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HomeMy WebLinkAboutRES 23-387RESOLUTION NO. 23-387 BE IT RESOLVED BY THE CITY COUNCIL OF T14E CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a Grant Agreement for the administration of Tenant Based Rental Assistance with Legacy Community Development Corporation, LLC in the amount of $200,000.0�0. The meeting at which this resolution was approved was in all things conducted ill strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED December, 2023. BY T14E CITY COUNCIL of the City of Beaumont this the 19th. day 0"7 /Mayor Roy est - Vll ' P 1Z 444SC 7. i •y,■ .� •+ i COUNTY OF JEFFERSON CITY OF BEAUMONT SECTION 1. PARTIES 'TO THE CONTRACT' This contract and agreement are made and entered into by and between the City of Beaumont, Texas (hereinafter call the "City") acting herein by it's City Manager, duly authorized by Resolution of the City Council of the City of Beaumont and Tender Loving Care Center for Children dba Legacy Community Development Corporation, Jefferson County, Texas (hereinafter called "Subrecipient") acting herein by its President/CEO, duly authorized by its Board of Directors. The parties hereto agree, by the execution hereof, that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WHEREAS, the American Rescue Plan went into effect on March 11, 2021, and included funding for the HOME Investment Partnership Grant; and, WHEREAS, the City of Beaumont made an application for HOME Investment Partnership Grant American Rescue Plan (HOME -ARP) Entitlement funds from the U.S. Department of Housing and Urban Development, herein referred to as "HUD", under Title I of the Housing and Commiunity Development Act of 1974, as amended, Public Law 93-383; and, WHEREAS, the City of Beaumont has been awarded ONE MILLION EIGHT HUNDRED SIXTY-FIVE THOUSAND THREE HUNDRED NINTY FOUR AND 00/100 Dollars ($1,865,394) in HOME -ARP entitlement funds; and, WHEREAS, the City of Beaumont is undertaking certain activities to develop a viable community by providing decent housing, a suitable liviing environment, and expanding economic opportunities principally for HOME -ARP Qualifying Populations, as described in the WHEREAS, The Subrecipient has requested funds from thie City for the benefit of HOME -ARP Qualifying Populations; and, WHEREAS, the City and Subrecipient desire to enter into an Agreement in accordance with 24 Code of Federal Regulations (CFR) Part 92 and the HOME -ARP Notice, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to provide the Subrecipient a sub -award from HOME -ARP funds to carry out Project activities in compliance with the HOMiE-ARP program application; and, WHEREAS, the Subrecipienit's use and benefit of HOME -ARP funds is contingent upon execution of funding approval Agreement by the City and HUD, and, WHEREAS, the funding and other City administration of this agreement shall be through the City of Beaumont Community Development Department; and, WHEREAS, Exhibits A, B, and C are essential to this Agreement, attached hereto, and incorporated herein by reference. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, the parties hereto agree as follows: The WHEREAS clauses set forth above are incorporated herein by reference and made a part of the Agreement 031041111211 1. The City means the City of Beaumont. 2. The "Subrecipient" means Tender Loving Care Center for Children dba Legacy Community Development Corporation. 1 "HUD" means Department of Housing and Urban Development. 4. "HOME -ARP" means HOME Investment Partnership Program American Rescue Plan. S. "HOME Administrator" means Grants Manager. 6. "HOME -ARP Notice" means HUD's notice CPD-21-10. 7. "HOME Regulations" refers to Federal regulations CFDA 14.239. 8. "AMI" means the Area Median Income for the City of Beaumont, 9. "FIVIR" means the Fair Market Rent for the City of Beaumont. 10. "City approval" means the written approval of the City of Beaumont 11. "Allocated Sum" refers to the total amount of the budget allocated for this Project as shown in Exhibit "A". 12, Business Day(s) shall mean Monday to Friday and do not include public holidays and weekends. M 11,14 1 rel I A I I I 4 ril 9 :11 M 1 :111119101 W1141 101 N 1. Project: Subrecipient shall utilize HIOME-ARE Funds to perform the scope of services set forth in Exhibit A of the Agreement ("Project") for thie City in full and complete accordance with this agreement. 2. Schedule: The Subrecipient shall perform the Project in accordance with the schedule and deadlines set forth in Exhibit A. I-:111-11101 In consideration of the provision of services by the Subrecipient, the City is allocating an amiount of $200,000 ("Allocated Sum") towards the Project described in Article III above. Additional requirements, of the Project shall be as described in Exhibit A, attached hereto and incorporated by reference, The Allocated Sum is to be requested within a period of twenty-four (24) months from the Effective Date, of this Agreement. The City and the SUBRECIPIENT may agree to revise the budget in accordance with HOME -ARP regulations and existing City policies, Expenditures reimbursed with HOME - ARP funds shall be limited to eligible activities as determined by the City for the Project as described in Article Ill. 1. The term of this Agreement ("TERM") shall commence on the last date signed by thie Parties below ("Effective Date") and shalli remain in full force and effect for two (2) years unless earlier terminated as provided herein in Article XIL 2. Upon written request on letterhead from the Subrecipient, the Term may be extended up to two (2) months past the expiration date upon approval from the City Council. The letter must be dated and signed before the expiration of the Agreement by a person with signature authorization, Funding Delivery: The HOME -ARP funding shall be delivered to the Subrecipient or the Subrecipient's vendor in accordance with the terms of th,e Agreement. Eligible expenditures made during the Term of the Agreement shall be, reimbursed pursuant to the terms of the Agreement. Notwithstanding the foregoing, funding may be suspended in the event Quarterly Performance Reports (Exhibit C, attached hereto) are not submitted timely to the City. Reimbursement by the City of the Allocated Sum to the SUBREOPIENT shall be submitted quarterly using the forms attached as, Exhibit C, Request for HOME -ARP Reimbursement, and Quarterly Performance Report, Payment requests must comply with the applicable requirements of 2 CFR 200 and must meet the following criteria: 1, The, SUBREOPIENT shall submit to the City, through the Community Development Block Grant/Housing Division, any and all documents requested by the City verifying the request for payment, herein "Verifying Documents," Verifying Documents may include, but are not limited to: 4 a. When HOME -ARP reimbursement is sought for salaries or related benefits for employees, individual timesheets must be kept. Benefits may only be claimed for the portion of the salary being requested. Timesheets must identify funding sources for the emp'loyee. HOME -ARP and other activities undertaken by the employee must be documented on the timesheet with the date, times and the number of hours worked. Timesheets must he signed by the employee and an individual with signatory authority pursuant to the governing documents of the Subrecipient (Le., corporate bylaws or resolution), and all applicable cancelled checks (front and back) or a bank statement, if the cancelled checks are not legible, are required. Include the employee's name and the eligible gross wages and benefits being requested for reimbursement for each employee. If health or other benefits are being reimbursed, proof of those items must be included in thie invoice. b. When reimbursement is sought for services or materials, a copy of the applicable invoice or receipt for materials or services for each eligible expense is required. Invoices must include a description of the materials or services purchased. A cost is eligible for the HOME -ARP Program only if the cost is necessary to the overall completion of the Project. If there is a disagreement between the Parties regarding whether an item was necessary to the overall completion, the final decision shall be made by the City. Documentation of eligible costs shall include a copy of the front and back of the cancelled check, bank statement, or credit card statement used in payment, reconciled to the applicable expense. c. When direct payment to the vendor is sought for services or materials, a copy of the applicable invoice or sales contract for each eligible expense is required. 2. The City shall, in its sole discretion, determine if the Verifying Documents, or any portion of them are acceptable and in strict compliance with the purpose and laws stated herein and approve them for payment.If the City determines there are any errors in the Verifying Documents, the City shall notify the Subrecipient. The Subrecipient shiall submit corrected Verifying Documents within ten (10) working days of receipt of the notice. Payment shall not be made for any Verifying Documents that contain errors, as determined by the City. 3. Upon determination by the City that Verifying Documents are approved, the City will initiate the payment process. The City reserves the right to delay any payment request for Verifying Documents containing errors until such errors are corrected to the satisfaction of the City. 4. if ainy costs are disallowed up to five (5) years after the expiration of this Agreement or until: HUD closes out the Project, whichever occurs later, and the City is forced to reimburse the HOME -ARP Program or HUD, then the Subrecipient shall reimburse the City for the said costs. 5. Within ten (10) days after Project completion the SUBRECIPIENT shall submit the final request for payment for all eligible expenditures not previously invoiced. The City shall not be responsible for payments of any charges, claims, or demands of the Subrecipient not received within the, said ten, (10) day period; however, such time may be extended at the City's discretion not to exceed a period of thirty (30) days, provided the delay in its submission its, not caused by any fault or negligence of the Subrecipient. ENTUMM • Unless and to the extent otherwise provided in this Agreement, all notices, demands, requests for approvals, and other communications which are required to be given by either party to the other shall be in writing and shall be deemed given and delivered on the date delivered in person to the authorized representative of the recipient provided below, upon the expiration of five (5) days following the date mailed by Registered or Certified Mail, Postage Prepaid, Return Receipt Requested to the authorized representative of the recipient at the address provided below, or upon the date delivered by overnight courier (signature required) to the authorized representative of the recipient at the address provided! below. Jes Prince 801 Miain Street Beaumont, Texas 77701 The Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under the Agreement. FA-Iffillrdltlml Thie Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under this agreement. me W111[a RAIMMUIT, 11-11.11MA 10111015,11 ill! 1• A. The Subrecipient must establish and maintain sufficient records, as determined by the City, to account for the expenditure and use of HOME -ARP funds. R. Subrecipient shall give the City, the Comptroller General of the United States, or any of their duly authorized representatives access to and the right to examine all books, accounts, records, reports files, and other papers, things or property belonging to or in: use by Subrecipient pertaining to this contract. Such rights to access shall continue as long as the records are retained by Subrecipient. The Subrecipient agrees to maintain such records in an accessible location. C. All records pertinent to this contract shall' be retained by Subrecipient for five (5) years following the date of termination of this contract or submission of the final close -out report, whichever is later, with the following exceptions: L If any litigation, claim, or audit is started before the expiration of the five (5), hear period and extends beyond the five (5) year period, the records will be maintained until alll litigation, claims, or audit fiindings involving the records have been resolved. 2. Records relating to real property acquisition or long-term lease shall be retained for a period equal to the useful life of any repairs made with HOME -ARP funds. WHOM Nothing contained in the Agreement is intended to or shall be construied in any manner as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an independent contractor with the respect to the services to be performed under this Agreement. The City shall be exempt from payment of all unemployment compensation, FICA, retirement, life and/or medical insurance, and corkers' compensation insurance, MMMMMI] F-A Except as otherwise provided for herein, this Agreement may not be modified, amended or extended orally. This Agreement may be amended only by a written instrument execute by the governing bodies of both parties. The City and the SUBRECIPIENT may amend this 7 Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing and approved by the governing bodies of each party. The City may, at its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies, or available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or the schedule of activities to be undertaken as part of the Agreement, such modifications will be incorporated only by written amendments signed by authorized representatives from both the City and the Subrecipient. 611M 011 LIF-11 us] 0 WA-01 1-12 1 4111kh I ILI MHO _01 L Termination: a. Either party may terminate this Agreement without cause at any time by giving at least a thirty (30) day written notice to the other party of such termination. The City may terminiate this Agreement with a cause immediately upon written notice to the Subrecipient. Cause shall include, but is not limited' to, SUBRECIBPI�ENT's failure to strictly comply with 24 CFR 92.505, all appllicable Federal, State, and local laws, rules, and regulations, default an any of the terms and conditions of this Agreement, or any substandard performance by the SUBRECIPIENT as defined herein,. Substandard performance shall be any performance indicated by Verifying Documents but not reflected in the actual performance of the Project. In the event of substandard performance, the CITY shall notify the SUBRECIPIENT in writing of such substandard performance. The SUBRECIPIENT shall take corrective action within a reasonable time, but in no event later than forty-five (45) days from receipt of the notice from the City b In the event of any termination, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports, or other materials prepared by the Subrecipient under this Agreement shall, at the option of the City, become the property of the City, and the Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. C. In the event of termination, the City shall not make payment for any additional costs incurred after the effective date of termination. All work completed prior to the effective date of the termination may be reimbursed pursuant to the terms of the agreement, provided that all required documents are, submitted to the City withing thirty (30) days of the date of termination. W Maintenance of Records a. The Subrecipient shall maintain all records required by Federal regulations specified in 2 CFR Part 200 that are pertinent to the project herein funded by the Allocated Sum. Such records shall include, but are not limited to: (1) Application requestion Project funding (2) Executed Subrecipient Agreement approving the Project, including any amendments to the Agreement., (3) Records providing a full description of each activity undertaken. (4) Records demonstrating eligibility of work performed to Ibe paid by the Allocated Sum. (5) Records documenting the acquisition, improvement, use, or disposition of real property acquired or improved with the Allocated Sum, if applicable. (6) Records documenting compliance with the Fair Housing and Equal Opportunity components of the HOME Program, if applicable, (7) Financial records as required by 24 CFR 92.505, 2 CFR Part 200, and all Financial Management standards as specified in this agreement. (8) Copy of Request for HOME -ARP Reimbursement and Quarterly Performance Reports submitted as required herein. b. The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, the client's name address, race or ethnic group, age, income level, head of household status (gender and marital status), Social Security number, number of bedrooms, tenant contribution, monthly gross rent, percentage of the, median, size of household, type of contract, status, contract and date, any other basis for determining eligibility, amounts of rent and security deposit suibsidies provided and calculations of the eligible amounts, actions undertaken to comply with equal opportunity and fair housing requirement, and any other applicable data the City may direct from time to time. Such information shall be made available to the, City for review upon request, C. Subrecipient will create, maintain, and allow inspection of records demonstrating the income of all clients served, using the annual income definition adopted by the City, in accordance with 24 CFR 5.609(b)(9) (Section 8 definition of household income) d Subrecipient will create, maintain, and allow inspection of records demonstrating all clients served are eligible for HOME -ARP assistance based on the requirements of thie ARP and Section IV of the HOME -ARP Notice. All clients served must meet the criteria of the Qualifying Populations in the Section IV.A(1), (2), (3), and (4): (1) Homeless as defined in 24 CFR 91.5; (2) At -risk of homelessness, as defined in 24 CFR 91.5; (3) Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking as defined by HUD in 24 CFR 5.2003; (4) Other populations in which providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family's, homelessness or would serve those with the greatest risk of instability as defined in Section IV.A (4) (1) and (2) of the HOME -ARP Notice. e. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with the conflict -of -interest requirement of 24 CFR 92.356. f. Subrecipient shall create, maintain, and allow inspection of records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424. 91 Subrecipient will create, maintain, and allow inspection of records demonstrating compliance, with affirmative marketing and minority outreach requirements of 24 CFR 92.351. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance, with the applicable uniform administrative requirements required by Section VILD of the HOME -ARP Notice, Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with records of emergency transfers requested under 24 CFR 2005 and 25 CFR 92.350 pertaining to victims of domestic violence, dating violence, sexual assault, or staling, including d'ata on the outcomes of those requests, 10 j. Subrecipient will create, maintain, and allow inspection of records demonstrating that each household qualifying as homeless, records thiat meet the requirements in 24 CFR 576.5010 (b)(1), (2), (3), or (4), as applicable. 1. Subrecipient will create maintain, and allow inspection of records demonstrating that each household qualifying as, "at risk of homelessness" records that meet the requirements i1n 24 CFR 576.500 (c)(1) or (2), as applicable, and include the following documentation of annual income. (1) Income evaluation from containing the minimum requirements specified by HUD and completed by the Subrecipient; and (2) Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement); (3) To the extent that the source documents are unobtainable, a written statement by the relevant third party (e.g., em,ployer, government benefits administrator) or the written certification by the Subrecipient's intake staff of the oral verification by the relevant third party of the income the household received over the most recent period for which representative data is available; or (4) To the extent that the source documents and third -party verification are uniobtaiinable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation. 2. Retention of Records: The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all Federal audit findings, whichever occurs later Records for nonexpenclable property acquired with funds under this Agreement shall be retained for five (5) years after the final disposition of such property. Records for any displaced person must be kept for five (5) years after he/she received the final payment. 3. Access to Records: The City and the Comptroller General of the United States or any of their authorized representatives shall have the right of access to any pertinent books, documents, papers, or other records of grantees and subgrantees which are pertinent to the grant in order to make audits, examinations, excerpts, and transcripts. The right of access shall last as long as any record is required to be maintained, The Subrecipient, its employees, or agents shall provide access during the Term to all related records and documents for accounts placed with the Subrecipient by the City at reasonable times to the City, its employees, or agents. "Reasonable" shall be construed according to the circumstances but ordinarily shall mean during normal business hours of 8:00 a.m. to 5:00, p.m. Central Standard Time. Monday through Friday. "Agents" shall include, but be not limited to auditors retained by the City. 11 r2T0aJlrdWdM. RECORD -KEEPING DISPLACEMENT, RELOCATION, AND REAL PROPERTY ACQUISITION Subreciplent shalll create, maintain, and allow inspection of records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VILF. of the HOME -ARP Notice regarding displacement, relocation, and real, property acquisition, including but not limited to: 1. Project occupancy lists identifying the name and address of all persons occupying the real property on the date described' in 24 CFR 92,353(0(2)(i)(A) and occupying the property upon completion of the project. 2. Lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to, become HOME -ARP NCS or HOME -ARP rental housing that qualify for assistance under the HOME -ARP Notices as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME -ARP program by the participating jurisdiction following the closure of the nonresidential properties because of the HOME -ARP activities. I Lists of all individuals or families occupying HOME -ARP NCS that were converted during the required use period that qualify for assistance under the HOME -ARP Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME -ARP administrative costs or under the HOME -ARP supportive services activity in Section VLD of the HOME -ARP Notice, and records indicating whether such persons were assisted by the HOME - ARP program by the participating jurisdiction following the conversion of the HOME -ARP NCS units. WW SUBRECIPIIENT shall disburse the Grant monies through a HOME -ARP TBRA program that SUBRECIPUENT shall design and administer in accordance with this Article and to the extent not provided otherwise in this Agreement, in compliance with all requirements under Section VLC of the HOME -ARP Notice, all other applicable provisions of the federal regulations, and any other (laws. 12 SUBRECIPIENT shall promulgate a written HOME -ARP TBRA program, including tenant -selection criteriia and rental assistance contracts, and related administrative forms. As appropriate, the written program may adopt pertinent provisions of this Article by reference to a Section or sub -section without repeating them verbatim. The rental assistance contracts and other forms used to implement the HOME -ARP TBRA program shall meet the requirements for a "Section,8 Rental Certificate Program" under 24 CFR Part 888 and 24 CFR Part 982, The TBRA program shall include the following requirements and provisions. 1. SUBRECIPIENTS shall use a waiting list to identify and prioritize eligible households for HOME -ARP TBRA. 2. SUBRECIPIENT shall serve clients that meet the definition of "Qualifying Population" as defined in Section IV.A(I), (2), (3), and (4). 3. At all times while receiving HOME -ARP TBRA, the selected tenants must reside in, and the assisted lease premises must be located within Beaumont, Texas. 4. SUBRECIPIENT shall create and maintain records of compliance with the housing quality standards, lease terms (including copies of all executed leases), minimum tenant contributions, actions taken to affirmatively further fair housing, and all other requirements of the HOME -ARP TBRA program. S. The Grant monies may not be used to further subsidize the rent of units already receiving another form of rent subsidy (i.e., public housing or Section 8). 6. The HOME -ARP TBRA program may include assistance with security deposits as provided in 24 CFR 92.209()) and may not exceed the equivalent of two (2) months rent for the rental unit. Any refunds of security deposits upon the termination of a lease, or at any other time, may be paid to the tenant and need not be refunded to 7. SUBRECIPIENIT shall enter into a written rental assistance contract complying with 24 CFR 92.209 and 24 CFR 92.253 with each eligible tenant before disbursing rental or security deposit assistance funds. The term of each rental assistance contract must begin on the first day of the term of the tenant's lease and must terminate on termination of the lease. 8. Each lease must not be for less than one (1) year unless by mutual agreement of the tenant and the owner. NO lease may contain any of the following terms, and each lease must affirmatively negate all of these terms either in the body of the 13 lease or by means of an attach addendum that controls notwithstanding any contrary provision of the lease: a. Agreement by the tenant to be sued, to admit guilt, or to a judgement in favor of the owner in a lawsuit brought in connection with the lease., b. Agreement by the tenant that the owner may take, hold:, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning the disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with the state law, c. Agreement by the tenant not to hold the owner or the owner's agents legally responisiblle for any action or failure to act, whether intentional or negligent. d. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant. e. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. f. Agreement by the tenant to waive any right to a jury trial. g. Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court a court decision in connection with the lease, and h. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wiins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant losses. L Mandatory supportive services Agreement by the tenant (other than a tenant in transitional housing) to accept supportive services that are offered. 9. Each ('ease must provide that the owner may not terminate the tenancy or refuse to renew the lease of the tenant except for serious or repeated violation of the terms and conditions of the lease; for violation of the applicable federal, state, or local law, for completion of the tenancy period, if the tenancy is "transitional housing" or for other good cause Each lease must provide that to terminate or refuse to renew the tenancy, the owner must serve written notice upon the tenant specifying the grouinds for the action of at least 30 days before the termination or the tenancy. 14 10. SUB RECIP I ENT shall require each owner that is a party to a lease to adopt written tenant selection criteria that: a. Are consistent with the purpose of providing housing for very low-income and ow -income households; b. Are reasonably related to the HOME -ARP TBRA program eligibility and the appliicant's ability to perform the obligations of the lease; c. Give reasonable consideration to the housing needs of households that would have a federal preference under 24 CFR 92.209(c)(2); d. Provide for the selection of tenants from a written waiting list in the c chronological order of their application, insofar as is practicable; and e. Give prompt written notification to any rejected applicant of the grounds for any rejection. 11. Neither the city or SUBRECIPIENT shall be a party to any lease for which assistance is given, under the HOME -ARP TBRA program. The compliance of any lease with the provisions of this Agreement shall not connote approval or endorsement of the lease by the City or by the Subrecipient but means only that the lease does not bar the tenant from qualifying for HOME -ARP TBRA. The HOME -ARP TBRA program shall provide that the tenant's TBRA will be discontinued if the tenant is evicted by judicial process for cause under the terms of the lease. 12. The rent subsidy for any rental unit paid with Grant monies may not exceed the difference between the rent standard established by the City for the unit size and thirty percent (30%) of the monthly adjusted income of the family of the tenant, in accordance with 24 CFR 92.209,(h)(1), The SUBRECIPIENT shall use FY 2022 Fair Market Rents by Unit Bedrooms for the City of Beaumont Metropolitan Area. This can be found as an attachment to this agreement in Exhibit C. 13. The rent to be paid under each lease must be reasonable, based on rents that are charged for comparable unassisted rental units, The City shall establish rents standards for various unit sizes in accordance with 24 CFR 92.209(h)(3) and shall advise SUBRECIPIEJNT of the rent standards applicable from time to time. 14. Housing for which assistance is received under the HOME -ARP TBRA program must meet and be maintained in accordance with the following standards: a. The housing quality standards in Section VI.C.9 of the, HOME -ARP Notice; ig b. Accessibility requirements in the regulations referenced iin 24 CFR 5.105(a), which implement the Fair Housing Act and Section 504 of the Rehabilitation Act of1973;and c. All applicable state and City housing codes and ordinances, 15. SUBRECIPIENT, shall conduct inspections of each rental unit before approving assistance under the, HOME -ARP TBRA program and at least annually thereafter, during the term of the rental assistance contract to ensure these standards are met. If any rental unit for which HOME -ARP TBRA assistance is being given falls below these standards, the City shall promptly notify SUBRECIPIENT, the tenant, and the owner of the housing of the specific matters needing correction and shall give a reasonable time (generally ranging from twenty-four (24) hours for violations, that are an imminent health or safety threat, to thirty (30) days for other problems) for the deficiencies to be corrected. If the deficiencies are not corrected within the time allowed, the HOME -ARP TBRA Grant monies shall be suspended for that rental unit until the deficiencies, are corrected to the satisfaction of the City, This HOME -ARP TBRA contract may also be cancelled if the deficiencies continued unabated. 16. Each tenant selected to receive assistance must consent in writing for his or her files to be inspected, copied', and audited by the City, HUD, or any of their agents or employees, and must waive any confidentiality requirements that may otherwise be breached as, a direct or indirect result of any such inspection, copying, or audit. 17. SUBRECIPI ENT shall verify alll factors relating to a famiily's eligibility for HOME - ARP TBRA that have not already been verified by the City at the time of the application. The verification will be by means of third -party verification and review of primary documents provided by the applicant or applicant certification. "MMISHAGM 1. In the event that the Subrecipient expends Seven -Hundred -Fifty Thousand and 00 Dollars ($750,000.00) or more in Federal awards in its fiscal year, the Subrecipient must have a single or program -specific audit conducted in accordance with the provisions of Title 2 Code of Federal Regulations (CFR) Part 200, as revised. In determining the Federal awards expended in its, fiscal year, the Subrecipient shall consider all sources of Federal awards, including Federal resources received from the City. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by Title 2 CFR Part 200, as revised. An audit of the Subrecipient conducted by the Auditor General in accordance with the provision 2 CFR Part 200, as revised, will mee the requirements of this part. 16 2. In connection with the audit requirements addressed in Paragraph 1 above, the Subrecipient shall fulfill the requirements relative to audit responsibilities as provided in 2 CFR Part 200, as revised. 3. If the SILIBRECIPFENT expends less than Seven -Hundred -Fifty -Thousand and 00/100 Dollars ($,750,000.010) in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, is not required. In the event that the Subrecipient expends less than Seven -Hundred -Fifty -Thousand and 00/100 Dollars ($750,000.00) in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, the cost of the audit must be paid from non -Federal resources, 4. In addition to reviews of audits conducted in accordance with 2 CFR Part 200, as revised, monitoring procedures may include, but not be limited to, on -site visits by the City and/or HUD; limited -scope audits as defined by 2 CFR Part 200, as revised; submittal and review of financial statements; and/or other procedures. By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City and/or HUD determines that a limited -scope of the Subrecipient is appropriate, the Subrecipient agrees to comiply with any additional instructions provided by the City and/or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees, to comply and': cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor General. 5. Inspector General: In those instances where state funding is involved, the Subrecipient and its subcontractors must agree to cooperate with the inspector general in any investigation, audit, inspection, review or hearing. By entering into this Agreement, the Subrecipient certifies it understands and will comply with this provision. 6. If the subrecipient is not subject to thie audit requirements found at 2 CFR Part 200 Subpart F, a financial report in accordance with FAS Statement No. 117, Financial Statement of Not -for -Profit Organizations, as amended, shall be submitted to the City within thirty (30) days after the end of its fiscal year. 7. Monitoring provides information for making an informed judgement about program effectiveness and management efficiency, as well as identifying, internal weaknesses that may contribute to fraud or abuse. The monitoring procedures established for the Subrecipient may include, but are not limited to, on -site visits by the City or HUD; limited -scope audits as defined by 2 CFR Part 200, as revised, submittal and review of financial management statements as defined by FAS Statement No. 117, performance reports; and other procedures as determined necessary. & By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City or HUD determines that more than a limited -scope audit of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the 27 City or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, review, investigations, or audits deemed necessary by the City, Chief Financial Officer, or Auditor General9. A copy of the audit or financial management report must be provided to the Community Development Department within thirty (30) days after receipt by the Subrecipient. UNRUWW. ■;�� iflLgm-in-F4�W 110 r1 11 1. Performance Monitoring: The City shall monitor the performance of the Subrecipient against goals, performance standards, and requirements herein. Substandard performance, as determined by the City, in its sole and absolute discretion, shall constitute noncompliance of this Agreement. If such substandard performance is not corrected by the Subrecipient within a reasonable time period, as determined by the City, after being notified by the City of it, in accordance with Article X111, contract suspension or termination procedures may be initiated and enforced in accordance with regulations set forth in 2 CFR Part 200, Subpart D, and Article XIII herein. In no case shall a reasonable period of time to begin the correction of substandard performance by shorter than seven (7) days or longer than ninety (90) days unless otherwise provided hereiin. Notwithstanding the foregoing, the City hereby agrees that any cure of any default made or tendered by the Suibrecipient's investor limited partner (or their affiliates, or their successors or assigns) shall be deemed to be a cure by the Subrecipient and shall by accepted or rejected on the same basis is if made or tendered by Subrecipient. 2. Reporting Requirements: The Subrecipient will inform the monitoring agent secured by HUD that the, City must receive a copy of all documents relating to the monitoring and compliance of the Project. 3, Laws: The Subrecipient shall not enter into any contracts or subcontracts in the performance of this Agreement without the written consent of the City. All contracts or subcontracts made by the Subrecipient to carry out the Project shall be made in accordance with all applicable Federal, State, and local laws, rules and regulations stipulated in this Agreement and in strict accordance with all terms, covenants, and conditions in this Agreement. Any worker's services contracted hereunder shall be specified by written contract or agreement and shall be subject to each article set forth in this Agreement. 4. Subcontract Monitoring: The, Subrecipient shall monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance, Such summaries and documents shall be submitted to the City with each Request for HOME Reimbursement and Quarterly Performance Report to be reported to HUD. wo, 5. Prior City Approvals: The following includes, but is not limited to, activities that require thie prior written approval of the City to be eligible for payments: a. All requests for proposals/qualifications, bid packages, proposed advertisements, and procurement documentation for services prior to award. b. The initiation of new activities not covered by this Agreement or changes in, the location or the deletion of any activity/activities. c. Any service(s) or activity/activities other than those described in Article III above, d. Any proposed revisions to this Agreement. e. Requests to utilize remaining funds should there be a surplus after work is substantially completed. Requests must be made in writing and signed by an individual with signatory authority. FATITIM 1.11111 Q 4 4 kyj 4 HOME -ARP Funds will be awarded as a, grant pursuant to the terms of the Agreement. Subreciipient shall be required to enter into a Land Use Restrictive Agreement (LURA) for a period of 15 years, and such agreement shall be recorded in the Public Records of the City, The Allocated Sum shall be secured by a twenty (201) year deferred mortgage and promissory note on the real property on which the Project is located. ARTICLE XX 1. All HOME -ARP funds are subject to repayment in the event the Project does not meet the requirements as outlined in this Agreement 2. It is understood that upon the completion of the Project, any HOME -ARP funds reserved but not expended under this Agreement will revert to the CITY, 3. Funds will remain a deferred loan for the period of twenty (20) years, at which time the loan may be forgiven or extended in the sole discretion of the City for another term. Sale of the property to another party may occur only with the approval of the City and the purchaser shall assume all obligations of the Subrecipient under this Agreement, the note and mortgage, and the deed covenants. Provisions in those documents will provide for the extinguishment of the requirements only in the event of a third -party foreclosure or deed in lieu of foreclosure. 19 [419111 " OMTO a I "i .111 The City shall not be liable to any person, firm, or corporation who contracts with, or provides goods or services to, the Subrecipient in connection with the services as agreed to perform hereunder or for debts or claims accruing to such parties againist the Subrecipient; and there is no contractual relationship either expressed or implied between the City and any other person, firm, or corporation supplying any work, labor, services, goods, or materials to the Subrecipient as a result of the Subrecipient's services to the City hereunder. ERWRTS" W, F91001ORMAITAff MOE AM The Subrecipient shall record the receipt and expenditure of the Program Income, as, defined in 24 CFR 92.503(a) ("Program Income"), as part of the, financial transactions of the grant -funded Project. The use of Program Income by the Subrecipient shall comply with the requirements set forth in 24 CFR 9:2,503. The Subrecipient may use Program Income during the Term of this Agreement and shall reduce requests for additional funds by the amount of any such Program Income on hand. The Subrecipient shall submit a detailed accounting of the receipt and use, of Program Income as indicated in Exh,ibit C, attached hereto andl incorporated herein, in conjunction with quarterly reporfing that is required. All unused Program Income with interest shall be returned to the city at the end of the Term. The City shall return these monies to HUD. Upon expiration or termination of this Agreement, the Subrecipient shall transfer to thie city any Allocated Sum that has not been specifically allocated for the Project pursuant to this Agreement, as specified in 24 CFR 92.504(c)(2)(vii)., 20 ARTICLE XXIV The Subrecipient shall defend, hold harmless and indemnify the City and all of its officers, agents, and employees, whether current or former, from and against any and all actions, claims, liabilities, losses, damages, costs, attorney's fees, charges, or expenses of whatever kind of nature which the City may sustain, suffer, incur, or be required to pay by reason of the loss of any monies paid to the subrecipient resulting out of fraud, defalcation, dishonest, or failure of the Subriecipient to comply with the Housing and Community Development Act of 1974 and its regulations; or arising out of any act, action, neglect, or omission during the performance of this Agreement, any part thereof, or work performed hereunder, whether direct or indirect; or by reason or result of injury caused by the Subrecipient's or subcontractors' willful or neglect maintenance or supervision of the property or work performed; or by reason of a judgement over and above the limits provided by the insurance required under Article XXV of this Agreement; or by any defect in the condition or construction of the Project if the Project was inspected and accepted by the Subrecipient; whether or not due to, or caused by negligence of the City or any of its agents and employees. only a final adjudication judgement finding the City solely negligent shall excuse the performance of this provision by the Subrecipient. The Subrecipient shall pay all costs and fees related to this obligation and its enforcement by the City. This Article XXIV shall survive any termination, cancellation,, or expiration, of this Agreement. I&M "k-11014 1. The Subrecipient shall procure and maintain, for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Subrecipient's operation and use of any real property and any building, shelter, or similar structures thereon (hereinafter referred to as "Premises"). The cost of such insurance shall be borne by the Subrecipient. 2. The Subrecipient shall not enter or occupy the Premises until it has obtained all insurance required herein and such insurance has been approved by the City as provided herein. 3. The Subrecipient shall furnish certificate(s) of insurance on the form required by the City to the City. The certificate(s) shall clearly indicate the Subrecipi'ent has obtained insurance of the type, amount, and classification required for strict compliance with this Agreement and that no reduction in coverage or in llim,its, suspension, or cancellation of the insurance shall be effective without thirty (30) days prior written notice as provided below. The certificate(s) shall 041 be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required policies at any time. Each insurance policy required by this Agreement shall, be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in, coverage or in, limits, except after thirty (30) days prior written notice by Certified Main, Return Receipt Requested, has been given to the City to the attention of the City of Beaumont community Development Director. In the event the insurance coverage expires prior to the termination or end of this Agreement, a renewal certificate shall be issued thirty (30) days prior to the expiration date. Compliance with, the foregoing requirements shall not relieve the Subrecipient of the liability and other obligations under this Agreement. Neither approval by the City or a failure to, disapprove insurance certificates or policies furnished by the Subrecipient shall release the Subrecipient of full responsibility for all liability or its obligations under this Agreement. 4. All insurance policies shall be issued by responsible companies authorized to do business under the laws of the State of Texas, have an "A" policyholders' rating, have a financial rating of at least Class Vill in accordance with the most current Best's Key Rating Guide, and shall be satisfactory to the City. All policies of insurance required by this Agreement shall be primary insurance with respect to the City, its officials, agents, and employees. Any insurance or self-insurance maintained by the City, its officials, agents, or employees shaill be in excess of the Su�brecipient's insurance and shall not contribute to it. All policies of insurance required by this Agreement, except workers' compensation, shall specifically provide that the City shall be an "additional insured" under the policy and shall contain a Severability of Interests provision, All insurance policies required herein and all provisions hereof shall apply to all operations, activities, or use by the Subrecipient or by anyone employed by or contracting with the Subrecipient, and it is the S,ubrecipient's responsibility to ensure that any contractor, subcontractor, or anyone directly or indirectly employed by any of them complies with those insurance provisions and that the City is an "additional insured" on such policies. Any deductibles or self -insured retentions must be declared to and approved by the City and are the responsibility of the Subrecipient. The minimum types and limits of coverage to be carried by the Subrecipient are as follows: a. Workers' Compensation and Employer's Liability: If the Subrecipient falls under the State of Texas Workers' Compensation law, the Subrecipient shall provide coverage for all employees. The coverage shall be for the statutory limits in compliance with the applicable State and Federal laws. The policy must include employer's liability with a limit of One Hundred Thousand and 00/100 Dollars ($1001,000.010) for each accident. The iinsurer shall agree to waive all rights of subrogation against the City, its officials, agents and employees., b. Comprehensive General Liability: Shall iinclude premises and/or operations, broad form property damage, independent contractor, contractual liability, and fire legal liability, and shall be written on an "occurrence W basis". In the event Subrecipient is only able to secure coverage on a "Claims -made basis", the Subrecipient shall be obligated, by virtue of this Agreement, to maintain tail coverage in effect with no less limits, of liability, nor any more restrictive terms and/or conditions, for a period of three (3) years from expiration or termination of this Agreement. c. Bodily injury and personal injury, including death: $2,0100,000.00 aggregate; $1,000,000.00 each occurrence; 11 rol 11 MIS-1 It] ki Y-0 6.111 k CA The Subrecipient may not assign this Agreement without the prior written consent of the City. ARTICLE XXVI I 72 OWTIT-110 W All articles and descriptive headings of paragraphs in this Agreement are inserted for convenience only and shall not affect the construction or interpretation Thereof. FTMURWIVIM 19101"MA" 111111417414 ii'M [a] il This agreement may be executed in whole or in part,, and each fully executed part shall be deemed an original instrument. 23 The Subrmcipiant agrees to comply with any City or State civil rights ordinances; Tit�le %| of the Civil Rights Act of 1964, as amended; Title Xlll of the Civil Rights Act of 1968, as amencled; Section 1O9 of Title I of the Housing and Community Development Act of 1974; the Americans with Disabilities Act of1990; the Age, Discrimination Act of1875; and Executive Orders 11U63 and 11246,asamended byExecutive orders ll375and l2OO6. The Submeci9ien1shall comply with 24 CFR92.505,and adhere toaccounting principles and procedures requii[ed therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred, The Su6recipiemtshall administer the Project im conformance, with Section VllLD. of the HOME -ARP Notice, as amended. The Subrecipient will not discriminate against any employee or applicant for employment because ofrace, color creed, religion, ancest;\matlumw[nhgin,sem disability, other handicaps, age marital status, orstatus with regard topublic assistance. Tothe extent Subredpienthas employees, the Subrecipient will take affirmative action to ensure that all employment practices prohibit such discrimination. Such employment practices include but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment mrrecruitment advertising, lay -of[ termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Smhrecipientagrees topost inconspicuous places, available ta employees and app[icants for employment, notices setting forth the provisions of this nondiscrimination clause. TheSubnecipient agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 United States Code of Law (U.S.C.) 794) 8� which prohibits discrimination against the handicapped in any Federally assisted program, The City shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations during the term of this Agreement. A I Wil 0,101-1011RI M► The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act, as amended (48 CFR 22,405-1), the provisions of contract work hours and the Safety Standards Act (40 U.S.C. 3701, et seq. and 48 CFR 22.403-1, 22-403- 3); the Copeland "Anti -Kickback" Act (48CFR 220403-2; 18 U.S.C. 874 et seq.; 40 U.S,C 3141, et seq., formerly cited as 40 U.S.C. 276a, 327-333) and all other applicable Federal, State, and local laws and regulations pertaining to labor standards insofar as such acts apply to the performance of this Agreement, The Subrecipient shall maintain documentation that demonstrates compliance with all hour and wage requirements of this part. Such documentation shall be made available to the CITY for review upon request, F11 1:3111 [4114 - WON 1. Compliance with the provisions of Section 3 of the HUD ACT of 1968, the regulations set forth in 24 CFR Part 75, and applicable rules and orders issued hereunder prior to thie execution of the Agreement shall be a condition of the Federal financial assistance provided under this Agreement and is binding upon the City, the Subrecipiienit, and any subcontractors. Failure to fulfill these requirements shall subject the City, the Subrecipient, and any subcontractors. Their successors, and assigns to those sanctions specified by the agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. 2. The Subrecipient agrees to send to each labor organization or representative of workers with whom it has a collective -bargaining agreement or contract or understanding, if any, a notice advising the said labor organization, or workers' representative or its commitments under the Section 3 clause, and shall post copies of the notice in conspicuous places available to employees and' applicants for employment or training. 3. The Subrecipient will include the Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon finding that the contract is in violation, of regulations issued by the City or the Federal government. The Subrecipient will not subcontract with any sub -contractor where it has notice or knowledge that the latter has been found in violation or regulations under 24 CFR Part 75 and will not let an subcontract unless the 25 subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these requirements, W I'll 1 [411 I U M I F-IM I The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or any extent engaged in the conduct of political activities in violation of 5 U.S.C. 1501 et seq. as subsequently amended, F-Al A I N 1: 11,10,10 The subrecipient covenants, that it presently has no financial interest and shall not acquire financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Subrecipiient further covenants that in the performance of this Agreement, not person having such a financial interest shall be employed or retained by the Subrecipient or subcontractor hereunder, except for services performed. These conflict -of -interest provisions apply to any person who is a person, agent, consultant, officer, or elected official or appointed official of the City or of any designated public agencies or SUBRECIPIENTS that are receiving funds under this agreement. ARTICLE XXXVII The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in, 24 CFR 5.1M F-A oil I N I OAXAXIO I I MTOW-17-11MIRWIT M, The Subrecipient agrees that any construction, or rehabilitation or residential structures, with assistance provided under this Agreement, shall be subject to the HUD Lead -Based Paint Regulations at 24 CFR 92.355. Such regulations pertain to all HUD -assisted housing and require that all owners, prospective owners, and tenants for properties constructed prior to 1978 be, W. properly notified that such properties may include lead -based paint. Such notification shall point out the hazards of lead -based paints and explain the symptoms, treatment, and precautions that should be taken when dealing with lead -based poisoning. ARTICLE XXXIV WWOU411 � i � 5 i 11 wGN-01111-115H V 1. Air and Water: Subrecipient agrees to comply with the following regulation insofar as they apply to the performance of this Agreement: a. Clean Air Act, 42 U.S.0 7401, et seq. b. Federal Water Pollution Control Act, as amended: 33 U.S.C. 1251, et seq., as amended; and 33 U.S.C. 1318, relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in the said Sections 114 and 308 and all regulations and guiideli'nes issued thiereunder. c. Environmental Protection Agency Regulations pursuant to 40 CFR Part 50, et seq., as, amended. d. HUD Environmental Review Procedures (24 CFR Part 58) 2. Flood Disaster Projection: In accordance with requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.), the SUBRECIPIENT shall obtain and maintain flood insurance under the National Flood Insurance Program for any activities located in an area identified by the Federal Emergency Management Act as having, special flood zones. The Subrecipient agrees to comply with, the historic preservation regulations set forth in the National Historic Preservation Act of 1968, as amended (54 U.S.C. 300101, et seq, (formerly cited as 16 U.S.C. 4701), and the procedures set forth, in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures, for protection of historic properties insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for rehabilitation and demolition of all properties build fifty (50) years ago to assess how the activity could affect a hiistoric property listed in or eligible for the National Register of Historic Places. 27 1. The subrecipient may not change the eligible use of the Units, the method of providing service by excluding properties or persons currently covered, sell or transfer the Units except in connection with the sale of the Project to an entity that assumes the Subrecipient obligations under this Agreement and the mortgage and note, or vacate the Units without the CITY's permission, until the expiration of this Agreement. 2. If the City and the Subrecipient determine, after consultation with the affected citizens, that it is appropriate to change the use of the property to a use which does not qualify under Paragraph I of this article, the Subrecipient may retain or dispose of the property for the changed use after the City HOME is reimbursed in the amount of the Allocated Sum. During the term of the Agreement, the Subrecipient shall give a first right of refusal to eligible nonprofit organizations for, the purchase of the Unit at the current market value so that the Unit may continue to be occupied by eligible persons as set forth in, the mortgage and note. 3. Following the reimbursement of the Allocated Sum in accordance with Paragraph 2 of this article, the property will not longer be subject to any Program requirements. F-11 1,114 d [411111*114 1 Any nonexpenclable personal property acquired by the Subrecipient under this project shall be subject to the provisions of the Housing and Community Development Act of 1974 and its regulations, including but not limited to, the provisions on the use and disposition of property for a period of five (5) years after the purchase, 1. The City may have inspections of the premises either performed by the City, or on its behalf for structural integrity and safety. 2. Other than as provided in Exhibit A, the Subrecipient shall not mortgage or otherwise encumber title to the, said real property by utilizing the said real property as colllateral for any type of lien, note, mortgage, debt obligation, or security agreement without prior written notification to the HOME Administrator. ff.] FA-3041111*111 The S,ubrecipient is required to maintain the real property and structures located thereon in a condition that meets alll current housing, safety, and health standards as required by all applicable federal, state, and local laws, rules and regulations. MISCELLANEOUS Entire Agreement: This Agreemient represents the entire agreement between the parties and supersedes any and all prior agreements, negotiations, or understandings, written or oral, relating to the matters set forth herein. Prior agreements, negotiations, or understandings, if any, shall have no force or affect whatsoever on this Agreement, All parties hereto agree that if any part, term, or covenant of this Agreement is held to be illegal, unenforceable, or in conflict with any applicable Federal, State, or local laws or regulations, such part shall be severable with the remainder of this Agreement valid and enforceable. Sovereign Immunity: Nothing in this agreement shall be construed in anyway to waive the sovereign immunity of the City. 3. Applicable Law: This Agreement, when not governed by Federal law, shall be governed by and interpreted in accordance with the laws of the State of Texas. we F.Al a a 11190 a 1110 5 to] I 4k ITI I Sharee Reed City Attorney CITY OF BEAUMONT Kenneth R. Williams City Manager ATTEST: Tina Broussard City Secretary Tender Loving Care Center for Children dba Legacy Community Develiopment Corporation Vivian Ba:llou, Executive Director Date 30 31 m 33