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1995-1130_ORANGE ,COUNTY OF_Memorandum of Contract No. EC418431 1 0 Contract No. EC41843 2 3 COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY 4 HOUSING AND REDEVELOPMENT CITY ADMINISTERED REHABILITATION 5 (HOME Program Year XXI) 6 TITLE OF PROJECT: City Of San Juan Capistrano - Housing Rehabilitation (HOME) 7 8 9 MEMORANDUM OF CONTRACT, entered into this 30 A day of 191 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 Consolidated Plan on June 20, 1995 by 29 Resolution No. 95-443 which sets forth the PROJECT described herein, and 30 1 _ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 "I I 21 22 23 24 25 26 27 28 29 30 190. _ Contract No. EC41843 WHEREAS, HUT, is accepted and certified the aforemen ed Final Consolidated Plan. 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 ibit "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 administering a HOME Year XXI Housing Rehabilitation project described herein, which will provide low-interest loans, deferred payment loans, grants or rebates for home improvement of privately owned eligible properties within the CITY'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 pally by HUD. Project development and management costs are included. Such program will the following activity eligible under the HOME Program: AM DELIVERY Activity No. 1 - Single Family Housing Rehabilitation HOME Program :RAL ADMINISTRATION CITY will manage it's HOME Investment Partnership rehabilitation funds to implement the Housing Rehabilitation Project. B. 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 UNITS PER MONTH* TOTAL UNITS/YEAR Housing Rehabilitation (HOME) 10 units C. BUDGET This contract is in an amount not to exceed $100,000.00 (One hundred thousand dollars and 00 cents) Funds shall be used for the following items: Costs related to project, rehabilitation, salaries (including benefits) 2 I IIV 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0 48 Contract No. EC41843 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: Tom Tomlinson 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 ral regulations and policies issued pursuant to these regulations. The CITY further agrees to utilize s available under this Contract to supplement rather than supplant funds otherwise available. SPECIAL CONDITIONS DEFINITIONS For the PURPOSES OF THIS CONTRACT the following definitions shall apply: 1. 'PROJECT MANAGER": The party responsible for, but whose responsibility is not to the following: Contracting, monitoring and implementing the PROJECT through completion. 2. "DIRECTOR": The Director of the Orange County Environmental Management Agency referred to as EMA) or his designee. 3. 'REIMBURSABLE BASIS": The CITY will provide the funds for the project and submit sof of payment to the COUNTY, whereby upon approval, the COUNTY will forward HOME funds repay the CITY. -4- 1 11 0 4 Contract No. EC41843 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4. "CONSTRUCTION BID PACKAGE": A package of bidding documents which includes I proposal, bidding instructions, contract documents, detailed estimated costs and plans and specifications I for a construction project, all prepared in accordance with applicable Federal regulations. Ift 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 I 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 I require the CITY to reimburse COUNTY any funds that it determines to be improperly expended or not I 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 I activities, unless funding for design and inspection activities is provided for in Section I.C. of this I Contract. 1 /// I /// 5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 0 a Contract No. EC41843 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 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. Funds may not be drawndown until this condition has been met. 6. That this Contract is also conditional upon complying with HUD Environmental Review under HUD regulations at Title 24 CFR, Pans 50 and 58 which implement Section 102 (2)(c) of the National Environmental Policy Act of 1969 and the California Environmental Quality Act. 7. To provide requested materials to COUNTY for the Environmental Review process requested by HUD. This process may take-up ninety (90) days. 8. That funds may not be drawndown until the required environmental documentation clearance has been issued. 9. To maintain records as to services provided and total number of persons served through the project, including percentage of: low income persons and very -low income persons as defined by HUD: persons by ethnicity; female -headed households. Such information shall be available for periodic monitoring by representatives of the COUNTY or HUD and shall be submitted in report form to COUNTY on a quarterly basis. D. MODIFICATIONS/rRANSFERS 1. Any proposed modification or change in use of real property acquired or improved in whole or 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. :on 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24'. 25� 26 27 28 29 30 311 0 Contract No. EC41843 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 I 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 I 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. E. AMENDMENTS Any amendments to this Contract shall be completed in accordance with Sectino I.G. (Amendments) of Exhibit A attached. F. 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. G. AFFORDABILITY Activities associated with the subject HOME Program dictate that the project be designated as I "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". H. RENTAL The rental housing property must be "affordable" for a minimum of 5 years as defined in 24 CFR I 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. -7- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0 0 Contract No. EC41843 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: Bpi ATTEST: i ri te.✓u! Dated: �1 APPROVED AS TO FORM: COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA JUN - 61995 BS/AB:YRXXI (6/1/95) City Of San Juan Capistrano, a political subdivsion of the State of California, By: ` %sem- q1' 9� Mayor Date COUNTY OF ORANGE, a political subdivision of the State of California By: Dhongchai Pusavat, Director EMA-Housing and Redevelopment Et ORIGINAL Ef-GRANTEE p AUDITOR CONTROLLER p CLERK OF THE BOARD DATE: 6 -2V-91 ITEM NO. F 7 BOARD RESOLUTION NO. COUNTY OF ORANGE: HOUSING/REDEVELOPMENT F 11 • Exhibit "A" to COUA/SUBRECIPIENT HOME Contract) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 GENERAL CONDITIONS I. GENERAL PROVISIONS A. General Compliance The SUBRECIPIENT agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this contract. B. Independent Contractor Nothing contained in this Contract is intended to, or shall be construed in any manner, asi creating or establishing the relationship of employer/employee between the parties. The SUBRECIPIENT shall at all times remain an independent contractor with respect to the services to be performed under this Contract. The COUNTY shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the SUBRECIPIENT is an independent contractor. C. Hold Harmless The SUBRECIPIENT shall hold harmless, defend and indemnify the GRANTEE from any all s, actions, suits, charges and judgments whatsoever that arise out of the SUBRECIPIENT'sl or nonperformance of the services or subject matter called for in this Contract. D. Workers' Compensation The SUBRECIPIENT shall provide Workers' Compensation Insurance coverage for all) involved in the performance of this contract. I3. Insurance & Bonding The SUBRECIPIENT shall carry sufficient insurance coverage to protect contract assets from due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket covering all employees in an amount equal to cash advances from the COUNTY. The SUBRECIPIENT shall comply with the bonding and insurance requirements B of OMB Circular A-110, Bonding and Insurance. -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract F. Grantor Recoenition The SUBRECIPIENT shall insure recognition of the role of the grantor agency in services through this Contract. All activities, facilities and items utilized pursuant to this Contract shall be prominently labeled as to funding source. In addition, the SUBRECIPIENT will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. G. Amendments COUNTY or SUBRECIPIENT may amend this Contract at any time provided that such amendments make specific reference to this Contract, and are executed in writing, signed by a c authorized representative of both organizations. Such amendments shall not invalidate this Contract, relieve or release COUNTY or SUBRECIPIENT from its obligations under this Contract. Any prop( amendment to this Contract shall be submitted to and approved by the COUNTY, prior to commencen by COUNTY of any activity covered by said amendment. COUNTY may, in its discretion, amend this Contract to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of, the activities to be undertaken as part of this Contract, such modifications will be incorporated only by written amendment signed by a duly authorized representative of both organizations. H. Suspension or Termination In the event of SUBRECIPIENT's failure to comply with the provisions of this Contract and pursuant to 24 CFR 85.43 and 85.44, COUNTY may withhold or require SUBRECIPIENT reimbursement of funds, and/or terminate this Contract, and/or allocate funds previously assigned to this Contract to another eligible project(s) within the Urban County. Either party may terminate this Contract at any time by giving written notice to the other party such termination and specifying the effective date thereof at least 30 days before the effective date termination. Partial terminations of the Scope of Service in Paragraph I.A above may only be with the prior approval of (grantee). In the event of any termination for convenience, or unfinished documents, data, studies, surveys, maps, models, photographs, reports or prepared by SUBRECIPIENT under this Contract shall, at the option of the COUNTY -2- 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Exhibit "A" to COUW/SUBRECIPLENT HOME Contract the 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) termination. COUNTY may also suspend or terminate this Contract, in whole or in part, SUBRECIPIENT materially fails to comply with any term of this Contract, or with any of the rules, or provisions referred to herein; and the COUNTY may declare the SUBRECIPIENT ineligible 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 contract funds until such time as the SUBRECIPIENT is found to be in compliance by the COUNTY, or is rtherwise 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 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The SUBRECIPIENT shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational " as applicable; (and if the SUBRECIPIENT is a governmental or quasi-govemmental 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 or indirect basis. -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract B. Documentation and Record -Keeping 1. Records to be Maintained The SUBRECIPIENT shall maintain all records required by the federal regulations specified in 24 CFR Parts 570.503(b)(2), 570.506, 570.5078 and that are pertinent to the activities to be funded 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 Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. These records shall be kept available at SUBRECIPIENT's office during the project's com period and thereafter for three (3) years from the date SUBRECIPIENT receives final payment from contract. 2. Retention 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 -4- t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Exhibit "A" to COU*/SUBRECIPIENT HOME for determining eligibility, and description of service provided. Such information shall be made COUNTY monitors or their designees for review upon request. 4. Property Records The SUBRECIPIENT shall maintain real property inventory records which clearly identify purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8). 5. National Objectives The SUBRECIPIENT agrees to maintain documentation that demonstrates that vities carried out with funds provided under this Contract meet one or more of the CDBG program 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 Part 570.208. 6. Close -Outs 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, unspent advances, program income balances, and receivable accounts to the COUNTY and determining the of records. 7. Audits & Inspections All SUBRECIPIENT records with respect to any matters covered by this Contract shall be made available to the COUNTY, grantor agency, their designees or the Federal Government, at any time normal business hours, as often as the COUNTY or grantor agency deems necessary, to audit, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must 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 agrees to have an annual agency audit conducted in accordance with current COUNTY policy concerning SUBRECIPIENT audits. -5- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 C. Reporting and nd Payment Procedures 2 1. Budgets 3 The SUBRECIPIENT will submit a detailed contract budget of a form and contentl 4 prescribed by the COUNTY for approval by the COUNTY. The COUNTY and the SUBRECIPIENT 5 may agree to revise the budget from time to time in accordance with existing COUNTY policies. 6 2. Program Income 7 The SUBRECIPIENT shall report quarterly all program income as defined at 24 CFR 8 570.500(a) generated by activities carried out with CDBG funds made available under this Contract. The 9 use of program income by the SUBRECIPIENT shall comply with the requirements set forth at 24 CFR'I 10 570.504. By way of further limitation, the SUBRECIPIENT may use such income during the contract 11 period for activities permitted under this Contract and shall reduce request for additional funds by the 12 amount of any such program income balances on hand. All unused program income shall be returned to 13 the COUNTY at the end of the contract period. Any interest earned on cash advances from the U.S. 14 Treasury is not program income and shall be remitted promptly to the COUNTY. 15 Program income generated from cash advance and/or the mere holding of CDBG funds 16 must be paid to the COUNTY per 24 CFR 570.504(c) for subsequent return to HUD. 17 Any program income generated from the sale, transfer or change in the use of assets (e.g. 18 real property) acquired or improved in whole or in part by CDBG funds must be returned to the COUNTY 19 in proportion to the CDBG contribution thereof. 20 The SUBRECIPIENT may retain all program income only if that program income is used 21 exclusively for eligible activities, subject to the "DIRECTOR'S' review, and in accordance with all CDBG 22 requirements as may then apply. 23 SUBRECIPIENT shall keep and maintain appropriate records on the use of any such 24 program income as may be required by EMA staff since the COUNTY has the responsibility of monitoring', 25 and reporting program income to HUD. 26 1 In the event of SUBRECIPIENT close-out or change in status of the participating 27 SUBRECIPIENT in the Urban County CDBG Program, any program income at that time or received CS II • Exhibit "A" to COUiV'Ti'/SUBRECIPLENT HOME Contractl 1 subsequent to the close-out or change in status shall be paid by SUBRECIPIENT to the COUNTY within 2 90 days thereafter. 3 3. Indirect Costs 4 If indirect costs are charged, the SUBRECIPIENT will develop an indirect cost allocation 5 plan for determining the appropriate COUNTY share of administrative costs and shall submit such plan to 6 the COUNTY for approval. 7 4. Payment Procedures 8 a. The COUNTY will pay to the SUBRECIPIENT funds available under this Contract 9 based upon information submitted by the SUBRECIPIENT and consistent with any approved budget and 10 COUNTY policy concerning payments. With the exception of certain advances, payments will be made 11 for eligible expenses actually incurred by the SUBRECIPIENT, and not to exceed actual cash 12 requirements. Payments will be adjusted by the COUNTY in accordance with advance fund and program 13 income balances available in SUBRECIPIENT accounts. In addition, the COUNTY reserves the right to 14 liquidate funds available under this Contract for costs incurred by the COUNTY on behalf of the 15 SUBRECIPIENT. 16 a. Payment by the COUNTY to SUBRECIPIENT shall be on a reimbursable basis unless 17 SUBRECIPIENT has been authorized and issued a cash advance at the discretion of the DIRECTOR 18 under this Contract. 19 b. The SUBRECIPIENT is permitted one (1) cash advance under this Contract and it may 20 be made by the DIRECTOR to SUBRECIPIENT if the following conditions are met: 21 (1) SUBRECIPIENT has demonstrated to DIRECTOR through certification in a 22 form prescribed by DIRECTOR and subsequently through performance, its willingness and capacity to 23 establish SUBRECIPIENT financial procedures that will minimize the time elapsing between the receipt of 24 funds and proper disbursement of such funds. 25 (2) SUBRECIPIENT certifies to DIRECTOR, that SUBRECIPIENT's financial 26 management system meets the standards for fund control and accountability as directed in 24 CFR 27 570.502(a), if a governmental Subrecipient, and 24 CFR 570.502(b), if a non-governmental recipient; and 28 as prescribed in Office of Management and Budget Circular A-87, if a governmental Subrecipient, and -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNT , iSUBRECIPLENT HOME Contract of Management and Budget Circulars A-122 and A-21 if a non-governmental Subrecipient; amended. (3) SUBRECIPIENT complies with EMA financial cash advance procedures as by HUD in 24 CFR 85.21 Payment regulations and the United States Treasury regulations in 31 CFR Part 205. These procedures require that upon written receipt of funds from the COUNTY, SUBRECIPIENT shall disburse payment(s) to vendor(s) within five (5) working days and submit evidence of such disbursement(s) (i.e., warrant copies, etc.) to the DIRECTOR. c. If SUBRECIPIENT is subsequently found, by DIRECTOR, to be in noncompliance with Section 6.b.(1) through Section 6.b.(3), SUBRECIPIENT shall in the future be paid on a basis. d. Reimbursable basis payments, as referred to in Section 6.a. and/or cash advance described in Section 6.b. shall be made in accordance with EMA financial procedures. In the event between EMA financial procedures and any applicable statutes, rules or regulations of HUD, including Office of Management and Budget Circular No. A-87, if a governmental Subrecipient, Office 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, COUNTY will accept securities equivalent to the amount withheld. Such substituted security, meeting the 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. 5. Proeress Reports The SUBRECIPIENT shall submit regular Progress Reports to the COUNTY in the form, and frequency as required by the COUNTY. D. Procurement 1. Compliance The SUBRECIPIENT shall comply with current COUNTY policy concerning the purchase of equipment and shall maintain an inventory record of all non -expendable personal property as defined by in A" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Exhibit "A" to COUW/SUB RECIPIENT HOME Contractl 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. 2. OMB Standards The SUBRECIPIENT shall procure materials in accordance with the requirements ttachment O of OMB Circular A-110. Procurement Standards, and shall subsequently follow Attachment l , 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. 4. Relocation, Acquisition and Displacement The SUBRECIPIENT agrees to comply with 24 CFR 570.606 relating to the acquisition and disposition of all real 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 utilizing grant funds. The SUBRECIPIENT agrees to comply with applicable COUNTY Ordinances, Resolutions, and Policies concerning displacement of individuals from their residences. III. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of the Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The SUBRECIPIENT will not discriminate against any employee or applicant because of race, color, creed, religion, ancestry, national origin, sex, disability or age, marital status, or status with regard to public assistance. The SUBRECIPIENT will action to insure that all employment practices are free from such discrimination. Such W1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNT,,,iUBRECIPIENT HOME Contrac employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. 3. Section 504 The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohibits discrimination against the handicapped in any federally assisted program. The COUNTY shall provide the SUBRECIPIENT with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Contract. B. Affirmative Action 1. Approved Plan The SUBRECIPIENT agrees that it shall be committed to carry out pursuant to the specifications an Affirmative Action Program in keeping with the principles as provided in s Executive Order 11246 of September 24, 1985. The (Grantee) shall provide Affirmative guidelines to the SUBRECIPIENT to assist in the formulation of such program. The shall submit a plan for an Affirmative Action Program for approval prior to the award The SUBRECIPIENT will use its best efforts to afford minority and women -owned enterprises the maximum practicable opportunity to participate in the performance of this Contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one (5 1) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. The Subrecipient may rely on written representations by SUBRECIPIENTs regarding their status as minority and female business enterprises in lieu of an independent investigation. -10- A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 3. Access to Records Exhibit "A" to COUAISUBRECIPIENT HOME Contract) The SUBRECIPIENT shall furnish and cause each of its sub-SUBRECIPIENTs to furnish I all information and reports required hereunder and will permit access to its books, records and accounts by the COUNTY, HUD or its agents, or other authorized federal officials for purposes of investigation tol 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 the agency contracting officer, advising the labor union or worker's representative of the commitments hereunder, and shall post copies of the notice in conspicuous places to employees and applicants for employment. 5. EEO/AA Statement The SUBRECIPIENT will, in all solicitations or advertisements for employees placed on behalf of the SUBRECIPIENT, state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions The SUBRECIPIENT will include the provisions of Paragraphs VIII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each subSUBRECIPIENT or vendor. C. Employment Restrictions 1. Prohibited Activity The SUBRECIPIENT is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants' health or safety. -11- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNT'tioUBRECIPIENT HOME Contract 3. Labor Standards The SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Contract. The SUBRECIPIENT shall maintain documentation which demonstrates with hour and wage requirements of this part. Such documentation shall be made available toff the COUNTY for review upon request. The SUBRECIPIENT agrees that, except with respect to the rehabilitation or constructions of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building work financed in whole or in part with assistance provided under this contract, shall comply with adopted by the COUNTY pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5 and 7 governing the of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended the SUBRECIPIENT of its obligation, if any, to require payment of the higher rate. The SUBRECIPIENT shall cause or require to be inserted in full, in all such Contracts subject to such provisions meeting the requirements of this paragraph, for such Contracts in excess 10,000.00. 4. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Contract, shall be of the federal financial assistance provided under this Contract and binding upon the COUNTY the SUBRECIPIENT and any subSUBRECIPIENTs. Failure to fulfill these requirements shall subject the COUNTY, the SUBRECIPIENT and any subSUBRECIPIENTs, their successors and assigns, to those sanctions specified by the Contract through which federal assistance is provided. The -12- • Exhibit "A" to COU*/SUBRECIPIENT HOME Contract I SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would prevent 2 compliance with requirements. 3 The SUBRECIPIENT further agrees to comply with these "Section 3" requirements 4 and to include the following language in all subcontract executed under this Contract: 5 "The work to be performed under this Contract is a project assigned under a program 6 providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of 7 the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that 8 to the greatest extent feasible opportunities for training and employment be given to lower income 9 residents of the project area and contracts for work in connection with the project be awarded to business 10 concerns which are located in, or owned in substantial part by persons residing in the areas of the project." 11 The SUBRECIPIENT certifies and agrees that no contractual or other disability exists 12 which would prevent compliance with the requirements. 13 b. Notifications 14 The SUBRECIPIENT agrees to send to each labor organization or representative of 15 workers with which it has a collective bargaining Contract or other contract or understanding, if any, a 16 notice advising said labor organization or worker's representative of its commitments under this Section 3 17 clause and shall post copies of the notice in conspicuous places available to employees and applicants for 18 employment or training. 19 c. Subcontracts 20 The SUBRECIPIENT will include Section 3 clause in every subcontract and will take 21 appropriate action pursuant to the subcontract upon a finding that the subSUBRECIPIENT is in violation 22 of regulations issued by the Grantor Agency. The SUBRECIPIENT will not subcontract with any 23 subSUBRECIPIENT where it has notice or knowledge that the latter has been found in violation of 24 regulations under 24 CFR 135 and will not let any subcontract unless the subSUBRECIPIENT has first, 25 provided it with a preliminary statement of ability to comply with the requirements of these regulations. 26 1 /// 27 91 -13- Exhibit "A" to COUNTY/SUBRECIPIENT HOME Contract 1 D. C nduct 2 1. Assignability 3 The SUBRECIPIENT shall not assign or transfer any interest in this Contract without the 4 prior 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 Chapter 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 required 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 program. 22 4. Subcontracts 23 a. Anorovals 24 The SUBRECIPIENT shall not enter into any subcontracts with any agency or 25 individual in the performance of this Contract without the written consent of the COUNTY prior to the 26 execution of such Contract. 27 /// 28 /// -14- A • Exhibit 'A' to COU W/SCBRECIPIENT HOME Contract I b. Monitorine 2 The SUBRECIPIENT will monitor all subcontracted services on a regular basis to 3 assure contract compliance. Result of monitoring efforts shall be summarized in written reports and 4 supported with documented evidence of follow-up actions taken to correct areas of the noncompliance. 5 c. Content 6 The SUBRECIPIENT shall cause all of the provisions of this Contract in its entirety to 7 be included in and made a part of any subcontract executed in the performance of this Contract. 8 d. Section Process 9 The SUBRECIPIENT shall undertake to insure that all subcontracts let in the 10 performance of this Contract shall be awarded on a fair and open competition basis. Executed copies of all 11 subcontracts shall be forwarded to the COUNTY along with documentation concerning the selection 12 13 5. Copybaht 14 If this contract results in any copyrightable material, the COUNTY and/or grantor agency 15 reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwide 16 use and to authorize others to use, the work for government purposes. 17 1 6. The SUBRECIPIENT agrees that funds provided under this contract will not be utilized for 18 religious activities, to promote religious interest, or for the benefit of a religious organization in accordance 19 with the federal regulations specified in 24 CFR 570.2000). 20 7. Religious us Organization 21 The Subrecipient agrees that funds provided under this contract will not be utilized 22 religious activities, to promote religious interests, or for the benefit of a religious organization 23 accordance with the federal regulations specified in 24 CFR 570.2000). 24 8. Drag Free Workplace 25 SUBRECIPIENT certifies that it will maintain a drug-free workplace as defined by HI 26 11on project(s) funded by this Agreement. 27 /// -15- Exhibit "A" to COUNTS i.3UBRECIPLENT 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 13 II o Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R, Part 50, asl 14 amended. 15 11 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. 6[Z 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Exhibit "A" to COU4w/SUBRECIPIENT HOME Contract) D. Historic Preservation The SUBRECIPIENT agrees to comply with the Historic Preservation requirements set forthl in 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 Historic Properties, insofar as they apply to the performance of this contact. In general, this requires concurrence from the State Historic Preservation Officer for and demolition of historic properties that are fifty years old or older or that are included on State, or local historic property list. SPECIAL HOME PROVISIONS If this Agreement is funded by HOME Investment Partnership Program, the following A. Section 92.252 Oualification as Affordable Housing and Income Targeting: Rental Housing As applicable housing assisted with HOME Investment Partnership Funds must meet Affordability requirements as follows: (a) Rent Limitation: A rental housing project (including the non -owner -occupied units in housing purchased with HOME funds in accordance with 92.254) qualifies as affordable housing under this 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 (excluding telephone) to be paid by the tenant; or (ii) The rent that does not exceed 30 percent of the adjusted income of a family whose gross income equals 65 percent of the median income for the area, as determined by HUD, with adjustment for smaller and larger families, except that HUD, which may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities -17- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Exhibit "A" to COUNT jUBRECIPIENT HOME Contracts and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unitl and adjusted income assumptions to be used in calculating the maximum rent allowed under this paragraph (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 o the family's monthly adjusted income as determined by HUD. To obtain the maximum monthly rent tha may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction multiplie the annual adjusted income of the tenant family by 30 percent and divides by 12 and, if applicable subtracts a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant or (ii) Occupied by very low-income families and bearing rents not greater than 30 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 income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of contraction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit assumptions to be used in calculating the maximum rent allowed under paragraph (a)(2)(ii) 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 (Rental Voucher Program) or to the holder of a comparable document evidencing participation in a HOME tenant - based assistance program because of the status of the prospective tenant as a holder or such certificate of family participation, rental voucher, or comparable HOME tenant -based assistance document; and M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 0 Exhibit "A" to COUOY/SUBRECIP1ENT HOME Contract (5) Will remain affordable, pursuant to deed restrictions, for not less than the 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 review and approve rents proposed by the owner for units with "flat rents," i.e., units subject to the maximum rent limitations in paragraph (a)(1), (a)(1)(ii), or (a)(2)(ii) of this section, and, if applicable, must review and approve, for all units subject to the maximum rent limitations paragraph (a) of this section, the monthly allowances, proposed by the owner, for utilities and services to be paid by the tenant. The owner 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 participating 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 provide tenants 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 despite 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 ensure all vacancies are filled in accordance with this section until the noncompliance is corrected. 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit "A" to COUNTI /SUBRECIPIENT HOME Contract who no longer qualify as low-income families must pay as rent not less than 30 percent of the family's adjusted monthly once, as 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 to support the continued financial viability of the project and only by an amount that HUD determines is necessary to maintain continued financial viability of the project. HUD expects that this authority will be used sparingly. Adjustments in fair market rents and in median income over time should help maintain the viability of a project within the qualifying rent standard in paragraph (a)(1) of this section. B. SECTION 92.253 TENANT AND PARTICIPANT PROTECTIONS (a) Lease. The lease between a tenant and an owner of rental housing assisted with HOME funds must be for not less than one year, unless by mutual agreement between the tenant and the owner. (b) Prohibited lease terms. The lease may not contain any of the following provisions: (1) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to in favor of the owner in a lawsuit brought in connection with the lease; (2) Treatment of property. Agreement by tenant that the owner may take, hold, or sell property of household members without notice to the tenant and a court decision on the rights the parties. This prohibition, however, does not apply to an agreement by the tenant concemingi disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with state, law; (3) Excusing owner from responsibility. Agreement by the tenant not to hold the owner the owner's agents legally responsible for any action or failure to act, whether intentional or negligent; (4) Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; (5) Waiver of legal proceedings. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; (6) Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury; -20- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Exhibit "A" to COUIO/SUBRECIPIENT HOME Contractl (7) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and (8) Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. (c) Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable federal, state, or local law; or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action. (d) Maintenance and replacement. An owner of rental housing assisted with HOME funds must maintain the premises in compliance with all applicable housing quality standards and local code requirements. (e) Tenant selection. An owner of rental housing assisted with HOME funds must adopts tenant selection policies and criteria that - (1) Are consistent with the purpose of providing housing for very low-income and low -I income families, (2) Are reasonably related to program eligibility and the applicants' ability to perform the of the lease, (3) Give reasonable consideration to the housing needs of families that would have preference under 960.211 (Federal selection preferences for admission to Public Housing) of this title; and (4) Provide for - (i) The selection of tenants from a written waiting list in the chronological order of insofar as is practicable; and (ii) The prompt written notification to any rejected applicant of the grounds for any -21- 1 II C. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Exhibit "A" to COUNT' :;BRECIPIENT HOME (a) Purchase with or without rehabilitation. Housing that is for purchase by a family as affordable housing only if the housing: (1)(i) Has an initial purchase price that does not exceed the mortgage limit for the type single family housing (1 -to 4 -family residence, condominium unit, combination manufactured home and lot, or manufactured home lot) for the area (including any applicable high-cost mortgage limit published by HUD in the FEDERAL REGISTER) under HUD's single family insuring authority under the National Housing Act. For a cooperative unit, the purchase price for a cooperative share may not exceed the balance remaining after subtracting from the 1 -family mortgage limit an amount equal to the blanket mortgage 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 92.251 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 at time of purchase; (3) Is made available for initial purchase only to fust -time homebuyers; and (4) Is made available for subsequent purchase only - W 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 jurisdiction 19 11 and determined by HUD to be appropriate - 20 21 22 23 24 25 26 (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 yers 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, and ;e do not exceed 30 percent of the gross income of a family with an income equal to 75 percent of income for the area, as determined by HUD with adjustments for smaller and larger families. 27 11 (b) Rehabilitation not involving purchase. Housing that is currently owned by a family 28 liqualifies as affordable housing only if- -22- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 0 Exhibit "A" to COUIO/SUBRECIPiENT HOME Contrac (1) The value of the property, after rehabilitation, does not exceed the mortgage limit for the type of single family housing (1- to 4 -family residence condominium unit, combination home and lot, or manufactured home lot) for the area (including any applicable high-cost mortgage limit by HUD in the FEDERAL REGISTER) under HUD's single family insuring authority the National Housing Act (see 24 CFR 201.10, 203.18, 203.18a, 203.18b, and 234.27); and (2) The housing is the principal residence of an owner whose family qualifies as a low - family at the time HOME funds are committed to the housing. D. FEDERAL MANAGEMENT CIRCULAR 74-7 has been replaced with Office of and Budget (OMB) A -102. In the event said project(s) is determined not to substantially meet all the of the HOME Investment Partnership Program, City will cooperate with County in the return of said funds expended on ineligible activities. Funds so returned shall be made available for other Housing Rehabilitation Activities as per terms of this agreement. E. MONITORING City will cooperate in the County monitoring of HOME Investment Partnership Funds annually. In particular, City will cooperate with County in monitoring all rental projects funded as provided by N, O and P above. GSBJGMW5A2-5 (09/01/94) -23- City Boundary SCALE: f'-3300' Census Trac; Boundary SAN JUAN CAPISTRANOE29M ER7RONMENT_A-L :YLANAGEMENT AGENCY ?ti 0 9. AUTHORIZATIONFOR •C A T :COMMUNITY As set forth in the Report dated September 5, 1995, from the Planning Director, the Mayor was authorized to execute the following CDBG/HOME Year XXI grant contracts on behalf of the City in the total amount of $207,500: Contract No. EC41807 in the amount of $100,000 for housing rehabilitation; 2. Contract No. EC41831 in the amount of $7,500 for youth scholarships; --�3. Contract No. EC41843 in the amount of $100,000 for single-family rehabilitation. The following items were removed from the Consent Calendar and considered separately. • • ;••;• 1 .: • XMI TZET0113t;VEGIZIN NMI MEW WARa, II :1 1 Written Communicatioq: Report dated September 5, 1995, from Douglas Dumhart, Management Analyst II, recommending that freeway signage be modified to assist local businesses, as recommended by the Business Task Force. Council Member Hart noted that Caltrans did not approve six out of the 17 signs submitted for approval and requested that this item be continued to receive an update from staff. Council Member Campbell requested that staff provide clarification as to the reasons for Caltrans' opposition to the six signs. Mayor Nash also requested that staff provide the Council with a list of signs that will continue to remain, new signs proposed, and sign modifications. Continuation of Item: It was moved by Council Member Jones, seconded by Council Member Hart, and unanimously carried that this item be continued to the meeting of October 3, 1995, for further clarification. Written Communications: (1) Report dated September 5, 1995, from the Planning Director, recommending that the request by Valencia Productions be approved to conduct a cultural festival and concert on the City's Northwest Open Space property on September 16, 1995, subject to approval of a Special Activities Permit. City Council Minutes -5- 915195 0 AGENDA ITEM TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director September 5, 1995 SUBJECT: Authorization to Execute Contracts for Receipt of CDBG and HOME Grants R I4ZI u u ►1 a�IYCIxl By Motion, authorize the Mayor to sign on behalf of the City the attached grant contracts in the cumulative amount of $207,500.00 for rehabilitation of low income household residences and disadvantage youth scholarships. SITUATION A. APPLICANT City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. SUMMARY AND RECOMMENDATION - In November of this past year the City as part of the CDBG/HOME grant application process submitted a number of projects and funding request to the County of Orange for their consideration which included housing rehabilitation funding and youth scholarships. After going through further reviews and competition with other grant requests, the City has been awarded grant funding for housing rehabilitation and disadvantage youth scholarships in the cumulative amount of $207,500.00. As general information grant funding is based upon the merits of the request and are not allocated to City based upon any formulas. As the City Council is aware, the housing rehabilitation grants have been a recurring funding program over many years. A year ago, the City had applied and was granted $7,500 for a scholarship program to help provide access to children of low income families to participate in non -school sponsored recreation and cultural events. These funds were in addition to those that we receive for housing rehabilitation. This year we made a similar grant request and received continued funding for both housing rehabilitation grants and the youth scholarship program. The grant funding is broken down as shown on the following page. FOR CITY COUNCIL AGENt ND/ / / E WIC)l�L-ORWOul 1. Contract No. EC41807 2. Contract No. EC41831 3. Contract No. EC41843 0 -2- September 5, 1995 $100,000 (Housing Rehabilitation) $ 7,500 (Youth Scholarships) $100,000 (Single Family Rehabilitation) Attached are the subject contracts associated with each grant category. Staff recommends that the City Council authorize the Mayor to execute the contracts. COMMISSIONBOARD REVIEW AND RECOMMENDATION None required. The application submittal was reviewed previously by the specially appointed Application Committee (1994), the Planning Commission and the City Council in November 1994. FINANCIAL CONSIDERATION The residents of this City will be the direct beneficiaries of these grant funds. $200,000.00 is designated for housing rehabilitation of structures occupied by low income households. $7,500 has been designated to support non -school related recreation and cultural events for children from low income families. Administrative cost to the City for conducting these programs are a grant expenditure subject to specified limitations. PUBLIC NOTIFICATION A public hearing is not required for this item. ALTERNATE ACTIONS Authorize the Major to sign the applicable contracts for grant funds. 2. Do not authorize the Mayor to sign the applicable contracts for grant funds. Continue the item and direct staff to return with further information on specific issues. AGENDAITEM WXKIWMDI► 7_r Y tom -3- September 5, 1995 By Motion, authorize the Mayor to execute on behalf of the City the attached CDBG/HOME contracts. Respectfully submitted, Thomas Tomlinson, Planning Director Attachments: Contract No. EC41807 (CDBG Grant of $100,000) Contract No. EC41831 (CDBG Grant of $7,500) Contract No. EC41843 (HOME Grant of $100,000) cdbg9.5 L] September 6, 1995 Chief, Grant Management Section Orange County EMA Housing & Redevelopment Function 1200 North Main, Suite 600 Santa Ana, California 92701 see � �y I 9©Cll� `)ymenxx�x wnusxm IA61 1776 Re: Community Development Block Grant and HOME Contracts MEMBERS OF THE CRY COUNCIL COLLEIE CAMPBELL WYATT HART GILJOlES CAROIYN NASH DAVID SWERDUN CRY MANAGER At their meeting of September 5, 1995, the City Council of the City of San Juan Capistrano approved the following three contracts with the County for Community Development Block Grant and HOME funds: 1. Contract No. EC41807 for CDBG Program Year XXI in the amount of $100,000 for Housing Rehabilitation; 2. Contract No. EC41831 for CDBG Program Year XXI in the amount of $7,500 for Youth Scholarships' 3. Contract No. EC41843 for HOME Program Year XXI in the amount of $100,00 for Single Family Rehabilitation. One copy with 4 additional signature pages of each Contract has 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. Thank you for your cooperation. If I can be of further assistance, I can be reached at 443-6308. Very truly yours, 0�- Lp'c Cheryl Johrt,%bn City Clerk Enclosure cc: Planning Director (with copies of Contracts) 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171