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1985-114NO & `f AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A CONTRACT WITH THE TEXAS DEPARTMENT OF COMMUNITY AFFAIRS TO RECEIVE FUNDING FOR AND ADMINISTER THE TEXAS RENTAL REHABILITATION PROGRAM, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Denton has applied for and been awarded a Texas Rental Rehabilitation Program (TARP) contract by the Texas Department of Community Affairs pursuant to Section 301 of the Housing and Urban-Rural Recovery Act of 1983, and WHEREAS, the City of Denton is required to enter into a contract with the Texas Department of Community Affairs in order to receive funds foi and administer TRRP, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS SECTION I That the City Council hereby approves the attached contract between the City of Denton and the Texas Department of Community Affairs and authorizes the City Manager to execute the contract and any other agreements necessary to receive funding for and to administer the Texas Rental Rehabilitation Program PASSED AND APPROVED this the day of _912e' , 1985 CI Y OFD TON, TEXAS ATTEST CAARLOTT N,~ 'CITY bELALTARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY ` L MM TEXAS DEPARTMENT OF COMMUNITY AFFAIRS v v Q` 0 y U L/ S V CONTRACT FOR RENTAL REHABILITATION PROGRAM STATE OF TEXAS COUNTY OF TRAVIS ] SECTION 1 PARTIES TO CONTRACT This contract and agreement is made and entered into by and between the Texas Department of Community Affairs, an agency of the State of Texas, hereinafter referred to as "Department", and the City of Denton, hereinafter referred to as "Contractor" The parties hereto have severally and collectively agreed and by the execution hereof are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein SECTION 2 CONTRACT PERIOD This contract and agreement shall commence on April 15, 1985, and shall terminate on April 14, 1987, unless otherwise specifically provided by the terms of this contract SECTION 3 CONTRACTOR PERFORMANCE Contractor shall conduct, in a satisfactory manner as determined by Depart- ment, a rental rehabilitation program under Section 17 of the United States Housing Act of 1937, 42 U S C 14370, hereinafter referred to as the Act Contractor shall perform all activities in accordance with the terms of the Performance Statement, hereinafter referred to as Exhibit A, the Certifica- tions, hereinafter referred to as Exhibit 8, the Applicable Laws and Regula- tions, hereinafter referred to as Exhibit C, the Schedule for Committing Rental Rehabilitation Funds, hereinafter referred to as Exhibit U, the assurances, certifications, and all other statements made by Contractor in its application for the project funded under this contract, and with all other terms, provisions, and requirements set forth in this contract SECTION 4 DEPARTMENT OBLIGATIONS Measure of Liability in consideration of full and satisfactory performance of the activities referred to in Section 3 of this contract, Department shall be liable for actual and reasonable costs incurred by Contractor during the contract period for performances rendered under this contract by Contractor, subject to the limitations set forth in this Section 4 1 It is expressly understood and agreed by the parties hereto that Depart- ment's obligations under this Section 4 are contingent upon the actual PAGE 1 OF TI receipt of adequate state dnd/or federal funds to meet Department's liabilities under this contract If adequate funds are not dvalldble to make payments under this contract, Oepartmert shall notify Contractor in writing within a reasonable time after such fact is determined Department shall ' termindte this contract and will not be liable for failure to make payments to Contractor under this contract 2 Department shall not be liable to Contractor for any costs incurred by Contractor, or any portion thereof, which has been paid to Contractor or is subject to payment to Contractor, or has been reimbursed to Contractor or is subject to reimbursement to Contractor by any source other than Department or Contractor 3 Department shall not be liable to Contractor for administrative costs, as set forth in Section 6(C) of this contract, and for any costs incurred by Contractor which are not allowable costs, as set forth in Section 6(8) of this contract 4 Department shall not be liable to Contractor for any costs incurred by Contractor or for any performances rendered by Contractor which are not strictly in accordance with the terms of this contract, including the terms of Exhibit A, Exhibit 8, Exhibit C, and Exhibit D of this contract 5 Department shall not be liable to Contractor for any costs incurred by Contractor in the performance of this contract which have not been billed to Department by Contractor within sixty (60) days following termination of this contract unless otherwise provided for in the Project Completion Report(s) referred to in Section 8(C) of this contract 6 Department shall not be liable for costs incurred or performances rendered by Contractor before commencement of this contract or after termination of this contract B Excess Pavments Contractor shall refund any sum of money which has been paid to Contractor under this contract, which Department determines has resulted in overpayment to Contractor, or which Department determines has not been spent by Contractor strictly in accordance with the terms of this contract Such refund ,hall be made by Contractor to U S Department of Housing of Urban Development (HUO) within thirty (30) working days after such refund is requested by Department C Limit of Liability Notwithstanding any other provision of this contract, the total of ail amounts obligated by Department under this contract shall not exceed the sum of One Hundred Five Hundred Thousand and no/100 Dollars ($105,000 00) SEC11ON 5 MEMOO OF PAYMENT A HUD's Cash and Mandgement Information (C/MI) system for the Rental Rehabilitation Program, Notice CPO 84-8, issued September 17, 1984, and any modifications thereto, shall be used as the method for disbursement of rental rehabilitation funds obligated to Contractor under this contract PAGE 2 OF 11 Disbur ant is conditioned upon the submission of satisfactory information by Contractor about the project and compliance with other procedures specified by HUD HUD will disburse rental rehabilitation funds obligated by Department under this contract by electronic funds transfer to the depository institution designated by Contractor Amounts requested by Contractor will be disbursed by HUD as closely as possible to the time they are needed by the owner to pay eligible rehabilitation costs and such amount shall immediately be disbursed by Contractor and Owner in payment for eligible costs Contractor shall establish a rental rehabilitation deposit account at designated depository bank and shall not commingle any private or public funds, whether or not such funds are to be used to supplement Rental Rehabilitation Program funds, in the same account Contractor expressly understands and agrees that Department shall not be liable for any damages, claims, or demands which may be asserted as a result of any action, or failure to act, by HUD in discharge of its responsibility under the C/MI system B Notwithstanding the provisions of Section 5(A) of this contract, it is expressly understood and agreed by the parties hereto that payments under this contract are contingent upon Contractor's full and satisfactory performance of its obligations under this contract and that Department may, at its sole option and in its sole discretion, withdraw and reallocate rental rehabilitation funds provided under this contract based on Contractor's noncompliance with the terms of this contract, applicable laws or regulations including recipient's failure to meet the schedule for committing rental rehabilitation amounts as set forth in Exhibit 0 of this contract C It 1s expressly understood and agreed by the parties hereto that any right or remedy provided for in this Section 5 or in any other provision of this contract shall not preclude the exercise of any other right or remedy under this contract or under any provisions of law, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other rights or remedies Failure to exercise any right or remedy hereunder shall not constitute a waiver of the right to exercise that or any other right or remedy at any time SEC110N 6 UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES AND ALLOWA81LIlY_OF COSTS A Contractor shall comply with Office of Management and Budget (OMB) Circular A-102 as supplemented by the rules promulgated by the Office of the Governor at 7 Tex Reg 3112 (August 31, 1982) under the Uniform Grant and Contract Management Act of 1981 (TEX REV CIV STA1 ANN art 4413 (32g) hereinafter referred to as the Management Standards, except to the extent that Department establishes variations from the Management Standards in accordance with Section 6 of such Act 8 The allowability of costs incurred for performances rendered hereunder shall be determined in accordance with OMB Circular A 87, as supplemented by Section 5 150 of the Management Standards, subject to the following limitation PAGE 3 Of 11 Eligible rehabilitation costs shall include only 1 The actual rehabilitdtion costs necessary to (1) correct substandard conditions as referred to in 24 CFR 511 10(c)(2), (ii) make essential improvements including energy-related repairs and improvements to permit the use of rehabilitated projects by handicapped persons, (iii) repair mayor housing systems in danger of failure, and 2 Other costs (soft costs) that are associated with the rehabilitation or rehabilitation financing and are not for services provided or costs incurred by the Contractor Such soft costs may include (but are not limited to) those costs referred to in 24 CFR 511 10(g)(2) C Contractor shall not use rental rehabilitation funds provided under this contract for administrative costs incurred by Contractor in carrying out its responsibilities under the Rental Rehabilitation Program Administrative costs prohibited under this subsection include, but are not limited to, staff and consultant salaries and operating expenses of Contractor SECTION 7 MAINTENANCE, RETENTION, ACCESSIBILITY AND PUBIIC DISCLOSURE OF RECORDS A Contractor shall maintain records in such form and such manner as may be prescribed by HUD or Department that clearly document performance under each program requirement set forth in Subpart B of 24 CFR 511 and that include, at a minimum, (i) records sufficient to meet HUD requirements for the disburse- ment of rental rehabilitation funds pursuant to 24 CFR 511 74, (li) data on the racial, ethnic and gender characteristics of tenants, applicants for tenancy, and owners of the rehabilitated projects, and (iii) data indi- cating the race and ethnicity of households displaced as a result of program activities, and, if available, the address and census tract of the housing units to which each displaced household relocated Records required to be maintained under this subsection A shall be retained for a period of three years from the date of final closeout of the rental rehabilitation grant award to the State of Texas under which monies for this contract were made available B Contractor shall maintain fiscal records and supporting documentation for all expenditures of funds made under this contract in a manner which conforms to HUD requirements, the Management Standards (except to the extent that Department establishes variations from the Management Standards in accordance with Section 6 of such Act), and this contract Contractor shall comply with the retention and custodial requirements for records as set forth in Attachment C of OMB Circular A-102, as supplemented by Section 5 154 of the Management Standards (except to the extent that Department establishes variations therefrom) C Contractor shall give the United States Department of Housing and Urban Development, the Inspector General, the Comptroller General of the United States, the Auditor of the State of Texas, and Department, or any of their duly authorized representatives, access to and the right to examine all books, accounts, records, reports files, and other papers, things or property belonging to or in use by Contractor pertaining to this contract t Such rights to access shall continue as long as the records are retained by Contractor Contractor agrees to maintain such records in an accessible location and shall afford independent auditors the same right of access to its records and financial statements as necessary to comply with Section 19 t of this contract 1 PAGE 4 OF 11 D Contractor shall provide for full and timely disclosure of records and documents relating to their rental rehabilitation programs consistent with applicable Federal, State and local laws regarding personal privacy and obligations of confidentiality Documents relevant to a Contractor's program shall be made available at Contractor's office during normal working hours for citizen review upon request E Contractor shall include the substance of this Section 7 in all subcon- tracts SECTION 8 REPORTING REQUIREMENTS A Contractor shall submit to Department such reports on the operdtion and performance of its rental rehabilitation program in such format and at such times as may be required by Department including, but not limited to, manage- ment and annual performance reports containing such information as Department may prescribe B Contractor shall submit to Department no later than the twentieth (20th) day of the month after the end of each quarter of the contract period speci- fied in Section 2, a Quarterly Progress Report of the progress, in narrative form, of all construction and nonconstruction activities performed pursuant to Exhibit A, Performance Statement, and of the expenditures and obligations of funds made pursuant to this contract The Quarterly Progress Report shall be in a format prescribed by Department and shall include all such activities, expenditures, and obligations made or performed under this contract during the previous quarter C Contractor shall submit a Project Completion Report to Department no later than sixty (60) days after the completion of each project undertaken pursuant to Exhibit A of this contract The Project Completion Report shall be in a format prescribed by Department and shall include a final Project Completion Report of all activities performed under this contract D In addition to the limitations on liability otherwise specified in this contract, it is expressly understood and agreed by the parties hereto that if Contractor fails to submit to Department in a timely and satisfactory manner any report required by this contract, Department may, at its sole option and in its sole discretion, cause any or all payments otherwise due hereunder to be withheld by placing a stop payment order with HUD If Department places a stop payment order, it shall notify Contractor in writing of its decision and the reasons therefore A stop payment order placed pursuant to this paragraph shall continue in full force and effect until such time as Department determines that the delinquent obligations for which funds are withheld are fulfilled by Contractor SECTION 9 MONITORING Department reserves the right to perform periodic on-site monitoring of Contractor's Compliance with the terms and conditions of this contract, and of the adequacy and timeliness of Contractor's performances under this contract After each monitoring visit, Department shall provide Contractor with a written report of the monitor's findings If the monitoring reports notes deficiencies in Contractor's performances under the terms of this contract, the monitoring report shall include requirements for the timely PAGE 5 OF 11 correction of such deficiencic by Contractor failure by Contractor to take action specified in the monitoring report may be cause for suspension or termination of this contract, as provided in Sections 17 and 18 of this contract SECTION 10 INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties hereto that Depdrtment is contracting with Contractor as an Independent Contractor, and that Contractor, as such, agrees to hold Department harmless and to indemnify Department from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third Party occur- ring or in any way incident to, arising out of or in connection with the services to be performed by Contractor under this contract SECTION 11 SUBCONTRACTS Contractor may subcontract for the performances described in this contract without obtaining Department's prior written approval Contractor, in subcontracting for any performances described in this contract, understands and agrees that in entering into such subcontracts. Department is in no way liable to Contractor's subcontractors Contractor further understands and agrees that it shall ensure that the performances rendered under all sub- contracts are rendered so as to comply with all the terms of this contract, as if such performances were rendered by Contractor SECTION 12 CONFLICT OF INTEREST A Contractor covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of this contract Contractor further covenants that in the performance of this contract no person having such interest shall be employed or appointed by Contractor 8 No person (i) who is an employee, agent, consultant, officer, or elected or appointed official of Contractor and who exercises or has exercised any functions or responsibilities with respect to assisted rehabilitation activi- ties or (ii) who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a per- sonal or financial interest or benefit, direct or indirect, in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter C Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors SECTION 13 SECTARIAN ACTIVITY None of the performances rendered by Contractor under this contract shall involve, and no portion of the funds received by Contractor under this contract, shall be used in support of any sectarian or religious activity, PAGE 6 OF 11 nor shall any facilities used in the performance of this contract be used for sectarian instruction or as d place of religious worship SECTION 14 LLGAL AUTHORITY A Contractor assures and guarantees that Contractor possesses the legal authority to enter into this contract, receive funds authorized by this contract, and to perform the services Contractor has obligated itself to perform hereunder D The person or persons signing and executing this contract on behalf of Contractor, or representing themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and guarantee that he, she or they have been duly authorized by Contractor to execute this contract on behalf of Contractor and to validly and legally bind Contractor to all terms, perform- ances, and provisions herein set forth C Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render per- formances hereunder Contractor is liable to Department for any money it has received from Department for performance of the provisions of this contract, if Department has suspended or terminated this contract for reasons enumer- ated in this Section 14 SECTION 15 LITIGATION AND CLAIMS Contractor shall give Department immediate notice in writing of 1) any action, including any proceeding before an administrative agency, filed against Contractor arising out the performance of any subcontract hereunder, and 2) any claim against Contractor, the cost and expense of which Contractor may be entitled to have reimbursed by Department Except as otherwise directed by Department, Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor with respect to such action or claim SECTION 16 CHANGES AND AMENDMENTS A Except as specifically provided otherwise in this contract, any alter- ations, additions, or deletions to the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contract D It is understood and agreed by the parties hereto that performances under this contract must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Depart- ment by ContracLor, and the assurances and certifications made to the United States Department of Housing and Urban Development by the State of Texas with regard to the operation of the Texas Rental Rehabilitation Program (TRRP) Based on these considerations, and in order to ensure the legal and effective performance of this contract by both parties, it is agreed by the parties hereto that the performances under this contract are amended by the provi- sions of the TRRP Implementation Manual and any amendments thereto and may further be amended in the following manner Department may from time to time during the period of performance of this contract issue policy directives PAGE 7 OF 11 which serve to establish, interpret, or clarify performance requirements under this contract Such policy directives shall be promulgated by the Director of Community Development and Housing Divi<ion of Department in the form of TRRP i55Udnees, shall have the effect of qualifying the terms of this contract and shall be binding upon Contractor, as if written herein, provided however that said policy directives and any amendments to said Manual shall not alter the terms of this contract so as to release Department of any obligation specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective date of said amendments or policy directives C Any alterations, additions, or deletions to the terms of this contract which are required by changes in Federal or state law or regulations are automatically incorporated into this contract without written amendment hereto, and shall become effective on the date designated by such law or regulation SECTION 11 SUSPENSION In the event that Contractor fails to comply with any term of this contract, Department may, upon written notification to Contractor, suspend this con- tract in whole or in part and prohibit Contractor from incurring additional obligations of funds under this contract Upon suspension of this contract by Department, Department may cause further payments to Contractor to be withheld by placing a stop payment order with HUD A stop payment order placed pursuant to this paragraph shall continue in full force and effect until such time as Department determines that the delinquent obligations for which funds are withheld are fulfilled by Contractor SECTION 18 TERMINATION A Department shall have the right to terminate this contract, in whole or in part, at any time before the date of completion specified in Section 2 of this contract whenever Department determines that Contractor has failed to comply with any term of this contract Department shall notify Contractor in writing prior to the fifteenth (15th) day preceding the date of termination of such determination, the reasons for such termination, the effective date of such termination, and in the case of partial termination, the portion of the contract to be terminated 8 Either of the parties to this contract shall have the right to terminate this contract, in whole or in part, when both parties agree that the continu- ation of the activities funded under this contract would not produce benefi- cial results commensurate with the further expenditure of funds, provided that both parties agree, in writing, upon the termination conditions, includ- ing the effective date of such termination, and in the case of partial termi- nation, the portion of the contract to be terminated C Upon termination or receipt of notice to terminate whichever occurs first, Contractor shall cancel, withdraw, or otherwise terminate any out- standing orders or subcontracts related to the performance of this contract or the part of this contract to be terminated, and shall cease to incur costs thereunder Department shall not be liable to Contractor or to Contractor's creditors for costs ineurred after termination of this contract PAGE 8 OF 11 D NolwiLhstanding any exercise by Department of its right of suspension under Section 17 of this contract, or of early termination pursuant to this Section 18, Contractor shall not be relieved of any liability to Department of damages due to Department by virtue of any breach of this contract by Contractor Department may cause payments to Contractor to be withheld until such time as the exact amount of damages due to Department from Contractor is agreed upon or is otherwise determined SECTION 19 AUDIT A Unless otherwise directed by Department, Contractor shall arrange for the performance of a financial and compliance audit of funds received under this contract, subject to the following conditions and limitations 1 Contractor shall have an audit made in accordance with the Single Audit Act of 1984, P L 98-502 (hereinafter referred to as "Audit Act"), and OMB's Circular No A-126, "Audit Requirements for State and Local Governments," 49 Fed Reg 50134 (Dec 26, 1984), for any of its fiscal years in which Contractor receives more than $100,000 in Federal financial assistance For purposes of this Section 19, "Federal financial assistance" means assistance provided by a Federal agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals It includes awards received directly from Federal agencies, or indirectly through other units of State and local governments 2 Contractor shall have an audit made in accordance with the Audit Act and OMB's Circular A-126, or in accordance with the audit requirements specified in Attachment P of OMB Circular A-102, as reflected in 24 CFR Part 44 and as supplemented by Section 5 167 of the Management Standards, for any fiscal year in which Contractor receives between $25,000 and $100,000 in Federal financial assistance 3 Contractor shall have an audit made in accordance with Attachment P of OMB Circular A-102, as supplemented by Section 5 167 of the Management Standards, for any fiscal year in which Contractor receives less than $25 000 in Federal fianancial assistance 4 Nothing in this Section 19 exempts Contractor from maintaining records of assistance provided under this contract or from providing access to such records to a Federal agency or Department, as provided for in Section 7 of this contract 5 Where contracts are awarded for audit services, the contracts shall include a reference to the Audit Act and OMB Circular A-126 B Unless otherwise specifically authorized by Department in writing, Contractor shall NOT utilize funds provided under this contract to pay for the cost of audit services required under subsection A of this Section 19 C Unless otherwise specifically authorized by Department in writing, Contractor shall submit the report of such audit to Department no later than one hundred twenty (120) days after the end of the audit period Audits performed under this Section 19 are subject to review and resolution by Department or its authorized representative Resolution of findings shall be made within six (6) months after receipt of the audit report by Department PAGE 9 OF 11 D Contractor understands and agrees that it shall take immediate appropriate corrective action after issuance of the audit report in instances of material noncompliance with laws, regulations or this contract, but shall, in any event, be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this contract Contractor further understands and agrees that reimbursement to Department of such disallowed costs shall be paid by Contractor from funds which were not provided or otherwise made available to Contractor under this contract E Contractor shall take such action to facilitate the performance of such audit or audits conducted pursuant to this Section 19 as Department may require of Contractor SECTION 20 ENVIRONMENTAL CLEARANCE REQUIREMENTS A Contractor understands and agrees that by the execution of this contract Contractor shall assume the responsibilities for environmental review, decision-maing, and other action which would otherwise apply to Department under Section 5304(f) of the Act, in accordance with and to the extent specified in 24 C F R Part 58 In accordance with Section 58 77(b) of such regulations, Contractor further understands and agrees that Contractor shall handle inquiries and complaints from persons and agencies seeking redress in relation to environmental reviews covered by approved certifications B Contractor shall complete a written Finding of Categorical Exclusion, as applicable under 24 C F R Section 58 35 (a), which cites the subsection of Section 58 35 (a) by which the activities or projects funded under this contract are categorically excluded from the National Environmental Policy Act requirements of 24 C F R Part 58 Contractor shall then publish a Notice of Intent to Request Release of Funds in the manner prescribed in 24 C F R Section 58 43 Contractor shall provide the public with at least seven (7) calendar days to comment on the Notice following its publication date Finally. Contractor shall concurrently submit to Department the following documents 1) a Request for Release of Funds form, 2) the written Finding of Categorical Exclusion described above, and 3) a Publisher's Affadavit for the Notice of Intent to Request Release of Funds notice Upon receipt of such documents, Department must allow a 15 calendar days comments period to expire before it can formally release any project funds which are subject to the environmental review regulations Contractor must comply with all other applicable environmental requirements as specified in Exhibit C of this contract Contractor shall document its compliance with such other requirements in its environmental review file SECTION 21 LABOR STANDARDS A All laborers and mechanics (except laborers and mechanics employed by a State or local government acting as the principal contractor on the project) employed in the rehabilitation of a project assisted under the Rental Reha- bilitation Program that contains 12 or more dwelling units shall be paid wages at rates not less than those prevailing on similar rehabilitation in the locality, if such a rate category exists, or the appropriate rate as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U S C 276a-276a-5), and contracts involving their employment shall be PAGE 10 OF 11 subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U S C 327-333) Contractors shall comply with regulations issued under these Acts and with other Federal laws and regu- lations pertaining to labor standards as applicable B Contractor shall include the substance of this Section 21 in all subcon- tracts and shall require Owners to comply with said labor standards, if applicable, as a precondition to receiving rental rehabilitation funds under this contract SECTION 22 ORAL AND WRITTEN AGREEMENTS A All oral and written agreements between the parties to this contract relating to the subject matter of this contract that were made prior to the execution of this contract have been reduced to writing and are contained in this contract B The attachments enumerated and denominated below are hereby made a part of this contract, and constitute promised performances by Contractor in accordance with Section 3 of this contract 1 Exhibit A. Performance Statement, 4 Pages 2 Exhibit B, Certifications, 1 Page 3 Exhibit C, Applicable Laws and Regulations, 2 Pages 4 Exhibit D, Schedule for Committing Rental Rehabilitation Funds, 1 Page WITNESS OUR HANDS EFFECTIVE APRIL 15, 1985 APPROVED AS TO FORM CITY ATTORNEY CITY OF DENTON, TEXAS H Chris Hartung By rn mivn City Manager City of Denton Approved and accepted on behalf of the Texas Department of Community Affairs Rafael Quintanilla, Executive Director Texas Department of Community Affairs This contract is not effective unless signed by the Executive Director of the Texas Department of Community Affairs or by his authorized designee r PAGE 11 OF 11 Exhibit A PERtORMANCE STATEMENT Contractor shall use rental rehabilitation funds to help support the rehabilitation of privately owned real property to be used for primarily residential rental purposes in order to help provide affordable, standard housing for lower income families and to increase the availability of housing units for the use of voucher and certificate holders under Section 8 of the United States Housing ALt of 1937 Contractor shall carry out eligible rehabilitation activities under the Texas Rental Rehabilitation Program ("TRRP") in a manner which shall comply with the requirements of this contract, including this Exhibit A Section I REHABILITATION OF PRIVATE PROPERTY Contractor shall rehabilitate substandard rental units by providing rental rehabilitation funds to each Owner for the project specified in Owner's rental rehabilitation program application The amount of rental rehabili- tation funds for any project shall not exceed an average of $5,000 per unit, and shall not exceed 50% of the total cost of eligible rehabilitation costs with respect to the project unless Contractor applies for, and Department approves in writing, a higher amount for a project The minimum level of rehabilitation of projects to be required for participation in the rental rehabilitation program shall not be less than an average of $600 per dwelling unit per project for eligible rehabilitation costs For purposes of this contract, including this Exhibit A, "Owner" means one or more individuals, corporations, partnerships, or other legal entities that hold valid legal title to the property to be rehabilitated Section II LOWER INCOME BENEFIT At least 70% of the amount of rental rehabilitation funds provided under this contract shall be used for the benefit of lower income families For purposes of this Section II, benefit for lower income families will be considered to occur only where dwelling units in projects rehabilitated with rental rehabilitation funds are initially occupied by such families after rehabilitation "Lower income family" means a lower income family as defined in 24 CFR 813 102 Section III PRIMARILY RESIDENTIAL RENTAL USE Rental rehabilitation funds shall only be used to rehabilitate projects to be used for primarily residential rental uses For purposes of this Section III, a project is used for primarily residential rental purposes if at least 51% of the rentable floor space of the project is used for residential rental purposes after rehabilitdtion, except that in the case of a two-unit building, at least 50% of the rentable floor space after rehabilitation must be used for residential rental purposes Section IV CORRECTION OF SUBSTANDARD CONDITIONS Rental rehabilitation funds shall only be used to rehabilitate projects PAGE 1 OF 4 which ~ ire rehabilitation, have one or more substandard conditions After rehabilitation, each unit in the project must, dt a minimum, meet Lhe Section D Housing Quality Standards for Existing Housing contained in 24 CFR 882 109 for purposes of Lhis See Lion IV substandard conditions are those housing conditions that do not meet applicable State or local housing Lodes or do not meet the Section 8 Housing Quality Standards Section V SELECTION OF ELIGIBLF NEIGHBORHOODS Rental rehabilitation funds shall only be used to assist the rehabilitation of projects located in neighborhoods (a) where the median income does not exceed 80% of the median income for the area, and (b) which meet the rent affordability standard set forth in 24 CFR 511 10(d)(2) Section VI DISPLACEMENT OF IOWER INCOME FAMILIES Rental rehabilitation funds may be used to rehabilitate structures only if the rehabilitation of the structure will not cause Lhe displacement of very low-income families by families who are not very low-income families Displacement results if a lower income family is forced to move premariently from a project as a direct consequence of rehabilitation assisted under this contract A lower income family may not be displaced without financial and advisory assistance sufficient to enable the family to obtain decent, safe, and sanitary housing at an affordable rent (as defined in 24 CFR 511 10(h)(1)(ii)(B)) Section VII ADOPTION Or TENANT ASSISTANCE POLICY Before the establishment of a program account on behalf of Contractor under the C/MI system is authorized by Department, Contractor shall adopt and submit to Department a written tenant assistance policy (which shall be made available to the public upon request) concerning displacement relocation assistance, and other assistance to tenants who reside or will reside in projects to be rehabilitated with funds provided under this contract The tenant assistance policy shall be developed in acLordance with the guidelines specified in 24 CFR 511 10(h)(2) and shall be subject to Department's approval Section VIII PROHIBITION AGAINST CONDOMINIUM CONVERSION Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabilitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its provisions, with the Owner under which the Owner agrees not to convert the units in the project rehabilitated with rental rehabilitation funds to condominium ownership or any form of cooperative ownership not eligible to receive rental rehabilitation funds (as provided in 24 CFR 511 10(c)) for at least ten (10) years beginning on the date on which the rehabilitation of the units in the project is completed Section IX DISCRIMINATION AGAINST SUBS1017ED TENANTS Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabilitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its PAGL 2 OF 4 provisic„i~, with the Owner under which the Owner agrees not to discriminate against prospective tenants on the basis of their receipt of or eligibility for housing assistance under any Federal, State or local housing assistance program or, except for a housing project for elderly persons, on the basis that the tenants have a minor child or children who will be residing with them, for at least ten (10) years beginning on the date on which the rehabilitation of the units in the project is completed Section X USE OF RENTAL RLHABILITATION FUNDS FOR HOUSING FOR FAMIIIES Contractor shall ensure that an equitable share of rental rehabilitation funds provided under this contract will be used to assist in the provision of housing designed for occupancy by families, including large families with children This requirement will be deemed satisfied if at least 70% of the rental rehabilitation funds made available to Contractor is used to rehabilitate units containing two or more bedrooms Section XI PRIORITY FOR USE OF RENTAL REHABILITATION FUNDS Contractor shall ensure that a priority will be given to rehabilitating projects containing units with substandard conditions that are occupied by very low-income families before rehabilitation Sec Lion XII NONDISCRIMINATION AND EQUAL OPPORTUNITY Contractor agrees that rental rehabilitation funds will be made available in conformity with the nondiscrimination and equal opportunity requirements contained in applicable laws and regulations which are set out in Sections I and III of Exhibit C of this contract Failure of Contractor to meet the requirements of such applicable laws and regulations will result in appropriate corrective or remedial action as provided for in this contract, in addition to any other sanctions authorized by law Section XIII AFFIRMATIVE MARKETING OF UNITS A Before the establishment of a program account on behalf of Contractor under the C/MI system is authorized by Department, Contractor shall adopt and submit to Department written procedures and requirements for affirmatively marketing units in rehabilitated projects through the provisions of information regarding the availability of units that are vacant afar rehabilitation or that later become vacant Affirmative marketinq steps consist of good faith efforts to provide information and otherwise to attract eligible persons from all racial, ethnic and gender groups in the housing market area to the available housing At a minimum, the affirmative marketing requirements and procedures adopted must be in conformity with 24 CIR 511 10(m)(2)(i) Contractor shall establish assessment procedures and criteria for its affirmative marketing program and shall annually assess such program to determine whether good faith efforts have been made to carry out such procedures and requirements, what objectives have been met, and what corrective actions are required D Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabilitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its provisions, with the Owner under which the Owner agrees to PAGE 3 OF 4 comply with the conditions of Contractor's affirmative marketing requirements and procedures adopted under subsection (A) of this Section XIII that Shall be applicable for a period of seven years beginning on the date on whieh all the units in the project are completed Section XIV SLLECTION OF PROPOSALS AND EVIDENCE 01 FINANCIAL FEASIBILITY Before the establishment of d program account on behalf of Contractor under the C/MI system is duLhorized by Department, Contractor shall develop and submit to Department written standards and procedures governing Contractor's selection of proposals of Owners which include but are not limited to, (1) the extent to which the proposal represents the efficient use of rental rehabilitation amounts and voucher and certificate assistance in connection therewith, and (it) the extent to which the dwelling units involved will be adequately maintained and operated with rents at the levels proposed Moreover, before selection of a proposal by Contractor occurs, Contractor must have evidence demonstrating the financial feasibility of the proposed rental rehabilitation project, including the availability of non-Federal governmental and private resources PAGE 4 OF 4 Exhibit D CERTIFICATIONS (Name) (Title) (City/County CERTIFY WITH RESPECT TO THE EXPENDITURE OF FUNDS PROVIDED UNDER THIS CONTRACT BY THE , THAT (City/County) 1 It will not subject projects rehabilitated with rental rehabilitation monies to State or local rent control unless the rent control requirements or agreements (1) were entered into under State law or local ordinance of gener- al applicability that was enacted and in effect in the jurisdiction before November 30, 1983, and (ii) apply generally to projects not assisted under the Rental Rehabilitation Program 2 It will not provide rental rehabilitation grant amounts to projects assisted, or for which a commitment for assistance has been entered into, under the United States Housing Act of 1937 (except projects assisted under the Rental Rehabilitation Program or the Section 8 Existing Housing Program under 24 CFR Part 882, Subparts A and a), or projects assisted under Sections 221(d)(3) or 236 of the National Housing Act, or Section 202 of the housing Act of 1959 3 It will not employ, engage the services of, award contracts to, or fund any contractors or subcontractors during any period of debarment, suspension or placement in ineligibility status, as provided by 24 CFR 24 4 It shall not displace lower income families without financial and • advisory assistance sufficient to enable the family to obtain decent, safe, and sanitary housing at an affordable rent 5 It will adopt appropriate procedures and requirements for affirmatively marketing units in rehabilitated projects which must include those elements listed in 24 CFR 511 10(m)(2)(i)(A) through (E) 6 It will enter into legally enforceable agreements with owners of selected projects under which the Owner agrees to comply with the prohibition against condominium conversion, as set forth in Section VIII of Exhibit A. the prohibition against discrimination, as set forth in Section IX of Exhibit A, and the conditions of Contractor's affirmative marketing requirements and pro- cedures, as adopted pursuant to Section XIII of Exhibit A Date v Name of Authorized Signator for Contractor Name of Contractor PAGE 1 OF I Lxhibit C THE APPIICABLE LAWS AND REGULATIONS Contractor shall comply with the Act specified in Section 3 of this contract and with the rules and regulations promulgated thereunder pertaining to the Rental Rehabilitation Progrdm in 24 C F R Part 511, as amended, the OMB Circulars and the Management Standards specified in Section 6 of this contract, and with all other federal, state, and local laws and regulations applicable to the activities and performances rendered by Contractor under this contract including but not limited to the laws, and the regulations promulgated thereunder specified in Sections I through VI of this Exhibit L I AIL RIGHTS Title VI of the Civil Rights Act of 1964, (42 U S C Sec 2000d et seq 24 C F R Part 1, "Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban Development - Effectuation of litle VI of the Civil Rights Act of 1964", Title VIII of the Civil Rights Act of 1968, "The Fair Housing Act of 1968" (42 U S C Sec 3601 et seq Executive Order 11063, as amended by Executive Order 12249, and 24 C F R Part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063 " The failure or refusal of Contractor to comply with the requirements of Executive Order 11063 or 24 C F R Part 107 shall be a proper basis for the imposition of sanctions specified in 24 C F R 107 60, The Age Discrimination Act of 1975 (42 U S C Sec 6101 et seq Section 504 of the Rehabilitation Act of 1973 (29 U S C Sec 794) and "Nondiscrimination Based on Handicap in Federally-Assisted Programs and Activities of the Department of Housing and Urban Development," 48 Fed Reg 22470 (May 18, 1983) and 48 Fed Reg 27528 (June 15, 1983), and Section 502 of the Rehabilitation Act of 1973 (29 U S C Sec 792), and The Architectural Barriers Act of 1968 (42 U S C Sec 4151 et seq ) II LABOR STANDARDS The Davis-Bacon Act, as amended (40 U S C Secs 216a 276a-5) as applicable The Contract Work Hours and Safety Standards Act (40 U S C 327 et seq ) as applicable * *See Section 21 of this contract III EMPLOYMENT OPPORTUNITIES Section 3 of the Housing and Urban Development Act of 1968 (12 U S C Sec ilOlu) Executive Order 11246 and the regulations issued pursuant thereto (41 C F R Chapter 60) PAGE 1 OE 2 Executive Urders 11625 1243?, and 12138 IV L1"-BASED PAINT Lead-Based Paint Poisoning Prevention Act (42 U S L Secs 4821-4846) and implementing regulations at 24 C F R 35 V ENVIRONMENTAL SFANOARDS AND HISTORIC PRESERVATION Section 104(f) of the Housing and Community Development Act of 1914 and 24 C F R Part 58, as amended National Environmental Policy Act of 1969 (42 U S C Sec 4321 et seq ) The National Historic Preservation Act of 1966 (16 U S C Sec 470 et seq ) as amended, particularly Section 106 (16 U S C Sec 470f), Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971 (36 Fed Reg 8921), particularly Section 2(c), The Reservoir Salvage Act of 1960 (16 U S C Sec 469 et seq particularly Section 3 (16 U S C Sec 469a-1), as amended by the Archeological and Historic Preservation Act of 1974, Flood Disaster Protection Act of 1973, (42 U S C Sec 4001 et seq ) as amended, particularly Sections 102(a) and 202(a) (42 U S C Sec 4012a(a) and Section 4106(a)), Executive Order 11988, Floodplain Management, May 24, 1977 (42 Fed Reg 26951), particularly Section 2(a), Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 Fed Reg 26961), particularly Sections 2 and 5, The Coastal Zone Management Act of 1972, (16 U S C Sec 1451 et seq ) as amended, particularly Section 307(c) and (d) (16 U S C Sec 1456(c) and (d)), The Safe Drinking Water Act of 1974, (42 U S C Sec 201, 300(f) et seq and (21 U S C Sec 349) as amended, particularly Section 1424(e) (42 U S C Sec 300h-303(e)), The Endangered Species Act of 1973, (16 U S C Sec 1531 et seq ) as amended, particularly Section 7 (16 U S C Sec 1536), The Wild and Scenic Rivers Act of 1968, (16 U S C Sec 1271 et seq ) as amended, particularly Section 7(b) and (c) (16 U S C Sec 1278(b) and (c)), The Clean Air Act (42 U S C Sec 1401 et seq ) as amended, particularly Section 176(c) and (d) (42 U S C Sec 7506(c) and (d)), and, 24 C F R Part 51, Environmental Criteria and Standards VI USE OF DEBARRED, SUSPENDED OR INELIGIBLE CONTRACTORS 24 CFR Part 24, Debarment, Suspension and Ineligibility of Contractors and Grantees, Administrative Sanctions PAGE 2 OF 2 Exhibit 0 SCHEDULE FOR COMMITTING RENTAL REHABILITATION FUNDS Contractor shall have rental rehabilitation funds received under this contract committed to specific local projects in accordance with the timetable set out below "Commit to specific local projects" means a legally binding agreement between Contractor and an Owner under which the Contractor agrees to provide rental rehabilitation funds to the Owner for identifiable rehabilitation project that can reasonably be expected to start construction within 90 days of the agreement and the Owner agrees to start construction within that period Upon written request by Contractor, Department may, at its sole option and in its sole discretion, alter and amend the schedule for committing rental rehabilitation funds by written letter of notification This notification procedure shall be an exception to Section 16 of this contract requiring all amendments to be in writing and executed by both parties thereto 2nd Quarter FFY 1985 January-March -0- 3rd Quarter FFY 1985 April-June $36,750 00 $105,000 00 4th Quarter FFY 1985 July-September $73,500 00 1st Quarter FFY 1986 October-December Page 1 of 1