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HomeMy WebLinkAboutRES 06-285 RESOLUTION NO. 06-285 WHEREAS, City Council approved Resolution No. 06-199 on July 11th, 2006 allocating $100,000 from federal HOME funds to Statewide Consolidated Community Development Corporation ("Statewide") to assist with infrastructure and architectural/engineering costs associated with the construction of a 15-unit apartment complex at 1005 Lucas Drive, conditioned upon the organization receiving the necessary funding to complete the project and successful completion of the necessary environmental review; and, WHEREAS, Villa de Lucas, Inc. is a not for profit corporation organized and affiliated with Statewide Consolidated Community Development Corporation; and, WHEREAS, HUD has requested the funding agreement be amended to reflect Villa de Lucas, Inc. as the intended recipient of the HOME funds: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT Resolution No.06-199 is amended to allow assignment of the allocation of$100,000 from federal HOME funds to Villa de Lucas, Inc. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 26th day of September, 2006. e 'unnoh`���� i�� �I� - Mayor Guy N. Goodson - (3 uw i Lu SUBRECIPIENT FUNDING AGREEMENT between the CITY OF BEAUMONT and VILLA DE LUCAS,INC. This Community Housing Development Allocation Funding Agreement(hereinafter the Agreement)is made and entered into by and between the CITY OF BEAUMONT,a Home Rule Municipal Corporation incorporated under the laws of the State of Texas (hereinafter the City), and the Villa de Lucas, Inc., a Texas non-profit corporation, located at 2725 S.4`h St.,Beaumont,TX 77703. WHEREAS,the City of Beaumont has received a HOME grant allocation from the United States Department of Housing and Urban Development(HOME Program No.M-03-MC-48-0201); WHEREAS,the City has the objective of providing for the development of low-to-moderate income housing for residents of the City through its Community Development Division; WHEREAS,pursuant to the authority of Resolution Number 06-199,passed by the Beaumont City Council on 06/27/06, the Statewide Consolidated Community Development Corporation, Inc. (Statewide)will enter into a Surecipient Agreement with the City for HOME funds totaling One Hundred Thousand Dollars and no/100 ($100,000.00); WHEREAS,the City,having met the requirement to reserve not less than 15 percent of the HOME allocation for any fiscal year for investment only in housing to be developed, sponsored, or owned by certified CHDOs pursuant to applicable U S Department of Housing and Urban Development(HUD)regulations,has available non CHDO Reserve funds; WHEREAS,the need for services and housing for the developmentally disabled has been identified in the City's 2005 Consolidated Plan; WHEREAS,Statewide Consolidated Community Development Corporation,as sponsor,has been awarded a capital advance in the amount of One Million Five Hundred Thirty-Two Thousand Nine Hundred Dollars and no/100($1,532,900.00)for the acquisition and construction of a 15 unit Section 811 Developmentally Disabled housing facility(the Property hereinafter)located at 1005 E.Lucas Drive,which will provide decent and affordable housing to very-low income citizens who are developmentally disabled.Pursuant to the requirements of the award, Statewide has formed Villa de Lucas,Inc., a Texas not-for profit corporation,which shall be the owner of the Property. WHEREAS,The HOME allocation of One Hundred Thousand Dollars and no/100($100,000.00)will be used for architectural,engineering and infrastructure costs associated with the construction of the Property. WHEREAS, the City desires to assist the Subrecipient in providing for said development through funds provided by the HOME Program; NOW,THEREFORE,FOR AND IN CONSIDERATION of the mutual purposes and obligations set forth herein,the City and the Subrecipient covenant and agree as follows: This Agreement sets forth the understanding of the parties concerning the City's HOME allocation as approved by HUD. It is the intent of this Agreement to outline what eligible activities and procedures the Subrecipient must comply with in order to qualify for a portion of the City's HOME allocation. The parties have severally and collectively agreed, and by the execution hereof are bound, to the mutual obligations and to the performance and accomplishment of the tasks described herein. Section 1 -City's Responsibilities A. The Housing Manager,or other designated City of Beaumont Housing&Community Development Staff, will act as liaison on behalf of the City. 1 B. The City agrees to assume overall responsibility as the Grantee for ensuring that the Housing Assistance programs using HOME funds are carried out in accordance with the HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete and provide documentation as required by HUD for program reporting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of One Hundred Thousand and no/100($100,000.00)on a reimbursement basis to the Subrecipient for eligible activities as outlined in 24 CFR 92.205-206(attached hereto),carried out within the City's jurisdictional boundaries,specifically,the construction of the Property of which two(2)units of the Property will be HOME assisted units at a maximum per unit subsidy of$50,000.00,not to exceed$100,000.00for both units. Funding will be prgvided at a maximum ofseventy-two thousand and no/100 dollars($72,000)forArchitectural&Engineering costs,and twenty-eight thousand and no 1100 dollars($28,000)for Infrastructure costs. The City must be notified in writing of any adjustments to the per unit subsidy set forth in this Agreement. Specifically, activities carried out will include architectural & engineering,and infrastructure costs associated with the said construction. Section 2-Villa de Lucas'Responsibilities A. The Executive Director for Villa de Lucas,hereafter Subrecipient,or other designated Subrecipient staff, will act as liaison on behalf of the Subrecipient. B. Villa de Lucas agrees to execute any and all documents requested by the City for compliance with the HOME Investment Partnership Program,as specified in 24 CFR 92.505(b)(attached hereto)and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-133 (Uniform Administrative Requirements for Grants and Cooperative Agreements to States,Local Governments,and Non-Profit Organizations, and with the requirements of OMB Circular A-122, Cost Principles for Non-profit Organizations. D. Villa de Lucas agrees to assure that all construction activities will meet or exceed all written locally adopted Property Standards as well as all applicable local and state codes and other federal requirements. Within ninety(90)days of the execution of this agreement,Villa de Lucas will adopt the City's construction specifications and standards to be used on projects funded by this agreement. All floor plans must be certified as having met or exceeded the Model Energy Code prior to construction. Variations from these standards should be approved in writing by the City's representative. Quality and affordability shall be the criteria used to determine whether a requested variance will be approved. E. Subrecipient shall perform or cause to be performed the following services:the construction of a fifteen (15) unit rental apartment project and provide affordable housing to very-low income citizens who are developmentally disabled,located at 1005 E.Lucas,Beaumont,Texas,legally described as PL D 19 TR 77-A,A WILLIAMS ("Property"). Two(2)of the fifteen(15)units shall be considered HOME-assisted. The affordability period is defined in Section 2(I)of this Agreement. F. Villa de Lucas agrees to complete the Property and lease all units of the Property to eligible very-low income families within two(2)years from the date of this agreement,or by federally required deadlines,whichever is sooner. For projects including acquisition for new construction,the construction must begin within one(1)year of the acquisition of the property. The issuance of a building permit will constitute start of construction. If construction cannot be commenced by its established start date,the Subrecipient shall notify the City in writing at least 30 days prior to the commencement date of the specific nature of the events that prevent the commencement ° a of construction. The City shall either approve a new commencement date or deny the request for extension. The decision of the City's representative shall be final. If a new start date is not approved, funds allocable to the structure will be removed from the contract and the Subrecipient will be required to repay to the City any funds expended. G. Subrecipient shall implement its acquisition duties under this Agreement in accordance with the following: I. Subrecipient shall hire an architect to prepare written plans and specifications for the construction activities described in paragraph one above. The cost of preparation of plans and specifications by a licensed architect and/or engineer shall be a reimbursable 2 item under this Agreement if the architect/engineer is solicited in accordance with federal requirements and if the architect/engineer is not an employee of Subrecipient. Any written agreements with an architect/engineer shall include all applicable federal requirements and shall be approved by City prior to execution. Amendments to this Agreement will not be granted for delays due to use of volunteer labor for architectural and/or engineering services which impede the implementation of services. Any general contractor involved in the preparation of plans and specifications shall not be eligible to bid on the project. 2. In the event that bids received for construction exceed the project construction budget by more than 25%, City shall not reimburse Subrecipient for any charges by architect for redesign of project and rebid. Redesign and rebid expenses shall be the responsibility of Subrecipient or architect. 3. All plans and specifications shall be reviewed and approved by the City's Housing Department for grant compliance prior to Subrecipient soliciting bids for construction. If plan revisions are required by the City's Housing Services Department, said plans and specifications shall be revised prior to releasing a notice soliciting bids for construction. 4. Subrecipient shall submit construction plans to the City's Building Codes Division for review and receive approval of said plans prior to soliciting bids for construction. If plan revisions are required by the City's Building Codes Division,said plans shall be revised in accordance with the requirements of the Building Codes Division prior to releasing a notice soliciting bids for construction. 5. Subrecipient shall assure that all procurement transactions be conducted in a manner that complies with 24 CFR Part 86, which is to provide, to the maximum extent practical, open and free competition. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished by including the comparison of price quotations submitted,market prices and/or similar indicia,together with discounts.Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. Subrecipient shall insure that the construction contractor has the appropriate license(s)to do the intended work and that the necessary construction permit(s) is/are obtained and shall file a Notice of Commencement. 6. Subrecipient shall ensure that for the term of the lien described in this Agreement,that 100% of the occupants of the property during each fiscal year 2007-2027, or 20 years from the date of completion as determined by the City,whichever is later,shall reside in households which qualify as low- and moderate-income, as defined by the U.S. Department of Housing and Urban Development ("HUD") Section 8 income limits; current income limits as attached hereto and as may be revised from time to time by the U.S. Department of Housing and Urban Development. 7. City may inspect the work during construction. City shall have no liability to Subrecipient with respect to any such inspection or non-inspection. 8. Subrecipient shall not assist any property which is historically or environmentally sensitive without written consent from the City. City shall not be liable for reimbursement of costs for any property determined to violate any environmental law, 3 including but not limited to,those listed in 24 CFR Part 58. The Scope of Services outlined above shall be altered only through the prior written approval of the City. City has the right to terminate this agreement if at any time,after a thirty-day written notice,and at the sole determination of the City, sufficient implementation progress is not being made in City's opinion, and/or if Subrecipient is not fulfilling terms of this contract in a timely manner, including the submission of written monthly reports on the progress made toward completion of contract services. Said reports shall compare goals with accomplishments and provide an explanation if accomplishments do not meet implementation schedule. Said reports shall be due to City by the fifth working day of the month following the end of the reporting period;the first report being due by the fifth working day of the month after this agreement is signed. H. Villa de Lucas agrees to provide the City full and complete documentation of all eligible acquisition,materials,professional fees and labor expenses fourteen(14)calendar days prior to the requested reimbursement date. Requests for reimbursement must include certificates of bills paid for eligible expenses prior to submission to the City. The City may waive this requirement to facilitate program goals and objectives. Payments under this Agreement maybe suspended or terminated upon refusal to accept any additional conditions that may be imposed by HUD at any time. I. Villa de Lucas agrees to collect applications, determine eligibility and gather all initial data connected with these applications All residents of HOME assisted units in this project must have incomes at or below 60% of median income. Before the tenant occupies a unit, the owner must ensure that the tenant eligibility has been documented with source documents such as wage statements,interest statements,unemployment compensation statements,child support statements,and all other assets.Incomes must be recertified annually. Villa de Lucas agrees to ensure the long term affordability of the property as specified in 24 CFR § 92.252 (attached hereto), specifically, the HOME assisted units will be designated as floating units and must continue to follow the affordable rent formulas and occupancy restrictions outlined in Paragraph J below for a twenty (20) year affordability period regardless of transfer of ownership. These affordability requirements apply to newly constructed rental units and must be enforced by the use of deed restrictions. J. Villa de Lucas agrees that the two (2) designated HOME assisted units must have rents (including tenant paid utilities)which do not exceed the lower of 1)the HUD Fair market rents or 2)a rent which is 30%of the adjusted income of a family earning 65%of median. The 2006 Fair Market Rent(FMR)for a one-bedroom unit in Beaumont is$477 and the 65%adjusted rent limit is $597. The established High Home rent is $477 (113R), which is the maximum allowable rent for the two HOME assisted units. Said rents shall not exceed the allowable "High" HOME program rents, adjusted for unit size,as defined by HUD,for the City area, less tenant paid utilities. Said rents and tenant-paid utility allowances may be adjusted from time to time by HUD. No rent adjustments may be made by the Subrecipient during the 20(twenty)year affordability period without prior approval from the City. If the Subrecipient is found to have charged too much rent, Subrecipient will be required to reimburse tenant for the amount that exceeds the HOME program rents within 15 days of notice. K. Villa de Lucas agrees to furnish the City with information on the program participants necessary to meet HUD reporting requirements(i.e.,income verifications,ethnicity,age,sex,family status, disability status and head-of-household status).The Subrecipient agrees to make all files/units on 4 programs/properties funded by this agreement available for inspection by City and/or HUD staff and will advise tenants of this requirement. The Subrecipient will report any project and/or program delays or modifications and await City approval before proceeding. The Subrecipient will also report any instances of client fraud or program abuse to the City. L. Villa de Lucas agrees to refund all HOME funds found to have been used for ineligible and/or unapproved programs or activities. These repayments will be made within thirty(30)days of notification by the City of the ineligible expenditures. M. Villa de Lucas agrees to meet with the City to discuss progress or concerns as the need arises and at the City's request. Villa de Lucas also agrees to report on a bi-annual basis to the City on program/project status as outlined in 24 CFR 92.300 (attached hereto). This must be a written report of the status on recently completed,ongoing,and pre-approved programs and/or projects, and must include information for the reporting period to include the status on applicant approvaWdenials;projects/programs approved;fund disbursements;project bidding information; Property sales,contractor/subcontractor utilization(amounts,ethnicity,addresses,social security numbers and amounts billed and paid);use of proceeds;and other information as appropriate and required by the attached program guidelines. Villa de Lucas agrees that the Program will be -administered according to all applicable regulations and guidelines per the City of Beaumont's 2006 Action Plan (as it may be amended),program design criteria and construction standards. N. Villa de Lucas agrees to return net sales proceeds, subordinate to the Subrecipient's U. S. Department of Housing and Urban Development lien(hereinafter Senior Lien),gained from this program back to the City for the 20 year affordability period, and that rental income does not constitute sales proceeds and is not subject to this requirement. The Subrecipient understands and agrees that rental income generated with HOME funds must be placed back into the direct operation of these developmentally disabled apartments. The Subrecipient understands and agrees that should the Subrecipient become defunct or insolvent,any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City, subordinate to the Subrecipient's Senior Lien. The Subrecipient further understands and agrees to,and shall transfer to the City,subordinate to Senior Lien,any program income,real properties, equipment,supplies and any assets acquired as a result of grant funds if Villa de Lucas becomes defunct or insolvent. O. Villa de Lucas agrees to secure the financial match requirements for HOME funds expended. The financial funding match requirement of$25,000.00 is 25% of total expenditures (less CHDO Operating funds where applicable). The City has waived this requirement for fiscal years 2006 and 2007. Expenditures incurred beyond FY2007 are subject to match requirements. P. Villa de Lucas agrees that the City will provide the Subrecipient with One Hundred Thousand Dollars and No/100 ($100,000.00) of HOME funds to be available through the City's draw process on or after the effective date of this contract. Payment shall be made directly to the Subrecipient, upon receipt of invoices,payment vouchers and supporting documentation from Villa de Lucas certifying that all requirements have been met. Q. The Subrecipient also understands and agrees to adhere to the City's procurement process (attached hereto). The City reserves the right, and Subrecipient agrees to allow the City, to investigate,examine and monitor,at any time,any and all such records relating to the operations or expenditures of Villa de Lucas under this Agreement. R. The Subrecipient agrees to submit its 2005 audit report to the City by October 31,2006,and is 5 required to submit subsequent audit reports by May 31 following each year-end thereafter throughout the 20 year affordability period. The Subrecipient is responsible for any and all costs and/or fees associated with the procurement and contract for said audit. S. The Subrecipient agrees to adhere to all local,state and federal regulations applicable to housing units qualifying as Affordable Housing as per 24 CFR 92.254 and applicable HOMEfires notice, Vol. 1 No. 10,Dec 1998,and to established HOME Program Rent Limits as per 24 CFR 92.252 (Attached: 24 CFR 92.252 and 92.254; HOME Program Rents; Income Limits. Section 3 -Reporting and Monitoring A. ° During construction, Subrecipient shall provide a written monthly report on the progress made toward completion of contract services. Said report shall compare goals with accomplishments and provide an explanation if accomplishments do not meet implementation schedule. Said report shall be due to City by the fifth working day of the month following the end of the reporting period; the first report being due by the fifth working day of the month after this agreement is signed. B. If the Property is occupied and offering services prior to September 30,2007,Subrecipient shall provide a final report by the 30th working day after opening date,which summarizes information on all users of the Property from the date of Certificate of Completion of the construction through said report date. Said report shall include,but not be limited to,sex of occupant,race of occupant, sex of head of occupant's household, gross income of occupant's household and number of persons in the household. C. Subrecipient shall submit to City a copy of the report referenced in Section 3(B) for each occupant of a HOME-assisted unit during the term of the lien described in this Agreement. In addition, Subrecipient shall provide other documentation acceptable to the City, at the sole `discretion of the City that shall verify very-low income qualifications. Said submissions shall be made monthly for new clients served during the reporting month. If Subrecipient fails to document tenant eligibility during the term of the lien,City may impose a$25 penalty for each HOME-assisted unit in noncompliance. If Subrecipient corrects items of noncompliance within 15 days of notice,the City may waive the penalty. D. Subrecipient shall furnish City with all additional information,records,reports and data as may be required by HUD or City pertaining to matters of this Agreement. E. City and/or the U.S.Department of Housing and Urban Development(HUD)shall have the right to monitor and evaluate all aspects of activities carried out by Subrecipient. Such evaluation will be effected by the submission of reports and information by Subrecipient and by site visits of Subrecipient by the City. F. Subrecipient shall submit to City a copy of the tenant/owner lease agreement prior to unit occupancy. The lease will be reviewed for compliance with, tenant selection and HOME provisions stated in 24 CFR 92.253. G. Subrecipient shall submit to City a copy of the HOME Rental Project Compliance Report form attached hereto on a monthly basis during the term of initial occupancy and thereafter on an annual basis through the term of affordability. H. Subrecipient shall provide annually to City,for the term of the lien described in this Agreement, evidence of property insurance, flood insurance and annual audit. I. Paragraphs C,D,E,F,G,H and I of this Section shall continue in effect until the termination of 6 the lien described in Section 4(B)of this Agreement. Section 4-Restrictions on Use A. On site inspections will be conducted every 3 (three) years, or sooner if necessary, to verify compliance with tenant income,rents and the minimum property standards as stated in 24CFR 92.251. If Subrecipient is found to be in noncompliance, a reinspection will be required. B. A separate lien in the form of a Deed Restriction/2nd Lien mortgage on the real property legally described as PL D19 TR 77-A,A WILLIAMS, as recorded in the Public Records of Jefferson County,Texas,will be executed in the amount of$l 00,000.00'for a period of twenty(20)years which shall inure to the benefit of the City and shall be recorded in the Public Records of Jefferson County,Texas. The City's lien will remain subordinate to the Senior Lien through the period of affordability. C. The mortgage identified in Section 4(B) shall provide that a default shall occur if. a) A Certificate of Completion has not been issued by the City on or before September 30,2007,due to lack of compliance by Subrecipient with the City Codes; b) Subrecipient has not begun to offer affordable rental housing to very-low income families and individuals on or before September 30, 2007; and/or c) Subrecipient abandons, and/or ceases to use the real property described in Section 2(E)as affordable rental housing to tenants in accordance with Section 2(I) above without the prior written approval of the City. A default under this Agreement or the Restrictive Covenants shall not constitute a default under the Senior Lien. - D. If Subrecipient complies with the terms and conditions of this Agreement, then the lien established by the mortgage shall terminate as set forth in the mortgage. Section 5 -General Terms A. This Agreement shall be fully executed in writing by both parties,and is effective June 28,2006. Funds must.be expended prior to June 28, 2007. With agreement by both parties, the Agreement may be extended for a time specified in a jointly signed and approved term extension memorandum,not to exceed 24 months from the original effective date. B. This Agreement and the rights and obligations contained herein may not be assigned by either party. C. This Agreement has been made under,and shall be governed by,the laws of the State of Texas. The parties agree that performance and all matters related thereto shall be in Beaumont,Texas. D. This Agreement may only be amended by written instrument, approved and executed by both parties. E. The City may terminate this agreement at any time after a thirty-day written notice if the Subrecipient is found to have violated any federal, state or local requirements, for nonperformance of the terms of this agreement, for nonperformance or violation of any other agreement for City services, or upon the unavailability of HOME funds. Additionally, In the event that one or more contract provisions are not met,City shall have the right to terminate this Agreement with a thirty day notice to the Subrecipient to cure. If correction is not made within the thirty day notice period,the Agreement shall be terminated. All funds disbursed under the Agreement shall be paid back to City from the Subrecipient within thirty days of termination. F. It is expressly understood and agreed by and between the City and the Subrecipient that this Agreement is wholly conditioned upon the actual availability of federal HOME funds allocated 7 to the City by the U. S.Department of Housing and Urban Development(HOME Program Nos. M-01-MC-48-0201,M-02-MC-48-0201 and M-03-MC-48-0201)and that all monies distributed to, or in behalf of Villa de Lucas hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. G. This Agreement does not provide for any administrative and/or operating costs incurred by the Subrecipient, or for any developers fees related or unrelated to carrying out this Agreement, except as specified herein. H. If any provision(s)of this Agreement shall be held to be invalid, illegal, or unenforceable by a court, by HUD, or other competent tribunal, the validity, legality, and enforceability of the remaining provisions shall not be impaired thereby. In such event,the parties hereby agree to use their best efforts to replace the respective provision or provisions with terms and conditions approximating the original intent of the parties and conforming in all respects with applicable law and HUD regulations and directives. I. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. J. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. K. Villa de Lucas covenants and agrees to hold harmless the City and its officers,agents,servants and employees, from and against any and all claims or suits for property loss or damage and personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations,activities and services of the program described herein,whether or not caused,in whole or in part,by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. L. No officer,employee or member of Villa de Lucas or Villa de Lucas'subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested,directly or indirectly,in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Villa de Lucas. Any willful violation of this paragraph with the knowledge, expressed or implied, of Villa de Lucas or its subcontractors, shall render this contract voidable by the City of Beaumont. M. No grants shall be made by Villa de Lucas to its directors or officers,either directly or indirectly, through family members,business partners or employees. Villa de Lucas agrees that no HOME funds shall be used,either directly or indirectly,for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of Villa de Lucas shall render this contract voidable by the City. N. Villa de Lucas covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with federal, state and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Villa de Lucas further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program, under which these funds are granted. 8 O. In carrying out this Agreement, Subrecipient or any subcontractor shall not exclude from participation in,deny benefits to,or otherwise discriminate against,any person because of race, color, religion, sex, age, national origin or handicap; and shall comply with all requirements pertaining to fair housing, equal employment and contracting opportunity and religious discrimination contained herein. P. Fair Housing. In carrying out this Agreement, Subrecipient or any subcontractor shall not discriminate in the sale, rental, use or occupancy of housing; in the sale or rental of land to be developed for housing; in the financing of housing or the provision of brokerage services; including otherwise making unavailable or denying services to a person because of race,color, religion, sex,national origin,handicap or familial status. Q. Religious Discrimination. In consideration of receipt of funds under this Agreement: A. Subrecipient shall not discriminate against any employee or applicant for employment,nor limit employment or give preference in employment to persons on the basis of religion; B. Subrecipient shall not discriminate against any person seeking assistance from Subrecipient, nor limit services or give preference to persons on the basis of religion; C. Subrecipient shall provide no religious instruction or counseling, conduct no religious workshops or services, engage in no religious proselytizing,and exert no other religious influence on any client or employee of Subrecipient; D. No property from which services are provided under this Agreement shall contain religious symbols or decorations and/or shall be used for religious instruction, counseling, workshops and/or services for the term of this Agreement; and E. Subrecipient shall include the above four paragraphs in any subcontracts pursuant to this Agreement. R. Section 3. Pursuant to Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, Subrecipient and any subcontractor shall, to the greatest extent feasible, give opportunities for training and employment arising in connection with this Agreement to low-income persons residing within the Beaumont metropolitan area,and award contracts for work to be performed in connection with this Agreement to eligible business concerns which are located in or owned in substantial part by persons residing in said metropolitan area. For any contract exceeding $200,000 and any subcontract exceeding $100,000, Subrecipient shall also comply with HUD's regulations in 24 CFR Part 135, which implement Section 3, and shall include the following clauses in all subcontracts resulting from the commitment of funds under this Agreement: 1. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968,as amended, 12 U.S.C. 1701u.The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3,shall,to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing; 2. The parties to this contract shall comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract,the parties 9 to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations; 3. Subrecipient shall send to each labor organization or representative of workers with which the Subrecipient has a collective bargaining agreement or other understanding,if any,a notice advising the labor organization or workers'representative of Subrecipient's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference,shall set forth minimum number and job titles subject to hire,availability of apprenticeship and training positions,the qualifications for each,the name and location of the person(s)taking applications for each of the positions,and the anticipated date the work shall begin; 4. Subrecipient shall include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135 and shall take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause,upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. Subrecipient will not subcontract with any subcontractor where the Subrecipient has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135; 5. Subrecipient shall certify that any vacant employment positions, including training positions that are filled: After the Contractor is selected but before the contract is executed; and with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent Subrecipient's obligations under 24 CFR Part 135; and Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. S. Lobbying Prohibited. Subrecipient certifies that,to the best of its knowledge or belief: 1. No federal appropriated funds have been paid or will be paid, by or on behalf of Subrecipient, to any person for influencing or attempting to influence an officer or employee of any agency,a member of Congress,an officer or employee of Congress,or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement,and the extension,continuation,renewal,amendment, or modification of any federal contract, grant, loan, or cooperative agreement. 2. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a member of Congress, an officer or employee of Congress,or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Subrecipient shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions, with a copy of said submittal provided to City within ten(10)days of submission. 10 3. Subrecipient shall' require that the required certification language regarding the prohibition of lobbying be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, Title 31,U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and not more than$100,000 for each such failure. T. Labor Standards. Subrecipient shall abide by and enforce all provisions of the Contract Work Hours and Safety Standards Act(40 U.S.C.327 et seq.),and all other applicable federal laws and regulations,including Davis-Bacon Wage requirements,pertaining to Labor Standards as each applies to construction services provided under this Agreement. U. Debarred Suspended or Ineligible Contractors. Subrecipient attests that it has not been debarred,suspended,proposed for debarment,or ineligible from participating in federally funded projects; and shall not employ,award contracts to, or otherwise engage the services of or fund any Contractor or subcontractor during any period of debarment, suspension or placement in ineligibility status under the provisions of 24 CFR Part 24. V. Audits. The Subrecipient shall at any time during normal business hours and as often as the City and/or Comptroller General of the United States and/or the U.S. Department of Housing and Urban Development and/or any of their duly authorized representatives may deem necessary make available for examination all of Subrecipient's records,books,documents,papers,and data with respect to all matters covered by this agreement and shall permit the City and/or its designated authorized representative to audit and examine all books,documents,papers,records and data related to this agreement. If Subrecipient receives and/or expends more than$300,000 in federal awards,including funds received under this Agreement,in a fiscal year,Subrecipient shall at Subrecipient's expense have an organization-wide audit of Subrecipient's records performed by an independent Certified Public Accounting firm in accordance with OMB Circular A-133. If Subrecipient is not subject to the requirements of OMB Circular A-133 and is awarded and/or expends $10,000 or more in funds under this Agreement, Subrecipient shall at Subrecipient's expense have an agency-wide financial audit performed by an independent Certified Public Accounting firm. Said audit shall test the fiscal integrity of financial transactions, the effectiveness of financial management systems and the effectiveness of internal control systems. Said audit shall cover the entire period of this Agreement between disbursement of the first payment from the City to the Subrecipient through disbursement of the last payment from Subrecipient to a vendor or last payment from City to Subrecipient, whichever is later, for payment of services under this Agreement. Unless modified in Part I of this Agreement, said audit shall be due to the City within 120 days of the end of Subrecipient's fiscal year in which final payment under this Agreement is paid by Subrecipient. If a lien is placed on real property as part of this Agreement,Subrecipient shall provide City with an annual audit,within 120 days of the end of Subrecipient's fiscal year,until such time as said lien expires,is forgiven or is paid in full. If Subrecipient is not subject to the requirements of OMB Circular A-133 and is awarded and/or expends less than $10,000 in funds under this Agreement, Subrecipient shall at Subrecipient's 11 expense have an agency-wide financial compilation performed by an independent Certified Public Accounting firm. Said compilation shall cover the entire period of this Agreement between disbursement of the first payment from the City to the Subrecipient through disbursement of the last payment from Subrecipient to a vendor or last payment from City to Subrecipient,whichever is later,for payment of services under this Agreement. Unless modified in Part I of this Agreement,said compilation shall be due to the City within 120 days of the end of Subrecipient's fiscal year in which final payment under this Agreement is paid by Subrecipient. If a lien is placed on real property as part of this Agreement, Subrecipient shall provide City with an annual compilation,within 120 days of the end of Subrecipient's fiscal year, until such time as said lien expires, is forgiven or is paid in full. W. Reports and Information. 'At such times and in such form as City may require,Subrecipient shall furnish to City statements,records,reports,data and information as City may request pertaining to matters covered by this Agreement. X. Record Retention. All records pertaining to this Agreement, including but not limited to financial,statistical,property and programmatic records,shall be retained for five(5)years from ending date of City's fiscal year(October 1 through September 30)in which this Agreement is paid in full,expired,or terminated. All records,however,that are subject to audit findings shall be retained for five (5) years in the manner prescribed above or until such audit findings have been resolved, whichever is later. Nothing herein shall be construed to allow destruction of records that may be required to be retained longer by the Statutes of the State of Texas. Tenant income,rent and inspection information must be kept for the most recent five(5)years,until five (5)years after the affordability period. For rental housing projects,records may be retained for five years after the project completion date; except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five(5)year period,until five(5)years after the affordability period terminates. Each party has the full power and authority to enter into and perform this Agreement, and the person signing on behalf of each party has been properly authorized and empowered to execute this Agreement. The parties hereby acknowledge that they have read,understand, and intend to be bound by the terms and conditions contained herein. In the event of a conflict between this Agreement or the Restrictive Covenants and the Senior Lien,the Senior Lien documents shall control. 12 VILLA DE LUCAS,INC. By: Exec tive or ' ��eS Date STATE OF TEXAS § § ACKNOWLEDGMENT CITY OF BEAUMONT § This instrument was acknowledged before me on theg-7�day of Sf444nkr,2006,by A as 4 r of &PALArnopit axGf , anon- pro t organization, on behalf of said organs ation. N� ANGELA MARIE THOMAS MY COMMISSION EXPIRES Ikotary Public in and for the State of Texas Apd7,2W6 CITY OF BEAUMONT By: ]%% L z� Kyle Hayes, City Manager Date ATTEST: By: Rose Ann Jones, CL4 Clerk Date � �, 13 DEFINITIONS Fair market rent (FMR). The rent, including the cost of utilities (except telephone),that would be required to be paid in the housing market area to obtain privately owned,existing, decent, safe and sanitary rental housing of modest(non-luxury)nature with suitable amenities. Fair market rents for existing housing are established by HUD for housing units of varying sizes (number of bedrooms), and are published in the Federal Register in accordance with 24 CFR part 888. Initial lease term. The initial term of the assisted lease. The initial lease term must be for at least one year. Initial contract rent. In the certificate program,the contract rent at the beginning of the initial lease term. - Lease. (1)A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit. Lease purchase. HOME funds may be used to assist homebuyers through lease-purchase programs for existing housing and for housing to be constructed. The housing must be purchased by a homebuyer within 36 months of signing the lease-purchase agreement. The homebuyer must qualify as a low-income family at the time the lease-purchase agreement is signed. If HOME funds are used to acquire housing that will be resold to a homebuyer through a lease-purchase program,the HOME affordability requirements for rental housing in§ 92.252 shall apply if the housing is not transferred to a homebuyer within forty-two months after project completion. Fixed and floating units:For properties with both assisted and non-assisted units,the program administrator must select"fixed" or"floating"units at the time of project commitment. Fixed: When HOME-assisted units are"fixed,"the specific units that are HOME-assisted(and,therefore, subject to HOME rent and occupancy requirements)are designated and never change. Floatina: When HOME-assisted units are"floating,"the units that are designated as HOME-assisted may change over time as long as the total number of HOME-assisted units in the project remains constant. The floating designation gives the owner some flexibility in assigning units,and can help avoid stigmatizing the HOME-assisted units. If the floating designation is used,the owner must ensure that the HOME- assisted units remain comparable to the non-assisted units over the affordability period in terms of size, features and number of bedrooms.