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
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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
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