20-1565ORDINANCE NO.20-1565
AN ORDINANCE OF THE CITY OF DENTON, AUTHORIZING THE CITY MANAGER TO
EXECUTE A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND THE
DENrON AFFORDABLE HOUSING CORPORATION; TO EXPEND HOME INVESTMENT
PARTNERSHIP PROGRAM FUNDS FOR OPERATING EXPENSES; AUTHORIZING THE
EXPENDITURE OF FUNDS NOT TO EXCEED $12,000; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, The City Council of the City of Denton recognizes the need to assist low and
moderate-income families in securing safe, sanitary and decent housing; and
WHEREAS, the City has received funds from the U.S. Department of Housing and Urban
Development under the National Affordable Housing Act of 1990 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 rental
rehab of Denton Affordable Housing Corp. rental units; and
WHEREAS, the City has adopted a budget for such funds included therein an authorized
program budget for expenditure of funds, for operating costs for the Denton Affordable Housing
Corporation (“DAHC”); and
WHEREAS, the City Manager has determined that the DAHC is the only locally-certified
Community Housing Development Organization (“CHDCY’) that includes the required number of
low income citizens from the City or representatives of the low income community on its board of
directors necessary to satisfy federal requirements to serve the City’s geographical area and that
DAHC has provided management services to the City to provide affordable housing within the City
which as significantly benefited the community; and
WHEREAS, DAHC has a demonstrated history of service to the community in the area of
affordable housing; and
WHEREAS, this Agreement, therefore, qualifies as a sole source procurement in accordance
with §252.022(7)(f) of the TEX. LOC. GOV’T CODE and does not need to be competitively bid;
and
WHEREAS, the City Council deems it in the public interest to enter into an agreement for an
affordable housing program with the DAHC; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations in the preamble of this ordinance are
incorporated herein by reference as true and as if fully set forth in the body of this ordinance.
SECTION 2. The City Manager is hereby authorized to execute the attached Agreement
between the City of Denton and Denton Affordable Housing Corporation to provide affordable
housing noted therein.
Page 1
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 $12,000.00, 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 approve this ordinance was made by :bha Ryan and
seconded by Vue\\{ \\>(\qc\S , the ordinance was passed and approved bythe following vote % - a :
Aye 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:
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PASSED AND APPROVED thi, th, byy1 d,y of OCtob e(, 2020.
CHRIS WATTS, MAYOR
Gerard Hudspeth, Mayor Pro TemATTEST:
ROSA RIOS, CITY SECRETARY
BY: a'b.
APPROVED AS TO LEGAL FORM
AARON LEAI„ CITY ATTORNEY
HOME FUNDS: OPERATING EXPENSES AGREEMENT
BETWEEN THE CITY OF DENTON AND
DENTON AFFORDABLE HOUSING CORPORATION
This Agreement is hereby entered into by and between the City of Denton a Texas home rule
municipal corporation, hereinafter referred to as "City", and Denton Affordable Housing
Corporation, Inc., a Texas non-profit corporation, hereinafter referred to as '’DAHC''.
WHEREAS, CITY is the administrator of HOME Investment Partnership Program funds
(HOME Funds) received from the U. S. Department of Housing and Urban Development (HUD)
under Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (the
Act); and
WHEREAS, the purpose of the HOME Investment Partnership Program (the HOME
Program) is to increase the supply of decent, safe, sanitary, and affordable housing for very low
income, low income and moderate-income households; and
WHEREAS, CITY has designated the Community Development Division as the City division
responsible for the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, the CITY has recommended approval of Community Housing Development
Organization (DAHC) operating expenses, subject to the terms specified herein below, and
WHEREAS, DAHC and the City parties hereto agree, and by the execution hereof are
bound to the mutual obligations outlined in the Service Agreement attached hereto and made a
part hereof by reference (the "Agreement "); and
WHEREAS, the City Council of the City of Denton hereby finds that the Agreement
between the City and DAHC, attached hereto and made a part hereof by reference serves a
municipal and public purpose, is in the public interest, and of a benefit to the citizens of the City
of Denton;
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. CHDO PROVISIONS
A.
B
CHDO Designation. Denton Affordable Housing Corporation has been designated by CITY as
a Community Housing Development Organization (CHDO) as defined under 24 CFR 92.2 and
shall serve as the {CHDO} of the Project as such role is defined under 24 CFR 92.300(a).
Certification of Current and Continuing CHDO Status. Denton Affordable Housing Corporation
hereby acknowledges that this Project is being funded with HOME funds reserved specifically
for CHDOs and certifies that as of the date of this Agreement it meets the definition of a CH DO
under 24 CFR 92.2. DAHC further certifies and agrees that it will continue to operate its affairs
such that it continuously meets the CHDO definition for the life of this Agreement and will
notify CITY immediately if any change in circumstance results in it no longer meeting these
criteria at any time during the term of this Agreement. It further will provide documentation
to CITY as may be requested from time to time to document that it continues to comply with
the CHDO definition.
2. TERM
This Agreement shall commence on or as of August 1, 2020, and shall terminate on September
30, 2021, unless sooner terminated because funding is no longer available or in accordance with
Section 18 “Termination." The City shall have the right, but not the obligation, to extend the
term of this agreement.
3. CITY OBLIGATIONS
A.Limit of Liability. CITY will reimburse DAHC for expenses incurred pursuant to and in
accordance with Section 4 of this agreement and the provisions of Exhibit A, Statement of
Work and Exhibit B, Project Budget attached to this agreement. 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 Twelve Thousand Dollars ($12,000.00).
B. Measure of Liability. In consideration of full and satisfactory services and activities hereunder
by DAHC and receipt of a request for payment with appropriate documentation of
expenditures, CITY shall make payments to DAHC set forth in this Section of this Agreement.
(1) The parties expressly understand and agree that the CITY’s obligations under this Section
are contingent upon the actual receipt of adequate funds to meet CITY’s liabilities under
this Agreement. If adequate funds are not available or appropriated to make payments
under this Agreement, CITY shall notify DAHC in writing within a reasonable time after
such fact has been determined. CITY may, at its option, either reduce the amount of its
liability, as specified in Subsection A of this Section, or terminate the Agreement.
(2) it is expressly understood that this Agreement. in no way obligates the CITY to provide
more funds than the amount shown in subsection A. above.
(3) CITY shall not be liable for any cost or portion thereof that:
(a) does not result directly from DAHC's operation as a Community Development
Housing Organization (CHDO) and in fulfillment of its mission to develop
affordable housing;
(b) has been paid, reimbursed or is subject to payment or reimbursement, from any
other source;
(c) was incurred prior to the beginning date or after the ending date specified in
Section 2;
(d) is not in strict accordance with the terms of this Agreement, including all
Attachments hereto;
(e) has not been billed to CITY on or before the earlier of sixty (60) calendar days
following billing to DAHC or termination of this agreement; or
(f) is not an allowable cost identified in 2 CFR Part 200.
(4) CITY shall not be liable for any cost or portion thereof which is incurred with respect to
any activity of DAHC requiring prior written authorization from CITY, or after CITY has
requested that DAHC furnish data concerning such action prior to proceeding further,
unless and until CITY advises DAHC to proceed.
(5) CITY shall not be obligated or liable under this Agreement to any party other than DAHC
for payment of any monies or provision of any goods or services.
(6) Funding not expended within the period of the Agreement will revert to the City of
Denton budget for use on alternative projects.
(7) CITY is the only agent authorized to designate changes to the Project Budget or to approve
specific projects and programs authorized pursuant to the non-administration portion of
the Project Budget.
C. Payment Requests. Funds are to be used for the sole purpose described in the Statement of
Work, Exhibit A, and funding based on the Project Budget, Exhibit B. DAHC shall include in
each request for payment the following:
(1) A uniquely numbered, dated, Invoice on DAHC’s letterhead and addressed to CITY.
DAHC’s invoice will include the total amount being requested and invoices that support
all expenditures for which payment is requested, including timesheets for any employee
of the DAHC whose salary is being paid by these grant funds will be attached. More
specific information is contained in the Statement of Work, Exhibit A and based on the
Project Budget, Exhibit B, both attached to this agreement.
D. Timeliness. The CITY will pay these funds on a reimbursement basis to DAHC within twenty-
one days after CITY has received supporting documentation of eligible expenditures.
E. Excess payment. DAHC 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 DAHC, 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.
F Disallowed Costs. DAHC will refund to CITY any expense or charge for which payment has
been made that subsequently disallowed or disapproved by CITY or by HUD, or any other
federal agency ("Disallowed Cost"), within ten working days of written notice to the DAHC
specifying the amount disallowed.
(1) in the event of a refund is not made by DAHC within such period, CITY may to reduce any
amounts subsequently requested by DAHC in connection with any request for payment
by the amount not refunded to CITY or take any action otherwise provided for by this
Agreement.
(2) Refunds of disallowed costs may not be made from these or any funds received from or
through CITY Upon termination of this Agreement.
G. Deobligation of Funds.
(1) in the event that actual expenditure rates deviate from DAHC’s provision as specified in
Exhibit A and B attached to this agreement, CITY hereby reserves the right to
reappropriate any such under-expended funds.
(2) if CITY finds that DAHC is unwilling and/or unable to comply with any of the terms of this
Agreement, or there is a partial or whole termination of the project, the CITY may require
a refund of any and all money expended pursuant to this Agreement by DAHC shall be
refunded to CITY within ten working days of a written notice to DAHC to revert these
financial assets.
H. Contract close-out. The final expenditure report, for the time period covered by the last
invoice requesting a drawdown of funds under this agreement, shall be submitted by DAHC
to CITY within thirty (30) days following the dose of the term of this Agreement, using the
format as provided to DAHC by CITY.
4. DAHC OBLIGATIONS
DAHC hereby accepts the responsibility for the performance of all services and activities
described in the Statement of Work attached hereto as Exhibit A and incorporated herein as if
set forth at length, in accordance with the Project Budget attached hereto as Exhibit B, and
incorporated herein by reference, in a satisfactory and efficient manner as determined by CITY,
in accordance with the terms herein.
A. Amount of Funds. Twelve Thousand a Dollars ($12,000.00) may be paid to DAHC by CITY, and
the only expenditures reimbursed from these funds, shall be those in accordance with the
Exhibit B for those expenses listed in the Exhibit A, attached to this agreement. DAHC shal
not utilize these funds for any other purpose.
B. DAHC’S Obligations. In consideration of the receipt of funds from the CITY, the DAHC agrees
to the following terms and conditions:
(1) DAHC shall comply with 2 CFR Part 200, Uniform Administrative Requirements, Cost
Principals and Audit Requirements for Federal Awards, Final Guidance, and the
regulations found at 24 CFR Part 92.
(2) DAHC understands that, in accordance with 2 CFR Part 200, suspension or termination
may occur if it materially fails to comply with any term of this agreement. The agreement
may also be terminated for convenience.
(3) DAHC shall not request disbursement of funds until they are needed for payment of
eligible costs. The amount of each request will be limited to the amount needed as per
24 CFR 92.504 (c)(3)(viii).
(4) DAHC will establish, operate, and maintain an account system for these funds that will
allow for tracking of funds and a review of the financial status of the project. The system
will be based on Generally Accepted Accounting Principles.
(5) DAHC will permit authorized CITY officials to review its books at any time.
(6) DAHC 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 reasonable request.
(7) DAHC will not enter into any contracts that would encumber CITY funds for a period that
would extend beyond the term of this Agreement.
(8) DAHC 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.
(9) DAHC will appoint a representative who will be available to meet with CITY officials when
reasonably requested.
(10) DAHC will indemnify and hold harmless CITY, its officers, and employees, from any and
all claims and suits arising out of the project or activities of DAHC, its employees, or
contractors.
(11) DAHC will submit to CITY copies of year-end audited financial statements.
5. REPRESENTATIONS
A. The CITY’s Community Development Manager will be CITY’s representative responsible for
the administration of this Agreement.
B.
C.
CITY will consider DAHC’s executive officer to be DAHC’s representative responsible for the
management of all contractual matters pertaining hereto, unless written notification to the
contrary is received from DAHC and approved by CITY.
The CITY is providing funding to DAHC in order to promote the development of affordable
housing for low-income households. Use of funds for projects will meet this stated goal.
D.
E.
DAHC 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 DAHC, do hereby
warrant and guarantee that he, she, or they have been fully authorized by DAHC to execute
this Agreement on behalf of DAHC and to validly and legally bind DAHC to all terms,
performances and provisions herein set forth.
Debarment. DAHC certifies that it is not currently listed on the General Services
Administration's List of Parties Excluded from Federal Procurement or Non-Procurement
Programs in accordance with Executive Orders 12549 and 12689 and will not enter into
agreements to expend Federal funds with DAHCs that are currently listed.
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 DAHC or the
person signing the Agreement to enter into this Agreement. DAHC 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.
F
G
H. DAHC 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, DAHC had this Agreement not been executed.
6. WARRANTIES
DAHC 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 that since
said date, there has been no material change, adverse or otherwise, in the financial condition
of DAHC.
C.
D.
E.
F.
No litigation or legal proceedings are presently pending or threatened against DAHC.
None of the provisions herein contravenes or conflicts with the authority under which DAHC
is doing business or with the provisions of any existing indenture or agreement of DAHC.
DAHC 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.
None of the assets of DAHC is subject to any lien or encumbrance of any character, except
for current taxes not delinquent, except as shown in the financial statements furnished by
DAHC to CITY.
G. Each of these warranties shall be continuing and shall be deemed to have been repeated by
the submission of each request for payment.
7. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS
A.
B.
C
The CITY and DAHC agree to perform their duties arising pursuant to the Agreement in
compliance with the U.S. Department of Housing and Urban Development HOME Investment
Partnerships Program regulations at 24 CFR 92 and 2 CFR Part 200.
Other Federal Requirements. DAHC agrees to develop and operate the Project in full
compliance with other related federal requirements.
Compliance with All Applicable Laws and Regulations. DAHC agrees to comply fully with all
applicable laws, laws of the State of Texas, and ordinances of the City of Denton that are
currently in effect or that are hereafter amended during the performance of this
AGREEMENT. These laws include, but are not limited to:
(1) HOME Investment Partnerships Act
(2)
(3)
Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including
provisions requiring recipients of federal assistance to ensure meaningful access by
person of limited English proficiency
The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601 et
seq.)
(4) Executive Orders 11063, 11246 as amended by 11375 and 12086 and as supplemented
by Department of Labor regulations 41 CFR, Part 60he Age Discrimination in Employment
Act of 1967
(5) The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
(6) Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.) specifically
including the provisions requiring employer verifications of legal status of its employees
(7) The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the
Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the
Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A
(8) Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
(9) Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part 23,
Subpart F
(10) Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
(11) Regulations at 24 CFR Part 92, Home Investment Partnerships Program Final Rule
(12) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 CFR Part 200 et seq.
(13) Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as
amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101)
(14) Federal Whistleblower Regulations, 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41
U.S.C. 4304 and 41 U.S.C. 4310.
D. Environmental Review. The Parties agree and acknowledge that this AGREEMENT does not
constitute a commitment of HOME Funds, and that such commitment or approval may occur
only upon satisfactory completion of environmental review and receipt by CITY of an
authorization to use grant funds from HUD under 24 CFR Part 58.
E Certification Regarding Lobbying. DAHC certifies that it will not and, to the best of its
knowledge, has not used Federally appropriated funds to pay any person or organization for
influencing or attempting to influence an officer or employee of any Federal agency, a
member of Congress, officer or employee of Congress, or an employee of a member of
Congress in connection with obtaining any Federal contract, grant or any other award. DAHC
further agrees that it shall disclose any lobbying with non-Federal funds that takes place in
connection with obtaining any Federal award.
F.DAHC Procurement Standards. DAHC shall ensure that procurement of materials and services
is done per 2 CFR Part 200. DAHC shall comply with all applicable federal, state and local
laws, regulations, and ordinances for making procurements under this AGREEMENT. DAHC
shall establish written procurement procedures to ensure that materials and services are
obtained in a cost-effective manner.
Cost Principles/Cost Reasonableness. The eligibility of costs incurred for performance
rendered shall be determined in accordance 2 CFR Part 200.402 through 2 CFR Part 200.405,
as applicable, regarding cost reasonableness and allocability.
Financial Management Standards. DAHC agrees to adhere to the accounting principles and
procedures required in 2 CFR Part 200, as applicable, utilize adequate internal controls, and
maintain necessary supporting and back-up documentation for all costs incurred in
accordance with 2 CFR Part 200.302 and Part 200.303.
H.
1.Uniform Administrative Requirements. DAHC will comply with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200,
as applicable, or any reasonably equivalent procedures and requirements that CITY may
requIre
Compliance with FFATA and Whistleblower Protections. DAHC shall provide CITY with all
necessary information for CITY to comply with the requirements of 2 CFR Part 300(b),
including provisions of the Federal Funding Accountability and Transparency Act (“FFATA")
governing requirements on executive compensation and provisions governing whistleblower
protections contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and
41 U.S.C. 4310.
J.
K Internal Controls. In compliance with the requirements of 2 CFR Part 200.303, DAHC shall:
(1) Establish and maintain effective internal control over the HOME Funds that provides
reasonable assurance that DAHC is managing the HOME Funds in compliance with federal
statutes, regulations, and the terms and conditions of this AGREEMENT. These internal
controls shall be in compliance with guidance in “Standards for Internal Control in the
Federal Government" issued by the Comptroller General of the United States or the
“Internal Control Integrated Framework”;
(2) Comply with federal statutes, regulations, and the terms and conditions of this
AGREEMENT;
(3) Evaluate and monitor DAHC’s compliance with statutes, regulations and the terms and
conditions of this AGREEMENT;
(4) Take prompt action when instances of noncompliance are identified including
noncompliance identified in audit findings; and
(5) Take reasonable measures to safeguard protected personally identifiable information and
other information that HUD or CITY designates as sensitive or DAHC considers sensitive
consistent with applicable federal, state, local and tribal laws regarding privacy and
obligations of confidentiality.
L. Nondiscrimination and Equal Opportunity, Affirmative Marketing, Displacement and
Relocation, Labor Relations, and Conflict of Interest. DAHC shall comply with all applicable
Federal laws and regulations at 24 CFR 92 subpart H. Subpart H prescribes procedures for
compliance in these areas.
M. EQUAL OPPORTUNITY During the performance of this Agreement, the DAHC is subject to
Executive Order 11246, as amended, and, therefore, agrees to the following:
(1) The DAHC will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, national origin, or familial status. The DAHC will take
affirmative action to ensure that applicants who are employed are treated during
employment without regard to their race, color, religion, sex, national origin, or familial
status, concerning such employment, upgrading, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or their apprenticeship. The
DAHC agrees to post in conspicuous places, available to both employees and applicants
for employment, notices to be provided by the CITY setting forth provisions of this
nondiscrimination clause.
(2) The DAHC, in all solicitations or advertisements for employees placed by national origin,
or familial status.
B In accordance with Sections 24 CFR 92.350 and 92.351 of the HOME regulations, except for
specific exceptions allowing elderly designated projects to apply age restrictions, no person
shall on the ground of race, color, religion, sex, disability, familial status, national origin, or
age be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under any project activity funded in whole or in part from HOME funds.
(1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing
regulations at 24 CFR Part 100; Executive Order 11063, as amended by Executive Order
12259 (3 CFR 1958 B1963 Comp., P. 652 and 3 CFR1980 Comp., P. 307) (Equal Opportunity
in Housing) and implementing regulations at 24 CFR Part 107; and of the Civil Rights Act
of 1964 (42 U.S. C. 2000d) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR Part 1;
(2) The prohibitions against discrimination on the basis of age under the Age Discrimination
Act of 1975 (42 U.S.C. 6101-07) and implementing Regulations at 24 CFR Part 146, and
the prohibitions against discrimination against handicapped individuals under Section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR
Part 8;
(3) The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., p. 339) (Equal
Employment Opportunity) and the implementing regulations issued at 41 CFR Chapter 60;
The nondiscrimination requirements of section 282 of the HOME Investment Partnerships
Act at title II of the Cranston-Gonzales National Affordable Housing Act, as amended;
(4) The requirements of Section 3 of the Housing and Urban Development Act of 1968 (U.S.C.
1701u) as evidenced by submission of Form HUD-60002 which the DAHC shall complete
and return to CITY within ninety days of the date of this agreement, that:
(a) To the greatest extent feasible, opportunities for training and employment arising in
connection with the planning and carrying out of any project assisted with HOME
funds be given to low-income persons residing within the unit of general local
government or the metropolitan area as determined by HUD, in which the project is
located; and
(b) To the greatest extent feasible, contracts for work to be performed in connection with
any such project be awarded to business concerns, including but not limited to
individuals or firms doing business in the field of planning, consulting, design,
architecture, building construction, rehabilitation, maintenance, or repair, which are
located in or owned in substantial part by persons residing in the same metropolitan
area as the project.
(c) DAHC Responsibilities for Section 3 Requirements. CITY and DAHC understand and
agree that compliance with the provisions of Section 3, the regulations set forth in 24
CFR Part 135, and all applicable rules and orders of HUD shall be a condition of the
federal financial assistance provided to the project binding upon CITY and DAHC, and
their respective successors, assigns, contractors and subcontractors. Failure to fulfill
these requirements shall subject DAHC and its contractors and subcontractors and
their respective successors and assigns to those sanctions specified by the grant
agreement through which federal assistance is provided and to such sanctions as are
specified by 24 CFR Part 135. DAHC’s responsibilities include:
i. Implementing procedures to notify Section 3 residents and business concerns
about training, employment, and contracting opportunities generated by
Section 3 covered assistance;
11.
111.
Notifying potential contractors working on Section 3 covered projects of their
responsibilities;
Facilitating the training and employment of Section 3 residents and the
award of contracts to Section 3 business concerns;
IV.
V.
VI .
VII.
Assisting and actively cooperating with the Neighborhood Services
Department in making contractors and subcontractors comply;
Refraining from entering into contracts with contractors that are in violation
of Section 3 regulations;
Documenting actions taken to comply with Section 3; and
Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
(d) Section 3 Reporting Requirements. In order to comply with the Section 3
requirements, DAHC must submit the forms Section 3 Reporting Forms and take the
following actions:
i. Report to the CITY all applicants for employment, and all applicants for
employment by contractors and any subcontractors on a quarterly basis.
This shall include name, address, zip code, date of application, and status
(hired/not-hired) as of the date of the report.
11.Advertise available positions to the public for open competition and
provide documentation to CITY with the quarterly report that
demonstrates such open advertisement, in the form of printout of Texas
Workforce Commission posting, copy of newspaper advertisement, copy
of flyers and listing of locations where flyers were distributed, and the like.
iii. Report to the CITY all contracts awarded by contractors and any
subcontractors on a quarterly basis. This shall include name of contractor
and/or subcontractor, address, zip code, and amount of award as of the
date of the report.
(e) The nondiscrimination requirements of Section 282 of the HOME Investment
Partnerships Act at title II of the Cranston-Gonzales National Affordable Housing
Act, as amended. No Discrimination in Employment during the Performance of this
AGREEMENT. DAHC agrees to post notices containing this policy against
discrimination in conspicuous places available to applicants for employment and
employees. All solicitations or advertisements for employees, placed by or on the
behalf of the DAHC, shall state that all qualified applicants will receive
consideration for employment without regard to race, color, national origin,
religion, or sex. During the performance of this AGREEMENT DAHC agrees to the
following provision, and will require that its contractors, subcontractors and
vendors also comply with such provision by including it in all contracts with its
contractors and vendors:
(f)DAHC’s Contractors and ADA. In accordance with the provisions of the Americans
With Disabilities Act of 1990 (“ADA"), DAHC warrants that it will not unlawfully
discriminate on the basis of disability in the provision of services to the general
public, nor in the availability, terms and/or conditions of employment for
applicants for employment with, or employees of DAHC. DAHC warrants it will
fully comply with ADA’s provisions and any other applicable federal, state and
local laws concerning disability and will defend, indemnify and hold city harmless
against any claims or allegations asserted by third parties, contractors,
subcontractors or vendors against city arising out of DAHC’s and/or its
contractors’, subcontractors’, vendors’, agents’ or employees’ alleged failure to
comply with the above-referenced laws concerning disability discrimination in the
performance of this agreement.
8. MONITORING AND EVALUATION
A. CITY Reserves the Right to Monitor and Evaluate. CITY reserves the right to perform an audit
of DAHC’s project operations and finances at any time during the term of this AGREEMENT
for five (5) years thereafter, if CITY determines that such audit is necessary for CITY’s
compliance with the HOME Regulations or other CITY policies, and DAHC agrees to allow
access to all pertinent materials as described herein.
(1) if such audit reveals a questioned practice or expenditure, such questions must be
resolved within 15 business days after notice to DAHC of such questioned practice or
expenditure .
(2) if questions are not resolved within this period, CITY reserves the right to withhold further
funding under this and/or other Agreement(s) with DAHC.
(3) if such an audit determines that DAHC has falsified any documentation or misused,
misapplied or misappropriated home funds or spent home funds on any ineligible
activities, DAHC agrees to reimburse city the amount of such monies plus the amount of
any sanctions, penalty or other charge levied against City by HUD because of such actions.
B.DAHC agrees to provide CITY, HUD, HUD’s Office of Inspector General, the Comptroller
General of the United States (aka the U.S. Government Accountability Office or “GAO"), or
their representatives access to the Project and its records for the purpose of monitoring and
evaluating activities to ensure compliance by DAHC with applicable requirements and the
provisions of this Agreement.
C. DAHC agrees to cooperate fully with CITY and provide data determined by CITY to be
necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities.
D. DAHC 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
E.DAHC shall give the City of Denton, the U.S. Department of Housing and Urban Development,
or any of their duly authorized representatives, access to and the right to examine all books,
accounts, records, reports, files and other papers belonging to or in use by DAHC pertaining
to this Agreement. Such rights to access shall continue as long as DAHC is required to retain
the records (Section 9. C.).
F DAHC agrees to provide reports to CITY and to maintain records documenting compliance
with this Agreement, the HOME rule, and all other applicable federal, state, and local laws
and regulations. DAHC agrees to provide upon request the following data and reports, or
copies thereof:
(1) All external or internal evaluation reports.
(2) Financial statements no less than once every three months. Each statement shall include
current and year to date period accounting of all revenues, expenditures, outstanding
obligations, and beginning and ending balances; and
(3) An explanation of any major changes in project services.
(4) An audit must be conducted in accordance with 2 CPR Part 200 as applicable. DAHC shall
submit a copy of said audit to the Community Development Division within thirty days of
receipt of the completed report.
9. MAINTENANCE OF RECORDS
A.DAHC shall establish and maintain records sufficiently detailed as to allow authorized persons
from CITY, HUD, or any otherer authorized entity to determine whether this agreement has
been carried out in accordance with applicable rules and requirements and shall render said
records immediately available to said entities and persons upon request, with or without
prior notice.
DAHC agrees to maintain administrative and financial records as required by 24 CFR 92.508,
applicable to the activities to be carried out under this agreement 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, attached to this
agreement, and with any other applicable Federal and State regulations establishing
standards for financial management. DAHC's record system shall contain sufficient
documentation to provide in detail full support and justification for each expenditure.
DAHC agrees to retain all books, records, documents, reports, and written accounting
procedures pertaining to the operation of the organization and expenditures of funds under
this Agreement for five (5) years after the termination of all activities funded under this
agreement.
Notwithstanding the above, if there are litigation, claims, audits, negotiations or other actions
that involve any of the records cited and that have commenced before the expiration of the
five (5) year period, such records must be retained until completion of the actions and
resolution of all issues, or the expiration of the five (5) year period, whichever occurs later.
At any reasonable time and as often as CITY may deem necessary, the DAHC shall make
available to CITY or any of their authorized representatives, all of its records and shall permit
CITY 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.
Nothing in the above subsections shall be construed to relieve DAHC of responsibility for
retaining accurate and current records which clearly reflect the level and benefit of services
provided under this Agreement.
B.
C.
D.
E.
F.
10.MEETINGS
A. DAHC shall ensure that the CITY is notified of all meetings, regular and special called, of the
board of directors. Notice should be received by the CITY at least 72 hours prior to the
meeting. Such notice shall include an agenda and a brief description of the matters to be
discussed.
B. DAHC understands and agrees that CITY representatives shall be afforded access to all of the
Board of Directors' meetings.
C. Minutes of all meetings of DAHC's governing body shall be available to CITY within ten (10)
working days of approval.
11. INSURANCE
A. DAHC shall observe sound business practices with respect to providing such bonding and
insurance as would provide adequate coverage for services offered under this Agreement.
B.The premises on and in which the activities described in Exhibit A are conducted, and the
employees conducting these activities, shall be covered by premise liability insurance,
commonly referred to as “Owner/Tenant” coverage, with CITY named as certificate holder
which requires that CITY and DAHC be notified in writing of any cancellation or change in the
policy at least 30 days prior to such change or cancellation. Upon request of DAHC, CITY may,
at its sole discretion, approve alternate insurance coverage arrangements.
C. DAHC will comply with applicable workers’ compensation statues and will obtain employers’
liability coverage where available and other appropriate liability coverage for program
participants, if applicable
D.DAHC will maintain adequate and continuous liability insurance on all vehicles owned, leased,
or operated by DAHC. All employees of DAHC 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 DAHC’s files.
E. Actual losses not covered by insurance as required by this Section are not allowable costs
under this Agreement and remain the sole responsibility of DAHC.
F. The policy or policies of insurance shall contain a clause which requires that CITY and DAHC
be notified in writing of any cancellation or change in the policy at least thirty (30) days
prior to such change or cancellation.
12. PERSONNEL POLICIES
Personnel policies shall be established by DAHC 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;
B. Be in writing; and
C. Be approved by the governing body of DAHC.
13. CONFLICT OF INTEREST
(1) DAHC 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. DAHC 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.
(2) DAHC 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.
(3) 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 personal interest or the interest in any corporation, partnership, or DAHC in which he has
direct or indirect interest.
(4) While the conflict of interest provisions in 24 CFR 92.356 do not technically apply to DAHC’s
procurement of goods and services associated with the development or operation of the
Project, DAHC agrees to notify CITY in writing and seek CITY approval prior to entering into
any contract with an entity owned in whole or in part by a covered person or an entity owned
or controlled in whole or in part by DAHC, the General Partner, any of the underlying
individual DAHCs of the General Partner, or any of the Guarantors. CITY will review the
proposed contract to ensure that the contractor is qualified and that the costs are reasonable.
Approval of an identity of interest contract will be in CITY’s sole discretion.
14. NEPOTISM
DAHC 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 DAHC, or is a member of DAHC's governing board.
The term "member of immediate family" includes: wife, husband, son, daughter, mother, father,
brother, sister, in-laws, aunt, uncle, nephew, niece, step-parent, step-child, half-brother and half-
sister
15. POLITICAL OR SECTARIAN ACTIVITY
(1) None of the performance rendered hereunder shall involve any political activity (including,
but not limited to, any activity to further the election or defeat of any candidate for public
office) or any activity undertaken to influence the passage, defeat or final content of
legislation.
(2) None of the performance rendered hereunder shall involve or benefit in any, manner any
sectarian or religious activity.
16. CHANGES AND AMENDMENTS
A.
B
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.
DAHC may not make transfers between or among approved line items within budget
categories set forth in Exhibit B without prior written approval of CITY. DAHC 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 project funded under
this Agreement.
DAHC will submit revised budget and project information, whenever the level of funding for
DAHC or the project(s) described herein is altered according to the total levels contained in
any portion of Exhibit A or Exhibit B.
C.
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 DAHC's
compensation. Such changes shall be incorporated in a written amendment hereto, as
provided in Subsection A of this Section.
Any alterations, deletions, or additions to the Project budget incorporated in Exhibit B shall
require the prior written approval of CITY.
DAHC 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.
F.
G.
H. DAHC shall notify CITY of any changes in personnel or governing board composition.
I. It is expressly understood that neither the work performance of Exhibit A for any Project
contracted hereunder nor the transfer of funds between or among said projects will be
permitted.
17. SUSPENSION OF FUNDING
A.Upon determination by CITY of DAHC'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 (10) working days written notice to
DAHC, withhold further payments to DAHC. Such notice may be given by mail to the Executive
Officer and the Board of Directors of DAHC. The notice shall set forth the default or failure
alleged, and the action required for cure.
B.The period of such suspension shall be of such duration as is appropriate to accomplish
corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the
suspension period, if CITY determines the default or deficiency has been satisfied, DAHC may
be restored to full compliance status and paid all eligible funds withheld or impounded during
the suspension period. If, however, CITY determines that DAHC has not come into
compliance, this Agreement may be terminated under Section 14 of this Agreement.
18. TERMINATION
A. Termination for Cause. CITY may terminate this Agreement for cause under any of the
following reasons or for other reasons not specifically enumerated in this paragraph:
(1) Failure to comply with the terms and conditions hereof;
(2) Failure to comply with HOME Program regulations, fair housing laws, and other federal
requirements related to the Project;
(3) A default by DAHC; and
(4) Any event of fraud, misrepresentation, gross negligence, or willful misconduct by DAHC
in the execution or performance of this Agreement or in its application for participation
in the HOME Program.
CITY shall promptly notify DAHC in writing of the decision to terminate and the effective date
of termination.
B.
C.
D.
The CITY shall have the right to terminate this Agreement for convenience, in whole or in part
by written notification to the DAHC which shall include the reason for such termination, the
effective date and the portion to be terminated.
DAHC shall have the right to terminate this Agreement for convenience, in whole or in part,
by written notification to the CITY, which shall include the reason for such termination, the
effective date and the portion to be terminated.
E.Upon receipt of notice to terminate, DAHC shall cancel, withdraw, or otherwise terminate
any out-standing orders or subcontracts, which relate to the performance of this Agreement.
CITY shall not be Ii-able to DAHC or DAHC’s creditors for any expenses, encumbrances, or
obligations whatso-ever incurred after the termination date listed on the notice to terminate
referred to in this paragraph.
Termination for Convenience. In addition to the termination provision, this Agreement may
be terminated by CITY upon thirty (30) days written notice. In the event of termination
under this section, DAHC shall have no claim of payment or claim of benefit for any
incomplete project activities undertaken under this Agreement and shall not be entitled to,
and hereby waives, all claims for lost profits and all other damages and expenses. In
terminating in accordance with 2 CFR Part 200, Appendix II, this AGREEMENT may be
terminated in whole or in part only as follows:
F
(1) By CITY with the consent of DAHC in which case the Parties shall agree upon the
termination conditions, including the effective date and in the case of partial
termination, the portion to be terminated; or
(2) By DAHC upon written notification to CITY setting forth the reasons for such
termination, the effective date, and in the case of partial termination, the portion to be
terminated. In the case of a partial termination, CITY may terminate the Contract in its
entirety if CITY determines in its sole discretion that the remaining portion of the
Contract to be performed or HOME Funds to be spent will not accomplish the purposes
for which this AGREEMENT was made.
G. Notwithstanding any exercise by CITY of its right of suspension or termination, DAHC shal
not be relieved of liability to CITY for damages sustained by CITY by virtue of any breach of
the Agreement by DAHC, and CITY may withhold any reimbursement to DAHC until such time
as the exact amount of damages due to CITY from DAHC is agreed upon or otherwise
determined.
19. INDEMNIFICATION
A.It is expressly understood and agreed by both parties hereto that CITY is contracting with
DAHC as an independent contractor and that as such, DAHC 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 DAHC.
B.DAHC 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
including administration and implementation except to the extent caused by the willful act
or omission of CITY, its agents, employees, or contractors.
C.DAHC hereby agrees to reimburse, indemnify and save and hold CITY and its successors and
assigns harmless from and against any damage, liability, loss, penalty, charge, cost or
deficiency, including but not limited to any repayment obligation to HUD incurred by CITY
under 24 CFR 92.503(b), reasonable attorney's fees, and other costs and expenses incident
to monitoring, remedial actions, proceedings or investigations and the defense of any claim,
arising out of, resulting from or related to, and to pay to CITY or its successor in interest, on
demand, the full amount of any sum which CITY or its successor has paid or becomes
obligated to pay on account of:
(1) Any misrepresentation, omission, or the breach of any representation or warranty of the
DAHC under the AGREEMENT;
(2) Any failure of the DAHC to fully perform or observe or cause to be performed or observed
any term, provision, covenant, or agreement to be performed or observed by the DAHC,
or after an assumption, by a subsequent DAHC, pursuant to the AGREEMENT;
(3) Any claims, assessments, or liabilities for charges, penalties, liens, taxes, or deficiencies
arising from or relating to the use and operation by the DAHC
D. The provisions of this section shall survive the termination of this HOME Agreement.
20. IMMIGRATION NATIONALITY ACT
CITY actively supports the Immigration & Nationality Act (INA) which includes provisions
addressing employment eligibility, employment verification, and nondiscrimination.
A. DAHC shall verify the identity and employment eligibility of all employees who perform work
under this AGREEMENT.
B. DAHC shall complete the Employment Eligibility Verification Form (1-9), maintain photocopies
of all supporting employment eligibility and identity documentation for all employees, and
upon request, provide CITY with copies of all 1-9 forms and supporting eligibility
documentation for each employee who performs work under this AGREEMENT.
C. DAHC shall establish appropriate procedures and controls so that no services will be
performed by any employee who is not legally eligible to perform such services.
D. DAHC shall provide CITY with a certification letter that it has complied with the verification
requirements required by this AGREEMENT.
E.DAHC shall indemnify CITY from any penalties or liabilities due to violations of this provision.
F. CITY shall have the right to immediately terminate this AGREEMENT for violations of this
provision by DAHC.
21. NOTICE
A.Any notice or other written instrument required or permitted to be delivered under the terms
of this Agreement shall be deemed to have been delivered, whether actually received or not,
when deposited in the United States mail, postage prepaid, registered or certified, return
receipt requested, or via hand.delivery or facsimile, addressed to DAHC or City, as the case
may be, at the following addresses:
TO CITY:
City Manager
City of Denton
215 E. McKinney
Denton, Texas 76201
TO DAHC:
Denton Affordable Housing Corporation
Ann: Executive Director/CEO/Commander
300 South Woodrow Lane
Denton, TX 76205
w/ a copy to:
Catherine Clifton, Deputy City Attorney
215 E. McKinney
Denton, TX 76201
B.
C.
Either party may change its mailing address by sending notice of change of address to the
other at the above address by certified mail, return receipt requested.
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 bW\ day of
C)(++ obe ( , 2020.
CITY OF DEMON:DENTON AFFORD4P
BY '/L?
HOUSING CORPORATION
BY:
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CITY MANAGER E:hGC,,Ave A„«\t„
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CITY SECRETARY
APPROVED AS TO LEGAL FORM:
A\\ItII IIII/
THIS AGREEMENT HAS BEEN
BOTH REVIEWED AND APPROVED
as to financial and operational
obligations and business terms
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rHure
COMMUNITY SERVICESMANAGER
Title
CMMUNIW DEVELOPMENT
Department
68./6(/26Date Signed:
EXHIBIT A
STATEMENT OF WORK
CHDO Operating Expenses
A. CHDO:Denton Affordable Housing Corp
1104 Dallas Drive #229
Denton, Texas 76205 (hereafter “CHDO)
B. PROGRAM:Community Housing Development Organization (CHDO) Operating Expense
C.
D.
Funding:Home Investment Partnerships Program Funds (CFDA # 14.239)
Type of Award: Funds are awarded as a grant to CHDOs meeting the eligibility requirements at the
time of application and arc subject to the terms of the Agreement including the conditions set forth
in this Statement of Work. The eligibility requirements are:
•Current CHDO Certification from City of Denton;
E.
F.
Purpose: These funds are designed to provide operating funds to CHDOs based on financial need
and the expectation that the CHDO will access HOME CHDO funding within 24 months of the award
or has a project underway being funded with HOME CHDO funds.
Agreement Period: August 1, 2020 through September 31, 2021.
G. Authorization:
24 CFR 92.208 – Eligible Community Housing Development Organization (CHDO) Operating Expense
and Capacity Building Costs
1.Up to 5 percent of a participating jurisdiction’s fiscal year HOME allocation may be used for the
operating expenses of Community Housing Development Organizations. These funds may not
be used to pay operating expenses incurred by a CHDO acting as a subrecipient or contractor
under the HOME Program. Operating expenses means reasonable and necessary costs for the
operation of the community housing development organization. Such costs include salaries,
wages, and other employee compensation and benefits; employee education, training, and
travel; rent; utilities; communication costs; taxes; insurance; equipment; materials and supplies.
The requirements and limitations on the receipt of these funds by CHDOs arc set forth in §
92.300(2) and (3). [below]
24 CFR 92.300 – Set aside for Community Housing Development Organizations (CHDO)
2.If funds for operating expenses are provided under S 92.208 to a community housing
development organization that is not also receiving funds under paragraph (a) of this section for
housing to be developed, sponsored or owned by the community housing development
organization, the participating jurisdiction must enter into a written agreement with the
community housing development organization that provides that the community housing
development organization is expected to receive funds under paragraph (a) of this section within
24 months of receiving the funds for operating expenses, and specifics the terms and conditions
upon which this expectation is based.
H. Requirements:
1. ONLY ELIGIBLE EXPENSES REIMBURSED
Expenses incurred within the Agreement Period that arc eligible under 2 CFR Part 200 (Cost
Principles for Non-Profit Organizations) may be reimbursed to the CHDO upto the dollar amount
limit of the Agreement. Operating expenses means reasonable and necessary costs for the
operation of the CHDO. Such costs include:
• salaries, wages, and other employee compensation and benefits;
• employee education, training and travel;
• rent, utilities, communication costs, taxes and insurance; and
• equipment, materials and supplies.
For specific information about eligible and ineligible expenses, please refer to 2 CFR Part 200.
2. PROJECT-RELATED EXPENSES NOT ELIGIBLE
Because operating expenses funds are designed to support a CHDO's operational needs, project-
related expenses are not considered eligible operating expenses under this Agreement.
Project-related expenses include, but may not be limited to:
• Pre-development costs;
• Hard costs;
• Soft costs; and
• Relocation costs
3. USE OF HOME CHDO SET-ASIDE FUNDS
CHDO agrees that it either will access HOME CHDO funds within the Term of this Agreement
(Section 2.)
Reports: CHDO shall submit reports to CITY according to the following schedule, and other reports
or revisions to reports upon request:
I
Required Reports/Documentation
An original invoice with all documentation
required to support expenditures
Timeline
No more than once monthly
t calendar days following the
end of CHDOs Fiscal Year (must beand Management Letters (3 copies)
provided annually)
EXHIBIT B
PROJECr BUDGET
CHDO HOME FUNDS
DAHC shall provide the services listed in this Agreement within the monetary limits attached hereto
and incorporated by reference herein. In no event shall compensation to the DAHC exceed the lesser
of the DAHC’s costs attributable to the work performed as stated in Exhibit A, or sum of Twelve
Thousand Dollars ($12,000.00).
DAHC will submit monthly reimbursement requests. DAHC will be reimbursed for eligible
expenditures (Section A.) for operating expenses described in Exhibit A, Statement of Work and
supported with written documentation verifying the expense was both incurred and paid (Section B.)
within the term of the agreement and prior to the request for reimbursement.
A. Allowable Expenditures
Operating Expenses
Total Allocation
$12,000.00
B.Reimbursement Process: CHDO shall submit its request for reimbursement of operating
expenses by submitting to AHFC an original invoice as described in Section J (below) with copies
of documentation supporting the amount of the reimbursement being requested. Such
documentation may include, but may not be limited to, copies of:
a. Invoices;
b. Bills
c. Canceled checks;
d. Receipts; and
e. Any other documentation that substantiates an eligible expense incurred by the
CHDO during the agreement period.
Unless otherwise authorized by City, the frequency of requests for reimbursement shall be limited
to once per month until all funds have been expended.