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21-140
ORDINANCE NO. 21-140 AN ORDINANCE OF THE CITY OF DENTON RATIFYING AND APPROVING THE EXECUTION OF A CONTRACT WITH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS (THE “TDHCA CONTRACT“) ALLOCATING TO CITY FUNDS FOR THE TEXAS EMERGENCY RENTAL ASSISTANCE PROGRAM AND THE TEXAS EVICTION DrvERsioN PROGRAM; AUTHORIZING THE RECEIPT AND EXPENDITURE OF FUNDS THEREFOR; AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE UNITED WAY OF DENTON COUNTY. INC. PROVIDING FOR A SUB AWARD OF THE OBLIGATIONS AND FUNDS ALLOCATED UNDER THE TDHCA CONTRACT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide much needed resources to help governments, businesses, and individuals respond to the current pandemic; and WHEREAS, funds from the CARES Act were allocated to the U.S. Department of Housing and Urban Development for State grantees to help households prepare for, respond to, and recover from the impacts of COVID-19 (“CDBG-CV funds“); and WHEREAS, HUD allocated $141,486,258 in total CDBG-CV funds to the State of Texas, administered by the Texas Department of Housing and Community Affairs (“TDHCA”); and WHEREAS, TDHCA allocated $105,000,000.00 of these funds to eligible jurisdictions or entities through direct awards and through a competitive process for the Texas Emergency Rental Assistance Program (“TERAP”) and the Texas Eviction Diversion Program (“TEDP”) for the exclusive purpose of providing emergency rental assistance for Texans; and WHEREAS, TERAP provides rental assistance to income-eligible households (up to 80% area median income) impacted by COVID- 19 to help them stay housed during the pandemic and help them recover economically from the impact of the pandemic; and WHEREAS, TEDP provides rental assistance allowing Texans who have fallen behind on their rent because of the impact of COVID-19 and whose landlords have initiated eviction proceedings to stay in their homes; and WHEREAS, on January 15, 2021, the TDHCA and the City of Denton (the “City”) entered into the TDHCA Contract under which the TDHCA allocated to the City $187,444.13 in program and administrative funds for TERAP and TEDP; and WHEREAS, the City and the United Way of Denton County, Inc. (the “United Way”) desire to enter into a memorandum of understanding in the form attached hereto as Exhibit A (the “MOU’) providing for a subaward to the United Way of the City’s obligations and funds allocated under the TDHC A Contract attached to the MOU as Exhibit B; and Page 1 WHEREAS, the City Council of the City of Denton hereby finds that the TDHCA Contract and the MOU serve a municipal and public purpose, are in the public interest, and are of a benefit to the citizens of the City of Denton; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The execution of the TDHCA Contract is hereby ratified and approved, and the City Manager, or his designee is hereby authorized to carry out the duties and responsibilities of the City under the TDHCA Contract, including the receipt and expenditure of funds as provided for therein. SECTION 3. The City Manager, or his designee, is hereby authorized to execute the MOU with the United Way providing for a subaward of the City’s obligations and funds allocated under the TDHCA Contract and is hereby further authorized to carry out the duties and responsibilities of the City under the MOU, including the expenditure of funds as provided for therein SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. *'.„.I;"ETfITT£“V;'i£;:l’"" ””'T.B~=„::::=YsT:Y! ha„'o„ed’:: the following vote n - Ol: Aye Nay Abstain Absent Mayor Gerard Hudspeth:/ X/’ ,/ Z ~/ J 7 Birdia Johnson, District 1 : Connie Baker, 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 this the q tYI day of fc\)too.rl . 2021 mMbTim–mrnxvbl ATTEST: ROSA RIOS, CITY SECRETARY APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: Page 3 Exhibit A 2021 MEMORANDUM OF UNDERSTANDING for a SUBAWARD of CDB(KV FUNDS for the TEXAS EMERGENCY RENTAL ASSISTANCE PROGRAM and TEXAS EVICTION DIVERSION PROGRAM The City of Denton (the “City-), a Texas home-rule municipal corporation, with its principal office at 215 East McKinney Street, Denton, Texas 7620 1, and the United Way of Denton County, Inc. (the "United Way"), a 501 (c)(3) organization with an ofFice at 1314Teasley Lane, Denton, Texas 76205, acting by and through their duly authorized representatives, enter into this 2021 Memorandum of Understanding for a Subaward of CDBG-CV Funds for the Texas Emergency ©ntal Assistance Program and Texas Eviction Diversion Program (“MOU") on this n day of VL\)CUQP,1 :2021. BACKGROUND The City and the Texas Department of Housing and Community Affairs (''TDHCA'’) have entered into 2020 CDBG-CV Contract Number 70200001013 (the ''TDHC A Contract) for purposes of implementing the Texas Emergency Rental Assistance Program (•'T£RAP") and to carry out the Texas Eviction Diversion Program ("TEDP") in connection with the grant by the TDHCA to the City as a subrecipient of $187,444.13 in program and administrative funds under the TDCHCA Contract. The TDHCA Contract is attached to this MOU as Exhibit B and is incorporated herein and made a part hereof for all puqnses. The City and the United Way share the goal of preventing homelessness as the result of eviction of tenants who are residents of Denton. Texas. In furtherance of their shared goal, the City now wishes to enter into this MOU and agrees to make a subaward to the United Way of the City’s obligations and funds granted under the TDHCA Contract, and the United Way agrees to become the City’s subawardee under the TDHCA Contract, all in accordance with the terms and conditions of this MOU . ARTICLE I RESPONSIBILITIES OF THE CITY The City of Denton agrees to the following: 1. 2. The Assistant Community Services Manager will serve as the City’s key stafF position to oversee this MOU. During the term of this MOU, the City agnes to transfer to the United Way program and administrative funds received by the City under the TDHCA Contract up to a total amount of $187,444.13 in accordance with the procedures and requirements set forth in this MOU and subject to the requirements of the TDHCA Contract. The City will work with the United Way as needed in connection with the TERAP and TEDP programs. The City will assist the United Way with marketing and communicating the TERAP and TEDP programs. 3. 4 1 5. 6. The City will provide guidance and technical support to the United Way as needed in connection with the data system and information reporting requirements of the City and the TDHCA. The City will have the right to review and monitor the United Way’s compliance with the terms and conditions of the TDHCA Contract. ARTICLE II RESPONSIBILITIES OF THE UNITED WAY The United Way agrees to the following: I. The United Way's Director of Housing Initiatives will serve as the key stafF position for United Way to oversee, implement, perform and administer the suI>award by City pursuant to this MOU. 2. Unless otherwise agreed in writing by the parties, the United Way agnes perform as the subawardee under this MOU all of the City's obligations as subrecipient under the TDHCA Contract, including the implementation of the TERAP and the carrying out of the TEDP. all in accordance with the term and conditions of the TDHC A Contract. 3. The United Way will serve as fiscal administrator on behalf of the City for the programs under the TDHCA Contract. 4. TIle United Way agrees to perform all of its obligations hereunder and as the subawardee of the TDHCA Contract in accordance with the Texas Emergency Rental Assistance Program (TERAP) Program Guidelines attached hereto as Exhibit A (the “TER AP Guidelines"}. 5. The United Way agrees to comply with all applicable terms and conditions required by federal and state requirements, including but not limited to those reflected in the TDHCA Contract, 2 CFR §200.332 and 2 CFR Part 200 Appendix 11. as applicable. 6. The United Way will conduct and participate in an ongoing evaluation of the performance of its obligations under this MOU and the TDHCA Contract, including but not limited to a review of the pace of fund expenditures to ensure that program funds are disbursed as soon as administratively possible in accordance with terms and conditions of this MOU and the TDHCA Contract. As needed, the United Way will make course corrections in a timely manner to ensure the timely and proper performance of its obligations under this MOU and the TDHCA Contract. 7. The United Way will collaborate with community partners as appropriate to promote the strategic distribution of funds. 8. The United Way will provide the Assistant Community Services Manager or her designee with monthly reports that include: a) budget spreadsheet reflecting the budget categories set forth at Exhibit C of the TDHC A Contract, b) performance data, and c) a funding distribution and expenditure report. 9. The United Way will submit by the 5th of each month for the previous month its request for reimbursement along with all necessary or required supporting documentation adequate to fully justify all expenditures of program and administrative funds requested to be reimbursed hereunder. 10. The United Way agrees to comply with all subawardee requirements, including performance reporting. as outlined in the TDHCA Contract and TER AP Guidelines.. 2 11 . The United Way will refund to City any sum of money which has been paid or reimbursed to the United Way by City, which City determines has resulted in an overpayment. The United Way shall make such refund within ten (10) calendar days after City’s request. 12. TIle United Way will repay to the City any funds that the City at any time determines have resulted in an overpayment to the United Way or have not been spent strictly in accordance with the terms and conditions of this MOU and the TDHCA Contract during the term of this MOU or are not supported by documentation adequate to fully justify the expenditure . The United Way shall make such repayment within ten (10) calendar days after City’s request 13. The United Way will communicate the availability of funds and eligibility criteria to community memtnrs and nonprofit partners. 14. The United Way will receive and track gII referrals for rental assistance electronically (in the Homeless Management Information System (“HMIS”) or an alternative electronic tracking system acceptable to the City). 15. The United Way will enroll TERAP and TEDP clients in the electronic tracking system and track required metrics, including but not limited to: demographics (name, address, birth date, income, household size, etc.), assistance provided (amount, number of months), any additional services provided, and referrals to additional servioes. 16. The United Way will participate in the TEDP and will collaborate with and receive nfenals from the Justice of the Peace for households whose landlords have initiated eviction proceedings. The United Way shall reserve 10% of total TDHCA Contract funding to assist households nfernd by the Justice of the Peace under the TEDP. The TEDP reserved funding and the TEDP assistance will be administered and provided in accordance with the TDHCA Contract and the TERAP Guidelines. ARTICLE III NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this MOU shall be deemed to have been delivered, whether actually received or not, when sent via electronic mail, hand<ielivery or overnight mail service, addressed or sent to the United Way or the City, as the case may be, at the following address: CITY UNITED WAY City of Denton, Texas AHn: City Manager 215 E. McKinney Denton, TX 76201 Todd.Hileman@cityofdenton.com United Way AHn: President and CEO 1314Teasley Lane Denton, Texas 76205 gary@unitedwaydenton.org Either party may change its notice address by sending a notice of change of address in accordance with the provisions of this Article III to the other party at the above address or at the current address previously designated by such other party for notice in accordance with this Article. 3 ARTICLE IV NO ASSIGNMENT This MOU is solely between the parties hereto and cannot be assigned to another without the express advance written approval of the non-assigning party. ARTICLE V MODIFICATION OF AGREEMENT No modification of this MOU shall be effective unless it is in writing and signed by both parties to the MOU. ARTICLE VI TERMINATION OF AGREEMENT Notwithstanding any other provision of this MOU, either party may terminate this MOU as provided in this Article VI. 1.This MOU may be terminated by either party in connection with the material default by the other party in its performance of any of its obligations under this MOU. No such termination will be effected unless and until the other party is given (1 ) written notice (in accordance with Article Ill herein) of the intent to terminate. specifying the default, providing not less than thirty (30) calendar days from the date of the written notice to cure the default and specifying the effective date of the termination if the default is not cured within the cure period; and (2) an opportunity to consultation with the terminating party prior to termination. 2. This MOU may be terminated for convenience by either party hereto giving written notice to the other party thirty (30) days in advance of the effective date of termination stated in the notice. 3. Upon the effective date of termination, the United Way shall immediately cease to perform its obligations hereunder and shall submit to City within thirty (30) days after the effective date of termination its final request for reimbursement of funds expended or disbursed in accordance with this MOU prior to the efFective date of the termination. 4.Should the City subsequently contract with a third party for the continuation of services, the United Way shall cooperate with such third party by providing information necessary to ensure a smooth transition. The United Way shall turn over all documents prepared or furnished by United Way pursuant to this MOU to the City on or before the effective date of termination but may maintain copies of such documents for its records. 4 ARTICLE VII GOVERNING LAW AND VENUE This MOU is subject to, governed by, and shall be construed under the laws of the State of Texas. Venue of any suit or cause of action arising under this MOU shall be exclusively in Denton County. Texas. ARTICLE VIII SEVERABILITY If any provision of this MOU is found or deemed by a court of competent Jurisdiction to be invalid, or unenforceable, it shall be considered severable from the remainder of this MOU and shall not cause the remainder of this MOU to & invalid or unenforceable. In such event. the parties shall reform this MOU to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the parties hereto respecting the stricken provision. ARTICLE IX TERM OF AGREEMENT To the extent allowed by state law, this MOU shall be efFective as of January 15, 2021 and shall terminate on January 14, 2022, unless extended by written agreement or sooner terminated because funding is no longer available or in accordance with Article VI 'Termination of Agreement. ARTICLE X BINDING AGREEMENT This MOU is a binding agreement by and between the parties and enforceable against each of the parties in accordance with its terms. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] IN WITNESS WHEREOF, the City and the United Way have executed this MOU in one or more original counterparts, the City acting by and through its duly-authorized City Manager, and the United Way acting by and through its duly-authorized undersigned officer on the date first written above. CITY OF DENT LEM AN, CITY MANAGER ArrEST: ROSA RIOS, CITY SECRETARY bt1111111/ BY: APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY 'Z PBuh b rJ GARY HENDERSON, PRESIDENT & CEO THIS AGREEMEifr HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational Community Services Manager Title Community Devek3WIent Department D,t, Sig„,d, Of/za/2/ Exhibit A Texas Emergency Rental Assistance Program (TERAP) Program Guidelines TocAS EMERGENCY RENTAL AssISTANCE PR06RAM (TERAP) A COMMUNITy D£VELOPM£NT BLOCK GRANT CARES ACr (CDBG-CV) PROGRAM PROGRAM GUIDELINES Rev. 01/10/2021 Tbis document was last updated on 01/W/2021 and the updated sections appear in green font. Table of Contents 1.Background .....__..___............_...__....__.._....___.___._._.__._________._...„...__......................_.. 3 2.Program Goals....................................................................................................................................... 3 C[>BG National ObjectMe ............____.._...______.__...___.__.__._________.__..________...___._. 3 GovernIng Requirements ..........__..__...._....._..._._._.__..___...__._.._.___.„_.....__.._......_..._....... 3 Program Overview ......................_._.......____._.____________.______.___________._......._._..__. 5 Eligible Activities ._____....._..........._.........._..........__.__._.__...._.......__„____„...._............_..__._... 6 Geographic Ckwerage and Nonqjuplication of Benefits _____.___.__.._____________.____..._...__? Time Period of Assistance .....................................,,.............................................................................. 8 Subawards....................................,........................,......,.........................................,.............................. 8 3. 4. S. 6. 7. 8. 9. 10.Tenant Eligibility Requirements ........................................................................................................g II. Appeal Procedures for Households ____._...._._..___._..._..._._.___..____.._.___________..___ 10 12. Income DetermInation and Verification ..._.,..__..____..._...._________._..__.___.______..__.._ Il 13. Affordable Rent Standard/ Rent Ceiling ..__..._......___....._....____..____.___....______._...____ 13 14. Landlord Eligibility Requirements ................................................................................................... 14 IS. Required Documentation for Application....................................................................................... 14 16. EnvIronmental Review .................................................................................................................... 1S 17. Lead Based Paint Requirements ...........„._....„._.._____._.____._._.___.______.___._„„______ IS 18. Affirmatively furthering fair housing _____._...._._.._..__......_...__.._„..._........_._._._.___._._.... 1S 19. Procurement ........................,............................................................. Errorl Bookmark not defined. 20. Program Administration and Performance...........,......................................................................... 15 21. Other Federal Cross<uttlng requirements..................................................................................... 17 22. List of Program Forms ..................................................................................................................... 17 Appendix 1: Annualized Income „...„._„.__.__________._......_.__..__.__._.__._____._________..__.._ 18 Appendix 2: Excluded Income..................................................................................................................... 19 Page 2 of 19 1. Background Tbe Texas EmergencY Rental Assistance Program (TERAP) provides rental assistance to income-eleible households impacted by cavlcb19 to help them stay housed during the pandemic and help them recover economically from the impact of the pandemic Administered by the Texas Department of Housing and Community Affairs (TDHCA), wIth Community Development Block Grant CARE Act funds (CDBG-CV), the pr%ram can pay up to six months of an eligible household’s rent, including rental arrears, with at least one of those months covering a month of future rent. The program can specifically provide rental assistance to tenants who have been sued for evict:bn (i.e. forcible detainer action filed against them), providing the landlord and tenant an alternative to eviction. Funded through the U.S. Department of Housing and Urban Development (HUD), this CDBG-CV program is specificalV designed to help households prepare for, respond to, and recover from the impacts of COVltF19. The Governor of the State of Texas designated TDHCA as the administrator of the state’s allocation of these funds. TDHCA has designated $105 million to eleible jurisdictions or entities through direct awards and through a competitive process for the exclusive purpose of providing emergency rental assistance for Texans. Tbese program guidelines list program requirements including tenant and landlord eligibility requirements, minimum federal adminIstration and reporting requirements, length of assistance, maximum amounts of assistance, and maximurn household income. 2. Program Goals The goal of the Texas Emergerllw Rental Assistance Program is to help stabilize low- and moderate-income Texas renters impacted by the coronavirus pandemic through the provision of up to six months of rental assistance. 3. CDBG National ObjectIve Rental assistance paynlents will be available exclusively to households whose incomes are at or below 80% or less of Area Median Income (AMI). This activity qualifies under the “limited clientele” category of the CDBG national objective of benefit to low- and moderate.income persons or households (24 CFR 5570.483{(b)(2){c)). 4. Governing Requirements The following regulations establish federal and state requirements. Relevant legal authority includes, but is not limited to, the following as now in effect or as amended in the future: • • e • • e CARES Act (Public Law No: 116-136) Texas Government Code 2105: Administration of Block Grants Housing and Community Developrnent Act of 1974 {42 U.S.C. 5301 et seq} 24 CFR Part 570 Subpart I CDBG-CV Notice, FR4218-N-01 24 CFR Part 58 2 CFR Part 2CX) Uniform Grant Management Standards {UGMS) Texas Department of Housing and Community Affairs 2019 Annual Action Plan, as amended Texas Administrative Code: Title 10, Part 1, Chapters 1 and 2 Page 3 of 19 If state or federal statutes or regulations, or other laws, relating to the CDBG.CV funds are modified by the UnIted States Congress, HUD, the Department, the Texas State Legislature, or the Governor, the changes rnay become effective immediately and may be applicable to existing contracts. If there is a conflict between the state and federal regulations, the federal regulations shall prevail. In addition, the Department reserves the right, at its sole discretion, to suspend or amend the provisions governing this pro€nnt. If such an action occurs, the Department will notify interested parties. Awards are also contingent upon the Department executing a grant agreement from HUD for the CDBG CARES Act funds Financial Management Subrecipient5 must demonstrate to the satisfaction of the Department that they are in compliance wtth the financial management requirements at 2 CFR Part 200, including the single audit requirements of 2 CFR 5200.501. All Subrecipients are subject to the requirements of 10 TAC §1.403, concerning Single Audits. If a Subrecipient utilizes subawardees the Subrecipient is reswnsible for monitoring the subawardees financial management systems in accordance with 10 TAC §l.402. Previous Participation Review and Federal/State Debarment All entities will be subject to a Previous Participation Review by the Department, as outlined in 10 TAC 61.302 Pursuant to 24 CFR Part 5, all CDBG{V applicants are required to verify that they and their principals, or any/all persons, contractors, consultants, businesses, subawardees, etc., that will be conducting business with the applicant as part of the rental assistance activity are not presentty debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction. The Department will not award any CDBG-CV funds to organizations that are debarred, suspended, proposed for debarment, and declared ineligible or voluntarily excluded from participation from federal or state assisted programs, or that are proposing to partner, contract, or otherwise fund rental assistanoe activities through an organization that is debarred, suspended, proposed for debarment, or otherwise ineligible from participation in federally assisted programs. If an organization has a member of its governing body that has this status, the Department will allow the member to resign so that the organization can enter into a Contract with the Department. Page 4 of 19 5. Program Overview The following table provides an overview of eligible program components explained in detail in subsequent sections. Program Component 8 BinALma +Emergency Rental assi:M o Tenant/Landlord learn atnut the program and voluntarily apply. •Texas Eviction Divusion Program o Tenant/Landlord are referred by Justices of the Pea@ after the filing of an evIctIon (i.e. forcible detained and Tenant/Landlord voluntarily apply. Income Determination • e 8 Zero Income to 60% of AMI + Self-Certification forrn 60% to 80% of AMI + Income Verification Considered income.eligible if: o Household has 6 or less members and is receiving SNAP, UH EAP or SSI (for the head or co-head of household) benefits LIHEAP Medicaid. o Living in rent-restricted property, has evidence of income certification on or after April 1, 2020 (but within one year of the household assistance application), and sdf.certify that income does not exceed 80% of AMI. Rent Ceilings e 8 • Yes, assistance up to 120% of, and rent max up to 150% of, Small Area Fair Market Rent (SAFMR) or Fair Market Rent (FMR) Limits (as applicable). Units with contract over 150 % SAFMR or FMR are not eligible. Rent difference between 120% and 150% is certified to be paid by a certified responsible party, Rent Payment a • e • • • e ap to 6 ;ML Includes rental arrears At least one month must cover a month of future rent Salai+;meaTs– Supplies and equipment Overhead (administration utilities, maintenance, etc.) Jransportat ion/mileage Administrative Costs for Grantee Tenant Certification Landlord Certification Duplication of Benefits Required Required Prohibited; Cannot have already received six months of payment from CDBG funds or another payment method covering the same time period. For more than 3 months of CDBG-CV rental assistance on units built prior to 1978 {and that do not quaIIfy for a federal exception), a visual assessment must be performed. No- TDHCA has received statewide clearance for this activity and no action is required from the program administrator. Lead-based paint requirement Environmental review Page 5 of 19 6. Eligible ActivIties Emergency Re To keep Texans who need assIstance wIth rent because of the impact of COVID-19 in their homes, TERAP provides income4ligible, COVID-impacted households, wIth up to six months of rental assistance. Any combination of arrears, current and future rent will be available to assist the household so long as at least one month of assistance is not for arrears (is current or future rent). Current and future rent payments must tn for consecutIve months. Assistance can be in the form of a onetime lumpsum payment and/or scheduled payments for future rent up to six months of total assistance. Program administrators can incur the following administrative costs to deliver the emergency rental assistance program (24 CFR g 570.206(a)): salary and benefits, supplies, equipment, overhead (utilities, maIntenance, etc.), and transportation and mileage. Texas EvictIon DiversIon Program Each TERAP contract includes the requirement that a Subrecipient participate in the Texas Eviction Diversion Program (TEDP}. TEDP allows Texans who have fallen behind on their rent because of the impact of COVID-19 and whose landlords have initiated eviction proceedings, to stay in theIr homes. TEDP is operated in partnership with the Supreme Court of Texas, the Office of Court Administratbn (OCA) and local courts and provides referred income.eligible, COVID-impacted households with up to six consecutive months of rental assistance. Any combination of arrears, current and future rent will be available to assist the household so long as: • the future months of assistance are all consecutIve, and • at least one month of assIstance is not for arrears (is future rent) and + at least one month of rent is for rent in arrears. Assistance can be in the form of a one-time lumpsum payment and/or scheduled payments for future rent for up to six months of total assistance. All Subrocipients will be required to administer the eviction diversion emergency rental assistance activity In conjunction with one or more designated Justices of the Peace as specified by TDHCA and the OCA. In this partnership, the Supreme Court of Texas is intending to remove or seal the initiated eviction from the household’s record to mitigate the secondary effects on the tenant’s ability to rent housing in the future. Information on the order issued by the Court and the Court’s portIon of the program can be found at the QCA program website. Subrecipients whose service area contains an organization in the Texas Eviction Diversion Pilot Program may, for a time, be required to receive referrals from, , or refer households to, these pilot program providers. Ten percent of the contract amount will be allocated for the TEDP activity for a specified time. If there are limited referrals from the local courts or referrals are primarily ineligible, the Department may reallocate these funds to other Subrecipient contracts for this activity, or may allow the funds to be used for emergency rental assistanoe payments by the Subreclplent. If this ten percent is spent, Subreclpient may spend other contract funds on this activity without prior Department approval, but will need to accurately report these funds for the activity utilized in monthly reporting to the Department. Administrative Costs Subrecipients can incur the following admInistratIve costs to deliver the emergencY rental assistance program (per 24 CFR $ 570.206(a) and UGMS): salaries and related costs, supplies, overhead (utilities, maintenance, etc.), equipment (with Department approval), transportation, and mileage. Funds requested for administration are limited up to 13 percent of the total amount of funds requested. Page 6 of 19 Prepantbn of the CDBG-CV application and staff time to attend pre-contract training are eligible pre- award administrative costs and may be reimbursed. All methods of allocating administrative costs (per 2 CFR g 2CX).405, 414 & 416) to the Department are allowable; however, indirect costs are allowable if the entity has an approved federal indirect cost rate or are using the de minimls rate per 2 CFR s2cx).414(n. In the application, subrecipients rnust identify each department or divbion that will administer actIvities under the grant. 7. Geographic Coverage and Duplication of BenefIts A Duplication of BenefIts (DOB) occurs when a program beneficiary receives assIstance from multiple sources for a cumulative amount that exceeds the total need for a wdkular funding need. The amount of the dupliation is the amount of assistance provided in excess of the need. In the case of rental assistance, a duplication of benefits would occur if a program beneficiary (either landlord or tenant) received assistance for the same months of rent for the same unit. Per CDBG.CV Notice Part III.8.9, it is the Department’s responsibility to ensure that each CDBG<V grantee provides assistance only to the extent that the rental assistance needs have not been met by another source As a Grantee, TDHCA is required to develop and maintain adequate procedures to prevent a duplication of benefits that address (indivIdually or collectIvely) each activity or program. To accomplish this TDHCA has instituted the following requirements: • Any person or entity receivIng CDBG-CV assistance certtfies that they have not, and will not, pursue assistance for the same period of tIme for the same unit and household; • Any person or entity receiving CDBG-CV assistance (including Subreciptents) must agree to repay assistance that is determined to be duplicative (this is included in both the tenant and landlord certifications); and •Prohibiting any geographic area from being covered by more than one COBG-CV Subrecipient. Any refunds the Subrecipient receives or other program income must be returned to the Department within ten calendar days. To analyze duplication of tnnefits a grantee should complete the following steps: 1. Assess Need: Determine the amount of need (total cost). 2. Determine AssIstance: Determine the amount of assistance that has or will be provided from aN sources to pay for the cost. 3. Calculate Unmet Need: DetermIne the amount of assistance already provided compared to the need to determine the maximum CDBG-CV award (unmet need). 4. Document anajysis: Document calculatIon and maintain adequate documentation justIfying determination of maximum award. Example: A family that has suffered job loss due to the economIc impact of the coronavirus seeks rental assistance under a CDBG-CV Emergency Payment program for 3 months of arrears payments and 2 months of current/ future rent. • Step 1: Assess Need Page 7 of 19 Monthly Rent = $1,CXD Potential Total Need: $1,cao ’ 5 months = 35,(XX) Step 2: Determine Assistance In the application, the applicant was asked to report if they are receiving or expecting to receive any additional or similar assistance. The applicant reported that a lanl faith-based organization provided $250/ month for the past three months, but that aid is no longer available. TIle family certified that it has not applied for assistance from any other source. Step 3: Calculate Unmet Need Total Need = $5,000 Other Assbtance ; $7S0 ($250/ month for three months) Actual Unmet Need {Maximum Award) = $4,250 ($S,CXXb $750) • Step 4: Doc+rment the Anelv sis Maintain documentation of calculation and justification to confirm amount of unmet need. 8. nme PerIod of Assistance Landlords may receive fInancIal assistance for past-due rent payments datIng back to AprII 1, 2020. 9. Subcontractors and Subawards Subrecipient, in subcontracting for any performances described in this Contract, expressly understands that in entering into such subcontract& TDHCA is in no way liable to the SuI>recipient's subcontractor(s). All subcontracts must be for goods or servIces and paid out of administratIve funds. Subcontractors must be proalred in accordance with 2 CFR Part 2CXJ, UGMS, and 10 TAC §l.4(A. Sub£antract£tr6 Subrecipient has the responsibIlitY for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all Contract terms and as if such performances rendered were rendered by Subrecipient. Department maintains the right to monitor and require Subrecipient’s full compliance with the terms of this Contract. Subwards Subrecipient may request to the Department to enter into a subaward to a unit of local government, council of government, public housing authority, or private nonprofit organization for some or all of its program and administrative funds through a direct (non.cornpet}tive) award. The Su bncipient must fulfil all of the requIrement of a pass-through entity listed in 24 CFR §2(X).332, and must monitor Its subawardee at least once during the Contract Term. Any subaward must contain all the appIIcable terms and conditions required by federal and state requirements and as further reflected thIs Contract including but not limited to Items specifically Identified in this Contract, 2 CFR §200.332, and 2 CFR Part 200 Appendix II (as applicable) . Subrecipient must provide the Department with the applicable contact information for aN subawards to ensure that accurate contact information is available relating to both rental assistance and eviction diversion activities to include in a list of resources for landlords/tenants. Subawardees may not further subaward funds. Before entering into a contract or other agreement with a subawardee, Subrecipient must: 1) check the Federal and State debarment and suspended lists of both the Department (all subawardee s) and Texas Page 8 of 19 Department of Agriculture (only if the subawardee is a non-entItlement city or county) for the entity and for governirB board members of subawardee s; 2) ensure that the entity (if applicable) is current on its Single Audit subrni ssion to the Federal Audit Clearinghouse; 3) request a disclosure for matters under 2 CFR 62(X).113, 2 CFR Part 2(D Appendix XII, 24 CFR Part 9, or the Fair Housing Act; and 4) provide the Department this information on the Department’s form by February 15, 2021. The Subrecipient, in subawarding for any performances described in this Contract, expressly understands that in entering into such subawards, the Department is in no way liable to the Subrecipient's subawardee(5). Departrnent’s approval under this Section 17 does not constitute adoption, ratification, or acceptance of Subrecipient’s or subawardee’s performance hereunder. Department maintains the right to monitor and require Su brecipient’s full compliance with the tenns of this Contract. Department’s approval under this Section 17 does not waive any right of action which may exist or which may subsequentty accrue to Department under this Contract. Certaion Per the CDBG-CV Notice Part III.B.S.(c)(ii), all Subrecipients that directly or indirectly receive CDBG-CV funds are prohibited from selling, trading, or otherwise transferring all or any such portion of such funds to another such entity in exchange for any other funds, credits or non-Federal considerations, and must use such funds only for eligible activities, in this case, emergencY rental assbtance and eviction diversion. 10. Tenant Eligibility Requirements Regardless of whether the household is assisted with TERAP orTEDP, the tenant nlust certify the following in the Tenant CertIfIcatIon form to qualify for assistance. n a Income Eligibility: The Household must have gross annual income at or below 80% of the Area Median Income (AMI) and the program admInIstrator must follow the income verification guidelines in the following section to determine the household’s inoome eligibility. COVID-19 Impact: The Household must have been economically impacted by COVID-19. The household will be asked to describe the impact, but is not requested to submit documentation of such impact with their application. a Proof of Tenancy: Proof of tenanq is most readily established with a copy of the lease for the unit. If there is no copy of the lease provided, or no lease exists, both tenant and landlord are required to certify that the information they have provided on the application regarding the terms of the lease and the rent amount is true and accurate and proof of tenancy must tn provided (e.g. cancelled check, money order, utility bill etc.). Unit Eligibility: Rental units must be eligible. Ineligible units include those already receiving project.based assistance, pubIIc housing units, and units owned by a unit of government. No Duplication of Benefits: The Household must: • CertIfy that they have not received assistance for the same period of time for the same unit and household, or if they do receive fundin& that they will pay back Subrecipient within ten calendar days. a a • Certify that they cannot have previously reaRed rental assistance funded with CDBG CARES funds, that would exceed 6 months in total, when combined with this assistance. 0 Truth and Accuracy: The tenant must certify to the accuracy of all they are stating. Page 9 of 19 Ineligible Clients • Households receiving duplicatlve rental assbtance from any other source for the same period of time for which they are seeking assistance from the CDBG{V pmgnm. Other sources may include but are not limited to rental assistance programs run by cities, countIes, nonprofIts or religious organizations. •Tenants receIving tenant-based voucher assIstance, those who are in a unit receiving project- based assistance, orthose who are in public housing are ineligible. Public housingauthority (PHAs) properties or properties receiving federal or state rental assistance are not eligible as they are already receiving assistance to meet their rent obligations. Examples of federal rental assistance programs whose program participants are not eligible for CDBG-CV rental assistance include but are not limited to the Housing ChoIce Voucher prUmar (tenant or project based), Housing Opportunities for Persons with Aids (HOPWA), and HOME Tenant-Based Rental Assistance (TBRA). 11. Appeal Procedures for Households Subrecipient must establish a written denial of service complaint procedure to address written complaints (or an oral complaint if a person with a disability requests a reasonable acoommodation based on their disability) from a household or landlord. The appeal procedure is not applicable to a household if the landlord declines to participate in the prograrn. If a household’s denial is solely based on income eligibility, the complaint procedure would not apply, but the household may request a recertification of income eligibility based on initial documentation provided at the time of the original application. The recerttfication will be an analysis of the initial calculation based on the documentation received with the inItial application for services and will be performed by an individual other than the person who performed the inItial determination. If the recertification upholds the household’s income as ineligible, the household must be notIfied in writing. If the household is not satisfied with the Subrecipient's decision under the complaint procedure, the household may appeal the decision in writing (or telephonically if a person with a disability requests a reasonable accommodation based on their disability) to the Department within 10 calendar days of notification of an adverse decision. Households who allege that the Subrecipient has denied all or part of a service or benefit in a manner that is unjust, violates discrimination laws, or wIthout reasonable basis in law or fact, may request a contested hearing under Tex. Gov't Code, Chapter 2CX)1. The hearing shall be conducted by the State Office of Administrative Hearings on behalf of the Department in the locality served by the Subrecipient, for which the procedures are further described in 10 TAC 91.13 (relating to Contested Case Hearing Procedures). If the household appeals to the Departrnent, the Subrecipient's funds that oould be pledged to that household should remain unencumbered until the Department completes the appeal process. Page 10 of 19 12. Income Determination and Verification To determine whether a household qualifies for the program they must have gross annual income at or below 80% of the Area Median Income (AMI). Program administrators must follow these guidelines and should complete the Household Income Certification (HIC) FOrm to determIne a household income, unless they have a similar tool that achIeves the same purpose. TIle household Income determination process used for this program is based on HUD’s Handbook 4350.3, Part 5, Income Determination, but has been modIfied by TDHCX to minImize barriers to income documentation recardkeeplng. @ • A household is defined as all persons occupying the same housing unit, regardless of their relationship to each other. The occupants could consIst of a single famIly, two or more famIIIes ltving together, or any other group of related or unrelated persons who share living arrangements. Gross amount. For the types of income counted, gross amounts means income tnfore any deductions have been taken. Annualized Gross Income Annualized Gross Income provides a “snapshot" of the household’s current estimated annual income. For TERAP the household’s circumstances for the most recent four weeks (or month, if monthty) are used to project future income. Please refer to the Appendix 1 for details on annualizinB Income. Every household must qualify under one of the followIng four ategories of income eligibility. A list of the income types that must be excluded from consideration is provided in Appendix 2. Page 11 of 19 Income Eligibility Categories and RequIred DocumentatIon Income/Eligibility Type 1- Cnnsidered income eligible if the household has 6 or less members and is currently receiving SNAP, SSI benefits (for the head or co.head only), or LIHEAP benefits Documentation • Enrollment documentation for the eligible program, e.g. benefit letter(no further documentatbn is needed and an income self-certification is not needed). • An email from the source agency for UHEAP enrollment. 2.Considered income eligible if living in a rent-restricted property and has evidence of income certification on or after April 1, 2020, but within 12 months of the CDBG application e + A copy of the Property/landlord’s Income Certification dated on or after April 1, 2020 (within 12 months of the coDa application) AND Submission of the “Self.Certification of Annual Income by Beneficiary“ form certifying that their income remains below 80% of AMI. 3. Zero Income to 60% of AMI e Submission of the “Self-CertIfication of Annual Income by Beneficiary" form certifying that their income is below 6(D6 of AMI. 4. n%to 80% of AMI e Income Verifcation as provided below. An income self-certification form is not permitted for households in this income range.Included Income 0 The full amount, before any payroll deductions of wages and salaries, overtirne pay, commissions, fees, tips and bonuses, (before payroll deductions), Tbe net income from the operation of a business (sdf-employment) e Pay stub(5) covering at least most recent 4 weeks (weekly, bi-weekly) or coverIng most recent month (monthly, semi-monthly) 0 • Self<ertification 0 Payments in lieu of unemployment and disability compensation, worker's compensation, and severance pay, and similar payments in lieu of earnings •Benefits statement from agencY OR One month's bank statement demonstrating deposit(s) made from agency. Note: unemployment benefits should be included only for the period of time the applicant is actually eligible to receIve those benefits o Actual Child Support Received e Bank statements or payment log from attorney general o Part-time students over 18 years of age • Bank statements or pay stub(s) covering at least most recent 4 weeks (weekly, bi-weekly) or covering most recent month (monthly, semi- monthly) o Full'time students over 18 years of age AND Head or Co-head of household •Bank statements or pay stub(s) covering at least most recent 4 weeks (weekly, bi-weekly) or covering most recent month (monthly, semi- monthly) Proof of full-time status from institution Do NOT count income if they can prove full.time status o Full'time students over 18years of age and NOT Head or Co-head of household e • Page 12 of 19 0 Social Security (not SSI), annuities, insurance policies, retirement funds, pensions, disability benefits, death benefits or other types of similar periodic receipts. Report the total amount received. All regular pay, special pay, and allowance of a member of the Armed Forces except special pay for a family member who is exposed to hostile fire. Report total amount received. @ Social Security or other Award Letter; or Bank Statements 0 • Bank statements or pay stub(s) covering at least nrelst recent 4 weeks (weekly, bi-weekly) or eovering most recent month (monthly, semi- rnonthly) 13. Affordable Rent Standard/ Rent (>iling To ensure cost reasonableness, the contract rent (the lease amount) for the unit in which the household b requesting assistance may not exceed the following limits. • The maximum amount of rental assistance (arrears, current and future months) the program will By is set at 120% of the Small Area Fair Market Rent (SAFMR), Or where no SAFMR exists, the Fair Market Rent (FMR). • The maxirnum amount of contract rent for the unit cannot exceed 150% of the SAFMR, or where no SAFMR exists, the FMR. If a unit’s contract rent exceeds this amount, the unit and household are not eligible for assistance under the program. e If a tenant’s contract rent falls between 120% and ISO% of the applicable SAFMR or FMR (as applicable), the program will still be able to assist the tenant. However, an agreed upon party, either the tenant, landlord, suI>recipient or other, must pay the amount of contract rent in excess of the 120% lirntt, or enter into a payment plan executed by both the tenant and the landlord, before the program will pay the la0% contribution. For any forward payment of rent, the household will have to pay that amount in excess of the 120% lirnit each month. +To find the 120% and 15CD6 limits described aIxive, use the Rent Limit Calculator fXLSX) found under Program Documents. Enter the zip code for the unit for which assistance is being requested. If no zip code is listed, clear the zip code cell and enter the county, Example for a housing unIt with the following rent and applicable SAFMR/FMR: If=n=••ll• The Contract Rent = AND $1,300 SAFMR or FMR = $1,(XX) 120% SAFMR or FMR = Sl,2CX) ISC% SAFMR or FMR = $1,500 Then + Maximum TERAP Rental Assistance = $1,200 AND CertIfied Responsible Party Portion (Tenant, landlord, subrecipient, or other) = $tOO Page 13 of 19 :14. landlord EligibiIIty RequIrements The landlord must complete and certify the following in the Landlord Form and CertiHcotion to qualify for assistance. Q Proof of Tenancy: the landlord must certi& the lease term, rent amount, and be able to provide proof of tenancy by: a Providing a copy of the Tenant’s lease. 0 If no written lease is available, the landlord must provide: • Proof of Unit ownership or ability to sublease. • Evidence of payment from or benefiting Tenant for the unit dated on or after February 1, 2020 (e.g. cancelled checks or money order). a DocumentatIon of missed payments: e.g. missed payment on ledger for rental arrears. a Q D Unit EligibiIIty: Rental units must be eligible. Ineligible units include those already receiving project-based assistance, public housing units, and a property owned by a unit of government. Pee of Property: the Landlord b certifying to the accurate age of the property. Prwention of DupH@tion of Benefits Cenifica6an: o Landlord cannot have received assistance from another program for the same rent for the same client and must agree to not apply in the future for the covered months. o The landlord receiving CDBG.CV assIstance must agree to repay any assistance that is determined to be duplicative. Landlord will reimburse the TEDP Program Administrator within 10 business days if they receive duplicattve payment for the same tenant and same time period. a Non-Eviction: To receive financial assistance, the landlord must agree not to evict the renter for non-payment of rent associated with any of the months for which the rental assistance payment is made. In the case of TEDP assistance, the Landlord must agree to release the tenant from payment liability and waive all claims raised in the eviction case and not evict the tenant for non. payment of rent for the period covered by the assistance. a Fees and Penalty Forgiveness: Landlord must agree to forgive late fees/penalties for rental arrears a Direct DeposIt: Landlord must have a bank account with direct deposit, unless otherwise agreed to with the program administrator. D W.9: Submission of a W.9 form completed by the landlord. O Assistance cannot cover rent any earlier than April 2020. a Truth and AccuracY: The landlord must certify to the accuracY of all items on the certification. 15. Required DocumentatIon for Application landlord Copy ofMe %uted lease with thee tenant or if no written lease, required certification proving tenancy and ability to provide proof of tenancy (e.g. cancelled check, money order, or missed payment on ledger}. Tenant Personal ID for one household membere that is on the lease, or where the member demonstrates occupancy through another identification method such as a sublease agreement, utility bill, voter regIstration, school registration form, etc. Page 14 of 19 Documentation of missed payments (e.g. missed payment on ledger for rental arrears) Written lease OR certification to tenancYe and another method (e.g. cancelled check, nloney order, utility bill, etc.) •IRS W-9 •Evidence of Income eliglblltty under other quaIIfied program OR income determination documentationCompleted landlord Form and Certification +K appIIcable, copy of the Property’s Income Certification dated on or after April 1, 2020 (wIthin 12 months of the CDBG application) for the applicable household e • Completed Tenant Application Completed HousIng Income Certification Cornp}eted Tenant Certification 16. Environmental RevIew TIle Department has received statewide environmental clearance for this rental assistance program and program admInistrators will not have to perform individual environmental reviews. 17. lead Based Paint RequIrements Emergency Rental Assistance, provided for any period of time longer than 100 days for current or forward rent, is covered by the Lead Safe Housing Rule (LSHR) atBtle 24, Part 35 and must follow the requirements ofSubpart K, whether occupied by a child less than six years or not. Rental assistance for arrears does not trigger the LSHR. The Landlord Certification form requires the landlord to disclose the date the property was constructed. If the date disclosed is 1978 or newer, no further action is required by the SuI>recipient. However, units built before 1978 and receiving four or more months of assistance are subject to this requirement. Sub pIt K requires that most dwelling units built prior to January 1, 1978, that reaive Federal assistance undergo a visual assessment for deteriorated paint (inside, outside and all common areas) by a trained grantee or subreciplent. Visual Assessment training is free and may be taken through this link: httPs://apps.hyd.Hgv/offices/lead/training/visualassessment/hCX)101.htm. The results of the visual assessment must be documented. Should deteriorated paint be identIfied, the household is not eligible to be assisted unless the administrator elects to follow the compliance steps to properly address the deteriorated painted surfaces, detailed in Subpart K. A list of exemptions to the LSHR, steps to comply with Subpart K, and assocIated resources can be reviewed here: https://Pod,alapps.hud.gov/CORVID/HUDLBPAdvisor/welcome.html. 18. Affirmatively furtherIng faIr housIng All Subrecipients must affirmatively further fair housing. This includes but is not limited to marketing the program to those least likely to apply. Examples of actions of affirmative marketing are reaching out to organizations that work with persons with disabilities or marketing the program to communities that may not speak English or speak English less than well in their preferred spoken language. 19. Program Administration and Performance Execution of Grant Documents Before accessing the CDBG-CV funds, the Subreciplent must execute and deliver a Contract to TDHCA and Page 15 of 19 must provide to TDHCA aU executed, legalty enforceable grant documents, as applicable, and any other documents reasonably requested by TDHCY\ in connection wIth these funds. OneTime Advance of Funds Per 2 CFR 200.305, the Subreclplent may request a one-time advance of funds (no more than 30 days cash need) by submitting to TDHCA a property completed planned expenditure report that includes a request for advance funds, in a format specified by TDHCA TDHCA shall determine the reasonableness of each amount requested and shall not make disbursement of any such payment until TDHCA has reviewed and approved such request. TDHCA may request Subrecipient to make modifications to the disbursement request and is authorized to mod Ky the disbursement lxwedures set forth herein as may be necessary or advisable for cornpliance with the Federal Act and Program Requirements. The Subrecipient's requests for the advance of funds shall be limited to the mInImum amounts needed for effective operation of prograrns, and shall be timed as closely as possible to be in accord with actual cash requirements, The Subrecipient shall establish procedures to minimIze the time elapsing between the transfer of funds from TDHCA to the Subrecipient and the spending of such funds and shall ensure that such funds are disbursed as soon as administratively possible. If Subrecipient sub€rants any part of its award, it must have fInancial management systems in place to pay the subgrantee for expenses under the agreement, generally within 30 days. Performance Benchmarks, Contract Term and Deobligatian The contract will be issued for a term of 12 months, subject to extension requests at the sole discretion of the Department. Contract benchmarks will be reflected in the contract with the Suk>recipient that require expenditures as follows: • No later than the end of the fourth month of the contract, at least 20% of total contracted funds must be reported as expended. • No later than the end of the sixth month of the contract, at least 40% of total contracted funds must be reported as expended. No later than the end of the ninth month of the contract, at least 70% of total contracted funds must be reported as expended. No later than the end of the twelfth month of the contract, at least ICD% of total contracted funds must be reported as expended. Failure to achieve contract benchmarks may be cause for a partial or complete deobligation of the remaining unexpended contract funds, as determined by TDHCA on a case'by'case basis. • e 8 Once General AdmInistration expenditures reach 40% of the budgeted amount, the Department will only reimburse Subrecipient for additional General Administration costs at a rate such that the percentage of budgeted General AdministratIon funds reimbursed is no more than 20 percentage points higher than the percentage of budgeted Emergency Payments expended. Reporting ResponsibilitIes & Records to be maintained Subrecipients wIll be required to subrnit monthly performance reports outlining households assIsted, funds expended, client demographic data and verification of grant.funded program expenses. The reports will be reviewed for accuracY, performance measures and compliance. In addition, monitoring and audIting of grantees for ongoing compliance and eligibility will be performed by the State to ensure federal requirements are being met. Subrecipients wHI be required to maintain client data supporting client eligibility for services provided. Data shall include, but not be limited to: how the person/household was directly impacted by the Page 16 of 19 coronavirus, number of persons/households served, family size, race/ethnicity and income documentation. Subrecipients will also be required to maintain client and program data relating to the Texas Eviction Diversion Prograrn including, but not limited to: number of persons whose evictions were diverted, client eligibility and demographic information. By the ISth of each month, Subrecipient shaH report: Aggregate-level data to be reported via the Housing Contract System: 1, 2. 3. 4. 5. Summary data for households served by race, ethnicity, and household income level, and other demographic data as required by HUD. Number of Households that received emergency rental assistance. Number of Households that rece}wed emergencY rental assistance through the Eviction Diversion program. Total number of households served. Number of pending Households to receive assistance in the following thirty (30) days. For Texas Eviction Diversion Program: 1. 2. 3. 4. 5. Number of eligible tenants referred to the program for the previous month’s activity. Number of ineligible tenants referred to the program for the previous month’s activity. Number of eligible landlords referred to the program for the previous month’s activity. Number of ineligible landlords referred to the program for the previous month’s activIty. Number of referred tenants withdrawing from the program. Number of referred landlords wIthdrawing from the program. Subrecipient must also report household-level data, including demographic data, as described on TDHCA’s Excel Monthly Performance Report spreadsheet. 20. Other Federal Cross-cutting requirements ' 24CFR 570Subpart K e @ Fair Housing Act Federal reporting requirements - 24 CFR 91.520 Monitoring and reporting program performance - 2 CFR 200.329 Monitoring requirements - 24 CFR 91.330 21. List of Program Forms Tenant Forms • Tenant Application Form • Rent Limit Calculator • Household Income CertIfication Landlord Form • Income Setf£erttfication • Tenant Certification Form • Landlord Certification Forrn Page 17 of 19 Appendix 1: Annualized Income In general, a Subrecipient evaluating a household’s income should assume that the household’s circumstances today will continue for the next 12 months {ANNUALIZE), unless there is verifiable evidence to the contrary. For example, if a head of household is currently working for $7.OD per hour, 40 hours per week, the Subrecipient should assume that this family member will continue to perform that work for that rate and amount of time for the next year. Thus, estimated earnings will be $7.CX> per hour multiplied by 2,080 hours {40 hours per week for 52 weeks of the year), or $14,560 per year. This method should be used even when it is not clear that the type of income received currently will continue in the coming year. For example, assume a family member has been receiving unemployment benefits of $100 per month for 16 weeks at the time of income certification. It is unlikely that the family mernber wIll continue on unemployment for another 52 weeks. However, because tt is not known whether or when the family member will find employment, the Subrecipient should use the current circumstances to anticipate annual (gross) income. Income would therefore be calculated as follows: . 9100 per week x 52 weeks, or 95,200. The exception to this rule is when documentation is provided that current circumstances are known to be time limited or about to change. For example, an employer might report that an employee currently makes $7.50 an hour, but a negotiated union contract will increase this amount to $8.25 an hour eight weeks from the date of assistance. In such cases, income can be calculated based on the information provided. In this example, the calculation would be as follows: . $7.50/hour x 40 hours/week x 8 weeks = $2,4CX) • $8.25/hour x 40 hours/week x 44 weeks (remainIng weeks in the year) = $14,520 ' $2,400 + $14,520 = 516,920=Anticipated and Annualized Gross Income from that household member. Methods to annualize for part-time and full-time gross income Weekly pay: 4 pays stubs: Add the four gross amounts of each stub and divide by four to give you the weekly average. Multiply the weekly average by 52 to arrive at the gross annualized income. Bi-weekly (every two weeks) pay: 2 pay stubs: Add the two gross amounts of each stub and divide by two to give you the bi-weekly average, Muttiply the bi-weekly average by 26 to arrive at the gross annualized income. SemI.monthly {twice per month) pay: 2 pay stubs: Add the two gross amounts of each stub and divide by two to give you the 5erni-monthly average. Multiply the semi-monthly average by 24 to arrive at the gross annualized income. Monthly pay: One pay stub: Multiply gross amount by 12 to arrIve at the gross annualized income. Irregular pay: Use a reasonable, consistent method to arrive at the gross annualized income. Page 18 of 19 Appendix 2: Excluded Income The calculation of annual income shall not include the following: A. Income from Children, which is income from the employment of children (including foster children) under the age of 18 years. B. Payments Received for the Care of Foster ChIldren, including foster adults (usually persons with disabilities, unrelated to the family, who are unable to live alone). C. L#mp-Sum Paymenb, Including additIons to family assets, such as InherItance& insurance payrnents (e.g., health and accident insurance, and worker's compensation), capItal gains and settlement for personal or property losses [except as provided]. D. Reimbursement for Medical Costs, including all payments received by the family that are specifically for, or in reimbursement of, medical expenses for any family member. E. Uve4n Aide, including the income of a live-in aide emploYed because of a medical condition or disability of a family member. A live-in aide is determined to be essential to the care and well-being of the person, not obIIgated for the support of the person, and would not be IIving in the unit except to provide the necessary supportive services. F. Education Assistance, including the full amount of educational scholarships paid directly to the student or to the educational InstItution, and Government funds paid to a veteran for tuition fees, books, equipment, materials, supplies, transportatbn and miscellaneous personal expenses of the student. Any amount of such scholarship or payment to a veteran not used for the above purposes that is available for subsistence is to be included in income. G. Government Programs, including the following: Amounts received under training programs funded by HUD and earnings and benefits from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government,) Amounts received by a disabled person that are disregarded for a limited time for purposes of Supplemental Security Income (SSI) eligibility and benefits, because they are set asHe for use under a Plan to Attain Self-Sufficiency (PASS). Amounts received by a participant in other publicly-assIsted programs, which are specIfically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and made solely to allow participation in a specific program. Amounts specifically excluded by any other Federal statue from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the U.S. Housing Act of 1937. Amounts paid by a State agency to a family with a member who has developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member living at home. H. Temporary Income, considered temporary, nonrecurrlng or sporadic in nature (including gifts). I. Income of Full-Bme Students, earnings in excess of $480 for each full-time student 18 years old or older attending school or vocational training (excluding the head of household and spouse). J. Property Tax Refunds, including amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling of the unIt. K. Adoption Assistance Payments, in excess of $480 per adopted chIld, Page 19 of 19 Exhibit B TDHCA Contract Dcx:uSlgn Enve+W ID: BAFCF16&101&+6F&B66+B8542AC235B4 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FY2020 COMMUNITY DEVELOPMEMr BLOCK GRANT Cbronaviru s Aid, Relief, and Economic Security Act (“CDBG CARES" or “CDBG-CV”) Texas Emergency Rental Assistance Program (“TERAP”) and Texas EvIctIon Diversion Program (qtDP) CONTRACt NO. 70200001013 CFDA: 14.228 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Awarding Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number(s): B-2tFDW484)(Dl Federal Award Year: 2020 Pass Through Entity: Texas Departrnent of Housing and Community Affairs HUD Entity Type: Subrecipient UnIque EntIty IdentifIer Number: 0713801H) SEcnoN I. LALTmE mBIkEr This 2020 CDBG-CV Contract Number 7020ml013 ("Contract”) is made and entered into by and between the Texas Department of Housing and CommunitY Affairs, a public and official of the State of Texas, (“Departmenf’ or 'TDHCA") and City of Denton, a political subdivision of the State of Texas (“Subrecipient") hereinafter, collectively, the "Parties". SEcrioN 2. coNrRAcr TERM This Contract shall commence on January 15, 2021, and shall terminate on January 14, 2022, unleSS extended by written agreement or terminated earlier (-Contract Term"). SEcrioN 3. suBREciPiEhn PERFORMANCE. $eHEDULE, AND SERVICE AREA A. Pureose. Subrecipient shall utilize federal cnBC CV funds to implement a Texas Emergency Rental Assistance Program (TERAP”) and carry out the Texas Eviction Diversion Program {“TEDP”) as further permitted herein and as administered by the Department. B.Program Design. Generally, Subrecipient shall utilize CDBG.CV funds to provide rental assistance to incorne-eligible Households economically impacted by the Coronavirus Disease 2019 (“COVID-19") to help them stay housed during the pandemic by paying for up to six months of rent, including rental arrears, with at least one of those months coverIng a current or future month of rent. Current and future months of rent must be consecutIve. C.IEeE 1. TEDP Activity. i.Subreclpient must participate in TEDP. TEDP allows Texans who have fallen behind on their rent because of the impact of COVID-19 and whose landlords have initiated eviction proceedings, to stay in their homes. TEDP operates in partnership with the Supreme Court of Texas, the Office of Court Administration (”QCA”), and local courts and provides referred income-eligible Households economically Impacted by COVID-19 with up to six months of rental assistance and an alternative to eviction. Subreclpient is required to administer the eviction diversion emergency rental assistance activitY in conjunction with one or more designated Justices of the Peace as specified by TDHCA and the QCA and listed on their websites. 11+ Page 1 of 32 DawSOn Envelope ID: BAFCF16b101&46F+B66+B8542AC235BI 2.Confidential Information. In thb partnership with QCA, the Department, and the Suprerne Court of Texas, Subrecipient will make all court records, files, and information, relating to the eviction confidential to mitigate the secondary effects on the Households abIlity to rent housIng in the future. Visit the Court’s website at http://www.txcourts.gov/programs-services/eviction-diversion- program/. 3, Alloation. Ten percent (10%) of the contract amount is allocated for the TEDP activity. If this ten percent (10%) is spent, Subreciplent may spend other funds under this Contract on TEDP without prior Department approval, but will need to accurately report these funds for this activity utilized in the nlonthly reporting to the Department. 4. Deobligation. If there are limIted referrals from the local courts or referrals are primarily ineIIgible, the Department may in its sole but reasonable written authority deobligate all or a portion of these funds, or may allow the funds to be used for emergency rental assistance payments by the Subrocipient, on or after the six-month expenditure benchmark. 5.Security and Utility Deposits. If the landlord refuses to participate in TEDP, Subrecipient may transfer the Household to the TERAP. If Subrecipient transfers the Household to the TERAP, TERAP funds may also be used for one month’s security and utility deposit(s). Subrecipient may not pay a utility deposit to a public utility cornpany that it or an affiliate owns or controls, or that another unit of government or affIliate of local government owns or controls without prior written permission from the Department. If these deposits are refundable, the Subrecipient must require the landlord or the utility cornpany to return the funds to the Subrecipient upon the Household’s departure from the Unit. 6. Intentionally Deleted. Subrecipient must comply with the all applicable statutes, regulations, and U.S. Department of Housing and Urban Development (“HUD”) guidance, IncludIng, but not limIted to the following: the Coronavirus Aid, Relief, and EconomIc Security Act (Public Law 11&136) ("CARES Act"); Chapter 2105 of the Texas Government Code; Administration of Block Grants, Housing and Community Development Act of 1974, as amended and codified at 42 U.S.C. S S301; the Federal CDBG Regulations, found at Tltle 24 Code of Federal Regulations (CFR) Subpart l; and the CDBG-CV notice found at FR-6218-N-01 (“Notice”) and FAQs: Program Rules, Waivers, and Alternative Requirements Under the CARES Act for CDBG.CV Grants, FY 2019 and 2020 CDBG Grants, and for Other Formula Pngnms”); 24 CFR Parts 58, and 75; 2 CFR Part 200, Uniform Grant Management Standards (UGMS), Texas Department of Housing and Community AffaIrs 2019 Annual Action Plan, as amended, the Department’s CDBG-CV TERAP Program Guidelines ("Program Guidelines") and Chapters 1 and 2 of Title 10, Part 1 of the Texas Administrative Code. Subreclpient further agrees to comply with the Certification Regarding Lobbying for Contracts, Grants, Loans, and CooperatIve Agreements attached hereto as Addendum A, Certification Regarding Drug-Free Workplace Requirements attached hereto as Addendum B, Certification Regarding Debarment, Suspension and Other Responsibility Matter attached hereto as Addendum C, the Contract Benchmarks attached hereto as Exhibit A; the Performance Statement and Benchmarks attached hereto as Exhibit B; the Budget attached hereto as ExhibIt C; all such addendums and exhibits incorporated herein for all relevant purposes; the assurances, certificatIons, and all other statements made by Subrecipient in its application for CDBG- CV, as defined in Section 4, funding under this Contract; and wIth all other terms, provisions, and requirenlents herein set forth. All such addendums and exhibits are Incorporated herein for all relevant purposes. E.ServiCe Area Subrecipient's service area consists of: City of Denton, TX. Pa8e 2 of 32 DawSlgn Erwelope ID: BAFCF16B101&+6F+B68488542AC235B4 F.PerfQrmanee. The Subrecipient shall perform aN activities in accordance with the Program Requirements in Section 3 D of this Cbntract “Program Requirements", “Contract Benchmarks- attached hereto as Exhibit A and inorporated herein for all relevant purposes; the “Performance Statement and Benchmarts”” attached hereto as ExhIbIt B and incorporated hereIn for all relevant purposes; the “Budget” attached hereto as ExhIbit C and incorporated herein for all relevant purposes; the “Certification Regarding Lobbying for Contracts, Grants, Loans and Cooperative Agreements" attached hereto as Addendum A and incorporated herein for all relevant purposes; Certtfiation Regarding Drug-Free Workplace Requirements attached hereto as Addendum B, the Certification Regarding Debarment, Suspension and Other Responsibility Matter attached hereto as Addendum C, the assurances, oerttfications, and all other statements made by the Subrecipient in its application for the activity funded under this Contract; and with all other terms, provisions, and requIrements set forth in this Contract. The Subrecipient shall ensure that the persons to benefit from the activities described in the "Performance Statement and Benchmarks- attached as ExhIbit B to thIs Contract are receIving the service or a benefIt and actIvIties for the Contract obligations to be futfilled and before submitting the "Project Completion Report-, as described in the Program Guidelines to TDHCA. All fundsGerne must be fully expended within the Contract Term and must in expended at a reasonable rate amptable to the Department and as indicated in the “Contract Benchmarks" and “Budget" attached hereto as Exhibits A and C As further detailed in Exhibits A and C, once General Administration expenditures reach 4CP£ of the budgeted amount, the Department will only reImburse Subrecipient for addItional General Administration costs at a rate such that the percentage of budgeted General Administration funds reimbursed is no more than 20 percentage points higher than the percentage of budgeted Emergency Payments expended. H.Income and Household QualificatIon. 1.Definitions. For purposes of this Contract, the following definitions apply: i.“Household’ or “Households" is defined as all persons occupying the same housing unit, regardless of their relationship to each other. The occupants could consist of a single family, two or more families living together, or any other group of related or unrelated persons who share living arran8ernents. Livein aides are not part of the Household. “Grass Annual Incorne” is defined as annual income before any deductions have been taken i. 2. Tenant Certification. The Household must complete a tenant certification form, as described in the Program Guidelines. 3. Statements of Economic Impact. Subrecipient must collect statements from Households attesting to having been economically impacted by COVID-19 such as disaster related unemployment, lost wages, or increased Household costs. 4. Household Income Certifnation. Unless atherwbe noted, Subrecipient rnust complete a household income certifiation form (“HIC") or a similar tool, as described in the Program Guidelines. S. Household income. Household inoome is based on Part 5 of HUD’s Handbook 4350.3, as modified for TERAP and TEDP and defined in the Department’s CDBG-CV TERAP Program Guidelines found here: https://www.tdhca.state.tx.us/pdf/covid19/cdbdTERAP-Program-Guidelines.Pdf 6. Household Qualifications.Households can qualify as follows: Page 3 of 32 DowSign Envelope ID: BAFCF16$101&46F4B66&B8542AC235B4 i.Suk>recipient is not required to further determine Household income if the Household consists of 6 or fewer individuals and signs a self.certification that its Income does not currently exceed 80% of HUD’s Area Median Income (“AMI"), and the Household provides documentation that tt is currently receiving benefits from Supplemental Security Income (“SSI-) for the Head or C&Head of household„ Low-Income Energy Assistance Program ('’LIHEAP"), or the Supplemental Nutrition Program (“SNAP”). If the Household resides in a developtnent that is a property whose rent limit is capped by HUD, the Department of Agriculture or the Department, the landlord may provide documentation that an income certtficatbn was done pursuant to 24 CFR Part 5 on or after April 1, 2020, but must be within twelve months of the CDBG-CV application for assistance, and the residing Household’s income does not exceed 80% of HUD’s AMI. In this circumstance, after reviewing the landlord’s documentation and receiving a certificatIon from the Household that its income is still under HUD’s 80% AMI, Subrecipient is not required to further determine Household income. If income is from a% to 6(B6 AMI, a Household self.certification of income is required. For Household income 60% to 8tH of AMI, see page 11 of the Program Guidelines. For TERAP, Subredpient must qualify all Households using the 4350.5 modified income qualification process explained on the Program Guidelines. iiB iii. iv. 7.Duplication of Benefits. Under no circumstances shall a Household or landlord receIve a duplication of benefits {'’DOB'’}. A DOg occurs when a beneficiary receives assistance from multiple sources for the same purpose, and the total assistance received for that purpose is more than the total need for assistance. Any excess from a DOB must be returned to the Department within 10 {ten) days. 8. Subaward Agreements. This subsection H of Section 3 of the Contract must be incorporated into any and all $ubaward agreements. SEerlON 4. DEPARTMENr FINANCIAL OBLIGATIONS A.Financial Obljgations. In consideration of Subrecipient's satisfactory performance of this Contract, Department shall reimburse the actual allowable costs incurred by Subrecipient in an amount up to $187,444.13 and in accordance with the terms of this Contract. B.Availabilitv of Funds, Departmenfs obligations under this Contract are contingent upon the actual receipt and availability by the Department of adequate CDBG-CV funds from the U.S. Department of Housing and Urban Development (“HUD”). If sufficient funds are not available to make payments under this Contract, Department shall notIfy Subrecipient in writing within a reasonable time after such fact is deterrnined. Department shall then terminate this Contract, and will not be liable for the failure to make any payment to Subrecipient under thb Contract. Department acknowledges that it has received obligations from those sources which, if paid, will be sufficient to pay the allowable costs incurred by Subrecipient under this Contract. C.IneIIgjble Costs- Department shall not be liable to Subrecipient for certain costs, including but not limited to costs which: 1. have been reimbursed to Subredpient or are subject to reimbursement to Subrecipient bv any source other than Department; 2. are not allowable costs, as set forth in the CDBG-CV Notice and the CARES Act and in Section 8 of this Contract; Page 4 of 32 DowSign EnvdoFn ID: BAFCF18&101&deF&B6e4.B8542AC235B4 3. 4. S. 6. are not strictly in accordance wIth the terms of this Contract, including the addendums and exhibits attached hereto; have not been reported to Departrnent within forty-five (45) calendar days following terrnination of this Contract; are not used to prevent, prepare for, or respond to the Coronavirus Disease 2019 pandemic “COVID-IY); or are not incurred during the Contract Term, except for rental arrears payments between April 1, 2020, and January 14, 2021, and eIIgible pre-award administrative costs incurred after April 1, 2020, as further detailed in Section 5 C of this Contract. D.DeobltRatlon of Funds. Failure to meet an expenditure benchmark as reported in the Monthly Expenditure and Performance Report as identified in Exhibit A, Contract Benchmarks, may resutt in the Departrnent {in its sole discretion) deobllgating the unreported amount of expended funds for the benchmark and deobllgating an equIvalent proportion of administrative funds. Funds obligated to specific landlords or utility providers by July 31, 2021, but not paid to those landlords or utiIIty providers may be reobligated by the Subrecipient in accordance wIth the terms of this Contract. SEcnoN S. PAYMEMr / CASH BALANCES On+nme Request for Advance of Funds. 1.Per 2 CFR 2CX).305, the SuI)recipient may request a one-time advance of funds (no more than 3D days ash need) by submitting to TDHCA a properly cornpleted planned expenditure report that includes a request for advance funds, in a format specified by TDHCA. TDHCA shall determine the reasonableness of each amount requested and shall not make disbursement of any such payment until TDHCA has reviewed and approved such request. TDHCA maY request Subrecipient to make modifications to the disbursement request and is authorized to modify the disbursement procedures set forth herein as may be necessary or advisable for compliance with Program Requirements. 2.Subrecipient's requests for the advance of funds shall be limited to the minimum amounts needed for effective operation of programs, and shall be timed as closely as possible to be in accord with actual cash requirements. Subrecipient shall establish procedures to rninimize the time elapsing between the transfer of funds from TDHCA to the Subrecipient and the spending of such funds and shall ensure that such funds are disbursed as soon as administratively possible. If Subrecipient subcontracts ar subawardees any part of its award, it must have financial management systems in place to pay the subcontractor orsubawardee for expenses under the agreement, generalty within thirty (30) days. Dlsbursement Procedures. Subrecipient shall establish procedures to minimize the time between the disbursement of CDBG£VD funds from Department to Subrecipient and the expenditure of such funds by Subrecipient. C.Allowable Expenses. All funds paid to Subrecipient pursuant to this Contract are for the payment of allowable expenditures to be used for the exclusive benefit of low-to moderate- income Households with Grass Annual Income at or below 80 percent of HUD’s AMI, applicable per each Household's size and zip code and county of resIdence. Subrecipient may incur administrative costs to deliver emergencY assistance; salaries and related osts; supplies and equipment (wIth Department approval and as limited by 10 TAC 61.10), overhead (utilities, maintenance, etc,), transportation, and mileage. PreparatIon of the CDBG-CV application and staff time to attend or participate in pre'contract training are eligible pre.award administrative costs. Subrecipient may Incur costs for actIvities associated wah the closeout of the Contract for a period not to exceed forty.five (45) calendar days from the end of the Contract Term. Page S of 32 DwuSign EweIape ID: BAFCF16BIOIG46F+B6&&B8S42AC235B4 D.Refund. Subrecipient shall refund to Department any sum of money which has teen paid to Subrecipient by Department, which Department determInes has resulted in an overpayment. Subrecipient shall make such refund wIthIn ten (10) alendar days after the Department’s request. E.Repayment. Subrecipient shaH repay funds that the Department determines has not ken spent strictly in accordance with the terms of this Contract and by which the period of obliBatbn has expired. Subrecipient shall make such repayment wIthin ten (10) calendar days after the Department’s request SEcrloN 6.ADMiNiSrRATIVE REQUiREMEHIS, COSI PRINCIPLES AND AUDrr REQUIREMEMrs A.Administrative ReauiremeQts end Cost Principles. Except as expressly modified by law or the terms of this Contract, Subrecipient shall comply with the cost princIples and uniform administrative requirements set forth in the state Uniform Grant Management Standards, M TAC 620.421 in effect on the effective date of thb Contract (“UGMS"). B.IndIrect Cost Rate. Subrecipient has an approved indirect cost rate of 0%. Indirect costs are only allowable if Subrecipient has an approved federal indirect cost rate or is using the de minims rate on all its federal contracts per 2 CFR §2CX).414(f). C.Financial Managementand Audit RequIrements. Subrecipient must demonstrate to the satisfaction of the Department that they are in compliance with the financial management requirements at 2 CFR Part 2CX), including the single audit requirements of 2 CFR §2(D.501. Audit requirements are set forth in the Texas SIngle Audit Act and 2 CFR Part 200, Subpart F. The expenditure threshold requIring an audit is $750,0(X) of Federal and/or state funds. If an audit is required under the Texas State Single Audit Act, this audit must be submitted to the Department pursuant to 10 TAC §l.403, but CDBG-CV funds may not be used to pay for the audIt- Subawardees of the Subrecipient must comply with financial management systems in accordance with IO TAC §l.402. Subrecipient shall ensure cornpliance by subawardee, if applicable. D.Audit Review. Department reserves the right to conduct additional audits of funds received and performances rendered under this Contract. Subrecipient agrees to permit Departnlent, or its authorized representative, to audit Subrecipient’s records and to obtain any docurnent5, materials, or information necessary to facilitate such audit. E.SUIHontrKts and SUbawBrds. The Subrecipient shall include language in any subcontract or subaward that provides the Department the ability to directly review, monitor, and/or audit the operational and financial performance and/or records of work performed under this Contract. F.Certification Form. For any flsal year ending within or one year after the Contract Term, Subrecipient must submit an "Audit Certification Form- (available from the Department) within sixty (60) days after the Subrecipient's fiscal year end. If the Subrecipient's SIngle Audit is required by 2 CFR Part 200, Subpart F, the report must be submitted to the Federal Audit Clearinghouse ("FAC") the earlier of thirty (30) alendar days after receipt of the audItor's report or nine (9) months after the end of its respective fiscal year. As noted in 10 TAC §1.403(f), Subrecipient is required to submit a notification to Department wIthin fIve (S) business days of submission to the FAC. Along with the notice, indicate if the auditor issued a management letter. If there is a management letter, a copy of the letter must be sent to the Department. Both the notice and the copy of the management letter, if applicable, must be submitted by electronic mail to: SAandACF@tdhca.state.tx.us SEcrioN 7. TERMINATION AND SUSPENSION Page 6 of 32 DocuSign Envelope ID: BAFCF16$1al&48F+BGob88542Ac235&4 A.TerminatIon. Upon adequate notice, and as per 10 TAC 92.202, Department may terminate thIs Contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes, but is not limited to, Subredpient’s failure to comply with any term of this Contract or reasonable belief that Subreclpient cannot or will not comply wIth the requirements of thIs Contract. If the Department determines that a Subrecipient has faIled to comply with the ternls of the Contract, or to provide services that meet appropriate standards, goals, or other requirements established by the Department, the Department will notify Subrecipient of the deficiencies to be corrected and may require the deficiencies be corrected. Repeated instancu of not meeting the Contract Benchmarks as reflected in Exhibit A will be good cause to terminate the Contract, in the Department’s sole discretion. B.St60ension. As per 10 TAC 92.202, Departrnent may suspend this Contract, in whole or in part, at any time Department determines that there is cause for suspension. Nothing in this Section 7 shall be construed to limit Department’s authority to withhold payment and immediately suspend this Contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other deficiencies in Subrecipient’s performance. C.Liability. Department shall not be liable for any costs incurred by Subrecipient after termination or during suspension of this Contract. D.WtthhOldtnR of Payment. Notwithstanding any exercise by Department of its right of termination or suspension, Subrecipient shall not be relieved of any liability to Department for damages by virtue of any breach of this Cbntract bv Subrecipient. Department may withhold any payment due to Subrecipient until such time as the exact amount of damages due to Department or other liabiIIty is agreed upon or is otherwise determined in writing between the Parties. SECIION 8. PROHIBITED USE OF FUNDS A. B. Budget. Subrecipient may not use funds under thIs Contract for any actIvity or in any manner not reflected in ExhIbit C, Budget. Rental Pavment Restrictions. Subrecipient may not use funds under this Contract to assist a Household whose contract rent in its dwelling unit exceeds 150% of the Small Area Fair Market Rent (“SAFMR"), or where no SAFMR exists, the Fair Market Rent (“FM R"), and may not make a payment for a dwelling unit in an amount greater than 120% of the SAFMR or FMR. A Subrecipient may assist a Household with nonfedenl funds for the rental arrears for the monthly amount between 128% and 150% of Small Area Fair Market Rent or Fair Market Rent (if Small Area Fair Market Rent is not published in the jurisdiction). C.Proiect'Based and Tenant.Based Rental Assistonce. Subrecipient may not use funds under this Contract to assist a Household whose dwelling unIt also has project-based rental assistance, whose development uses project.based operating assistance, or where the tenant has a tenant.based voucher D. E. PubIIc Housing Unit. Subrecipient may not use funds under this Contract to assist a Household whose dwelling unit is a public housing unIt. AssIstance Period. Subrectpient may not assist a Household with funds under this Contract, for more than a total of sIx (6) months (rental arrears payment + current or future monthly rental payment). F.Local Government Owned Property. Subrecipient may not use funds under this Contract to assist a Household whose dwelling unIt is owned by a Unit of Local Government (as that term is defined in Page 7 of 32 [Xx:uSign Envelope ID: BAFCF16&101&46F+B66+B8542AC235B4 UGMS), unless it has prior wrItten permission from the Department (to be reviewed on a case by case basis). SEcnoN g.RECORDKEEPING REQUiREMEhrrs A.General. For purposes of compliance, all associated documentation must be readily available, whether stored electronically or hard copy to justify compliance with prograrn rules and regulations. Subrecipient shall maintain fisal and programmatic records and supporting documentation for all expenditures made under this Contract in accordance with the UGMS. B.Open Records. Subrecipient acknowledges that all information collected, assembled, or maintained by Subrecipient pertaining to thIs Contract, except records made confidential by law, is subject to the Texas Public Information Act (Chapter 552 of Texas Government Code) and must provide citizens, public agencies, and other interested parties with reasonable access to all records pertaining to this Contract subject to and in accordance with the Texas Public Information Act. C Access to Records. Subrecipient shall gIve HUD, the U.S. General Accounting OffIce, the Texas Comptroller, the State Auditor’s Office, and Department, or any of their duly authorized representatives, access to and the right to examine and copy, on or off the premises of Subreciplent, all records pertaining to this Contract. Such right to access shall continue as long as the records are retained by Subrecipient. Subrecipient agrees to cooperate with any exarnination conducted pursuant to this Subsection C. D.Record RetentIon. Subrecipient agrees to maintain such records in an accessible location for the greater of: 0) the time period described in the state Uniform Grant Management Standards, Chapter III, "State Uniform Adrninistrative Requirements for Grants and Cooperative Agreements", Subpart C - Post Award Requirements, §_.42; (ii} if notified by the Department in writing, the date that the final audit is accepted wIth all audit issues resolved to the Department’s satisfaction; (iii) if any lit@ation dairn, negotiation, inspection, or other action has started before the expiration of the required retentIon period records must be retained untII completion of the actIon and resolution of an bsues whIch arIse under it; (iv) a date consIstent wIth any other period required by the performed activity reflected in federal or state law or regulation. Upon termination of this Contract, all records are property of the Department. E.CARES Act Funds. Subrecipient shall track, account for, and report on this CDBG-CV Act funding separate from other funds. Upon request, Subrecipient shall report to the Department to extent these funds were used as match for other programs. SEcrioN IO. REPORTING REQUIREMENtS A.General. Subrecipient shall submit to Department such reports on the performance of this Contract as may be required by Department including, but not limited to, the reports specified in this Section B.By the fifteenth (15th) day of each month, Subreclpient shall electronically submit an Expenditure and Performance Report to the Department of all expenditures of funds and clients served under this Contract during the prevIous month (including a partial month), regardless of whether Subrecipient makes a fund request. Subrecipient must file a monthly Expenditure and Performance Report in a timely manner, prior to accessing funds- The failure of Subrocipient to provide a full accounting of all funds expended under this Contract shall result in the automatic suspension of the abiIIty of Subrecipient to request reimbursements and shall be identified as a finding in any monitoring review. Page 8 of 32 t>ex3uSign Envelope ID: BAFCF16&101G46F'bB66+88542AC235B4 C.Final RePorts. Subredpient shall submit a final Expenditure and Performance Report to the Department after the end of the Contract Term. Subreclpient must file a final ExpendIture and Performance Report within forty-five (45) calendar days after the end of the Contract. D.Inventory. Subrecipient shaH submit to Department no later than forty five (45) calendar days after the end of the Contract Term an inventory of all vehicles, and equipment (as defined federally and by UGMS) with a unit acquisition cost of $5,000.00 or more and/or a useful life of more than one year, if purchased in whole or in part with funds received under this Contract. The inventory shaH reflect the equipment on hand as of the last day of the Contract Term Upon the termination of this Contract, Department may transfer title to any equiprnent to the Department or to any other entity receIving federal funds from the Department. E.Default. If Subrecipient faHs to submit within forty-five {45) calendar days of its due date, any report or response required by this Contract, including responses to monitoring reports, Department may, in its sole discretion, suspend paYments, place Subrecipient on cost reimbursement method of payment, and initiate proceedings to terminate the Contract. F.Entjty Identifier Number. Subrecipient shall provide the Department with a Data Universal Numbering System ("DUNS"} number to be used as the Unique Entity Identifier Number on all contracts and agreements. The DUNS number must be provided in a document from Dun and Bradstreet must tn submitted from a document retrieved from the https://www'sam.gov website. These documents must be provided to the Department prior to the processing first payment to Subrecipient. Subrecipient shall maintain a current DUNS number for the entire Contract Term. G.Rental Assistance. During the Contract Term, reimbursements from rental arrears or rental assistance payments must be reported to the Department in the next monthly Expenditure and Performance Report and spent on qualifying rental arrears or rental assistance payments. SEcrioN ll. CHANGES ANDAMENDMEMrs Amendments and Required Changes by law. Any change, addition, or deletion to the terms of thb Contract required by a change in state or federal law or regulation is autornatically incorporated herein and is effective on the date designated by such law or regulations without the requirement of a written amendment hereto. Said changes, additions, or deletions referenced under this Section 11 of this Contract may be further evidenced in a written amendment. B.General. Except as specifically provided otherwise in this Contract, any changes, additions, or deletions to the terms of this Contract not required by a change in state or federal law or regulation shall be amended in writing and executed by both Parties to this Contract. C. D. Electronic Signatures. If any Party returns an executed copy by electronic transmission, the signing party intends the copy of its authorized signature, to be its original signature. Mendment Requests. The Department must receive any Contract amendment requests in writing. SEcrioN 12. PROGRAM INCOME A General. Subrecipient shall account for and expend program income derived from activities financed in whole or in part with funds provided under this Contract in accordance with the state Uniform Grant Management Standards, more specifically Chapter III, "State Uniform Administrative Requirements For Grants and Cooperative Agreements”, Subpart C – Post-Award Requirements– Financial AdministratIon, 6 .25, Program Income, 2 CFR S200.80, and 10 TAC 96.205(c). Page 9 of 32 DIx:uS19n Enwlqn ID: BAFCF16&lol&deF+B664-B8542Ac235B4 B.Reimbyrwrrlent. During and after the Contract Term, Subrecipient will return refunds or nimbur5ements from rental arrears, rental assistance payments, rental deposits, or utility deposits, or any other program Income to the Department wIthIn ten (10) days of receIpt. Program income any sutxontractor, or subawardee receives, must also be returned to the Department wIthIn ten (10) calendar days. ThIs requirement must be listed in the Subrecipient's agreement with subcontractor or subawardee. SECTION 13. TECHNICAL ASSurANCE AND MONITORING Department may issue technical guidance to explain the rules and provide directions on terms of this Contract. Department or its designee may conduct periodic on-site monitoring and evaluation of the efficiency, economy, and efficacy of Subrecipient’s performance of this Contract. Department will advise Subrecipient in writing of any deficiencies noted during such monItorIng. Department will provide technical assistance to Subrecipient and will require or suggest changes in Subrecipient’s program implernentation or in Subrecipient’s accounting, personnel, procurement, and management procedures in order to correct any defIciencies noted. Department may conduct follow-up visits to review and assess the efforts Subrecipient has made to correct previously noted deficiencies. Department may place Subrecipient on a cost reimbursement method of payment, suspend or terminate thIs Contract, or invoke other remedies in the event monitoring or other reliable sources reveal material deficiencies in Subrecipient’s performance or if Subrecipient fails to correct any deficiency within the time allowed by federal or state law or regulation or by the terms of this Contract SEatoN 14. iNDEPENDEVr SUBRECIPIENT Subrecipient is an independent contractor. Subrecipient agrees to hold Department harmless and, to the extent allowed by law, indemnify it against any disallowed costs or other claims which may be asserted by any third party in connection with Subrecipient’s performance of this Contract. SEcrioN IS. PROCUREMENT SIANDARDS A.Subrecipient shall comply with UGMS and 10 TAC $1.404, this Contract, and all applicable federal, state, and local laws, regulatIons, and ordinances for makIng procurement transactions and purchases under this Contract. B.Subrecipient may not use funds provided under this Contract to purchase equipment (as defined federally or by UGMS) with a unit acquisition cost (the net invoice unit price of an hem of equipment) of more than Ssm.(x), or on any vehicle purchase unless Subrecipient has received the prior written approval from the Department for such purchase. SECTION 16. suBCONiRAcrs A,Subrecipient, in subcontracting for any performances described in thIs Contract, expressly understands that in entering into such subcontract$ TDHCA is in no way liable to the Subreciptent's subcontractods}. All subcontracts must be for goods or services and paid out of administrative funds. Subcontractors must be procured in accordance with 2 CFR Part 200, UGMS, and IO TAC §l.404. B.Subrecipient has the responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all Contract terms and as if such performances rendered were rendered by Subrecipient. Department maintains the right to monitor and require Subrecipient's full compliance wIth the terms of this Contract. Page 10 of 32 DcwSlgn Envdope ID: 8AFCF16&rol&48F4-8664.B88t2AC23584 SEcrioN 17. SUBAWARDS A.Subrecipient may request to the Department to enter into a subaward to a unit of local government, council of government, public housing authority, or prt%te nonprofit organization for some or all of its program and 3drnlnistntive funds through a dIrect (non-competktve) award. The Subreciplent must fulfil all of the requirement of a pass-through entitY lbted in 24 CFR §2CX).332, and must monitor Its subawardee at least once during the Contract Term. B.Any subaward must contain all the applicable terms and conditions required by federal and state requirements and as further reflected this Contract including but not limited to items spectficalty identified in this Cbntract, 2 CFR 92(X).332, and 2 CFR Part 2(X) Appendix II (as applicable) . C.Subrecipient must provide the Department with the applicable contact information for all subawards to ensure that aocurate contact information b available relating to both rental assIstance and eviction diversion activities to include in a list of resources for landlords/tenants. Subawardees may not further subaward funds. D.Before entering into a contract or other agreement with a subawardee, Subrecipient must: 1) check the Federal and State debarment and suspended lbts of both the Department (all subawardees) and Texas Department of Agricutture (only if the subawardee is a non-entitlement city or county) for the entity and for governing hard members of subawardees; 2) ensure that the entity (if applicable) is current on its Single Audit submission to the Federal Audit Clearinghouse; 3) request a disclosure for matters under 2 CFR $2ex).113, 2 CFR Part 200 Appendix XII, 24 CFR Part 9, or the Fair Housing Act; and 4) provide the Department this information on the Department’s form by February 15. 2021. E.The Subrecipient, in suI)awarding for any performances described in this Contract, expressly understands that in entering into such subawards, the Department is in no way liable to the Subrecipient's subawardee(5). Department’s approval under this Section 17 does not constitute adoption, ratification, or acceptanoe of Subrecipient’s or subawardee’s performance hereunder. Department maintains the right to monitor and require Subrecipient’s full compliance with the terms of this Contract. Department’s approval under thIs Section 17 does not waive any right of action which may exist or which may subsequently accrue to Department under this Contract. SEcrioN 18. TRAVEL Subrecipient shall adhere to 2 CFR Part 200 and either Its board.approved travel policy (not to exceed the amounts established in suI>chapter 1 of Chapter 57 of TItle 5, United States Code "Travel and Subsistence Expenses; Mileage Allowances), or the State of Texas travel policies. Subrecipient’s written travel policY shaH delineate the rates which Subrecipient shall use in computIng the travel and per diem expenses of its board members and employees. SEcrION lg. LITIGATION ANDCLAIMS Subrecipient shaH immedIately provide Department with written notice of any claim or action filed with a court or administrative agencY agaInst Subreclpient arIsing out of the performance of this Contract or any subcontract hereunder. Subrecipient shall provide Department with copies of any and all relevant papers Subrecipient receives with respect to such action or claim. SEcrioN 20. LEGAL AUTHORrrY A.Legal Auth(Mtv. Subredpient assures and guarantees that it possesses the legal authority to enter into this Contract, to receive and manage the funds authorized by this Contract, and to perform the services Subreclplent has obligated itself to perform hereunder. TIle execution, delivery, and Page 11 of 32 DcxruStgn Envelope ID: BAFCF16&IQ1&48F4B88+B8542AC235B4 performance of this Cnntract will not violate Subrecipient’s oonstitutive documents or any requirement to wh}ch Subrecipient is subject and represents the legal, valid, and binding agreement of Subrecipient, enforceable in accordance with its terms. B.Signature Autttorltv. The person signing thIs Contract on behalf of Subrecipient hereby warrants that he/she has been duly authorIzed by Subreclplent's governing body to execute this Contract on behalf of Subreciplent and to validly and legally bind Subrecipient to the terms, provisions and performances hereIn. C.Tan$nation: LiabIIIty. Department shall have the rIght to terminate this Contract if there is a dispute as to the legal authority of either Subrecipient or the person sening this Contract on tnhalf of Subrecipient to enter into this Contract or to render performances hereunder. Subrecipient is liable to Department for any money it has received from Department for performance of the provisions of this Contract, if the Department has termInated this Contract for reasons enumerated in this Section 20. D.MerBqr: Default Subrecipient understands that it is an event of default under this Contract if the Subreciplent liquldates, terminates, dissotves, merges, consolidates or fails to maintain good standing in the State of Texas, and such is not cured prior to causing material harm to Subrecipient’s ability to perform under the terms of thIs Contract. SEcnoN 21. COMPLIANCE wrrH LAWS Federal, State and Local law. Subrecipient shall comply with the CARES Act, the Housing and Community Development Act of 1974, the CDBG and CDBG-CV federal rules and regulations the certifications attached hereto, and all federal, state, and local laws and regulations applicable to the performance of this Ck)ntract. Subrecipient shall not violate any federal, state, or local laws, stated herein or otherwise, nor commit any Illegal activity in the performance of or associated with the performance of this Cbntract. No funds under this Contract shall be used for any illegal activity or activity that violates any federal, state, or local laws. B.Drug'Free WorkPlace Act of 1988. The Subrecipient affirms by signing this Contract and Addendum B that it is implementing the Drug-Free Workplace Act of 1988 (41 USC 6701, et seq). must ensure equal access to services by non-English speakIng resIdents. Subreclpient must provIde program applicatIons, forms, and educational materials in English, Spanish, and any appropriate language, based on the needs of the service area and in compliance with the requirements in Executive Order 13166 of August 11, 2(XX) reprinted at 65 F.R 50121, August 16, 2(XX) Improving Access to Services with LEP at 67 F.R. 41455. To ensure compliance, the Subrecipient must take reasonable steps to insure that persons with LEP have meaningful access to the program. Meaningful access may entail providing language assistance services, including oral and written translation, where necessary. Subrecipient D.InformOtiQn Swuritv end Pd mev Requirements. 1. Genenl. Subreciplent shall comply with the information security and privacy requirements under 10 TAC §l.24 to ensure the securIty and privacy of Protected Information (as said term is defined under 10 TAC 91.24). 2. InformatiQn SecurIty Bnd Privacy ARreement {"ISPA”). Prior to beginning any work under this Contract, Subrecipient shall either (i) have an effective, fully executed ISPA, as required by 10 TAC §l.24, on file with the Department, or (ii) will execute and submit to the Department an ISPA in accordance with instructions found on the Department’s website at the “Information Security and Page 12 of 32 DocuSlgn EnvdoW ID: BAFCF16&10IG48F4-B864.B8542AC235B4 Pdvacv Agreement- link. TIle requirements of the ISPA must be incorporated into an agreement with any subcontractor orsubawardee, as applicable. Subrecipient and its contractors must comply with Section 106(g) of the Trafficking VIctims Protection Act of 2CXIO, as amended (22 U.S.C. S71CH et seq.). If Subrecipient or its contractor or subcontractor engages in, or uses labor recruIters, brokers or other agents who engage in any of the prohibited activities under Sectbn :106(g) of the Trafficking Victims Protection Act of 2000, Department may terminate this Contract and Subrecipient hereby agrees and acknowledges that upon termination, Subrecipient 's rights to any funds shall be terminated. F.Section 3. If Subrecipient’s project contains covered activities not paid for CDBG£V funds, Subrecipient agrees to comply with HUD's regulatIons in 24 CFR Part 75, which implement Section 3 of the Housing and Urban Development Act of 1968, as amended. As evidenced by their execution of this Contract, the parties certify that they are under no contractual or other Impediment that would prevent them from complying with 24 CFR Part 75. G.teed-based Point. Emergency Rental Assistance under TERAP or TEDP for current rental payments covering an excess of 1(D days, is subject to the Lead Safe Housing Rule ("LSHR”) requirements and Subrecipient must follow the requirements of 24 CFR Part 35 Subpart K, whether occupied by a child less than six years or not. Subpart K requires that almost all dwelling units built prior to January 1, 1978 that receive Federal assistance undergo a visual assessment for deteriorated paint (insIde, outside and all common areas) by a trained grantee or subredpient. The results of the visual assessment must be documented. Should deteriorated paint be identified, Subrecipient must follow the compliance steps to property address the deterIorated painted surfaces, detaIled in Subpart K. A list of exemptions to the LSHR, steps to comply with Subpart K, and associated resources can be reviewed here: https://portalapps.hud .gov/CORVID/HUDLBPAdvisor/welcome.html. SEcrioN 22. ENVIRONMEMALCIEARANCEREQUIREMEMS The Department has performed a state-wide environmental review under 24 CFR $58.35(b){2) for this emeBencv rental assistance activity. Subrecipient wilt not have to perform individual environmental reviews. SEcrION 23.CITIZEN PARTICIPATION REQUIREMENTS and COMPIAINTS A.atizen Participation. In accordance with Section 2105.058 of the Texas Government Code, Subredpient must conduct a public meeting at least annually to seek public comment on the needs or uses of CDBG-CV funds. B.Complaints. Subrecipient must provide residents the address, phone number, email (if applicable) and times for submitting complaints and grievances, and provide timely written answers to complaints and grievances, within fifteen (15) working days where practicable. C.Subaward ARreement+. Subreclpient must Incorporate the provisions of this Section 23 into Its agreement with any subawardee that receives more than $5,000 in CDBG.CV fundIng and of thIs Section 23B wIth any subawardee. SECTION 24. PREVENTION OF WASTE, FRAUD, ABUSE, and DUPLICATION OF BENEFITS A.Subrecipient shaH establish, maintain, and utilize systems and procedures to prevent, detect, and correct waste, fraud, and abuse in actIvities funded under this Contract. The systems and procedures shall address possible waste, fraud, and abuse by Subrecipient, its employees, clients, vendors, subcontractors and administering agencies. Subrecipient's internal controls systems and all transactIons and other significant events are to be clearly documented, and the documentation is to be readIly avaIlable for monItoring by Department. Page 13 of 32 DocuStgn EIwelope ID: BAFCF18>101&48F+BB&+88542AC235&4 B.Subrecipient shall establish and maintain adequate procedures to prevent any duplication of benefits as required by sectIon 312 of the Robert T. Stafford Disaster Relief and EmergencY Assistance Act (42 U.S.C. SIS5), as amended by section 1210 of the Disaster Recovery Reform Act of 201$ {division O of Public Law 115–254; 132 Stat. 3442). C.Subrecipient shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the caBe.cv program. Subreciplent shall immediately notify Department of any discovery of waste, fraud, or abuse. Subrecipient shaH fully cooperate wIth Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. D.Subrecipient shall not discriminate against any employee or other person who reports a violation of the terms of this Contract, or of any law or regulation, to Department or to any appropriate law enforcement authority, if the report is made in good faIth. E.Subrecipient is prohIbited from selling, trading, or otherwise transferrIng all or any such portion of such funds to another such entity in exchange for any other funds, credits or non-Federal considerations, and must use such funds only for eligible activities, in this case, emergency rental assistance. F.Subaward. Subredpient must incorporate the provisions of this SectIon 24 into its agreement with any subawardee. SEcrION 25. CErrIFICATION REGARDING UNDOCUMENTED WORKERS Pursuant to Chapter 22@1 of the Texas Government Code, by execution of this Contract, Subrecipient hereby certifies that Subrecipient, or a branch, division, or department of Subrecipient does not and win not knowingly employ an undocumented worker, where “undocumented worker" means an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to be employed in that manner in the United States. If, after receiving a public subsidy, Subrecipient or a branch, division, or department of Subrecipient is convicted of a violation under 8 U.S.C. §1324a(f), Subrecipient shall repay the public subsidy wIth interest, at the rate of five percent (5%) per annum, not later than the 12CYt' day after the date the Department notifIes Subrecipient of the violation. SEcrioN 26. coNFUcr OF IHTEREST/NEPOTISM A.Subrecipient shall maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts. Failure to maintain written standards of conduct and to follow and enforce the written standards is a condItion of default under this Contract. In addition, the written standards must meet the requirements in 2 CFR §2CX).318. B.No employee, officer, or agent of Subrecipient shall participate in the selection, award, or administration of a contract supported bY federal funds if a real or apparent conflict of interest would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organIzation which employs or is about to employ any of the Parties indicated herein, has a financIal or other Interest in the fIrm selected for an award. ThIs also applies to the procurement of goods and services under 24 CFR S§2CX).317 and 2CX).3186. C.TIle of6eers, employees, and agents of the Subrecipient shall neither solicit nor accept gratutties, favors, or anything of monetary value from contractors, or parties to sub.agreements. Subrecipient may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct shall provide for disciplinary actions to tn applied for violations of such standards by officers, employees, or agents of the Subrecipient Page 14 of 32 DowSign Envelope ICL BAFCF16&1Cll&+6F+B664B8542AC235 Bl D. E. FaIlure to maintain written standards of conduct and to follow and enforce the written standards is a oondition of default under this Contract and may result in termination of the Cnntract or deobligation of funds. Subrecipient must incorporate the provisions of this Section 26 with any subcontractor or subawardee. SEcnoN 27. POLrllCALAcrlVITY AND LEGISLATIVE INFLUENCE PROHiBrrED A.None of the funds provided under this COntract shall tn used for influencing the outcome of any electbn, or the passage or defeat of any legislative measure. Thb prohibition shall not be construed to prevent any state official or employee from furnIshing to any member of Its governIng body upon request, or to any other local or state official or employee or to any citizen, information in the hands of the employee or official not considered under law to be confidential information. B.NO funds provided under thIs Contract may be used directly or indirectly to hire employees or in any other way fund or support candidates for the legislative, executive, or judicial branches of government, the State of Texas, or the government of the United States. C.None of the funds provIded under this Contract shall be used to pay any person or organization for influencing or attempting to influence an offIcer or employee of any 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 governed by the Byrd Anti-Lobbying Amendment (31 U,S.C. §1352) as the Subrecipient and each of its tiers have certified by their execution of the “CertIfication Regarding Lobbying for Contracts, Grants, Loans, and CooperatIve Agreements” attached hereto as Addendum A and incorporated herein for all relevant purposes. SEaioN 28. NON-DISCRIMINATION, EQUAL ACCESS AND EQUAL OPPorruNiw A.Non-DiscriminatIon. A person shall not be excluded from participation in, be denied the benefits of, be subjected to discriminatIon under, or be denied employment in the adrninistration of or in connection with any program or activity funded in whole or in part with funds rnade available under this Contract, on the grounds of ra a color, religion, sex, national origin, age, familial status, disability, or political affiliation or belief. B.Equal OpportunIty. Subrecipient agrees to carTy out an Equal Employment Opportunity Program in keeping with the principles as provided in PresIdent’s Executive Order 11246 of September 24, 1965, as amended, and Its ImplementIng regulations at 41 CFR Part 60 . a D. Affillltatively Further Fair Housing. Subrecipient must affirmattvety further fair housing to iAclude but is not limited to marketing the program to those least likely to apply. Accessibility. Subrecipient must meet the standards under (i) Section S04 of the Rehabilitation Act of 1973 (S U.S.C. 6794) Titles II and III of the Americans with Disabilities Act (42 U.S.C. §§12131-12189; 47 U.S.C §§155, 201, 218 and 255) as implemented by U. S. Department of Justice at 28 CFR Parts 35 and 36. Subrecipient shall follow the Department’s accessIbility rules in 10 TAC Chapter 1, SuE>chapter B. Subrecipient shall operate each program or actIvity receIvIng financIal assistance so that the program or activity, when viewed in Its entIrety, is readily accessible and usable by individuals with disabilities. Subreciptent is also required to provide reasonable accommodations for persons with disabilities. SEcrION 2g. MAiirrENANCE OF EFFORT Page 15 of 32 DawSOn &HeWn ID: BAFCF16BIOIG+6F+B66+B8542AC235B4 Funds provided to Subrecipient under this Contract may not be substituted for funds or resources from any other source or in any way serve to reduce the funds or resources which would have been available to or provided through Subrecipient had this Contract never been executed. SEcrION 30.PREVIOUS PARriCIPATION REVIEW DEBARRED AND SUSPENDED PARTIES A.All entities will be subject to a Previous PartIcipation Review by the Department, as outlined in 10 TAC 91.302. Pursuant to 24 CFR Part 5, all CDBG£V applicants are requIred to verify that they and their principals, or any/all persons, contractors, consultants, businesses, subawardees, etc., that will be conducting business with the applicant as part of the rental assistance activity are not presently debaned, proposed for debarment, suspended, declared ineIIgible, or voluntarIly excluded from participation in the covered transaction or in any proposal submitted in connection wIth the cwered transaction. B.The Department will not award any CDBG-CV funds to organizations that are debarred, suspended, proposed for debarment, and declared ineIIgible or voluntarily excluded from participation from federal or state assisted programs, or that are proposing to partner, contract, or otherwise fund rental assIstance activities through an organIzatIon that is debarred, suspended, proposed for debarment, or otherwise Ineleible from participation in federally assisted programs. If an organIzatIon has a member of its governing body that has this status, the Department will allow the member to resign so that the orBanization ean enter into a Contract with the Department. C.By signing thb Contract, Subrecipient certifies that its princIpal employees, board rnernbers, agents, or contractors are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or agency as provided in the Certifiation Regarding Debarment, Suspension and Other Responsibility Matters attached hereto as Addendum C and incorporated herein for all relevant purposes. The terms "covered transaction”, “debarred", “suspended’, “ineligible", “lower tIer covered transaction’, “participant", “person”, “primary covered transactIon", “prIncIpal“, “proposaF, and “voluntarily excluded”, as used in the certification attached as Addendum C, have the meaning set out in the Definitions and Coverage sections of rules implementIng Executive Order 12549. D.Subruipient also certifies that it will not knowingly award any funds provided by this Contract to any person who is proposed for debarment under 48 CFR Part 9, Subpan 9.4 or that is debarred, suspended, or otherwise excluded from or ineligible for particIpation in federal assistance programs under Executive Order 12549. Subreclpient agrees that prior to entering into any agreement with a potential subcontractor that the verification process to comply with this requirement will be accomplished by checking the System for Award Management (“SAM”) at www.sam.gov and including a copy of the results in its project files. After said verification, Subrecipient may decide the frequencY by which it determines the eligibility of its subcontractors during the term of subcontractor’s agreement. Subrecipient may subsequently rely upon a certification of a prospective subcontractor that is not proposed for debarment under 48 CFR Part 9, Subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless Subreciplent knows that the certification is erroneous+ E Failure of Subrecipient to furnIsh the certIficatIon attached hereto as Addendum C or an explanation of why it cannot provide said certifIcation shall disqualify Subrecipient from participation under this Contract. The certification or explanation will be considered in connection with the Department’s determinat}on whether to continue with this Contract. Subrecipient shall provide ImmedIate written notice to Department if at any time Subrecipient learns that the certificatIon was erroneous when submitted or has become erroneous by reason of changed circurnstances. Subrecipient further agrees by executing this Contract that it will include the certIfication provIsion titled "CertificatIon Regarding Page 16 of 32 DowSign Envelope tO: BAFCF16$1al&46F+B68hB8542Ac235B4 Debarment, Suspension, Ineligibility and Voluntary Exclusive-Subcontracts," as set out in Addendum C, without modIfication, and this language under this Section 30, in all its subcontracts. SEatoN 31. FAITH BASED AND SECIARIAN AcrlvrrY Funds provided under thb Contract may not be used for explicItly religious activities, such as worship, religious instruction, or proselytb3tion, as part of the programs or services funded with direct financial assistance from the Department. If an organization conducts such activities, the activities must be offered separately, in tirne or location, from the programs or services funded with direct financial assistance from the Department, and participation must be voluntary for beneficiaries of the programs or services funded with such assistance Subrecipient shall comply with the regulations in 24 CFR 65.109 . SEcrioN 32 a COPYRIG}H Subrecipient may copYright materials developed in the performance of this Contract or wIth funds expended under this Contract. If copyrighted materials are developed in the under this Contract, the Department and HUD shall each have a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use, and to authorize others to use, the copyrighted work for government purposes, SECIION 33. NO WAIVER Any right or remedy given to Department by this Contract shall not preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or rernedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SEatoN 34. S£VERABILrrY If any sect}on or provision of thIs Contract is held to be invalid or unenforceable by a court or an administrative tribunal of competent jurisdiction, the remainder shall remain valid and binding. SECTION 35. ORAL AND WRiTrEN AGREEMENTS A.All oral and written agreements between the parties to this Contract relating to the subject matter of this Contract have been reduced to writing and are contained in this Contract. B.TIle attachments enumerated and denominated below are a part of this Contract and constItute promIsed performances under thIs Contract: 1. 2 3 4. S. 6. Addendum A - Certification RegardirB Lobbying for Cbntracts, Grants, Loans, and Cooperative Agreements Addendum B - Certification Regarding Drug+ree Workplace Requirements Addendum C - CertIfication Regarding Debarment, Suspension and Other Responsibility Matters Exhibit A . Contract Benchmarks Exhibit B – Performance Statement and Benchmarks ExhibIt C –Budget SEcrioN 36. USE OF ALCOHOLIC BEVERAGES Funds provided under this Contract may not be used for the payment of salaries to any Subrecipient's employees who use alcohoIIc tnverages while on active duty, for travel expenses expended for alcoholic beverages, or for the purchase of alcoholic beverages. SEcrION 37. FORCE MAIURE Page 17 of 32 DoeuSign Envdope ID: BAFCF16&lol&46F'bBeot-B8912A0235B4 If the obleatlons are delayed by the following, an equitable adjustment will tn made for delay or failure to perform hereunder: A.Any of the following events: (i) catastrophic weather conditions or other extraordinary elements of nature or acts of God; (ii) acts of war (declared or undeclared), (ni) acts of terrorism, insurrection, riots, civil disorders, rebellion or sabotage; and (iv) quarantines, disease pandemio, embargoes and other similar unusual actions of federal, provincial, local or foreign Governmental Authorities; and B.The non-performing party is without fault in causing or failing to prevent the occurrence of such event, and such occurrence could not have been circumvented by reasonable preautions and could not have been prevented or cIrcumvented through the use of commercially reasonable alternative sources, workaround plans or other means. SEcrION 38. ALTERNATIVE DISPUTE RESOLLrrION In accordanoe with Section 2306.082 of the Texas Government Code, it is the Department’s policY to encourage the use of appropriate alternative dispute resolutIon procedures (“ADR") under the Governmental Dispute Resolution Act and the NegotIated Rulemaking Act (Chapters 2(X19 and 2CXJ6 respectively, Texas Government Code), to assist in the fair and expeditious resolution of internal and external disputes involving the Department and the use of negotiated rulemaking procedures for the adoption of Department rules. As described in Chapter 154, Civil Practices and Remedies Code, ADR procedures include mediation. Except as prohibited by Department’s ex parte communications policy, Department encourages informal communications between Department staff and the Subrecipknt, to exchange information and informally resolve disputes. Department also has admInIstratIve appeals processes to fairly and expeditiously resolve disputes. If at any time the Subreciplent would like to engage Department in an ADR procedure, the Subrecipient may send a proposal to Department’s Dispute Resolution Coordinator. For additional information on Department’s ADR policy, see Department’s Alternative Dispute Resolution and Negotiated Rulemaking at 10 TAC Sl.17 SEcrION 3g. TIME IS OF THE ESSENCE Time is of the essence with respect to Subrecipient’s compliance with all covenants, agreements, terms and conditions of this Contract. SEcrION 4D. COUNrERPARTS AND FACSIMILE SIGNATURES This Contract may be executed in one or more counterparts each of which shall be deemed an original but an of which together shall constitute one and the same instrument. Signed signature pages may be transmitted by faaimile or other electronic tnnsrnission, and any such signature shall have the same legal effect as an original. SEatoN 41. NUMBER, GENDER Unless the context requires otherwIse, the words of the masculine gender shall include the feminIne, and singular words shall include the plural. SEcrION 42. NOTICE A.K a notice is provided concerning this Contract, notice may be given at the folk>wing (“Notice Address“): As to Department: Page 18 of 32 Dacu Sign Envdope ID: aAFCF16blol&46F+%6&B8$42Ac235 B4 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS P. O. Box 13%1 Austin, Texas 78711-3941 Attention: Mariana Salazar, Director of CDBG CARES Telephone: {512) 655-9616 mariana.salazar@tdhca.state.tx.us As to Subredpieat: City of Denton 215 E McKinney Street Denton, TX 76201 Attention: Todd Hileman, City Manager Telephone: 949-349.8560 Email: todd.hileman@cttyofdenton.com B.All notices or other communications hereunder shall be deemed given when delivered, mailed by overnight service, or five (5) days after mailing by certified or registered mail, postage prepaid, return receipt requested, addressed to the appropriate Notice Address as defined in the above Subsection A of this Section 42. C.Subrecipient shall provide contact information to the Department in accordance with 10 TAC 96.6. SEcrioN 43. VENUE AND JURISDICIION This Contract is delivered and intended to be performed in the State of Texas. For purposes of litigation pursuant to this Contract, venue shall lie in Travis County, Texas. SErmoN 44.DENIAL OF SERVICE APPEALS PROCESS FOR HOUSEHOLDS A.Subrecipient must establish a written denial of seNioe complaint procedure to address written complaints (or an oral complaint if a person with a disability requests a reasonable accommodation based on their disability) from a Household or landlord. This appeal procedure is not appliable to a Household if the landlord declines to participate in the program. B.If a Household's denial is solely based on income eligibility, this complaint procedure would not apply, but the Household may request a recerttfiation of incorne eligibility based on initial documentation provided at the time of the original application. The recertification will be an analysis of the initial calculation based on the documentation received with the initial application for services and must be performed by an individual other than the person who performed the initial determination. If the recentfication upholds the Household’s income as ineligible, the Household must be notified in writing C.If the Household is not satisfied with the Subrecipient’s decision under the service complaint procedure, the Household may appeal the decision in writing (or telephonically tf a person with a disability requests a reasonable accommodation based on their disabiIIty) to the Department within ten (10) calendar days of notification of an adverse decision. D.Households who allege that the Subrecipient has denied all or part of a service or benefIt in a manner that is unjust, violates discrimination laws, or without reasonable basis in law or fact, may request a contested hearing under Tex. Gov't Code, Chapter 2001. The hearing shall be conducted by the State Office of Administrative Hearings on behalf of the Department in the locality served by the Subrecipient, for which the procedures are further described in 10 TAC 61.13 {relating to Contested Case Hearing Procedures). If the Household appeals to the Department, Subrecipient's CDBG-CV funds Page 19 of 32 DcxuSlgn EIwdope ID: BAPCF16&10IG46F+B66+B8$42AC235B4 that could be pledged to that Household should remain unencumbered until the Departntent completes the appeal process. SEcrION 45. ASSIGNMENT This Contract is made by Department to Subrecipient only. Accordingly, it is not assignable wIthout the written consent and agreement of Department, which consent may be withheld in Department's sole discretion. SEcnoN46. UMrrATioN ON ABORTION FUNDING A.Pursuant to Chapter 2272 of the Texas Government Code, to the extent allowed by federal and state law, the Department may not enter into this Contract with an “atx)rtion provider" or an “affiliate" of an abortion provider, as said terms are defined thereunder, if funds under this Contract are appropriated from state or local tax revenue. B.By execution of this Contract, the Subrecipient hereby cert}fies that, as a condition of receipt of any funds under this Contract from state or local tax revenue, it is eligible to reoeive said funds, and that it will not utilize said funds in any way contrary to this Section 46 during the Contract Term. Page 20 of 32 Ck>cuSign Enveklw ID: BAFCF16$1016-t6F4B66+B8542AC23584 EXECUTED to be effective on January 15, 2021. SUBRECIPIEMr: CIty of Denton, a political subdIvIsIon of the State of Texas By: Name: Title: atv Manager Date: 1/15/2021 1 4:04:54 PM PST tIed bytill €HtLhML DEPAFIMENT: TEXAS DEPARTMENT OF HOUSING AND coMMUNrrY AFFAIRS, a public and official agency of the State of Texas By: Name: Btle: Its duly authorized officer or representative Date: 1/15/2021 1 7:47:01 Pn CST Page 21 of 32 DowSign Erwelope ID: BAFCF16&101&46F+B66+B8542AC235B4 TEXAS DEPARTMEMr OF HOUSING AND COMMUNITY AFFAIRS FY2020 coMMUNrrY DEVELOPMENT BLOCK GRANT Coronavirus AId, Relief, and Economic Security Act (-CDBG CARES” or “CDBG-CV") Texas Emergency Rental Asslstanae Program (“TERAP”) and Texas EvictIon DIversIon Program (qEDP”) ADDENDUM A CERTIFICATION REGARDING LOBBYING FOR coNrRAcrs, GRAhrrs, LOANS. AND COOPERATIVE AGREEMENTS The undersigned certtfies, to the best of Its knowledge and belief, that: 1.No Federal appropriated funds have been paid or will in paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member ofCnngress, 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 Mem&r of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submIt Standard Form .LLL, "Disclosure Form to Report Lobbying,- in accordance with its instructions. 3.The undersIgned shall require that the language of this oentfication be included in the award documents for all subawards at all tiers (including subcontracts, sutBrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipient5 shall certify and disclose accordingly. This certification is material representation of fact on which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, TItle 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penatty of not less than $10,CXJO and not more than $100,0(D for each such failure. STATEMEHI FOR LOAN GUARANTEES AND LOAN INSURANCE The undersigned states, to the best of its knowledge and belief, that: If any funds have b8en 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 this commitment providing for the United States to insure or guarantee a loan, the undersigned shall complete and submit Standard Form-LU, “Disclosure Form to Report Lobbying," in accordance with its instructions. Submission of this staternent is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required statement shall be subject to a civil penalty of not less than 510,m and not more than $100,000 for each such failure. Page 22 of 32 DawSOn En@ape ID: BAFCF16&10IG46F4-B86&B8542AC235B4 SUBRECIPIENT: CitY of Denton, a political SIRidivisIon of the State of Texas BY: Name: Btle: atyManager Date: 1/15/2021 1 4:04:54 m PST CkKlu+ndhp bIAhAl IBAO0454wdm Page 23 of 32 DoarSlgn Ewdoln Ity BAFCF16S101&+6F4.B86&B8542AC235B4 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FY2020 COMMUNITY DEVELOPMEHI BLOCK GRANT G>ronavlrus AId, Relief, and EconomIc SecurIty Act {“CDBG CARES” or “CDBG£V”} Texas Emergency Rental AssIstance Program (“TERAP) and Texas Eviction DIversIon Program {“TEDP'’) ADDENDUM B CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMEHTS Thb cert#ration is required by the regulations implementing the Drug.Free Workpkrce Act of 1988: 4S CFR Part 76, Subpart, F. Sections 76.630(c) and (d)(2) and 76.645 (a){1) and (b) provide that a Federal agency may designate a central receipt point for STATE.WIDE AND STATE AGENCY-WIDE certifkntions, and for notifIcation of cdminat drug corwictions. For the Department of Health and Human ServIces, the central point Is: Division of Grants Management and OversIght, OfFice of Management and AcquIsitIon, Department of Health and Human Services, Room 517-D, 200 Independence Avenue, SW Washington, DC 20201. The undersigned certifies that it will or will continue to provide a drug-free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensin& possession, or use of a controlled substance is prohibited in the grantee’s workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about- (1) The dangers of drug abuse in the workplace; (2) The grantee’s poIIcy of maintainIng a drug-free workplace; (3) Any available drug counselin& rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); {d) Notifying the employee in the statement requIred by paragraph (a) that, as a condition of employrnent under the grant, the employee will. (1) Abide by the terms of the staternent; and (2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction; (e) Notifying the agency in wdtin& within ten ( 10) alendar days after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers ofconvlcted employees must provide notice, Including position title, to every grant officer or other designee on whose grant activitY the convicted employee was working, unless the Federal agency has designated a central poInt for the receIpt of such notices. NotIce shall Include the IdentifIcation number(s) of each affected grant; (f) Taking one of the following actions, within thirty (30) calendar days of receiving notice under paragraph (d){2), with respect to any empk}yee who is so convicted- (1) Taking appropriate personnel action against such an employee, up to and including termInation, consistent wIth the requirements of the Rehabilitation Act of 1973, as amended; or Page 24 of 32 Dex:uSign Envdop ID: 8AFCFr6&lol&46F+8B64-B8542Ac23584 (2) Requiring such employee to participate satisfactodly in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agencY; (B) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs £a), (b), (c), {d), te) and (f). Place(s) of Performance [site(s) for the performance of work done in connection with the specific grant] (include street address, cIty, county, state, zip ode): 1. 401 N. Elm Street Denton, TX 76201, DentOn Cbunty 2 3 4 Workplace identifications must include the actual address of buildings (or parts of buIldings) or other sItes where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio studios). IfSubrecipient does not identify the workplaces at the time of application, or upon award, if there b no application, the Subrecipient must keep the Identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the Subreclpient’s drug-free workplace requirements. This certification is a materIal representation of fact upon which reliance is placed when the Department awards the grant. If tt is later determined that Subrecipient knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, Department, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug.Free Workplace Act SUBRECIPIENT: CItY of Denton, a political subdivision of the State of Texas DrnuUnd bIn Todd Hile By: Name: TItle: City Manager Date:1/15/2021 1 4:04:54 PR PST Page 25 of 32 DawSOn ConloN ID: 8AFCF16&101&46F+B88+BB542AC235B4 TEXAS DEPARTMEVr OF HOUSING AND COMMUNITY AFFAIRS FY2020 coMMUNrrY DEVELOPMEvr BLOCK GRANT Coronavtrus AId, ReIIef, and EconomIc Snudtv Act (“CDBG CARES” or “CBBC-CV”) Texas Emergency Rental Assistance Program (“TERAP’) and Texas EvictIon DIversIon Program ('nDP”) CONTRACr NO. 70200001013 ADDENDUM C CERTIFICATION REGARDING DEBARMENT, SUSPENSION AND OTHER RESPONSIBIUTY MATrERS The undersigned certifies, to the best of its knowledge and belief, that it and its prIncIpals: (a) Are not presently debaned, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency; (b) Have not within a three-year perbd preceding this proposal been convicted of or had a dvll judgment rendered agaInst them for commIssion of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsIfication or destruction of records, making false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in section (b) of this certification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions {Federal, State or local) terminated for cause or default. (e) Will submit to the Department information about each proceeding that occurs during this Contract Term or during the recordkeeping period that: (1) is in connection with this award; (2) Reached Its final disposition during the most recent five year period; and (3) is one of the following: 1. ii. iII. tv. A criminal proceeding that resulted in a conviction, as defined below; A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,m or more; An admInistratIve proceeding, as defined below, that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of $5,CDO or more or reimbursement, restitution, or damage in excess of $1cD,m; or Any other crimInal, civil, or adminIstrative proceeding If: 1. It could have led to an outcome described in this section (e) paragraph (3) Items (i) – (iii) of this award term and condition; 2. It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and Pa8e 2G of 32 CkWStgn ErwdCW ID: 8AFCF16&101&46F4.B664-B8542AC235B4 3. nIe requirement in this award term and condition to disclose information about the proceedIng does not conflict with applicable laws and regulations. (4) For purposes of section (e) of this ceRifkation the following definitions apply: i.An ”administrative proceeding” means a non.judicial process that is adjudicatay in nature in order to make a determination of fault or liability (e.8„ Securities and Exchange Commission Administrative proceedings, CIvilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State level but only in wnnection wIth performance of a Fe&raI contract or grant. It does not include audits, site visits, corrective plans, or inspection of deltverables. A “convictbn”, for purposes of this award term and condition, means a Judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and Includes a conviction entered upon a plea of nolo contendere. ii. Where the undersigned Subreciplent is unable to certIfy to any of the statements in this certification, such Subrecipient shall attach an explanatbn of why it cannot provide said certification to this Contract. The undersigned Subrecipient further agrees and certtfies that it will include the below clause titled "Certification Regarding Debarment, Suspension, Ineligibiltty and Voluntary Exclusion-Subcontracts/Lower Tier Covered Transaction,” without modification, in all subcontracts and in all solicttattons for 5ubcontracts: "CERTIFICATION REGARDING DEBARMEIW, SUSPENSION, INEUGIBILrrY AND VOLUNTARY EXCLUSION - suBCONTRAas/ LOWER TIER COVERED TRANSAcnoNS (1) The prospective lower tier participant/subcontractor certifies, by submission of this proposal, that neIther it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from particIpation in thIs transaction by any Federal department or agency. (2) Where the prospective lower tier participant/subcontractor is unable to certify to any of the statements in this certifiaation, such prospective participant shaH attach an explanation to this proposal. LOWER TIER PARTiCiPANT/suBCOvrRAcroR: ISignature] Printed Name: Title: Date: This certification is a material representation of fact upon which reliance is placed when the Department awards the grant. If it is later determined that Subrecipient knowingly rendered an erroneous certification, in addition to any other remedies available to the Federal Government, the Department may terminate this Contract for cause or default. SUBRECIPIENT: City of Denton, a political subdIvIsion of the State of Texas Page 27 of 32 DouGH Ewek}pe ID: BAFCF16bl01&46F4-B66448542AC235B4 By: Name: DUe: City Manager Date: 1/15/2021 1 4:04'54 PM pgl IEX1H:1111111hE1mf 1eIFhU thIn&b ,Br76c71 18AOD434.Todd Hill Page 28 of 32 DocuSQn EIwdape ID: BAFCF16&lol&46F+8e64-B8542Ac235B4 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FY2020 COMMUNITY DEVELOPMEirI BLOCK GRANT Coronavirus Aid, Relief, and EconomIc Security Act (“CD8G CARES” or "CDBG.CW) Texas Emergency Rental AssIstance Program (“TERAP) and Texas Eviction Diversion Program ('nDP”) covrRAcr NOe 70200001013 EXHIBrr A colrrRAcr BENCHMARKS CitY of Denton, a political subdivision of the of State of Texas CONTRACr BENCHMARKS1 AS REFLECrED THROUGH THE MONTHLY EXPENDITURE AND PEFORMANCE REPORT: 1. 2. 3. 4. 5. 6. All subawardee information provided to the Departrnent by February 15, 2021. Contract 20% expended, as provided in the Budget, by fourth month reporting. Contract 40% expended, as provided in the Budget, by sixth month reporting. Contract funds 100% obligated, by July 31, 2021. Contract 70% expended, as provided in the Budget, by ninth month reporting. Contract 10@6 expended, as provided in the Budget, by thirteen month reporting. 1 The Department may recapture the unexpended funding UP tO the expenditure benchmark funding, as further detailed in Section 4 D. of this Contract. The Department may recapture all or a portion of funding not obligated by the Contract benchmark. Page 29 of 32 Ck>cu Sign Envelope ID: &AFCF16b101&46F+B66+B8542AC23584 TEXAS DEPARrMENI OF HOUSING AND COMMUNITY AFFAIRS FY2020 coMMUNrrY DEVELOPMEirr BLOCK GRANT Coronaviru s Aid, Relief, and Economic Security Act (“CDBG CARES" or “CDBG4V”) Texas Emergency Rental Assistance Program (“TERAP’) and Texas Eviction DIversion Program (qEDP’) COMIRACI NO. 70200001013 EXHIBIT B PERFORMANCE £rATEMElfr AND BENCHMARKS CitY of Denton, a political subdivision of the State of Texas CONTRACr TERM: 01/15/2021 - 01/14/2022 SERVICE AREA: CITY OF DENTON, TX AcrlVITIES DESCRIPTION : A. Estimated number of Households to be assisted: 19 B. Activities: 1. To provide emergency rental assistance to low- to moderate- income tenants impacted by the Coronavirus pandemic, to help them stay housed during the pandemic. 2. 3. 4. To assist eligible tenants wIth emergency rental assistance made directly to the landlord or property owner, on behalf of the eligible tenant. To provide up to six months of rental assistance with at least one month's worth of current or future rent and not to exceed five months of rent in arrears. To provide up to six months of rental assistance with at least one month’s worth of current or future rent and not to exceed five months of rent in arrears to Households who have been sued for eviction {forcible detained. C. Reporting By the 15th of each month, Subrecipient shall report: Aggregatelevel data to be reported via the HousIng Contract System: 1. 2. 3. 4. 5. Summary data for Households served by race, ethnIcitY, and household income level, and other demographic data as required by HUD. Number of Households that received emergencY rental assistance. Number of Households that received emergency rental assistance through the Eviction DIversion program. Total number of Households served. Number of pending Households to roceive assistance in the following thirty (30) days- Page 3Q of 32 CXxuSigl Envelope ID: BAFCF16&101&46F+B86&B8542AC235B4 For Texas Evictbn Diversion Program: 1. 2. 3. 4. 5 6. Number of eligible tenants referred to the program for the previous month’s activIty. Number of ineIIgIble tenants refened to the program for the previous month’s activity. Number of eligible landlords referred to the program for the previous month’s activity. Number of ineligible landk)rds referred to the program for the previous month’s activity. Number of referred tenants withdrawing from the program. Number of referred landlords withdrawing from the program. Subrecipient must also report household-level data, including demographic data, as described on TDHCA’s Excel Monthly Performance Report spreadsheet. Page 31 of 32 DowSlgn EnvBlope ID: BAFCF16&lor&46F4-B664-B8542Ac23584 TEXAS DEPARTMEVr OF HOUSING AND COMMUNITY AFFAIRS FY2020 coMMUNrrY DEVELOPMEhri BLOCK GRANT Coronavlrus AId, ReIIef, and EconomIc SecurIty Act (“CDBG CARES” or “CDBG-CV”) Texas Emergency Rental AssIstance Program (“TERAP) and Texas EvIctIon DIversIon Program (“TIDP’) CONTRACr NO. 70200001013 aHIEIL£ 8UDGfl City of Denton, a political subdivisIon of the State of Texas 2 Rental Assistance may also tn used for Evictbn Diversion without prior Department approval. but must in reported as Eviction Diversion in the Monthly Reporting. 3 After reaching 40% of expenditure reporting of its General Admini$&ation funding under this Contract. SuE>recipient will not be reimbursed for General Administration funding that is greater than 20% of its reported expenditure of Emergency Payments. Page 32 of 32