employment is qualified. The contractor agrees to take affirmative action to
employ, advance in employment and' otherwise treat qualified handicapped individuals
without discrimination based upon their physical or mental handicap in all employment
practices such as the following: Employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, and selection
for training, including apprenticeship.
b. The contractor agrees to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued pursuant to the Act.
c. In the event of the contractor's non-compliance with the requirements of this clause, actions
for non-compliance with the requirements of this clause, actions for non-compliance may be
taken in accordance with the rules, regulations, and relevant orders of the Secretary of labor
issued pursuant to the Act.
d. The contractor agrees to post in conspicuous places, available to employees and applicants
for employment, notices in a form to be prescribed by the Director, provided by or through the
contracting officer. Such notices shall state the contractor's obligation under the law to take
affirmative action to employ and advance in employment qualified handicapped employees
and applicants for empioyment, and the rights of appiicants and employees.
e. The contractor will notify each labor union or representative of workers with which it has a
collective bargaining agreement or other contract understanding, that the contractor is bound
by the terms of Section 503 of Rehabilitation Act of 1973, and is committed to take affirmative
action to employ and advance in employment physically and mentally handicapped
individuals.
f. The contractor will include the provisions of this clause in every subcontract or purchase
order of $2,500 or more unless exempted by rules, regulations, or orders of the Secretary
issued pursuant to Section 503 of the Act, so that such provisions will be binding upon each
subcontractor with respect to any subcontract or purchase order as the Director of the Office
of Federal Contract Compliance Programs may direct to enforce such provisions, including
action for non-compliance.
16. Interest of Members of a Citv/Countv. No member of the governing body of the City/County and not
other officer, employee, or agent of the City/county who exercises any functions or responsibilities
in connection with the planning and carrying out of the program, shall have any personal financial
interest, direct or indirect, in this Contract and the Firm shall take appropriate steps to assure
compliance.
17. Interest of Other Local Public Officials. No member of the governing body of the locality and no
other public official of such locality, who exercises any functions or responsibilities in connection
with the planning and carrying out of the program, shall have any personal financial interest, direct
or indirect, in this Contract; and the Firm shall take appropriate steps to assure compliance.
18. Interest of Firm and Emplovees. The Firm covenants that he/she presently has no interest and shall
not acquire interest, direct or indirect, in the study area or any parcels therein or any other interest
which would conflict in any manner or degree with the performance of his/her services hereunder.
The Firm further covenants that in the performance of this Contract, no person having any such
interest shall be employed.
PART IV
TEXAS DEP ARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM CONTR4CT 410010-53
ONN'NER OCCUPIED HOUSING ASSISTANCE
FIRST AMENDMENT
CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRA.M
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M 07 SG 48-0100
Award Year: 2008
HUD Entity Type: State Recipient
The TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFA.IRS, 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 ab ee
and identified
to amend the original contract by and between the parties, effective ,
on Department's records as HOME Contract 41001053 (Contract).
Recitals
WHEREAS Administrator wishes to subject the Contract to all of the provisions of the 2009
HOME Program Rule, 10 TAC §53 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 l, Contract Period, Section 2,
Administrator Performance, Section 3A, Department Obligations, Section 22, Special
Conditions, and Exhibit A- Performance Statement; and
WHEREAS the Parties agree that the most efficient method for adapting the Contract to the
provisions 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;
NOW THEREFORE the Parties aggree as follows:
Section 1
The terms and provisions of the Contract are hereby replaced in their entirety with the terms and
provisions attached hereto, as Attachment 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 tenns shall
become a part of the Contract as if they were set forth word for word therein. This First
Anlendment shall be binding upon the Parties hereto and their respective successors and assigns.
Section Z
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 DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
By:
Name: Michael Gerber
Title: Executive Director
Date:
CITY OF PARIS,
A POLITICAL SUB4A'ISIO
By.
Name: Kevin Carruth
Title: City Manager
THE STATE OF TEXAS
Date: /oi /'q1
ATTACHMENT A
HOME Contract 4I001053
Page 2 of 21
TEXAS DEPARTMENT OF HOUSING ? ND COM1I,IUNITY AFFAIRS
HOME PROGR41\7
HOME CONTRACT # 1001053
ATTACHMEllT A
TERN2S AND CONDITIONS
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-07 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 PA.RIS, 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 oblilgations and to the
performance and accomplishment of the tasks which are the substance of this contract.
SECTION 1. CONTRACT PERIOD:
and shall terniinate on
This contract shall be effective and commence on
unless otherwise specifically provided herein ("Contract Period").
SECTTON 2. ADMINISTRATOR PERFORMANCE:
Administrator a~rees 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 Novernber 13, 2008, the HOME
Program Manuals ("HOME Manual") and the Application and Application Submisslon
Procedures Manual. Adzninistrator agrees to perform all activitles in accordance with the terms
of the Performance Statement and Budget attached hereto as Exhibit A; the Applicable Laws and
Rec-yulations attached hereto as Exhibit B; the Certifications attached hereto as Exhibit C; all such
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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 hereln set forth.
SECTION 3. DEPARTMENT OBLIGATIONS
A. Department shall be obligated to pay actual and reasonable costs incurred by
Administrator, durinj 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 zneet 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. Departrnent shall not be obligated to pay to Administrator for any costs incurred
by Adrninistrator, 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. Departrnent shall not be obligated to pay to Administratar 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. 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) andlor 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, 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.
the total of all
B. Not withstanding any other provision of this contract to the contrary,
payments and other oblioations incuned by Department under this contract shall not
exceed the sum ~ Ef wHUN hDhFIFTEENYTHOUSAND AND NO/100
DOLLARS ($39 ,000.00), o
DOLLARS, (S15,000.00) is for Administrative expenses.
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SECTION 4. DISBURSEMENT OF FUNDS
A. Before the effective date of the HOME Contract, the Contract Adzninistrator may incur
and be reimbursed for travel costs, as provided for with Admillistrative funds, related to
mandatory implementation training required by the Department as a condition of
receiving a HOME a~vard 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. 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.
Adininistrator 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 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 acknowledces 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.
D. 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 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 coinmitment 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 closin-, does not occur 180 days prior
thereto.
SECTION 5. UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES AND PROGR.AM INCOME
A. If Administrator is a govemmental entity, Administrator shall comply with the
requirements of OMB Circular No. A-87; the requirements of 24 C.F.R. Part 85 as
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applicable, and the Unifonii Grant ManaQement Standards, Chapter 783 Texas
Government Code, tmless otherwise specified in this contract•ministrator sall comply
B. If Administrator is a non-profit or for-profit orQanization, Ad
with requirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84
unless otherwise specified in this contract.
C. Administrator may not retain program income or Community Housina Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of program income to fund other eligib'le HOME activitles.
Administrator shall comply with the requirements of 24 C.F.R. §92.503 to account for
prob am 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, Administrator 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 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 coverage and policy endorsements are cunent 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. §92•203•
B. Administrator agrrees that Department, HUD, the Auditor of the State of Texas, the
United States General Accountin-, 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:
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l. If any litigation, claim, neQotiation, audit, monitonn~, inspection or other action
has started before the eapiration of the required record retention period records
must be retained until completion of the action and resolution of all issues which
anse from it, or until the end of the required penod, whichever is later.
2. Records covering 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 proiect have received the final
payinent to which they are entitled in accordance with 24 C.F.R. Part 92.
3. Far 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 subrnit 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
para~raph 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 Department
regarding program activities to evidence pro~ress of performance in accordance with the
requirements of the Act, 10 TAC §53 and contained in the Performance Statement and
Budget (Exhibit A).
ATTACHMENT A
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SECTION 8. -MONITORING
Department reserves the nLyht 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 momtor's findings. If the
monitoring reports note deficiencies in Administrator's performance under the tenns of this
contract, the monitorin; report shall include requii-ements for the timely correchon of such
deficiencies by Administrator. Failure by Administrator to take the action specified in the
monitonncy 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 training, as required by
Department, including Contract Administration Training, 15T Thursday Income Eligibility
Training, and other HOME Prob am workshops.
SECTION 9. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the Parties hereto that Department is contractin~ with
Administrator as an independent contractor, and that Administrator, as such, ab ees to hold
Department harmless and to the extent allowed by law indemnify Department from and aQainst
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 ~~ay incident to, arising out of, or in connection
with the services to be performed by Administrator under this contract.
SECTION 10. SUBCONTRA.CTS
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 subeontracting for any activities described in this contract,
expressly understands that in entering into such subcontracts, Deparhnent 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 cornply with all applicable federal, state, and local laws, regulations,
and ordinances for making procurements under this contract. Administrator shall ensure
compliance with the requirernents of 24 C.F.R. §§84.40 - 84.48 (if Administrator is a
nonprofit oraanization) 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
HtJD the authonty to directly review, monitor, and/or audit the operational and financial
ATTACHMENT ,A
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performance ancllor records of work performed under this Contract by any third-party,
including subcontractors, contractors and consultant or servlce provider.
E. Administrator shall include in any subcontracts that failure to adequately perform under
this Contract may result in penalties up to and including Debarment from performina
additional work for the Department.
SECTION 11. CONFLICT 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 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
ab eeinent (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 a~ent 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 downpayrnent 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 gounds of race, color, religion,
sex, handicap, familial status, or national ori~in, 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 perfonnances 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 activity, such as worship, religious Instruction, or
proselytization. Administrator shall comply with the re~ulations promulgated by the U.S.
Department of Housing 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. 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 eaecuting 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 Adrninistrator 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
debaned, suspended, proposed for debarment, or placed on ineligibility status by U. S.
Department of Housing and Urban Development andlor 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 II[JD or the Department. Admimstrator
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 immediately to
Department copies of all pertinent papers received by Administrator with respect to such
action or clailn.
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 wntin-, and executed by both parties to
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this contract. 4n executed faesimile copy will be sufficient to evidence the Parties
agreenlent to any amendment, revision or change to this contract.
B. It is understood and agreed by the Parties hereto that performance of all activities under
this contract must be rendered in accordance with the Act, the state and federal
regulations proinulo-ated under the Act, the assurances and certifications made to
Department by Administrator, and the assurances and certifications made to the United
States Department of Housina 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 perfonnance requirements under this contract.
C. Any changes, additions, or deletions to the terms of this contract which are required by
chan-es in federal or state law, or re-ulations, 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.
SECTTON 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 Administratar from incumnc, additional obligations
for funds under this contract_ Administrator acknowledges that it does not have a right to
suspension as a pre-requisite to terrnination.
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 a federal statute or
regulation, or with any assurance -iven 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 written notification to Administrator of the deficiency
and the period within which Administrator must comply;
4. accept Adrninistrator'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 ac-,reement to sunender all rights to
remaining funds;
5. withhold further HOME awards from Administrator, and/or affiliated Parties;
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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 Admin1strator has not achieved substantial
pro'gess within six (6) months of the effective date of this Contract or has failed to meet
any perfonnance benchmark, this Contract may he 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, 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 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:
l. 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 ab eements, 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 anythino, 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 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
perforn7ed 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
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rendered under this contract. Administrator agrees to permit Departmeilt, 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 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. Adzninistrator further understands and agrees that reimbursement to
Department of such disallowed costs shall be paid by Administrator from funds which
were not provided ar otherwise made available to Administrator under this 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 REQUIREM[ENTS
A. The environmental effects of each activity carried out with funds pzovided 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 comrnitted 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
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 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
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 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
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E~~ier~ency ManaQement Agency (FEMA) as having special flood hazards, unless the
locality in ~vhich the site is located is participatintr in the National Flood Insurance
Program (~]FIP) 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 comrnitment.
Administrator must determine if the locality participates in the NFIP dunng the
preliminary stages of the environmental clearance process.
SECTI0N 20. AFFIRAZATIVE MARKETING
Administrator shall adopt affirmative marketinc., 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. 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 involvinb their employment shall be
subj ect 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 Housin9 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)(fl, Administraior shall
repay the amount of the public subsidy as stated under Section 3.13. of this Contract with
interest, at the rate of 5°/o per annum, not later than the 120th 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 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 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
ATTACHMENT A
HOME Contract 41001053
Page 14 of 21
is liable and a~rees to repay an amount specified by Department for each housin~ 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 fhis contract to anyone, the resultinQ 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 oriainal documents, duly certified as to recordation by the appropriate
county official, to Department. Receipt of such certified recorded onginal 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. Airy 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 andlor 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 ab eements 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 promised performances under this contract:
1. Exhibit A, Performance Statement and Budget
2. Exhibit B, Applicable Laws and Regulations
3. Exhibit C, Certification Regarding Lobbyin~
SECTION 24. VENUE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
ATTACHMENT A
HOME Contract #1001053
Page 15 of 21
SECTION 25. COMPLIANCE WITH FEDERAL, STATE. AND LOCAL LANN'
Administrator shall coniply 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 Lmder tlzis contract. Upon request by Department,
Administrator shall fiirnish 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, Humcane Katrina, or
any other disaster occumng after September 24, 2005. By executing this Contract, the
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 certification is
inaccurate."
ATTACHMENT A
HOME Contract #1001053
Page 16 of 21
TEX.4S DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME CONTRACT # 1001053
EXHIBIT A
PERFORMANCE STA'TEMENT AND BUDGET
CITY OF PARIS,
A POLITICAL SUBDIVISION OI' 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,
''na or 3rd lien loan. The maximum amount of assistance is the total of construction costs and soft
costs provided to an eli~ible household, the total construction costs are limited to:
ATTACHMF,NT A
HOME Contract # 100 ] 053
Page 17 of 21
l. Rehabilitation that is Reconstruction: The lesser of S73.00 per square foot or
SE0,000, if the reconstruction includes actual costs for an aerobic septic system and/or
demolition. If the reconstruction includes costs for an aerobic septic systern and/or
denlolition, the total construction costs cannot exceed S73.00 per square foot
eaclusive of the aerobic septic system and demolition costs; and
2. rehabilitation that is not reconstruction: $30,000.
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
§5331 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 thirty
percent (30%) and less than or equal to fifty percent (50%) of the AMFI, as defined by
HUD.
3. Twenty-year deferred, forbivable 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
I IU-D .
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 §92254.
For households whose incorne is at or below thirty percent (30%) of the area rnedian 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 eli-ibility 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.
F,rrAc14n1r.XT n
HOME Contract # 1001053
Page 18 of 21
If at any time prior to the full loan period there occurs a sale of the property, the unit ceases to be
the assisted homeo~,vner's principal residence or default occurs, the loan shall become due and
p ayable.
In the event of refinance of any superior lien, at Department's discretion one of the followinlc,
options will apply:
l. re-subordination of the Note if the assisted homeowner can provide documentation,
acceptable to the Departinent, showing that no funds are due the assisted homeowner as a
result of the refinance; or
2. the assisted homeowmer will pay 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 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 funds must be submitted to and approved by the Departrnent no later than 240
days prior to the end of the Contract Period and the loan must close no later than 180 days prior
to the end of the Contract Period.
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 HCJD•
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 less than or equal to sixty percent (60%) of the AMFI, as defined by HiJD.
hi addition to the number of assisted homeowners that have incomes less than or equal to 30°/o,
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 eiglIty 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°/o)
of the AMFI, as defined by H[.JD, and all other requirements are met.
qTTAC'HMENT A
HOME Contract #1001053
Paae 19 of 21
Each unit must, at a minimuzn, meet or exceed the Texas Minimum Constniction Standards
(TMCS) as well as local building c.odes and zoninQ ordinances. If a home is reconstructed,
Administrator must also ensure compliance with the universal design features for construction of
single family affordable housin~, established by 52306.~14 of the Texas Government Code, the
energy efficiency standards established by 52306.187 of the Texas Government Code, energy
standards as verified by a RESCHECK certificatton, and the Internatlonal Residential Codes, as
required by Subchapter G, Chapter 214, Local Goverrunent Code.
Administrator is limited 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 defined in 24 C.F.R. §92.105, unless othervrise approved by
Department.
MATCH
Administrator will provide match fiznds 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 Program Rule, HOME Program Match Guide, CPD Notice 97-03
HOME Match Guidance and HOME Progam 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 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 Administrative 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 (includinc, pre-award costs) incurred at the initial stacye of the Contract, with
the remaining ninety percent (90%) funded on a pro-rata basis, based on project fund
disbursements.
ATTACIIMF-NT
HOME Contract #1001053
PaSe 20 of 21
TEXAS DEPARTMENT OF HOUSING AND COb2MUNITY AFFAIRS
HOME PROGRAM
HOME CONTRA.CT # 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.
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
IL LEAD-BASED PA.INT
Lead-Based Paint Poisonina Prevention Act, 42 U.S.C. §4821 et seq. and 24 C.F.R. Part 35
III. ENVIRONlu1ENTAL 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.
n'M'AcI In1ENT A
HOME Contract #1001053
Paae2] of2]
TE~.4S DEPARTNIENT 4F HOUSING AND COMMUNITY AFF4IRS
HOME PROGRAM
HOME CONTRACT # 1001053
WITI3
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEX.AS
CFDA 14.239 HOME INVESTMENT PARTNERSHLPS PROGRAM
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M-07-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 I)EPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas,
hereinafter referred to as "Department," and CITY OI' 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; all such
Exhibits incorporated herein for all relevant purposes; the assurances, certifications, and all other
staternents made by Administrator in its application for the project funded under this contract;
and with all other terms, provisions, and requirements herein set forth.
statements made by Administrator in its applicatioll for the project funded under tlus contract;
and with all other ternls, provisions, and requirements herein set forth.
SECTION 3. DEPARTMENT OBLIGATTONS
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 descnbed 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. 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 Administrator for any costs incurred
by Administrator or for any performances rendered by Administrator which are
not sti-ictly 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 obiid he p effectve costs
ha ocopt ct, unless
rendered by Admmistrator before
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 termmation date of this
contract.
6. The certification of Contract Completion must be completed and submitted within
sixty (60) days after the contract expiration date.
the total of all
B. Not withstanding any other provision of this contract to the contrary,
payments and other obligations incuned by Departrnent under this contract shall not
exceed the sum of THREE HUNDRED EIGHTY-TWO THOUSAND FIVE
HUNDRED ANDD O/ ND NO/100 DOLL2ARS, (~)7,500~00)his SEVN foE AdmO st aND
FIVE HUNDRE
expenses.
HOME Cozltract # 1001053
Paae 2 oT 21
SECTION 4. DISBURSEMENT OF FUNDS
A. Administrator may not request disbursement of funds for eligible costs incuiTed under
this contract until the funds are needed for pa}nilent of eligible costs in accordance with
the requirements of 24 C.F.R. Part 92. Administrator shall submit to Department at lts
offices in Travis County, Teaas, a properly completed electronic request for funds and
support docurnentation as required and as specified by Department. Department shall
detern-iine 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 pn'or 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 detennines 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 (Exhibit A),
interim construction loan documents, Administrator shall termmate 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 any other right or remedy. Failure to exercise any right or remedy hereunder
shall not constitute a waiver of the rig-ht 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 fiznding is not made 180 days pn'or 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 funds may be requested for
disbursement if the commitment for funding is not made 240 days, pn'or to the
termination date in Section 1 of this Contract or if the loan closing does not occurs 180
days pn'or thereto.
SECTION 5. UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES AND PROGRAM INCOME
A. If Administrator is agovernmental 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 ManaQement Standards, Chapter 783 Texas
Government Code, unless otherwise specified in this contract.
HOME Contract # 1001053
r-dge 3 or? i
B. If Administrator is a non-profit or for-profit orQanization, Administrator shall comply
with requireznents of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84
unless otherwise specified in this contract.
C. Administrator may not retain program illcome or Community Housing Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of program income to fi.lnd other eligible HOME activities.
Administrator shall cornply 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. Adminlstrator shall provide reports of
program income as requested by Department. Progoram 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 alnount of
requested funds should be reduced by the program income used and noted in the request.
D. If Administrator is not a government entity, Administrator 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 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 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. §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. 592.508(c), except:
L 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
Page4ot21
D
E
must be retained until completion of the action and resolution of all issues ;vhich
arise from it, or until the end of the required period, whichever is later.
2. Records coverinc, 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
paylnent to which they are entitled in accordance with 24 C.F.R. Part 92.
D. For rental housing developments, records must be retained for five (5) years after
the project completion date; except that records of individual tenant income
vei-ifications, project rents and project inspections must be retained for the most
recent five (S) year period, until five (5) years after the affordability period
terminates.
Administrator acknowledges that Department is subj ect to the Texas Public Information
Act and Administrator agrees that funds received from the Departrnent are subject to the
Texas Public Infornlation Act and the exceptions to disclosure as provided under the
Texas Public Information Act.
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 m
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 perfornl 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 aceordance with the
requirements of the Act, 10 TAC §53 and contained in the Performance Statement and
Budget (Exhibit A). HOME Contract # 1001053
Page 5 oT 21
SECTION 8. MONITORING
Department reserves the nght to carry out field inspections and desk reviews to ensure
compliance with the requirements of this contract. After each monitonng vislt or desk review,
Department shall provide Administrator with a~mtten report of the monitor's findinQs. If the
monitoring reports note deficiencies in Administrator's performance under the terms of this
contract, the monitoring report shall include requireinents for the timely eorrection of such
deficiencies by Administrator. Failure by Administrator to take the actlon specified in the
monitorin~ report may be cause for suspension, terminatlon or repayment of funds, as provided
in Sections 16, 17, and 18 of this contract. Administrator agrees to attend training, as required by
Departinent, including Implementation Training, lst Thursday Income Eligibility Training and
other HOME Prob am workshops.
SECTION 9. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the Parties hereto that Department is contracting with
Administratar as an independent contractor, and that Adminlstrator, as such, ab ees 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 occumng 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 performance hereunder. Departrnent
maintains the ri,-ht 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
ri ght of action which may exist or which may subsequently accrue to Department under
this contract.
C. Administrator shall cornply with all applicable federal, state, and local laws, regulations,
and ordinances for making procurements under this contract. Adrninistrator 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
HOME Contract # 1001053
F'age 6 oT 21
performance and/or records of work perfoznled under this Contract by airy third-party,
including subcontractors, contractors and consultant or sen"ice provider.
nd
E. Adi~7inistrator shall include in any subcontrac~s~thacluding Debarment fronerpo foi-ume~
this Contract may result in penaltles up to
additional Nvork for the Department.
SECTION 11.- CONFLICT 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 ract responsibilities with respect to activities assisted with funds provided under thaino nts de
or who is in a position to participate in a d on a naprorCfinancial interest or
information with regard to such activities, may obta Perso
benefit from a HOME assisted activity, or have an interest in any contract, subcontract, or
ab eement (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 employinstation of a sub ont actrsupported
participate in the selection, or in the award or adm
by funds provided hereunder if a conflict of interest, rea] 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 other which employs, or is about to employ any of tbcontoract. Admin str tor oshall complyewith
the firm or person selected to perform the su
24 CFR §92.356 (exceptions can only be waived by IILID)• officers C. No owner, developer or sponsor of HOME-ass ointdhousing, fficals including
may occupyla HOME~
employees, agents, consultants or electe o pp ed o
assisted unit in a development (with the exceptions of (1) an individual living in a
HOME-assisted rental housing development w ane riaevidual rec pving 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 co~he act vites e f that entity toryorganiz t ontare
that provides downpayment assistance if
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 Sectlon 11 in all of its subcontracts.
SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTIVITIES
A. Administrator shall ensure that no pers al na~in~be exc~luded fromrace
partic~pationlin, be
se~, handicap, familial status, or nation ~ , . roaram or activity
denied the benefits of, or be subjected to discrimination under, any p~
funded in whole or in part with funds provided under this contract
HOME Contract # 1001053
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B. None of the performances rendered by Adl-ilinistrator under this contract shall involve,
and no portion of the funds received by Administrator under this contract shall be used in
support oi any inherently religious activty, he regulat hops p roiznulgat d by theiiU.Sr
prosel}~tization. Adminlstrator shall compl} with
Department of Housinc, and Urban Development at 24 C.F.R. §92.257.
C. Administrator sha11 include the substance of this Sectlon 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
perfornl the services Administrator has obligated itself to perforrn 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.
Departinent of Housing and Urban Development and/or the Department. In addition,
Department shall have the right to suspend or terminate this contract if Admimstrator 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 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 followinc, events: .
1. any action, includinc, any proceedino before an administrative agency, filed
against Administrator in connection with this contract; and
2. any claim against Administrator, the cost and expense of which Admimstrator
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 wnting and executed by both parties to
HOME Contract 4 10010-53
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this contract. An e~ecuted facsimile copy Will be sufficient to evidence the Parties
agreement to any amendment, revision or chan(_,,e to this contract.
B. It is understood and agreed by the Parties hereto that performance of all activitles under
this contract must be rendered in accordance with the Act, the state and federal
regulations pT-olnulgated under the Act, the assurances and certificatiozls made to
Department by Administrator, and the assurances and certifications made to the United
States Department of Housing and Urbarl Developinent 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 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 wntten 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 ternlination 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, or any temi 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:
l. 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;
suspend this contract upon written 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 written nohce 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 ageement to surrender all rights to
remaining funds;
5, withhold further HOME awards from Administrator, and/or affiliated Parties;
HOME Contract # 1001053
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6. take more severe enforcement action against Administrator by taking any other
remedies that may be legally available to Department, as deternlined by
Department, to ensure compliance with the terms of this contract.
B. At the sole discretion of Department, if Adminlstrator has not achieved substantial
pro,gress within six (6) months of the effective date of this Contract or has failed to meet
any performance benchmark, this Contract may be terminated. Adrninlstrator 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, 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 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, subj ect to the following conditions and limitations:
1. Administrator shall have an audit conducted in accordance with 24 C.F.R. §8426
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 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.
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B. Notwithstanding anything in Section 8(A) to the contrary, Departmerlt reserves the riQht
to conduct an annual financial and compliance audit of funds received and perfonnanees
rendered under this contract. Administrator agrees to permit Department, or its
authonzed representative, to audit Administrator's records and to obtain any documents,
matenals, 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 rein7bursement to
Depaz-tment 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 necessary actions to facilitate the perforrnance 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 cornpletion of the audit.
SECTION 19. ENVIRONMENTAL CLEARA.NCE 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 environmental clearance
determinations. The Department assumes the role of HIJD 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 cornpleting 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 gant Administrator legal claim to any
HOME funds for a specific project or site until the environmental review process is
approved by Department. The ageement to provide funds to the project is conditional on
Department's or Administrator's determination to proceed with, modify or cancel the
proj ect based on the results of a subsequent environmental review.
HOME Contract # 1001053
Palge 11 of 21
E. Funds provided under 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 Manacyement A,,ency (FEMA) as having special flood hazards, unless the
locality in which the site is located is participatin~ in the National Flood Insurance
Program (NFIP) or less than a year has passed since FEMA notificatlon reQarding 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 dunng the
preliminary stages of the environmental clearance process.
SFCTION 20. AFFIRMATIVE MARKETING
Administrator shall adopt affirmative marketincr procedures and requirements. The affirmative
marketin~ procedures and requireinents 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. 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
Com-pliance in Housina and Community Developrnent 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 empioyed 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.B. of this Contract with
interest, at the rate of 5% per annum, not later than the 120th 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 accountinc, procedures are adequate to assure the proper disbursal
HOME Contract # 1001053
Page 12 of 21
of, and accounting for, funds provided under this contract. Department shall specify the
content and form of such certification.
B. A housin- 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). Adrninistrator
is liable and aQrees 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 tl-ie
tern-i 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 fi-om 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 recordation by the appropriate
greements by
county official, to Department. Receipt of such cnrt undedr this contract.
Department is required prior to disbursement of a y f1 ds
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 telbu under thescontract may result inlpenalties
subcontractor/consultant to adequay perform
up to and including debarment from performing additional work for the Department.
SECTION 23. ORAL AND WRITTEN AGREEMENTS
A. All oral and written agreernents 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 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
HOME Contract 9 100105 3
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SECTION 24. N"ENtiE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
SECTION 25. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAW
Administrator shall comply with all federal, state and local laws, statutes, ordinances, rules,
re~ulations, orders and decrees of any court or administrative body or tribunal related to the
activities and performances of Administrator under this contract. Upo17 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 violatinc, 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 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, Humcane Katrina, or
any other disaster occumng after September 24, 2005. By executing this Contract, the
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
acknowled(Dres that this contract may be terminated and payment withheld if this certification is
inaccurate."
WITIVTESS OUR HAND EFFECTIVE:
CITY OF PARIS,
A POLITICAL SUBDI ISION oiz, THE STATE OF TEXAS
By:
Name: Kevin Ca h
Title: City Manager
Date: ~jfA
HOME Contract # 1001053
P~~F 14 c) f?1
THIS CONTRACT `NVAS APPKOVED BY THE BOARD OF DIRECTORS ON
FEBRUARY 5, 2009, AND IS NOT EFFECTIVE UNLESS SIGNED BY THE
EXECUTIVE DIRECTOR OF TH AUTHORIZED DESIGNEOF TIOUSING AND
COMMUNITY AFFAIRS, OR HIS/HER
THIS CONTRACT IS APPROVED, ACCEPTED AND MADE EFFECTIN'E ON
200 AND WILL TERMINATE ON
201 ON BEHALF OF:
TEXAS DEPARTIVIENT OF HOUSING AND COMMUNITY AFFAIRS
By:
Michael Gerber, Executive Director
HOME Contract # 100105 3
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TEXAS DEPARTMENT OF HOUSING -A-IND COMMUNITI' AFFAIRS
HOME C0NTRACT # 1001053
EXHIBIT A
PERFORlt'IANCE STATEMF,NT 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 Prograni Application Number 2008-0102.
OWNER OCCUPIED HOUSING ASSISTANCE PROGRAM
Administrator shall implement an Owner Occupied Housing Assistance Prob am 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-I'IVE T UoAND FIVE HUNDRED AND NO/1005DOLL)A.RS
project funds and SEVEN THO
($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 FIVE (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:
l. 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 Househo]ds 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.
Administrator shall provide HOME Owner Occupied Housing Assistance in the form of a lst,
2"a or 3'a lien ]oan. The total amount of assistance (including soft costs) shall not exceed:
HOME Contract # 1001053
Pa~e 16 of 21
l. Sixty Thousand and no/100 Dollars (560,000.00) for a one to four (1-4) person
household.
2. Sixty Seven Thousand Five Hundred and noi100 Dollars ($67,500.00) for a five to six (5-
6) person household.
3. Seventy Five Thousand and 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
§533 1 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 thirty
percent (30%) and less than or equal to fifty percent (50%) of the AMFI, as defined by
IIITD.
3. Twenty-year defened, forgivable loan for households whose income is geater 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
HL7D.
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, defened forgivable loan with a term based on the
federal affordability requirements as defined in 24 CFR §92254.
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 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.
If at any time prior to the full loan period 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 refinance of any superior lien, at Department's discretion one of the following
options will apply:
HOME Contract # 1001053
Pa~e 17 of 21
l. re-subordination of the Note if the assisted homeo«me.r can provide documzntation,
acceptable to the Department, showing fnat no funds are due the assisted homeowner as a
result of the refinance; or
2. the assisted homeo-wmer will pay 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 homeowner will have the option of:
1. repaying the balance of the Department's subordinate loan in fiill; 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 funds must be submitted to and approved by the Departrnent no later than 240
days and the loan must close 180 days prior to the Contract termination date.
7ER0 (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 thaf 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 once 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 AMFI, as defined by Ht_JD, and all other requirements are met.
Each unit must, at a minimurn, meet or exceed the Texas Minimum Construction Standards
(TMCS) or Colonia HousinQ Standards, if located in a Colonia, as well as local building codes
and zoning ordinances. If 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 venfied b_y a
HOME Contract # 1001053
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RESCHECK certification, and the International Residential Codes, as required by Subchapter G,
Chapter 21rt, Local Governnlent Code.
Administrator is limited to sel-ving homeo,,vmers who certify the assisted unit will be their
prilnary residence and is located in the Rui-al area of THE City of PA.RIS, located in LAMAR
County, Texas, i11 Uniforn-i State Service Region Nurnber FOUR (4), and in aJurisdiction that is
not a participatin~ jurisdiction, as defined in 24 C.F.R. §92.105, unless otherwise approved by
Department. MATCH
Administrator will provide match funds in the amount of FORTY-SIX TI-IOUSAND 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 Prob am 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 GF.R §92.207 in an amount ($7,500 00) rof th( tot 1 amo ntEof
THOUSAND FIVE HUNDRED AND NO/100 w
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 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 COMNIUNITY AFFAIRS
HOME PROGRA.M
HOA7E CONTR4CT # 1001053
EXHIBIT B
THE APPLICABLE LAWS r&_ND 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 perfornzances 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.
L CIVIL RIGHTS
In addition to The Fair Housing Act (42 U.S.C. §3601 et seq. and implementinb regulations
at 24 C.F.R. Part 100), specific federal requirements are set forth in 24 C.F.R. Part 5
IL 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 camed 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 SO and 58.
IV. ACQUISITION/RIELOCATION
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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TE~.AS DEPARTMENT OF HOUSING AND COM-IN7UNITY AFFAIRS
HOME CONTRACT # 10010-53
EXHIBIT C
CERTIFICATION REGARDING LOBBYING FOR
CONTRACTS, GR4NTS, LOANS, AND COOPERATIVE AGREEMENTS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS -
The undersi jned certifies, to the best of its knowledge and belief, that:
l. No federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of an agency, a member of congress, an officer or ernployee of conb ess, 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 ab eement.
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 connection with this federal contract, grant, loan, or cooperative agreement,
the undersiped 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-~rants, and
contracts under ~rants, loans, and cooperative ageements) 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 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. 117
CITY OF PARIS,
A POLITICAL S DIV O OF THE STATE OF TE~iAS
.
Bv:
Kevin Carr~th
City Manager
HOME Contract # 1001053
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