20-843ORDINANCE NO.20-843
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO
E)acuTE A FUNDING AGREEMENT BETWEEN THE CITY AND HABITAT FOR
HUMANITY OF DENTON COUNTY TO PROVIDE COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS FOR ACQUISITION OF A MINIMUM OF FOUR SINGLE-
FAMILY LOTS; AUTHORIZING TEn EXPENDITURE OF FUNDS NOT TO EXCEED
$220,000.00; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City received funds from the U.S. Department of Housing and Urban
Development under the Housing and Community Development Act of 1974, as amended; and
WHEREAS, the City Council approved the 2019 Action Plan for Housing and
Community Development which includes an authorized budget expenditure of funds for land
acquisition for Habitat for Humanity of Denton County; and
WHEREAS, the Habitat for Humanity has developed a program to assist low and
moderate-income people with affordable housing; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement
for affordable housing to provide much needed services for Denton residents; and
WHEREAS, CITY has designated the Community Development Division as the division
responsible for the administration of this Agreement and all matters pertaining thereto; NOW,
THEREFORE,
TFn couNcn OF Tm CITY OF DENrON HEREBY ORDAINS:
SECTION 1. The findings and recitations in the preamble of this ordinance are
incorporated herein by reference as true and as if fully set forth in the body of this ordinance.
SECTION 2. The City Manager is hereby authorized to execute the attached Agreement
between the City of Denton and Habitat for Humanity of Denton County to provide affordable
housing noted therein.
SECTION 3. The City Council hereby authorizes the City Manager to expend funds in
the manner and amount specified in the Agreement, not to exceed $220,000.00, and to take any
other actions necessary to complete the City’s obligations under the Agreement.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval
The motion to approv9 this ordinance
„„nd,d py 4k£zy a& r &a 3the following vote’n -
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, the ordinance was passed and
and
approved by
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Nay Abstain Absent
Mayor Chris Watts:
Gerard Hudspeth, District 1 :
Keely G. Briggs, District 2:
Jesse Davis, District 3 :
John Ryan, District 4:
Deb Armintor, At Large Place 5
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED thi, the a_ day
WATTS
ATTEST :
ROSA RIOS, CITY SECRETARY
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>/gb:>a . ZA aBY:
APPROVED AS TO LEGAL FORM
AARON LEAL, CITY ATTORNEY
AGREEMENT BETWEEN THE CITY OF DENTON
AND HABITAT FOR HUMANITY OF DENTON COUNTY
This Agreement is hereby entered into by and between the City of Denton, a Texas municipal
corporation, acting by and through its City Manager, pursuant to Ordinance 19-1146, hereinafter
referred to as CITY, and Habitat of Habitat of Denton County, 1721 N. Carroll Blvd., Denton
Texas, a Texas non-profit corporation, hereinafter referred to as SUBRECIPIENT.
WHEREAS, CITY has received certain funds from the U.S. Department of Housing and Urban
Development (“HUD”) under Title I of the Housing and Community Development Act of 1974,
as amended; and
WHEREAS, the City Council approved the 2019 Action Plan for Housing and Community
Development which includes an authorized budget expenditure of funds for land acquisition for
Habitat for Humanity of Denton County; and
WHEREAS, the Habitat for Humanity has developed a program to assist low and moderate-
income people with affordable housing; and
WHEREAS, the City Council deems it in the public interest to enter into an agreement for
affordable housing to provide much needed services for Denton residents;
WHEREAS, CITY has designated the Community Development Division as the division
responsible for the administration of this Agreement and all matters pertaining thereto; and
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound, to the
mutual obligations and to the performance and accomplishment of the conditions hereinafter
described.
1. TERM
This Agreement shall commence on or as of March 1, 2020, and shall terminate on February 28,
2022, unless sooner terminated in accordance with Section 25 “Termination.”
2. RESPONSIBILITIES
The CITY’s Community Development Manager will be CITY’s representative responsible
for the administration of this Agreement.
SUBRECIPIENT hereby accepts the responsibility for the performance of all services and
activities described in the Scope of Services attached hereto as Exhibit A, and incorporated
herein by reference, in a satisfactory and efficient manner as determined by CITY, in
accordance with the terms herein. CITY will consider SUBRECIPIENT’s executive officer
to be SUBRECIPIENT’s representative responsible for the management of all contractual
matters pertaining hereto, unless written notification to the contrary is received from
SUBRECIPIENT and approved by CITY.
SUBRECIPIENT certifies that the activities carried out with Community Development Block
Grant (“CDBG”) funds shall meet the CDBG program’s National Objective of benefit to low
and moderate-income persons Beneficiaries of the activities to be provided hereunder must
reside in the City of Denton and. SUBRECIPIENT shall provide services to persons whose
income is equal to or lower than 80% of the area median income of the Dallas standard
A.
B.
C
metropolitan statistical area. To accomplish this, the SUBRECIPIENT shall use the current
applicable income limits published by HUD for lower income housing assistance under
Section 8 of the United States Housing Act of 1937, and updated by HUD annually, herein
attached as Exhibit C. SUBRECIPIENT must use the most current HUD Income limits
Income eligibility shall be determined by the sum of the gross income of all individuals
residing in the household. Services must be provided directly to or on behalf of specific
identified eligible clients. Eligibility documentation must be included in each client’s file
and updated annually, or services must be provided to a clientele that is within a “presumed
benefit” category as specified in 24 CFR 570.208.
SUBRECIPIENT must demonstrate it has made reasonable attempts to reduce the isolation
of income groups within geographic areas by expanding and disbursing affordable housing
throughout the City of Denton. When selecting residential lots for purchase, preference will
be given to lots that promote the spatial de-concentration of affordable housing opportunities.
SUBRECIPIENT may also demonstrates that there are limited options for geographic de-
concentration due to limited availability of affordable parcels of land and homeowner’s
choice for location of home.
D.
3. OBLIGATIONS
In consideration of the receipt of funds from HUD, CITY agrees to the following terms and
conditions :
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred pursuant to
and in accordance with the Project Budget attached hereto as Exhibit B and the Scope of
Services attached as Exhibit A, and incorporated herein by reference. Notwithstanding any
other provision of the Agreement, the total of all payments and other obligations made or
incurred by CITY hereunder shall not exceed the sum of Two-Hundred Twenty Thousand
Dollars ($220,000.00)
B. Measure of Liability. In consideration of full and satisfactory services and activities
hereunder by SUBRECIPIENT and receipt of a requisition for payment with appropriate
documentation of expenditures, CITY shall make payments to SUBRECIPIENT based on the
Budget in Exhibit B, subject to the limitations and provisions set forth in this Section and
Section 7 of this Agreement. Payments may be contingent upon certification of the
SUBRECIPIENT’s financial management system in accordance with the standards specified
in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards.
(1) The parties expressly understand and agree that CITY’s obligations under this Section
are contingent upon the actual receipt of adequate CDBG funds to meet CITY’s
liabilities under this Agreement. If adequate funds are not available to make payments
under this Agreement, CITY shall notify SUBRECIPIENT in writing within a
reasonable time after such fact has been determined. CITY may, at its option, either
reduce the amount of its liability, or terminate the Agreement. If funds eligible for use
for purposes of this Agreement are reduced, CITY shall not be liable for further
payments due to SUBRECIPIENT under this Agreement.
(2) it is expressly understood that this Agreement in no way obligates the General Fund
or any other monies or credits of the City of Denton.
(3) CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed, or is subject to payment or reimbursement, from
any other source;
Page 2
(b) was incurred prior to the beginning date or after the ending date specified in
Section 1 ;
(c) is not in strict accordance with the terms of this Agreement, including all
exhibits attached hereto;
(d) has not been billed to CITY within 90 calendar days following billing to
SUBRECIPIENT, or termination of the Agreement, whichever date is earlier;
or
(e) is not an allowable cost as defined by Section 10 of this Agreement or the
project budget.
(4) CITY shall not be liable for any cost or portion thereof which is incurred with respect
to any activity of SUBRECIPIENT requiring prior written authorization from CITY,
or after CITY has requested that SUBRECIPIENT furnish data concerning such
action prior to proceeding further, unless and until CITY advises SUBRECIPIENT to
proceed.
(5) CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or services.
(6) Funding not expended within the term of the agreement of January 31, 2022 will
revert to the City of Denton (=DBG budget for use on alternative projects.
C.SUBRECIPIENT’S Obligations. In consideration of the receipt of funds from the
CITY, the SUBRECIPIENT agrees to the following terms and conditions:
(1) Two-Hundred and Twenty Thousand Dollars ($220,000) may be paid to
SUBRECIPIENT by CITY, and the only expenditures reimbursed from these funds
shall be those in accordance with the Project Budget in Exhibit B, for those expenses
listed in the Scope of Services as provided herein. SUBRECIPIENT shall not utilize
these funds for any other purpose.
(2) SUBRECIPIENT will establish, operate, and maintain an account system for these
funds that will allow for a tracing of funds and a review of the financial status of the
project. The system will be based on generally accepted accounting principles as
recognized by the American Institute of Certified Public Accountants.
(3) SUBRECIPIENT will permit authorized officials of the City to review its books at
any trrne.
(4) SUBRECIPIENT will reduce to writing all of its rules, regulations, and policies and
file a copy with CITY’s Community Development Office along with any
amendments, additions, or revisions upon request.
(5) SUBRECIPIENT will not enter into any contracts that would encumber CITY funds
for a period that would extend beyond the term of this Agreement.
(6) SUBRECIPIENT will promptly pay all bills when submitted unless there is a
discrepancy in a bill; any errors or discrepancies in bills shall be promptly reported to
CITY’s Community Development Division for further direction.
(7) SUBRECIPIENT will appoint a representative who will be available to meet with
CITY officials when requested.
(8) SUBRECIPIENT will indemnify and hold harmless CITY, its officers, and
employees, from any and all claims and suits arising out of the activities of
SUBRECIPIENT, its employees, and/or contractors.
(9) SUBRECIPIENT will submit to CITY copies of year-end audited financial
statements
Page 3
4. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS
SUBRECIPIENT understands that funds provided to it pursuant to this Agreement are funds
which have been made available to CITY by the Federal Government (U.S. Department of
Housing and Urban Development) under the Housing and Community Development Act of
1974, as amended, in accordance with an approved Grant Application and specific
assurances. Accordingly, SUBRECIPIENT assures and certifies that it will comply with the
requirements of the Housing and Community Development Act of 1974 (P.L. 93-383) as
amended and with regulations promulgated thereunder and codified at 24 CFR 570. The
foregoing is in no way meant to constitute a complete compilation of all duties imposed upon
SUBRECIPIENT by law or administrative ruling or to narrow the standards which
SUBRECIPIENT must follow.
SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of Texas,
and ordinances of the City of Denton.
SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements of 2
CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards.
SUBRECIPIENT further agrees and certifies that if the regulations and issuances
promulgated pursuant to the Act are amended or revised, it shall comply with them, or notify
CITY, as provided in Section 23 of this Agreement.
SUBRECIPIENT is required to comply with the applicable uniform administrative
requirements as described in 24 CFR 570.502, 570.505, and 24 CFR 570 subpart K with the
exceptions noted below:
(1) SUBRECIPIENT does not assume CITY’S environmental responsibilities
described at CFR 570.604; and
(2) SUBRECIPIENT does not assume the CITY’s responsibility for initiating the
review process under the provisions of 24 CFR Part 52.
SUBRECIPIENT shall give the CITY, HUD, the Comptroller General of the United States,
the Auditor of the State of Texas, and any authorized representative, access to and the right to
reproduce all records belonging to or in use by SUBRECIPIENT agrees to abide by the
conditions of this Agreement and, and all other applicable Federal, state, and local laws and
regulations such as the requirements of the Secretary of Labor in accordance with the Davis-
Bacon Act as amended, the provisions of the Contract Work Hours Safety Standards Act, the
Copeland “Anti-Kickback” Act (40 U.S.C. 276a-276a-5; 40 USC 327 and 40 USC 276c)
pertaining to the performance of this Agreement.
SUBRECIPIENT will work with CITY to obtain and maintain documentation of compliance.
Upon written request by the CITY, SUBRECIPIENT will obtain the services of consultant to
monitor the contractor’s compliance with these requirements.
SUBRECIPIENT agrees to comply with the provisions of Section 3, the regulations set forth
in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of
this Agreement and agrees that these provisions shall also be binding on any of the
SUBRECIPIENT’S subcontractors. SUBRECIPIENT certifies that no contractual or other
disability exists which would prevent compliance with these requirements. SUBRECIPIENT
further agrees to include a statement in all subcontracts requiring compliance with Section 3
and requiring subcontractors, to the greatest extent feasible, to provide opportunities for
training and employment to low and moderate-income individuals that are residents of the
project area. Upon written request of the CITY, SUBRECIPIENT will obtain the services of
a consultant to monitor the general contractor’s compliance with the Section 3 requirements.
A.
B.
C.
D.
E
F.
G.
H
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1.SUBRECIPIENT shall not use funding under this Agreement to influence the outcome of
elections or the passage or defeat of any legislative measures. SUBRECIPIENT understands
that fUnds provided to it pursuant to this Agreement are funds which have been made available
to CITY by the Federal Government (U.S. Department of Housing and Urban Development)
under the Housing and CommuniV Development Act of 1974, as amended, in accordance with
an approved Grant Application and specific assurances. Accordingly, SUBRECIPIENT assures
and certifies that it will comply with the requirements of the Housing and Community
Development Act of 1974 (P.L. 93-383) as amended and with regulations promulgated
thereunder and codified at 24 CFR 570. The foregoing is in no way meant to constitute a
complete compilation of all duties imposed upon SUBRECIPIENT by law or administrative
ruling, or to narrow the standards which SUBRECIPIENT must follow.
SUBRECIPIENT will comply with the Federal procurement standards at 2 CFR 200 Subpart D
– Post Federal Award Requirements.
SUBRECIPIENT Agrees to comply with (a) the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at
49 CFR Part 24 and 24 CFR 570.606(b): (b) the requirements of 24 CFR 570.606(c) governing
the Residential Anti-displacement and Relocation Assistance Plan under section 104(d) of the
HCD Act; and 9(c) the requirements in 24 CFR 570.606(d) governing optional relocation
policies. SUBRECIPIENT shall provide relocation assistance to displaced persons as defined
by 24 CFR 570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation,
demolition or conversion for a CDBG-assisted project.
J.
K.
5. REPRESENTATIONS
SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to any
proper, appropriate, and official motion, resolution, or action passed or taken, to enter into
this Agreement.
The person or persons signing and executing this Agreement on behalf of SUBRECIPIENT
do hereby warrant and guarantee that he, she, or they have been fully authorized by
SUBRECIPIENT to execute this Agreement on behalf of SUBRECIPIENT and to validly
and legally bind SUBRECIPIENT to all terms, performances, and provisions herein set forth.
CITY shall have the right, at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either
SUBRECIPIENT or the person signing the Agreement to enter into this Agreement.
SUBRE(:IPIENT is liable to CITY for any money it has received from CITY for
performance of the provisions of this Agreement if CITY has suspended or terminated this
Agreement for the reasons enumerated in this Section.
SUBRECIPIENT agrees that the funds and resources provided under the terms of this
Agreement will in no way be substituted for funds and resources from other sources, nor in
any way serve to reduce the resources, services, or other benefits which would have been
available to, or provided through, SUBRECIPIENT had this Agreement not been executed.
A.
B.
C.
D.
6. PERFORMANCE BY SUBRECIPIENT
SUBRECIPIENT will provide, oversee, administer, and carry out activities and services set out
in Exhibit A, utilizing the funds described in Exhibit B, deemed by both parties to be necessary
and sufficient payment for full and satisfactory performance of the program, as determined solely
by CITY and in accordance with all other terms, provisions, and requirements of this Agreement.
Page 5
No modifications or alterations may be made in the Scope of Services or Budget without the
prior written approval of the CITY’s Community Development Manager.
7. PAYMENTS
A. Payments to SUBRECIPIENT. The CITY shall pay to SUBRECIPIENT a maximum
amount of money not to exceed Two-Hundred and Twenty Thousand Dollars ($220,000) for
activities carried out under this Agreement. The CITY will pay these funds on a
reimbursement basis to SUBRECIPIENT within twenty days after CITY has received
supporting documentation of eligible expenditures. Documentation of expenditures must be
submitted to the Community Development Division by dates required by Community
Development. SUBRECIPIENT’s failure to provide information on a timely basis may
jeopardize present or fbture funding. The project must be completed, and all payments
requested on or before January 31, 2022. No additional payments will be made if the work is
not completed and the payment request(s) with appropriate documentation is not received by
January 31, 2022.
B. Funds are to be used for the sole purpose of carry out the activities described in the Scope of
Services in Exhibit A and based on the Budget in Exhibit B
C. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of CITY’s
request, any sum of money which has been paid by CITY and which CITY at any time
thereafter determines:
(1) has resulted in overpayment to SUBRECIPIENT; or
(2) has not been spent strictly in accordance with the terms of this Agreement; or
(3) is not supported by adequate documentation to fully justify the expenditure
D. Disallowed Costs. Upon termination of this Agreement, should any expense or charge for
which payment has been made be subsequently disallowed or disapproved as a result of any
auditing or monitoring by CITY, the U.S. Department of Housing and Urban Development,
or any other Federal agency, SUBRECIPIENT will refund such amount to CITY within ten
working days of a written notice to SUBRECIPIENT, which specifies the amount
disallowed. Refunds of disallowed costs may not be made from these or any funds received
from or through CITY
E. Reversion of Assets
(1) SUBRECIPIENT, upon expiration of this Agreement, shall transfer to the CITY any
funds on hand at the time of expiration and any accounts receivable attributable to the
use of funds
(2) The reversion of these financial assets shall be in addition to any other remedy
available to CITY either at law or in equity for breach of this Agreement.
F. Obligation of Funds.
(1) in the event that actual expenditure rates deviate from SUBRECIPIENT’s provision
of a corresponding level of performance, as specified in Exhibit A, CITY hereby
reserves the right to reappropriate or recapture any such under expended funds.
(2) if CITY finds that SUBRECIPIENT is unwilling and/or unable to comply with any of
the terms of this Agreement, CITY may require a refund of any and all money
expended pursuant to this Agreement by SUBRECIPIENT, as well as any remaining
unexpended funds which shall be refunded to CITY within ten working days of a
written notice to SUBRECIPIENT to revert these financial assets.
Page 6
Contract Close Out. SUBRECIPIENT shall submit a final expenditure report, for the time period
covered by the last invoice requesting reimbursement of funds under this Agreement, within 15
working days following the close of the Agreement period.
8. WARRANTIES
SUBRECIPIENT represents and warrants that:
A. All information, reports, and data heretofore or hereafter requested by CITY and furnished to
CITY, are complete and accurate as of the date shown on the information, data, or report,
and, since that date, have not undergone any significant change without written notice to
CITY
B. Any supporting financial statements heretofore requested by CITY and furnished to CITY,
are complete, accurate, and fairly reflect the financial condition of SUBRECIPIENT on the
date shown on said report, and the results of the operation for the period covered by the
report, and that since said date, there has been no material change, adverse or otherwise, in
the financial condition of SUBRECIPIENT
C. No litigation or legal proceedings are presently pending or threatened against the
SUBRECIPIENT.
D. None of the provisions herein contravene or are in conflict with the authority under which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or
agreement of SUBRECIPIENT.
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments hereunder
and has taken all necessary action to authorize such acceptance under the terms and
conditions of this Agreement.
F. None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any
character, except for current taxes not delinquent, except as shown in the financial statements
furnished by SUBRECIPIENT to CITY.
G. Each of these representations and warranties shall be continuing and shall be deemed to have
been repeated by the submission of each request for payment.
H. SUBRECIPIENT agrees to execute a lien that will be placed on the property improved with
CDBG funds. The lien will name CITY as the primary beneficiary for a period not to exceed
ten years.
9. COVENANTS
During the period of time that payment may be made hereunder and so long as any payments
remain unliquidated, SUBRECIPIENT shall not, without the prior written consent of the
Community Development Manager or her authorized representative:
(1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the
assets of SUBRECIPIENT now owned or hereafter acquired by it, or permit any pre-
existing mortgages, liens, or other encumbrances to remain on, or attached to, any
assets of SUBRECIPIENT which are allocated to the performance of this Agreement
and with respect to which CITY has ownership hereunder.
(2) Sell, assign, pledge, transfer, or otherwise dispose of accounts receivables, notes, or
claims for money due or to become due.
(3) Make any advance or loan to, or incur any liability for any other firm, person, entity,
or corporation as guarantor, surety, or accommodation endorser.
(4) Sell, donate, loan, or transfer any equipment or item of personal property purchased
with funds paid to SUBRECIPIENT by CITY, unless CITY authorizes such transfer.
A
Page 7
(5) Enter into any subcontracts with any agency or individual in the performance of this
Agreement without the written consent of CITY prior to the execution of such an
agreement or subcontract.
SUBRECIPIENT agrees, upon written request by CITY, to require its employees to attend
training sessions sponsored by the Community Development Division.
B.
10. ALLOWABLE COSTS
Costs shall be considered allowable only if incurred directly and specifically in the
performance of and in compliance with this Agreement and in conformance with the
standards and provisions of Exhibits A and B.
CITY shall not be obligated to any third parties, including any contractors or subcontractors
of SUBRECIPIENT, and CITY funds shall not be used to pay for any contract service
extending beyond the expiration of this Agreement.
Approval of SUBRECIPIENT’s Budget, Exhibit B, does not constitute prior written
approval, even though certain items may appear herein. CITY’s prior written authorization is
required in order for the following to be considered allowable costs:
(1) Any alternations, deletions, or additions to the Project Budget incorporated in Exhibit
B
(2) Any fees or payments for consultant services.
Written requests for prior approval are SUBRECIPIENT’s responsibility and shall be made
within sufficient time to permit a thorough review by CITY. SUBRECIPIENT must obtain
written approval by CITY prior to the commencement of procedures to solicit or purchase
services, equipment, or real or personal property. Any procurement or purchase which may
be approved under the terms of this Agreement must be conducted in its entirety in
accordance with the provisions of this Agreement.
A.
B.
C.
D.
11. PROGRAM INCOME
For purposes of this Agreement, Program Income means earnings of SUBRECIPIENT
realized from activities resulting from this Agreement or from SUBRECIPIENT’s
management of funding provided or received hereunder. Such earnings include, but are not
limited to, income from interest, usage or rental or lease fees, income produced from
contract-supported services of individuals or employees, or from the use or sale of equipment
or facilities of SUBRECIPIENT provided as a result of this Agreement, and payments from
clients or third parties for services rendered by SUBRECIPIENT under this Agreement.
SUBRECIPIENT shall maintain records of the receipt and disposition of Program Income in
the same manner as required for other contract funds and reported to CITY in the format
prescribed by CITY. CITY and SUBRECIPIENT agree that any fees collected for services
performed by SUBRECIPIENT shall be used for payment of costs associated with service
provision. Revenue remaining after payment of all program expenses for service provision
shall be considered Program Income and shall be subject to all the requirements of this
Agreement and the regulations found at CFR, Section 570.504.
SUBRECIPIENT shall include this Section in its entirety in all of its subcontracts which
involve other income-producing services or activities.
It is SUBRECIPIENT’s responsibility to obtain from CITY a prior determination as to
whether or not income arising directly or indirectly from this Agreement, or the performance
thereof, constitutes Program Income. SUBRECIPIENT is responsible to CITY for the
repayment of any and all amounts determined by CITY to be Program Income, unless
otherwise approved in writing by CITY.
A.
B.
C.
D
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E.
F.
Recording Program Income. The receipt and expenditure of program income as defined in
Section 570.500(a) shall be recorded as part of the financial transactions of the grant program.
Disposition of Program Income Received by Recipients.
(1) Program income received before grant closeout may be retained by the recipient if
the income is treated as additional CDBG funds subject to all applicable
requirements governing the use of CDBG funds.
(2) if the recipient chooses to retain program income, that income shall affect
withdrawals of grant funds from the U.S. Treasury as follows:
(a) Program income in the form of repayments to, or interest earned on, a revolving
fund as defined in Section 570.500(b) shall be substantially disbursed from the
fund before additional cash withdrawals are made from the U.S. Treasury for the
same activity. (This rule does not prevent a lump sum disbursement to finance
the rehabilitation of privately owned properties as provided for in Section
570.513.)
(b) Substantially all other program income shall be disbursed for eligible activities
before additional cash withdrawals are made from the U.S. Treasury.
(3) Program income on hand at the time of closeout shall continue to be subject to the
eligibility requirements in Subpart C and all other applicable provisions of this part
until it is expended.
(4) Unless otherwise provided in any grant closeout agreement, and subject to the
requirements of this section, income received after closeout shall not be governed by
the provisions of this part, except that, if at the time of closeout the recipient has
another ongoing CDBG grant received directly from HUD, funds received after
closeout shall be treated as program income of the ongoing grant program.
(5) if the recipient does not have another ongoing grant received directly from HUD at
the time of closeout, income received after closeout from the disposition of real
property or from loans outstanding at the time of closeout shall not be governed by
the provisions of this part, except that such income shall be used for activities that
meet one of the national objectives in Section 570.208 and the eligibility
requirements described in Section 105 of the Act.
12. MAINTENANCE OF RECORDS
SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate, and
complete disclosure of the status of the funds received under this Agreement, in compliance
with the provisions of Exhibit A and Exhibit B, and attached hereto, with any other
applicable Federal and State regulations establishing standards for financial management,
SUBRECIPIENT’s expenditures of funds made under this Agreement will conform to (2
CFR §200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, and the regulations at 24 CFR Part 570 as applicable including, Title 24
CFR Sections 570.502 (b), 570.504, and 570.506 as they pertain to costs incurred, audits,
program income, administration, and other activities and functions. SUBRECIPIENT’s
record system shall contain sufficient documentation to provide in detail full support and
justification for each expenditure. Nothing in this Section shall be construed to relieve
SUBRECIPIENT of fiscal accountability and liability under any other provision of this
Agreement or any applicable law. SUBRECIPIENT shall include the substance of this
provision in all subcontracts.
SUBRECIPIENT agrees to retain all books, records, documents, reports, and written
accounting procedures pertaining to the operation of programs and expenditures of funds
A.
B
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under this Agreement for five years after the termination of all activities funded under this
agreement.
Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of
responsibility for retaining accurate and current records, which clearly reflect the level and
benefit of services provided under this Agreement.
At any reasonable time and as often as CITY may deem necessary, the SUBRECIPIENT
shall make available to CITY, HUD, or any of their authorized representatives, all of its
records and shall permit CITY, HUD, or any of their authorized representatives to audit,
examine, make excerpts and copies of such records, and to conduct audits of all contracts,
invoices, materials, payrolls, records of personnel, conditions of employment, and all other
data requested by said representatives.
C.
D.
13. REPORTS AND INFORMATION
At such times and in such form as CITY may require, SUBRECIPIENT shall furnish such
statements, records, data, and information as CITY may request and deem pertinent to matters
covered by this Agreement.
SUBRECIPIENT shall submit beneficiary and financial reports to CITY no less than once every
three months. The beneficiary report shall detail client information, including race, ethnicity,
income, female head of household, and other statistics required by CITY. The financial report
shall include information and data relative to all programmatic and financial reporting as of the
beginning date specified in Section 1 of this Agreement.
Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit an audit
conducted by independent examiners in accordance with Generally Accepted Accounting
Principles. If the SUBRECIPIENT receives and/or expends more than $750,000 in federal
funding, the audit must be conducted in accordance with OMB 2 CFR Part 200, as applicable
within thirty days after receipt of such audit.
14. MONITORING AND EVALUATION
SUBRECIPIENT agrees to participate in a monitoring and evaluation system whereby the
services can be continuously monitored. CITY shall perform monitoring of the
SUBRECIPIENT’s performances under this Agreement for five years from the project
completion.
A. SUBRECIPIENT agrees that CITY may carry out monitoring and evaluation activities to
ensure adherence by SUBRECIPIENT to the provisions of this Agreement which are
attached hereto
B. SUBRECIPIENT agrees to cooperate fully with CITY and to provide data determined by
CITY to be necessary for CITY to effectively fulfill its monitoring and evaluation
responsibilities.
C. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay CITY in
such monitoring and to designate one of its staff to coordinate the monitoring process as
requested by CITY staff.
D. To comply with this section, SUBRECIPIENT agrees to maintain records that will provide
accurate, current, separate, and complete disclosure of the status of funds received and the
services performed under this Agreement. SUBRECIPIENT's record system shall contain
sufficient documentation to provide in detail full support and justification for each
expenditure. SUBRECIPIENT agrees to retain all books, records, documents, reports, and
Page 10
written accounting procedures pertaining to the services provided and expenditure of funds
under this Agreement for the period of time and under the conditions specified by the CITY.
Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of
responsibility for retaining accurate and current records, which clearly reflect the level and
benefit of services, provided under this Agreement.
After each official monitoring on-site visit, CITY shall provide SUBRECIPIENT with a
written report of monitoring findings, documenting findings and concerns that will require a
written response to the CITY. An acceptable response must be received by the City within
60 days from the SUBRECIPIENT’s receipt of the monitoring report or audit review letter.
Future contract payments can be withheld for the SUBRECIPIENT’s failure to submit a
response within 60 days.
SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by any of
the SUBRECIPIENT’s funding or regulatory bodies to CITY within ten working days of
receipt by SUBRECIPIENT.
SUBRECIPIENT will monitor all subcontracted services on a regular basis to assure contract
compliance. Results of monitoring efforts shall be summarized in written reports and
supported with documented evidence of follow-up actions taken to correct areas of
noncompliance.
E.
F.
G.
15. DIRECTORS’ MEETINGS
During the term of this Agreement, SUBRECIPIENT shall cause to be delivered to CITY copies
of all notices of meetings of its Board of Directors, setting forth the time and place thereof. Such
notice shall be delivered to CITY in a timely manner to give adequate notice and shall include an
agenda and a brief description of the matters to be discussed. SUBRECIPIENT understands and
agrees that CITY representatives shall be afforded access to all of the Board of Directors’
meetings. Minutes of all meetings of SUBRECIPIENT’s governing body shall be available to
CITY within ten days after Board approval.
16. INSURANCE
SUBRECIPIENT shall observe sound business practices with respect to providing such
bonding and insurance as would provide adequate coverage for services offered under this
Agreement.
StJBRECIPIENT will comply with applicable workers’ compensation statutes and will
obtain employers’ liability coverage where available and other appropriate liability coverage
for program participants, if applicable.
SUBRECIPIENT will maintain adequate and continuous liability insurance on all vehicles
owned, leased, or operated by SUBRECIPIENT. All employees of SUBRECIPIENT who are
required to drive a vehicle in the normal scope and course of their employment must possess
a valid Texas driver’s license and automobile liability insurance. Evidence of the employee’s
current possession of a valid license and insurance must be maintained on a current basis in
SUBRECIPIENT’s files.
Actual losses not covered by insurance as required by this Section are not allowable costs
under this Agreement and remain the sole responsibility of SUBRECIPIENT.
The policy or policies of insurance shall contain a clause which requires that CITY and
SUBRECIPIENT be notified in writing of any cancellation or change in the policy at least 30
days prior to such change or cancellation.
A.
B.
C.
D.
E
17. CIVIL RIGHTS / EQUAL OPPORTUNITY
Page 1 1
A. SUBRECIPIENT shall comply with all applicable equal employment opportunity and
affirmative action laws or regulations. The SUBRECIPIENT shall not discriminate against
any employee or applicant for employment because of race, color, creed, religion, national
origin, gender, age, or disability . The SUBRECIPIENT will take affirmative action to ensure
that all employment practices are free from such discrimination. Such employment practices
include but are not limited to the following: hiring, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of
compensation, and selection for training, including apprenticeship.
B. SUBRECIPIENT shall comply with all applicable equal employment opportunity and
affirmative action laws or regulations. The SUBRECIPIENT agrees to comply with Title VI
of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as
amended, Section 104(b), Section 109 of Title 1 of the Housing and Community
Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
Order 11063 and Executive Order 1 1246 as amended by Executive Orders 11375 and 12086.
C. SUBRECIPIENT will fbrnish all information and reports requested by the CITY, and will
permit access to its books, records, and accounts for purposes of investigation to ascertain
compliance with local, state, and Federal rules and regulations.
D. In the event of SUBRECIPIENT’s non-compliance with the non-discrimination
requirements, CITY may cancel or terminate the Agreement in whole or in part, and
SUBRECIPIENT may be barred from further contracts with CITY.
18. PERSONNEL POLICIES
Personnel policies shall be established by SUBRECIPIENT and shall be available for
examination. Such personnel policies shall :
A. Include policies with respect to employment, salary and wage rates, working hours and
holidays, fringe benefits, vacation and sick leave privileges, and travel; and
B. Be in writing; and
C. Be approved by the governing body of SUBRECIPIENT.
19. CONFLICT OF INTEREST
SUBRECIPIENT covenants that neither it nor any member of its governing body presently
has any interest, direct or indirect, which would conflict in any manner or degree with the
performance of services required to be performed under this Agreement. SUBRECIPIENT
further covenants that in the performance of this Agreement, no person having such interest
shall be employed or appointed as a member of its governing body.
SUBRECIPIENT further covenants that no member of its governing body or its staff,
subcontractors, or employees shall possess any interest in or use his/her position for a
purpose that is or gives the appearance of being motivated by desire for private gain for
himself/herself, or others, particularly those with which he/she has family, business, or other
ties
No officer, member, or employee of CITY and no member of its governing body who
exercises any function or responsibilities in the review or approval of the undertaking or
carrying out of this Agreement shall participate in any decision relating to the Agreement
which affects his or her personal interest or the interest in any corporation, partnership, or
association in which he or she has a direct or indirect interest.
A.
B.
C
20. NEPOTISM
Page 12
SUBRECIPIENT shall not employ in any paid capacity any person who is a member of the
immediate family of any person who is currently employed by SUBRECIPIENT or is a member
of SUBRECIPIENT’s governing board. The term “member of immediate family” includes: wife,
husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece,
stepparent, stepchild, half-brother, and half-sister.
21. POLITICAL OR SECTARIAN ACTIVITY
A. Neither the funds advanced pursuant to this Agreement, nor any personnel which may be
employed by the SUBRECIPIENT with funds advanced pursuant to this Agreement shall be
in any way or to any extent engaged in any conduct or political activity in contravention of
Chapter 15 of Title 5 of the United States Code
B. The SUBRECIPIENT is prohibited from using funds provided herein or personnel employed
in the administration of the program for: political activities; sectarian or religious activities,
lobbying, political patronage, or nepotism activities.
C. The SUBRECIPIENT agrees that none of the funds or services provided directly or indirectly
under this Agreement shall be used for any partisan political activity or to further the election
or defeat of any candidate for public office, or for publicity, lobbying, and/or propaganda
purposes designed to support or defeat pending legislation. Employees of the
SUBRECIPIENT connected with any activity that is fbnded in whole or in part by funds
provided to SUBRECIPIENT under this Agreement may not under the term of this
Agreement:
(1) Use their official position or influence to affect the outcome of an election or
nomrnatron;
(2) Solicit contributions for political purposes; or
(3) Take an active part in political management or in political campaigns.
D. SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein
as Exhibit D and if necessary, the Disclosure of Lobbying Activities provided by the CITY.
22. PUBLICITY
Where such action is appropriate, SUBRECIPIENT shall publicize the activities conducted by
SUBRECIPIENT under this Agreement. In any news release, sign, brochure, or other advertising
medium, disseminating information prepared or distributed by or for SUBRECIPIENT, the
advertising medium shall state that the U.S. Department of Housing and Urban Development’s
Community Development Block Grant Program funding through the City of Denton has
contributes to make the project possible.
23. CHANGES AND AMENDMENTS
A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written
amendment executed by both parties, except when the terms of this Agreement expressly
provide that another method shall be used.
B. SUBRECIPIENT may not make transfers between or among approved line items within
budget categories set forth in Exhibit B without prior written approval of CITY.
SUBRECIPIENT shall request, in writing, the budget revision in a form prescribed by CITY,
and such request for revision shall not increase the total monetary obligation of CITY under
this Agreement. In addition, budget revisions cannot significantly change the nature, intent,
or scope of the program funded under this Agreement.
Page 13
C. SUBRECIPIENT will submit revised budget and program information whenever the level of
funding for SUBRECIPIENT or the program(s) described herein is altered according to the
total levels contained in any portion of Exhibit B .
D. It is understood and agreed by the parties hereto that changes in the State, Federal, or local
laws or regulations pursuant hereto may occur during the term of this Agreement. Any such
modifications are to be automatically incorporated into this Agreement without written
amendment hereto and shall become a part of the Agreement on the effective date specified
by the law or regulation.
E. CITY may, from time to time during the term of the Agreement, request changes to the
Agreement, which may include an increase or decrease in the amount of SUBRECIPIENT’s
compensation. Such changes shall be incorporated in a written amendment hereto, as
provided in Subsection A of this Section.
F. Any alterations, deletions, or additions to the program budget incorporated in Exhibit B shall
require the prior written approval of CITY.
G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for
work performed under this Agreement at least 30 calendar days in advance of the change.
H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board
composItIon.
It is expressly understood that neither the performance of Exhibit A for any program
contracted hereunder nor the transfer of funds between or among said programs will be
permitted.
1.
24. SUSPENSION OF FUNDING
Upon determination by CITY of SUBRECIPIENT’s failure to timely and properly perform each
of the requirements, time conditions, and duties provided herein, CITY, without limiting any
rights it may otherwise have, may, at its discretion, and upon ten working days written notice to
SUBRECIPIENT, withhold further payments to SUBRECIPIENT. Such notice may be given by
mail to the Executive Officer and the Board of Directors of SUBRECIPIENT. The notice shall
set forth the default or failure alleged, and the action required for cure.
The period of such suspension shall be of such duration as is appropriate to accomplish
corrective action, but in no event shall it exceed 30 calendar days. At the end of the suspension
period, if CITY determines the default or deficiency has been satisfied, SUBRECIPIENT may be
restored to full compliance status and paid all eligible funds withheld or impounded during the
suspension period. If however, CITY determines that SUBRECIPIENT has not come into
compliance, the provisions of Section 25 may be effectuated.
25. TERMINATION
CITY may terminate this Agreement for cause under any of the following reasons or for
other reasons not specifically enumerated in this paragraph:
(1) SUBRECIPIENT’s failure to attain compliance during any prescribed period of
suspension as provided in Section 24.
(2) SUBRECIPIENT’s failure to materially comply with any of the terms of this
Agreement.
(3) SUBRECIPIENT’s violation of covenants, agreements, or
Agreement.
(4) Termination or reduction of funding by the CITY or HUD.
(5) Finding by CITY that the SUBRECIPIENT:
A
guarantees of this
Page 14
(a) is in such unsatisfactory financial condition as to endanger performance
under this Agreement;
(b) has allocated inventory to this Agreement substantially exceeding reasonable
requIrements; or
(c) is delinquent in payment of taxes or of costs of performance of this
Agreement in the ordinary course of business.
(6) Appointment of a trustee, receiver, or liquidator for all or substantial part of
SUBRECIPIENT’s property, or institution of bankruptcy, reorganization,
rearrangement of, or liquidation proceedings by or against SUBRECIPIENT.
(7) SUBRECIPIENT’s inability to conform to changes required by Federal, State, and
local laws or regulations as provided in Section 4, and Section 2, of this Agreement.
(8) The commission of an act of bankruptcy.
(9) SUBRECIPIENT’s violation of any law or regulation to which SUBRECIPIENT is
bound or shall be bound under the terms of the Agreement.
CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and the
effective date of termination. Simultaneous notice of pending termination maybe made to
other funding source specified in Exhibit B.
CITY may terminate this Agreement for convenience at any time. If CITY terminates this
Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed the total
of accrued expenditures as of the effective date of termination. In no event will this
compensation exceed an amount which bears the same ratio to the total compensation as the
services actually performed bears to the total services of SUBRECIPIENT covered by the
Agreement, less payments previously made.
SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to
CITY, if a termination of outside funding occurs upon which SUBRECIPIENT depends for
performance hereunder. SUBRECIPIENT may opt, within the limitations of this Agreement,
to seek an alternative funding source, with the approval of CITY, provided the termination by
the outside funding source was not occasioned by a breach of contract as defined herein or as
defined in a contract between SUBRECIPIENT and the funding source in question.
SUBRECIPIENT may terminate this Agreement upon the dissolution of SUBRECIPIENT’s
organization not occasioned by a breach of this Agreement.
Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw, or otherwise
terminate any outstanding orders or subcontracts, which relate to the performance of this
Agreement. CITY shall not be liable to SUBRECIPIENT or SUBRECIPIENT’s creditors for
any expenses, encumbrances, or obligations whatsoever incurred after the termination date
listed on the notice to terminate referred to in this paragraph.
Notwithstanding any exercise by CITY of its right of suspension or termination,
SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by CITY
by virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may withhold any
reimbursement to SUBRECIPIENT until such time as the exact amount of damages due to
CITY from SUBRECIPIENT is agreed upon or otherwise determined.
B.
C.
D.
E.
F.
G.
26. NOTIFICATION OF ACTION BROUGHT
In the event that any claim, demand, suit, or other action is made or brought by any person(s),
firm, corporation, or other entity against SUBRECIPIENT, SUBRECIPIENT shall give written
notice thereof to CITY within five working days after being notified of such claim, demand,
Page 15
suit, or other action. Such notice shall state the date and hour of notification of any such claim,
demand, suit, or other action; the names and addresses of the person(s), firm, corporation, or
other entity making such claim, or that instituted or threatened to institute any type of action or
proceeding; the basis of such claim, action, or proceeding; and the name of any person(s)
against whom such claim is being made or threatened. Such written notice shall be delivered
either personally or by mail.
27. INDEMNIFICATION
It is expressly understood and agreed by both parties hereto that CITY is contracting with
SUBRECIPIENT as an independent contractor and that as such, SUBRECIPIENT shall save
and hold CITY, its officers, agents, and employees harmless from all liability of any nature
or kind, including costs and expenses for, or on account of, any claims, audit exceptions,
demands, suits, or damages of any character whatsoever resulting in whole or in part from
the performance or omission of any employee, agent, or representative of SUBRECIPIENT.
SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless
CITY its agents, employees, or contractors from any and all claims, suits, causes of action,
demands, damages, losses, attorney fees, expenses, and liability arising out of the use of
these contracted funds and program administration and implementation except to the extent
caused by the willful act or omission of CITY, its agents, employees, or contractors.
A.
B
28. NON-RELIGIOUS ACTIVITIES
As stated in 24 CFR Part 5.109, no organization will be prohibited from participating in
activities supported by CITY funding including programs that make funds available through
contracts, grants, or cooperative agreements. SUBRECIPIENT is prohibited from
discriminating against beneficiaries in providing services or carrying out activities with such
assistance based on religion, a religious belief, a refusal to hold a religious belief, or a refusal
to attend or participate in a religious practice, while also noting that organizations that
participate in programs only funded by indirect CITY or Federal financial assistance need not
modify their program or activities to accommodate beneficiaries who choose to expend the
indirect aid on those SUBRECIPIENTS’ programs.
Faith based organizations that carry out programs or activities with direct Federal financial
assistance from HUD are required to provide written notice of certain protections to
beneficiaries and prospective beneficiaries. Specifically, such organizations are required to
give notice to beneficiaries that:
(1) The organization may not discriminate against a beneficiary or prospective
beneficiary based on religion, a religious belief, a refusal to hold a religious belief,
or a refusal to attend or participate in a religious practice;
The organization may not require a beneficiary to attend or participate in any
explicitly religious activities that are offered by the organization, and any
participation by the beneficiary in such activities must be purely voluntary; and
The organization must separate, in time or location, any privately funded explicitly
religious activities from activities supported by direct Federal financial assistance;
and
If a beneficiary
A.
B
(2)
(3)
(4)objects to the religious character of the organization, the
organization must undertake reasonable efforts to identify and refer the beneficiary
to an alternative provider to which the beneficiary has no such objection;
A beneficiary or prospective beneficiary may report an organization's violation of
these protections, including any denials of services or benefits by an organization,
(5)
Page 16
by contacting or filing a written complaint to HUD or the intermediary
administering the program, if applicable.
a)Faith-based organizations must provide this notice to prospective beneficiaries
prior to enrollment. In the event of an emergency or exigent circumstance that
make it impracticable to provide the written notice in advance, prospective
beneficiaries may receive the notice at the earliest available opportunity.
Current beneficiaries must receive the notice at the earliest available
opportunIty .
Faith-based organizations that carry out a program or activity with direct
Federal financial assistance from HUD are to promptly undertake reasonable
efforts to identify an alternative provider if a beneficiary or prospective
beneficiary objects to the religious character of the organization, and to refer
the beneficiary or prospective beneficiary to an alternative provider to which
the beneficiary or prospective beneficiary has no such objection.
b)
29. MISCELLANEOUS
A. SUBRECIPIENT shall not transfer, pledge, or otherwise assign this Agreement or any
interest therein, or any claim arising thereunder, to any party or parties, bank, trust company,
or other financial institution without the prior written approval of CITY.
B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
remaining provisions shall remain in full force and effect and continue to conform to the
original intent of both parties hereto.
C. All reports, documents, studies, charts, schedules, or other appended documentation to any
proposal, content of basic proposal, or contracts and any responses, inquiries,
correspondence, and related material submitted by SUBRECIPIENT shall become the
property of CITY upon request.
D. Debarment: SUBRECIPIENT certifies that it is not listed on the System for Award
Management (SAM), which list the debarred, suspended, or otherwise excluded from or
ineligible for participation in federal assistance programs under Executive Order 12549 and
24 CFR Part 24
E. In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure of
CITY to insist in any one or more instances upon the terms and conditions of this Agreement,
constitute or be construed in any way to be a waiver by CITY of any breach of covenant or
default which may then or subsequently be committed by SUBRECIPIENT. Neither shall
such payment, act, or omission in any manner impair or prejudice any right, power, privilege,
or remedy available to CITY to enforce its rights hereunder, which rights, powers, privileges,
or remedies are always specifically preserved. No representative or agent of CITY may
waive the effect of this provision.
F. This Agreement, together with referenced Exhibits, constitutes the entire agreement between
the parties hereto, and any prior agreement, assertion, statement, understanding, or other
commitment antecedent to this Agreement, whether written or oral, shall have no force or
effect whatsoever; nor shall an agreement, assertion, statement, understanding, or other
commitment occurring during the term of this Agreement, or subsequent thereto, have any
legal force or effect whatsoever, unless properly executed in writing, and if appropriate,
recorded as an amendment of this Agreement.
G. In the event any disagreement or dispute should arise between the parties hereto pertaining to
the interpretation or meaning of any part of this Agreement or its governing rules, codes,
Page 17
laws, ordinances, or regulations, CITY as the party ultimately responsible to U.S.
Department of Housing and Urban Development (HUD) for matters of compliance, will have
the final authority to render or to secure an interpretation.
If SUBRECIPIENT provides services to the homeless it is required to :
(1) Report homeless data to the Homeless Management Information System (HMIS).
Homeless Management Information System (HMIS): HMIS is a countywide data
management tool designed to facilitate data collection in order to improve human
service delivery throughout Denton County. Participation in the Homeless
Management Information System (HMIS) is a requirement per this agreement. Data
entered into HMIS will help our community improve services to individuals
experiencing homelessness by providing accurate information on the extent and
nature of homelessness in our community and by accounting for our success in
helping people move out of homelessness. Participation is also critical to help Denton
and Denton County successfully compete for grants for federal funding, such as the
U.S. Department of Housing and Urban Development’s homeless assistance funds.
(2) Participate in the Denton County Homeless Leadership Team meetings and any
applicable workgroup(s). The Denton County Homeless Leadership Team is a
collaborative, cross-sector team that convenes to improve the planning, coordination,
oversight, and implementation required to create systems change for
housing/homelessness initiatives in Denton County. Further, the Agency is
encouraged to work in partnership with fellow service providers to improve
efficiency and effectiveness.
For purposes of this Agreement, all official communications and notices among the parties
shall be deemed made if sent postage paid to the parties and address set forth below:
H.
1.
TO CITY:
City Manager
City of Denton
215 E. McKinney
Denton, Texas 76201
TO SUBRECIPIENT :
Habitat for Humanity of Denton County
1721 N. Carroll Blvd.
Denton, Texas 76201
w/ a copy to:
Catherine Clifton, Deputy City Attorney
City of Denton
215 E. McKinney
Denton, TX 76201
G.This Agreement shall be interpreted in accordance with the laws of the State of Texas and
venue of any litigation concerning this Agreement shall be in a court competent
jurisdiction sitting in Denton County, Texas.
IN WITNESS OF WHICH this Agreement has been executed on this the
20200
CITY 0
5th day
HABITAT FOR HUMANITY OF DENTON
COUNTY
Page 18
CITY OF DENTON ,4
CITY MANAGER
a
IOS; RIOS. CITY SECRETARY
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HABITAT FOR HUMANITY OF DENTON
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Community Development Division
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Page 19
EXHIBIT A
SCOPE OF SERVICES
Description of Housing Project
City of Denton Community Development Block Grant (CDBG) funds will be used to purchase a
minimum of four single-family lots in the city limits of Denton for the construction of affordable
housing for low and moderate-income households. The property purchased with CDBG funds
will be the site of new homes that will be constructed by Habitat for Humanity of Denton County
with volunteers and sold to eligible low and moderate-income homeowners. Habitat for
Humanity of Denton County will provide the homeowner a 20-year, zero-interest mortgage loan.
Below are the specifics on the project:
1.
2.
Parcels purchased must be zoned to allow for single-family at the time of construction and
be situated within the city limits of Denton and must meet all the City of Denton’s Land
Development Codes.
Before making an offer, Subrecipient needs to request the completion of an environmental
review on the property that will be conducted by the City. This is necessary to ensure that
the property is eligible prior to making an offer to purchase. Environment review includes
Historic Properties, Floodplain Management, Noise, Thermal and Explosive Hazards, and
Toxic Chemicals and Radioactive Materials.
3.
4.
Before making an offer, Subrecipient is required to have the seller sign the URA Voluntary
Acquisition Form provided to Subrecipient to comply with the URA requirements for the
acquisition of real property.
Subrecipient can enter into an option or conditional contract to purchase real property
before the completion of an environmental review on the property in accordance to HUD
Guidance on Options and Conditional Contracts for Purchase of Real Property for
Environment Reviews Conducted by a Responsible Entitle under 24 CFR 58 dated August
26 20119
5.The scope of construction shall be developed with the specific needs of the selected
residents in mind. The estimated cost, materials to be used, and industry or regulatory
standards to be met shall be itemized on a detailed list that will be used to determine the
scope of work covered by the environmental review, and during the construction phase.
Income shall be calculated using the HUD Section 8 program definition of annual income.
Source documentation for the household must be submitted to the City showing the
household earns less than 80% of the Area Median Income (AMI) at the time of
construction. This affordability requirement survives the expiration of this agreement.
HUD Income Training will be provided by the City of Denton.
Subrecipient shall obtain an appraisal prior to the sale of the newly constructed home to
establish the fair market value.
6.
7.
8 Subrecipient may apply for the Affordable Fee Waiver Program to receive assistance with
building permit fees including plan review, building permits, temporary power, and fence
Page 20
permits; Roadway Impact Fees; and Utility Fees including water and wastewater impact
fees
9.
10.
11.
Subrecipient shall manage construction work, making regular site visits to ascertain that
approved and contracted work is proceeding on schedule and satisfactorily.
The property must be purchased, on or before February 28, 2022. No additional payments
will be made if the acquisition and the payment request(s) with appropriate documentation
is not received by February 28, 2022.
A minimum of four homes must be constructed and sold to eligible homebuyers within 15
months of purchase.
Proposed Project Timeline
March 1, 2020 Project Approval: Contract is executed with SUBRECIPIENT and
approved by City Council
Funding Benchmark: SUBRECIPINET has identified or raised funding
for home construction.
Identification of Residential Property: SUBRECIPIENT searches for
property.
Environmental Approval: City staff completes and approves a Site
Specific Environmental Review Checklist for proposed property.
Land Acquisition: SUBRECIPIENT signs a property contract to
purchase property. Deadline to purchase land is February 28, 2022.
Closing: SUBRECIPIENT closes on property and takes ownership.
SUBRECIPIENT request reimbursement of acquisition costs from the
City of Denton.
Funding Benchmark: Subrecipient secures construction
funding/financing.
Pre-Development: Subrecipient completes architecture, engineering,
design, permitting, and all pre-construction activities and approvals.
Construction: Subrecipient manages construction for building a single-
family home for a low to moderate-income household. Deadline to
construct house is 15 months after purchase of land.
Sell of Home/Occupancy: Subrecipient sells home and household
occupies home. Deadline to sale house is 15 months after purchase of
land.
Reporting: Subrecipient submits client data to the City to complete
project .
Monitoring: Subrecipient begins reporting
Monitoring: Subrecipient ends reporting
May 2020
June 2020
July 2020
August 2020
September 2020
December 2020
February 202 1
October 202 1
November 2021
January 2022
March 1, 2022
February 28, 2027
Work Statement
Page 21
In order to complete the agreed upon activity, SUBRECIPIENT shall provide the following
services from the improved facility:
Habitat for Humanity of Denton County is part of a global, nonprofit organization and is
dedicated to eliminating substandard housing locally and worldwide through constructing,
rehabilitating, and preserving homes; by advocacy for fair and just housing policies; and by
providing training and access to resources to help families improve their shelter conditions.
Habitat for Humanity of Denton County is operated at 1721 N. Carroll Blvd., Denton Texas and
operates from Monday-Friday, noon to 5:00 pm.
Page 22
EXHIBIT B
BUD(,ET
Two-Hundred and Twenty Thousand Dollars ($220,000) in Community Development Block
Grant funds for the land acquisitions of a minimum of four (4) residential infill lots. The amount
stated above is an estimate. Funding may be reallocated as needed to complete the housing
project listed above. As stated in the agreement, any remaining funding will be returned to the
City of Denton. CDBG funds can be used to reimburse the Subrecipient for the purchase price of
a minimum of four (4) residential lots and normal and customary buyer closing costs associated
with the purchase.
Prior to the start of construction, SUBRECIPIENT shall provide the Community Development
Division with a project budget, documentation of any additional flmding sources and
commitments (if other funding sources are included in the project), and a project
planning/construction schedule.
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Exhibit C
U.S. Department of Housing and Urban Development (HUD)
Income Limits
Qualifying Income Limits for Federally Assisted Programs
FY 2019 Income Limits Summary
Dallas, TX HUD Metro FMR Area
Household
Median Household Income: $ 83,100 (Household of 4)
Low
(80%)
46,550
53,200
59,850
66,500
71 ,850
77, 1 50
82,500
87.800
Extremely LowVery Low (50%)
(30%)
29, 1 00 17,500
33,250 20,000
37,400 22,500
25,75041 ,550
44,900 30, 170
34,59048,200
39,01051,550
43.43054.850
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EXHIBIT D
Certification Regarding Lobbying
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of any Federal grant, the making of any Federal loan, the entering
into of any cooperative agreement, and the extension, continuation, renewal, amendment,
or modification of any Federal contract, grant, loan or cooperative agreement.
(2) if any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with a Federal contract, grant, loan or cooperative agreement,
the undersigned shall complete and submit Standard Form-ILL, “Disclosure Form to
Report Lobbying,” in accordance with its instructions.
(3) The undersigned shall require that the language of this Certification be included in the
award documents for all subawards at all tiers (including subcontractors, subgrants and
contracts under grants, loans and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of the certification is a prerequisite for making
or entering into this transaction imposed by Section 1352, title 31, US Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
Habitat for Humanity of Denton County
Grantee
}<(MM;K CfM-LmrTitle
M
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