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1997-0707_ORANGE , COUNTY OF_Memorandum of Contract No. EC419731 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract GENERAL CONDITIONS 91:4WMI a:1<�IIf<YLi . The SUBRECIPIENT agrees to comply with all applicable federal, state and local and regulations governing the funds provided under this contract. B. Independent Contractor Nothing contained in this Contract is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The SUBRECIPIENT shall at all times remain an independent contractor with respect to the services to be performed under this Contract. The COUNTY shall be exempt from payment of all Jnemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Insurance as the SUBRECIPIENT is an independent contractor. C. Hold Harmless The SUBRECIPIENT shall hold harmless, defend and indemnify the GRANTEE f any all claims, actions, suits, charges and judgments whatsoever that arise out of SUBRECIPIENT's performance or nonperformance of the services or subject matter called for this Contract. D. Workers' Compensation The SUBRECIPIENT shall provide Workers' Compensation Insurance coverage for involved in the performance of this contract. E. Insurance & Bondine The SUBRECIPIENT shall carry sufficient insurance coverage to protect contract from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase blanket fidelity bond covering all employees in an amount equal to cash advances from I COUNTY. The SUBRECIPIENT shall comply with the bonding and insurance requirements Attachment B of OMB Circular A-110, Bonding and Insurance. -1- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 F. Grantor Recognition 2 The SUBRECIPIENT shall insure recognition of the role of the grantor agency in 3 providing services through this Contract. All activities, facilities and items utilized pursuant to this 4 Contract shall be prominently labeled as to funding source. In addition, the SUBRECIPIENT will 5 include a reference to the support provided herein in all publications made possible with funds made 6 available under this Contract. 7 G. Amendments 8 COUNTY or SUBRECIPIENT may amend this Contract at any time provided that such 9 amendments make specific reference to this Contract, and are executed in writing, signed by a duly 10 authorized representative of both organizations. Such amendments shall not invalidate this Contract, 11 nor relieve or release COUNTY or SUBRECIPIENT from its obligations under this Contract. Any 12 proposed amendment to this Contract shall be submitted to and approved by the COUNTY, prior to 13 commencement by COUNTY of any activity covered by said amendment. 14 COUNTY may, in its discretion, amend this Contract to conform with federal, state or 15 local governmental guidelines, policies and available funding amounts, or for other reasons. If such 16 amendments result in a change in the funding, the scope of services, or schedule of, the activities to 17 be undertaken as part of this Contract, such modifications will be incorporated only by written 18 amendment signed by a duly authorized representative of both organizations. 19 H. Suspension or Termination 20 In the event of SUBRECIPIENT s failure to comply with the provisions of this Contract 21 and pursuant to 24 CFR 85.43 and 85.44, COUNTY may withhold or require SUBRECIPIENT 22 reimbursement of funds, and/or terminate this Contract, and/or allocate funds previously assigned to 23 this Contract to another eligible project(s) within the Urban County. 24 Either party may terminate this Contract at any time by giving written notice to the other 25 party of such termination and specifying the effective date thereof at least 30 days before the effective 26 date of such termination. In the event of any termination for convenience, all finished or unfinished 27 documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared 28 11 by SUBRECIPIENT under this Contract shall, at the option of the COUNTY become the property -2- Exhibit "A" to COUNTY/S UB RECIPIENT HOME Contract 1 the COUNTY, and SUBRECIPIENT shall be entitled to receive just and equitable compensation for 2 any satisfactory work completed on such documents or materials prior to the termination. 3 COUNTY may also suspend or terminate this Contract, in whole or in part, if 4 SUBRECIPIENT materially fails to comply with any term of this Contract, or with any of the rules, 5 regulations or provisions referred to herein; and the COUNTY may declare the SUBRECIPIENT 6 ineligible for any further participation in COUNTY contracts, in addition to other remedies as 7 provided by law. In the event there is probable cause to believe the SUBRECIPIENT is in 8 noncompliance with any applicable rules or regulations, the COUNTY may withhold funds until 9 such time as the SUBRECIPIENT is found to be in compliance by the COUNTY, or is otherwise 10 adjudicated to be in compliance. 11 H. ADMINISTRATIVE REQUIREMENTS 12 A. Financial Management 13 1. Accounting Standards 14 The SUBRECIPIENT agrees to comply with Attachment C of OMB Circular A-110 15 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate 16 internal controls, and maintain necessary source documentation for all costs incurred. 17 2. Cost Principles 18 The SUBRECIPIENT shall administer its program in conformance with OMB 19 Circulars A-122, "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for 20 Educational Institutions," (and if the SUBRECIPIENT is a governmental or quasi -governmental 21 agency, the applicable sections of 24 CFR Part 85, "Uniform Administrative Requirements for 22 Grants and Cooperative Agreements to State and Local Governments,") as applicable. These 23 principles shall be applied for all costs incurred whether charged on a direct or indirect basis. 24 B. Documentation and Record -Keening 25 1. Records to be Maintained 26 The SUBRECIPIENT shall maintain all records required by the federal regulatic 27 specified in 24 CFR Parts 570.503(b)(2), 570.506, 570.507 and 570.508 and that are pertinent 28 the activities to be funded under this Contract. Such records shall include but not be limited to: -3- I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. These records shall be kept available at SUBRECIPIENT's office during the project's period and thereafter for three (3) years from the date SUBRECIPIENT receives final) from this contract. 2. Retention The SUBRECIPIENT shall retain all records pertinent to expenditures incurred un this contract for a period of three (3) years after the termination of all activities funded under Contract, or after the resolution of all Federal audit findings, which ever occurs later. Records non -expendable property acquired with funds under this Contract shall be retained for three (3) yt after final disposition of such property. Records for any displaced person must be kept for three years after he/she has received final payment. 3. Client Data The SUBRECIPIENT shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided Such information shall be made available to COUNTY monitors or their designees for review upon request. 28 II/// ee 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract The SUBRECIPIENT shall maintain real property inventory records which clearly) identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8). 5. National Objectives The SUBRECIPIENT agrees to maintain documentation that demonstrates activities carried out with funds provided under this Contract meet one or more of the program's national objectives: 1) benefit low/moderate income persons, 2) aid in the prevention elimination of slums or blight, 3) meet community development needs having a particular urgency defined in 24 CFR Part 570.208. SUBRECIPIENT obligation to the COUNTY shall not end until all close-out are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials and equipment), unspent cash advances, program income balances, and receivable accounts to the COUNTY and detemtining the custodianship of records. . .! All SUBRECIPIENT records with respect to any matters covered by this shall be made available to the COUNTY, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the COUNTY or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the SUBRECIPIENT within 30 days after receipt by the SUBRECIPIENT. Failure of the SUBRECIPIENT to comply with the above audit requirements will constitute a violation of this Contract and may result in the withholding of future payments. The SUBRECIPIENT hereby agrees to have an annual agency audit conducted in accordance with current COUNTY policy concerning SUBRECIPIENT audits. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract C. Reporting and Payment Procedures IMMM The SUBRECIPIENT shall submit a detailed contract budget (the form and content be prescribed by the COUNTY) for approval by the COUNTY. The COUNTY and SUBRECIPIENT may agree to revise the budget from time to time in accordance with existing COUNTY policies. 2. Program Income The SUBRECIPIENT shall report quarterly all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this Contract. use of program income by the SUBRECIPIENT shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitation, the SUBRECIPIENT may use such income during the contract period for activities permitted under this Contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the COUNTY at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the COUNTY. Program income generated from cash advance and/or the mere holding of funds must be paid to the COUNTY per 24 CFR 570.504(c) for subsequent return to HUD. Any program income generated from the sale, transfer or change in the use of assets (e.g. real property) acquired or improved in whole or in part by CDBG funds must be returned to the COUNTY in proportion to the CDBG contribution thereof. The SUBRECIPIENT may retain all program income only if that program income is used exclusively for eligible activities, as determined by the "DIRECTOR" , and in accordance with applicable CDBG requirements. SUBRECIPIENT shall keep and maintain appropriate records on the use of any income as may be required by EMA staff since the COUNTY has the responsibility monitoring and reporting program income to HUD. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract In the event of SUBRECIPIENT close-out or change in status of the participati SUBRECIPIENT in the Urban County CDBG Program, any program income at that time or subsequent to the close-out or change in status shall be paid by SUBRECIPIENT to the COUNTY within 90 days thereafter. 3. Indirect Costs If indirect costs are charged, the SUBRECIPIENT will develop an indirect allocation plan for determining the appropriate COUNTY share of administrative costs and shall submit such plan to the COUNTY for approval. wSpammaky'no-MM a. The COUNTY will pay to the SUBRECIPIENT funds available under this Contract based upon information submitted by the SUBRECIPIENT and consistent with an} approved budget and COUNTY policy concerning payments. With the exception of certair advances, payments will be made for eligible expenses actually incurred by the SUBRECIPIENT and not to exceed actual cash requirements. Payments will be adjusted by the COUNTY it accordance with advance fund and program income balances available in SUBRECIPIENT accounts In addition, the COUNTY reserves the right to liquidate funds available under this Contract for cost: incurred by the COUNTY on behalf of the SUBRECIPIENT. b. Payment by the COUNTY to SUBRECIPIENT shall be on a reimbursable basis unless SUBRECIPIENT has been authorized and issued a cash advance at the discretion of the DIRECTOR under this Contract. c. The SUBRECIPIENT is permitted one (1) cash advance under this Contract may be made by the DIRECTOR to SUBRECIPIENT if the following conditions are met: (1) SUBRECIPIENT has demonstrated to DIRECTOR through certification a form prescribed by DIRECTOR and subsequently through performance, its willingness to establish SUBRECIPIENT financial procedures that will minimize the time between the receipt of funds and proper disbursement of such funds. (2) SUBRECIPIENT certifies to DIRECTOR, that S financial management system meets the standards for fund control and accountability as directed -7- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 24 CFR 570.502(a), if a governmental Subrecipient, and 24 CFR 570.502(b), if a non - 2 governmental recipient; and as prescribed in Office of Management and Budget Circular A-87, if a 3 governmental Subrecipient, and Office of Management and Budget Circulars A-122 and A-21 if a 4 non-governmental Subrecipient, as periodically amended. 5 (3) SUBRECIPIENT complies with EMA financial cash advance procedures 6 as defined by HUD in 24 CFR 85.21 Payment regulations and the United States Treasury 7 regulations described in 31 CFR Part 205. These procedures require that upon written receipt of 8 funds from the COUNTY, SUBRECIPIENT shall disburse payment(s) to vendor(s) within five (5) 9 working days and submit evidence of such disbursement(s) (i.e., warrant copies, etc.) to the 10 DIRECTOR. 11 d. If SUBRECIPIENT is subsequently found, by DIRECTOR, to be in 12 noncompliance with Section II.C.4.c.(1) through Section II.C.4.c.(3), SUBRECIPIENT shall in the 13 future be paid on a reimbursable basis. 14 e. Reimbursable basis payments, as referred to in Section 6.a. and/or cash advance 15 described in Section 6.b. shall be made in accordance with EMA financial procedures. In the event 16 of conflict between EMA financial procedures and any applicable statutes, rules or regulations of 17 HUD, including Office of Management and Budget Circular No. A-87, if a governmental 18 Subrecipient, and Office of Management Budget Circular's A-122 and A-21 ,if a non-governmental, 19 the latter shall prevail. 20 Where contract funds are withheld, and at the request and expense of SUBRECIPIENT, 21 COUNTY will accept securities equivalent to the amount withheld. Such substituted security, 22 meeting the requirements of Government Code Section 4590, shall be deposited with COUNTY, 23 with a State or Federally chartered bank as escrow agent. If security is deposited with an escrt 24 agent, it shall be covered by an escrow agreement. 25 5. Progress Reports 26 The SUBRECIPIENT shall submit regular Progress Reports to the COUNTY in t 27 form, content, and frequency as required by the COUNTY. 28 /// I" Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 D. Procurement 2 1. Compliance 3 The SUBRECIPIENT shall comply with current COUNTY policy concerning the 4 purchase of equipment and shall maintain an inventory record of all non -expendable personal 5 property as defined by such policy as may be procured with funds provided herein. All program 6 assets (unexpended program income, property, equipment, etc.) shall revert to the COUNTY upon 7 termination of this Contract. 8 2. OMB Standards 9 The SUBRECIPIENT shall procure materials in accordance with the requirements of 10 Attachment O of OMB Circular A-110. Procurement Standards, and shall subsequently follow 11 I Attachment N, Property Management Standards, covering utilization and disposal of property. 12 3. Travel 13 The SUBRECIPIENT shall obtain written approval from the COUNTY for any travel 14 outside the metropolitan area with funds provided under this Contract. 15 4. Relocation. Acquisition and Displacement 16 The SUBRECIPIENT agrees to comply with 24 CFR 570.606 relating to the 17 acquisition and disposition of all real property utilizing grant funds, and to the displacement of 18 persons, businesses, nonprofit organizations and farms occurring as a direct result of any acquisition 19 of real property utilizing grant funds. The SUBRECIPIENT agrees to comply with applicable 20 COUNTY Ordinances, Resolutions, and Policies concerning displacement of individuals from their 21 residences. 22 III. PERSONNEL & PARTICIPANT CONDITIONS 23 A. Civil Rights 24 1. Compliance 25 The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 26 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of the Title I of the 27 Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The SUBRECIPIENT will not discriminate against any employee or applicant employment because of race, color, creed, religion, ancestry, national origin, sex, disability or handicap, age, marital status, or status with regard to public assistance. The SUBRECIPIENT affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms and selection for training, including apprenticeship. The SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. The SUBRECIPIENT agrees to comply with any federal regulations issued to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohi discrimination against the handicapped in any federally assisted program. The COUNTY sl provide the SUBRECIPIENT with any guidelines necessary for compliance with that portion of regulations in force during the term of this Contract. The SUBRECIPIENT agrees that it shall be committed to carry out pursuant to COUNTY specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965. The (Grantee) shall provide Affirmative Action guidelines to the SUBRECIPIENT to assist in the formulation of such program. The SUBRECIPIENT shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 10- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 2. WZMBE 2 The SUBRECIPIENT will use its best efforts to afford minority and women -owned 3 business enterprises the maximum practicable opportunity to participate in the performance of this 4 Contract. As used in this contract, the term "minority and female business enterprise" means a 5 business at least fifty-one (5 1) percent owned and controlled by minority group members or women. 6 For the purpose of this definition, "minority group members" are Afro-Americans, Spanish 7 speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American 8 Indians. The SUBRECIPIENT may rely on written representations by SUB-SUBRECIPIENT's' 9 regarding their status as minority and female business enterprises in lieu of an independent 10 11investigation 11 3. Access to Records 12 The SUBRECIPIENT shall furnish and cause each of its sub-SUBRECIPIENT's to 13 furnish all information and reports required herein and will permit access to its books, records and 14 accounts by the COUNTY, HUD or its agents, or other authorized Federal officials for purposes of 15 investigation to ascertain compliance with the rules, regulations and provisions stated herein. 16 4. Notifications 17 The SUBRECIPIENT will send to each labor union or representative of workers with 18 which it has a collective bargaining Contract or other contract or understanding, a notice, to be 19 provided by the agency contracting officer, advising the labor union or worker's representative of the 20 SUBRECIPIENT's commitments herein, and shall post copies of the notice in conspicuous places 21 available to employees and applicants for employment. 22 5. EEO/AA Statement 23 The SUBRECIPIENT will, in all solicitations or advertisements for employees placed 24 by or on behalf of the SUBRECIPIENT, state that it is an Equal Opportunity or Affirmative Action 25 employer. 26 9/// 27 II/// 28 II/// -11- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 6. Subcontract Provisions The SUBRECIPIENT will include the provisions of Paragraphs VIII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, sol that such provisions will be binding upon each sub-SUBRECIPIENT or vendor. C. Employment Restrictions 1. Prohibited Activity The SUBRECIPIENT is prohibited from using funds provided herein, or employed in the administration of the program for: political activities, sectarian or religious lobbying, political patronage, and nepotism activities. 2. OSHA Where employees are engaged in activities not covered under the Occupational and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants' health or safety. MFFTR7*M=I. . The SUBRECIPIENT agrees to comply with the requirements of the Secretary in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act (40 U.S.C. 276, 327-333) and all applicable federal, state and local laws and regulations pertaining to labor standards insofar as acts apply to the performance of this Contract. The SUBRECIPIENT shall maintain documen which demonstrates compliance with hour and wage requirements of this part. Such documen shall be made available to the COUNTY for review upon request. The SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this contract, shall comply with federal requirements adopted by the COUNTY pertaining to such contracts and with the requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5 12- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing herein is intended to relieve the SUBRECIPIENT of its obligation, if any, to require payment of the higher rate. The SUBRECIPIENT shall cause or require to be inserted in full, in all such Contracts subject to such regulations, provisions meeting the requirements of this paragraph, for such Contracts in excess of $10,000.00. 4. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3, the regulations set forth in 24 135, and all applicable rules and orders issued herein prior to the execution of this Contract, shall be a condition of the federal financial assistance provided under this Contract and binding upon the COUNTY, the SUBRECIPIENT and any sub -SUB RECIPIENT. Failure to fulfill these requirements shall subject the COUNTY, the SUBRECIPIENT and any sub -SUB RECIPIENT, their successors and assigns, to those sanctions specified by the Contract through which federal assistance is provided. The SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would prevent compliance with requirements. The SUBRECIPIENT further agrees to comply with these "Section 3" and to include the following language in all subcontract executed under this Contract: "The work to be performed under this Contract is a project assigned under providing direct federal financial assistance from HUD and is subject to the requirements Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to 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 persons residing in the areas of the project." The SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. 13- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract b. Notifications The SUBRECIPIENT agrees to send to each labor organization or representative workers with which it has a collective bargaining Contract or other contract or understanding, any, a notice advising said labor organization or worker's representative of its 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. The SUBRECIPIENT will include Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the sub-SUBRECIPIENT is in violation of regulations issued by the Grantor Agency. The SUBRECIPIENT will not subcontract with any sub-SUBRECIPIENT where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the sub- SUBRECIPIENT has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. A signment/Transfer The SUBRECIPIENT shall not assign or transfer any interest in this Contract without the prior written consent of the COUNTY thereto; provided, however, that claims for money due or to become due to the SUBRECIPIENT from the COUNTY under this Contract may be assigned to a bank, trust company, or other financial institution without much approval. Notice of any such assignment or transfer shall be furnished promptly to the COUNTY. 2. Hatch Act The SUBRECIPIENT agrees that no funds provided, nor personnel employed this Contract, shall be in any way or to any extent engaged in the conduct of political activities violation of Chapter 15 of Title V United States Code. -14- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 3. Conflict of Interest The SUBRECIPIENT agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that if presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Contract. The SUBRECIPIENT further covenants that in the performance of this Contract no person having such a financial interest shall be employed or retained by the SUBRECIPIENT herein. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the COUNTY or of any designated public agencies or SUBRECIPIENTS which are receiving funds under the CDBG Entitlement program. 4. Subcontracts a. Approvals The SUBRECIPIENT shall not enter into any subcontracts with any agency individual in the performance of this Contract without the written consent of the COUNTY prior the execution of such Contract. b. Monitoring The SUBRECIPIENT will monitor all subcontracted services on a regular to assure contract compliance. Result of monitoring efforts shall be summarized in written rep and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c. Content The SUBRECIPIENT shall cause all of the provisions of this Contract in entirety to be included in and made a part of any subcontract executed in the performance of Contract. The SUBRECIPIENT shall undertake to insure that all subcontracts awarded the performance of this Contract shall be awarded on a fair and open competition basis. -15- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract copies of all subcontracts shall be forwarded to the COUNTY along with documentation the selection process. 5. Copyright If this contract results in any copyright able material, the COUNTY and/or agency reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, or otherwise use and to authorize others to use, the work for government purposes. 6. Religious Organization The SUBRECIPIENT agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interest, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570.2000). 7. Drug Free Workplace SUBRECIPIENT certifies that it will maintain a drug-free workplace as defined by on project(s) funded by this Agreement. 8. Excessive Force All parties to this Agreement certify to a policy against use of excessive force as defined by HUD. IV. ENVIRONMENTAL CONDITIONS A. Air and Water The SUBRECIPIENT agrees to comply with the following regulations insofar as apply to the performance of this Contract: o Clean Air Act, 42 U.S.C., 1857, et seq. o Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., amended 1318 relating to inspection, monitoring, entry, reports, and information, as well as requirements specified in said Section 114 and Section 308, and all regulations and guidelines i thereunder. o Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R, Parts 50 and 58, as amended. o National Environmental Policy Act of 1969. -16- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 o HUD Environmental Review Procedures (24 CFR, Part 58). 2 B. Flood Disaster Protection 3 The SUBRECIPIENT agrees to comply with the requirements of the Flood Disaster 4 Protection act of 1973 (P.L. 2234) in regard to the sale, lease or other transfer of land acquired, 5 cleared or improved under the terms of this contract, as it may apply to the provisions of this 6 contract. 7 C. Tread -Based Paint 8 The SUBRECIPIENT agrees that any construction or rehabilitation of residential 9 structures with assistance provided under this contract shall be subject to HUD Lead -Based Paint 10 Regulations at 24 CFR 570.608, and 24 CFR Part 35, and in particular Sub -Part B thereof. Such 11 regulations pertain to all HUD -assisted housing and require that all owners, prospective owners, and 12 tenants or properties constructed prior to 1978 be properly notified that such properties may include 13 lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the 14 symptoms, treatment and precautions that should be taken when dealing with lead-based paint 15 poisoning. 16 D. Historic Preservation 17 The SUBRECIPIENT agrees to comply with the Historic Preservation requirements set 18 forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the 19 procedures Set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for 20 Protection of Historic Properties, insofar as they apply to the performance of this contact. 21 In general, this requires concurrence from the State Historic Preservation Officer for all 22 rehabilitation and demolition of historic properties that are fifty years old or older or that are included 23 on a Federal, State, or local historic property list. 24 1/// 25 26 27 28 -17- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract V. SPECIAL HOME PROVISIONS If this Agreement is funded by HOME Investment Partnership Program, the following is applicable: A. Section 92.252 Oualification as Affordable Housing and Income Targeting; Rental Housine All applicable housing assisted with HOME Investment Partnership Funds must meet the following Affordability requirements: 1. Rent Limitation A rental housing project (including the non -owner -occupied units in purchased with HOME funds in accordance with 92.254) qualifies as affordable housing under part only if the project: a. Bears rents not greater than the lesser of (1) The fair market rent for existing housing for comparable units in the area established by HUD under 888.111 of this title, less the monthly allowance for the utilities services (excluding telephone) to be paid by the tenant; or (2) The rent that does not exceed 30 percent of the adjusted income of a whose gross income equals 65 percent of the median income for the area, as determined by with adjustments for number of bedrooms in the unit, except that HUD, which may establish ceilings higher or lower than 65 percent of the median for the area on the basis of HUD's that such variations are necessary because of prevailing levels of construction costs or fair rents, or unusually high or low family incomes. In determining the maximum monthly rent that be charged for a unit that is subject to this limitation, the owner or participating jurisdiction subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by tenant. HUD will provide average occupancy per unit and adjusted income assumptions to be in calculating the maximum rent allowed under this paragraph I.A.(2) of this section; b. Has not less than 20 percent of the rental units (1) Occupied by very low-income families who pay as a contribution toward reni (excluding any federal or state rental subsidy provided on behalf of the family) not more than 3C M Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 percent of the family's monthly adjusted income as determined by HUD. To obtain the maximum 2 monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating 3 jurisdiction multiplies the annual adjusted income of the tenant family by 30 percent and divides by 4 12 and, if applicable, subtracts a monthly allowance for any utilities and services (excluding 5 telephone) to be paid by the tenant; or 6 (2) Occupied by very low-income families and bearing rents not greater than 30 7 percent of the gross income of a family whose income equals 50 percent of the median income for 8 the area, as determined by HUD, with adjustment for smaller and larger families, except that HUD, 9 may establish income ceilings higher or lower than 50 percent of the median for the area on the basis 10 of HUD's findings that such variations are necessary because of prevailing levels of construction 11 costs or fair market rents, or unusually high or low family incomes. In determining the maximum 12 monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating 13 jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to 14 be paid by the tenant. HUD will provide average occupancy per unit assumptions to be used in 15 calculating the maximum rent allowed under paragraph l.b.(2) of this section; 16 c. Is occupied only by households that qualify as low-income families; 17 d. Is not refused for leasing to a holder of a Certificate of Family Participation under 18 24 CFR part 882 (Rental Certificate Program) or a rental voucher under 24 CFR part 887 (Rental 19 Voucher Program) or to the holder of a comparable document evidencing participation in a HOME 20 tenant -based assistance program because of the status of the prospective tenant as a holder or such 21 certificate of family participation, rental voucher, or comparable HOME tenant -based assistance 22 document; and 23 24 25 /Il 26 27 -19- 1 2 3 4 5 3 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract e. Will remain affordable without regard to the term of any mortgage or the Df ownership, pursuant to deed restrictions, covenants running with the land, or other approved by HUD for not less than the appropriate period, beginning after project completion, specified in Table A, below. TABLE A Activity Minimum period of Affordability in years Rehabilitation or acquisition of existing housing per unit amount of HOME funds: Under $15,000 ...................................................... 5 $15,000 to $40,000 ...............................................10 Over $40,000.......................................................15 New construction or acquisition of newly constructed housing ........................................................................20 2. Rent schedule and utility allowances The participating jurisdiction must review and approve rents proposed by the for units with "flat rents," i.e., units subject to the maximum rent limitations in paragraph l.a.(1 I.a.(2), I.b.(l), or l.b.(2) of this section, and, if applicable, must review and approve, for all uni subject to the maximum rent limitations paragraph (a) of this section, the monthly allowance proposed by the owner, for utilities and services to be paid by the tenant. The owner mu the income of each tenant household living in low-income units at least annually. The monthly rent must be recalculated by the owner and reviewed and approved by the jurisdiction annually, and may change as changes in the applicable gross rent amounts, income adjustments, or the monthly allowance for utilities and services warrant. Any increase in for lower income units is subject to the provisions of outstanding leases, in any event, the Kill I. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents. 3. Increases in tenant income Rental housing qualifies as affordable housing despite a temporary noncompliance with paragraph (a)(2) or (a)(3) of this section, if the noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to HUD are being taken to ensure that all vacancies are filled in accordance with this section until the noncompliance is corrected. Tenants who no longer qualify as low-income families must pay as rent not less than 30 percent of the family's adjusted monthly once, as re -certified annually. 4. gdiustment of qualifying rent HUD may adjust the qualifying rent established for a project under paragraph (a)(1) of this section, only if HUD finds that an adjustment is necessary to support the continued financial viability of the project and only by an amount that HUD determines is necessary to maintain continued financial viability of the project. HUD expects that this authority will be used sparingly. Adjustments in fair market rents and in median income over time should help maintain the financial of a project within the qualifying rent standard as specified in paragraph 1. of this section. The lease between a tenant and an owner of rental housing assisted with funds must be for not less than one year, unless by mutual agreement between the tenant and owner. MOLIOMIDUT01w The lease may not contain any of the following provisions: a. Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a in favor of the owner in a lawsuit brought in connection with the lease; b. Treatment of property. Agreement by tenant that the owner may take, hold, sell personal property of household members without notice to the tenant and a court decision on the of the parties. This prohibition, however, does not apply to an agreement by the tenant -21- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 concerning disposition of personal property remaining in the housing unit after the tenant has moved' 2 out of the unit. The owner may dispose of this personal property in accordance with state law; 3 c. Excusing owner from responsibility. Agreement by the tenant not to hold the 4 owner or the owner's agents legally responsible for any action or failure to act, whether intentional 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 negligent; d. Waiver of notice. Agreement of the tenant that the owner may institute a without notice to the tenant; e. Waiver of legal proceedings. Agreement by the tenant that the owner may the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; f. Waiver of a jury trial. Agreement by the tenant to waive any right to a trial g. Waiver of right to appeal court decision. Agreement by the tenant to waive tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with lease; and h. Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the loses. Mrat—IMPTI.1 . An owner may not terminate the tenancy or refuse to renew the lease of a tenant housing assisted with HOME funds except for serious or repeated violation of the terms and 23 11 conditions of the lease; for violation of applicable federal, state, or local law; or for other good cause. 24 25 26 27 28 termination or refusal to renew must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action. ENIMFIM,,, An owner of rental housing assisted with HOME funds must maintain the premises compliance with all applicable housing quality standards and local code requirements. -22- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 5. Tenant selection 2 An owner of rental housing assisted with HOME funds must adopt written tenant 3 selection policies and criteria that- 4 a. Are consistent with the purpose of providing housing for very low-income and 5 low-income families, 6 b. Are reasonably related to program eligibility and the applicants' ability to perform 7 the obligations of the lease, 8 c. Give reasonable consideration to the housing needs of families that would have a 9 preference under 960.211 (Federal selection preferences for admission to Public Housing) of this 10 title; and 11 d. Provide for- 12 (1) The selection of tenants from a written waiting list in the chronological 13 order of their application, insofar as is practicable; and 14 (2) The prompt written notification to any rejected applicant of the grounds 15 for any rejection. 16 C. Section 92,254 Oualification As Affordable Housing: Homeownership 17 1. Purchase with or without rehabilitation 18 Housing that is for purchase by a family qualifies as affordable housing only if the 19 housing: 20 a. Has an initial purchase price that does not exceed 95% of the medium purchase 21 price for the type of single family housing (1-to 4-family residence, condominium unit, combination 22 manufactured home and lot, or manufactured home lot) for the local jurisdiction (including any 23 applicable high-cost mortgage limit published by HUD in the FEDERAL REGISTER) under HUD's 24 single family insuring authority under the National Housing Act. For a cooperative unit, the 25 purchase price for a cooperative share may not exceed the balance remaining after subtracting from 26 the 1-family mortgage limit an amount equal to the blanket mortgage covering the cooperative 27 development which is attributable to this cooperative unit; and -23- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract b. Has an estimated appraised value after any repair needed to meet standards in 92.251 that does not exceed the appropriate mortgage limit described in (a)(1)(i) of this section; c. Is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase; residence; and d. Is made available for initial purchase only to first-time homebuyers; and e. Is made available for subsequent purchase only - (1) To a low-income family that will use the property as its principal (2) At a price consistent with guidelines that are established by the participating jurisdiction and determined by HUD to be appropriate - improvements, and (i) To provide the owner with a fair return on investment, including any (ii) To ensure that the housing will remain affordable to a range of low-income homebuyers for a period of 20 years for newly constructed housing otherwise for 15 years. Housing remains affordable if the subsequent purchaser's payments of principal, interest, taxes, and insurance do not exceed 30 percent of the gross income a family with an income equal to 75 percent of median income for the area, as determined by HL with adjustments for smaller and larger families. 2. Rehabilitation not involving purchase Housing that is currently owned by a family qualifies as affordable housing only if - a. The value of the property, after rehabilitation, does not exceed the mortgage lin for the type of single family housing (1- to 4 -family residence condominium unit, combing manufactured home and lot, or manufactured home lot) for the area (including any applicable I cost mortgage limit published by HUD in the FEDERAL REGISTER) under HUD's single fa. insuring authority under the National Housing Act (see 24 CFR 201.10, 203.18, 203.18a, 203. and 234.27); and -24- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract b. The housing is the principal residence of an owner whose family qualifies as al low-income family at the time HOME funds are committed to the housing. D. Office of Management and Budget (OMB) A -102 Federal Management Circular 74-7 has been replaced with Office of Management and Budget (OMB) A -102. In the event it is determined that subject project(s) does not substantially meet all the requirements of the HOME Investment Partnership Program, SUBRECIPIENT will cooperate with County in the return of any funds expended on ineligible activities. Funds so returned shall be made available for other Housing Rehabilitation Activities as per terms of this agreement. E. Monitoring SUBRECIPIENT will cooperate in the County monitoring of HOME Investm Partnership Funds annually. In particular, SUBRECIPIENT will cooperate with County monitoring all rental projects funded. 16 GSBJGMW5A2-5 17 (04/29/96) 18 -25- 1 2 3 4 5 6 7 8 9 10 11' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 m 0 0 Contract No. EC41973 COUNTY OF ORANGE HOUSING AND COMMUNITY DEVELOPMENT CITY ADMINISTERED HOME Program Year V TITLE OF PROJECT: City of San Juan Capistrano - "First Time Home Buyer Program" (FTHB) MEMORANDUM OF CONTRACT entered into this day of 1997 BY AND BETWEEN m RECITALS City of San Juan Capistrano, a municipal corporation, in the State of California, and hereinafter referred to as "CITY". COUNTY OF ORANGE, a political sub- division of the State of California and recognized Urban County under the Federal Housing and Community Development Act of 1974 (Public Law 93-383), as amended, hereinafter referred to as "COUNTY". This Contract is made with reference to the following facts; WHEREAS, the COUNTY has applied for and received funds from the United States Government pursuant to the HOME Investment Partnership Program (enacted by the National Affordable Housing Act of 1990), hereinafter referred to as "HOME"; and WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement dated July 21, 1993 in which both parties agreed to cooperate in the undertaking, or assist in the undertaking, of community development and housing assistance activities; and 1 1 2 3 4 5 6 7 .9 10 11 12' 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Contract No. EC41973 WHEREAS, CITY was previously awarded funding under the HOME Program, which on September 10, 1996 was re -programmed for use in the First Time Home - Buyer program by action of the Orange County Board of Supervisors; and WHEREAS, CITY has submitted to COUNTY an application for funding of a project described herein; and WHEREAS, HUD has accepted and certified the aforementioned Final Annual Action Plan, on July 16, 1996; as well as the reprogramming for this activity. NOW, THEREFORE, IT IS AGREED by and between the parties that the following provisions as well as all applicable Federal Regulations, including 24 CFR Part 92, and appropriate State and County laws and regulations including the attached GENERAL CONDITIONS, identified as Exhibit "A", and Exhibit `B" are part of this Contract. I. SCOPE OF SERVICES A. ACTIVITIES CITY will act as PROJECT MANAGER and will be responsible for administering a Year V HOME project described as follows in a manner satisfactory to the COUNTY and consistent with any standards required as a condition of providing these funds: Prot Description: The City of San Juan Capistrano will utilize HOME funding for its "First Time Home - Buyer Program" (FTHB). The program will provide assistance with down payments for households with annual incomes pursuant to HUD regulations. Program Deliver Activity No. 1: Second mortgage loan/Down payment E 1 2 3 4 5 6 7 a 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 Contract No. EC41973 General Administration: CITY shall provide the oversight, administration and project management necessary to accomplish all contracted activities. Housing Affordability: The housing which is for acquisition by a family must be affordable as defined in 24 CFR Part 92.254. The resale/recapture requirements are intended to assure that affordable housing is maintained in the community pursuant to HUD regulations. Deed restrictions regarding affordability will be placed on each property. B. LEVELS OF ACCOMPLISHMENT Activity Level of Accomplishment Activity No. 1: Second trust deed/mortgage loans 20 Home Buyers C. BUDGET 1. This contract is in an amount not to exceed $265,000.00 (Two Hundred Sixty-five Thousand Dollars and 00 cents). 2. Funds shall be used for the following items: Costs relating to assisting with down payments for first time homebuyers. Furthermore, compensation may be reallocated to address any costs incurred for previously unbudgeted uses eligible under the applicable State and Federal regulations upon written request from CITY and written approval by the DIRECTOR, particularly the Federal regulations at 24 CFR Parts 92.205 - 92.215 and 254(a). ll. PERFORMANCE MONITORING The COUNTY will, in accordance with Section LILA. of this Contract, monitor the performance of the CITY against the goals and performance standards required herein. Substandard performance as determined by COUNTY will constitute non-compliance with this Contract and COUNTY may 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 Contract No. EC41973 thereafter terminate the Contract pursuant to Section H of Exhibit A "General Conditions", attached hereto. CITY agrees: 1. To comply with all applicable Federal and COUNTY regulations, as may be periodically revised by HUD, Office of Management and Budget, or other Federal agencies and COUNTY. 2. To fully cooperate with the COUNTY on matters concerning the scheduled completion and submittal of materials, information and documentation requested by the COUNTY to comply with Federal Grantee Performance Reporting requirements. Failure to do so may result in the COUNTY withholding future payment. 3. To comply with COUNTY procedures concerning the Grantee Performance Report (GPR) Form. The CITY also acknowledges that the GPR FORM is a monitoring tool that will be reviewed and evaluated by County to determine CITY's level of accomplishments relative to this Contract. 4. To fully comply with the terms and conditions of the subject agreement. Failure to do so may result in the suspension or termination of said agreement. Any terms or conditions proposed subsequent to the effective date of this contract are invalid until such time that the DIRECTOR has considered and approved said terms and conditions in writing. Any revisions to the terms and conditions set forth herein shall be incorporated into this agreement in accordance with Section I.G. (Amendments) of Exhibit "A" attached. H. TIME OF PERFORMANCE Services of the CITY shall begin on September 10, 1996 and funds shall be committed by 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 Contract No. EC41973 June 30, 1998. The term of this contract and provisions herein may be extended to cover an additional time period as specified in Section V.B. of this Contract. III. PAYMENTS • ► V 4J117_A&(611M" It is expressly agreed and understood that the total amount to be paid by the COUNTY under this Contract shall not exceed the amount stated in Section I.C. of this Contract. B. REIMBURSEMENT On a monthly basis CITY may invoice COUNTY for reimbursement of eligible costs (See Exhibit A). Concurrently with its request for the aforementioned funds, CITY shall submit to the COUNTY the following support documentation: Copies of paid invoices, receipts, payroll records, bank statements, canceled checks and other items adequate to document project expenditures. CITY shall also provide a performance report for the time period identified in the aforementioned reimbursement invoice, including Grantee Performance Direct Benefit Activity Information addressing its level of performance with each activity undertaken relative to the scope of services set forth in Section I., herein. Compensation of CITY reimbursement invoices will depend upon appropriate and timely performance of objectives as set forth above. COUNTY may withhold payment if CITY fails to meet measurable objectives as set forth in Sections I.A. and I.B. above. No payment will be authorized if any preceding month's reports or invoices are not submitted to COUNTY. V. SPECIAL CONDITIONS A. DEFINITIONS For the purposes of this Contract the following definitions shall apply: 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 Contract No. EC41973 1. PROJECT MANAGER: The City of San Juan Capistrano 2. DIRECTOR: Director of the Orange County Housing and Community Development Department, or his designee. 3. REIMBURSABLE BASIS: The CITY will provide the funds for the project and will submit proof of payment to COUNTY, whereupon after approval by COUNTY, COUNTY will repay the CITY. B. PROJECT FUNDING 1. CITY shall submit any invoices for expenditure under this Contract within 90 days of the Contract expiration date. 2. The date for PROJECT completion and expenditure of all funds may be extended by the DIRECTOR for a period not to exceed twelve (12) months from June 30, 1998. Any such extension must be in writing and signed by the DIRECTOR. In the event of such extension the deadline for submittal of invoice shall be 90 days after the new completion date. After Contract expiration, all unexpended funds remaining from this Contract may be allocated by COUNTY to other eligible programs. 3. Prior to the DIRECTOR authorizing any contract extension, the COUNTY must receive a written request from an officially recognized CITY representative (i.e. Director, Mayor, City Manager) to extend this contract. Said written request must include a revised budget for funds being extended, if that budget is different in scope of services from the originally agree upon scope of services. 4. Any request for the extension of this contract must be received by the DIRECTOR at least forty-five (45) days prior to June 30, 1998. 2 1 2 3 4 5 6' 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 Contract No. EC41973 5. Failure to extend this contract prior to the agreed upon termination date may result in the COUNTY withholding payment of future payments, terminating this contract and/or reallocating all unobligated funds to be used on other eligible projects managed through the HOME FU MGM) 6. After Contract expiration, all unexpended funds remaining from this Contract may be allocated by COUNTY to other eligible programs. C. PROGRAM INCOME 1. The CITY shall comply with regulations set forth in TITLE 24 CFR 570.504, as well as related federal, state or County regulations concerning the reporting and payment procedures for program income, as set forth in Section II.C. of the attached Exhibit "A". 2. All Program Income accrued shall be drawn down prior to the CITY receiving any reimbursement from grant funds administered by COUNTY. D. CITY agrees: 1. That DIRECTOR shall periodically evaluate the CITY's progress in complying with the terms of this Contract. CITY shall cooperate fully during such monitoring. DIRECTOR shall report the findings of each monitoring to the CITY. DIRECTOR may, at his discretion, report said findings to the Orange County Board of Supervisors. If it is determined by the Board of Supervisors that CITY performance to or progress on performance is unsatisfactory, the Board of Supervisors may terminate this Contract. In addition, the Board of Supervisors may require the CITY to reimburse the COUNTY any funds that it determined to be improperly expended or not expended on the project in a timely manner based on applicable HOME Program Regulations. 2. That this Contract is conditional upon COUNTY being funded by HUD, and 2 3 4 5 6 8 9 10 11, 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 the release of funds to COUNTY. 0 Contract No. EC41973 3. To comply with HUD Environmental Review pursuant to 24 CFR, Part 50 which implements Section 102(2)(c) of the National Environmental Policy Act of 1969. 4. To comply with the California Environmental Quality Act. 5. That funds may not be disbursed until the required environmental documentation clearance has been issued. 6. To comply with all applicable HUD regulations concerning administrative requirements, as set forth in Section 11. (ADMINISTRATIVE REQUIREMENTS) of the attached Exhibit "A" (General Conditions), and maintain records as to services provided and total number of persons served through the project, including percentage of: low income persons and very -low income persons as defined by HUD; persons by ethnicity; female -headed households. Such information shall be available for periodic monitoring by representatives of the County or HUD and shall be submitted in report form to COUNTY per County of Orange procedures. E. MODIHCATIONS/TRANSFERS 1. Any proposed modification or change in use of real property acquired in whole or in part by HOME funds from the use planned at the time of the acquisition, including disposition, must be reported by CITY to the COUNTY within ten (10) day of such change, and receive written approval by DIRECTOR prior to modification or change in use. 2. Housing assisted with HOME funds that does not meet the affordability requirements for the period specified in Section I.A. above, must be repaid as follows: Any repayment of HOME funds (including repayment required if the housing no longer qualified as affordable housing), and any payment of interest or other return on the investment of HOME funds, must be deposited in Orange County's HOME Investment Trust Fund local account, except that if 2 3 4 5 6 7' 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 MIA 0 0 Contract No. EC41973 Orange County is not a participating jurisdiction when the payment or repayment is made, the funds must be remitted to HUD and reallocated in accordance with 24 CFR Section 92.454. F. AMENDMENTS Any amendment to this contract shall be completed in accordance with Section I.G. (Amendments) of Exhibit "A" attached. G. AUDITS 1. The Federal government requires that Cities receiving $25,000 or more in Federal assistance in a fiscal year must secure an audit. Agencies receiving $25,000 or more must meet this requirement through one of the following methods. Failure to meet this requirement will result in the COUNTY denying CITY reimbursement requests. A. If CITY currently conducts audits of all its funding sources, including HOME, CITY must submit a copy of its most recent audit to the COUNTY. B. If CITY currently conducts audits of its other funding sources but has neither received nor included HOME in the past, the scope of the audit would be modified to incorporate HOME audit requirements. C. If CITY does not have a current audit process in place, CITY will be required to develop a process that meets the DIRECTOR's approval. 2. CITY agrees to obtain an annual audit within 180 days after the end of each accounting year. Copies of said audit shall be transmitted to the COUNTY within 30 days after being received and approved by the CITY. DIRECTOR shall have the right to ensure that necessary corrective actions are made by the CITY for any audit findings pertinent to CITY handling of funding attributable to the HOME Program per Federal requirements. 9 2' 3 4 i 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 s Contract No. EC41973 3. All CITY records with respect to any matters covered by this Contract shall be made available to the COUNTY or the United States government at any time during the normal business hours, as often as the COUNTY deems necessary to audit, examine or make excerpts or transcripts of relevant data. Any deficiencies noted in audit reports must be fully cleared by the CITY within 30 days after the receipt by the CITY. Failure of the CITY to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The CITY hereby agrees to have an annual agency audit conducted in accordance with current COUNTY policy concerning CITY audits and, as applicable, OMB Circulars A-133 and OMB Circular A-128. VI. NOTICES Any communication concerning this Contract shall be directed as follows: For the COUNTY: County of Orange Housing and Community Development 1770 North Broadway Santa Ana, California 92706 Attn: Chief, Grant Management Section For the CITY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA. 92677 Attn: Tom Tomlinson 10 1 2 3 4 5 0 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 221 23 24 25 26 27 M-1 Contract No. EC41973 IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor and attested by its Clerk; COUNTY has caused this Contract to be executed by the Director of Housing and Community Development, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. APPROVED AS TO FORM: ATTEST: City Clerk Date APPROVED AS TO FORM LAURENCE WATSON, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA s-za-s6 HOME Year V lm: 6/9/97 ii City of San Juan Capistrano a municipal corporation in the State of California 1� Mayor Date COUNTY OF ORANGE, a political subdivision of the State of California By: lL 4%" 7.7-97 Bob Wilson, Director Housing and Community Development July 16, 1997 TY OF ANG E • FILE City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 Bob Wi(sonYltlirector Housing & Community Devebpment LOCATION: 1770 NORTH BROADWAY SANTA ANA. CALIFORNIA 92706 TELEPHONE: (714) 480-2900 FAX: (714) 480-2803 Attention: Tom Tomlinson Subject: HOME Contract No. EC41973 Dear Mr. Tomlinson: Please find enclosed the executed First Time Home Buyer Contract for the City of San Juan Capistrano. Thank you for your assistance with this matter. Grant Management Enclosure