1995-0101_ORANGE , COUNTY OF_Memorandum of ContractY
I Contract No. EC41688
2
3 COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
4 HOUSING AND REDEVELOPMENT
CITY ADMINISTERED REHABILITATION
5 (HOME Program Year III)
6 TITLE OF PROJECT: City Of San Juan Capistrano - Rehabilitation of Single Family Residence
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9 MEMORANDUM OF CONTRACT, entered into this day of J pts u o� P -Y
10 BY AND BETWEEN:
11 City Of San Juan Capistrano, a
municipal corporation, hereinafter
12 referred to as "CITY",
AND
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14 COUNTY OF ORANGE, a political
15 subdivision of the State of California
and recognized Urban County under the
16 Federal Housing and Community
Development Act of 1974 (Public Law
17 93-838), as amended, hereinafter
referred to as "COUNTY",
18
19 RECITALS: This Contract is made with reference to the following facts, among others:
20 WHEREAS, the COUNTY has applied for and received funds from the United States
21 Government pursuant to the HOME Investment Partnership Program (enacted by the National
22 Affordable Housing Act of 1990), hereinafter referred to as "HOME", and
23 WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement dated
24 July 21, 1993 which both parties agreed to cooperate in the undertaking, or assist in the
25 undertaking, of community development and housing assistance activities, and
26 WHEREAS, the CITY has submitted to the COUNTY an application for funding of a
27 project hereinafter described, and
28 WHEREAS, the COUNTY adopted its FINAL STATEMENT OF COMMUNITY
29 DEVELOPMENT OBJECTIVES AND PROJECTED USE OF FUNDS on May 17, 1994 by
30 Resolution No. 94-588 which sets forth the PROJECT described herein, and
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Y '• M Contract No. EC41688
WHEREAS, HUD has accepted and certified the aforementioned FINAL STATEMENT.
NOW, THEREFORE, IT IS AGREED by and between the parties that the following provisions
as well as all other applicable Federal regulations including 24 CFR 570.600-612 and appropriate
State and COUNTY laws and regulations including the attached General Conditions, identified as
it "A", and Exhibit "B", are part of this Contract.
SCOPE OF SERVICES
ACTIVITIES
The CITY will act as PROJECT MANAGER and, furthermore, will be responsible for
a HOME Year III Housing Rehabilitation project described herein, which will provide
loans, deferred payment loans, grants or rebates for home improvement of privately owned
properties within the CITY's boundaries (see attached map, Exhibit "B"). All rehabilitation of
family residential units will benefit low- and moderate -income families as defined and revised
by HUD. Project development and management costs are included. Such program will
the following activity eligible under the HOME Program:
DELIVERY
Activity No. I - Single Family Housing Rehabilitation HOME Program
ADMINISTRATION
The CITY will manage it's HOME Investment Partnership rehabilitation funds to implement the
Rehabilitation Project.
LEVELS OF ACCOMPLISHMENT
In addition to the normal administrative services required as part of this Contract, the CITY
to provide the following levels of program services:
ACTIVITY UNITS PER MONTH* TOTAL UNITS/YEAR
Housing Rehabilitation (HOME) 10 Units
IC. BUDGET
This contract is in an amount not to exceed $80,000.00 (Eighty thousand dollars and 00 cents).
Funds shall be used for the following items:
Costs relating to construction of projects, supplies and materials
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1 Contract No. EC41688
2 D. PERFORMANCE MONITORING
3 The COUNTY will, in accordance with Section III., A. of this contract, monitor the
4 performance of the CITY against goals of the performance standards required herein. Substandard
5 performance as determined by the COUNTY constitutes noncompliance with this contract. COUNTY
6 may terminate this contract pursuant to Section H. of Exhibit "A" (General Conditions), attached
7 herewith.
8 H. TIME OF PERFORMANCE
9 Services of the CITY shall start on January 1, 1995 and end on December 31, 1995. The term
10 of this contract and the provisions herein shall be extended to cover any additional time period during
11 which the CITY remains in control of HOME funds or other assets including program income.
12 III. PAYMENT
13 A. It is expressly agreed and understood that the total amount to be paid by the COUNTY under this
14 contract shall not exceed the amount stated in Section I. C. of this contract. Draw downs for the
15 payment of eligible costs shall be made against the line item budgets specified in Section L D. herein
16 and in accordance with Exhibit "A" attached and in accordance with monthly performance reports.
17 Expenses for general administration shall also be paid against the line item budgets specified in Section
18 I. D. and in accordance with performance.
19 B. REIMBURSEMENT
20 1. On a monthly basis CITY may invoice to COUNTY for reimbursement of eligible costs (per
21 Section I. D. above). Concurrent with its request for the aforementioned funds, CITY shall submit to
22 COUNTY the following support documentation (copies of): paid invoices, receipts, payroll records,
23 bank statements, cancelled checks and other items adequate to document project expenditures. CITY
24 shall also provide a monthly performance report addressing its level of performance with each activity
25 undertaken relative to the Scope of Services set forth in Section 1. herein, including Grantee
26 Performance Direct Benefit Activity information. Reimbursement of eligible expenses shall be made
27 against the items specified in Exhibit "A" - Administrative Requirement (Section II.A.2.).
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Contract No. EC41688
2 1 lbank statements, cancelled checks and other items adequate to document project expenditures. CITY
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also provide a monthly performance report addressing its level of performance with each activity
relative to the Scope of Services set forth in Section I. herein, including Grantee Performance
Benefit Activity information. Reimbursement of eligible expenses shall be made against the items
ed in Exhibit "A" - Administrative Requirement (Section II.A.2.).
NOTICES
Communication and details concerning this contract shall be directed to the following contract
A. TO COUNTY:
County of Orange
Environmental Management Agency
Housing and Redevelopment Function
1200 North Main Street, Suite 600
Santa Ana, CA 92701
Attn: Chief, Grant Management Section
B. TO CITY:
City Of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Mary Raskin
SPECIAL CONDITIONS
The CITY agrees to comply with the requirements of Title 24 Code of Federal Regulations,
570 of the Department of Housing and Urban Development regulations concerning HOME and all
regulations and policies issued pursuant to these regulations. The CITY further agrees to utilize
funds available under this Contract to supplement rather than supplant funds otherwise available.
A. DEFINITIONS
the PURPOSES OF THIS CONTRACT the following definitions shall apply:
1. 'PROJECT MANAGER": The party responsible for, but whose responsibility is not
limited to the following: Contracting, monitoring and implementing the PROJECT through completion.
2. 'DIRECTOR": The Director of the Orange County Environmental Management Agency
(hereinafter referred to as EMA) or his designee.
3. 'REIMBURSABLE BASIS": The CITY will provide the funds for the project and submit
of payment to the COUNTY, whereby upon approval, the COUNTY will forward HOME funds
repay the CITY.
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Contract No. EC41688
4. "CONSTRUCTION BID PACKAGE": A package of bidding documents which includes
proposal, bidding instructions, contract documents, detailed estimated costs and plans and specifications
for a construction project, all prepared in accordance with applicable Federal regulations.
1M
PROJECT FUNDING
1. Invoices for all approved project costs funded by the grant under this Contract shall be
I I submitted within 90 days after the Contract expiration date. The date for project completion and
expenditure of all funds may be extended at the discretion of the DIRECTOR six (6) months from the
Contract expiration date, with written notification to the CITY. In the event of such an extension, the
deadline for submittal of invoices shall be 90 days after the new completion date. After Contract
expiration, all unexpended funds remaining from this Contract will be allocated by the COUNTY to
other eligible project(s) within the Urban County Program.
C. CITY agrees:
1. That the project shall be implemented and appropriately maintained for Community
I I Development purposes as defined by applicable HUD provisions to ensure maximum feasible benefit
and utilization of the project by low- and moderate -income persons.
2. 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 or progress on performance is unsatisfactory, the Board of Supervisors may withhold
further funding on the project pending resolution of the unsatisfactory condition(s), or may terminate
this Contract as prescribed in 24 CFR 85.43 and 85.44. In addition, the Board of Supervisors may
require the CITY to reimburse COUNTY any funds that it determines to be improperly expended or not
expended on the project in a timely manner based on applicable HOME Program Regulations.
3. To be responsible for design and inspection, including funding the costs related to those
activities, unless funding for design and inspection activities is provided for in Section I.C. of this
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• Contract No. EC41688
4. If this contract is a construction project, submit the Construction Bid Package for this project
to DIRECTOR for review prior to advertising for bids on the construction contract or prior to award of
a contract if an alternative method of award is used. CITY shall not advertise for bids until
has approved Construction Bid Package. CITY shall construct project in accordance with
Construction Bid Package which DIRECTOR approved unless prior written approval is received
DIRECTOR for modification therefrom.
5. That this Contract is conditional upon COUNTY being funded by HUD, and the release of
to COUNTY.
6. That this Contract is also conditional upon complying with HUD Environmental Review
HUD regulations at Title 24 CFR, Parts 50 and 58 which implement Section 102 (2)(c) of the
Environmental Policy Act of 1969.
7. To provide requested materials to COUNTY for the Environmental Review process requested
by HUD. This process may take-up ninety (90) days.
MODIFICATIONS/I'RANSFERS
1. Any proposed modification or change in use of real property acquired or improved in whole
in part by HOME funds from that planned at the time of the acquisition or improvement, including
disposition, must be reported by CITY to the COUNTY and receive COUNTY concurrence thereto in
advance of implementing the modification or change in use.
2. The CITY shall transfer to COUNTY any HOME funds on hand at the time of Contract
expiration and any accounts receivable attributable to the use of HOME funds. The CITY shall ensure
that any real property under the CITY's control that was acquired or improved in whole or in part with
HOME funds in excess of $25,000 is either:
(a) Used to meet one of the national objectives in 24 CFR 570.208 until five years after
expiration of the contract; or,
(b) Is disposed of in a manner which results in the COUNTY being reimbursed in the amount of
the current fair market value of the property less any portion thereof attributable to expenditures of non -
HOME funds for acquisition of, or improvement to, the property. Such reimbursement is not required
after the period of time specified in accordance with 2(a) above.
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I Contract No. EC41698
2 E. AUDIT
3 1. CITY shall obtain an annual audit performed in accordance with OMB Circular A-128 and
4 forward a copy to DIRECTOR within 180 days after the end of each accounting year. DIRECTOR
5 shall have the right to ensure that necessary corrective actions are made by the CITY for any audit
6 findings pertinent to CITY handling of funding attributable to the HOME Program per Federal
7 requirements.
8 F. AFFORDABILTI'Y
9 Activities associated with the subject HOME Program dictate that the project be designated as
10 "affordable" for a minimum of 5 years, beginning after project completion and occupation. Rent
11 limitations shall remain in effect for not less than the appropriate period, as specified in
12 Section V. A.(a.)(5.) of Exhibit "A".
13 G. RENTAL
14 The rental housing property must be "affordable" for a minimum of 5 years as defined in 24 CFR
15 Part 92.252. In the event the property does not remain affordable for a minimum of 5 years, the
16 outstanding principal and interest, if any, is due and payable.
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
1 GENERAL CONDITIONS
2
3 I. GENERAL PROVISIONS
4 A. General Compliance
5 The SUBRECIPIENT agrees to comply with all applicable federal, state and local laws and
6 regulations governing the funds provided under this contract
7 B. Independent Contractor
8 Nothing contained in this Contract is intended to, or shall be construed in any manner, as
9 creating or establishing the relationship of employer/employee between the parties. The SUBRECIPIENT
10 shall at all times remain an independent contractor with respect to the services to be performed under this
11 Contract. The COUNTY shall be exempt from payment of all Unemployment Compensation, FICA,
12 retirement, life and/or medical insurance and Workers' Compensation Insurance as the SUB RECIPIENT
13 is an independent contractor.
14 C. Hold Harmless
15 The SUBRECIPIENT shall hold harmless, defend and indemnify the GRANTEE from any all
16 claims, actions, suits, charges and judgments whatsoever that arise out of the SUBRECIPIENT's
17 performance or nonperformance of the services or subject matter called for in this Contract.
18 D. Workers' Compensation
19 The SUBRECIPIENT shall provide Workers' Compensation Insurance coverage for all
20 employees involved in the performance of this contract.
21 E. Insurance & Bondine
22 The SUBRECIPIENT shall carry sufficient insurance coverage to protect contract assets from
23 loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity
24 bond covering all employees in an amount equal to cash advances from the COUNTY.
25 The SUBRECIPIENT shall comply with the bonding and insurance requirements of
26 Attachment B of OMB Circular A-110, Bonding and Insurance.
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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 providing
3 services through this Contract. All activities, facilities and items utilized pursuant to this Contract shall be
4 prominently labeled as to funding source. In addition, the SUBRECIPIENT will include a reference to the
5 support provided herein in all publications made possible with funds made available under this Contract.
6 G. Amendments
7 COUNTY or SUBRECIPIENT may amend this Contract at any time provided that such
8 amendments make specific reference to this Contract, and are executed in writing, signed by a duly
9 authorized representative of both organizations, and approved by the COUNTY's governing body. Such
10 amendments shall not invalidate this Contract, nor relieve or release COUNTY or SUBRECIPIENT from
11 its obligations under this Contract. Any proposed amendment to this Contract shall be submitted to and
12 approved by the COUNTY, prior to commencement by COUNTY of any activity covered by said
13 amendment.
14 COUNTY may, in its discretion, amend this Contract to conform with federal, state or local
15 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 be
17 undertaken as part of this Contract, such modifications will be incorporated only by written amendment'
18 signed by a duly authorized representative of both organizations, and approved by the COUNTY's
19 governing body.
20 H. Sus2cnsion or Termination
21 In the event of SUBRECIPIENTs failure to comply with the provisions of this Contract and
22 pursuant to 24 CFR 85.43 and 85.44, COUNTY may withhold or require SUBRECIPIENT
23 reimbursement of funds, and/or terminate this Contract, and/or allocate funds previously assigned to this
24 Contract to another eligible project(s) within the Urban County.
25 Either party may terminate this Contract at any time by giving written notice to the other party
26 of such termination and specifying the effective date thereof at least 30 days before the effective date of
27 such termination. Partial terminations of the Scope of Service in Paragraph I.A above may only be
28 undertaken with the prior approval of (grantee). In the event of any termination for convenience, all
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or
prepared by SUBRECIPIENT under this Contract shall, at the option of the COUNTY become
property of the COUNTY, and SUBRECIPIENT shall be entitled to receive just and equitable
for any satisfactory work completed on such documents or materials prior to the
COUNTY may also suspend or terminate this Contract, in whole or in part,
materially fails to comply with any term of this Contract, or with any of the
or provisions referred to herein; and the COUNTY may declare the S
for any further participation in COUNTY contracts, in addition to other remedies as provided by
law. In the event there is probable cause to believe the SUBRECIPIENT is in noncompliance with any
applicable rules or regulations, the COUNTY may withhold up to fifteen (15) percent of said
funds until such time as the SUBRECIPIENT is found to be in compliance by the COUNTY, or
)therwise adjudicated to be in compliance.
II. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1. Accounting Standards
The SUBRECIPIENT agrees to comply with Attachment C of OMB Circular A-110
agrees to adhere to the accounting principles and procedures required therein, utilize adequate
controls, and maintain necessary source documentation for all costs incurred.
The SUBRECERENT shall administer its program in conformance with OMB Circulars
A-122, "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational
Institutions," as applicable; (and if the SUBRECIPIENT is a governmental or quasi -governmental agency,
the applicable sections of 24 CFR Part 85, "Uniform Administrative Requirements for Grants and
Cooperative Contracts to State and Local Governments,") for all costs incurred whether charged on a
direct or indirect basis.
28 IN
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME
B. Documentation and Record -Keeping
1. Records to be Maintained
The SUBRECIPIENT shall maintain all records required by the federal regulations
in 24 CFR Parts 570.503(b)(2), 570.506, 570.5078 and that are pertinent to the activities to be
under this Contract. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one of the
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 opportunit
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 com
and thereafter for three (3) years from the date SUBRECIPIENT receives final payment from
The SUBRECIPIENT shall retain all records pertinent to expenditures incurred under this
contract for a period of three (3) years after the termination of all activities funded under this Contract, or
after the resolution of all Federal audit findings, which ever occurs later. Records for non -expendable
property acquired with funds under this Contract shall be retained for three (3) years after final disposition
of such property. Records for any displaced person must be kept for three (3) 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
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME
determining eligibility, and description of service provided. Such information shall be made available
COUNTY monitors or their designees for review upon request.
The SUBRECIPIENT shall maintain real property inventory records which clearly
purchased, improved or sold. Properties retained shall continue to meet eligibility criteria
shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8).
The SUBRECIPIENT agrees to maintain documentation that demonstrates that
activities carried out with funds provided under this Contract meet one or more of the CDBG prograr
national objectives: 1) benefit low/moderate income persons, 2) aid in the prevention or elimination
slums or blight, 3) meet community development needs having a particular urgency - as defined in
CFR Part 570.208.
SUBRECIPIENT obligation to the COUNTY shall not end until all close-out requirements
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, equipment,
cash advances, program income balances, and receivable accounts to the COUNTY and determining the
custodianship of records.
All SUBRECIPIENT records with respect to any matters covered by this Contract shall
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
be fully cleared by the SUBRECIPIENT with 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 agmes
have an annual agency audit conducted in accordance with current COUNTY policy
audits.
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contractl
C. Rep ring and Payment Procedures
The SUBRECIPIENT will submit a detailed contract budget of a form and content)
by the COUNTY for approval by the COUNTY. The COUNTY and the
agree to revise the budget from time to time in accordance with existing COUNTY policies.
The SUBRECIPIENT shall report quarterly all program income as defined at 24 CFR
generated by activities carried out with CDBG funds made available under this Contract. The
use of program income by the SUBRECIPIENT shall comply with the requirements set forth at 24 CFR
By way of further limitation, the SUBRECIPIENT may use such income during the contract
for activities permitted under this Contract and shall reduce request for additional funds by the
of any such program income balances on hand. All unused program income shall be returned
COUNTY at the end of the contract period. Any interest earned on cash advances from the U.S.
is not program income and shall be remitted promptly to the COUNTY.
Program income generated from cash advance and/or the mere holding of CDBG funds
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
in proportion to the CDBG contribution thereof.
The SUBRECIPIENT may retain all program income only if that program income is
exclusively for eligible activities, subject to the "DIRECTOR'S" review, and in accordance with all
requirements as may then apply.
SUBRECIPIENT shall keep and maintain appropriate records on the use of any such
program income as may be required by EMA staff since the COUNTY has the responsibility of monitoring
and reporting program income to HUD.
In the event of SUBRECIPIENT close-out or change in status of the participating
SUBRECIPIENT in the Urban County CDBG Program, any program income .t that time or received
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• Exhibit "A" to COUAISUBRECIPIENT HOME Contractl
to the close-out or change in status shall be paid by SUBRECIPIENT to the COUNTY within
days thereafter.
MGf_��Z.
If indirect costs are charged, the SUBRECIPIENT will develop an indirect cost allocation
for determining the appropriate COUNTY share of administrative costs and shall submit such plan
COUNTY for approval.
a. The COUNTY will pay to the SUBRECIPIENT funds available under this
based upon information submitted by the SUBRECIPIENT and consistent with any approved budget
COUNTY policy concerning payments. With the exception of certain advances, payments will be made
for eligible expenses actually incurred by the SUBRECIPTENT, and not to exceed actual
Payments will be adjusted by the COUNTY in accordance with advance fund and program
income balances available in SUBRECIPIENT accounts. In addition, the COUNTY reserves the right
liquidate funds available under this Contract for costs incurred by the COUNTY on behalf of
SUBRECIPIENT.
a. 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
under this Contract.
b. The SUBRECIPIENT is permitted one (1) cash advance under this Contract and it may
be made by the DIRECTOR to SUBRECIPIENT if the following conditions are met:
(1) SUBRECIPIENT has demonstrated to DIRECTOR through certification in
form prescribed by DIRECTOR and subsequently through performance, its willingness and capacity
establish SUBRECIPIENT financial procedures that will minimize the time elapsing between the receipt
funds and proper disbursement of such funds.
(2) SUBRECIPIENT certifies to DIRECTOR, that SUBRECIPIENTs
management system meets the standards for fund control and accountability as directed in 24 CFR'
570.502(a), if a governmental Subrecipient, and 24 CFR 570.502(b), if a non-governmental recipient; and
as prescribed in Office of Management and Budget Circular A-87, if a governmental Subrecipient, and
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME
of Management and Budget Circulars A-122 and A-21 if a non-governmental Subrecipient,
(3) SUBRECIPIENT complies with EMA financial cash advance procedures
I by HUD in 24 CFR 85.21 Payment regulations and the United States Treasury regulati
ed in 31 CFR Part 205. These procedures require that upon written receipt of funds from
TY, SUBRECIPIENT shall disburse payment(s) to vendor(s) within five (5) working days
evidence of such disbursement(s) (i.e., warrant copies, etc.) to the DIRECTOR.
c. If SUBRECIPIENT is subsequently found, by DIRECTOR, to be in
Section 6.b.(1) through Section 6.b.(3), SUBRECIPIENT shall in the future be paid on
basis.
d. Reimbursable basis payments, as referred to in Section 6.a. and/or cash
in Section 6.b. shall be made in accordance with EMA financial procedures. In the event
:t between EMA financial procedures and any applicable statutes, rules or regulations of HUD
ing Office of Management and Budget Circular No. A-87, if a governmental Subrecipient, anc
of Management Budget Circular's A-122 and A-21 ,if a non-governmental, the latter shall prevail.
Where contract funds are withheld, and at the request and expense of SUBRECIPIENT
TY will accept securities equivalent to the amount withheld. Such substituted security, meeting tlx
of Government Code Section 4590, shall be deposited with COUNTY, or with a State
chartered bank as escrow agent. If security is deposited with an escrow agent, it shall be
by an escrow agreement.
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The SUBRECIPIENT shall submit regular Progress Reports to the COUNTY in the form,
content, and frequency as required by the COUNTY.
Win. n i
The SUBRECIPIENT shall comply with current COUNTY policy concerning the purchase
equipment and shall maintain an inventory record of 0 non -expendable personal property as defined
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract)
such policy as may be procured with funds provided herein. All program assets (unexpended program
property, equipment, etc.) shall revert to the COUNTY upon termination of this Contract.
The SUBRECIPIENT shall procure materials in accordance with the requirements
O of OMB Circular A-110. Procurement Standards, and shall subsequently follow
Property Management Standards, covering utilization and disposal of property.
3. Travel
The SUBRECIPIENT shall obtain written approval from the COUNTY for any travel
the metropolitan area with funds provided under this Contract
UWQ
The SUBRECIPIENT agrees to comply with 24 CFR 570.606 relating to the acquisition
disposition of all teal property utilizing grant funds, and to the displacement of persons, businesses,
nonprofit organizations and farms occurring as a direct result of any acquisition of real property
grant funds. The SUBRECIPIENT agrees to comply with applicable COUNTY Ordinances, Res
and Policies concerning displacement of individuals from their residences.
III. PERSONNEL & PARTICIPANT CONDITIONS
1. Compliance
The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as
Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of the Title I of the
Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the
with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and
Order 11246 as amended by Executive Orders 11375 and 12086.
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 will take
affirmative action to insure that all employment practices are free from such discrimination. Such
ma
Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
1 employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer,
2 recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation,
3 and selection for training, including apprenticeship. The SUBRECIPIENT agrees to post in conspicuous
4 places, available to employees and applicants for employment, notices to be provided by the contracting
5 agency setting forth the provisions of this nondiscrimination clause.
6 3. Section 504
7 The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to
8 compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohibits
9 discrimination against the handicapped in any federally assisted program. The COUNTY shall provide the
10 SU13RECIPIENT with any guidelines necessary for compliance with that portion of the regulations in
11 force during the term of this Contract.
12 B. Affirmative Action
13 1. Apuroved Plan
14 The SUBRECIPIENT agrees that it shall be committed to carry out pursuant to the
15 COUNTY specifications an Affirmative Action Program in keeping with the principles as provided in
16 President's Executive Order 11246 of September 24, 1985. The (Grantee) shall provide Affirmative
17 Action guidelines to the SUBRECIPIENT to assist in the formulation of such program. The
18 SUBRECIPIENT shall submit a plan for an Affirmative Action Program for approval prior to the award of
19 funds.
20 2. Vim$
21 The SUBRECIPIENT will use its best efforts to afford minority and women -owned
22 business enterprises the maximum practicable opportunity to participate in the performance of this
23 Contract. As used in this contract, the term "minority and female business enterprise" means a business at
24 least fifty-one (5 1) percent owned and controlled by minority group members or women. For the purpose
25 of this definition, "minority group members" are Afro-Americans, Spanish speaking, Spanish surnamed
26 or Spanish -heritage Americans, Asian -Americans, and American Indians. The Subrecipient may rely on
27 written representations by SUBRECIPIENTs regarding their status as minority and female business
28 enterprises in lieu of an independent investigation.
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The SUBRECIPIENT shall furnish and cause each of its sub-SUBRECIPIENTs to
information and reports required hereunder and will permit access to its books, records and accounts
COUNTY, HUD or its agents, or other authorized federal officials for purposes of investigation
compliance with the rules, regulations and provisions stated herein.
4. Notifications
The SUBRECIPIENT will send to each labor union or representative of workers with
it has a collective bargaining Contract or other contract or understanding, a notice, to be provided
the agency contracting officer, advising the labor union or worker's representative of
SUBRECIPIENT's commitments hereunder, and shall post copies of the notice in conspicuous
available to employees and applicants for employment.
The SUBRECIPIENT will, in all solicitations or advertisements for employees placed by
or on behalf of the SUBRECIPIENT, state that it is an Equal Opportunity or Affirmative Action employer.
MMO
The SUBRECIPIENT will include the provisions of Paragraphs VIII A, Civil Rights,
B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that
will be binding upon each subSUBRECIPIENT or vendor.
n • !SI - ! Y�Z 1
Ems:O' i I
The SUBRECIPIENT is prohibited from using funds provided herein or personnel
in the administration of the program for political activities, sectarian, or religious activities;
lobbying, political patronage, and nepotism activities.
Where employees are engaged in activities not covered under the Occupational Safety
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
the participants' health or safety.
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
1 3. Labor Standards
2 The SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in
3 laccordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours, the Safety
4 Standards Act, the Copeland "Anti -Kickback" Act (40 U.S.C. 276, 327-333) and all other applica
5 federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to
6 Performance of this Contract. The SUBRECIPIENT shall maintain documentation which demonstn
7 compliance with hour and wage requirements of this part. Such documentation shall be made available to
8 the COUNTY for review upon request.
9 The SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction
10 of residential property designed for residential use for less than eight (8) households, all contractors
11 engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or
12 work financed in whole or in part with assistance provided under this contract, shall comply with federal
13 requirements adopted by the COUNTY pertaining to such contracts and with the applicable requirements
14 of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5 and 7 governing the payment)
15 of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than
16 those required under the regulations are imposed by state or local law, nothing hereunder is intended to
17 relieve the SUBRECIPIENT of its obligation, if any, to require payment of the higher rate. The
18 SUBRECIPIENT shall cause or require to be inserted in full, in all such Contracts subject to such
19 regulations, provisions meeting the requirements of this paragraph, for such Contracts in excess of
20 $10,000.00.
21 4. "Section 3" Clause
22 a. Compliance
23 Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135,
24 and all applicable rules and orders issued hereunder prior to the execution of this Contract, shall be a
25 condition of the federal financial assistance provided under this Contract and binding upon the COUNTY,
26 the SUBRECIPIENT and any subSUBRECIPIENTs. Failure to fulfill these requirements shall subject
27 the COUNTY, the SUBRECIPIENT and any subSUBRECIPIENTs, their successors and assigns, to
28 those sanctions specified by the Contract through which federal assistance is provided. The
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SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would
with requirements.
The SUBRECIPIENT further agrees to comply with these "Section 3" requirements
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 a program
direct federal financial assistance from HUD and is subject to the requirements of Section 3
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires
to the greatest extent feasible opportunities for training and employment be given to lower
of the project area and contracts for work in connection with the project be awarded to
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
which would prevent compliance with the requirements.
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, if 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 subSUBRECIPIENT is in violation
of regulations issued by the Grantor Agency. The SUBRECIPIENT will not subcontract with any
subSUBRECIPIENT where it has notice or knowledge that the latter has been found in violation
under 24 CFR 135 and will not let any subcontract unless the subSUBRECIPIENT has
provided it with a preliminary statement of ability to comply with the requirements of these regulations.
27 IN
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1. Assignability
The SUBRECIPIENT shall not assign or transfer any interest in this Contract without the
written consent of the COUNTY thereto; provided, however, that claims for money due or to
5 become due to the SUBRECIPIENT from the COUNTY under this Contract may be assigned to a bank,
6 trust company, or other financial institution without much approval. Notice of any such assignment or
7 transfer shall be furnished promptly to the COUNTY.
8 2. Hatch Act
9 The SUBRECIPIENT agrees that no funds provided, nor personnel employed under this
10 Contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of
11 Chanter 15 of Title V United State Code.
12 3. Conflict of Interest
13 The SUBRECIPIENT agrees to abide by the provisions of 24 CFR 570.611 with respect
14 to conflicts of interest, and covenants that if presently has no financial interest and shall not acquire any
15 financial interest, direct or indirect, which would conflict in any manner or degree with the performance of
16 services requited under this Contract. The SUBRECIPIENT further covenants that in the performance of
17 this Contract no person having such a financial interest shall be employed or retained by the
18 SUBRECIPIENT hereunder. These conflict of interest provisions apply to any person who is a
19 employee, agent, consultant, officer, or elected official or appointed official of the COUNTY or of any
20 designated public agencies or SUBRECIPIENTs which are receiving funds under the CDBG Entitlement
21 oroeram.
22 4. Subcontracts
23 a. AWmals
24 The SUBRECIPIENT shall not enter into any subcontracts with any agency
25 individual in the performance of this Contract without the written consent of the COUNTY prior to
26 execution of such Contract.
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b. Monitoring
The SUBRECIPIENT will monitor all subcontracted services on a regular basis
assure contract compliance. Result of monitoring efforts shall be summarized in written reports
supported with documented evidence of follow-up actions taken to correct areas of the noncompliance.
c. Content
The SUBRECIPIENT shall cause all of the provisions of this Contract in its entirety
be included in and made a part of any subcontract executed in the performance of this Contract
d. Section Process
The SUBRECIPIENT shall undertake to insure that all subcontracts let in t
of this Contract shall be awarded on a fair and open competition basis. Executed copies of
shall be forwarded to the COUNTY along with documentation concerning the selecti
process.
5. Coovrieht
If this contract results in any copyrightable material, the COUNTY and/or grantor agency
reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwide
use and to authorize others to use, the work for government purposes.
6. 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. Religious Orgmization
The Subrecipient agrees that funds provided under this contract will not be utilized for
activities, to promote religious interests, or for the benefit of a religious organization in
accordance with the federal regulations specified in 24 CFR 570.200(j).
8. Drug Free Wotimlace
SUBRECIPIENT certifies that it will maintain a drug-free workplace as defined by HUD
project(s) funded by this Agreement.
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
1 9. Excessive Force
2 All parties to this Agreement certify to a policy against use of excessive force as defined by
3 HUD.
4 IV. ENVIRONMENTAL CONDITIONS
5 A. Air and Water
6 The SUBRECIPIENT agrees to comply with the following regulations insofar as they apply to
7 the performance of this Contract:
8 o Clean Air Act, 42 U.S.C., 1857, et seq.
9 o Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as
10 amended 1318 relating to inspection, monitoring, entry, reports, and information, as well as other
11 requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued
12 thereunder.
13 o Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R, Part 50, as
14 amended.
15 o National Environmental Policy Act of 1969.
16 o HUD Environmental Review Procedures (24 CFR, Part 58).
17 B. Flood Disaster Protection
18 The SUBRECIPIENT agrees to comply with the requirements of the Flood Disaster Protection
19 act of 1973 (P.L. 2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved
20 under the terms of this contract, as it may apply to the provisions of this contract.
21 C. Lead -Based Paint
22 The SUBRECIPIENT agrees that any construction or rehabilitation of residential structures
23 with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24'
24 CFR 570.608, and 24 CFR Part 35, and in particular Sub -Part B thereof. Such regulations pertain to all
25 HUD -assisted housing and require that all owners, prospective owners, and tenants or properties
26 constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such
27 notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and
28 precautions that should be taken when dealing with lead-based paint poisoning.
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Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
D. Historic Preservation
The SUBRECIPIENT agrees to comply with the Histonc Preservation requirements set
the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures
forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection
Properties, insofar as they apply to the performance of this contact.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a
Federal, State, or local historic property list.
If this Agreement is funded by HOME Investment Partnership Program, the following
As applicable housing assisted with HOME Investment Partnership Funds must meet the
dlity requirements as follows:
(a) 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:
(1) Bears rents not greater than the lesser of
(i) The fair market rent for existing housing for comparable units in the area as
by HUD under 888.111 of this title, less the monthly allowance for the utilities and services
telephone) to be paid by the tenant; or
(ii) The rent that does not exceed 30 percent of the adjusted income of a family
income equals 65 percent of the median income for the area, as determined by HUD, with
for smaller and larger families, except that HUD, which may establish income ceilings
lower than 65 percent of the median for the area on the basis of HUD's findings that such variations
try because of prevailing levels of construction costs or fair market rents, or unusually high or low
r
incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to
limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities
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and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit
and adjusted income assumptions to be used in calculating the maximum rent allowed under this
(a)(1)(ii) of this section;
(2) Has not less than 20 percent of the units
(i) Occupied by very low-income families who pay as a contribution toward rent
(excluding any federal or state rental subsidy provided on behalf of the family) not more than 30 percent
the family's monthly adjusted income as determined by HUD. To obtain the maximum monthly rent
be charged for a unit that is subject to this limitation, the owner or participating jurisdiction
annual adjusted income of the tenant family by 30 percent and divides by 12 and, if
subtracts a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant;
(ii) Occupied by very low-income families and bearing rents not greater than 30 percent
the gross income of a family whose income equals 50 percent of the median income for the area, as
by HUD, with adjustment for smaller and larger families, except that HUD, may establish
ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's
such variations are necessary because of prevailing levels of contraction costs or fair market rents,
high or low family incomes. In determining the maximum monthly rent that may be charged
unit that is subject to this limitation, the owner or participating jurisdiction must subtract am monthly
for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide
occupancy per unit assumptions to be used in calculating the maximum rent allowed
(a)(2xii) of this section;
(3) Is occupied only by households that qualify as low-income families;
(4) Is not refused for leasing to a holder of a Certificate of Family Participation
24 CFR part 882 (Rental Certificate Program) or a rental housing voucher under 24 CFR part 887 (Ren
Voucher Program) or to the holder of a comparable document evidencing participation in a HOME tena
based assistance program because of the status of the prospective tenant as a holder or such certificate
family participation, rental voucher, or comparable HOME tenant -based assistance document; and
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(5) Will remain affordable, pursuant to deed restrictions, for not less than the
appropriate period, beginning after project completion, as specified in the following table, without
to the term of the mortgage or to transfer of ownership.
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
(b) Rent schedule and utility allowances. The participating jurisdiction must
and approve rents proposed by the owner for units with "flat rents," i.e., units subject to the
rent limitations in paragraph (a)(1), (a)(1)(ii), or (a)(2)(ii) of this section, and, if applicable, must
and approve, for all units subject to the maximum rent limitations paragraph (a) of this section,
allowances, proposed by the owner, for utilities and services to be paid by the tenant The
must reexamine the income of each tenant household living in low-income units at least annually. The
maximum monthly rent must be recalculated by the owner and reviewed and approved by the
annually, and may change as changes in the applicable gross rent amounts, the income
adjustments, or the monthly allowance for utilities and services warrant. Any increase in rents for
income units is subject to the provisions of outstanding leases, in any event, the owner must
of those units not less than 30 days prior written notice before implementing any increase in rents.
(c) Increases in tenant income. Rental housing qualifies as affordable housing
a temporary noncompliance with paragraph (a)(2) or (a)(3) of this section, if the noncompliance is
increases in the incomes of existing tenants and if actions satisfactory to HUD are being taken to
that all vacancies are filled in accordance with this section until the noncompliance is corrected. Tenants
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no longer qualify as low-income families must pay as rent not less than 30 percent of the family's
adjusted monthly once, as recertified annually.
(d) Adjustment of qualifying rent. HUD may adjust the qualifying rent established
a project under paragraph (a)(1) of this section, only if HUD finds that an adjustment is necessary
the continued financial viability of the project and only by an amount that HUD determines
6 necessary to maintain continued financial viability of the project. HUD expects that this authority will be
7 used sparingly. Adjustments in fair market rents and in median income over time should help maintain the
8 financial viability of a project within the qualifying rent standard in paragraph (a)(1) of this section.
9 B. SECTION 92.253 TENANT AND PARTICIPANT PROTECTIONS
10 (a) Lease. The lease between a tenant and an owner of rental housing assisted with HOME
11 funds must be for not less than one year, unless by mutual agreement between the tenant and the owner.
12 (b) Prohibited lease terms. The lease may not contain any of the following provisions:
13 (1) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
14 judgment in favor of the owner in a lawsuit brought in connection with the lease;
15
16 (2) Treatment of property. Agreement by tenant that the owner may take, hold, or sell
17 personal property of household members without notice to the tenant and a court decision on the rights of
18 the parties. This prohibition, however, does not apply to an agreement by the tenant concerning
19 disposition of personal property remaining in the housing unit after the tenant has moved out of the unit.
20 The owner may dispose of this personal property in accordance with state law;
21 (3) Excusing owner from responsibility. Agreement by the tenant not to hold the owner or
22 the owner's agents legally responsible for any action or failure to act, whether intentional or negligent;
23 (4) Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit
24 without notice to the tenant;
25 (5) Waiver of legal proceedings. Agreement by the tenant that the owner may evict the
26 tenant or household members without instituting a civil court proceeding in which the tenant has the
27 opportunity to present a defense, or before a court decision on the rights of the parties;
28 (6) Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury;
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Exhibit "A" to COUNTY/SUBRECIPEENT HOME
1 (7) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenanCsi
2 right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and
3 (8) Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the
4 tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner
5 against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses.
6 (c) Termination of tenancy. An owner may not terminate the tenancy or refuse to renew
7 the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation
8 of the terms and conditions of the lease; for violation of applicable federal, state, or local law; or for other
9 good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the
10 owner's service upon the tenant of a written notice specifying the grounds for the action.
11 (d) Maintenance and replacement. An owner of rental housing assisted with HOME funds
12 must maintain the premises in compliance with all applicable housing quality standards and local code'
13 requirements.
14 (e) Tenant selection. An owner of rental housing assisted with HOME funds must adopt
15 written tenant selection policies and criteria that -
16 (1) Are consistent with the purpose of providing housing for very low-income and low -
17 income families,
18 (2) Are reasonably related to program eligibility and the applicants' ability to perform the
19 obligations of the lease,
20 (3) Give reasonable consideration to the housing needs of families that would have a
21 preference under 960.211 (Federal selection preferences for admission to Public Housing) of this title; and
22 (4) Provide for -
23 (i) The selection of tenants from a written waiting list in the chronological order of their
24 application, insofar as is practicable; and
25 (n) The prompt written notification to any rejected applicant of the grounds for any
26 rejection.
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(a) Purchase with or without rehabilitation. Housing that is for purchase by a
as affordable housing only if the housing:
(1)(i) Has an initial purchase price that does not exceed the mortgage limit for the type
family housing (1 -to 4 -family residence, condominium unit, combination manufactured home
or manufactured home lot) for the area (including any applicable high-cost mortgage limit published
in the FEDERAL REGISTER) under HUD's single family insuring authority under the
Act. For a cooperative unit, the purchase price for a cooperative share may not exceed
remaining after subtracting from the 1 -family mortgage limit an amount equal to the
covering the cooperative development which is attributable to this cooperative unit; and
(ii) Has an estimated appraised value after any repair needed to meet property standards
that does not exceed the appropriate mortgage limit described in paragraph (a)(1)(i) of this section;
(2) Is the principal residence of an owner whose family qualifies as a low-income family
time of purchase;
(3) Is made available for initial purchase only to fust -time homebuyers; and
(4) Is made available for subsequent purchase only -
(i) To a low-income family that will use the property as its principal residence; and
(ii) At a price consistent with guidelines that are established by the participating juri
and determined by HUD to be appropriate -
(A) To provide the owner with a fair return on investment, including any improvements,
(B) To ensure that the housing will remain affordable to a reasonable range of low-income
homebuyers for a period of 20 years for newly constructed housing or otherwise for 15 years. Housing
affordable if the subsequent purchaser's monthly payments of principal, interest, taxes,
insurance do not exceed 30 percent of the gross income of a family with an income equal to 75 percent
median income for the area, as determined by HUD with adjustments for smaller and larger families.
(b) Rehabilitation not involving purchase. Housing that is currently owned by a
as affordable housing only if-
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q Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract
1 (1) The value of the property, after rehabilitation, does not exceed the mortgage limit for
2 the type of single family housing (1- to 4 -family residence condominium unit, combination manufactured,
3 home and lot, or manufactured home lot) for the area (including any applicable high-cost mortgage limit
4 published by HUD in the FEDERAL REGISTER) under HUD's single family insuring authority under
5 the National Housing Act (see 24 CFR 201.10, 203.18, 203.I8a, 203.18b, and 234.27); and
6 (2) The housing is the principal residence of an owner whose family qualifies as a low -
7 income family at the time HOME funds are committed to the housing.
8 D. FEDERAL MANAGEMENT CIRCULAR 74-7 has been replaced with Office of Management
9 and Budget (OMB) A -102. In the event said project(s) is determined not to substantially meet all the
10 requirements of the HOME Investment Partnership Program, City will cooperate with County in the return
11 of said funds expended on ineligible activities.
12 Funds so returned shall be made available for other Housing Rehabilitation Activities as per
13 terms of this agreement.
14 E. MONITORING
15 City will cooperate in the County monitoring of HOME Investment Partnership Funds
16 annually. In particular, City will cooperate with County in monitoring all rental projects funded as
17 provided by N, O and P above.
18 ///
19
20 GS/BJGMW5A2-5
21 (09/01/94)
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City Boundary SCALE-- 1'-3300'
Census Trac: Boundary
[ENVIRONMENT--k-LAN JUAN CAPISTRANO
Housing & Redevelopment MANAGEMENT AGENCY N
0
nauo usE
IE
d
July 10, 1995
Orange County Environmental Management Agency
Chief, Grant Management Section
Housing and Redevelopment Function
1200 North Main Street, Suite 600
Santa Ana, California 92701
Re: Year 3 HOME Grant Contract
MEMBERS OF THE CIT' COUNCIL
COLLENE CAMPBELL
NNATT HART
GIL JONES
CAROLYN NASH
DAVID SWERDUN
CITY MANAGER
GEORGESCARBOROUGH
/heeh eut we
ajmos•1 been
threwncAMIS and
haven{ reeelved the
signed agreernWis
Wound you. pitate
U4 0.k & i,h1S m tl er
for uS� ► - -
Gentlemen: ry'•"""�' -
At their meeting of July 5, 1995, the City Council of the City of San Juan Capistrano
adopted Resolution No. 95-7-5-1, which authorized the Mayor to sign the Year 3 HOME
Grant Contract No. EC41688, for rehabilitation of single-family homes for low-income
households, in the amount of $80,000.
One copy of the Contract and 5 signature pages have been signed by the City and are
enclosed. Upon approval of the Board of Supervisors, please return one fully -executed
copy to the City Clerk's office. A certified copy of Resolution No. 95-7-5-1 is also
enclosed.
Thank you for your cooperation. If I can be of further assistance. I can be reached at 443-
6308.
Very truly yours,
0A1164ns )L6'_ "
City Clerk
Enclosure
cc: Planning Director
32400 PASEO ADELANTO. SAN JUAN CAPISTRANO, CALIFORNIA 92675 • (714) 493-1171
0
DRUG USE
IS
0
July 10, 1995
JWAN
o,onro�mo
ainulao 1961
1776
Orange County Environmental Management Agency
Chief, Grant Management Section
Housing and Redevelopment Function
1200 North Main Street, Suite 600
Santa Ana, California 92701
Re: Year 3 HOME Grant Contract
Gentlemen:
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
WYATT HART
GILJONES
CAROLYN WASH
DAVID SWEROUN
CITY MANAGER
GEORGE SCARBOROUGH
At their meeting of July 5, 1995, the City Council of the City of San Juan Capistrano
adopted Resolution No. 95-7-5-1, which authorized the Mayor to sign the Year 3 HOME
Grant Contract No. EC41688, for rehabilitation of single-family homes for low-income
households, in the amount of $80,000.
One copy of the Contract and 5 signature pages have been signed by the City and are
enclosed. Upon approval of the Board of Supervisors, please return one fully -executed
copy to the City Clerk's office. A certified copy of Resolution No. 95-7-5-1 is also
enclosed.
Thank you for your cooperation. If I can be of further assistance. I can be reached at 443-
6308.
Very truly yours,
Cheryl Jo ns
City Clerk
Enclosure
cc: Planning Director
32400 PASEO ADELANTO. SAN JUAN CAPISTRANO. CALIFORNIA 92675 0 (714) 493-1171
r 7
6. RESOLUTION APPROVING YEAR 3 HOME GRANT CONTRACT ACT - YEAR 20
• FOR REHABILITATION OF SINGLE-FAMILY HOMES FOR LOW-[NCOME
HOUSEHOLDS (600.50)
As set forth in the Report dated July 5, 1995, from the Planning Director, the following
Resolution was adopted authorizing the Mayor to sign the Year 3 HOME Grant Contract No.
EC41688 for Year 20 (FY 1994-95) in the total amount of $80,000 for the rehabilitation of
single-family homes for low-income households:
YEAR 1994-19951- A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING AND
AUTHORIZING THE MAYOR TO SIGN THE $80,000 YEAR 3 HOME
GRANT CONTRACT (FISCAL YEAR 1994-1995) FOR THE
REHABILITATION OF SINGLE-FAMILY HOMES FOR LOW-INCOME
HOUSEHOLDS
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I►I\II 11 : \U \I• I► 11►1 1
MINUTES]
. P tel.
Consideration of the proposed Seven -Year Capital Improvement Program for Fiscal Years
1995 through 2002, to provide consistency with requirements of the State Congestion
Management Program and the County Measure M Program.
Written Communications:
(1) Report dated July 5, 1995, from the Director of Engineering and Building, forwarding
the proposed budget, project detail narrative, project summary and detail sheets, and
a project funding breakdown.
(2) Minor modifications added to pages 4 and 5 of the 7 -Year CEP Detail Narrative
(Attachment 2).
Mr. Huber made an oral presentation, advising that the Fiscal Year 1995-96 budget totalled
$8.3 million and that revenues were projected to be similar to Fiscal Year 1994-95. Program
elements for Fiscal Year 1995-96 included funding for roads, streets, signals, street widening
and rehabilitation projects; drainage improvements; sewer lines and sewer lift stations; park
projects and open space projects; and, Community Development Block Grant projects. He
reported that because of a projected $156,000 deficit in the Drainage Fund, funds for drainage
projects may have to be borrowed from the Sewer Fund. He noted that although the Parks
and Recreation Fund had a deficit of $312,000, there were a limited number of projects
proposed and City anticipated that the fund would have a positive balance by the end of the
• year if projected revenues were received. With regard to the lighting of the athletic fields at
Cav Council Minutes 4- 07/05/95
AGENDA ITEM
TO: George Scarborough, City Manager
FROM: Thomas Tomlinson, Planning Director
July 5, 1995
SUBJECT: By Motion, Authorize the Mayor to sign the Year 3 (FY 1994-1995) HOME Grant
Contract.
RECOMMENDATION
By motion, authorize the Mayor to sign the attached Year 3 HOME grant contract for rehabilitation
of single family homes for low income households ($80,000).
SITUATION
A. Applicant/Property Owner
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
B. Summary and Recommendation
On October 27, 1993 the Citizen Participation Committee reviewed and approved the
proposed Year 20 CDBG and Year 3 HOME application at a public meeting and on
November 9, 1993, the Planning Commission recommended approval of the proposed
application at a public meeting. The City Council approved the Year 20 CDBG and Year 3
HOME application on November 16, 1993 (attachment 2). The County of Orange reviewed
the proposed Year 3 HOME application and funded the requested single family rehabilitation
program in the amount of $80,000. The City received the Year 3 HOME contract in
December, but due to the County's financial problems, the City Attorney recommended that
the contracts not be signed until this time. Due to the time lapse that has now occurred since
the County sent the City the contracts, the funds will have to be spent within the next six
months under the terms of the contract. While this is a condensed contract period, staff does
not anticipate any problems in expending the funds by December 1995. There are currently
over 60 low income households on the rehabilitation waiting list.
FOR CITY COUNCIL AGEN �\ /
0
Agenda Item
is
July 5, 1995
The $80,000 grant amount will allow for up to ten (10) low income, single family households
to rehabilitate their homes with grants of up to $10,000 per household (attachment 3). The
single family homes may be located anywhere in the City, as the requirements for
qualification for the grant is based solely on income and not location. Mobile Homes are
considered to be single family homes under HOME's regulations.
Staff recommends that the City Council authorize the Mayor to sign the Year 3 HOME
contract EC41688 for $80,000 for the rehabilitation of single family homes for low income
households (attachment 1). These grants are Federal Grants administered by the Department
of Housing and Urban Development (HUD) through the HOME Investment Partnership
program which was enacted by the Affordable Housing Act of 1990.
COMMISSIONBOARD REVIEW AND RECOMMENDATIONS
None.
FINANCIAL CONSIDERATION
The City will benefit financially from the execution of this contract as it provides the City with an
additional $80,000 in Federal HOME grant funds for the benefit of the City's low income
households.
PUBLIC NOTIFICATION
A Public Hearing is not required.
ALTERNATE ACTIONS
Authorize the Mayor to sign the Year 3 contract (EC41688 ), or;
Deny authorization for the Mayor to sign the Year 3 contract, or;
Continue the item and direct staff to return with further information on specified
issues.
0
Agenda Item 3 July 5, 1995
RECOMMENDATION
By motion, authorize the Mayor to sign the attached Year 3 HOME grant contract for rehabilitation
of single family homes for low income households ($80,000).
Respectfully submitted,
Thomas Tomlinson,
Planning Director
Attachments
Draft Resolution
CC Resolution 93 -11 -16 -
Year 3 HOME Contract (on file in the City Clerk's Office)
cdbg\yr3HOMEc.cc
• RESOLUTION NO. 95-7-5-1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, APPROVING AND AUTHORIZING THE
MAYOR TO SIGN THE $80,000 YEAR 3 HOME GRANT CONTRACT (FISCAL
YEAR 1994-95) FOR THE REHABILITATION OF SINGLE-FAMILY HOMES
FOR LOW-INCOME HOUSEHOLDS
WHEREAS, the Federal Department of Housing and Urban Development (HUD)
annually offers funds to cities in the form of HOME Investment Partnership Program funds and for
the past three years the City of San Juan Capistrano has annually applied for these funds from the
County of Orange; and,
WHEREAS, this project has been reviewed in accordance with the California
Environmental Quality Act and the Planning Director has determined that implementation of these
programs constitutes "minor repair, maintenance, or alteration including interior and exterior
alterations, public utilities, public streets and right-of-way, restoration and rehabilitation of structures,
and installation of safety and health protection devices." Therefore, the Planning Director has
determined that father environmental evaluation is not required because the project is categorically
exempt, Class 1, existing facilities (Section 15301-15329); and,
WHEREAS, on October 27, 1993, the Citizen Participation Committee reviewed and
approved the proposed Year 3 HOME application at a public meeting, and;
WHEREAS, on November 9, 1993, the Planning Commission recommended approval
of the proposed Year 3 HOME application at a public meeting; and,
WHEREAS, on November 16, 1993, the City Council reviewed and approved the
proposed Year 3 HOME application at a public meeting; and,
WHEREAS, the City Council of the City of San Juan Capistrano finds and determines
as follows:
1. The Year 3 HOME Grant contract will provide direct assistance to the City's
low- and moderate -income households.
2. The Year 3 HOME program and the use of a City staff member to administer
the program represents the City's desire to aggressively expand its affordable housing program and
the amount of assistance that can be offered to the low- and moderate -income residents of the
community.
-1-
0
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby approve, and authorize the Mayor to sign, the Year 3 HOME Grant
contract (Fiscal Year 199495) for the rehabilitation of single-family homes with a total grant request
of $80,000.
PASSED, APPROVED, AND ADOPTED this Sth day of
July , 1995.
CAROLYN ASH, MAYOR
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California,
DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No.
95-7-5-1 adopted by the City Council of the City of San Juan Capistrano, California,
at a regular meeting thereof held on the 5th day of July 1995, by the
following vote:
AYES: Council Members Jones, Hart, Campbell, Swerdlin and
Mayor Nash
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL)
AA
CHERYL JO S , CITY CLERK
-2-
RESOLUTION NO. 93-11-16-2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE
COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION
FOR YEAR 20 (FISCAL YEAR 1994-1995) FOR TEN SEPARATE
PROGRAMS WITH A TOTAL GRANT REQUEST OF $438,000,
INCLUDING THE PROPOSED EXPENDITURE OF PROGRAM
INCOME ACCRUED IN YEAR 20
WHEREAS, the Federal Department of Housing and Urban Development
annually offers funds to cities in the form of Community Development Block Grant and
HOME funds and the City of San Juan Capistrano for the past twenty years has annually
applied for these funds from the County of Orange; and,
WHEREAS, this grant application has been reviewed in accordance with the
California Environmental Quality Act and the Planning Director has determined that
implementation of these programs constitute "minor repair, maintenance, or alternation
including interior and exterior alterations, public utilities, public streets and right-of-way,
restoration and rehabilitation of structures, and installation of safety and health protection
devices." Therefore, the Planning Director has determined that further environmental
evaluation is not required because the project is categorically exempt, Class 1, existing
facilities (Section 15301-15329); and,
WHEREAS, on October 27, 1993, the Citizen Participation Committee
reviewed and approved the proposed Year 20 Community Development Block Grant
application at a public meeting; and,
WHEREAS, on November 9, 1993, the Planning Commission recommended
approval of the proposed Community Development Block Grant Year 20 application at a
public meeting; and,
WHEREAS, the City Council of the City of San Juan Capistrano finds and
determines as follows:
1. The proposed Year 20 application for Community Development Block
Grant funds will provide both direct and indirect assistance to the City's low- and moderate -
income households.
2. The ten proposed programs and the use of a City staff member to
administrate them, represent the City's desire to aggressively expand its Community
Development Block Grant program and the amount of assistance that can be offered to the
low- and moderate -income residents of the community.
-1-
ATTACHMENT 2
0
0
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of San Juan Capistrano does hereby approve the Community Development Block Grant
application for Year 20 (fiscal year 1994-1995) for ten separate programs with a total grant
request of 5438,000, including the proposed expenditure of program income accrued in Year
20.
PASSED, APPROVED, AND ADOPTED this 16th day of
November , 1993.
G 1646NES, MAYOR
AT'T'EST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No.gi_i t -t6 -z adopted by the City Council of the City of San Juan
Capistrano, California, at a regular meeting thereof held on the 16th day of
November , 1993, by the following vote:
AYES: Council Members Nash, Hausdorfer and Campbell
NOES: None
ABSTAIN: Council Member Vasquez and Mayor Jones
ABSENT: None
(SEAL)
CLERK
CHERYL ! NS , CITY CLERK
-2-
1 ft a Contract No. EC41688
2
3 COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
4 HOUSING AND REDEVELOPMENT
CITY ADMINISTERED REHABILITATION
5 (HOME Program Year III)
6 TITLE OF PROJECT: City Of San Juan Capistrano - Rehabilitation of Single Family Residence
7
8
9 MEMORANDUM OF CONTRACT, entered into this day of , 19
10 BY AND BETWEEN:
11 City Of San Juan Capistrano, a
municipal corporation, hereinafter
12 referred to as "CITY",
AND
13
14 COUNTY OF ORANGE, a political
15 subdivision of the State of California
and recognized Urban County under the
16 Federal Housing and Community
Development Act of 1974 (Public Law
17 93-838), as amended, hereinafter
referred to as "COUNTY",
18
19 RECITALS: This Contract is made with reference to the following facts, among others:
20 WHEREAS, the COUNTY has applied for and received funds from the United States
21 Government pursuant to the HOME Investment Partnership Program (enacted by the National
22 Affordable Housing Act of 1990), hereinafter referred to as "HOME", and
23 WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement dated
24 July 21, 1993 which both parties agreed to cooperate in the undertaking, or assist in the
25 undertaking, of community development and housing assistance activities, and
26 WHEREAS, the CITY has submitted to the COUNTY an application for funding of a
27 project hereinafter described, and
28 WHEREAS, the COUNTY adopted its FINAL STATEMENT OF COMMUNITY
29 DEVELOPMENT OBJECTIVES AND PROJECTED USE OF FUNDS on May 17, 1994 by
30 Resolution No. 94-588 which sets forth the PROJECT described herein, and
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ATTACHMENT 3
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WHEREAS, HUDWs accepted and certified the aforementpes
FINAL STATEMENT.
NOW, THEREFO IS AGREED by and between the that the following provisions
well as all other applicable Federal regulations including 24 CFR 570.600-612 and appropriate
and COUNTY laws and regulations including the attached General Conditions, identified as
)it "A", and Exhibit "B", are part of this Contract.
SCOPE OF SERVICES
ACTIVITIES
The CITY will act as PROJECT MANAGER and, furthermore, will be responsible for
a HOME Year III Housing Rehabilitation project described herein, which will provide
loans, deferred payment loans, grants or rebates for home improvement of privately owned
properties within the CTTY's boundaries (see attached map, Exhibit "B"). All rehabilitation of
single family residential units will benefit low- and moderate -income families as defined and revised
by HUD. Project development and management costs are included. Such program will
include the following activity eligible under the HOME Program:
DELIVERY
Activity No. 1 - Single Family Housing Rehabilitation HOME Program
ADMINISTRATION
CITY will manage it's HOME Investment Partnership rehabilitation funds to implement the
Rehabilitation Project.
LEVELS OF ACCOMPLISHMENT
In addition to the normal administrative services required as part of this Contract, the CITY
agrees to provide the following levels of program services:
ACTIVITY
Rehabilitation (HOME)
IC. BUDGET
UNITS PER MONTH*
TOTAL UNITS/YEAR
10 Units
This contract is in an amount not to exceed $80,000.00 (Eighty thousand dollars and 00 cents).
Funds shall be used for the following items:
Costs relating to construction of projects, supplies and materials
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Contract No. EC41688
D. PERFORMANANITORING
The COUNTY will, in accordance with Section Ill., A. of this contract, monitor the
performance of the CITY against goals of the performance standards required herein. Substandard
performance as determined by the COUNTY constitutes noncompliance with this contract. COUNTY
may terminate this contract pursuant to Section H. of Exhibit "A" (General Conditions), attached
herewith.
II. TIME OF PERFORMANCE
Services of the CITY shall start on January 1, 1995 and end on December 31, 1995. The term
of this contract and the provisions herein shall be extended to cover any additional time period during
which the CITY remains in control of HOME funds or other assets including program income.
I11. PAYMENT
A. 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. Draw downs for the
of eligible costs shall be made against the line item budgets specified in Section I. D. herein
and in accordance with Exhibit "A" attached and in accordance with monthly performance reports,
for general administration shall also be paid against the line item budgets specified in Section
I. D. and in accordance with performance.
B. REIMBURSEMENT
1. On a monthly basis CITY may invoice to COUNTY for reimbursement of eligible costs (per
Section I. D. above). Concurrent with its request for the aforementioned funds, CITY shall submit to
COUNTY the following support documentation (copies of): paid invoices, receipts, payroll records,
bank statements, cancelled checks and other items adequate to document project expenditures. CITY
shall also provide a monthly performance report addressing its level of performance with each activity
undertaken relative to the Scope of Services set forth in Section I. herein, including Grantee
Performance Direct Benefit Activity information. Reimbursement of eligible expenses shall be made
against the items specified in Exhibit "A" - Administrative Requirement (Section II.A.2.).
-3-
1 Contract No. EC41688
2 bank statements, cancellm*ecks and other items adequate to docuot project expenditures. CITY
3 shall also provide a monthly performance report addressing its level of performance with each activity
4 undertaken relative to the Scope of Services set forth in Section I. herein, including Grantee Performance
5 Direct Benefit Activity information. Reimbursement of eligible expenses shall be made against the items
6 specified in Exhibit "A" - Administrative Requirement (Section II.A.2.).
7 IV. NOTICES
811 Communication and details concerning this contract shall be directed to the following contract
9 representatives:
10
A. TO COUNTY:
County of Orange
11
Environmental Management Agency
Housing and Redevelopment Function
12
1200 North Main Street, Suite 600
Santa Ana, CA 92701
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Attn: Chief, Grant Management Section
14
B. TO CITY:
City Of San Juan Capistrano
15
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
16
Attn: Mary Raskin
171IV. SPECIAL CONDITIONS
18 The CITY agrees to comply with the requirements of Title 24 Code of Federal Regulations,
19 Part 570 of the Department of Housing and Urban Development regulations concerning HOME and all
20 federal regulations and policies issued pursuant to these regulations. The CITY further agrees to utilize
21 funds available under this Contract to supplement rather than supplant funds otherwise available.
22 A. DEFINITIONS
23 For the PURPOSES OF THIS CONTRACT the following definitions shall apply:
24 1. 'PROJECT MANAGER": The party responsible for, but whose responsibility is not
25 limited to the following: Contracting, monitoring and implementing the PROJECT through completion.
26 2. 'DIRECTOR": The Director of the Orange County Environmental Management Agency
27 (hereinafter referred to as EMA) or his designee.
28 3. 'REIMBURSABLE BASIS": The CITY will provide the funds for the project and submit
29 proof of payment to the COUNTY, whereby upon approval, the COUNTY will forward HOME funds
30 to repay the CITY.
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Contract No. EC41688
4. "CONSTRU ON BID PACKAGE": A package of ng documents which includes
proposal, bidding instructions, contract documents, detailed estimated costs and plans and specifications
for a construction project, all prepared in accordance with applicable Federal regulations.
I B. PROJECT FUNDING
1. Invoices for all approved project costs funded by the grant under this Contract shall be
submitted within 90 days after the Contract expiration date. The date for project completion and
expenditure of all funds may be extended at the discretion of the DIRECTOR six (6) months from the
Contract expiration date, with written notification to the CITY. In the event of such an extension, the
deadline for submittal of invoices shall be 90 days after the new completion date. After Contract
expiration, all unexpended funds remaining from this Contract will be allocated by the COUNTY to
other eligible project(s) within the Urban County Program.
C. CITY agrees:
1. That the project shall be implemented and appropriately maintained for Community
Development purposes as defined by applicable HUD provisions to ensure maximum feasible benefit
and utilization of the project by low- and moderate -income persons.
2. 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 or progress on performance is unsatisfactory, the Board of Supervisors may withhold
further funding on the project pending resolution of the unsatisfactory condition(s), or may terminate
this Contract as prescribed in 24 CFR 85.43 and 85.44. In addition, the Board of Supervisors may
require the CITY to reimburse COUNTY any funds that it determines to be improperly expended or not
expended on the project in a timely manner based on applicable HOME Program Regulations.
3. To be responsible for design and inspection, including funding the costs related to those
activities, unless funding for design and inspection activities is provided for in Section I.C. of this
Contract.
///
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` Contract No. EC41688
4. If this contract! s*construction project, submit the Constru tion Bid Package for this project
to DIRECTOR for review prior to advertising for bids on the construction contract or prior to award of
such a contract if an alternative method of award is used. CITY shall not advertise for bids until
DIRECTOR has approved Construction Bid Package. CITY shall construct project in accordance with
the Construction Bid Package which DIRECTOR approved unless prior written approval is received
from DIRECTOR for modification therefrom.
5. That this Contract is conditional upon COUNTY being funded by HUD, and the release of
to COUNTY.
6. That this Contract is also conditional upon complying with HUD Environmental Review
HUD regulations at Title 24 CFR, Parts 50 and 58 which implement Section 102 (2)(c) of the
ral Environmental Policy Act of 1969.
7. To provide requested materials to COUNTY for the Environmental Review process requested
HUD. This process may take-up ninety (90) days.
MODIFICATIONVI RANSFERS
1. Any proposed modification or change in use of real property acquired or improved in whole
in part by HOME funds from that planned at the time of the acquisition or improvement, including
must be reported by CITY to the COUNTY and receive COUNTY concurrence thereto in
of implementing the modification or change in use.
2. The CITY shall transfer to COUNTY any HOME funds on hand at the time of Contract
and any accounts receivable attributable to the use of HOME funds. The CITY shall ensure
that any real property under the CITY's control that was acquired or improved in whole or in part with
funds in excess of $25,000 is either:
(a) Used to meet one of the national objectives in 24 CFR 570.208 until five years after
on of the contract; or,
(b) Is disposed of in a manner which results in the COUNTY being reimbursed in the amount of
current fair market value of the property less any portion thereof attributable to expenditures of non -
funds for acquisition of, or improvement to, the property. Such reimbursement is not required
the period of time specified in accordance with 2(a) above.
Eel
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fta Contract No. EC41688
E. AUDIT
1. CITY shall obtain an annual audit performed in accordance with OMB Circular A-128 and
forward a copy to DIRECTOR within 180 days after the end of each accounting year. 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.
F. AFFORDABILITY
Activities associated with the subject HOME Program dictate that the project be designated as
"affordable" for a minimum of 5 years, beginning after project completion and occupation. Rent
limitations shall remain in effect for not less than the appropriate period, as specified in
Section V. A.(a.)(5.) of Exhibit "A".
G. RENTAL
The rental housing property must be "affordable" for a minimum of 5 years as defined in 24 CFR
Part 92.252. In the event the property does not remain affordable for a minimum of 5 years, the
outstanding principal and interest, if any, is due and payable.
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Contract No. EC41688
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
EMA/Housing and Redevelopment, all having been duly authorized by the City Council of CITY and the
Orange County Board of Supervisors.
APPROVED AS TO FORM: City Of San Juan Capistrano, a political subdivsion
of the State of California,
CITY A7Fk0RNEY
By:
Dated: By:
Mayor Date
I ATTEST:
City Clerk
I Dated:
COUNTY OF ORANGE, a political
subdivision of the State of California
By:
Dhongchai Pusavat, Director
EMA-Housing and Redevelopment
!J!!lull!llll/1/l!!!!llllflll!llJlllllf!!llfl!!ll!!l!!!!ll!!lll11111/l!l!!!1!llJlllllllllllllll!!!!!lllfllflflllllfl11111/11111l11l11l11lllfllll!llfllllll!!
APPROVED AS TO FORM:
TERRY ANDRUS, COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
0 GRANTEE p AUDITOR
CONTROLLER
p CLERK OF THE BOARD
DATE: ITEM NO.
BOARD RESOLUTION NO.
I COUNTY OF ORANGE: HOUSING/REDEVELOPMENT I
no
f
MEMORANDUM
TO: Tom Tomlinson, Director of Planning
FROM: Richard K. Denhalter, City Attorney '�-
SUBJECT: HOME Program, Year III
E
Dated: March 31, 1995
The City Clerk asked for a signature on the attached Contract No. EC41688. There is no
explanation as to how the City is to be assured that Section III, 'Payment" and Section III, B,
"Reimbursement" are to be funded by the County of Orange. At the present time virtually all such
funds handled by the County are frozen in two bankruptcy cases now pending.
Section V, "Special Conditions" states:
"REIMBURSABLE BASIS": The CITY will provide the funds for the project and submit
proof of payment to the COUNTY, whereby upon approval, the COUNTY will foreward
HOME funds to repay the CITY.
On page 6, item 5, the condition is stated:
That this Contract is conditional upon COUNTY being funded by HUD, and the release
of funds to COUNTY.
I have repeatedly asked sources close to the pool bankruptcy case whether such pass-through
funding will actually occur, and they have not been encouraging. The text of this contract
describes a process of submittal of "paid invoices, receipts, payroll records, bank statements,
cancelled checks and other items adequate to document project expenditures" to the County of
Orange for reimbursement. Clearly all such documents are intended to be evidence that the City
has already expended its funds before filing a claim for reimbursement with the County. It would
appear that such a submittal at this time would simply place the City in a long line of unsecured
creditors of the County, with no assurance of payment.
Please provide an explanation of how this can be avoided for this program.
cc: City Clerk
City Manager
0
TO: City Clerk
City Manager
Director of Planning
FROM: Richard K. Denhalter, City Attorney n
SUBJECT: YEAR III HOME CONTRACT I
Dated: January 17, 1995
This office has been recently asked to routinely approve the Year III HOME Contract. In
reviewing the terms of this contract with the County of Orange, it appears to obligate the City to
expend up to $80,000 and seek reimbursement from the County.
The funds are Federal monies administered through the County. It would appear that the County
has no right to withhold eligible requests for reimbursement of these funds, however, recent
communications with the County have indeed resulted in apparent refusals to honor such requests
with the current bankruptcy as the reason. [See January 11, 1995, memorandum from the
Director of Administrative Services to the City Manager, entitled "Impacts of Orange County
Bankruptcy",]
In view of this behavior by the County, this office declines to sign this agreement with the County
until such assurances and current reimbursements have been provided. It is advised that all such
agreements be subjected to increased scrutiny, and that federal agencies be contacted to request
direct payment rather than County pass through of such funding.