Loading...
23-1380ORDINANCE NO. 23-1380 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO EXECUTE A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND HABITAT FOR HUMANITY OF DENTON COUNTY, [NC. TO PROVIDE HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR THE NEW CONSTRUCTION OF FOUR (4) HOMEBUYER UNITS LOCATED AT HABITAT VILLAGE (LOCATED IN SOUTHEAST DENTON BETWEEN DUNCAN ST. AND HILL ST. AND ALONG SMITH ST.), DENTON, TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS IN AN AMOUNT NOT TO EXCEED $309,350.93; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes the need to assist low- and moderate-income families in securing decent, safe, sanitary and affordable housing; and WHEREAS, the City has received funds from the U.S. Department of Housing and Urban Development under the National Affordable Housing Act of 1990, as amended; and WHEREAS, the City Council approved the 2023 Action Plan for Housing and Community Development which adopts an authorized budget expenditure of 2023 HOME Investment Partnership Program funds; and WHEREAS, the 2023 Action Plan includes funding allocated for a Habitat for Humanity of Denton County, Inc. project provided for the new construction of four homebuyer units located at Habitat Village (Located in Southeast Denton between Duncan St. and Hill St. and along Smith St.), Denton, Texas (the “Project”) with an authorized budget of $309,350.93; and WHEREAS, Habitat for Humanity of Denton County, Inc. is a locally based non-profit organization, has a demonstrated capacity for carrying out housing projects assisted with HOME funds, and has a history of significant service to the Denton community in the area of affordable housing; and WHEREAS, the City Council deems it in the public interest to enter into an agreement in the form attached hereto as Exhibit A (the “Agreement”) for the affordable housing Project with Habitat for Humanity of Denton County, Inc. to provide much needed services for Denton residents; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS : SECTION 1. The findings and recitations in the preamble of this ordinance are incorporated herein by reference as true and as if fully set forth in the body of this ordinance. SECTION 2. The City Manager, or their designee, is hereby authorized to execute the Agreement. SECTION 3. The City Manager is hereby authorized to expend funds in an amount not to exceed $309,350.93 in the manner specified in the Agreement, and to take any other actions that may be necessary or convenient, in the reasonable opinion of either the City Manager or the City Attorney, to carry out the City’s rights and obligations under the Agreement. SECTION 4. The City Manager has designated Community Development responsible for the administration of this Agreement and all matters pertaining thereto. Page 1 SECTION 5. This ordinance shall become effective immediately upon its passage and approval . The motion to approve this ordinance was made by BfA.., ) ,A Chose hcGte and seconded by avI Fl $1+u/ . The ordinance was passed and approved by the following vote LZ -1] : Aye J .,/ L/ ,/ ,'/ ./ a Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 : Brian Beck, District 2: Paul Meltzer. District 3: Joe Holland, District 4: Brandon Chase McGee, At Large Place 5 : Chris Watts, At Large Place 6: PASSED AND APPROVED thi, th, IOt- d,y ,f CL,.,,y _, 2024. aiR–rmrNRt–Ol ATTEST: JESUS SALAZAR CITY SECRETARY L\\\\ tIll IIII APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY BY: a%Scott Bray 2024.02.06 16:28:03 -06'OO’ DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C AGREEMENT BETWEEN THE CITY OF DENTON AND HABITAT FOR HUMANITY OF DENTON COUNTY, INC. This HOME Agreement (“AGREEMENT”) is made and entered into by and between the City of Denton, a Texas municipal corporation ("CITY"), acting by and through its City Manager, pursuant to ordinance, and Habitat For Humanity of Denton County, Inc., a Texas non-profit corporation, ("DEVELOPER"), acting by and through the Executive Director on this the 20 day of February , 2024. WHEREAS, CITY is the administrator of HOME Investment Partnership Program funds (HOME Funds) received from the U. S. Department of Housing and Urban Development (HUD) under Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (the Act); and WHEREAS, the purpose of the HOME Investment Partnership Program (the HOME Program) is to increase the supply of decent, safe, sanitary, and affordable housing for very low income, low income and moderate-income households; and WHEREAS, CITY has designated the department of Community Development as the City Department responsible for the administration of this Agreement and all matters pertaining thereto; and WHEREAS, DEVELOPER proposes to use HOME funds for an eligible project under the HOME Regulations whereby DEVELOPER will develop and sell four (4) affordable single-family units in Denton, Texas, to be known as Habitat Village, in the City of Denton; and WHEREAS, the CITY has approved a deferred loan to DEVELOPER to carry out the Project as specified in this agreement, subject to the terms specified herein below; and NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound, to the mutual obligations and to the performance and accomplishment of the conditions hereinafter described. A. Project Description The Project comprises the construction and sale of four (4) affordable single-family units in Denton, Texas, to be known as Habitat Village, Denton, Texas (sometimes referred to herein as the “Property”), more particularly described as Lots 10, 1 1, 12, 13 Block B of the HABITAT VILLAGE ADDITION, Denton, Texas. DEVELOPER shall complete the Project in accordance with the specifications and schedule set forth in the Scope of Services attached hereto as Exhibit A and the Budget attached hereto as Exhibit B. B. Tasks and Schedule To ensure that the Project progresses adequately toward completion, DEVELOPER must achieve the following benchmarks. 1. Final Plans and Specifications: No later than February 29, 2024 and prior to initiating construction activity, DEVELOPER must provide evidence to CITY that all Code and Physical Requirements will be met as provided in Section 7 of this agreement. 2. Construction: Unless otherwise extended by CITY, DEVELOPER must begin construction on the Project no later than July 1, 2024 and substantially complete 1 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C construction within twenty (24) months. Per the requirements of 24 CFR 92.2, in any event DEVELOPER must begin construction no later than twelve (12) months from the date of execution of AGREEMENT (See Exhibit A, Scope of Services). 3.Cost Certification: Within one hundred-twenty (120) days of completing construction, DEVELOPER must provide a cost certification prepared by an independent certified public accountant outlining the final sources and uses of all funds or a summary and backup of bids 4.Completion Report: Prior to final disbursement of funds, DEVELOPER must provide CITY with demographic data on the initial occupants of all HOME-assisted units in the Project in order to complete the Project in HUD’s IDIS system. If the Project is not completed in HUD ’s IDIS system within twenty-four (24) months of the date of execution of AGREEMENT, CITY may cancel its commitment of funding, and the DEVELOPER shall repay any HOME funds previously provided for the Project. In any case, if the Project is not completed in HUD’s IDIS system within four years of the date of AGREEMENT, the Project will be considered terminated prior to completion and per the requirements of 24 CFR 92.205(e), and all HOME funds must be repaid by the DEVELOPER to the CITY. C. Budget 1.HOME Investment: Conditioned upon the availability of HOME Program Funds, and DEVELOPER’s compliance with the conditions set out herein, CITY intends to provide up to $309,350.93 in HOME funds to DEVELOPER toward eligible project costs. In no case will CITY’s funding of the Project be less than $1,000 per HOME-assisted unit or more than the maximum per-unit subsidy allowed under 24 CFR 92.250(a). The maximum subsidy limits are based on bedroom size (Amounts are effective 7/ 1/2019) : (a) 0-bedroom units are $153,314; and (b) 1-bedroom units are $175,752; and (c) 2-bedroom units are $213,718; and (d) 3-bedroom units are $276,482; and (e) 4-bedroom+ units are $303,490. 2. TERM The term of AGREEMENT shall begin on the date represented by the date of the last signature of either party executing AGREEMENT and shall expire upon completion of both the HOME Affordability Period and Extended Use Period, as those terms are defined below. This AGREEMENT shall terminate on February 28, 2026, unless sooner terminated because funding is no longer available or in accordance with Section 23. “Termination”. The City shall have the right, but not the obligation, to extend the term of this agreement for two (2) additional one-year periods. The HOME Affordability Period, and the Deed of Trust as outlined in section 5.A.4, shall continue irrespective of any payment/payoff of the HOME Deferred Payment Loan. Failure of the Project to meet all applicable HOME requirements for the entire HOME Affordability Period will result in a requirement that all HOME funds be repaid. 2 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C HOME Investment PeriodPartnership Program Affordabili Length of Compliance /HOME Investment Per Unit Affordabilt Period Less than $15,000 5 years 10 years$15,000 - $40,000 15 years$40,000+ HOME Activity Homebuyer+ and Rental housing acquisition and/or rehabilitation New construction of rental housin Refinancing of rental housin= 20 years 15 years A.HOME Affordability Period: DEVELOPER and its successors in interest shall ensure that any HOME-assisted units are sold to and continue to be owned by persons with qualifying incomes for the entire HOME Affordability Period, which shall begin with initial occupancy of the Project and shall run for fifteen (15) years following the date on which the Project has met the requirements for Project Completion outlined in 24 CFR 92.2 and this Agreement. DEVELOPER and its successors in interest must maintain compliance with this Agreement and all applicable HOME rules for the entirety of the HOME Affordability Period. Establishment of Affordability Completion: Upon entering all required information in HUD’s IDIS system, CITY will notify DEVELOPER of the actual date of Project Completion and the exact date of the expiration of the HOME Affordability Period, which shall be calculated based on the date of Project Completion. If necessary, DEVELOPER shall execute an amendment to the Covenant Running with the Land identifying the exact dates of expiration of the HOME Affordability Period and Extended Use Period. Extension of Agreement: Request for an extension must be in writing and is to be submitted to CITY’s department of Community Development, 401 N. Elm Street, Denton TX 76201 B. C. D.Security during Affordability Period: DEVELOPER shall ensure that purchasers of HOME-assisted units comply with the terms of this Agreement by requiring purchasers execute a promissory note and deed of trust or deed restrictions, as appropriate, which secure compliance with all applicable HOME Program requirements and relevant portions of this Agreement during the HOME Affordability Period. DEVELOPER shall act in a timely manner to enforce the terms of this Agreement as incorporated in any deed of trust or deed restrictions pursuant to this section Annual review of eligibility. DEVELOPER shall take full responsibility for ensuring that housing it has assisted with HOME funds meets the affordability and resale requirements of 24 CFR 92.254 as applicable and shall repay the forgivable loan amount in full pursuant to Section 21 of this Agreement if any of the HOME-assisted units does not meet the affordability requirements of this section. The DEVELOPER must provide CITY with this information within thirty (30) days of the completion of each review. These annual reviews and reports shall be completed for the entirety of the Affordability Period. Homebuyer compliance with housing quality standards and codes. DEVELOPER shall require all homeowners of housing assisted with HOME funds to maintain the housing in compliance with applicable Housing Quality Standards and local housing code 3 E. F DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C requirements for the duration of the agreement. The DEVELOPER must educate HOME fund recipients of the Standard and local housing codes prior to the expenditure of HOME funds and where possible must provide assistance and education to recipients to enable them to meet these standards. 3. RESPONSIBILITIES A.DEVELOPER hereby accepts the responsibility for the performance of all services and activities, described in the Scope of Services attached hereto as Exhibit A and incorporated herein as if set forth at length, in accordance with the Program Budget attached hereto as Exhibit B and incorporated herein as if set forth at length, and as otherwise set forth herein, in a satisfactory and efficient manner as determined by CITY, in accordance with the terms herein B. C. DEVELOPER's Executive Director shall be DEVELOPER’s representative responsible for the management of all contractual matters pertaining hereto, unless written notification to the contrary is received from DEVELOPER and approved by CITY. CITY's Community Development Manager will be CITY's representative responsible for the administration of AGREEMENT. D. DEVELOPER shall comply with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principals and Audit Requirements for Federal Awards, Final Guidance, and the regulations found at 24 CFR Part 92. E.DEVELOPER shall not request disbursement of funds until they are needed for payment of eligible costs. The amount of each request will be limited to the amount needed as per 24 CFR 92.504 (c)(3)(viii). If any program income is generated, DEVELOPER shall expend such program income for the activities detailed in the Scope of Services before DEVELOPER requests further disbursement of funds. F. G. DEVELOPER understands that, in accordance with 2 CFR Part 200, suspension or termination, at CITY’s option, may occur if the DEVELOPER materially fails to comply with any term of AGREEMENT. AGREEMENT may also be terminated for convenience. DEVELOPER shall not change the Program Budget without prior written approval from the CITY 4. CITYtS & DEVELOPER'S OBLIGATIONS A. B. C CITY shall provide funds in the amount of $309,350.93 or less to the DEVELOPER for specific housing projects and programs as described in the Scope of Services, Exhibit A. DEVELOPER agrees to hold and save harmless the CITY, its officers and employees from any and all loss, cost, or damage of every kind (including, property damage, bodily injury or death), nature or description arising under AGREEMENT. Environmental Review: CITY shall be responsible for performing an environmental review to ensure necessary compliances are met. 4 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C 1. 2. HOME Funds will not be paid, and costs cannot be incurred until CITY has conducted and completed an environmental review and completed an Environmental Review Record as required by 24 CFR Part 58. The environmental review may result in a decision to proceed with, modify, or cancel the project. Further, DEVELOPER will not undertake or commit any funds to physical or choice limiting actions, including if applicable, property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance. Any violation of this section will: (a) cause this AGREEMENT to terminate immediately; (b) require DEVELOPER to repay to CITY any HOME Funds received and forfeit any future payments of HOME Funds; and (c) DEVELOPER must pay 10% of the HOME Funds to CITY as liquidated damages. The Parties agree that CITY’s actual damages in the event of DEVELOPER violating this section are uncertain and would be difficult to ascertain and may include a finding by HUD, a repayment of funds to HUD by CITY or otherwise impact the CITY’s HOME grant or other Federal grant funds. Therefore, the Parties agree that payment of 10% of the Loan amount by DEVELOPER to CITY under this section is liquidated damages and not a penalty. 3. D. Mitigation. DEVELOPER must take the mitigation actions if required. Failure to complete the required mitigation action is an event of default under this AGREEMENT. E.This AGREEMENT and the payments made hereunder are contingent upon receipt of U.S. Department of Housing and Urban Development funds pursuant to the HOME Investment Partnerships Program, and shall terminate immediately, notwithstanding any contrary provisions hereof, should such funds be discontinued for any reason. Upon dissolution of the DEVELOPER or upon expiration or termination of this Agreement, any remaining funds or assets derived from the expenditure of the CITY’s funds, hereinafter sometimes described as the CITY’s HOME funds, proceeds or HOME-funded projects, must be immediately transferred to the CITY. F. 5. FORM OF FINANCING AND DISBURSEMENTS A. Form and Terms of Assistance 1 HOME Deferred Payment Loan: CITY will provide HOME funding as a forgivable loan for construction of the Project. The term of the HOME Deferred Payment Loan will commence at execution of the Mortgage and Note and continue for a term of fifteen (15) years from the date of Project Completion as outlined in 24 CFR 92.2, which will require that construction be complete, all HOME funds have been disbursed by CITY and drawn from the US Treasury and required completion data has been entered in HUD’s IDiS system The HOME Deferred Payment Loan will carry (0%) interest (provided there is no default) and shall be forgiven following expiration of the HOME Affordability Period, as described herein 5 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C 2. Security: The HOME Forgivable Payment Loan must be secured by a promissory note, a first-position mortgage on the Property. DEVELOPER agrees to execute any and all notes, security agreements, financing statements, affordability covenants, builder’s and mechanic's liens and deeds of trust and any other documents or amendments that are consistent with this AGREEMENT and are reasonably necessary for perfection of City’s lien or lien interests in the form submitted by Counsel for the City. Borrower further agrees to cooperate with the City in re-signing any documents to correct errors or omissions, if any, in any form or legal document required by the City or HUD. Title Search/Insurance: Prior to the start of project, CITY will perform a preliminary title search. Should any items on the search arise that CITY identifies as title issues, DEVELOPER shall provide a title insurance policy insuring the Property in standard form issued by a title company authorized to do business in the State of Texas and acceptable to CITY. The name of the insured shall be City of Denton, a Texas municipal corporation. The policy shall show fee simple title to the Property in DEVELOPER, subject only to such exceptions as CITY may approve, be in the full amount of CITY’s loan, contain a comprehensive coverage endorsement and such other endorsements as CITY may require and shall insure that the mortgage constitutes a valid { insert priority i.e. first, second, etc.} - position lien on the Property, and that the Property is free of all liens, encumbrances, restrictions or other matters of any kind whatsoever, with only such exceptions from coverage as are satisfactory to CITY. 3. 4.Deed of Trust and Restrictive Covenants: DEVELOPER must convey to City a deed of trust, in form satisfactory to CITY, that provides a means for enforcement of the affordability restrictions of 24 CFR 92.252. The deed of trust must be senior to all other financing liens and be enforceable against all successors in interest to DEVELOPER. Developer must also execute and deliver to CITY for recording Restrictive Covenants binding on the Property, in form satisfactory to CITY, which enjoin the Property from being sold to persons that do not meet the affordability requirements of 24 CFR 92.252. Guarantors5. CITY will require guarantees from the underlying corporate and individual owners of the DEVELOPER and from any other guarantors required by the CITY or other financing sources investing in the Project, without limitation. Guarantees shall include, at a minimum, the following terms: (a) A guarantee of completion, ensuring that DEVELOPER will construct, equip, and complete the Project free and clear of liens substantially in accordance with the plans and specifications by the date called for in section 1.B.2. Failure to complete the Project under these terms will result in DEVELOPER’s and Guarantors’ obligation to: (i) pay all costs and expenses incurred in completing any unfulfilled obligations; and (ii) pay to or reimburse CITY for all expenses incurred by CITY with respect to it carrying out any of DEVELOPER’s unfulfilled obligations. This guarantee will expire upon CITY’s final inspection and approval of the Project’s construction. 6 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C (b) An ongoing guarantee of performance, ensuring that the Project will be operated in compliance with all applicable federal, state, and local laws or ordinances or regulations, including but not limited to HOME regulations and fair housing laws. During the HOME Affordability Period, failure to maintain the Project in compliance with all applicable laws, or the inability to correct instances of noncompliance, will result in a requirement that the DEVELOPER and Guarantors satisfy any repayment obligation to HUD incurred by CITY under 24 CFR 92.503(b). (c) A guarantee of annual deposits to a Replacement Reserve for the Project in an amount consistent with the Loan Documents. 6.DEVELOPER Entity: CITY’s willingness to make the HOME Deferred Payment Loan as anticipated herein is contingent upon and made with specific reliance on the evaluation of the specific individuals and entities making up the DEVELOPER. DEVELOPER agrees that no sale or transfer of general or limited partnership interests in the DEVELOPER wil i be made without the prior written consent of CITY. B. Disbursement 1. CITY’s HOME Loan is intended as construction financing. DEVELOPER may request disbursements no more than monthly and not less than quarterly from CITY during the construction period in accordance with the terms set forth in this section. 2.Notwithstanding anything herein, CITY will draw HOME funds as needed to directly reimburse itself for certain project-related soft costs applicable to the Project. These include but may not be limited to costs incurred by CITY in the underwriting, review, and oversight of the Project prior to completion and will include internal costs of CITY staff and external costs of CITY consultants. All CITY project-related soft costs will be included in the total HOME investment and incorporated into the HOME Deferred Payment Loan. Further, CITY shall retain the right to review and approve all draws for the Project, regardless of whether the HOME Deferred Payment Loan will be used to fund any given draw. For draws being funded by other construction or permanent funding sources, CITY shall be provided with the draw not less than 10 days prior to any monthly inspection and provided with the opportunity to approve or object to the draw prior to payment by any funding source. Conditions of Construction Draws: Proceeds of the HOME Loan will only be released to DEVELOPER for actually incurred HOME-eligible project costs. The obligation of CITY to approve any draw or to make any disbursement of HOME funds is subject to the satisfaction of the following conditions at the time of making such disbursement: (a) CITY shall pay DEVELOPER for activities carried out under this Agreement o a reimbursement basis within twenty-one (2 1) days after CITY has received a request for reimbursement and all required supporting documentation of eligible expenditures from DEVELOPER (a “Reimbursement Request”). Documentation of expenditures must be submitted to the Community Development Manager by the dates required by Community Development. DEVELOPER’s failure to provide information in a timely manner may delay reimbursements. Funds are to be used for the sole purpose of carrying out the activities described in the Scope of Work and the Budget. 3. 4 7 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C (b) DEVELOPER shall not be in default under the terms of this Agreement or of any of the Loan Documents, and no event shall exist, which by notice, passage of time, or otherwise would constitute an event of default under this Agreement or any of the Loan Documents. (c) The Project shall not have been materially damaged by fire or other casualty. (d) CITY shall have received evidence satisfactory to CITY that all work and improvements requiring inspection by any governmental authority having jurisdiction have been inspected and approved by such authorities and by any other persons or entities having the right to inspect and approve construction. (e) DEVELOPER shall have submitted at least fifteen (15) days prior to the date a disbursement is desired a completed disbursement and such other appropriate source documentation as may be required by CITY including, without limitation, the following: i. Statements identifying all contractors, subcontractors and suppliers along with their addresses, and identifying all labor and materials furnished to date along with the amounts paid to date and the balances due and any change orders, as well as sworn lien waivers executed by the contractors, subcontractors, and/or suppliers covering all labor and materials identified in the prior request for disbursement approved by CITY, said sworn statements and sworn lien waivers to be dated no less than five (5) days prior to the date of the requested disbursement, or such other documentation or supporting evidence as shall enable the Title Company to issue an endorsement to the title policy, including receipts or other vouchers showing payments for labor, payments to subcontractors and payments to material suppliers. 11.Evidence satisfactory to CITY that the Project and the contemplated use thereof are permitted by and comply with all applicable use or other restrictions and requirements in prior conveyances, zoning ordinances, or regulations that have been duly approved by the municipal or other governmental authorities having jurisdiction; that the required building permits and other permits have been obtained as required; and that no environmental impact statement is required or that such environmental impact statement has been properly filed and approved. 111.Appropriate certifications of compliance in all respects with labor standards and prevailing wage requirements applicable under federal law. IV .Such other supporting evidence as may be requested by CITY or its agent to substantiate all payments which are to be made out of the relevant disbursement and/or to substantiate all payments then made with respect to the Project. (f) CITY shall have determined that all HOME requirements pertaining to the disbursement of funds have been met, including but not limited to monitoring of Davis Bacon compliance. (g) An inspection of work completed will need to be completed Development Division staff prior to request for reimbursement. by Community 8 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C (h) No determination shall have been made by CITY that the undisbursed amount of the loan is less than the amount received to pay all costs and expenses of any kind that reasonably may be anticipated in connection with the completion of the Project. Conditions of Final Disbursement: in addition to the requirements set forth in section 5 .B.1, CITY shall require the following prior to the final disbursement of funds, the request for which shall not be submitted before completion of the Project, including all landscape requirements and offsite utilities and streets and correction of defects in workmanship and/or materials : 5. (a) Evidence satisfactory to CITY that the Project has been completed lien-free and substantially in accordance with the plans and specifications; (b) Review and final settlement of the cost certification described below. (c) Such other supporting evidence as may be requested by CITY or its agent to substantiate all payments which are to be made out of the final disbursement and/or to substantiate all payments then made with respect to the Project. 6 Limitation on Draw Requests. (a) in all cases, DEVELOPER may not request disbursement of HOME funds until funds are needed for the payment of eligible costs, and all disbursement requests must be limited to the amount needed at the time of the request. (b) Notwithstanding anything herein to the contrary, no disbursements for materials stored will be made by CITY unless DEVELOPER shall advise CITY of its intention to so store materials prior to their delivery. It is specifically agreed that the propriety of disbursements for materials stored shall be determined in CITY's sole discretion. (c) in addition to any other requirements CITY may impose, any disbursement for materials stored will require, at minimum : Certification from the General Contractor (and, as applicable, any subcontractors) that The materials for which payment is requested are consistent with the Project’s plans and specification and have been purchased specifically for incorporation into the Project; The Contractor (or subcontractor as applicable) is in actual possession of and has clear, marketable title to the materials and that such materials are not subject to any lien by the supplier or manufacturer; and The materials are appropriately stored on-site and fully insured against theft, damage, or other loss OR that materials stored off-site are located in a licensed, bonded, and insured warehouse where they are fully insured against theft, damage, or other loss. Submission of documentation (such as invoices, receipts, shipping manifests, or insurance policies) satisfactory to CITY supporting the certifications; 11 iii. That any disbursement for materials stored are otherwise subject to the contract’s standard retainage provisions; 9 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C (d) The parties covenant and agree that in the event that CITY discovers a misstatement in any affidavit, statement, or certificate furnished pursuant to this Agreement, it shall make no further disbursements until such misstatement has been corrected; that CITY assumes no liability to the DEVELOPER for mechanic's lien claims; that if at any time during the course of construction, the total of the unpaid disclosed cost of construction, as indicated by the column totals on the general contractor’s sworn statement, exceeds the amount of the undisbursed development sources, CITY shall not be under obligation to make further disbursement under the terms of the Agreement until the DEVELOPER has deposited with CITY the sum necessary to make the available funds equal to the unpaid disclosed cost of construction; and that if, after the first disbursement, a further title search reveals a subsequently arising exception over which the title insurance company is unwilling to insure, CITY shall discontinue disbursement until the exception has been disposed of to the CITY’s satisfaction. Withholding Payment: CITY shall withhold payment on any reimbursement request that does not include the required complete documentation. Disbursement of DEVELOPERts Funds: if CITY shall at any time in good faith determine that the undisbursed amount of available financing is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the Project and shall thereupon send written notice thereof to DEVELOPER specifying the amount required to be deposited by DEVELOPER with CITY or its agent to provide sufficient funds to complete the Project, the DEVELOPER agrees that it will, within five (5) calendar days of receipt of any such notice, deposit with CITY or its agent, in a noninterest bearing account, the amount of funds specified in the Lender’s notice. DEVELOPER agrees that any such funds deposited with CITY, or its agent may be disbursed by CITY or its agent, before any further disbursement of loan proceeds from CITY, to pay any and all costs and expenses of any kind in connection with completion of the Project. 7. 8. 6. HOME PROGRAM REQUIREMENTS A. Affordability Period Requirements. The Project must comply with all requirements of 24 CFR 92.252 for the duration of the Project’s HOME Affordability Period. B.Designation of HOME Units. Four (4) units will be designated as HOME-assisted. The restrictions of this section shall apply throughout the term of this Agreement. The CITY reserves the right to adjust the number of HOME-assisted units if the sources and uses of funds change during development of the Project. 2 CITY Approval of Sale Price and Fees. (a) Upon completion of the PROJECT, DEVELOPER shall sell the property, through fee simple title, to an eligible low- to moderate-income first-time homebuyer who will occupy the property as their principal residence for the applicable affordability period. Periods of affordability required by 24 C.F.R. § 92.254 shall be enforced by a 10 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C subordinate deed of trust (no lower than second position) as more fully described herein. Properties sold to low-income homebuyers will be secured by a subordinate lien, payable to the City of Denton for the Affordability Period for the amount of HOME funds reimbursed to DEVELOPER for that particular unit. (b) Sale price of the home will not exceed the applicable HUD approved HOME Homeownership Value Limits ("95% limits") for New Homes. (c) DEVELOPER shall not charge any servicing, origination, or other fees for costs of administering the HOME program, except as permitted by 24 CFR 92.214(b)(1). Income Restrictions: All HOME units must be offered for sale exclusively to homebuyers with household incomes at or below 80% of the Area Median Income (AMI) as determined annually by HUD and as adjusted for household size. The most current income chart must be used when determining eligibility for a prospective homebuyer. (a) DEVELOPER must apply the definition of annual income defined in 24 CFR Part 5.609. Prior to selling any HOME-assisted unit, DEVELOPER must obtain and examine at least two months of source documents evidencing household income. (b) DEVELOPER acknowledges that the HOME Income Limits are released by HUD on independent schedules. Income Verification . 3. 4. (a) DEVELOPER shall use the most current HUD Income Guidelines. (b) DEVELOPER shall obtain financial information on all members of a homebuyer’s household. (c) DEVELOPER must maintain copies of homebuyer’s household Documentation as required under this AGREEMENT. Treatment of Over-Income Homebuyers: in the event a homebuyer has a household income above the applicable HUD’s Income Limit for HOME, the DEVELOPER shall take the following actions: (a) if the HOME unit homebuyer’s income is greater than 80% AMI, then the DEVELOPER will need to sell to an eligible homebuyer another qualifying unit that that was not funded with HOME funds or deny the homebuyer. 5. C Homebuyer Selection Plan. 1. DEVELOPER must develop a homebuyer selection plan meeting the requirements of 24 CFR 92.253(d). The homebuyer selection plan will be subject to review and approval by CITY both prior to initial occupancy of the HOME-assisted units and during the term of this Agreement. 2. The homebuyer selection policy must be consistent with the purpose of providing housing for very low and low-income persons. The homebuyer selection policy must provide for: (a) Selection of homebuyer from a written waiting list in the chronological order of their application, insofar as is practicable; (b) Prompt written notification to any rejected applicant of the grounds for such rejection; and 11 DocuSign Envelope ID: A8531830-13EF4956-A761-1 90BBED57A5C (c) Bi-lingual assistance. (d) The homebuyer selection policy must address non-discrimination and affirmative marketing as discussed in section 8.E. Faith-Based Organizations. 1. Conditions for Faith-Based Organizations: Faith-based organizations are eligible to participate in the HOME program on the same basis as any other organization but must comply with the requirements of 24 CFR 92.257. Among other requirements, DEVELOPER may not engage in inherently religious activities such as worship, religious instruction, or proselytization, as part of the Project. If DEVELOPER does engage in such religious activities, those activities must be offered separately from the HOME-assisted housing, and participation by homebuyer of the Project must be voluntary. Additionally, DEVELOPER shall not discriminate against a homebuyer or prospective homebuyer on the basis of religion or religious belief. 2. Separation of Explicitly Religious Activities: DEVELOPER retains its independence and may continue to carry out its mission, including the definition, development practice, and expression of its religious beliefs, provided that it does not use HOME Funds to support or engage in any explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), or in any other manner prohibited by law. D. 3.Explicitly Religious Activities: if DEVELOPER engages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by HOME Funds and participation must be voluntary for homebuyers ofa HOME-funded unit. 7. CONSTRUCTION, PROPERTY STANDARDS AND MANAGEMENT A. Construction Schedule. DEVELOPER will construct the improvements in accordance with the schedule set forth in the attached Exhibit A. DEVELOPER shall not begin construction until CITY sends a Notice to Proceed. DEVELOPER’s failure to meet the Construction Schedule or the Completion Deadline shall be an event of default. DEVELOPER may not change the Construction Schedule without the CITY’s prior written approval, which approval shall be in the CITY’s reasonable discretion. 1.Written Cost Estimates, Construction Contracts and Construction Documents. DEVELOPER shall furnish CITY with the written cost estimates, construction contracts and construction documents (collectively, the “Construction Documents”) all of which shall describe the construction of the Required Improvements in sufficient detail so that CITY can perform inspections. CITY shall review and approve written cost estimates and determine that costs are reasonable prior to the commencement of construction. 2 Construction Inspections. CITY will conduct progress and final inspections of construction of the project to ensure that the work is done in accordance with the applicable building codes and the Construction Documents. The construction of the project must pass a HUD Compliance Inspection Report and any other applicable HUD-required inspections during the construction period, 12 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C along with any applicable final inspection approval from the CITY building inspectors at the completion of the construction of the project. B.Property Standards. DEVELOPER shall comply with the following as applicable during the construction of the Required Improvements and for the entire affordability period: Property Standards. All projects must meet all applicable state and local codes, rehabilitation standards (if applicable), ordinances and zoning requirements and also mitigate disaster impact, as applicable, per state and local codes, ordinances, etc. in effect at the time of Project completion. New Units. DEVELOPER shall comply with the applicable standards for new construction as specified in 24 CFR §92.25 1 (a)(2) property standards. any City property standards, and all other applicable accessibility standards for the project. 2.Sustainability. All projects should “demonstrate responsible, quality construction with respect to energy efficiency, environmental impact, and reductions in the use of shared municipal resources”. DEVELOPER shall construct New Units to meet the International Energy Conservation Code, Energy Star (or equivalent) certified building standards and receive the Energy Star label or certification 3.Accessibility improvement. features in all new units:DEVELOPER shall attempt to incorporate the following • • • • • Zero-step entrance to central living area connected to public street, sidewalk, or driveway 36-inch entry door that provides clear opening of no less than 32 inches All interior doors on main floor (including bathroom) will have 36-inch doors that provide clear openings of no less than 32 inches 36-inch wide path of travel through the main floor of the home One (1) bathroom on the main floor of each home will include a clear floor space of at least 30” x 48” • The toilet, counter, and door swings of each home will not encroach into the clear floor space of each home 4. Lead-Based Paint. DEVELOPER shall comply with HUD’s Lead Safe Housing Rule at 24 CFR part 35, subparts A, B, J, and R 5. The Project must be maintained in compliance with the requirements of 24 CFR 92.251. C. Construction Codes. 1 The Plans and construction for the Required Improvements shall (a) conform to all applicable Federal, state, city and other local laws, ordinances, codes, rules and regulations, including the HOME Regulations; (b) meet all City building codes; 13 DocuSign Envelope ID: A8531 830-13EF4956-A761-190BBED57A5C (c) meet the Energy Conservation requirements as required by the State of Texas in Chapter 1 1 of the International Building Code; (d) if new construction, must conform to the Model Energy Code published by the Council of American Building Officials; and (e) must pass a HUD Compliance Inspection Report and inspection by City’s inspectors. D. Lead-Based Paint Requirements. Not applicable. New construction. E.Review, Acceptance, or Approval of Construction Plans and Specifications by CITY Not Release of Responsibility. 1.Review, acceptance, or approval of the plans by CITY shall not constitute or be deemed: (a) to be a release of the responsibility or liability of DEVELOPER or any of its contractors or subcontractors, or their respective officers, agents, employees and lower tier subcontractors, for the accuracy or the competency of the Plans or the Construction Documents, including, but not limited to, any related investigations, surveys, designs, working drawings and specifications or other documents; or (b) an assumption of any responsibility or liability by CITY for any negligent act, error or omission in the conduct or preparation of any investigation, surveys, designs, working drawings and specifications or other documents by DEVELOPER or any of its architects, contractors or subcontractors, and their respective officers, agents, employees and lower tier subcontractors. F.Contractor, Subcontractor and Vendor Requirements. 1. DEVELOPER will use commercially reasonable efforts to ensure that all contractors or vendors utilized by DEVELOPER or subcontractors utilized by DEVELOPER’s general contractor are appropriately licensed and such licenses are maintained throughout the construction of the Required Improvements and the operation of the project when applicable. DEVELPOER shall have written agreements with any contractors, subcontractors, vendors, or other parties which will receive HOME funds in relation to this Agreement. 2 DEVELOPER shall ensure that all contractors utilized by DEVELOPER, subcontractors utilized by DEVELOPER’s general contractor in the construction of the Required Improvements, or vendors utilized by DEVELOPER in the operation of the project are not debarred or suspended from performing the contractor’s, subcontractor’s or vendor’s work by the City, the State of Texas, or the Federal government. (a) For purposes of this AGREEMENT, the term “vendors” does not include suppliers or materialmen. (b) DEVELOPER acknowledges that 2 CFR Part 200 forbids DEVELOPER from hiring or continuing to employ any contractor, subcontractor or vendor that is listed on the Federal System for Award Management, www.sam.gov (“SAM”). (c) DEVELOPER must confirm by search of SAM that all contractors, subcontractors or vendors are not listed by SAM as being debarred, both prior to hiring and prior to 14 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C submitting a Reimbursement Request which includes invoices from any such contractor, subcontractor, or vendor. (d) Failure to submit such proofs of search shall be an event of default, if not cured within any applicable notice or cure period. (e) in the event that CITY determines that any contractor, subcontractor or vendor has been debaned, suspended, or is not properly licensed, DEVELOPER or DEVELOPER’s general contractor shall immediately cause such contractor, subcontractor or vendor to immediately stop work on the project and DEVELOPER shall not be reimbursed for any work performed by such contractor, subcontractor or vendor. (f) This section should not be construed to be an assumption of any responsibility or liability by CITY for the determination of the legitimacy, quality, ability, or good standing of any contractor, subcontractor or vendor. 8. COMPLIANCE WITH OTHER FEDERAL REQUIREMENTS, APPLICABLE LAWS AND REGULATIONS. A. The CITY and DEVELOPER agree to perform their duties arising pursuant to the Agreement in compliance with the U.S. Department of Housing and Urban Development HOME Investment Partnerships Program regulations at 24 CFR 92 and 2 CFR Part 200. B. Other Federal Requirements. DEVELOPER agrees to develop and operate the Project in full compliance with other related federal requirements. C. Compliance with All Applicable Laws and Regulations. DEVELOPER agrees to comply fully with all applicable laws and regulations that are currently in effect or that are hereafter amended during the performance of this AGREEMENT. These laws include, but are not limited to: 1. 2. 3. 4. 5. 6. 7. 8 HOME Investment Partnerships Act as set out above Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including provisions requiring recipients of federal assistance to ensure meaningful access by person of limited English proficiency The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601 et seq.) Executive Orders 1 1063, 11246 as amended by 1 1375 and 12086 and as supplemented by Department of Labor regulations 41 CFR, Part 60 The Age Discrimination in Employment Act of 1967 The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA") Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and 24 CFR Part 8 where applicable 15 DocuSign Envelope ID: A8531830-13EF+956-A76 1-190BBED57A5C 9. National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321 et seq. ("NEPA'’) and the related authorities listed in 24 CFR Part 58. 10. The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.), related Executive Order 1 1738 and Environmental Protection Agency Regulations at 40 CFR Part 15. In no event shall any amount of the assistance provided under this AGREEMENT be utilized with respect to a facility that has given rise to a conviction under the Clean Air Act or the Clean Water Act. 11. Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.) specifically including the provisions requiring employer verifications of legal status of its employees 12. The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A 13. Regulations at 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered persons 14. Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part 23, Subpart F 15. Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on participation by ineligible, debarred or suspended persons or entities 16. Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood standards for new constructron projects 17. Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review 18. Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act 19. Guidelines of the Environmental Protection Agency at 40 CFR Part 247 20. For contracts and subgrants for construction or repair, Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in 29 CFR Part 5 21. For construction contracts in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers, Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327A 300) as supplemented by 29 CFR Part 5 22. Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq.), as amended by the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.) and implementing regulations at 24 CFR Part 35, subparts A, B, M, and R 23. Regulations at 24 CFR Part 92, Home Investment Partnerships Program Final Rule 24. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 et seq. 25. Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101) 16 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C 26. Federal Whistleblower Regulations, 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. D. Agreement Not Constituting Commitment of Funds. Notwithstanding any provision of this AGREEMENT, the Parties agree and acknowledge that this AGREEMENT does not constitute a commitment of HOME Funds, and that such commitment or approval may occur only upon satisfactory completion of environmental review and receipt by CITY of an authorization to use grant funds from HUD under 24 CFR Part 58 E.Affirmative Marketing. 1. DEVELOPER must adopt and implement affirmative marketing procedures for the Project consistent with the requirements of 24 CFR 92.351. DEVELOPER must submit an Affirmative Fair Housing Marketing Plan (AFHMIP), using form HUD-935.2A, or on another such form as CITY may reasonably require, for CITY review prior to marketing and leasing the HOME-assisted units. 2.The procedures and requirements must include methods for informing the public, and potential homebuyers about fair housing laws and policies so as to ensure that all individuals are given an equal opportunity to participate in the project without regard to sex, age, race, color, creed, nationality, national origin, religion, handicap status, disability, familial status, sexual orientation, gender identity, gender expression or transgender. The procedures shall include methods to be used by DEVELOPER to inform and solicit applications for homebuyers from persons in the housing market area who are not likely to apply for the housing without special outreach (e.g., through the use of community organizations, places of worship, employment centers, fair housing groups, or housing counseling agencies.) The procedures and requirements must designate an individual who will be responsible for marketing the project and must establish a clear application screening plan. DEVELOPER’s affirmative marketing procedures must be submitted to CITY for approval prior to implementation; provided however, CITY shall have no responsibility for affirmative marketing of the project. 3. CITY reserves the right to require DEVELOPER to update the Project’s AFHMP from time to time to ensure it remains appropriate given potentially changing demographic characteristics of the market area and is updated based on the operational experience with the Project. 4. DEVELOPER shall keep records describing actions taken to affirmatively market the HOME Units and the project sufficient to enable CITY to assess the results of the affirmative marketing. F Compliance with the Uniform Relocation Act: Displacement, Relocation, and Acquisition. DEVELOPER shall comply with the Uniform Administrative Requirements, Cost Principals and Audit Requirements for Federal Awards, Final Guidance as described in 2 CFR Part 200. DEVELOPER will take all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of the Project. 17 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C Additionally, DEVELOPER will assure compliance with appropriate relocation and real property acquisition requirements as provided in 24 CFR 92.353. G. RESERVED H. Use of Contractors and Subcontractors 1.DEVELOPER will ensure and maintain records demonstrating that none of the contractors or subcontractors involved in the development of the Project are suspended, debarred, or otherwise prohibited from participating in federally assisted contracts. DEVELOPER will further ensure that its contractors include parallel provisions in their subcontracts, provide and maintain records showing that subcontractors are not suspended, debarred, or otherwise prohibited from participating in federally assisted contracts. 2.DEVELOPER understands and agrees that all terms of this AGREEMENT, whether regulatory or otherwise, shall apply to any and all contractors, subcontractors and vendors of DEVELOPER which are in any way paid with HOME Funds or who perform any work in connection with the project. DEVELOPER shall cause all applicable provisions of this AGREEMENT to be included in and made a part of any contract or subcontract executed in the performance of its obligations hereunder, including its obligations regarding the Affordability Requirements and the HOME Regulations during the Affordability Period. DEVELOPER shall monitor the services and work performed by its contractors, subcontractors and vendors on a regular basis for compliance with the Affordability Requirements, the HOME Regulations and Agreement provisions. DEVELOPER is responsible to cure all violations of the HOME Regulations committed by its contractors subcontractors or vendors. CITY maintains the right to insist on DEVELOPER’s full compliance with the terms of this AGREEMENT and the HOME Regulations and DEVELOPER is responsible for such compliance regardless of whether actions to fulfill the requirements of this AGREEMENT or the HOME Regulations are taken by DEVELOPER or by DEVELOPER’s contractors, subcontractors or vendors DEVELOPER acknowledges that the provisions of this section shall survive the earlier termination or expiration of this AGREEMENT and be applicable for the length of the Affordability Period and for 5 years thereafter. 3.DEVELOPER shall, at a minimum, search at www.sam.gov to verify that each contractor and subcontractor is not listed as an excluded party. 1.Certification Regarding Lobbying. DEVELOPER certifies that it will not and, to the best of its knowledge, has not used Federally appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any Federal agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award. DEVELOPER further agrees that it shall disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award J. DEVELOPER Procurement Standards. DEVELOPER shall ensure that procurement of materials and services is done in a cost- effective manner. DEVELOPER shall comply with all applicable federal, state and local laws, 18 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C regulations, and ordinances for making procurements under this AGREEMENT. DEVELOPER shall establish written procurement procedures to ensure that materials and services are obtained in a cost-effective manner. Sealed bids (Formal Advertising) should be used for all construction contracts or for goods costing more than $100,000. K. Cost Principles/Cost Reasonableness. The eligibility of costs incurred for performance rendered shall be determined in accordance 2 CFR Part 200.402 through 2 CFR Part 200.405, as applicable, regarding cost reasonableness and allocability. L. Financial Management Standards. DEVELOPER agrees to adhere to the accounting principles and procedures required in 2 CFR Part 200, as applicable, utilize adequate internal controls, and maintain necessary supporting and back-up documentation for all costs incurred in accordance with 2 CFR Part 200.302 and Part 200.303 . M. Uniform Administrative Requirements. DEVELOPER will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200, as applicable, or any reasonably equivalent procedures and requirements that CITY may require. N. Compliance with FFATA and Whistleblower Protections. 1.DEVELOPER shall provide CiTY with all necessary information for CITY to comply with the requirements of 2 CFR 300(b), including provisions of the Federal Funding Accountability and Transparency Act (“FFATA”) governing requirements on executive compensation and provisions governing whistleblower protections contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. 2. DEVELOPER shall provide CITY its DUNS number prior to the payment of any HOME Funds. O. Internal Controls. In compliance with the requirements of 2 CFR 200.303, DEVELOPER shall: Establish and maintain effective internal control over the HOME Funds that provides reasonable assurance that DEVELOPER is managing the HOME Funds in compliance with federal statutes, regulations, and the terms and conditions of this AGREEMENT. These internal controls shall be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”; 2.Comply with federal statutes, regulations, and the terms and conditions of this AGREEMENT; 3. Evaluate and monitor DEVELOPER’s compliance with statutes, regulations and the terms and conditions of this AGREEMENT; 19 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C 4. 5. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; and Take reasonable measures to safeguard protected personally identifiable information and other information that HUD or CITY designates as sensitive or DEVELOPER considers sensitive consistent with applicable federal, state, local and tribal laws regarding privacy and obligations of confidentiality. P. Copyright and Patent Rights. No reports, maps, or other documents produced in whole or in part under this AGREEMENT shall be the subject of an application for copyright by or on behalf of DEVELOPER. HUD and CITY shall possess all rights to invention or discovery, as well as rights in data which may arise as a result of DEVELOPER’s performance under this AGREEMENT. DEVELOPER agrees to ensure that all HOME-assisted housing or housing identified as match for the HOME program meets all affordability requirements identified in 24 CFR 92 Subpart F as applicable. If it is determined that the use of the funding provided by the CITY does not meet the requirements of the U.S. Department of Housing and Urban Development HOME Investment Partnerships Program, the DEVELOPER shall reimburse the CITY for the costs determined to be disallowed under the U.S. Department of Housing and Urban Development HOME Investment Partnership Program regulations. DEVELOPER shall comply with all applicable Federal laws and regulations at 24 CFR 92 subpart H. Subpart H prescribes procedures for compliance in the following areas: nondiscrimination and equal opportunity, affirmative marketing, displacement and relocation, labor relations and conflict of interest. Q. R. S. T. DEVELOPER agrees that all housing assisted under this agreement will meet the property standards requirements in 24 CFR 92.251 and the lead-based paint requirements in 24 CFR 92.355 upon project completion. U. DEVELOPER agrees to comply with all project requirements in 24 CFR Part 92, Subpart F. V. DEVELOPER certifies that it is not currently listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Non-procurement Programs in accordance with Executive Orders 12549 and 12689 and will not enter into agreements to expend Federal funds with DEVELOPERs that are currently listed. W. DEVELOPER agrees to comply with the maximum per unit subsidy limits, underwriting requirements and subsidy layering limits in 24 CFR 92.250. X. DEVELOPER agrees to comply with labor requirements set out in 24 CFR 92.354. Y. DEVELOPER agrees to comply with all applicable Federal laws, laws of the State of Texas and ordinances of the City of Denton. 20 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C 9. REPRESENTATIONS A. B. C. D. The CITY is providing funding to the DEVELOPER in order to promote the development of affordable housing for low-income households. Use of funds for programming will meet this stated goal. The CITY is the only agent authorized to designate changes to the Program Budget or to approve specific projects and programs authorized pursuant to the non-administration portion of the Program Budget. DEVELOPER assures and guarantees that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to enter into this Agreement. The person or persons signing and executing this Agreement on behalf of DEVELOPER, do hereby warrant and guarantee that he, she, or they have been fully authorized by DEVELOPER to execute this Agreement on behalf of DEVELOPER and to validly and legally bind DEVELOPER to all terms, performances and provisions herein set forth. CITY shall have the right, at its option, to either temporarily suspend or permanently terminate this Agreement if there is a dispute as to the legal authority of either DEVELOPER or the person signing the Agreement to enter into this Agreement. DEVELOPER is liable to CITY for any money it has received from CITY for performance of the provisions of this Agreement if CITY has suspended or terminated this Agreement for the reasons enumerated in this section. DEVELOPER agrees that the funds and resources provided DEVELOPER under the terms of this Agreement will in no way be substituted for funds and resources from other sources, nor in any way serve to reduce the resources, services, or other benefits which would have been available to, or provided through, DEVELOPER had this Agreement not been executed. E. F. 10. PROGRAM INCOME A.HOME program income is defined as all fees and interest payments on HOME- assisted units/projects and any interest income on deposited HOME funds or program proceeds collected by the DEVELOPER. Program income may be retained by the DEVELOPER to be used for HOME-eligible activities included in the Work Statement included herein as Exhibit B B.Any income generated from the use of HOME funds, proceeds, or any income generated through subsequent use of these funds shall continue to be used by the DEVELOPER for HOME-eligible activities included in the Work Statement in the City of Denton. Use of the funds on projects or programs other than those identified in this Agreement, must be approved in writing by the CITY. Any income retained and used by the DEVELOPER must be available to the CITY as a matching contribution for the HOME program. Upon request, DEVELOPER will approve appropriate certifications stating that funding is available as a HOME program match to the CITY. 11. MAINTENANCE OF RECORDS A. DEVELOPER agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of the funds received pursuant to this Agreement and pursuant 21 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C to any other applicable Federal and/or State regulations establishing standards for financial detailed support and justification for each expenditure. Nothing in this section shall be construed to relieve DEVELOPER of fiscal accountability and liability under any other provision of this Agreement or any applicable law. DEVELOPER shall include the substance of this provision in all subcontracts. DEVELOPER agrees to retain all books, records, documents, reports, and written accounting policies and procedures pertaining to the operation of programs and expenditures of funds pursuant to this Agreement for the period of time and under the conditions specified by CITY. Nothing in the above subsections shall be construed to relieve DEVELOPER of responsibility for retaining accurate and current records, which clearly reflect the level and benefit of services, provided pursuant to this Agreement. At any reasonable time and as often as CITY may deem necessary, the DEVELOPER shall make available to CITY, or any of its authorized representatives, all of its records and shall permit CITY, or any of its authorized representatives to audit, examine, make excerpts and copies of such records, and to conduct audits of all contracts, invoices, materials, payrolls, records of personnel, conditions or employment and all other data relating to the program requested by said representatives. The DEVELOPER shall give the City of Denton, the U.S. Department of Housing and Urban Development, or any of their duly authorized representatives, access to and the right to examine all books, accounts, records, reports, files and other papers belonging to or in use by the DEVELOPER pertaining to this Agreement. Such rights to access shall continue as long as the DEVELOPER is required to retain the records. B. C. D. E. 12. REPORTS AND INFORMATION A.DEVELOPER shall provide quarterly financial and beneficiary reports that shall contain such records, data and information as CITY may request and deem pertinent to matters covered by this Agreement. DEVELOPER shall provide any additional information as requested by the CITY within 10 days. An audit must be conducted in accordance with 2 CPR Part 200 as applicable. DEVELOPER shall submit a copy of said audit to the Community Development Division within thirty days of receipt of the completed report. B. C.General Requirements. DEVELOPER agrees to provide reports to CITY and to maintain records documenting compliance with this Agreement, the loan documents and regulatory agreements, the HOME rule, and all other applicable federal, state, and local laws and regulations. DEVELOPER also agrees to provide CITY, HUD, HUD’s Office of Inspector General, the Comptroller General of the United States (aka the U.S. Government Accountability Office or “GAO”), or their representatives access to the Project and its records for the purpose of monitoring DEVELOPER’s compliance with applicable requirements. D. Reports DEVELOPER shall submit periodic reports to CITY on the progress and performance of the Project. CITY reserves the right to unilaterally alter, supplement, or otherwise modify the 22 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C frequency or content of required reports as needed to maintain adequate oversight of the Project, address changes to HOME regulations, or to address findings related to noncompliance by the Project. Initially, CITY may require reports as follows: 1. Prior to the commencement of construction, DEVELOPER shall report not less than quarterly on progress toward commencement of construction. Quarterly reports will be due on the 15th of the month following the end of the prior quarter (e.g. by April 15th reports on the first quarter are due); 7.2.2 During the construction period, DEVELOPER shall report monthly on progress, submit invoices being paid, and provide evidence of appropriate lien waivers to CITY regardless of whether DEVELOPER is requesting a disbursement from CITY during that month; 2. Upon reaching Stabilized Occupancy, DEVELOPER shall report on the occupancy and financial status of the Project not less than annually. Annual reports shall include HOME Annual Certification of Occupancy form. Additionally, DEVELOPER shall submit copies of its annual audit, prepared by an independent certified public accountant, within one hundred-twenty (120) days of the end of its fiscal year. E.Change in Reporting Requirements and Forms. CITY retains the right to change reporting requirements and forms at its reasonable discretion. CITY will notify DEVELOPER in writing at least 30 days prior to the effective date of such change, and the Parties shall execute an amendment to the Agreement reflecting such change if necessary. F.Recordkeeping and Inspections 1.DEVELOPER shall maintain detailed records of all persons served pursuant to this Agreement. Representatives of CITY, HUD, or their designees may examine any records or information accumulated pursuant to this Agreement. During the Period of Affordability, CITY will conduct on- site inspections to verify compliance with 24 CFR 92.252 as required by 24 CFR 504. All confidential information shall be treated as such by all aforementioned CITY or HUD representatives or designees. 2. '1J.DEVELOPER shall maintain administrative and financial records as required by 24 CFR 92.508, applicable to the activities to be carried out under this agreement, including but not necessarily limited to: (a) Property description and location; (b) Records regarding project requirements that applies for the duration of the period of affordability (all of SubpaH F of 24 CFR); (c) Documentation that the amount of investment in each housing unit is in compliance with the requirements in 24 CFR 92.205(c) and maximum subsidy limits in 24 CFR 92.250 (d) Information about contractors, vendors and other lenders to include but not necessarily be limited to verification of non-debarment and suspension, verification of 23 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C qualifications and experience, legally binding contracts and agreements, invoices and payment records and related correspondence. (See: 24 CFR Part 24); (e) Financial information including, but not necessarily limited to, audits and related correspondence, accounting and financial records, indirect cost analyses, and operating budgets; (f) Other records that include documentation of compliance with other federal requirements in accordance with 24 CFR 92.508 that includes the following requirements to the extent applicable to the funded activity: i. Documentation of efforts to affirmatively further fair housing; ii. If applicable, records documenting compliance with federal law regarding displacement, relocation and property acquisition in accordance with the URA; 111. IV. V. Vl. Records demonstrating compliance with labor requirements set out in 24 CFR 92.354, including contract provisions and payroll records (as applicable); Records concerning lead-based paint set out in 24 CFR Part 35 ; Records supporting requests for waivers of the conflict of interest prohibition set out in 24 CRF 92.356 (if applicable); Records demonstrating compliance with flood insurance requirements under 24 CFR 92.352. G. Records Retention DEVELOPER shall retain all applicable administrative and project records and records pertinent to other federal requirements, as specified in Section 92.508 of the HOME Final Rule, for a period of fifteen (15) years after the termination of all activities funded under this agreement. In this context funded activities extend throughout the period of affordability as stipulated in 24 CFR 92.252 and 92.508. Records for non-expendable property acquired with HOME Program Funds shall be retained for fifteen (15) years after the period of affordability. Notwithstanding the above, if there are litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have commenced before the expiration of the five (5) year period, such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five (5) year period, whichever occurs later. H. Inspections DEVELOPER will provide CITY, applicable federal authorities, and their representatives with access to the Project for the purposes of conducting physical inspections, including individual apartments, common spaces, and the grounds. CITY will conduct periodic physical inspections during construction and at Project completion to ensure the Project is progressing and construction activity meets applicable property standards. 1.CITY Reserves the Right to Audit. CITY reserves the right to perform an audit of ’s project operations and finances at any time during the term of this AGREEMENT and during the Affordability Period and for 5 years 24 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C thereafter, if CITY determines that such audit is necessary for CITY’s compliance with the HOME Regulations or other CITY policies, and DEVELOPER agrees to allow access to all pertinent materials as described herein. If such audit reveals a questioned practice or expenditure, such questions must be resolved within 15 business days after notice to DEVELOPER of such questioned practice or expenditure. If questions are not resolved within this period, CITY reserves the right to withhold further funding under this and/or other Agreement(s) with DEVELOPER. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT DEVELOPER HAS FALSIFIED ANY DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRLATED HOME FUNDS OR SPENT HOME FUNDS ON ANY INELIGIBLE ACTIVITIES, DEVELOPER AGREES TO REIMBURSE CITY THE AMOUNT OF SUCH MONIES PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE LEVIED AGAINST CITY BY HUD BECAUSE OF SUCH ACTIONS 13. INSURANCE A. B. DEVELOPER shall observe sound business practices with respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Agreement. The premises on and in which the activities described in Exhibit A are conducted, and the employees conducting these activities, shall be covered by premise liability insurance, commonly referred to as "DEVELOPER" coverage with CITY named as an additional insured. Upon request of DEVELOPER, CITY may, at its sole discretion, approve alternate insurance coverage arrangements. DEVELOPER will comply with applicable workers' compensation statutes and will obtain employers’ liability coverage where available and other appropriate liability coverage for program participants, if applicable. DEVELOPER will maintain adequate and continuous liability insurance on all vehicles owned, leased or operated by DEVELOPER. All employees of DEVELOPER who are required to drive a vehicle in the normal scope and course of their employment must possess a valid Texas driver's license and automobile liability insurance. Evidence of the employee’s current possession of a valid license and insurance must be maintained on a current basis in DEVELOPER’s files. C. D. E. F. G. Actual losses not covered by insurance as required by this section are not allowable costs under this Agreement and remain the sole responsibility of DEVELOPER. The policy or policies of insurance shall contain a clause which requires that CITY and DEVELOPER be notified in writing of any cancellation or change in the policy at least thirty (30) days prior to such change or cancellation. Insurance will be carried on all housing units under construction and until such time as the new home DEVELOPER takes possession and obtains homeowner’s insurance. 14. EQUAL OPPORTUNITY A. During the performance of this Agreement, the DEVELOPER is subject to Executive Order 11246, as amended, and, therefore, agrees to the following: 25 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C (1) The DEVELOPER will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, or familial status. The DEVELOPER will take affirmative action to ensure that applicants who are employed are treated during employment without regard to their race, color, religion, sex, national origin, or familial status, concerning such employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or their apprenticeship. The DEVELOPER agrees to post in conspicuous places, available to both employees and applicants for employment, notices to be provided by the CITY setting forth provisions of this nondiscrimination clause. (2) The DEVELOPER, in all solicitations or advancements for employees placed by or on behalf of DEVELOPER, shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, or familial status. (3) DEVELOPER will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee’s essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor’s legal duty to furnish information. (4) DEVELOPER will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers’ representative of the contractor’s commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (5) DEVELOPER will comply with all provisions of Executive Order No. 11246 of Sept. 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) DEVELOPER will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (7) in the event of the DEVELOPER’s noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and DEVELOPER may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of Sept. 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 26 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C (8) CITY has included these provisions of paragraphs (1) through (8) in this Agreement pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. CITY will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event CITY becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, CITY may request the United States to enter into such litigation to protect the interests of the United States. B. In accordance with Sections 24 CFR 92.350 and 92.351 of the HOME regulations, except for specific exceptions allowing elderly designated projects to apply age restrictions, no person shall on the ground of race, color, religion, sex, disability, familial status, national origin, or age be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program activity funded in whole or in part from HOME funds. In addition, DEVELOPER shall develop, operate, and maintain the Project in accordance with the following: The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at 24 CFR Part 100; Executive Order 11063, as amended by Executive Order 12259 (3 CFR 1958 B1963 Comp., P. 652 and 3 CFR1980 Comp., P. 307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR Part 107; and of the Civil Rights Act of 1964 (42 U.S. C. 2000(i) (Nondiscrimination in Federally Assisted Programs) and implementing regulations issued at 24 CFR Part 1 ; 2.The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing Regulations at 24 CFR Part 146, and the prohibitions against discrimination against handicapped individuals under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR Part 8 3.The requirements of 24 CFR 5.105(a)(2) requiring that HUD-assisted housing be made available without regard to actual or perceived sexual orientation, gender identity, or marital status and prohibiting DEVELOPER (or their agents) from inquiring about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted housing for the purpose of determining eligibility for the housing or otherwise making such housing available. This prohibition on inquiries regarding sexual orientation or gender identity does not prohibit any individual from voluntarily self-identifying sexual orientation or gender identity; The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., p. 339) (Equal Employment Opportunity) and the implementing regulations issued at 41 CFR Chapter 60; The nondiscrimination requirements of section 282 of the HOME Investment Partnerships Act at title II of the Cranston-Gonzales National Affordable Housing Act, as amended; The requirements of Section 3 of the Housing and Urban Development Act of 1 968 (U.S.C. 1701 u) as evidenced by submission of Form HUD-60002 which the DEVELOPER shall complete and return to CITY within ninety days of the date of this agreement, that: (a) To the greatest extent feasible, opportunities for training and employment arising in connection with the planning and carrying out of any project assisted with HOME funds 27 4. 5 DocuSign Envelope ID: A8531830-13EF4956-A761-1 90BBED57A5C be given to low-income persons residing within the unit of general local government or the metropolitan area as determined by HUD, in which the project is located; and (b) To the greatest extent feasible, contracts for work to be performed in connection with any such project be awarded to business concerns, including but not limited to individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance, or repair, which are located in or owned in substantial part by persons residing in the same metropolitan area as the project. 14.11.2 DEVELOPER Responsibilities for Section 3 Requirements. CITY and DEVELOPER understand and agree that compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall be a condition of the federal financial assistance provided to the project binding upon CITY and DEVELOPER, and their respective successors, assigns, contractors and subcontractors. Failure to fulfill these requirements shall subject DEVELOPER and its contractors and subcontractors and their respective successors and assigns to those sanctions specified by the grant agreement through which federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135. DEVELOPER’s responsibilities include: Implementing procedures to notify Section 3 residents and business concerns about training, employment, and contracting opportunities generated by Section 3 covered assistance; 111.Notifying potential contractors working on Section 3 covered projects of their responsibilities; Facilitating the training and employment of Section 3 residents and the award of contracts to Section 3 business concerns; IV. V. Vl. Vll. Vlll. Assisting and actively cooperating with the Neighborhood Services Department in making contractors and subcontractors comply; Refraining from entering into contracts with contractors that are in violation of Section 3 regulations; Documenting actions taken to comply with Section 3; and Submitting Section 3 Annual Summary Reports (form HUD-60002) in accordance with 24 CFR Part 135.90. IX.Section 3 Reporting Requirements. In order to comply with the Section 3 requirements, DEVELOPER must submit the forms Section 3 Reporting Forms and take the following actions: • Report to the CITY all applicants for employment, and all applicants for employment by contractors and any subcontractors on a quarterly basis. This shall include name, address, zip code, date of application, and status (hired/not- hired) as of the date of the report. 28 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C •Advertise available positions to the public for open competition and provide documentation to CITY with the quarterly report that demonstrates such open advertisement, in the form of printout of Texas Workforce Commission posting, copy of newspaper advertisement, copy of flyers and listing of locations where flyers were distributed, and the like. •Report to the CITY all contracts awarded by contractors and any subcontractors on a quarterly basis. This shall include name of contractor and/or subcontractor, address, zip code, and amount of award as of the date of the report. 6.Subcontracting with Small and Minority Firms, Women’s Business Enterprises: The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise), and 12138 (concerning Women's Business Enterprise) apply to this agreement. DEVELOPER must make efforts to encourage the use of minority and women’s business enterprises in connection with HOME-funded activities. DEVELOPER will cooperate with CITY in its minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, in the procurement of property and services including; without limitation, real estate firms, construction firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services. (a) in order to comply with the reporting requirements of 24 CFR Part 92.508 (a)(7)(ii), DEVELOPER must submit the form Contract and Subcontract Activity Reporting Form for each contract or subcontract with a value of $10,000 or more paid, or to be paid, with HOME funds. This form shall be submitted with the final Reimbursement Request. 7 The nondiscrimination requirements of Section 282 of the HOME Investment Partnerships Act at title II of the Cranston-Gonzales National Affordable Housing Act, as amended. (b) No Discrimination in Employment during the Performance of this AGREEMENT. (c) DEVELOPER agrees to post notices containing this policy against discrimination in conspicuous places available to applicants for employment and employees. All solicitations or advertisements for employees, placed by or on the behalf of the DEVELOPER, shall state that all qualified applicants will receive consideration for employment without regard to race, color, national origin, religion, or sex. (d) During the performance of this AGREEMENT DEVELOPER agrees to the following provision, and will require that its contractors, subcontractors and vendors also comply with such provision by including it in all contracts with its contractors and vendors: 1 [Contractor’s, Subcontractor’s or Vendor’s Name] will not unlawfully discriminate against any employee or applicants for employment because of race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender. 11.[Contractor’s, Subcontractor’s or Vendor’s Name] will take affirmative action to ensure that applicants are hired without regard to race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender and that employees 29 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C are treated fairly during employment without regard to their race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression or transgender. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 8.DEVELOPER’s Contractors and ADA. In accordance with the provisions of the Americans With Disabilities Act of 1990 (“ADA”), DEVELOPER warrants that it will not unlawfully discriminate on the basis of disability in the provision of services to the general public, nor in the availability, terms and/or conditions of employment for applicants for employment with, or employees of DEVELOPER. DEVELOPER WARRANTS IT WILL FULLY COMPLY WITH ADA’S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND WILL DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED BY THIRD PARTIES, CONTRACTORS, SUBCONTRACTORS OR VENDORS AGAINST CITY ARISING OUT OF DEVELOPER’S AND/OR ITS CONTRACTORS’, SUBCONTRACTORS’, VENDORS’, AGENTS’ OR EMPLOYEES’ ALLEGED FAILURE TO COMPLY WITH THE ABOVE-REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF THIS AGREEMENT. 15. CONFLICT OF INTEREST AND VIOLATIONS OF CRIMINAL LAW A.DEVELOPER covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. DEVELOPER further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. DEVELOPER further covenants that no member of its governing body or its staff, DEVELOPERs or employees shall possess any interest in or use this position for a purpose that is or gives the appearance of being motivated by desire for private gain for themselves, or others, particularly those with which they have family, business, or other ties. No officer, member, or employee of CITY and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his/her personal interest or the interest in any corporation, partnership, or association in which he/she has direct or indirect interest. B. C. D. No officer, employee, agent, or consultant of DEVELOPER (known as covered persons) may occupy a HOME-assisted affordable housing unit in the Project. However, this provision does not apply to an employee or agent of DEVELOPER who occupies a housing unit in the Project as a project manager or maintenance worker. 30 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C CITY may approve a waiver to allow a covered person to occupy a unit in the Project based on a written request from DEVELOPER if, in CITY’s sole discretion, a waiver would be appropriate under the provisions of 24 CFR 92.356(f)(2). DEVELOPER shall comply with the applicable conflict of interest provisions in 24 CFR 92.356 for the procurement of goods and services associated with the development or operation of the Project, and DEVELOPER agrees to notify CITY in writing and seek CITY approval prior to entering into any contract with an entity owned in whole or in part by a covered person or an entity owned or controlled in whole or in part by DEVELOPER, its owners, or any of the Guarantors. CITY will review the proposed contract to ensure that the contractor is qualified and that the costs are reasonable. Approval of such a contract will be in CITY’s sole discretion. 1. DEVELOPER shall establish conflict of interest policies for Federal Awards and shall provide such policies in writing to CITY in accordance with the requirements of 2 CFR Part 200. 1 12. 2. 3. Disclosure of Conflicts of Interest. In compliance with 2 CFR Part 200.112, DEVELOPER is required to timely disclose to CITY in writing any potential conflict of interest, as described in this section. Disclosure of Texas Penal Code Violations. DEVELOPER affirms that it will adhere to the provisions of the Texas Penal Code which prohibits bribery and gifts to public servants. 4. Disclosure of Federal Criminal Law Violations. In compliance with 2 CFR Part 200.113, DEVELOPER is required to timely disclose to CITY all violations of federal criminal law involving fraud, bribery or gratuity violations potentially affecting this AGREEMENT. 16. POLITICAL OR SECTARIAN ACTIVITY A. B. None of the performance rendered hereunder shall involve any political activity (including, but not limited to, any activity to further the election or defeat of any candidate for public office) or any activity undertaken to influence the passage, defeat or final content of legislation. None of the performance rendered hereunder shall involve or benefit in any, manner any sectarian or religious activity. 17. WARRANTIES DEVELOPER represents and warrants that: A. All information, reports and data heretofore or hereafter requested by CITY and furnished to CITY, are complete and accurate as of the date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to CITY. B. Any supporting financial statements heretofore requested by CITY and furnished to that since said date, there has been no material change, adverse or otherwise, in the financial condition of DEVELOPER. C. No litigation or legal proceedings are presently pending or threatened against DEVELOPER. 31 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C D. None of the provisions herein contravenes or is in conflict with the authority under which DEVELOPER is doing business or with the provisions of any existing indenture or agreement of DEVELOPER. E. DEVELOPER has the power to enter into this AGREEMENT and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this AGREEMENT. F. None of the assets of DEVELOPER is subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by DEVELOPER to CITY. G. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. 18. COVENANTS DEVELOPER agrees to take appropriate measures to enforce the affordability requirements on property assisted with HOME funds. Property liens or other forms of enforcement, with the City of Denton as Trustee, must remain with the property for the required affordability period. During the period of time that payment may be made hereunder and so long as any payments remain unliquidated, DEVELOPER shall not, without the prior written consent of the Community Development Manager or his/her authorized representative : 1.Mortgage,pledge or otherwise encumber or suffer to be encumbered any of the assets of99 DEVELOPER now owned or hereafter acquired by it, or permit any pre-existing mortgages, liens, or other encumbrances to remain on, or attached to, any assets of DEVELOPER which are allocated to the performance of this AGREEMENT and with respect to which CITY has DEVELOPER hereunder. 2.Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or claims for money due or to become due. Sell, convey, or lease all or substantial part of its assets. 4.Make any advance or loan to, or incur any liability for any other firm, person, entity or corporation as guarantor, surety, or accommodation endorser. Sell, donate, loan or transfer any equipment or item of personal property purchased with funds paid to DEVELOPER by CITY, unless CITY authorizes such transfer. C. DEVELOPER agrees, upon written request by CITY, to require its employees to attend training sessions sponsored by the Community Development Division. D. The DEVELOPER shall not be permitted to assign this Agreement or designate a third party to undertake any part of this program without the express written permission of the City. In such an instance where a third party is permitted, said third party must be bound in writing to the same provisions as required in this Agreement. 32 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C 19. MONITORING AND EVALUATION A. CITY shall perform on-site monitoring of DEVELOPER’s performance under this AGREEMENT. B. DEVELOPER understands and agrees that it will be subject to monitoring by CITY for compliance with the HOME Regulations, the terms of this AGREEMENT and the Loan Documents during the Affordability Period. DEVELOPER will provide reports and access to project files as requested by CITY during the Affordability Period and for 5 years after it ends. C. DEVELOPER agrees to cooperate fully with CITY in the development, implementation and maintenance of record-keeping systems and to provide data determined by CITY to be necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities. D. DEVELOPER agrees to cooperate in such a way so as not to obstruct or delay CITY in such monitoring and to designate one of its staff members to coordinate the monitoring process as requested by CITY staff. E. CITY shall provide a written within 30 days of the monitoring. evaluation of contract performance to the DEVELOPER F. Within 60 days of notification by the CITY, the DEVELOPER shall provide complete responses include a statement acknowledging any corrective action required to be taken due to City of Denton monitoring findings and concerns. G. DEVELOPER shall submit copies of any fiscal, management, or audit reports by any of DEVELOPER's funding or regulatory bodies to CITY within five (5) working days of receipt by DEVELOPER. H. Representatives of CITY, HUD, HUD Office of the Inspector General, and the United States Comptroller General shall have access during regular business hours, upon at least 48 hours prior notice, to DEVELOPER’s offices and records and to DEVELOPER’s officers and agents that are related to the use of the HOME Funds and the requirements of the HOME Regulations during the Affordability Period, and to DEVELOPER’s officers, agents, employees, contractors, subcontractors and vendors for the purpose of such monitoring 1.In addition to other provisions of this AGREEMENT regarding frequency of monitoring, CITY reserves the right to perform desk reviews or on-site monitoring of DEVELOPER’s compliance with the terms and conditions of this AGREEMENT and the Loan. After each monitoring visit, CITY shall provide DEVELOPER with a written report of the monitor’s findings. If the monitoring report notes deficiencies in DEVELOPER’s performance, the report shall include requirements for the timely correction of said deficiencies by DEVELOPER. Failure by DEVELOPER to take the action specified in the monitoring report may be cause for suspension or termination of this AGREEMENT as provided herein, or CITY may take all actions allowed in the Loan Documents. J. K DEVELOPER shall annually provide to CITY the results of any state or federal monitoring related to the project including any monitoring by TDHCA. Such results shall be submitted annually to CITY with the submission of its annual audit and financial statements. This shall be applicable for the duration of the Affordability Period and shall survive the earlier termination or expiration of this AGREEMENT. 33 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C 20. DIRECTORS' MEETINGS A. DEVELOPER shall ensure that the CITY is notified of all meetings, regular and special called, of the board of directors. Notice should be received by the CITY at least 72 hours prior to the meeting. Such notice shall include an agenda and a brief description of the matters to be discussed. B. DEVELOPER understands and agrees that CITY representatives shall be afforded access to all of the Board of Directors’ meetings. C. Minutes of all meetings of DEVELOPER's governing body shall be available to CITY within fifteen (15) working days of approval. 21. NEPOTISM DEVELOPER shall not employ in any paid capacity any person who is a member of the immediate family of any person who is currently employed by DEVELOPER, or is a member of DEVELOPER's governing board. The term "member of immediate family" includes: wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece, step- parent, step-child, half-brother and half-sister. 22. BREACH; SUSPENSION OF FUNDING A.Upon determination by CITY of DEVELOPER's failure to timely and properly perform each of the requirements, time conditions and duties provided herein, CITY, without limiting any rights it may otherwise have, may, at its discretion, and upon fifteen (15) working days written notice to DEVELOPER, withhold fbrther payments to DEVELOPER. Such notice may be given by mail to the Executive Officer and the Board of Directors of DEVELOPER. The notice shall set forth the default or failure alleged, and the action required for cure. The period of such suspension shall be of such duration as is appropriate to accomplish corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the suspension period, if CITY determines the default or deficiency has been satisfied, DEVELOPER may be restored to full compliance status and paid all eligible funds withheld or impounded during the suspension period. If, however, CITY determines that DEVELOPER has not come into compliance, this AGREEMENT may be terminated under section 23 of this AGREEMENT. B. 23. TERMINATION A.The CITY shall have the right to terminate this AGREEMENT, in whole or in part, at any time whenever the CITY determines that the DEVELOPER has failed to comply with any term of this AGREEMENT. The CITY shall notify the DEVELOPER in writing thirty (30) days prior to the date of termination, the effective date of such termination, and in the case of partial termination, the portion of the AGREEMENT to be terminated. Property shall be subject to disposition. The CITY shall have the right to terminate this AGREEMENT for convenience, in whole or in part by written notification to the DEVELOPER which shall include the reason for such termination, the effective date and the portion to be terminated. B 34 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C C. D. E. The DEVELOPER shall have the right to terminate this AGREEMENT for convenience, in whole or in part, by written notification to the CITY, which shall include the reason for such termination, the effective date and the portion to be terminated. If, in the case of a partial termination, it is the determination of CITY that the remaining portion of the award is not sufficient to accomplish the project as described in the Work Statement, CITY may require that the entire grant be terminated. In the event of termination, all property and finished or unfinished documents, data, studies, and reports purchased or prepared by the DEVELOPER under this Agreement shall, at the option of the City, become the property of the City. F. Default. The actions noted below shall constitute an event of default by DEVELOPER hereunder. CITY may give written notice of default to the DEVELOPER, by registered or certified mail, addressed to the address stated in this AGREEMENT, or such other address as may subsequently, upon appropriate written notice thereof to CITY, be designated by the DEVELOPER as its legal business address: 1.Failure to comply with the terms and conditions hereof; 2.Failure to comply with HOME Program regulations, fair housing laws, and other federal requirements related to the Project; 3.A default by DEVELOPER under any other of the Loan Documents; and 4.Any event of fraud, misrepresentation, gross negligence, or willful misconduct by DEVELOPER in the execution or performance of this AGREEMENT or in its application for participation in the HOME Program. G. Remedies. In the event of default by DEVELOPER hereunder, which is not cured within thirty (30) days of the mailing of written notice by CITY as described in section 23.E, CITY may seek any combination of the following remedies: 1.Withhold any further payments to be made under this AGREEMENT until such time as DEVELOPER's breach has been cured in accordance with the terms and conditions of any cure period provided by CITY (but CITY may, in its sole discretion, make disbursement after the occurrence of an Event of Default without thereby waiving its rights and remedies hereunder); 2.Apply to any appropriate court, State or Federal, for specific performance, in whole or in part, of the covenants and agreements contained herein, or for an injunction against any violation of such covenants and agreements; 3.Enter upon the Property and take possession thereof, together with the Project then in the course of construction, and proceed either in its own name or in the name of the DEVELOPER, as the attorney-in-fact of the DEVELOPER (which authority is coupled with an interest and is irrevocable by the DEVELOPER), to complete or cause to be completed the Project, at the cost and expense of the DEVELOPER; 4 Require the use of or change in professional property management; DocuSign Envelope ID: A8531830-13EF4956-A761.190BBED57A5C 5. 6. 7. Require the replacement of the General Partner of DEVELOPER; Pursue the appointment of a receiver to collect mortgage payments and profits or to take possession of the Project; Declare immediately due and payable all principal, accrued interest and annual fees on the HOME Forgivable Payment Loan and/or Note, together with all other sums payable thereunder and the same shall thereupon be immediately due and payable without presentment or other demand, protest, notice of dishonor or any other notice of any kind, all of which are hereby expressly waived; Apply sanctions set forth in 24 CFR 92, if determined by CITY to be applicable; Apply to any appropriate court, State or Federal, for such other relief as may be appropriate and allowed by law, since the injury to CITY arising from a default under any of the terms of this AGREEMENT would be irreparable and the amount of damage would be difficult to ascertain; and 8. 9. 10. Terminate this AGREEMENT by giving written notice to DEVELOPER of such termination and specifying the effective date of such termination. If the AGREEMENT is terminated by CITY as provided herein, DEVELOPER shall have no claim of payment or claim of benefit for any incomplete project activities undertaken under this AGREEMENT. H. Termination for Convenience. In addition to the termination provision, this AGREEMENT may be terminated by CITY upon thirty (30) days written notice. In the event of termination under this section, DEVELOPER shall have no claim of payment or claim of benefit for any incomplete project activities undertaken under this AGREEMENT and shall not be entitled to, and hereby waives, all claims for lost profits and all other damages and expenses. In terminating in accordance with 2 CFR 200, Appendix II, this AGREEMENT may be terminated in whole or in part only as follows: By CITY with the consent of DEVELOPER in which case the Parties shall agree upon the termination conditions, including the effective date and in the case of partial termination, the portion to be terminated; or 2.By DEVELOPER upon written notification to CITY setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. In the case of a partial termination, CITY may terminate the Contract in its entirety if CITY determines in its sole discretion that the remaining portion of the Contract to be performed or HOME Funds to be spent will not accomplish the purposes for which this AGREEMENT was made. 1.Failure to Submit Required Reports and Documentation During Affordability Period. If DEVELOPER fails to maintain all records and documentation as required in section 12, or fails to submit any report or documentation required by this AGREEMENT after the Required Improvements are completed, or if the submitted report or documentation is not in compliance with this AGREEMENT or the HOME Regulations as determined by CITY, CITY will notify DEVELOPER in writing and the DEVELOPER will have 30 calendar days from the date of 36 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C the written notice to obtain or recreate the missing records or documentation, or submit or resubmit any such report or documentation to CITY. If DEVELOPER fails to maintain the required reports or documentation or submit or resubmit any such report or documentation within such time, CITY shall have the right to terminate this AGREEMENT effective immediately upon written notice of such intent with no penalty or liability to CITY. In the event of termination under this Section 1 1.3, any HOME Funds paid to DEVELOPER must be repaid to CITY within 30 days of termination. Failure to repay such HOME Funds will result in CITY exercising all legal remedies available to CITY under this AGREEMENT and the Loan Documents. J. In General. 1.Unless specifically provided otherwise in this AGREEMENT, DEVELOPER shall be in default if DEVELOPER breaches any term or condition of this AGREEMENT. In the event that such a breach remains uncured after 30 calendar days following written notice by CITY (or such other notice period as may be specified herein or as determined by both Parties mutually and in good faith), CITY shall have the right to elect, in CITY’s sole discretion, to: (a) extend DEVELOPER’s time to cure; (b) terminate this AGREEMENT effective immediately upon written notice of such intent to DEVELOPER; or (c) pursue any other legal remedies available to CITY. 2 CITY’s remedies may include: (a) Direct DEVELOPER to prepare and follow a schedule of actions for carrying out the affected activities, consisting of schedules, timetables and milestones necessary to implement the affected activities, including extending the Affordability Period. (b) Direct DEVELOPER to establish and follow a management plan that assigns responsibilities for carrying out the remedial activities. (c) Cancel or revise activities likely to be affected by the performance deficiency, before expending HOME Funds for the activities. (d) Reprogram HOME Funds that have not yet been expended from affected activities to other eligible activities or withhold HOME Funds. (e) Direct DEVELOPER to reimburse CITY in any amount of HOME Funds not used in accordance with the HOME Regulations. (f) Suspend reimbursement of HOME Funds for affected activities. (g) Any other appropriate action including but not limited to any remedial action legally available such as declaratory judgment, specific performance, damages, temporary or permanent injunctions, termination of this AGREEMENT or any other contracts with DEVELOPER, and any other available remedies. (h) in the event of termination under this Section, all HOME Funds awarded but unpaid to DEVELOPER pursuant to this AGREEMENT shall be immediately rescinded and DEVELOPER shall have no further right to such funds and any HOME Funds already 37 DocuSign Envelope ID: A8531 830-13EF4956-A761-190BBED57A5C paid to DEVELOPER must be repaid to CITY within 30 days of termination. Failure to repay such HOME Funds will result in CITY exercising all legal remedies available to CITy under this AGREEMENT or the Loan Documents. K. No Funds Disbursed while in Breach. DEVELOPER understands and agrees that no HOME Funds will be paid to DEVELOPER until all breaches or defaults are cured to CITY’s satisfaction. L. No Compensation After Date of Termination. In the event of termination, DEVELOPER shall not receive any HOME Funds in compensation for work undertaken after the date of termination. M. Rights of CITY Not Affected. Termination shall not affect or terminate any of the existing rights of CITY against DEVELOPER, or which may thereafter accrue because of such default, and this provision shall be in addition to any and all other rights and remedies available to CITY under the law and Loan Documents including, but not limited to, compelling DEVELOPER to complete the Required Improvements in accordance with the terms of the Contract. Such termination does not terminate any applicable provisions of this AGREEMENT that have been expressly noted as surviving the term or termination of this AGREEMENT. No delay or omission by CITY in exercising any right or remedy available to it under this AGREEMENT shall impair any such right or remedy or constitute a waiver or acquiescence in any DEVELOPER default. N. Waiver of Breach Not Waiver of Subsequent Breach. The waiver of a breach of any term, covenant, or condition of this AGREEMENT shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. O. Civil, Criminal and Administrative Penalties. Failure to perform all the Contract terms may result in civil, criminal or administrative penalties, including, but not limited to those set out in this AGREEMENT. P. Termination for Cause. 1 CITY may terminate this AGREEMENT in the event of DEVELOPER’s default, inability, or failure to perform, subject to notice, grace and cure periods. In the event CITY terminates this AGREEMENT for cause, all HOME Funds awarded but unpaid to DEVELOPER pursuant to this AGREEMENT shall be immediately rescinded and DEVELOPER shall have no further right to such funds and any HOME Funds already paid to DEVELOPER must be repaid to CITY within 30 calendar days of termination. Failure to repay such HOME Funds will result in CITY exercising all legal remedies available to CITy under this AGREEMENT or the Loan Documents. DEVELOPER ACKNOWLEDGES AND AGREES THAT IF CITY TERMINATES THIS AGREEMENT FOR CAUSE, NEITHER DEVELOPER NOR ANY AFFILIATES OF DEVELOPER SHALL BE CONSIDERED FOR ANY OTHER CITY CONTRACT FOR HOME FUNDS FOR A MINIMUM OF 5 YEARS FROM THE DATE OF TERMINATION. This provision shall not apply to the Investor. 38 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C DEVELOPER may terminate this AGREEMENT if CITY does not provide the HOME Funds substantially in accordance with this AGREEMENT. In such event, the termination of the Contract shall have the effect of returning the Parties to their respective circumstances as existed prior to the execution of this AGREEMENT, and no terms or obligations shall survive the date of termination, including but not limited to, reporting, inspections or the Affordability Period. Q. Dissolution of DEVELOPER Terminates Contract. In the event DEVELOPER is dissolved or ceases to exist, this AGREEMENT shall terminate. In the event of termination under this Section, all HOME Funds are subject to repayment and/or CITY may exercise all of its remedies under this AGREEMENT and the Loan Documents. R. Reversion of Assets. In the event this AGREEMENT is terminated with or without cause, all tangible personal property owned by DEVELOPER that was acquired or improved with the HOME Funds shall belong to CITY and shall automatically transfer to CITY or to such assignees as CITY may designate. Any unspent HOME funds and any accounts receivable attributable to the use of HOME funds held by DEVELOPER at the time of termination shall be returned to CITY. S. Notice of Termination under Subordination Agreements. CITY shall not terminate this AGREEMENT without first giving notice and opportunity to cure as required in the Subordination Agreements. T. Notice to Investor of Default. CITY shall furnish Investor with notice of any default under this AGREEMENT at the address shown below. 24. INDEMNIFICATION A.It is expressly understood and agreed by both parties hereto that CITY is contracting with DEVELOPER as an independent DEVELOPER and that as such, DEVELOPER shall save and hold CITY, its officers, agents and employees harmless from all liability of any nature or kind, including costs and expenses for, or on account of, any claims, audit exceptions, demands, suits or damages of any character whatsoever resulting in whole or in part from the performance or omission of any employee, agent or representative of DEVELOPER. DEVELOPER agrees to provide the defense for, and to indemnify and hold harmless CITY its agents, employees, or DEVELOPERs from any and all claims, suits, causes of action, demands, damages, losses, attorney’s fees, expenses, and liability arising out of the use of these contracted funds and program administration and implementation except to the extent caused by the willful act or omission of CITY, its agents, employees, or DEVELOPERs. DEVELOPER hereby agrees to reimburse, indemnify and save and hold CITY and its successors and assigns harmless from and against any damage, liability, loss, penalty, charge, cost or deficiency, including but not limited to any repayment obligation to HUD incurred by CITY under 24 CFR 92.503(b), reasonable attorney's fees, and other costs and expenses incident to monitoring, remedial actions, proceedings or investigations and the defense of any claim, arising out of, resulting from or related to, and to pay to CITY or its successor in interest, B. C 39 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C on demand, the full amount of any sum which CITY or its successor has paid or becomes obligated to pay on account of: 1. Any misrepresentation, omission, or the breach of any representation or warranty of the DEVELOPER under the Loan Documents; 2. Any failure of the DEVELOPER to fully perform or observe or cause to be performed or observed any term, provision, covenant, or agreement to be performed or observed by the DEVELOPER, or after an assumption, by a subsequent DEVELOPER, pursuant to the Loan Documents; 3. 4. Any claims, assessments, or liabilities for charges, penalties, liens, taxes, or deficiencies arising from or relating to the use and operation by the DEVELOPER, or after an assumption, DEVELOPER’s successors to the Property or Project; or The manufacture, generation, storage, use, treatment, transportation, or disposal of solid waste, or any toxic or hazardous materials, substances, or pollutants either directly or indirectly by the DEVELOPER or any of their past or present affiliates on the Property described on Exhibit A, which occurs prior to possession passing from the DEVELOPER pursuant to a Sheriffs Deed upon completion of a foreclosure or upon acceptance of a Deed in Lieu of Foreclosure. D. The provisions of this section shall survive the termination of this HOME AGREEMENT, the other Loan Documents, the payment of CITY Deferred Payment Loan, and the liabilities and the exercise of any right or remedy under the Loan Documents. 25. IMMIGRATION NATIONALITY ACT. CITY actively supports the Immigration & Nationality Act (INA) which includes provisions addressing employment eligibility, employment verification, and nondiscrimination. DEVELOPER shall verify the identity and employment eligibility of all employees who perform work under this AGREEMENT. DEVELOPER shall complete the Employment Eligibility Verification Form (1-9), maintain photocopies of all supporting employment eligibility and identity documentation for all employees, and upon request, provide CITY with copies of all 1-9 forms and supporting eligibility documentation for each employee who performs work under this AGREEMENT. DEVELOPER shall establish appropriate procedures and controls so that no services will be performed by any employee who is not legally eligible to perform such services. DEVELOPER shall provide CITY with a certification letter that it has complied with the verification requirements required by this AGREEMENT. DEVELOPER shall indemnify CITY from any penalties or liabilities due to violations of this provision. CITY shall have the right to immediately terminate this AGREEMENT for violations of this provision by DEVELOPER. 26. NOTICE For purposes of this Agreement, all official communications and notices among the parties shall be deemed made as of the date mailed if sent postage paid to the parties and address set for below: TO CITY: TO DEVELOPER: Community Development Manager City of Denton Executive Director Habitat For Humanity of Denton County, Inc. 40 DocuSign Envelope ID: A8531830-13EF-4956-A76 1-190BBED57A5C 401 N. Elm Street Denton, Texas 76201 172 1 N Carroll Blvd Denton, Texas 76201 27. VENUE This AGREEMENT shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this AGREEMENT shall be in a court of competent jurisdiction sitting in Denton County, Texas. 28. MISCELLANEOUS A.DEVELOPER acknowledges that in accordance with Chapter 2271 of the Texas Government Code, CITY is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1 ) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms “boycott Israel” and “company” shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this agreement, DEVELOPER certifies that DEVELOPER’s signature provides written verifIcation to the CITY that DEVELOPER: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach Sections 2252 and 2270 of the Texas Government Code restrict CITY from contracting with companies that do business with Iran, Sudan, or a foreign terrorist organization. By signing this agreement, DEVELOPER certifies that DEVELOPER’s signature provides written verification to the CITY that DEVELOPER, pursuant to Chapters 2252 and 2270, is not ineligible to enter into this agreement and will not become ineligible to receive payments under this agreement by doing business with Iran, Sudan, or aforeign terrorist organization . Failure to meet or maintain the requirements under this provision will be considered a material breach DEVELOPER acknowledges that in accordance with Chapter 2274 of the Texas Government Code, CITY is prohibited from entering into a contract with a company for goods or services unless the contract contains written verification from the company that it (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. The terms “boycott energy company” and “company” shall have the meanings ascribed to those terms in Section 809.001 of the Texas Government Code. By signing this agreement, DEVELOPER certifies that DEVELOPER’s signature provides written verification to the CITY that DEVELOPER: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. DEVELOPER acknowledges that in accordance with Chapter 2274 of the Texas Government Code, CITY is prohibited from entering into a contract with a company for goods or services unless the contract contains written verification from the company that it (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The terms “discriminate against a firearm entity or firearm trade association,” “firearm entity” and “firearm trade association” shall have the meanings ascribed to those terms in Chapter 2274 of the Texas Government Code. By B. C. D 41 DocuSign Envelope ID: A8531830-13EF4956-A761-190BBED57A5C signing this agreement, DEVELOPER certifies that DEVELOPER’s signature provides written verification to the City that DEVELOPER: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or fIrearm trade association; and (2) will not discriminate during the term of the contract against a fIrearm entity or firearm trade association. Failure to meet or maintain the requirements under this provision will be considered a material breach. IN WITNESS OF WHICH this Agreement has been executed on this the 20 day of February , 20 24 CITL(lfuRFIqON BY:1 s''' H„@ HABITAT FOR HUMANITY OF DENTON COUNTY, INC. r.,.„„,„., M By: [ (pr& HALLaM £lttiwsowj eP Lora Blakeslee Atkinson, MNM 2 SARA HENSLEY, CITY MANAGER ATTEST: JESUS SALAZAR, CITY SECRETARY ATTEST: Brian Strohl BOARD POSITION: President Habitat For Humanity of Denton County, Inc. tXx:uSlgned by: JaM S aIM)ar DoeuSigned by: BgMTr A#38-+ APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY Scott Bray 2024.02.06 16:26:15 -06'OO' 42 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms Director of Community Services Title Community Services Department Date Signed : 2/6/2024 43 DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C EXHIBIT A SCOPE OF SERVICES Description of Project: HOME funds will be used to pay costs associated with construction of four (4) homebuyer units located at Habitat Village (located in Southeast Denton between Duncan St. and Hill St. and along Smith St.), Denton, Texas. The following will be completed but not limited, based on cost and funding availability: • • • HVAC Plumbing Flatwork/Foundation Connections of utilities from house to city utilities other construction costs as needed Unit 1 Lot 10 Unit 2 Lot 1 1 Unit 3 Lot 12 Unit 4 Lot 13 $77,337.74 $77,337.73 Estimated Project Timeline Habitat Village: 4 Units Project 1 : 2 Homes September - December 2024 Project 2: 2 Homes February - June 2025 CONSTRUCTION TIMELINE Feb 2024 Funding Benchmark: DEVELOPER has identified or raised for 4 homes _% of funding Feb 2024 Project Approval: Contract is executed with DEVELOPER and approved by City Council Mar 2024 Jul 2024 Training: Subrecipient Agreement Training Financial Reporting: DEVELOPER begins reporting financial information 2024-2026 Pro 2 homes Quaderly Check-In: Status of Project & Fundraising (September, December, March, & June) ect 1 Mp (ii 2 Homes Review Homebuyer’s Income – if project and closing takes longer than 6 months to complete, income will need be recertified July 2024 Aug 2024 Dec 2024 Jan 2025 Construction Bidding DocuSign Envelope ID: A8531830-13EF-4956-A761-190BBED57A5C Sep - Dec 2024 1 Feb – Jun 2025 Project Construction Project Construction Completion Project 1 / Final Inspection by Community Development Request for Reimbursement after portions completed Construction Portion of Project Closed Dec 2024 1 Jun 2025 e Jan 2024 1 Jul 2025 OSING FOR HOMEBUYER Apr 2025 Sep 2025 Review Homebuyer Income again if did not meet the 6-month requirement City of Denton Lien is provided at CLOSING to be signed Provide: Homebuyer Contracts, Updated Title Policy, Closing Docs Project Closed Apr 2025 Apr 2025 Apr 2025 Sep 2025 Sep 2025 Sept 2025 DocuSign Envelope ID: A8531830-13EF-+956-A761-190BBED57A5C EXHIBIT B BUDGET Construction costs: 5309,350.93 Please note: if other funding sources and improvements are included in the project, Habitat for Humanity of Denton County, Inc., prior to the start of construction, shall provide the Community Development Department with a total project budget, documentation of all funding sources and commitments, and a project planning/construction schedule. HOME FUNDS BUDGET Construction of four (4) single family homebuyer units $77,337.74 $77,337.73 r r