HomeMy WebLinkAbout24-1648ORDINANCE NO. 24- 1648
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO
EXECUTE A FUNDING AGREEMENT BETWEEN THE CITY AND HABITAT FOR HUMANITY
OF DENTON COUNTY, INC. TO PROVIDE COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS FOR A MINOR REPAIR PROGRAM IN DENTON, TEXAS; AUTHORIZING THE
EXPENDITURE OF FUNDS IN AN AMOUNT NOT TO EXCEED $49,946; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton (the “City”) has received Community Development Block Grant
(''CDBG“) funds from the U.S. Department of Housing and Urban Development (“HUD”) under Title I of
the Housing and Community Development Act of 1974, as amended; CDBG Program, CFDA Number
14-218; and
WHEREAS, the City has adopted a budget and included therein an authorized budget for the
expenditure of CDBG funds in accordance with its 2023-2027 City of Denton Consolidated Plan; and
WHEREAS, the Community Services Advisory Committee (’'CSAC") of the City has reviewed
the proposal for services of Habitat For Humanity Of Denton County, Inc. (the “SUBRECIPIENT”) for a
Minor Repair Program and has determined that the SUBRECIPIENT performs an important service for
the residents of Denton without regard to race, religion, color, age, or national origin, and the CSAC
recommends the award of CDBG funds for such services in accordance with the 2023-2027 City of
Denton Consolidated Plan pursuant to the 2024-2025 Community Development Block Grant Service
Agreement between the City and SUBRECIPIENT attached hereto as Attachment 1 and incorporated
herein for all purposes (the “Agreement”); and
WHEREAS, the Minor Repair Program will provide a benefit to low- and moderate-income
households of seniors, persons with disabilities, or families with children in the City of Denton; and
WHEREAS, the City has designated the Community Development Division as the division
responsible for the administration of the Agreement and all matters pertaining thereto; and
WHEREAS, the City Council deems it in the public interest to enter into the Agreement in support
of much needed services for Denton residents; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations in the preamble of this ordinance are incorporated
herein by reference as true and as if fully set forth in the body of this ordinance.
SECTION 2. The City Manager or their designee is hereby authorized to execute the Agreement
with Habitat for Humanity of Denton County, Inc. to provide for a Minor Repair Program for low- and
moderate-income households of seniors, persons with disabilities or families with children
SECTION 3. The City Manager or their designee is hereby authorized to expend funds in an
amount not to exceed $49,946.00 of CDBG funds in the manner specified in the Agreement, and to take
any other actions that may be necessary or convenient, in the reasonable opinion of either the City
Manager or the City Attorney, to carry out the City’s rights and obligations under the Agreement.
SECTION 4. This ordinance shall become effective immediately upon its passage and approval.
The motion to approve this ordinance was made by Brian Beck and seconded by Paul Meltzer.
The ordinance was passed and approved by the following vote [7- 0]:
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Paul Meltzer, District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
X
X
X
X
X
X
X
PASSED AND APPROVED this the 15th day of October, 2024.
GERARD HUDSPETH, MAYOR
ATTEST:
LAUREN THODEN, CITY SECRETARY
:;TF£i:R{;AIND IIli ;Tl:JkEY
::-'-- I{T.
Page 2
Page 3
2024-2025 COMMUNITY DEVLOPMENT BLOCK GRANT SERVICE AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND
HABITAT FOR HUMANITY OF DENTON COUNTY, INC.
This 2024-2025 Grant Service Agreement (“Agreement”) is made and entered into by and between the
City of Denton, a Texas municipal corporation, acting by and through its City Manager, hereinafter
referred to as “CITY,” and Habitat For Humanity Of Denton County, Inc., a Texas nonprofit corporation
doing business at 1805 Cornell Ln, Denton, TX 76201, hereinafter referred to as "SUBRECIPIENT."
WHEREAS, CITY has received certain funds from the U.S. Department of Housing and Urban
Development (“HUD”) under Title I of the Housing and Community Development Act of 1974, as
amended (the “ACT”); CDBG Program, CFDA Number 14-218; and
WHEREAS, CITY's Community Services Advisory Committee (“CSAC”) has reviewed the
SUBRECIPIENT’s proposal for services and has determined that SUBRECIPIENT performs an
important service for the residents of the City of Denton without regard to race, religion, color, age, or
national origin, and the CSAC recommends SUBRECIPIENT’s proposal for services; and
WHEREAS, CITY has determined that the SUBRECIPIENT’s proposal for services can provide needed
services to the residents of the City of Denton in accordance with the 2023-2027 City of Denton
Consolidated Plan and will benefit low- and moderate-income persons in the City of Denton, and desires
to enter into an agreement for such services; and
WHEREAS, CITY has adopted a budget and included therein an authorized budget for the expenditure of
funds in accordance with its 2023-2027 City of Denton Consolidated Plan and 2024 Action Plan;
WHEREAS, CITY has designated the Community Development Division as the division responsible for
the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, CITY’s City Council has approved the expenditure of up to $49,946.00 in CDBG funds
consistent with the terms of this Agreement;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the mutual
obligations and to the performance and accomplishment of the conditions hereinafter described.
1. TERM
This Agreement shall commence on or as of October 15, 2024, and shall terminate on September 30,
2025, unless sooner terminated in accordance with Section 25 “Termination.” The City shall have the
right, but not the obligation, to extend the term of this agreement for one (1) additional one-year period.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 4
2. RESPONSIBILITIES
SUBRECIPIENT hereby accepts the responsibility for the performance of all services and activities
described in the Scope of Services attached hereto as Exhibit A, and incorporated herein by reference, in a
satisfactory and efficient manner as determined by CITY, in accordance with the terms herein. CITY will
consider SUBRECIPIENT’s executive officer to be SUBRECIPIENT’s representative responsible for the
management of all contractual matters pertaining hereto, unless written notification to the contrary is
received from SUBRECIPIENT and approved by CITY.
The CITY’s Director of Community Services will be CITY’s representative responsible for the
administration of this Agreement. Beneficiaries of the activities to be provided hereunder must reside in
the City of Denton and SUBRECIPIENT certifies that the activities carried out with these funds shall
meet the Community Development Block Grant (“CDBG”) program’s National Objective of benefit to
low and moderate-income persons. SUBRECIPIENT shall provide services to persons whose income is
equal to or lower than 80% of the median income of the Dallas standard metropolitan statistical area. To
accomplish this, the SUBRECIPIENT shall use the current applicable income limits published by HUD
for lower income housing assistance under Section 8 of the United States Housing Act of 1937. Income
eligibility shall be determined by the sum of the gross income of all individuals residing in the household.
Services must be provided directly to or on behalf of specific identified eligible clients. Eligibility
documentation must be included in each client’s file and updated annually, or services must be provided
to a clientele that is within a “presumed benefit” category as specified in 24 CFR 570.208.
3. REPRESENTATIONS
A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to any proper,
appropriate, and official motion, resolution, or action passed or taken, to enter into this Agreement.
B. The person or persons signing and executing this Agreement on behalf of SUBRECIPIENT do hereby
warrant and guarantee that he, she, or they have been fully authorized by SUBRECIPIENT to execute
this Agreement on behalf of SUBRECIPIENT and to validly and legally bind SUBRECIPIENT to all
terms, performances, and provisions herein set forth.
C. CITY shall have the right, at its option, to either temporarily suspend or permanently terminate this
Agreement if there is a dispute as to the legal authority of either SUBRECIPIENT or the person
signing the Agreement to enter into this Agreement. SUBRECIPIENT is liable to CITY for any
money it has received from CITY for performance of the provisions of this Agreement if CITY has
suspended or terminated this Agreement for the reasons enumerated in this Section.
D. SUBRECIPIENT agrees that the funds and resources provided under the terms of this Agreement will
in no way be substituted for funds and resources from other sources, nor in any way serve to reduce
the resources, services, or other benefits which would have been available to, or provided through,
SUBRECIPIENT had this Agreement not been executed.
4. OBLIGATIONS
CITY agrees to the following terms and conditions:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 5
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred pursuant to and in
accordance with the Project Budget attached hereto as Exhibit B and the Scope of Services herein
attached as Exhibit A and incorporated herein by reference. Notwithstanding any other provision of
the Agreement, the total of all payments and other obligations made or incurred by CITY hereunder
shall not exceed the sum of Forty-Five Thousand Nine Hundred and Forty-Six Dollars ($49,946.00).
B. Measure of Liability. In consideration of full and satisfactory services and activities hereunder by
SUBRECIPIENT and receipt of a requisition for payment with appropriate documentation of
expenditures, CITY shall make payments to SUBRECIPIENT based on the Budget in Exhibit B,
subject to the limitations and provisions set forth in this Section and Section 7 of this Agreement.
Payments may be contingent upon certification of the SUBRECIPIENT’s financial management
system in accordance with the standards specified in 2 CFR Part 200 Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards.
(1) The parties expressly understand and agree that CITY’s obligations under this Section are
contingent upon CITY’s receipt of adequate CDBG funds to meet CITY’s liabilities under this
Agreement. If adequate funds are not available to make payments under this Agreement, CITY
shall notify SUBRECIPIENT in writing within a reasonable time after such fact has been
determined. CITY may, at its option, either reduce the amount of its liability, or terminate the
Agreement. If funds eligible for use for purposes of this Agreement are reduced, CITY shall
not be liable for further payments due to SUBRECIPIENT under this Agreement.
(2) It is expressly understood that this Agreement in no way obligates the General Fund or any
other monies or credits of the City of Denton.
(3) CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed, or is subject to payment or reimbursement, from any other
source;
(b) was incurred prior to the beginning date or after the ending date specified in Section 1;
(c) is not in strict accordance with the terms of this Agreement, including all exhibits
attached hereto;
(d) has not been billed to CITY within 90 calendar days following billing to
SUBRECIPIENT, or termination of the Agreement, whichever date is earlier; or
(e) is not an allowable cost as defined by Section 10 of this Agreement or the project
budget.
(4) CITY shall not be liable for any cost or portion thereof which is incurred with respect to any
activity of SUBRECIPIENT requiring prior written authorization from CITY, or after CITY
has requested that SUBRECIPIENT furnish data concerning such action prior to proceeding
further, unless and until CITY advises SUBRECIPIENT to proceed.
(5) CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or services.
(6) Funding not expended within the term of the Agreement will revert to the City of Denton
CDBG budget for use on alternative projects.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 6
C. SUBRECIPIENT’S Obligations. In consideration of the receipt of funds from the CITY, the
SUBRECIPIENT agrees to the following terms and conditions:
(1) Forty-Nine Thousand Nine Hundred and Forty-Six Dollars ($49,946.00) may be paid to
SUBRECIPIENT by CITY under the terms of this Agreement on a reimbursement basis.
Subrecipient shall be eligible for reimbursement only for expenditures made in accordance
with the Project Budget set forth in Exhibit B to complete those expenses listed in the Scope of
Services in Exhibit A. SUBRECIPIENT shall not utilize these funds for any other purpose.
(2) SUBRECIPIENT will establish, operate, and maintain an account system for these funds that
will allow for a tracing of funds and a review of the financial status of the project. The system
will be based on generally accepted accounting principles as recognized by the American
Institute of Certified Public Accountants.
(3) SUBRECIPIENT will permit authorized officials of the City to review its books at any time.
(4) SUBRECIPIENT will reduce to writing all of its rules, regulations, and policies and file a copy
with CITY's Community Development Office along with any amendments, additions, or
revisions upon request.
(5) SUBRECIPIENT will not enter into any contracts that would encumber CITY funds for a
period that would extend beyond the term of this Agreement.
(6) SUBRECIPIENT will promptly pay all bills when submitted unless there is a discrepancy in a
bill; any errors or discrepancies in bills shall be promptly reported to CITY’s Community
Development Division for further direction.
(7) SUBRECIPIENT will appoint a representative who will be available to meet with CITY
officials when requested.
(8) SUBRECIPIENT will indemnify and hold harmless CITY, its officers, and employees, from
any and all claims and suits arising out of the activities of SUBRECIPIENT, its employees,
and/or contractors.
(9) SUBRECIPIENT will submit to CITY copies of year-end audited financial statements.
5. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS
A. SUBRECIPIENT understands that funds provided to it pursuant to this Agreement are funds which
have been made available to CITY by the Federal Government (U.S. Department of Housing and
Urban Development) under the Housing and Community Development Act of 1974, as amended, in
accordance with an approved Grant Application and specific assurances. Accordingly,
SUBRECIPIENT assures and certifies that it will comply with the requirements of the Housing and
Community Development Act of 1974 (P.L. 93-383) as amended and with regulations promulgated
thereunder and codified at 24 CFR 570. The foregoing is in no way meant to constitute a complete
compilation of all duties imposed upon SUBRECIPIENT by law or administrative ruling or to narrow
the standards which SUBRECIPIENT must follow.
B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of Texas, and
ordinances of the City of Denton.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 7
C. SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements of 2 CFR
Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards.
D. SUBRECIPIENT further agrees and certifies that if the regulations and issuances promulgated
pursuant to the Act are amended or revised, it shall comply with them, or notify CITY, as provided in
Section 23 of this Agreement.
E. SUBRECIPIENT is required to comply with the applicable uniform administrative requirements as
described in 24 CFR 570.502, 570.505, and 24 CFR 570 subpart K with the exceptions noted below:
(1) SUBRECIPIENT does not assume CITY’S environmental responsibilities described at CFR
570.604; and
(2) SUBRECIPIENT does not assume the CITY’s responsibility for initiating the review process
under the provisions of 24 CFR Part 52.
F. SUBRECIPIENT shall give the CITY, HUD, the Comptroller General of the United States, the
Auditor of the State of Texas, and any authorized representative, access to and the right to reproduce
all records belonging to or in use by SUBRECIPIENT pertaining to this Agreement. Such access shall
continue as long as SUBRECIPIENT retains the records. SUBRECIPIENT shall maintain such
records in an accessible location for three (3) years after the end of the term or, for records that relate
to real property that is acquired or improved in whole or in part using funds provided pursuant to this
agreement, for five (5) years after the end of the term.
G. SUBRECIPIENT agrees to abide by the conditions of this Agreement and all other applicable Federal,
state, and local laws and regulations such as the requirements of the Secretary of Labor in accordance
with the Davis-Bacon Act as amended, the provisions of the Contract Work Hours Safety Standards
Act, the Copeland “Anti-Kickback Act” (40 U.S.C. 276a-276a-5; 40 USC 327 and 40 USC 276c)
pertaining to the performance of this Agreement.
H. SUBRECIPIENT will work with CITY to obtain and maintain documentation of compliance. Upon
written request by the CITY, SUBRECIPIENT will obtain the services of consultant to monitor the
contractor’s compliance with these requirements.
I. SUBRECIPIENT agrees to comply 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
Agreement and agrees that these provisions shall also be binding on any of the SUBRECIPIENT’S
subcontractors. The SUBRECIPIENT certifies that no contractual or other disability exists which
would prevent compliance with these requirements. SUBRECIPIENT further agrees to include a
statement in all subcontracts requiring compliance with Section 3 and requiring subcontractors, to the
greatest extent feasible, to provide opportunities for training and employment to low and moderate-
income individuals that are residents of the project area. Upon written request of the CITY,
SUBRECIPIENT will obtain the services of a consultant to monitor the general contractor’s
compliance with the Section 3 requirements.
J. SUBRECIPIENT shall not use funding under this Agreement to influence the outcome of elections or the
passage or defeat of any legislative measures. SUBRECIPIENT understands that funds provided to it
pursuant to this Agreement are funds which have been made available to CITY by the Federal
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 8
Government (U.S. Department of Housing and Urban Development) under the Housing and Community
Development Act of 1974, as amended, in accordance with an approved Grant Application and specific
assurances. Accordingly, SUBRECIPIENT assures and certifies that it will comply with the
requirements of the Housing and Community Development Act of 1974 (P.L. 93-383) as amended and
with regulations promulgated thereunder and codified at 24 CFR 570. The foregoing is in no way meant
to constitute a complete compilation of all duties imposed upon SUBRECIPIENT by law or
administrative ruling, or to narrow the standards which SUBRECIPIENT must follow.
K. SUBRECIPIENT will comply with the Federal procurement standards at 2 CFR 200 Subpart D – Post
Federal Award Requirements.
L. SUBRECIPIENT Agrees to comply with (a) the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24
and 24 CFR 570.606(b): (b) the requirements of 24 CFR 570.606(c) governing the Residential Anti-
displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and 9(c) the
requirements in 24 CFR 570.606(d) governing optional relocation policies. SUBRECIPIENT shall
provide relocation assistance to displaced persons as defined by 24 CFR 570.606(b)(2) that are displaced
as a direct result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted project.
M. Any real property that is acquired or improved in whole or in part using funds provided pursuant to this
agreement shall be used for the benefit of low- and moderate-income persons for a period of at least five
years following the expiration of the term of this agreement. To secure this use, CITY may place a lien or
restrictive covenants on such property. SUBRECIPIENT shall duly execute and record any necessary
documentation to give effect to any such lien or restrictive covenants.
6. PERFORMANCE BY SUBRECIPIENT
SUBRECIPIENT will provide, oversee, administer, and carry out activities and services set out in Exhibit
A, utilizing the funds in accordance with the budget described in Exhibit B. Both parties agree and
acknowledge that the amount of funds provided hereunder is necessary and sufficient payment for full and
satisfactory performance of the program in accordance with all terms, provisions, and requirements of this
Agreement.
No modifications or alterations may be made to the Scope of Services or Budget without the prior written
approval of the CITY’s Director of Community Services.
7. PAYMENTS
A. Payments to SUBRECIPIENT. The CITY shall pay to SUBRECIPIENT a maximum amount of
money not to exceed Forty-Five Thousand Nine Hundred and Forty-Six Dollars ($49,946.00) for
activities carried out under this Agreement. The CITY will pay these funds on a reimbursement basis
to SUBRECIPIENT within twenty days after CITY has received supporting documentation of eligible
expenditures. Expenses incurred on or after October 15, 2024 may be eligible for reimbursement.
Documentation of expenditures must be submitted to the Community Development Division by dates
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 9
required by Community Development. SUBRECIPIENT’s failure to provide information on a timely
basis may jeopardize present or future funding.
B. Funds are to be used for the sole purpose of carrying out the activities described in the Scope of
Services in Exhibit A and based on the Budget in Exhibit B.
C. If, in CITY’s sole judgment, SUBRECIPIENT’s reimbursement request for any period does not
provide sufficient documentation of allowable expenditures or if CITY requests inspection or
verification of claimed expenditures after receipt of a reimbursement request, CITY may withhold
reimbursement for those expenditures for an amount of time deemed reasonable by CITY pending
such inspection, verification, or receipt of documentation.
D. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of CITY’s request,
any sum of money which has been paid by CITY and which CITY at any time thereafter determines:
(1) has resulted in overpayment to SUBRECIPIENT; or
(2) has not been spent strictly in accordance with the terms of this Agreement; or
(3) is not supported by adequate documentation to fully justify the expenditure.
E. Disallowed Costs. Upon termination of this Agreement, should any expense or charge for which
payment has been made be subsequently disallowed or disapproved as a result of any auditing or
monitoring by CITY, the U.S. Department of Housing and Urban Development, or any other Federal
agency, SUBRECIPIENT will refund such amount to CITY within ten working days of a written
notice to SUBRECIPIENT, which specifies the amount disallowed. Refunds of disallowed costs may
not be made from these or any funds received from or through CITY
F. Reversion of Assets.
(1) SUBRECIPIENT, upon expiration of this Agreement, shall transfer to the CITY any funds on
hand at the time of expiration and any accounts receivable attributable to the use of funds.
(2) The reversion of these financial assets shall be in addition to any other remedy available to
CITY either at law or in equity for breach of this Agreement.
G. Obligation of Funds.
(1) In the event that actual expenditure rates deviate from SUBRECIPIENT’s provision of a
corresponding level of performance, as specified in Exhibit A, CITY hereby reserves the right
to reappropriate or recapture any such under expended funds.
(2) If CITY finds that SUBRECIPIENT is unwilling and/or unable to comply with any of the
terms of this Agreement, CITY may require a refund of any and all money expended pursuant
to this Agreement by SUBRECIPIENT, as well as any remaining unexpended funds which
shall be refunded to CITY within ten working days of a written notice to SUBRECIPIENT to
revert these financial assets.
H. Contract Close Out. SUBRECIPIENT shall submit a final expenditure report, for the time period
covered by the last invoice requesting reimbursement of funds under this Agreement, within 15
working days following the close of the Agreement period.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 10
8. ALLOWABLE COSTS
A. Costs must comply with eligible CDBG Program Activities pursuant to guidance published by HUD
and CDBG regulations located at 24 CFR Part 570.
B. Costs shall be considered allowable only if incurred directly and specifically in the performance of
and in compliance with this Agreement and in conformance with the standards and provisions of
Exhibits A and B.
C. Approval of SUBRECIPIENT’s Budget, Exhibit B, does not constitute prior written approval, even
though certain items may appear herein. CITY’s prior written authorization is required in order for the
following to be considered allowable costs:
(1) Encumbrances or expenditures during any one-month period which exceed one-fourth (1/4) of
the total budget for any particular line-item as specified in Exhibit B.
(2) CITY shall not be obligated to any third parties, including any contractors or subcontractors of
SUBRECIPIENT, and CITY funds shall not be used to pay for any contract service extending
beyond the expiration of this Agreement.
(3) Any alternations, deletions, or additions to the Project Budget incorporated in Exhibit B.
(4) Any fees or payments for consulting services.
(5) Any fees or payments for consultant services.
D. Written requests for prior approval are SUBRECIPIENT’s responsibility and shall be made within
sufficient time to permit a thorough review by CITY. SUBRECIPIENT must obtain written approval
by CITY prior to the commencement of procedures to solicit or purchase services, equipment, or real
or personal property. Any procurement or purchase which may be approved under the terms of this
Agreement must be conducted in its entirety in accordance with the provisions of this Agreement.
9. PROGRAM INCOME
A. For purposes of this Agreement, Program Income means earnings of SUBRECIPIENT realized from
activities resulting from this Agreement or from SUBRECIPIENT’s management of funding provided
or received hereunder. Such earnings include, but are not limited to, income from interest, usage or
rental or lease fees, income produced from contract-supported services of individuals or employees, or
from the use or sale of equipment or facilities of SUBRECIPIENT provided as a result of this
Agreement, and payments from clients or third parties for services rendered by SUBRECIPIENT
under this Agreement.
B. SUBRECIPIENT shall maintain records of the receipt and disposition of Program Income in the same
manner as required for other contract funds and reported to CITY in the format prescribed by CITY.
CITY and SUBRECIPIENT agree that any fees collected for services performed by SUBRECIPIENT
shall be used for payment of costs associated with service provision. Revenue remaining after
payment of all program expenses for service provision shall be considered Program Income and shall
be subject to all the requirements of this Agreement and the regulations found at CFR, Section
570.504.
C. SUBRECIPIENT shall include this Section in its entirety in all of its subcontracts which involve other
income-producing services or activities.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 11
D. It is SUBRECIPIENT’s responsibility to obtain from CITY a prior determination as to whether or not
income arising directly or indirectly from this Agreement, or the performance thereof, constitutes
Program Income. SUBRECIPIENT is responsible to CITY for the repayment of any and all amounts
determined by CITY to be Program Income, unless otherwise approved in writing by CITY.
10. REPORTS AND INFORMATION
At such times and in such form as CITY may require, SUBRECIPIENT shall furnish such statements,
records, data, and information as CITY may request and deem pertinent to matters covered by this
Agreement. SUBRECIPIENT shall submit beneficiary and financial reports to CITY no less than once
every three months. The beneficiary report shall detail client information, including race, ethnicity,
income, female head of household, and other statistics required by CITY. The financial report shall
include information and data relative to all programmatic and financial reporting as of the beginning date
specified in Section 1 of this Agreement. Unless the CITY has granted a written exemption,
SUBRECIPIENT shall submit an audit conducted by independent examiners in accordance with
Generally Accepted Accounting Principles. If the SUBRECIPIENT receives and/or expends more than
$750,000 in federal funding, the audit must be conducted in accordance with OMB audit requirements in
2 CFR Part 200, as applicable, within thirty days after receipt of such audit.
11. MONITORING AND EVALUATION
SUBRECIPIENT agrees to participate in a monitoring and evaluation system whereby the services can be
continuously monitored. CITY shall perform monitoring of the SUBRECIPIENT’s performances under
this Agreement.
A. SUBRECIPIENT agrees that CITY may carry out monitoring and evaluation activities to ensure
adherence by SUBRECIPIENT to the provisions of this Agreement which are attached hereto.
B. SUBRECIPIENT agrees to cooperate fully with CITY and to provide data determined by CITY to be
necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities.
C. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay CITY in such
monitoring and to designate one of its staff to coordinate the monitoring process as requested by
CITY staff.
D. To comply with this section, SUBRECIPIENT agrees to maintain records that will provide accurate,
current, separate, and complete disclosure of the status of funds received and the services performed
under this Agreement. SUBRECIPIENT's record system shall contain sufficient documentation to
provide in detail full support and justification for each expenditure. SUBRECIPIENT agrees to retain
all books, records, documents, reports, and written accounting procedures pertaining to the services
provided and expenditure of funds under this Agreement for the period of time and under the
conditions specified by the CITY. Nothing in the above subsections shall be construed to relieve
SUBRECIPIENT of responsibility for retaining accurate and current records, which clearly reflect the
level and benefit of services, provided under this Agreement.
E. After each official monitoring on-site visit, CITY shall provide SUBRECIPIENT with a written report
of monitoring findings, documenting findings and concerns that will require a written response to the
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 12
CITY. An acceptable response must be received by the City within 60 days from the
SUBRECIPIENT’s receipt of the monitoring report or audit review letter. Future contract payments
can be withheld for the SUBRECIPIENT’s failure to submit a response within 60 days.
F. SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by any of the
SUBRECIPIENT’s funding or regulatory bodies to CITY within ten working days of receipt by
SUBRECIPIENT.
G. SUBRECIPIENT will monitor all subcontracted services on a regular basis to assure contract
compliance. Results of monitoring efforts shall be summarized in written reports and supported with
documented evidence of follow-up actions taken to correct areas of noncompliance.
H. SUBRECIPIENT will refer to Exhibit E for the Monitoring Checklist.
12. MAINTENANCE OF RECORDS
A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate, and
complete disclosure of the status of the funds received under this Agreement, in compliance with the
provisions of Exhibit A and Exhibit B, and attached hereto, with any other applicable Federal and
State regulations establishing standards for financial management, SUBRECIPIENT’s expenditures of
funds made under this Agreement will conform to (2 CFR §200) Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the regulations at 24
CFR Part 570 as applicable including, Title 24 CFR Sections 570.502 (b), 570.504, and 570.506 as
they pertain to costs incurred, audits, program income, administration, and other activities and
functions. SUBRECIPIENT’s record system shall contain sufficient documentation to provide in
detail full support and justification for each expenditure. Nothing in this Section shall be construed to
relieve SUBRECIPIENT of fiscal accountability and liability under any other provision of this
Agreement or any applicable law. SUBRECIPIENT shall include the substance of this provision in all
subcontracts.
B. SUBRECIPIENT agrees to retain all books, records, documents, reports, and written accounting
procedures pertaining to the operation of programs and expenditures of funds under this Agreement
for five years after the termination of all activities funded under this agreement.
C. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of responsibility for
retaining accurate and current records, which clearly reflect the level and benefit of services provided
under this Agreement.
D. At any reasonable time and as often as CITY may deem necessary, the SUBRECIPIENT shall make
available to CITY, HUD, or any of their authorized representatives, all of its records and shall permit
CITY, HUD, or any of their authorized representatives to audit, examine, make excerpts and copies of
such records, and to conduct audits of all contracts, invoices, materials, payrolls, records of personnel,
conditions of employment, and all other data requested by said representatives.
13. DIRECTORS’ MEETINGS
During the term of this Agreement, SUBRECIPIENT shall cause to be delivered to CITY copies of all
notices of meetings of its Board of Directors, setting forth the time and place thereof. Such notice shall be
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 13
delivered to CITY in a timely manner to give adequate notice and shall include an agenda and a brief
description of the matters to be discussed. SUBRECIPIENT understands and agrees that CITY
representatives shall be afforded access to all of the Board of Directors’ meetings. Minutes of all meetings
of SUBRECIPIENT’s governing body shall be available to CITY within ten days after Board approval.
14. WARRANTIES
SUBRECIPIENT represents and warrants that:
A. All information, reports, and data heretofore or hereafter requested by CITY and furnished to CITY,
are complete and accurate as of the date shown on the information, data, or report, and, since that date,
have not undergone any significant change without written notice to CITY.
B. Any supporting financial statements heretofore requested by CITY and furnished to CITY, are
complete, accurate, and fairly reflect the financial condition of SUBRECIPIENT on the date shown on
said report, and the results of the operation for the period covered by the report, and that since said
date, there has been no material change, adverse or otherwise, in the financial condition of
SUBRECIPIENT.
C. No litigation or legal proceedings are presently pending or threatened against the SUBRECIPIENT.
D. None of the provisions herein contravene or are in conflict with the authority under which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or agreement of
SUBRECIPIENT.
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments hereunder and has
taken all necessary action to authorize such acceptance under the terms and conditions of this
Agreement.
F. None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any character,
except for current taxes not delinquent, except as shown in the financial statements furnished by
SUBRECIPIENT to CITY.
G. Each of these representations and warranties shall be continuing and shall be deemed to have been
repeated by the submission of each request for payment.
H. SUBRECIPIENT agrees to execute a lien that will be placed on the property improved with CDBG
funds. The lien will name CITY as the primary beneficiary for a period not to exceed ten years.
15. COVENANTS
A. During the period of time that payment may be made hereunder and so long as any payments remain
unliquidated, SUBRECIPIENT shall not, without the prior written consent of the Community
Development Manager or her authorized representative:
(1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the assets of
SUBRECIPIENT now owned or hereafter acquired by it, or permit any pre-existing
mortgages, liens, or other encumbrances to remain on, or attached to, any assets of
SUBRECIPIENT which are allocated to the performance of this Agreement and with respect
to which CITY has ownership hereunder.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 14
(2) Sell, assign, pledge, transfer, or otherwise dispose of accounts receivables, notes, or claims for
money due or to become due.
(3) Sell, convey, or lease all or a substantial part of its assets.
(4) Make any advance or loan to, or incur any liability for any other firm, person, entity, or
corporation as guarantor, surety, or accommodation endorser.
(5) Sell, donate, loan, or transfer any equipment or item of personal property purchased with funds
paid to SUBRECIPIENT by CITY, unless CITY authorizes such transfer.
(6) Enter into any subcontracts with any agency or individual in the performance of this
Agreement without the written consent of CITY prior to the execution of such an agreement or
subcontract.
B. SUBRECIPIENT agrees, upon written request by CITY, to require its employees to attend training
sessions sponsored by the Community Development Division.
16. INSURANCE
A. SUBRECIPIENT shall observe sound business practices with respect to providing such bonding and
insurance as would provide adequate coverage for services offered under this Agreement.
B. The premises on and in which the activities described in Exhibit A are conducted, and the employees
conducting these activities, shall be covered by premise liability insurance, commonly referred to as
“Owner/Tenant” coverage, with CITY named as an additional insured. Upon request of
SUBRECIPIENT, CITY may, at its sole discretion, approve alternate insurance coverage
arrangements.
C. SUBRECIPIENT will comply with applicable workers’ compensation statutes and will obtain
employers’ liability coverage where available and other appropriate liability coverage for program
participants, if applicable.
D. SUBRECIPIENT will maintain adequate and continuous liability insurance on all vehicles owned,
leased, or operated by SUBRECIPIENT. All employees of SUBRECIPIENT who are required to
drive a vehicle in the normal scope and course of their employment must possess a valid Texas
driver’s license and automobile liability insurance. Evidence of the employee’s current possession of a
valid license and insurance must be maintained on a current basis in SUBRECIPIENT’s files.
E. Actual losses not covered by insurance as required by this Section are not allowable costs under this
Agreement and remain the sole responsibility of SUBRECIPIENT.
F. The policy or policies of insurance shall contain a clause which requires that CITY and
SUBRECIPIENT be notified in writing of any cancellation or change in the policy at least 30 days
prior to such change or cancellation.
17. CIVIL RIGHTS / EQUAL OPPORTUNITY
A. SUBRECIPIENT shall comply with all applicable equal employment opportunity and affirmative
action laws or regulations. The SUBRECIPIENT shall not discriminate against any employee or
applicant for employment because of race, color, creed, religion, national origin, gender, age, or
disability. The SUBRECIPIENT will take affirmative action to ensure that all employment practices
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 15
are free from such discrimination. Such employment practices include but are not limited to the
following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff,
termination, rates of pay or other forms of compensation, and selection for training, including
apprenticeship.
B. SUBRECIPIENT shall comply with all applicable equal employment opportunity and affirmative
action laws or regulations. 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 104(b),
Section 109 of Title 1 of the Housing and Community Development Act of 1974 as amended, 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 Executive Order 11246 as amended by
Executive Orders 11375 and 12086.
C. SUBRECIPIENT will furnish all information and reports requested by the CITY, and will permit
access to its books, records, and accounts for purposes of investigation to ascertain compliance with
local, state, and Federal rules and regulations.
D. In the event of SUBRECIPIENT’s non-compliance with the non-discrimination requirements, CITY
may cancel or terminate the Agreement in whole or in part, and SUBRECIPIENT may be barred from
further contracts with CITY.
E. [SUBRECIPIENT will use its best efforts to afford small businesses, minority business enterprises
and women’s business enterprises the maximum practicable opportunity to participate in the
performance of this contract. As used in this contract, the term “small business” means a business that
meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and
“minority and women’s business enterprise” means a business at least fifty-one percent (51%) owned
and controlled by minority group members or women. For the purpose of these definitions, “minority
group members” are Afro-Americans; Spanish-speaking, Spanish surnamed, or Spanish-heritage
Americans; Asian Americans; and American Indians. SUBRECIPIENT may rely on written
representations by businesses regarding their status as minority and female business enterprises in lieu
of an independent investigation.]
18. PERSONNEL POLICIES
Personnel policies shall be established by SUBRECIPIENT and shall be available for examination. Such
personnel policies shall:
A. Include policies with respect to employment, salary and wage rates, working hours and holidays,
fringe benefits, vacation and sick leave privileges, and travel; and
B. Be in writing; and
C. Be approved by the governing body of SUBRECIPIENT.
19. CONFLICT OF INTEREST
A. SUBRECIPIENT covenants that neither it nor any member of its governing body presently has any
interest, direct or indirect, which would conflict in any manner or degree with the performance of
services required to be performed under this Agreement. SUBRECIPIENT further covenants that in
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 16
the performance of this Agreement, no person having such interest shall be employed or appointed as
a member of its governing body.
B. SUBRECIPIENT further covenants that no member of its governing body or its staff, subcontractors,
or employees shall possess any interest in or use his/her position for a purpose that is or gives the
appearance of being motivated by desire for private gain for himself/herself, or others, particularly
those with which he/she has family, business, or other ties.
C. No officer, member, or employee of CITY and no member of its governing body who exercises any
function or responsibilities in the review or approval of the undertaking or carrying out of this
Agreement shall participate in any decision relating to the Agreement which affects his or her
personal interest or the interest in any corporation, partnership, or association in which he or she has a
direct or indirect interest.
20. NEPOTISM
SUBRECIPIENT shall not employ in any paid capacity any person who is a member of the immediate
family of any person who is currently employed by SUBRECIPIENT or is a member of
SUBRECIPIENT’s governing board. The term “member of immediate family” includes: wife, husband,
son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece, stepparent, stepchild,
half-brother, and half-sister.
21. POLITICAL OR SECTARIAN ACTIVITY
A. Neither the funds advanced pursuant to this Agreement, nor any personnel which may be employed by
the SUBRECIPIENT with funds advanced pursuant to this Agreement shall be in any way or to any
extent engaged in any conduct or political activity in contravention of Chapter 15 of Title 5 of the
United States Code.
B. 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, or nepotism activities.
C. The SUBRECIPIENT agrees that none of the funds or services provided directly or indirectly under
this Agreement shall be used for any partisan political activity or to further the election or defeat of
any candidate for public office, or for publicity, lobbying, and/or propaganda purposes designed to
support or defeat pending legislation. Employees of the SUBRECIPIENT connected with any activity
that is funded in whole or in part by funds provided to SUBRECIPIENT under this Agreement may
not under the term of this Agreement:
(1) Use their official position or influence to affect the outcome of an election or nomination;
(2) Solicit contributions for political purposes; or
(3) Take an active part in political management or in political campaigns.
D. SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein as Exhibit
C and if necessary, the Disclosure of Lobbying Activities provided by the CITY.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 17
22. PUBLICITY
A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities conducted by
SUBRECIPIENT under this Agreement. In any news release, sign, brochure, or other advertising
medium, disseminating information prepared or distributed by or for SUBRECIPIENT, the
advertising medium shall state that the U.S. Department of Housing and Urban Development’s
Community Development Block Grant Program funding through the City of Denton has contributes to
make the project possible.
B. All published material and written reports submitted under this project must be originally developed
material unless otherwise specifically provided in this Agreement. When material not originally
developed is included in a report, the report shall identify the source in the body of the report or by
footnote. This provision is applicable when the material is in a verbatim or extensive paraphrase
format.
C. All published material submitted under this project shall include the following reference on the front
cover or title page:
This document is prepared in accordance with the City of Denton’s Community Development
Block Grant Program, with funding received from the United States Department of Housing and
Urban Development.
D. All reports, documents, studies, charts, schedules, or other appended documentation to any proposal,
content of basic proposal, or contracts and any responses, inquiries, correspondence and related
material submitted by SUBRECIPIENT shall become the property of CITY upon receipt.
23. CHANGES AND AMENDMENTS
A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment
executed by both parties, except when the terms of this Agreement expressly provide that another
method shall be used.
B. SUBRECIPIENT may not make transfers between or among approved line items within budget
categories set forth in Exhibit B without prior written approval of CITY. SUBRECIPIENT shall
request, in writing, the budget revision in a form prescribed by CITY, and such request for revision
shall not increase the total monetary obligation of CITY under this Agreement. In addition, budget
revisions cannot significantly change the nature, intent, or scope of the program funded under this
Agreement.
C. SUBRECIPIENT will submit revised budget and program information whenever the level of funding
for SUBRECIPIENT or the program(s) described herein is altered according to the total levels
contained in any portion of Exhibit B.
D. It is understood and agreed by the parties hereto that changes in the State, Federal, or local laws or
regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are
to be automatically incorporated into this Agreement without written amendment hereto and shall
become a part of the Agreement on the effective date specified by the law or regulation.
E. CITY may, from time to time during the term of the Agreement, request changes to the Agreement,
which may include an increase or decrease in the amount of SUBRECIPIENT’s compensation. Such
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 18
changes shall be incorporated in a written amendment hereto, as provided in Subsection A of this
Section.
F. Any alterations, deletions, or additions to the program budget incorporated in Exhibit B shall require
the prior written approval of CITY.
G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for work
performed under this Agreement at least 30 calendar days in advance of the change.
H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board composition.
I. It is expressly understood that neither the performance of Exhibit A for any program contracted
hereunder nor the transfer of funds between or among said programs will be permitted.
24. SUSPENSION OF FUNDING
Upon determination by CITY of SUBRECIPIENT’s failure to timely and properly perform each of the
requirements, time conditions, and duties provided herein, CITY, without limiting any rights it may
otherwise have, may, at its discretion, and upon ten working days written notice to SUBRECIPIENT,
withhold further payments to SUBRECIPIENT. Such notice may be given by mail to the Executive
Officer and the Board of Directors of SUBRECIPIENT. The notice shall set forth the default or failure
alleged, and the action required for cure.
The period of such suspension shall be of such duration as is appropriate to accomplish corrective action,
but in no event shall it exceed 30 calendar days. At the end of the suspension period, if CITY determines
the default or deficiency has been satisfied, SUBRECIPIENT may be restored to full compliance status
and paid all eligible funds withheld or impounded during the suspension period. If however, CITY
determines that SUBRECIPIENT has not come into compliance, the provisions of Section 25 may be
effectuated.
25. TERMINATION
A. CITY may terminate this Agreement for cause under any of the following reasons or for other reasons
not specifically enumerated in this paragraph:
(1) SUBRECIPIENT’s failure to attain compliance during any prescribed period of suspension as
provided in Section 24.
(2) SUBRECIPIENT’s failure to materially comply with any of the terms of this Agreement.
(3) SUBRECIPIENT’s violation of covenants, agreements, or guarantees of this Agreement.
(4) Termination or reduction of funding by the CITY or HUD.
(5) Finding by CITY that the SUBRECIPIENT:
(a) is in such unsatisfactory financial condition as to endanger performance under this
Agreement;
(b) has allocated inventory to this Agreement substantially exceeding reasonable
requirements; or
(c) is delinquent in payment of taxes or of costs of performance of this Agreement in the
ordinary course of business.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 19
(6) Appointment of a trustee, receiver, or liquidator for all or substantial part of
SUBRECIPIENT’s property, or institution of bankruptcy, reorganization, rearrangement of,
or liquidation proceedings by or against SUBRECIPIENT.
(7) SUBRECIPIENT’s inability to conform to changes required by Federal, State, and local laws
or regulations as provided in Section 4, and Section 2, of this Agreement.
(8) The commission of an act of bankruptcy.
(9) SUBRECIPIENT’s violation of any law or regulation to which SUBRECIPIENT is bound or
shall be bound under the terms of the Agreement.
B. CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and the effective
date of termination. Simultaneous notice of pending termination may be made to other funding source
specified in Exhibit B.
C. CITY may terminate this Agreement for convenience at any time. If CITY terminates this Agreement
for convenience, SUBRECIPIENT will be paid an amount not to exceed the total of accrued
expenditures as of the effective date of termination. In no event will this compensation exceed an
amount which bears the same ratio to the total compensation as the services actually performed bears
to the total services of SUBRECIPIENT covered by the Agreement, less payments previously made.
D. SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to CITY, if a
termination of outside funding occurs upon which SUBRECIPIENT depends for performance
hereunder. SUBRECIPIENT may opt, within the limitations of this Agreement, to seek an alternative
funding source, with the approval of CITY, provided the termination by the outside funding source
was not occasioned by a breach of contract as defined herein or as defined in a contract between
SUBRECIPIENT and the funding source in question.
E. SUBRECIPIENT may terminate this Agreement upon the dissolution of SUBRECIPIENT’s
organization not occasioned by a breach of this Agreement.
F. Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw, or otherwise terminate
any outstanding orders or subcontracts, which relate to the performance of this Agreement. CITY shall
not be liable to SUBRECIPIENT or SUBRECIPIENT’s creditors for any expenses, encumbrances, or
obligations whatsoever incurred after the termination date listed on the notice to terminate referred to
in this paragraph.
G. Notwithstanding any exercise by CITY of its right of suspension or termination, SUBRECIPIENT
shall not be relieved of liability to CITY for damages sustained by CITY by virtue of any breach of
the Agreement by SUBRECIPIENT, and CITY may withhold any reimbursement to SUBRECIPIENT
until such time as the exact amount of damages due to CITY from SUBRECIPIENT is agreed upon or
otherwise determined.
26. NOTIFICATION OF ACTION BROUGHT
In the event that any claim, demand, suit, or other action is made or brought by any person(s), firm,
corporation, or other entity against SUBRECIPIENT, SUBRECIPIENT shall give written notice thereof
to CITY within five working days after being notified of such claim, demand, suit, or other action or
proceeding. Such notice shall state the date and hour of notification of any such claim, demand, suit, or
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 20
other action; the names and addresses of the person(s), firm, corporation, or other entity making such
claim, or that instituted or threatened to institute any type of action or proceeding; the basis of such
claim, action, or proceeding; and the name of any person(s) against whom such claim is being made or
threatened. Such written notice shall be delivered either personally or by mail in accordance with the
provisions of Section 29.I.
27. INDEMNIFICATION
A. It is expressly understood and agreed by both parties hereto that CITY is contracting with
SUBRECIPIENT as an independent contractor and that as such, SUBRECIPIENT shall save and hold
CITY, its officers, agents, and employees harmless from all liability of any nature or kind, including
costs and expenses for, or on account of, any claims, audit exceptions, demands, suits, or damages of
any character whatsoever resulting in whole or in part from the performance or omission of any
employee, agent, or representative of SUBRECIPIENT.
B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless CITY its
agents, employees, or contractors from any and all claims, suits, causes of action, demands, damages,
losses, attorney fees, expenses, and liability arising out of the use of these contracted funds and
program administration and implementation except to the extent caused by the willful act or omission
of CITY, its agents, employees, or contractors.
28. NON-RELIGIOUS ACTIVITIES
A. As stated in 24 CFR Part 5.109, no organization will be prohibited from participating in activities
supported by CITY funding including programs that make funds available through contracts, grants,
or cooperative agreements. SUBRECIPIENT is prohibited from discriminating against beneficiaries
in providing services or carrying out activities with such assistance based on religion, a religious
belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice,
while also noting that organizations that participate in programs only funded by indirect CITY or
Federal financial assistance need not modify their program or activities to accommodate beneficiaries
who choose to expend the indirect aid on those SUBRECIPIENTS’ programs.
B. Faith based organizations that carry out programs or activities with direct Federal financial assistance
from HUD are required to provide written notice of certain protections to beneficiaries and
prospective beneficiaries. Specifically, such organizations are required to give notice to beneficiaries
that:
(1) The organization may not discriminate against a beneficiary or prospective beneficiary based
on religion, a religious belief, a refusal to hold a religious belief, or a refusal to attend or
participate in a religious practice;
(2) The organization may not require a beneficiary to attend or participate in any explicitly
religious activities that are offered by the organization, and any participation by the
beneficiary in such activities must be purely voluntary; and
(3) The organization must separate, in time or location, any privately funded explicitly religious
activities from activities supported by direct Federal financial assistance; and
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 21
(4) If a beneficiary objects to the religious character of the organization, the organization must
undertake reasonable efforts to identify and refer the beneficiary to an alternative provider to
which the beneficiary has no such objection;
(5) A beneficiary or prospective beneficiary may report an organization's violation of these
protections, including any denials of services or benefits by an organization, by contacting or
filing a written complaint to HUD or the intermediary administering the program, if
applicable.
(6) Faith-based organizations must provide this notice to prospective beneficiaries prior to
enrollment. In the event of an emergency or exigent circumstance that make it impracticable
to provide the written notice in advance, prospective beneficiaries may receive the notice at
the earliest available opportunity. Current beneficiaries must receive the notice at the earliest
available opportunity.
(7) Faith-based organizations that carry out a program or activity with direct Federal financial
assistance from HUD are to promptly undertake reasonable efforts to identify an alternative
provider if a beneficiary or prospective beneficiary objects to the religious character of the
organization, and to refer the beneficiary or prospective beneficiary to an alternative provider
to which the beneficiary or prospective beneficiary has no such objection.
29. ENVIRONMENTAL CONDITIONS
A. SUBRECIPIENT agrees to comply with the following requirements insofar as they apply to the
performance of this Agreement:
(1) Clean Air Act, 42 U.S.C., 7401, et seq.;
(2) Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended,
1318 relating to inspection, monitoring, entry, reports, and information, as well as other
requirements specified in said Section 114 and Section 308, and all regulations and
guidelines issued thereunder;
(3) Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as
amended.
B. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001),
SUBRECIPIENT shall assure that for activities located in an area identified by the Federal Emergency
Management SUBRECIPIENT (FEMA) as having special flood hazards, flood insurance under the
National Flood Insurance Program is obtained and maintained as a condition of financial assistance
for acquisition or construction purposes (including rehabilitation).
C. SUBRECIPIENT agrees that any construction or rehabilitation of residential structures with assistance
provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR
570.608 and 24 CFR Part 35, Subpart B. RECIPIENT shall comply with all notice, abatement, testing,
risk assessment, and treatment requirements in the regulations.
D. SUBRECIPIENT agrees to comply with the Historic Preservation requirements set forth in the
National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 22
in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic
Properties, insofar as they apply to the performance of this Agreement.
30. RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING
REPLACEMENT
SUBRECIPIENT agrees to comply with (a) the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24
and 24 CFR 570.606(b); (b) the requirements of 24 CFR 570.606(c) governing the Residential Anti-
displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and (c) the
requirements in 24 CFR 570.606(d) governing optional relocation policies. SUBRECIPIENT shall
provide relocation assistance to displaced persons as defined by 24 CFR 570.606(b)(2) that are displaced
as a direct result of acquisition, rehabilitation, demolition, or conversion for a CDBG-assisted project.
SUBRECIPIENT also agrees to comply with applicable CITY ordinances, resolutions, and policies
concerning the displacement of persons from their residences.
31. MISCELLANEOUS
A. SUBRECIPIENT shall not transfer, pledge, or otherwise assign this Agreement or any interest therein,
or any claim arising thereunder, to any party or parties, bank, trust company, or other financial
institution without the prior written approval of CITY.
B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining
provisions shall remain in full force and effect and continue to conform to the original intent of both
parties hereto.
C. All reports, documents, studies, charts, schedules, or other appended documentation to any proposal,
content of basic proposal, or contracts and any responses, inquiries, correspondence, and related
material submitted by SUBRECIPIENT shall become the property of CITY upon request.
D. Debarment: SUBRECIPIENT certifies that it is not listed on the System for Award Management
(SAM), which list the debarred, suspended, or otherwise excluded from or ineligible for participation
in federal assistance programs under Executive Order 12549 and 24 CFR Part 24.
E. In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure of CITY to
insist in any one or more instances upon the terms and conditions of this Agreement, constitute or be
construed in any way to be a waiver by CITY of any breach of covenant or default which may then or
subsequently be committed by SUBRECIPIENT. Neither shall such payment, act, or omission in any
manner impair or prejudice any right, power, privilege, or remedy available to CITY to enforce its
rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No
representative or agent of CITY may waive the effect of this provision.
F. This Agreement, together with referenced Exhibits, constitutes the entire agreement between the
parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment
antecedent to this Agreement, whether written or oral, shall have no force or effect whatsoever; nor
shall an agreement, assertion, statement, understanding, or other commitment occurring during the
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 23
term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless
properly executed in writing, and if appropriate, recorded as an amendment of this Agreement.
G. In the event any disagreement or dispute should arise between the parties hereto pertaining to the
interpretation or meaning of any part of this Agreement or its governing rules, codes, laws,
ordinances, or regulations, CITY as the party ultimately responsible to U.S. Department of Housing
and Urban Development (HUD) for matters of compliance, will have the final authority to render or to
secure an interpretation.
H. If SUBRECIPIENT provides services to the homeless it is required to:
(1) Report homeless data to the Homeless Management Information System (HMIS). Homeless
Management Information System (HMIS): HMIS is a countywide data management tool
designed to facilitate data collection in order to improve human service delivery throughout
Denton County. Participation in the Homeless Management Information System (HMIS) is a
requirement per this agreement. Data entered into HMIS will help our community improve
services to individuals experiencing homelessness by providing accurate information on the
extent and nature of homelessness in our community and by accounting for our success in
helping people move out of homelessness. Participation is also critical to help Denton and
Denton County successfully compete for grants for federal funding, such as the U.S.
Department of Housing and Urban Development’s homeless assistance funds.
(2) Participate in the Denton County Homeless Leadership Team meetings and any applicable
workgroup(s). The Denton County Homeless Leadership Team is a collaborative, cross-sector
team that convenes to improve the planning, coordination, oversight, and implementation
required to create systems change for housing/homelessness initiatives in Denton County.
Further, the Agency is encouraged to work in partnership with fellow service providers to
improve efficiency and effectiveness.
I. For purposes of this Agreement, all official communications and notices among the parties shall be
deemed made if sent postage paid to the parties and address set forth below:
TO CITY: TO SUBRECIPIENT:
City Manager Habitat for Humanity of Denton County, Inc.
City of Denton 1805 Cornell Ln
215 E. McKinney Denton, TX 76201
Denton, Texas 76201
w/ a copy to:
Mack Reinwand, City Attorney
City of Denton
215 E. McKinney
Denton, TX 76201
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 24
G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue
of any litigation concerning this Agreement shall be in a court competent jurisdiction sitting in
Denton County, Texas.
IN WITNESS OF WHICH this Agreement has been executed on this the ________ day of
_______________________, 2024.
CITY OF DENTON Habitat for Humanity of Denton County, Inc.
BY: __________________________________
SARA HENSLEY,
CITY MANAGER
BY: __________________________________
ATTEST:
LAUREN THODEN, CITY SECRETARY
BY: __________________________________
ATTEST:
BY: _________________________________
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
October
15
Page 25
APPROVED AS TO LEGAL FORM:
BY: _________________________________
MACK REINWAND,
CITY ATTORNEY
THIS AGREEMENT HAS BEEN
BOTH REVIEWED AND APPROVED
as to financial and operational
obligations and business terms
Signature
Director of Community Services
Title
Community Services
Department
Date Signed:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1D
10/3/2024
Docusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 26
Exhibit A
Scope of Services
Description of Project
City of Denton Community Development Block Grant (CDBG) funds will be for a minor repair program
(“Program”) to assist eligible homeowners with minor repairs of their owner-occupied, single-family
home located in the city of Denton, Texas consistent with applicable CDBG regulations.
SUBRECIPIENT shall assist at least four (4) eligible low-moderate income households of seniors,
persons with disabilities, or families with children with minor repairs of their homes.
SUBRECIPIENT will be responsible for administering PROGRAM in a manner consistent with the
federal requirements governing the provision of Community Development Block Grant funds.
SUBRECIPIENT will provide the following activities eligible under the Community Development Block
Grant Program.
1. The subrecipient shall be responsible for all bidding procedures and sub-contractual arrangements.
All procedures shall be carried out in accordance with all Federal, State and local standards, and
shall be monitored by the County. Upon request, the City will provide technical assistance to the
subrecipient concerning compliance with the terms of this Agreement.
2. The Project shall be completed in compliance with all applicable state and local codes. Upon
completion, this Project shall be operated in compliance with all applicable federal, state and local
laws. SUBRECIPIENT agrees the funding shall be used solely for the purpose of costs as detailed
in Part I.1.A. of this Agreement.
3. SUBRECIPIENT will develop program guidelines and policies and procedures.
4. Income shall be calculated using the HUD Section 8 program definition of annual income. Source
documentation for the household must be submitted to the City showing the household earns less
than 80% of the Area Median Income (AMI) at the time of construction. This affordability
requirement survives the expiration of this agreement. HUD income training will be provided by the
City of Denton.
5. Complete an Environmental Site-Specific Checklist for each project for the City’s approval before
committing funds to ensure that project meets the environmental conditions in the checklist.
6. List of repairs will require a work write up, cost estimate and bidding process based on CDBG
procurement regulations at 24 CFR 570.610 and 24 CFR 85.36.
7. SUBRECIPIENT shall manage construction work, making regular site visits to ascertain that
approved and contracted work is proceeding on schedule and satisfactorily.
Estimated Project Timeline
October 2024 Project Approval: Contract is executed with SUBRECIPIENT and
approved by City Council
October 2024 Program Implementation & training
Oct. 2024 – Sep. 2025 Construction: SUBRECIPIENT manages repairs.
Oct. 2024 – Sep. 2025 Reimbursement: Request reimbursement for project costs.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 27
Oct. 2024 – Sep. 2025 Quarterly reporting: SUBRECIPIENT submits client data to the City
to complete project
Sep. 2025 Complete all open projects and submit final performance report.
Oct. 2024 – Sep. 2025 Monitoring: SUBRECIPIENTs begins reporting
September 2026 Monitoring: SUBRECIPIENT ends reporting
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 28
Exhibit B
Budget
Forty-Five Thousand Nine Hundred and Forty-Six Dollars ($49,946.00) in Community Development
Block Grant (CDBG) funds for a minor repair program (“Program”) to assist eligible homeowners with
minor repairs of their owner-occupied, single-family home located in the city of Denton, Texas consistent
with applicable CDBG regulations. SUBRECIPIENT shall assist at least four (4) eligible low-moderate
income households of seniors, persons with disabilities, or families with children with minor repairs of
their homes. The amount stated above is an estimate. Funding may be reallocated as needed to complete
improvements listed above. As stated in the agreement, any remaining fund balance will be returned to
the City of Denton.
Prior to the start of each repair, SUBRECIPIENT shall provide the Community Development Division
with a cost estimate, environmental checklist, homeowner name and address and any additional funding
sources and commitments (if other funding sources are included in the project).
Allowable Expenditure
Home Repair Costs $49,946.00
Total $49,946.00
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 29
Exhibit C
U.S. Department of Housing and Urban Development (HUD)
Income Limits
Qualifying Income Limits for Federally Assisted Programs
FY 2024 Income Limits Summary
Dallas, TX HUD Metro FMR Area
Median Household Income: $ 110,300 (Household of 4)
Income Limit
Category Low (80%) Very Low (50%) 30% Limits
1 $61,800.00 $38,650.00 $23,200.00
2 $70,600.00 $44,150.00 $26,500.00
3 $79,450.00 $49,650.00 $29,800.00
4 $88,250.00 $55,150.00 $33,100.00
5 $93,350.00 $59,600.00 $35,750.00
6 $102,400.00 $64,000.00 $38,400.00
7 $109,450.00 $68,400.00 $41,050.00
8 $116,500.00 $72,800.00 $43,700.00
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 30
Exhibit D
Certification Regarding Lobbying
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid by or on behalf of the undersigned, to
any person for influencing or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any Federal grant, the making of
any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with a
Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit
Standard Form-ILL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(3) The undersigned shall require that the language of this Certification be included in the award
documents for all subawards at all tiers (including subcontractors, subgrants, and contracts under
grants, loans, and cooperative agreements) and that all SUBRECIPIENTs shall certify and disclose
accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of the certification is a prerequisite for making or entering into this
transaction imposed by Section 1352, Title 31, US Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for
each such failure.
Habitat for Humanity of Denton County, Inc.
Grantee
Signature Title
Date
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1D
Executive Director
10/3/2024
Docusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 31
Exhibit E
Monitoring Checklist
Guide for Review of CDBG-Funded Rehabilitation Program Management
Name of Program Participant:
Staff Consulted:
Name(s) of Reviewer(s): Date:
NOTE: All questions that address requirements contain the citation for the source of the requirement (statute,
regulation, NOFA, or grant agreement). If the requirement is not met, HUD must make a finding of
noncompliance. All other questions (questions that do not contain the citation for the requirement) do not
address requirements, but are included to assist the reviewer in understanding the participant's program
more fully and/or to identify issues that, if not properly addressed, could result in deficient performance.
Negative conclusions to these questions may result in a "concern" being raised, but not a "finding."
Instructions: This Exhibit applies to all CDBG Entitlement program-assisted property rehabilitation. The
Department’s policy on housing rehabilitation emphasizes, as a priority, increasing the efficiency and
effectiveness of local rehabilitation programs. This Exhibit is designed to evaluate a program participant’s
rehabilitation program from a management perspective, reviewing both rehabilitation productivity and the
cost effectiveness of program operations. It is both a qualitative and quantitative analysis. It is divided into
ten sections: Program Design and Management; Budget and Productivity; Rehabilitation Standards; Loan
Financing and Servicing; Contractor Selection and Oversight; Beneficiary and Rehabilitation Data; Lump
Sum Drawdowns; Escrow Accounts; Other Requirements; and Summary of Exhibit 3-11 Reviews. This
Exhibit must be used in conjunction with individual project/activity reviews conducted under Exhibit 3-11 in
order to make supportable determinations about the participant’s rehabilitation program as a whole. Section J
at the end of this Exhibit is to be used to summarize the results of Exhibit 3-11 reviews that are used for this
purpose. The term “program participant” is used interchangeably with “grantee” and “recipient” for
purposes of this Exhibit.
This Exhibit includes citations to regulations that pre-dated HUD’s implementation of 2 CFR Part 200 (e.g.,
2 CFR Part 225 (formerly OMB Circular A-87), 24 CFR Part 85 and 24 CFR Part 84). The regulations for
these citations, referenced herein as “(2013 edition),” may be found at:
https://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR&searchPath=Title+24&oldPat
h=Title+24&isCollapsed=true&selectedYearFrom=2013&ycord=1000. CPD staff conducting monitoring
should use the appropriate citations based on the applicability of 24 CFR Parts 84/85 or 2 CFR Part 200.
For further information, please see the HUD Transition Notice (SD-2015-01), dated December 26, 2015,
which describes the transition to 24 CFR Part 200 located at:
https://portal.hud.gov/hudportal/documents/huddoc?id=15-01sdn.pdf and additional transition guidance
available in a subsequent notice (CPD-16-04), dated April 13, 2016, located at:
http://portal.hud.gov/hudportal/documents/huddoc?id=16-04cpdn.pdf.
Questions:
A. PROGRAM DESIGN AND MANAGEMENT
1.
a. Do the types of buildings and improvements, including the type of
assistance provided (i.e., grants, loans, loan guarantees, interest
supplements) qualify as eligible activities under 24 CFR 570.202(a) and
(b)?
Yes No N/A
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 32
Describe Basis for Conclusion:
b. If the program participant claims rehabilitation activities as benefiting low- and
moderate-income persons or households, as appropriate, what definition of income under
24 CFR 570.3 does it use?
Describe Basis for Conclusion:
2.
a. Has the program participant established written local operating
procedures and policies for the program?
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “2.a” above is “yes,” does a review of the procedures
and policies generally indicate compliance with HUD regulations and
policies?
Yes No N/A
Describe Basis for Conclusion:
c. If the answer to “2.a” above is “yes,” do the procedures cover
beneficiary dispute resolution?
Yes No N/A
Describe Basis for Conclusion:
3.
If the program participant includes in its rehabilitation program rental
housing to be occupied by low- and moderate-income households, has the
participant adopted and made public its standards for determining
“affordable rents?”
[24 CFR 570.208(a)(3)]
Yes No N/A
Describe Basis for Conclusion:
4.
If applicable, does the program participant monitor its third party
subrecipients or entities that carry out rehabilitation on behalf of the
program participant?
[24 CFR 570.501(b)]
Yes No N/A
Describe Basis for Conclusion:
5.
How does the program participant ensure that information about its rehabilitation program is
provided to potential beneficiaries?
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 33
Describe Basis for Conclusion:
6.
Does the program participant provide training to staff on housing
rehabilitation requirements?
Yes No N/A
Describe Basis for Conclusion:
B. BUDGET AND PRODUCTIVITY
7.
For the current program year, does the program participant maintain documentation showing:
a. Total CDBG funds budgeted? $
b. Total amount of CDBG funds obligated Year-To-Date (YTD)? $
c. Total amount of CDBG funds expended YTD? $
d. Total of all funds budgeted for rehabilitation this year? CDBG $:
Public $:
Private $:
TOTAL$:
[24 CFR 570.506(a)]
Describe Basis for Conclusion:
8.
a. What was the total number of units rehabilitated in the prior program year (for all funding
sources)?
Describe Basis for Conclusion:
b. What is the total number of units proposed for rehabilitation this program year (all
funding sources)?
Describe Basis for Conclusion:
C. REHABILITATION STANDARDS
9.
a. What standards are used to determine the extent of rehabilitation necessary (e.g., is there
a standard specification or performance manual)?
Describe Basis for Conclusion:
b. Have local housing codes been adopted in conjunction with the program
participant’s rehabilitation standards?
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 34
c. If the answer to “9.b” above is “yes,” how does the program participant determine that
the work items meet local codes upon completion?
Describe Basis for Conclusion:
10.
a. Describe the process for preparing the work specifications and cost estimates, including
which employees’ positions have the responsibility to prepare the cost estimates and
approve them.
Describe Basis for Conclusion:
b. Is there a written procedure in place for changes in the scope of work
and/or specifications?
Yes No N/A
Describe Basis for Conclusion:
c. 1. Is there a procedure for determining if contract costs are reasonable
and, if so, who or which employee positions have the responsibility for
making the determination and approving the costs?
[2 CFR Part 225, Appendix A, C(1) and (2) (OMB Circular A-87)
(2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
c. 2. Is there a procedure for determining if contract costs are reasonable
and, if so, who or which employee positions have the responsibility for
making the determination and approving the costs?
[2 CFR 200.403(a) and 200.404]
Yes No N/A
Describe Basis for Conclusion:
d. If the answer to “10.c.1” above is “no,” what actions are being taken to
ensure that costs are reasonable?
[2 CFR Part 225, Appendix A, C(2); OMB Circular A-87 (2013
edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
e. If the answer to “10.c.2” above is “no,” what actions are being taken to
ensure that costs are reasonable?
[2 CFR 200.404]
Yes No N/A
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 35
Describe Basis for Conclusion:
D. LOAN FINANCING AND SERVICING
11.
a. Does the program participant have written loan-financing procedures in
place?
Yes No N/A
Describe Basis for Conclusion:
b. If there are written procedures, do they set forth the conditions of
assistance, such as the interest rate charged, the loan term, and the
maximum borrowing amount?
Yes No N/A
Describe Basis for Conclusion:
c. If there are procedures, do they describe a process for handling
delinquencies?
Yes No N/A
Describe Basis for Conclusion:
12.
a. If loans are involved, what is the process for servicing them? (For example, who collects
repayments when due and posts them to account records?)
Describe Basis for Conclusion:
b. If the program provided a loan to an owner, is there a copy of the
promissory note and loan agreement on file?
Yes No N/A
Describe Basis for Conclusion:
c. If the loans are secured, are the security documents recorded?
Yes No N/A
Describe Basis for Conclusion:
13.
a. If a bank is involved in loan servicing, has the program participant
signed a written agreement with the bank, specifying the services to be
provided by the bank, the fees, and the consequences for failure to
perform?
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 36
b. If applicable, has the lender performed any administrative services for
the program?
Yes No N/A
Describe Basis for Conclusion:
E. CONTRACTOR SELECTION AND OVERSIGHT
14.
a. 1. Is there a written contractor selection procedure in place for
contractors selected in accordance with the procurement
requirements at 24 CFR 85.36 (2013 edition)? (These procurement
requirements do not apply if the homeowner is selecting the
contractor.)
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Is there a written contractor selection procedure in place for
contractors selected in accordance with the procurement requirements
at 2 CFR 200.318-200.326? (These procurement requirements do not
apply if the homeowner is selecting the contractor.)
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “a.2” above is “yes,” describe the contractor selection process, including
whether the program participant selects the contractor, or, if the owner selects the
contractor, what guidance, if any, is provided by the program participant.
Describe Basis for Conclusion:
15.
Is there an adequate pool of contractors who perform rehabilitation work as
overseen by the program participant or its designee?
Yes No N/A
Describe Basis for Conclusion:
16.
a. 1. Is there a written procedure for resolving contract disputes? (This
does not apply if homeowner selected the contractor.)
[24 CFR 84.41 and 85.36(b)(12) (2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Is there a written procedure for resolving contract disputes? (This
does not apply if the homeowner selected the contractor.)
[2 CFR 200.318(k)]
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 37
b. Whether the program participant has written procedures in place or not, describe the
program participant’s process for resolving contract disputes.
Describe Basis for Conclusion:
17.
For on-site inspections, does the quality and scope of rehabilitation work
appear consistent with the scope and cost of the work?
Yes No N/A
Describe Basis for Conclusion:
F. BENEFICIARY AND REHABILITATION DATA
18.
a. 1. Describe the program participant’s system for maintaining applicant, beneficiary, and
rehabilitation records/information.
[24 CFR 84.53 and 24 CFR 85.42 (2013 edition)]
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Describe the program participant’s system for maintaining applicant, beneficiary, and
rehabilitation records/information.
[2 CFR 200.333]
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
b. Is adequate security afforded to applicant data that are confidential?
[2 CFR 200.337 and 24 CFR 570.508]
Yes No N/A
Describe Basis for Conclusion:
c. Are rehabilitation loan and/or grant documents kept in a secure and
fireproof facility?
Yes No N/A
Describe Basis for Conclusion:
d. Is there an electronic data backup system?
Yes No N/A Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 38
19.
Describe the program participant’s system for tracking and reporting rehabilitation activities
in the Integrated Disbursement and Information System (IDIS).
Describe Basis for Conclusion:
20.
Does the program participant’s system assist in analyzing its own program
outputs?
Yes No N/A
Describe Basis for Conclusion:
G. LUMP SUM DRAWDOWNS
21.
a. If the program participant has drawn down funds in a lump sum, does
the participant have a written lump sum agreement?
[24 CFR 570.513(b)(2)]
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “21.a” above is “yes,” what is the date of the execution of the agreement
and the amount of the initial deposit?
Describe Basis for Conclusion:
22.
a. Does the lump sum agreement contain the required elements?
[24 CFR 570.513(b)(2)]
Yes No N/A
Describe Basis for Conclusion:
b. Does the agreement describe the benefits to be provided by the private
financial institution in support of the program participant’s rehabilitation
program, including provisions of interest payments, and at least one of
the three regulatory requirements; and are such benefits being provided?
[24 CFR 570.513(b)(9)(i) and (ii)]
Yes No N/A
Describe Basis for Conclusion:
23.
a. Was a copy of the executed agreement provided to the HUD Field Office
(as well as any modifications made to the agreement during its term, if
applicable)?
[24 CFR 570.513(b)(2)]
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 39
b. Was HUD notified of the amount of CDBG funds distributed to the
private financial institution before the funds were used for the intended
purpose?
[24 CFR 570.513(e)]
Yes No N/A
Describe Basis for Conclusion:
24.
Are the funds being used in accordance with the written agreement for
eligible rehabilitation of privately-owned properties?
[24 CFR 570.513(b)(1)]
Yes No N/A
Describe Basis for Conclusion:
25.
a. Did use of the deposited funds commence within 45 days of the deposit?
[24 CFR 570.513(b)(4)]
Yes No N/A Describe Basis for Conclusion:
b. Were funds substantially disbursed within 180 days of receipt of the
deposit (e.g., 25% of the fund, deposit plus interest earned)?
[24 CFR 570.513(b)(4)]
Yes No N/A
Describe Basis for Conclusion:
26.
Does the program participant review the level of program activity annually?
[24 CFR 570.513(b)(5)]
Yes No N/A
Describe Basis for Conclusion:
H. ESCROW ACCOUNTS
27.
a. Has the program participant established escrow accounts for use in
funding the rehabilitation of residential properties as permitted at 24
CFR 570.511(a)? (If the answer is “no,” skip to Section I.)
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “27.a” above is “yes,” are the use of the funds limited to
loans and grants of primarily residential properties containing no more
than four dwelling units (and accessory space, if applicable)?
[24 CFR 570.511(a)(1)]
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 40
28.
a. Are the escrow accounts used, and funds deposited into an escrow
account, only when specifically provided for in an executed contract
between a property owner and contractor?
[24 CFR 570.511(a)(2)]
Yes No N/A
Describe Basis for Conclusion:
b. Is the amount of funds deposited limited to an amount expected to be
disbursed within 10 working days from date of deposit?
[24 CFR 570.511(a)(4)]
Yes No N/A
Describe Basis for Conclusion:
29.
a. Are escrow funds deposited into an interest-bearing account?
[24 CFR 570.511(a)(3)]
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “29.a” above is “yes,” is the interest earned on the
account remitted to HUD at least quarterly (less any service charges),
unless the interest is attributable to the investment of program income
(in which case, this should be described in the “basis for conclusion”
below)?
[24 CFR 570.511(b)]
Yes No N/A
Describe Basis for Conclusion:
I. OTHER REQUIREMENTS
30.
Does the program participant comply with the Lead Hazards requirements
of 24 CFR Part 35? (Use appropriate Exhibits in Chapter 24 to answer this
question.)
[24 CFR 570.608]
Yes No N/A
Describe Basis for Conclusion:
31.
a. Does the program participant acquire property for the purpose of
rehabilitation?
Yes No N/A
Describe Basis for Conclusion:
b. If CDBG funds were used in a project involving the rehabilitation,
acquisition, or demolition of the property, and if any tenants or owners
were required to relocate permanently or temporarily, were the
Yes No N/A
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Page 41
applicable relocation requirements followed [e.g., the Uniform
Relocation Act (URA), Section 104(d)]? (If needed, refer to your
Regional Relocation Specialist for assistance with this question.)
[24 CFR 570.606, 49 CFR 24 and 24 CFR Part 42]
Describe Basis for Conclusion:
c. If the program participant acquires property, does it have a system for
tracking the property(ies) and ensuring compliance?
Yes No N/A
Describe Basis for Conclusion:
32.
Were the environmental requirements at Part 58 met? (Use the applicable
Exhibit(s) in Chapter 21 to answer this question.)
Yes No N/A
Describe Basis for Conclusion:
33.
If applicable, were Davis-Bacon requirements met? (Use the appropriate
question(s) in Chapter 23 to answer this question.)
Yes No N/A
Describe Basis for Conclusion:
J. SUMMARY OF EXHIBIT 3-11 REVIEWS
34.
Summarize the conclusions reached in carrying out individual activity/project reviews under
Exhibit 3-11. Include any findings, concerns and/or observations. As applicable, questions
in the above sections should cross-reference the information in this section, using the Project
or Application number(s) from Exhibit 3-11 to support determinations regarding the
management of this participant’s rehabilitation program.
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-42 02/2017
Guide for Review of Individual
CDBG-Funded Rehabilitation Activities
Name of Program Participant:
Staff Consulted:
Property Address: Project/Application/Identifying Number:
Application Type (Loan, Grant, etc.):
Name(s) of Reviewer(s) Date
NOTE: All questions that address requirements contain the citation for the source of the requirement
(statute, regulation, NOFA, or grant agreement). If the requirement is not met, HUD must make
a finding of noncompliance. All other questions (questions that do not contain the citation for
the requirement) do not address requirements, but are included to assist the reviewer in
understanding the participant's program more fully and/or to identify issues that, if not properly
addressed, could result in deficient performance. Negative conclusions to these questions may
result in a "concern" being raised, but not a "finding."
Instructions: Complete this Exhibit for each rehabilitation project or activity selected as part of the
monitoring review. The Exhibit is divided into eight sections: Eligibility; National Objective;
Rehabilitation of Multi-Family Housing; Rehabilitation of Rental Housing; Property Inspection;
Rehabilitation Management; Rehabilitation Processing Procedures; and Other Requirements. HUD
reviewers should select an appropriate sample (either randomly or judgmentally selected). Irrespective of
the sampling type, consideration should be given to:
• the type of rehabilitation undertaken by the program participant, e.g., owner-occupied; investor-
owned; multi-family; single family; mixed use; non-residential;
• completed, in-progress, and denied cases;
• properties that were substandard prior to rehabilitation and were brought up to standard with
CDBG funds;
• cases for which the Field Office received a recent formal complaint. If this program participant’s overall rehabilitation program is being reviewed as part of the monitoring,
conclusions reached in the individual file reviews conducted using this Exhibit should be used to support
determinations made under Exhibit 3-10, Guide for Review of CDBG-Funded Rehabilitation Program
Management. When reviewing larger programs, it may be necessary to either increase the sample size or
select a random sample in order to support conclusions about the program participant’s performance as a
whole.
This Exhibit includes citations to regulations that pre-dated HUD’s implementation of 2 CFR Part 200
(e.g., 24 CFR Part 85 (2013 edition) and 24 CFR Part 84 (2013 edition)). CPD staff conducting
monitoring should use the appropriate citations based on the applicability of 24 CFR Parts 84/85 (2013
edition) or 2 CFR Part 200. For further information, please see the HUD Transition Notice (SD-2015-
01), dated December 26, 2015, which describes the transition to 24 CFR Part 200 located at:
https://portal.hud.gov/hudportal/documents/huddoc?id=15-01sdn.pdf and additional transition guidance
available in a subsequent Notice (CPD-16-04), dated April 13, 2016, and located at:
http://portal.hud.gov/hudportal/documents/huddoc?id=16-04cpdn.pdf. On-Site or Remote Property Inspections. Because housing rehabilitation has been identified as a high risk
CDBG activity, emphasis should be placed on visual property inspections, as frequently as time and
resources permit, to determine if the rehabilitation funds were expended to provide quality rehabilitation
at reasonable costs. If the expenditure of funds for rehabilitation is not reflected in the work
accomplished, then the reviewer needs to determine causes for any discrepancies and discuss them with
the program participant. Suspicious circumstances should be referred to the Regional Inspector General,
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-43 02/2017
consistent with Departmental procedures.
It is recommended that HUD reviewers inspect a minimum of five properties when the program
participant's annual rehabilitation program budget equals $500,000 or more, or a minimum of three
properties when the program participant's annual rehabilitation program budget is less than $500,000. Please note that “substandard but suitable for rehabilitation” is defined by the program participant in its
Consolidated Plan and includes, as a minimum, those units that do not meet Section 8 Existing Housing
Quality Standards. The term "standard" refers to units that do not meet the local definition of
substandard. [See 24 CFR 91.205(b).]
On-site property inspections must be scheduled with advance notice to the owner/occupant. The program
participant shall contact the owners/occupants involved to schedule an inspection. The owner or a
representative of the owner and a program participant representative should be present, especially for
inspection of property interiors. In the event it is not possible to inspect all the properties selected, HUD
reviewers may select additional files for the purpose of property inspections only. To carry out the
inspection, HUD reviewers should: a. Review documentation of substandard conditions, such as the initial property inspections, or
equivalent;
b. Review the work write-up and cost estimates, or the rehabilitation contract (or equivalent steps
for documenting the work performed or to be performed);
c. Review the final inspection (certificates, or equivalent documentation, if any);
d. Review the actual work accomplished in comparison with the items established in the
rehabilitation contract and the actual expenditures per item to the extent discernible; and
e. Cover all aspects of the construction as set forth in the work write-up.
Questions
A. ELIGIBILITY
1.
a. How is this activity classified in the Consolidated Plan Annual Action Plan or the Integrated
Disbursement and Information System (IDIS)?
Describe Basis for Conclusion:
b. Does the project file for the CDBG assistance provide a full description
sufficient to show that the activity is eligible and has been properly classified
under Subpart C of Part 570?
[24 CFR 570.506(a)]
Yes No N/A
Describe Basis for Conclusion:
B. NATIONAL OBJECTIVE
2.
Which national objective is this activity intended to meet?
Housing activities [24 CFR 570.208(a)(3)]
Activities to address slums or blights on an area basis [24 CFR 570.208(b)(1)]
Activities to address slums or blight on a spot basis [24 CFR 570.208(b)(2)]
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-44 02/2017
3.
a. If the activity was designed to benefit low- and moderate-income households, which of the two
definitions of income at 24 CFR 570.3 did the program participant use (Section 8 or adjusted
gross income from IRS Form 1040)?
NOTE: The Census Long-Form definition is not applicable as of the 2010 Census.
Describe Basis for Conclusion:
b. If the low- and moderate-income national objective for housing applies to this
activity, is there documentation that shows that the applicant is low- and
moderate-income, based on the applicant’s household size and household
income at the time the assistance was provided?
[24 CFR 570.208(a)(3) and 24 CFR 570.506(b)(4)(iii)]
Yes No N/A
Describe Basis for Conclusion:
c. For an activity determined to benefit low- and moderate-income households,
were the correct income limits applied at the point in time when the benefit
was determined?
[24 CFR 570.506(b)(1) and 24 CFR 570.506(b)(4)(iii)]
Yes No N/A
Describe Basis for Conclusion:
E. PROPERTY
4.
Does the file contain a Work Write-Up and Cost Estimate that addresses the issues
raised in the initial inspection?
Yes No N/A
Describe Basis for Conclusion:
a. 1. Does the contract include the cost of the work to be performed and, if so, does
the cost appear reasonable for the kind of work to be performed? (If “no,”
describe what you found.)
[24 CFR 570.502(a)(6); 24 CFR 85.22 (2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Does the contract include the cost of the work to be performed and, if so, does
the cost appear reasonable for the kind of work to be performed? (If “no,”
describe what you found.)
[24 CFR 570.502; 2 CFR 200.323; 2 CFR 200.403; 2 CFR 200.404]
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-45 02/2017
b. Does the contract name all of the contractors and/or subcontractors responsible
for performing each item of work?
Yes No N/A
Describe Basis for Conclusion:
c. 1. Is there documentation to show that the program participant ensured that all
contractors and subgrantees that it is doing business with under the grant are
not excluded (debarred/suspended) in accordance with 2 CFR Parts 180 and
2424?
[24 CFR 570.609; 2 CFR Part 180; 2 CFR Part 2424]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
c. 2. Is there documentation to show that the program participant ensured that all
contractors and subgrantees that it is doing business with under the grant are
not excluded (debarred/suspended) in accordance with 2 CFR Parts 180 and
2424?
[24 CFR 570.609; 2 CFR 200.205; 2 CFR 200.213; 2 CFR Part 180; and 2
CFR Part 2424]
Yes No N/A
Describe Basis for Conclusion:
5.
a. Was there a local building permit taken out for the job?
Yes No N/A
Describe Basis for Conclusion:
b. If a permit was taken out, did the building official sign off on the permit,
indicating that the work was completed?
Yes No N/A
Describe Basis for Conclusion:
6.
a. Is there documentation of routine progress inspections?
[24 CFR 570.502(a)(14) and (b)(3)(vii); 24 CFR 84.51 and 85.40 (2013
edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-46 02/2017
b. Is there documentation of routine progress inspections?
[24 CFR 570.502; 2 CFR 200.328(a) & (c)]
Yes No N/A
Describe Basis for Conclusion:
7.
Is the work inspected prior to paying the contractor?
Yes No N/A
Describe Basis for Conclusion:
8.
a. Is the actual cost of the work components documented?
Yes No N/A
Describe Basis for Conclusion:
b. Did the owner or the owner’s authorized representative approve each payment?
Yes No N/A
Describe Basis for Conclusion:
9.
Are payment disbursement records maintained?
Yes No N/A
Describe Basis for Conclusion:
10.
a. Are change orders documented?
Yes No N/A
Describe Basis for Conclusion:
b. 1. Does the scope and cost of change order work appear reasonable?
[24 CFR 570.502(a)(6); 24 CFR 85.22 (2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-47 02/2017
b. 2. Does the scope and cost of change order work appear reasonable?
[24 CFR 570.502; 2 CFR 200.323; 2 CFR 200.403; 2 CFR 200.404]
Yes No N/A
Describe Basis for Conclusion:
11.
Is there documentation of a final inspection of the work by program participant
staff?
Yes No N/A
Describe Basis for Conclusion:
12.
Has a formal Notice of Completion been recorded? (This notice sets a time limit
for filing any mechanic’s liens against the property, if applicable.)
Yes No N/A
Describe Basis for Conclusion:
13.
[OS] a. Does the work appear to correct the deficiencies noted in the initial
inspection?
Yes No N/A
Describe Basis for Conclusion:
b. Does a walk-through inspection indicate that all items were completed as
specified in the Work Write-Up?
Yes No N/A
Describe Basis for Conclusion:
14.
a. Was the owner, the owner’s representative, or property manager, satisfied with
the work?
NOTE: The owner, representative, or manager should be provided an
opportunity to be interviewed with only HUD personnel present.
Yes No N/A
Describe Basis for Conclusion:
b. Is there evidence that the owner received contractor and equipment warranties?
Yes No N/A
Describe Basis for Conclusion:
G. REHABILITATION PROCESSING PROCEDURES
15.
What is the date of the initial application for rehabilitation assistance?
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-48 02/2017
16.
What date was the application either approved or denied?
Describe Basis for Conclusion:
17.
If the application for rehabilitation assistance was approved, what date did the rehabilitation work
begin?
Describe Basis for Conclusion:
18.
If the rehabilitation was approved, what date was the rehabilitation completed and final payment to
the contractor made?
Describe Basis for Conclusion:
19.
Is there any indication that the rehabilitation processing time for this activity was
excessive and not due to extenuating circumstances or circumstances beyond the
control of the program participant?
Yes No N/A
Describe Basis for Conclusion:
H. OTHER REQUIREMENTS
20.
Is there documentation to support compliance with the Lead Hazards requirements
of 24 CFR Part 35? (Use appropriate Exhibits in Chapter 24 to answer this
question.)
[24 CFR 570.608]
Yes No N/A
Describe Basis for Conclusion:
21.
If CDBG funds were used in a project involving the rehabilitation, acquisition, or
demolition of the property and, if any tenants or owners were required to relocate
permanently or temporarily, were the applicable relocation requirements followed
[e.g., the Uniform Relocation Act (URA), Section 104(d)]? (If needed, refer to
your Regional Relocation Specialist for assistance with this question.)
[24 CFR 570.606; 49 CFR Part 24; and 24 CFR Part 42]
Yes No N/A
Describe Basis for Conclusion:
22.
Were the environmental requirements at 24 CFR Part 58 met? (Use the applicable
Exhibit(s) in Chapter 21 to answer this question.)
[24 CFR 570.604]
Yes No N/A
Describe Basis for Conclusion:
23.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-11 6509.2 REV-7
CDBG Entitlement Program
3-49 02/2017
If applicable, were the Davis-Bacon labor standards requirements met? (Use the
appropriate question(s) in Exhibit 23-1 to answer this question.)
[24 CFR 570.603]
Yes No N/A
Describe Basis for Conclusion:
24.
If CDBG funds were used for rehabilitation of real property located within the
Special Flood Hazard Area (SFHA), are those assisted properties in compliance
with the flood insurance purchase and community participation requirements at
Sections 102(a) and 202(a) of the Flood Disaster Protection Act of 1973, as
amended, and at 24 CFR 570.605 and 24 CFR 570.509(c)(4)(iv)? (For review of
compliance with Sections 102(a) and 202(a), use Exhibit 27-1 of this Handbook,
Guide for Review of Flood Insurance Protection, especially questions 1-6, 9, 10
and 12.)
[24 CFR 570.605 and 24 CFR 570.509(c)(4)(iv)]
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-50 02/2017
Guide for Review of CDBG-Funded Rehabilitation Program Management
Name of Program Participant:
Staff Consulted:
Name(s) of Reviewer(s): Date: NOTE: All questions that address requirements contain the citation for the source of the requirement
(statute, regulation, NOFA, or grant agreement). If the requirement is not met, HUD must make
a finding of noncompliance. All other questions (questions that do not contain the citation for
the requirement) do not address requirements, but are included to assist the reviewer in
understanding the participant's program more fully and/or to identify issues that, if not properly
addressed, could result in deficient performance. Negative conclusions to these questions may
result in a "concern" being raised, but not a "finding."
Instructions: This Exhibit applies to all CDBG Entitlement program-assisted property
rehabilitation. The Department’s policy on housing rehabilitation emphasizes, as a priority,
increasing the efficiency and effectiveness of local rehabilitation programs. This Exhibit is designed
to evaluate a program participant’s rehabilitation program from a management perspective,
reviewing both rehabilitation productivity and the cost effectiveness of program operations. It is
both a qualitative and quantitative analysis. It is divided into ten sections: Program Design and
Management; Budget and Productivity; Rehabilitation Standards; Loan Financing and Servicing;
Contractor Selection and Oversight; Beneficiary and Rehabilitation Data; Lump Sum Drawdowns;
Escrow Accounts; Other Requirements; and Summary of Exhibit 3-11 Reviews. This Exhibit must
be used in conjunction with individual project/activity reviews conducted under Exhibit 3-11 in
order to make supportable determinations about the participant’s rehabilitation program as a whole.
Section J at the end of this Exhibit is to be used to summarize the results of Exhibit 3-11 reviews that
are used for this purpose. The term “program participant” is used interchangeably with “grantee”
and “recipient” for purposes of this Exhibit.
This Exhibit includes citations to regulations that pre-dated HUD’s implementation of 2 CFR Part
200 (e.g., 2 CFR Part 225 (formerly OMB Circular A-87), 24 CFR Part 85 and 24 CFR Part 84).
The regulations for these citations, referenced herein as “(2013 edition),” may be found at:
https://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR&searchPath=Title+2
4&oldPath=Title+24&isCollapsed=true&selectedYearFrom=2013&ycord=1000. CPD staff
conducting monitoring should use the appropriate citations based on the applicability of 24 CFR
Parts 84/85 or 2 CFR Part 200. For further information, please see the HUD Transition Notice
(SD-2015-01), dated December 26, 2015, which describes the transition to 24 CFR Part 200 located
at: https://portal.hud.gov/hudportal/documents/huddoc?id=15-01sdn.pdf and additional transition
guidance available in a subsequent notice (CPD-16-04), dated April 13, 2016, located at:
http://portal.hud.gov/hudportal/documents/huddoc?id=16-04cpdn.pdf.
Questions:
A. PROGRAM DESIGN AND MANAGEMENT
1.
a. Do the types of buildings and improvements, including the type of
assistance provided (i.e., grants, loans, loan guarantees, interest
supplements) qualify as eligible activities under 24 CFR 570.202(a) and
(b)?
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-51 02/2017
b. If the program participant claims rehabilitation activities as benefiting low- and
moderate-income persons or households, as appropriate, what definition of income under
24 CFR 570.3 does it use?
Describe Basis for Conclusion:
2.
a. Has the program participant established written local operating
procedures and policies for the program?
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “2.a” above is “yes,” does a review of the procedures
and policies generally indicate compliance with HUD regulations and
policies?
Yes No N/A
Describe Basis for Conclusion:
c. If the answer to “2.a” above is “yes,” do the procedures cover
beneficiary dispute resolution?
Yes No N/A
Describe Basis for Conclusion:
3.
4.
If applicable, does the program participant monitor its third party
subrecipients or entities that carry out rehabilitation on behalf of the
program participant?
[24 CFR 570.501(b)]
Yes No N/A
Describe Basis for Conclusion:
5.
How does the program participant ensure that information about its rehabilitation program is
provided to potential beneficiaries?
Describe Basis for Conclusion:
6.
Does the program participant provide training to staff on housing
rehabilitation requirements?
Yes No N/A
Describe Basis for Conclusion:
B. BUDGET AND PRODUCTIVITY
7.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-52 02/2017
For the current program year, does the program participant maintain documentation showing:
a. Total CDBG funds budgeted? $
b. Total amount of CDBG funds obligated Year-To-Date (YTD)? $
c. Total amount of CDBG funds expended YTD? $
d. Total of all funds budgeted for rehabilitation this year? CDBG $:
Public $:
Private $:
TOTAL$:
[24 CFR 570.506(a)]
Describe Basis for Conclusion:
8.
a. What was the total number of units rehabilitated in the prior program year (for all funding
sources)?
Describe Basis for Conclusion:
b. What is the total number of units proposed for rehabilitation this program year (all
funding sources)?
Describe Basis for Conclusion:
C. REHABILITATION STANDARDS
9.
a. What standards are used to determine the extent of rehabilitation necessary (e.g., is there
a standard specification or performance manual)?
Describe Basis for Conclusion:
b. Have local housing codes been adopted in conjunction with the program
participant’s rehabilitation standards?
Yes No N/A
Describe Basis for Conclusion:
c. If the answer to “9.b” above is “yes,” how does the program participant determine that
the work items meet local codes upon completion?
Describe Basis for Conclusion:
10.
a. Describe the process for preparing the work specifications and cost estimates, including
which employees’ positions have the responsibility to prepare the cost estimates and
approve them.
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-53 02/2017
b. Is there a written procedure in place for changes in the scope of work
and/or specifications?
Yes No N/A
Describe Basis for Conclusion:
c. 1. Is there a procedure for determining if contract costs are reasonable
and, if so, who or which employee positions have the responsibility for
making the determination and approving the costs?
[2 CFR Part 225, Appendix A, C(1) and (2) (OMB Circular A-87)
(2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
c. 2. Is there a procedure for determining if contract costs are reasonable
and, if so, who or which employee positions have the responsibility for
making the determination and approving the costs?
[2 CFR 200.403(a) and 200.404]
Yes No N/A
Describe Basis for Conclusion:
d. If the answer to “10.c.1” above is “no,” what actions are being taken to
ensure that costs are reasonable? [2 CFR Part 225, Appendix A, C(2);
OMB Circular A-87 (2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
e. If the answer to “10.c.2” above is “no,” what actions are being taken to
ensure that costs are reasonable?
[2 CFR 200.404]
Yes No N/A
Describe Basis for Conclusion:
E. CONTRACTOR SELECTION AND OVERSIGHT
14.
a. 1. Is there a written contractor selection procedure in place for
contractors selected in accordance with the procurement
requirements at 24 CFR 85.36 (2013 edition)? (These procurement
requirements do not apply if the homeowner is selecting the
contractor.)
Yes No N/A
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-54 02/2017
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Is there a written contractor selection procedure in place for
contractors selected in accordance with the procurement requirements
at 2 CFR 200.318-200.326? (These procurement requirements do not
apply if the homeowner is selecting the contractor.)
Yes No N/A
Describe Basis for Conclusion:
b. If the answer to “a.2” above is “yes,” describe the contractor selection process, including
whether the program participant selects the contractor, or, if the owner selects the
contractor, what guidance, if any, is provided by the program participant.
Describe Basis for Conclusion:
15.
Is there an adequate pool of contractors who perform rehabilitation work as
overseen by the program participant or its designee?
Yes No N/A
Describe Basis for Conclusion:
16.
a. 1. Is there a written procedure for resolving contract disputes? (This
does not apply if homeowner selected the contractor.)
[24 CFR 84.41 and 85.36(b)(12) (2013 edition)]
Yes No N/A
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Is there a written procedure for resolving contract disputes? (This
does not apply if the homeowner selected the contractor.)
[2 CFR 200.318(k)]
Yes No N/A
Describe Basis for Conclusion:
b. Whether the program participant has written procedures in place or not, describe the
program participant’s process for resolving contract disputes.
Describe Basis for Conclusion:
17.
For on-site inspections, does the quality and scope of rehabilitation work
appear consistent with the scope and cost of the work?
Yes No N/A Describe Basis for Conclusion:
F. BENEFICIARY AND REHABILITATION DATA
18.
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-55 02/2017
a. 1. Describe the program participant’s system for maintaining applicant, beneficiary, and
rehabilitation records/information.
[24 CFR 84.53 and 24 CFR 85.42 (2013 edition)]
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
a. 2. Describe the program participant’s system for maintaining applicant, beneficiary, and
rehabilitation records/information.
[2 CFR 200.333]
Describe Basis for Conclusion:
For Monitoring Covered by 2 CFR Part 200 Requirements.
b. Is adequate security afforded to applicant data that are confidential?
[2 CFR 200.337 and 24 CFR 570.508]
Yes No N/A Describe Basis for Conclusion:
c. Are rehabilitation loan and/or grant documents kept in a secure and
fireproof facility?
Yes No N/A Describe Basis for Conclusion:
d. Is there an electronic data backup system?
Yes No N/A
Describe Basis for Conclusion:
19.
Describe the program participant’s system for tracking and reporting rehabilitation activities
in the Integrated Disbursement and Information System (IDIS).
Describe Basis for Conclusion:
20.
Does the program participant’s system assist in analyzing its own program
outputs?
Yes No N/A
Describe Basis for Conclusion:
I. OTHER REQUIREMENTS
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Exhibit 3-10 6509.2 REV-7
CDBG Entitlement Program
3-56 02/2017
30.
Does the program participant comply with the Lead Hazards requirements
of 24 CFR Part 35? (Use appropriate Exhibits in Chapter 24 to answer this
question.)
[24 CFR 570.608]
Yes No N/A
Describe Basis for Conclusion:
b. If CDBG funds were used in a project involving the rehabilitation,
acquisition, or demolition of the property, and if any tenants or owners
were required to relocate permanently or temporarily, were the
applicable relocation requirements followed [e.g., the Uniform
Relocation Act (URA), Section 104(d)]? (If needed, refer to your
Regional Relocation Specialist for assistance with this question.)
[24 CFR 570.606, 49 CFR 24 and 24 CFR Part 42]
Yes No N/A
Describe Basis for Conclusion:
32.
Were the environmental requirements at Part 58 met? (Use the applicable
Exhibit(s) in Chapter 21 to answer this question.)
Yes No N/A
Describe Basis for Conclusion:
33.
If applicable, were Davis-Bacon requirements met? (Use the appropriate
question(s) in Chapter 23 to answer this question.)
Yes No N/A
Describe Basis for Conclusion:
J. SUMMARY OF EXHIBIT 3-11 REVIEWS
34.
Summarize the conclusions reached in carrying out individual activity/project reviews under
Exhibit 3-11. Include any findings, concerns and/or observations. As applicable, questions
in the above sections should cross-reference the information in this section, using the Project
or Application number(s) from Exhibit 3-11 to support determinations regarding the
management of this participant’s rehabilitation program.
Describe Basis for Conclusion:
Docusign Envelope ID: 4B36AA4B-5D7E-40B4-A2A6-E97636263B1DDocusign Envelope ID: 2D89A592-8530-4E7C-9896-843202796C9E
Certificate Of Completion
Envelope Id: 2D89A59285304E7C9896843202796C9E Status: Completed
Subject: Complete with Docusign: 24-1648 Housing-CDBG H4H SA.pdf
Source Envelope:
Document Pages: 54 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Lauri Nack
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-06:00) Central Time (US & Canada)
901B Texas Street
Denton, TX 76209
Lauri.Nack@cityofdenton.com
IP Address: 198.49.140.10
Record Tracking
Status: Original
10/17/2024 4:26:21 PM
Holder: Lauri Nack
Lauri.Nack@cityofdenton.com
Location: DocuSign
Signer Events Signature Timestamp
Lauri Nack
lauri.nack@cityofdenton.com
President & CEO
City of Denton - Community Services
Security Level: Email, Account Authentication
(None)
Completed
Using IP Address: 198.49.140.10
Sent: 10/17/2024 4:30:51 PM
Viewed: 10/17/2024 4:31:01 PM
Signed: 10/17/2024 4:31:09 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Sara Hensley
Sara.Hensley@cityofdenton.com
City Manager
City of Denton
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 172.59.197.76
Signed using mobile
Sent: 10/17/2024 4:31:12 PM
Viewed: 10/17/2024 5:13:38 PM
Signed: 10/17/2024 5:14:02 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lauren Thoden
Lauren.Thoden@cityofdenton.com
City Secretary
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 198.49.140.10
Sent: 10/17/2024 5:14:06 PM
Viewed: 10/17/2024 5:25:54 PM
Signed: 10/17/2024 5:26:00 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Carbon Copy Events Status Timestamp
CSO Group
CSOGroup@cityofdenton.com
Security Level: Email, Account Authentication
(None)
Sent: 10/17/2024 5:26:03 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lauri Nack
lauri.nack@cityofdenton.com
President & CEO
City of Denton - Community Services
Security Level: Email, Account Authentication
(None)
Sent: 10/17/2024 5:26:04 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 10/17/2024 4:30:51 PM
Certified Delivered Security Checked 10/17/2024 5:25:54 PM
Signing Complete Security Checked 10/17/2024 5:26:00 PM
Completed Security Checked 10/17/2024 5:26:04 PM
Payment Events Status Timestamps