14-Reservation system participant to the Texas Dept of HousingCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Ptesented By:
Agenda Item No.:
11/19/10
Council Date:
City Manager
Kevin Carruth, Rachel Edwards
14.
11 /22/10
RECOMMENDED MOTION:
Move to approve a Resolution authorizing the submission of a request to become a reservation system
participant to the Texas Department of Housing and Community Affairs HOME Program and
authorizing the Mayor to negotiate and execute all necessary documents.
POLICY ISSUE(S):
Contract; Community Development
BACKGROUND:
Beginning last month the Texas Department of Housing and Community Affairs (TDHCA) is trying a
pilot project for distributing HOME Program funds by changing from a contract to a Reservation
System. The primary difference between the Reservation System and a contract is that a contract has a
set aside dollar amount committed to the City for its use for a specific time period. The Reservation
System is a general fund/pool reserved for all entities that have an agreement to participate. Funds are
accessed based on eligible applicants received until the fund is depleted.
Contracts have certain performance benchmarks that must be met and if the benchmarks are not met it
could impact future funding. The advantage a city has with a contract is an exact dollar amount
committed for only that city's use. Typically, a contract will assist five households and assistance is
usually provided every two years.
The good news is that a Reservation System participant is not excluded participation in contracts. The
City is still eligible to apply for contracts in addition to being a participant and utilizing Reservation
System funds. If the City has a contract, TDHCA would prefer commitment of the funds from the
contract prior to utilizing Reservation System funds. The advantage of being a Reservation System
Participant is the City would be able to continue to assist eligible applicants on an on-going basis, as
funds are available. Paris has a waiting list of 53 interested citizens, although all of them may not be
eligible.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution, contract
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$
❑ Department Report ~ Resolution
Budgeted Amt.
$
❑ Presentation ❑ Ordinance
y'I'D Actual
$
❑ Public Hearirig ❑ Other
Acct. Name
Acct. Number
FISCAL NOTES:
The match requirement for Housing Rehabilitation Assistance remains 12.5 percent, regardless of whether the city
accesses funds through a contract or the Reservation System. Homebuyer Assistance has a 5 percent match.
REVIEWED AND APPROVED BY:
Z Administrarion Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police E Eng./Public Works ❑ Utilities
City of Paris Revised 2/04/08
63
DRAFT
S:\RESWORK\CURRENT\TDHCA - Participation in HOME Program RES 2010.docx
RESOLUTION N0.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AUTHORIZING THE SUBMISSION OF A REQUEST TO BECOME A
RESERVATION SYSTEM PARTICIPANT TO THE TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS FOR HOME FUNDS; AUTHORIZING
THE EXECUTION OF ANY AND ALL DOCUMENTS NECESSARY TO BECOME
A PARTICIPANT; MAKING OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Paris desires to continue to develop a viable urban community,
including decent housing and a suitable living environment principally for persons of
low/moderate income; and,
WHEREAS, certain substandard housing conditions exist which represent a health
and safety threat to families residing in such structures; and,
WHEREAS, the City Council of the City of Paris supports the City's application for
funding and deems it in the best interest of the City and the citizens of the City of Paris to
approve the submission of a request to become a reservation system participant to the
Texas Department of Housing and Community Affairs for Home Funds and authorize the
City Manager to execute any and all documents necessary to become a participant, and the
same should be approved;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. That a submission for Reservation System Participation of HOME Funds
is hereby authorized to be filed on behalf of the City with the Texas Department of Housing
and Community Affairs.
Section 3. That the submission will be for grant funds to carry out Homeowner
Rehabilitation Assistance for housing reconstruction and rehabilitation. Project cost will
include eligible hard and soft costs and allowable administration/operating funds.
Section 4. That the City contribute project match as required by the 2010 rules
from its General Fund as a cash contribution, waived fees and/or in-kind services for
properties assisted through this program.
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Section S. That the City commits a cash reserve in the amount of $80,000
designated for payment of requested project expenses before receiving reimbursement by
the State of Texas.
Section 6. That the City Manager, be and he is hereby authorized and directed to
execute, on behalf of the City of Paris, any and all documents necessary in connection with
this submission and the City's participation in the HOME Program.
Section 7. That the Director of Finance be, and he is hereby, authorized and
directed to distribute funds for purposes of the Ciry's participation in the HOME Program.
Section 8. That this resolution shall be effective immediately upon passage.
PASSED AND APPROVED this 22nd day of November, 2010.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
65
TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS
HOME INVESTMENT PARTNERSHIPS PROGRAM
RESERVATION SYSTEM PARTICIPANT ("RSP") AGREEMENT
RSP AGREEMENT # 2010-0015
WITH THE
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
HOME RSP AGREEMENT (this "Contract") in connection with approval to participate in the
HOME Investment Partnerships Program (CFDA 14.239) Reservation System 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 "Denartment," and the CITY OF PARIS, a Political Subdivision of the State of
Texas ("RSP"), herein collectively referred to as "Parties."
RECITALS
WHEREAS, the Department has entered into a grant agreement with the U.S Department
of Housing and Urban Development ("HUD") pursuant to which HUD will provide funds to
TDHCA to make available to eligible applicants in accordance with the Program Requirements;
WHEREAS, the Department is a designated Participating Jurisdiction within the meaning
of the 24 C.F.R. Part 92 and has the authority to make a subaward or otherwise contract with
eligible organizations to participate in the administration of HOME funds (the "HOME Funds")
to eligible applicants in accordance with the Program Requirements;
WHEREAS, the Board adopted Title 10 of the Texas Administrative Code (TAC)
Chapter 53, effective September 24, 2010, applicable to this Contract ("HOME Rule") which set
forth, among other things, the rules and reyuirements by which the Department will administer
the HOME Funds;
WHEREAS, the Executive Director approved the Department to enter into this Contract
subject to the terms and conditions set forth herein to RSP to serve Households under the
Reservation System; and
WHEREAS, RSP agrees to participate in the Reservation System and administer HOME
Funds 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), 10 TAC
Chapter 53 et seq. (the "HOME Rule"), the Application and Application Submission Procedures
Manual, and the terms of this Contract and all exhibits and attachments hereto, collectively
referred to as "Program Requirements".
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NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth
herein, including the Recitals, which are contractual in nature, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each
intending to be legally bound, hereby agree as follows:
ARTICLE I
DEFINITIONS
Unless the context clearly indicates otherwise, capitalized terms used shall have the
meanings ascribed to them in this Contract, provided that certain capitalized terms used and not
defined herein shall have the meanings ascribed to them in or for purposes of the HOME Rule. In
the event of a conflict between the Program Requirements with respect to the meaning of a
defined term, the meaning given by HUD shall control. The meanings of the capitalized terms
used herein and not defined in the Program Requirements are set forth herein.
ARTICLE II
RESERVATION SYSTEM PARTICIPATION
Section 2.1 Term
This Contract shall be effective upon its execution and delivery and shall remain in full
force and effect for twenty four (24) months ("Term" or "Contract Term") to begin on the
day this Contract is executed by an authorized representative of the Department and end on
, 201_, unless earlier terminated or amended in accordance
with the provisions herein.
Section 2.2 Reservation Svstem Access
A. This Contract is entered into in accordance with the rules at 10 TAC §53.26.
Execution of this Contract does not guarantee the availability of funds to carry out the activities
described herein. To the extent that the Department makes HOME funds available for the
eligible activities specified in subsection D of this section, the RSP shall have access to the
Department's Housing Contract System (https://contract.tdhca.state.tx.us/alligator/Login.m) to
make a Reservation of funds in accordance with the terms and conditions herein.
B. An RSP shall have access to submit a household for a Reservation of Funds on
any business day during the Term of this Contract, provided sufficient funds are available.
C. For any Household that is approved for a Commitment of Funds, the RSP must
enter into an agreement with Department to govern the provision of approved funds and specify
the applicable Program Requirements ("Household Commitment Contract"). The Household
Commitment Contract is attached hereto as Exhibit A.
D. Notwithstanding any other provision of this Contract to the contrary, the total of
all payments and other obligations incurred by Department under this Contract shall not exceed
the amounts available under the Reservation System after making all appropriate adjustments
and provisions for other obligations, limitations, costs, and expenses.
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E. By election of RSP in the approved Application, RSP shall participate in the
Reservation System to serve Households under the following selected Reservation System set-
asides as HOME Funds for each respective set-aside are available:
~ Homeowner Rehabilitation Assistance ("HRA") Set-Aside #1001273
(10 TAC §§53.30-32)
❑ Homeowner Rehabilitation with Refinance Assistance ("HRA") Set-Aside
#INiA] (lo Tac §§s3.3o-32)
r;J Homebuyer Assistance ("HBA") Set-Aside #1001288 (10 TAC §§53.40-42)
❑ Contract for Deed Conversion ("CFDC") Set-Aside #[N/AI
(10 TAC §§53.50-52)
❑ Tenant-Based Rental Assistance ("TBRA") Set-Aside #[N/AI
(10 TAC §§53.60-62)
❑ Single-Family Programs for Persons with Disabilities ("PWD") Set-Aside
including the following activities:
❑ HBA #[N/AI (10 TAC §§53.40-42)
❑ TBRA #[N/AI (10 TAC §§53.60-62)
❑ Disaster Relief Set-Aside including the following activities:
❑ HBA #[N/AI (10 TAC §§53.40-42)
❑ TBRA #(N/A] (10 TAC §§53.60-62)
❑ HRA #[N/AI (10 TAC §§5330-32)
Section 2.3 Administration
A. For completed Activities, RSP may receive reimbursement for reasonable
administrative and planning costs directly related to this Contract and the Program Requirements
in an amount that is not more than four percent (4%) of the total amount of Project funds
reimbursed to RSP, subject to the provisions of this agreement, for eligible costs under this
Contract less any soft costs actually reimbursed or for which may be reimbursed and not
including the amount of any Match provided. For TBRA activities, funds available for
reimbursement of such costs shall be limited to eight percent (8%) of the total amount of Project
funds reimbursed to RSP, subject to the provisions of this agreement, for eligible costs under this
Contract not including the amount of any Match provided. For TBRA, if Match funds are
provided in accordance with section 2.4(a)(iii) of this Contract, an additional one percent (1%) of
the total Project funds can be reimbursed for administrative costs.
B. RSP shall be allowed to draw up to ten percent (10%) of the actual allowable
administrative costs (including pre-award costs) incurred at the initial stage of the Contract, with
the remaining ninety percent (90%) funded on a pro-rata basis, based on Project funds
disbursements and in accordance with the Program Requirements. For TBRA activities, RSP
shall be allowed to draw up to twenty-five percent (25%) of the actual allowable administrative
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costs (including pre-award costs) incurred at the initial stage of the Contract, with the remaining
seventy-five percent (75%) funded on a pro-rata basis, based on Project funds disbursements and
in accordance with the Program Requirements. To the extent that an Activity is not completed in
accordance with this Contract and the program requirements, funds disbursed under this section
shall be repaid to Department within thirty (30) business days of such notice being provided to
RSP.
Section 2.4 Match
A. Unless otherwise waived by the HOME Rule, RSP will identify and provide
eligible Match funds in accordance with the requirements of 10 TAC §53.28(19) and in an
amount consistent with the provisions of this section and the Program Requirements.
(i) For HRA Activities, zero percent (0%) of Project funds if serving a city of
less than 3,000 Persons or an unincorporated area of a county with less than 20,000
Persons; ten percent (10%) of Project funds if serving a city of between 3,001 and 5,000
Persons or an unincorporated area of a county of between than 20,001 and 75,000
Persons; and twelve and one-half percent (12.5%) of Project funds for all other
applications;
(ii) For HBA Activities, at least five percent (5%) of Project funds requested;
and
(iii) Notwithstanding provisions (i) and (ii) of this subsection, for TBRA,
CFDC Activities or any Activity served under the disaster relief or Persons with
Disabilities Set-Asides, no Match funds are required. For TBRA Activities, in accordance
with 10 TAC §53.61(g), if Match funds in an amount equal to five percent (5%) or more
of Project funds is provided, funds for administrative costs may be increased in
accordance with section 2.3 of this Contract.
B. As required by 10 TAC §53.26, at the time every fourth household under a
Program Activity is submitted for approval, the Department shall evaluate whether the Match
requirement of this section has been met by calculating the cumulative Match required and
ensuring that the cumulative Match proposed and provided is sufficient to meet the requirements
of this section. Support documentation, acceptable to the Department, evidencing the Match
contribution must be submitted by RSP upon request for disbursement of funds for each
household assisted or project, in accordance with the Program Requirements, CPD Notice 97-03,
and other HUD guidance. Match is not required to be evenly distributed among households
served, but an RSP is encouraged to ensure that Match funds are provided in a fair manner.
Section 2.5 Service Area
A Reservation of Funds for a household is limited to the City of Paris, located in Lamar
County, Texas, in a jurisdiction that is not a participating jurisdiction as defined in 24 C.F.R.
§92.105, and in the Uniform State Service Region Number Four (4), unless otherwise approved
by the Department by amendment to this Contract.
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Section 2.6 Communitv Housing Development Organization ("CHDO")
INTENTIONALLY DELETED
Section 2.7 Targeted Households
A. Each Household served under the Contract is required to have an income that is
less than or equal to 80% of AMFI determined in accordance with 24 C.F.R. Part 92 and 24
C.F.R. Part 5; will occupy the unit for which HOME funds are being provided as the household's
principal residence in accordance with the Program Requirements; and that meets all other
Program Requirements.
B. In accordance with 10 TAC §53.26, except for households served with HBA
funds, RSP will serve at least one (1) household at or below 30% of AMFI for every four (4)
households submitted for a Reservation of Funds and approved for assistance.
Section 2.8 Construction Standards
A. Each housing unit rehabilitated with HOME Funds, at a minimum, will meet or
exceed the Texas Minimum Construction Standards ("TMCS") as well as local building codes
and zoning ordinances. Each unit reconstructed or newly constructed with HOME Funds, at a
minimum, will meet or exceed the 2000 International Residential Code ("IRC") as required by
the HOME Rule. If a housing unit is reconstructed, RSP must also ensure compliance with the
universal design features for construction of single family affordable housing, established by
§2306.514 of the Texas Government Code, the energy efficiency standards established by
§2306.187 of the Texas Government Code, energy standards as verified by a RESCHECK
certification, and the International Residential Codes, as required by Subchapter G, Chapter 214,
Local Government Code.
B. Housing units that are provided assistance for acquisition only must meet all
applicable state and local housing quality standards and code requirements. In the absence of
such standards and requirements, the housing units must meet the Housing Quality Standards
("flQE") in 24 CFR §982.401.
C. For TBRA, rental units must be inspected prior to occupancy and annually upon
Household recertification and must comply with HQS established by HUD.
ARTICLE III
RECAPTURE AND REPAYMENT OF HOME FUNDS
Section 3.1 Recapture of Funds
A. RSP shall be subject to the following recapture provisions and the Department
reserves the right to include in any Loan/Grant Documents, as defined in Section 4.2(d) of this
Contract, provisions to force recapture of all funds disbursed under this Contract or an executed
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Household Commitment Contract (a template of which is attached hereto as Exhibit A for any
of the following events and any other event agreed to by the parties in the Loan/Grant
Documents. When applicable, the Department shall used the federal recapture requirements in 24
CFR §92.254 to determine the amount of funds subject to recapture.
(i) Department determines that RSP will be unable to expend all funds
awarded within the term of a Household Commitment Contract and/or construction
period as defined in the Loan/Grant Documents (as applicable) and funds disbursed did
not result in the completion of the units for construction activities and occupancy by
Households for all activities in accordance with this Contract;
(ii) HOME Funds have been determined by the Department or HUD to have
been expended for costs other than Eligible Costs and have not been repaid to the
Department within thirty (30) Business Days of such notice being provided to RSP;
(iii) The completion of construction on any Activity assisted with HOME
Funds does not occur prior to the end of the term of the Household Commitment Contract
and the end of the term is not extended by the Department. Any home demolished that
cannot be reconstructed within term of the Household Commitment Contract becomes the
responsibility of the RSP for completion;
(iv) A housing unit assisted with HOME Funds fails to comply, or ceases to
comply, with the affordability requirements in 24 C.F.R. §§92.254(a) and (c) and
92.612(c) and as otherwise specified herein.
(v) A violation of any law, regulation or order applicable to the RSP that has
or might reasonably be expected to have a material adverse impact on the RSP's ability to
fulfill the terms of this Contract and is not cured within the applicable cure period, if any,
provided in such law, regulation, or order;
(vi) Gross negligence, fraud, willful misconduct, misappropriation of funds, or
criminal activity by RSP or any affiliate of the RSP providing services to or in connection
with the Contract or RSP;
(vii) The RSP is debarred, suspended, proposed for debarment, or placed on
ineligibility status by HUD;
(viii) Repeated or prolonged failure to provide any Required Report;
B. RSP acknowledges that in the event RSP is unable to perform in accordance with
this Contract, as required of RSP in the Loan/Grant Documents, RSP shall terminate this
Contract and surrender RSP's rights to any committed funds.
Section 3.2 Sale of the Propertv, Refinancing, or Release of non-Department Lien
A Household assisted with a loan shall be subject to the provisions of this section in the
case of a sale of, refinancing of any other loans with liens on, or release of a non-Department lien
on the assisted housing unit and property.
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(i) If at any time prior to the end of the loan term following completion of
construction or loan closing there occurs a sale of the property, the unit ceases to be the
assisted Household's principal residence or default occurs, the First Lien and Second
Lien shall become due and payable.
(ii) In the event that the assisted Household refinances any superior lien, at
Department's discretion, the Department will re-subordinate if the household can provide
documentation, acceptable to the Department, showing that no funds are due the assisted
Household as a result of the refinance; the Household will pay off the Department's lien;
or that the refinance will not adversely impact the ability for the household to continue to
meet the affordability requirements of the Department's loan.
(iii) In the event of payoff of any superior lien, the assisted Household will
have the option of: repaying the balance of the Department's loan(s) in full; or repaying
the balance of the Department's loan(s) in equal monthly installments over a five (5) year
period.
ARTICLE IV
RESERVATION, COMMITMENT, AND DISBURSEMENT OF HOME FUNDS
Section 4.1 Reservation and Commitment of HOME Funds
A. A Commitment of Funds shall not be made under this Contract until which time
as the Board has ratified the Executive Director's approval of the RSP application and the
authority of the Department to enter into this Contract. If the Board fails to ratify the Executive
Director's approval of the RSP application, the Department's obligations hereunder shall
terminate and Department shall have no liability to reimburse or otherwise compensate RSP for
activities performed.
B. For a Commitment of Funds to a Household, RSP must submit to the Department
at its offices in Travis County, Texas, a properly completed electronic Reservation of Funds for
an Activity and support documentation using the Housing Contract System in accordance with
the Program Requirements and as required and specified by Department in its sole discretion.
C. An approved Reservation of Funds and Commitment of Funds shall be required
for each Activity that receives HOME Funds under this Contract and the Reservation System.
D. A Reservation of Funds shall not constitute a Commitment of Funds until RSP
has submitted all required documentation and such documentation has been accepted by
Department. If, during review, the Department identifies Administrative Deficiencies, the
Department will allow a cure period of ten (10) Business Days beginning at the start of the first
Business Day following the date the RSP notified of the Administrative Deficiency. If any
Administrative Deficiency remains after the cure period, the Department shall, in its sole
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discretion, disapprove the request. Disapproved requests shall not constitute a Reservation of
Funds.
Section 4.2 Disbursement of HOME Funds
A. RSP 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
Program Requirements. RSP shall submit to Department at its offices in Travis County, Texas, a
properly completed electronic request for funds and support documentation using the Housing
Contract System in accordance with the Program Requirements and as required and as specified
by Department in its sole discretion.
B. 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. The Department may request RSP to make modifications to the disbursement
request and is authorized to modify the disbursement procedures set forth herein and to establish
such additional requirements for payment of HOME Funds to RSP as may be necessary or
advisable for compliance with all Program Requirements.
C. RSP agrees to attend training, as may be reyuired by Department, prior to the
disbursement of any funds under this Contract.
D. Department shall not release any funds for any costs incurred by RSP under this
Contract until Department has received from RSP executed, legally enforceable loan or grant
documents (as applicable) which shall include, at a minimum, a promissory note, deed of trust,
and construction loan agreement or a grant agreement and construction grant agreement for each
assisted household containing remedies adequate to enforce the Program Requirements including
the affordability requirements of 24 C.F.R. §92.254 ("Loan/Grant Documents"). RSP shall
record such agreements in the real property records of the county in which the Unit is located
and return the original documents, duly certified as to recordation by the appropriate county
official, to Department. Receipt of such certified recorded original Loan/Grant Documents by
Department is required prior to disbursement of any funds under this Contract.
E. Department shall not release HOME Funds for any costs incurred by RSP under
this Contract until Department has received certification from RSP that its fiscal control and fund
accounting procedures are adequate to assure the proper disbursal of, and accounting for, funds
provided under this Contract. The Department shall specify the content and form of such
certification.
F. Department shall not be obligated to pay for costs incurred or performances
rendered by RSP before the execution of this Contract, unless otherwise specified, or after the
termination date of this Contract.
G. Department shall not disburse HOME Funds under this Contract until and unless
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,
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Department shall notify RSP in writing within a reasonable time after such fact is determined. In
that event, this Contract shall terminate and neither Department nor RSP shall have any further
rights or obligations hereunder.
H. In addition to the limitations on liability otherwise specified in this Contract, it is
expressly understood and agreed by the Parties hereto that if RSP fails to submit to Department
in a timely and satisfactory manner any Required Reports, Department may, at its sole option
and in its sole discretion, withhold any or all disbursements otherwise due or requested by RSP
hereunder. If Department withholds such disbursements, it shall notify RSP in writing of its
decision, the reasons for this action and the time period in which RSP must bring itself into
compliance.
L Disbursements withheld pursuant to this section may be held by Department until
such time as the RSP is in compliance with the reyuirements for which funds are being withheld.
If RSP fails to perform as required within the stated cure period, Department may terminate this
Contract and RSP hereby agrees and acknowledges that upon termination, RSP's rights to any
funds shall be terminated.
ARTICLE V
AMENDMENTS
A. Except as specifically provided otherwise in this Contract or in the HOME Rule,
any changes, additions, or deletions to the terms of this Contract shall be in writing and executed
by both Parties to this Contract and shall comply with the amendment requirements of the
HOME Rule. An executed facsimile or electronic copy will be sufficient to evidence the Parties
agreement to any amendment, revision or change to this Contract. If any Party returns this copy
by facsimile machine or electronically, the signing party intends the copy of its authorized
signature printed by the receiving machine, or the electronic copy, to be its original signature.
B. Any changes, additions, or deletions to the terms of this Contract which are
required by changes in federal or state law, or regulations, are automatically incorporated into
this Contract without the requirement of a written amendment hereto, and shall become effective
on the date designated by such law or regulation.
ARTICLE VI
CROSS-CUTTING FEDERAL REQUIREMENTS
Section 6.1 Environmental Clearance
A. The environmental effects of any activity carried out with funds that may be
accessed under this Contract must be assessed in accordance with the provisions of the Program
Requirements, 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, reserved, or committed to an
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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 C.F.R. 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 must attend HOME training for
environmental assessment. The assessments must be satisfactory to Department. This Contract is
conditional in nature and does not grant RSP 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 RSP's determination to proceed
with, modify or cancel the project based on the results of a subsequent environmental review.
E. Funds provided under this Contract may not be used in connection with
acquisition or rehabilitation or new construction of housing located in an area identified by the
Federal Emergency Management Agency (FEMA) as having special flood hazards, unless the
locality in which the site is located is participating in the National Flood Insurance Program
(NFIP) or less than a year has passed since FEMA notification regarding such hazards and flood
insurance is obtained as a condition of approval of the commitment. RSP must determine if the
locality participates in the NFIP during the preliminary stages of the environmental clearance
process.
Section 6.2 Affirmative Marketing
RSP shall adopt affirmative marketing procedures and requirements. The affirmative
marketing procedures and requirements shall include, but not be limited to, those specified in 24
C.F.R. §92351. The procedures and requirements shall be prepared and implemented in a
manner prescribed by Department.
Section 6.3 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
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Acts and with other federal laws, and regulations pertaining to labor standards and HUD
Handbook Federal Loan Standards Compliance in Housing and Communitv Development
Pro rams, as applicable.
B. RSP, by execution of this Contract, hereby certifies that RSP, or a branch,
division, or department of RSP 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, RSP, or a
branch, division, or department of RSP is convicted of a violation under 8 U.S.C. § 1324(a)(f),
RSP 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 120t" day after the date the
Department notifies RSP of the violation.
Section 6.4 Uniform Relocation
A. RSP shall comply with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, 42 U.S.C. §4201 - 4655, 49 C.F.R. Part 24, and 24 C.F.R.
§92.353.
B. RSP must ensure that it has taken all reasonable steps to minimize the
displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as
a result of a project assisted with HOME Funds.
Section 6.5 Lead-Based Paint
RSP shall comply with 24 C.F.R. §92.355 which requires that housing assisted with
HOME Funds is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-
4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856),
and implementing regulations at 24 C.F.R. Part 35, (including subparts A, B, J, K, M and R).
Section 6.6 Section 3 Compliance
A. The work to be performed under this contract is subject to the requirements of
section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u
("Section 3"). The purpose of Section 3 is to ensure that employment and other economic
opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall,
to the greatest extent feasible, be directed to low- and very low-income persons, particularly
persons who are recipients of HUD assistance for housing.
B. The Parties agree to comply with HUD's regulations in 24 CFR part 135, which
implement Section 3. As evidenced by their execution of this Contract, the Parties certify that
they are under no contractual or other impediment that would prevent them from complying with
the part 135 regulations.
C. The Administrator agrees to send to each labor organization or representative of
workers with which the Administrator has a collective bargaining agreement or other
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understanding, if any, a notice advising the labor organization or workers' representative of the
Administrator's commitments under this section of the Contract, and will post copies of the
notice in conspicuous places at the work site where both employees and applicants for training
and employment positions can see the notice. The notice shall describe the Section 3 preference,
shall set forth minimum number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work shall begin.
D. The Administrator agrees to include this Section 3 clause in every subcontract
subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action,
as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a
finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The
Administrator will not subcontract with any subcontractor where the Administrator has notice or
knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part
135.
E. The Administrator will certify that any vacant employment positions, including
training positions, that are filled (1) after a contractor is selected but before the contract is
executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135
require employment opportunities to be directed, were not filled to circumvent the
Administrator's obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension from future HUD
assisted contracts.
G. With respect to work performed in connection with Section 3 covered Indian
housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450e) ("Section 7b") also applies to the work to be performed under this contract.
Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for
training and employment shall be given to Indians, and (ii) preference in the award of contracts
and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 and Section 7b agree to
comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with
Section 7b.
ARTICLE VII
RECORDS AND REPORTING
Section 7.1 Retention and Accessibilitv of Records
A. RSP shall establish and maintain sufficient records at its regular place of business,
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 and Part 5.
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B. RSP 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 RSP pertaining to
this Contract. RSP agrees to maintain such records at its regular place of business.
C. All records pertinent to this Contract shall be retained by RSP for a period of five
(5) years in accordance with 24 C.F.R. §92.508(c), except:
(i) If any litigation, claim, negotiation, audit, monitoring, inspection or other
action has started before the expiration of the required record retention period records
must be retained until completion of the action and resolution of all issues which arise
from it, or until the end of the required period, whichever is later.
(ii) 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 project have received the final payment to which they
are entitled in accordance with 24 C.F.R. Part 92.
D. RSP acknowledges that Department is subject to the Texas Public Information
Act and RSP 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. RSP shall include the substance of this Article VII in all of its subcontracts.
Section 7.2 Reporting Requirements
A. RSP 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. RSP shall provide Department with all reports necessary for Department's
compliance with 24 C.F.R. Part 92, which shall hereby be referred to as "Required Reports."
B. In addition to Required Reports, the RSP shall provide reports to Department
regarding program activities as necessary to evidence progress of performance in accordance
with the Program Reyuirements.
ARTICLE VIII
AUDITS AND MONITORING
Section 8.1 Audits
A. RSP 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
month of the RSP's fiscal year overlaps a month of the contract period. Unless otherwise
directed by Department, RSP shall arrange for the performance of an annual financial and
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compliance audit of funds received and performances rendered under this Contract, subject to the
following conditions and limitations:
(i) RSP 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
RSP 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.
(ii) At the option of RSP, each audit required by this section may cover RSP's
entire operations or each department, agency, or establishment of RSP which received,
expended, or otherwise administered federal funds.
(iii) Notwithstanding anything to the contrary in herein, RSP 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 RSP and any other documentation deemed
necessary to meet the Program Requirements.
(iv) Unless otherwise specifically autharized by Department in writing, RSP
shall submit two (2) copies of the report of such audit to Department within thirty (30)
days after completion of the audit, but no later than nine (9) months after the end of each
fiscal period included within the period of this Contract. Audits performed under this
section are subject to review and to direction on resolution of findings by Department or
its authorized representative.
B. Notwithstanding anything in to the contrary herein, Department reserves the right
to conduct an annual financial and compliance audit of funds received and performances
rendered under this Contract. RSP agrees to permit Department, or its authorized representative,
to audit RSP's records and to obtain any documents, materials, or information necessary to
facilitate such audit.
C. RSP 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.
RSP further understands and agrees that reimbursement to Department of such disallowed costs
shall be paid by RSP from funds which were not provided or otherwise made available to RSP
under this Contract.
D. RSP shall take all necessary actions to facilitate the performance of such audit or
audits conducted pursuant to this section as Department may require of RSP.
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E. All approved HOME audit reports shall be made available for public inspection
within thirty (30) days after completion of the audit.
F. The RSP 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.
Section 8.2 Uniform Administrative Requirements, Cost Principles, and Program
Income
A. If RSP is a governmental entity, RSP shall comply with the requirements of OMB
Circular No. A-87; the requirements of 24 C.F.R. Part 85 as applicable, and the Uniform Grant
Management Standards, Chapter 783 Texas Government Code, unless otherwise specified in this
Contract.
B. If RSP is a non-profit or for-profit organization, RSP shall comply with
reyuirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84 unless
otherwise specified in this Contract.
C. RSP may not retain program income of any kind, however derived, under this
Contract, including the retention of program income to fund other eligible HOME activities.
RSP shall comply with the reyuirements of 24 C.F.R. §92.503 to account for program income,
repayments, and recaptured funds related to activities financed in whole or in part with funds
provided under this Contract. RSP shall provide reports of program income as reyuested by
Department. Program income derived under this Contract must be submitted to Department
within ten (10) days of receipt. In any event, program income received from a prior HOME
Contract must be disbursed before RSP 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 RSP is a corporation, RSP 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 RSP damages
the Department's interests. RSP shall provide Department with certificates of insurance
evidencing RSP's current and effective insurance coverage. RSP 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. RSP agrees to suspend
the performance of all work performed under this Contract until the RSP 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.
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Section 8.3 Monitoring
A. Department reserves the right to carry out field inspections and desk reviews to
ensure compliance with the requirements of this Contract. After each monitoring visit or desk
review, Department shall provide RSP with a written report of the monitor's findings. If the
monitoring reports note deficiencies in RSP's performance under the terms of this Contract, the
monitoring report shall include requirements for the timely correction of such deficiencies by
RSP.
B. Failure by RSP to take the action specified in the monitoring report may be cause
for suspension, termination or recapture of funds, as provided in Article IIl of this Contract.
C. RSP agrees to attend training, as required by Department.
ARTICLE IX
GENERAL PROVISIONS
Section 9.1 Special Conditions
A. Upon termination of this Contract, all funds, if any, 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. RSP shall return these assets to Department within seven
(7) business days after the date of termination.
B. It is expressly understood and agreed by the Parties hereto that Department is
contracting with RSP as an independent contractor, and that RSP, as such, agrees to hold
Department harmless and to the extent allowed by law indemnify Department from and against
any and all claims, demands, and causes of action of every kind and character which may be
asserted by any third party occurring or in any way incident to, arising out of, or in connection
with the services to be performed by RSP under this Contract.
C. It is expressly understood and agreed by the Parties hereto that any right or
remedy provided for in this section, 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.
D. RSP understands that failure to perform under the terms of this Contract or in
accordance with the Program Requirements may result in the Department's imposition of the
applicable remedies specified in 10 TAC § 1.20(e)(1).
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Section 9.2 Subcontracts
A. RSP 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.
B. RSP shall only subcontract for performance of activities described in this Contract
after RSP has obtained the appropriate documentation verifying the subcontractor's eligibility, as
required by state of federal law or specified by Department, for each such proposed subcontract.
RSP, in subcontracting for any activities described in this Contract, expressly understands that in
entering into such subcontracts, Department is in no way liable to RSP's subcontractor(s).
C. In no event shall any provision of this section constitute adoption, ratification, or
acceptance of RSP's or subcontractor's performance hereunder. Department maintains the right
to insist upon RSP'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
subseyuently accrue to Department under this Contract.
Section 9.3 Contlict of Interest
A. RSP shall ensure that no employee, agent, consultant, officer or elected or
appointed official of RSP, who exercises or has exercised any functions or responsibilities with
respect to activities assisted with funds provided under this Contract or who is in a position to
participate in a decision making process, or gain inside information with regard to such activities,
may obtain a personal or financial interest or benefit from a HOME assisted activity, or have an
interest in any contract, subcontract, or agreement (or the proceeds thereo fl with respect to a
HOME assisted activity either for themselves or those with whom they have family or business
ties, during their tenure or for one year thereafter.
B. RSP shall ensure that no employee, officer, or agent of RSP 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. RSP shall comply with 24 C.F.R. §92.356 (exceptions can only made by HUD in
writing).
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).
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D. None of the HOME Funds may be paid to an entity or organization that provides
down payment 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. RSP shall include the substance of this section in all of its subcontracts.
Section 9.4 Nondiscrimination and Faith-Based Activities
A. RSP shall ensure that no person shall, on the grounds of race, color, religion, sex,
handicap, familial status, or national origin, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under, any program or activity funded in whole or
in part with funds provided under this Contract.
B. None of the performances rendered by RSP under this Contract shall involve, and
no portion of the funds received by RSP under this Contract shall be used in support of any
inherently religious activity, such as worship, religious instruction, or proselytization. RSP shall
comply with the regulations promulgated by HUD at 24 C.F.R. §92.257.
C. RSP shall include the substance of this section in all of its subcontracts.
Section 9.5 Legal Authoritv
A. RSP assures and guarantees Department that RSP possesses the legal authority to
enter into this Contract, to receive funds authorized by this Contract, and to perform the services
RSP has obligated itself to perform under this Contract.
B. The person(s) signing and executing this Contract on behalf of RSP does hereby
warrant and guarantee that he is duly authorized by RSP to execute this Contract on behalf of
RSP and to validly and legally bind RSP to all the terms, performances, and provisions of this
Contract.
C. RSP shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by HUD and/or
the Department. In addition, Department shall have the right to suspend or terminate this
Contract if RSP is debarred, suspended, proposed for debarment, or is otherwise ineligible from
participating in the HOME Program by HUD or the Department. RSP acknowledges and agrees
that this section specifically includes, but is not limited to, consultants hired by RSP to assist
RSP in any aspect relative to the activities of this Contract.
Section 9.6 Litigation and Claims
A. RSP shall give Department immediate notice, in writing, of the occurrence of any
of the following events:
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(i) any action, including any proceeding before an administrative agency,
filed against RSP in connection with this Contract; and
(ii) any claim against RSP, the cost and expense of which RSP may be entitled
to be reimbursed by Department.
B. Except as otherwise directed by Department, RSP shall furnish immediately to
Department copies of all pertinent papers received by RSP with respect to such action or claim.
Section 9.7 Oral and Written Arguments
A. All oral and written agreements between the Parties to this Contract relating to the
subject matter of this Contract that were made prior to the execution of this Contract have been
reduced to writing and are contained in this Contract.
B. All attachments are a part of this Contract and constitute promised performances
under this Contract.
Section 9.8 Venue
For purposes of litigation pursuant to this Contract, venue shall lie in Travis County,
Texas.
Section 9.9 Compliance with Federal, State and Local Law
RSP shall comply with all federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to the
activities and performances of RSP under this Contract. Upon request by Department, RSP shall
furnish satisfactory proof of its compliance therewith.
Section 9.10 Certification Regarding Certain Disaster Relief Contracts
The Department may not award a contract that includes proposed financial participation
by a person who, during the five-year period preceding the date of this Contract, has been
convicted of violating a federal law in connection with a contract awarded by the federal
government for relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined
by Section 39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after
September 24, 2005; or assessed a penalty in a federal civil or administrative enforcement action
in connection with a contract awarded by the federal government for relief, recovery, or
reconstruction efforts as a result of Hurricane Rita, as defined by Section 39.459, Utilities Code,
Hurricane Katrina, or any other disaster occurring after September 24, 2005. By executing this
Contract, the RSP hereby certifies that: Under Section 2261.053, Government Code, RSP
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.
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Section 9.11 Certification Re2arding Lobbvini!
A. The undersigned certifies, to the best of its knowledge and belief, that:
(i) 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
employee of congress, or an employee of a member of congress in connection with
the awarding of any federal contract, the making of any federal grant, the making of
any federal loan, the entering into of any cooperative agreement, or modification of
any federal contract, grant, loan, or cooperative agreement.
(ii) 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 undersigned shall complete and submit
standard form -LLL, "Disclosure Form to Report Lobbying", in accordance with its
instructions.
(iii) The undersigned shall require that the language of this certification
be included in the award documents for all sub-awards at all tiers (including
subcontracts, sub-grants, and contracts under grants, loans, and cooperative
agreements) and that all sub-recipients shall certify and disclose accordingly.
B. The certifications in this section are material representations of fact on which
reliance was placed when this transaction was made or entered into. These certifications are 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 certifications shall be subject to a civil penalty
of not less than $10,000 and not more than $100,000 for each such failure.
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IN WIT'NESS WHEREOF, each of the Parties has executed this Contract as of the dates
written below.
DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND
COMMLJNITY AFFAIRS, an agency of the State of
Texas, established by Chapter 2306, Texas
Government Code
By:
Michael G. Gerber, Authorized Representative
Date:
CITY OF PARIS, a Political Subdivision of the State
of Texas
RSP:
By:
Date:
Kevin Carruth, City Manager
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TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS
HOME 1NVESTMENT PARTNERSHIPS PROGRAM
RESERVATION SYSTEM PARTICIPANT ("RSP") AGREEMENT
EXHIBIT A
HOUSEHOLD COMMITMENT CONTRACT TEMPLATE
RSP AGREEMENT # 2010-0015
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TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS
HOME INVESTMENT PARTNERSHIPS PROGRAM
HOUSEHOLD COMMITMENT CONTRACT FOR [HRA/HBA]
WITH THE
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
HOUSEHOLD COMMITMENT CONTRACT (this "Contract") in connection with the
HOME Investment Partnerships Program Reservation System and Reservation System
Participant Agreement # 2010-0015 ("RSP AgreemenY') is made and entered into by and
between the CITY OF PARIS, a Political Subdivision of the State of Texas ("RSP") and
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and
official agency of the State of Texas, hereinafter referred to as "Department," herein
collectively referred to as "Parties."
RECITALS
WHEREAS, RSP wishes to make a Commitment of Funds to Qualified Household, as
defined in Article I, in accordance with and subject to all provisions of the RSP Agreement and
Program Requirements; and
WHEREAS, RSP agrees and acknowledges that this Contract serves as a supplement to
the RSP Agreement and, by execution hereof, shall be subject to all terms and conditions of RSP
Agreement unless otherwise specified herein;
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth
herein, including the Recitals, which are contractual in nature, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each
intending to be legally bound, hereby agree as follows:
ARTICLE I
QUALIFIED HOUSEHOLD
RSP has reviewed the income and all other documentation necessary for the Household
of and ~ I ("Qualified Household"). RSP has verified that the
Qualified Household meets the Program Requirements and the requirements of the RSP
Agreement.
ARTICLE II
COMMITMENT OF FUNDS
Section 2.1 Term
A. This Contract shall be effective upon its execution and delivery and shall remain
in full force and effect for nine (9) months ("Term" or "Contract Term") to begin on the day
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this Contract is executed by an authorized representative of the Department and end on
I 1, unless earlier terminated or amended in accordance with the provisions
herein or provisions of the RSP Agreement.
B. Without limitation, this Contract shall be subject to the terms and conditions of
the RSP Agreement and Program Reyuirements for the entire Term regardless of the term of
RSP Agreement.
Section 2.2 HOME Funds
A. The Department shall make a Commitment of Funds to RSP in an amount not to
exceed [ I AND NO/100 DOLLARS in Project
funds and ~ ] AND NO/100 DOLLARS in soft
costs for [the acquisition and Rehabilitation and New Construction and Recanstruction and
Refinancing] of the housing unit located at [ ] which [is owned or will be
purchased] by Qualified Household and occupied as their primary residence in accordance with
the Program Requirements.
OR
The Department shall make a Commitment of Funds under the under the HOME Tenant
Based Rental Assistance Program to RSP in an amount not to exceed r I
AND NO/100 DOLLARS 1) in Project funds in accordance with the
Program Requirements.
B. To the extent funds are available, the Commitment of Funds shall be made in the
Reservation System under the following set-aside:
❑ Homeowner Rehabilitation Assistance ("HRA") Set-Aside
(10 TAC §§53.30-32)
❑ Homeowner Rehabilitation with Refinance Assistance ("HRA") Set-Aside
(10 TAC §§5330-32)
❑ Homebuyer Assistance ("HBA") Set-Aside (10 TAC §§53.40-42)
❑ Contract for Deed Conversion ("CFDC") Set-Aside (10 TAC §§53.50-52)
❑ Tenant-Based Rental Assistance ("TBRA") Set-Aside (10 TAC §§53.60-62)
❑ Single-Family Programs for Persons with Disabilities ("PWD") Set-Aside
including the following activities:
❑ HBA (10 TAC §§53.40-42)
❑ TBRA (10 TAC §§53.60-62)
❑ Disaster Relief Set-Aside including the following activities:
❑ HBA (10 TAC §§53.40-42)
❑ TBRA (10 TAC §§53.60-62)
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❑ HRA (10 TAC §§53.30-32)
C. Not withstanding any other provision of this Contract to the contrary, the total of
all payments and other obligations incurred by Department under this Contract shall not exceed
the amounts set forth in Subsection A of this Section.
IN WITNESS WHEREOF, each of the Parties has executed this Contract as of the dates
written below.
DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS, an agency of the State of
Texas, established by Chapter 2306, Texas Government
Code
By:
Michael G. Gerber, Authorized Representative
Date:
CITY OF PARIS, a Political Subdivision of the State of
Texas
RSP:
By:
Kevin Carruth, City Manager
Date:
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