HomeMy WebLinkAboutRES 17-077RESOLUTION NO. 17-077
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute a contract,
substantially in the form attached hereto as Exhibit "1," with the United States
Department of Housing and Urban Development (HUD) to receive up to $146,744 for
the Continuum of Care (CoC) Grant through the U. S. Department of Housing and
Urban Development; and,
BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby
authorized to execute a contract, substantially in the form attached hereto as Exhibit "2,"
with Triangle Area Network as sub -recipient of the Continuum of Care (CoC) Grant.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
April, 2017.
-�kyor Becky knes -
,�V- N70Fyo U.S. Department of Housing and
Urban Development Office of
Community Planning and Development
o I�I��III 1301 Fannin Street Suite 2200
Q� Houston, TX 77002
�eqN E)"4
Tag ID No.: 74-6000278
CoC Program Grant Number: TX0219L6E071609
Effective Date:
DUNS No.: 073901118
CONTINUUM OF CARE PROGRAM
GRANT AGREEMENT
This Grant Agreement ("this Agreement") is made by and between the United States
Department of Housing and Urban Development ("HUD") and City of Beaumont (the
"Recipient").
This Agreement is governed by title IV of the McKinney-Vento Homeless Assistance
Act 42 U.S.C. 11301 et seq. (the "Act") and the Continuum of Care Program rule (the "Rule").
The terms "Grant " or "Grant Funds" represents the funds that are provided under this
Agreement. The term "Application" means the application submissions on the basis of which the
Grant was approved by HUD, including the certifications, assurances, and any information or
documentation required to meet any grant award condition. All other terms shall have the
meanings given in the Rule.
The Application is incorporated herein as part of this Agreement, except that only
those project listed, and only in the amount listed on the Scope of Work exhibit, are funded by
this Agreement. In the event of any conflict between any application provision and any
provision contained in this Agreement, this Agreement shall control.
Exhibit 1, the FY2016 Scope of Work, is attached hereto and made a part hereof. If in
the future appropriations are made available for Continuum of Care grants; if the Recipient
applies under a Notice of Funds Availability published by HUD; and, if pursuant to the selection
criteria in the Notice of Funds Availability, HUD selects Recipient and one or more projects
listed on Exhbit 1 for renewal, then additional Scope of Work exhibits may be attached to this
Agreement. Those additional exhibits, when attached, will also become a part hereof.
The effective date of the Agreement shall be the date of execution by HUD and it is the date
the usage of funds under this Agreement may begin. Each project will have a performance period
that will be listed on the Scope of Work exhibit(s) to this Agreement. For renewal projects, the
period of performance shall begin at the end of the Recipient's final operating year for the project
being renewed and eligible costs incurred for a project between the end of the Recipient's final
operating year under the grant being renewed and the execution of this Agreement may be paid
with funds from the first operating year of this Agreement. For each new project funded under this
Agreement, the Recipient and HUD will set an operating start date in eLOCCS, which will be used
to track expenditures, to establish the project performance period and to determine when a project
is eligible for renewal. The Recipient hereby authorizes HUD to insert the project performance
period for new projects into the exhibit without the Recipient's signature, after the operating start
date is established in eLOCCS.
This Agreement shall remain in effect until termination either: 1) by agreement of the
parties; 2) by HUD alone, acting under the authority of 24 CFR 578.107; 3) upon expiration of the
final performance period for all projects funded under this Agreement; or 4) upon the expiration of
the period of availability of funds for all projects funded under this Agreement.
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EXHIBIT "1"
Recipient agrees:
1. To ensure the operation of the project(s) listed on the Scope of Work in accordance
with the provisions of the Act and all requirements of the Rule;
2. To monitor and report the progress of the project(s) to the Continuum of Care and HUD;
3. To ensure, to the maximum extent practicable, that individuals and families experiencing
homelessness are involved, through employment, provision of volunteer services, or
otherwise, in constructing, rehabilitating, maintaining, and operating facilities for the
project and in providing supportive services for the project;
4. To require certification from all subrecipients that:
a. Subrecipients will maintain the confidentiality of records pertaining to any
individual or family that was provided family violence prevention or treatment
services through the project;
b. The address or location of any family violence project assisted with grant funds will
not be made public, except with written authorization of the person responsible for the
operation of such project;
c. Subrecipients will establish policies and practices that are consistent with, and do not
restrict, the exercise of rights provided by subtitle B of title VII of the Act and other
laws relating to the provision of educational and related services to individuals and
families experiencing homelessness;
d. In the case of projects that provide housing or services to families, subrecipients will
designate a staff person to be responsible for ensuring that children being served in the
program are enrolled in school and connected to appropriate services in the
community, including early childhood programs such as Head Start, part C of the
Individuals with Disabilities Education Act, and programs authorized under subtitle B
of title VII of the Act;
e. The subrecipient, its officers, and employees are not debarred or suspended from doing
business with the Federal Government; and
f. Subrecipients will provide information, such as data and reports, as required by HUD;
5. To establish such fiscal control and accounting procedures as may be necessary to assure
the proper disbursal of, and accounting for grant funds in order to ensure that all financial
transactions are conducted, and records maintained in accordance with generally accepted
accounting principles, if the Recipient is a Unified Funding Agency;
6. To monitor subrecipient match and report on match to HUD;
7. To take the educational needs of children into account when families are placed in housing
and will, to the maximum extent practicable, place families with children as close as
possible to their school of origin so as not to disrupt such children's education;
8. To monitor subrecipients at least annually;
9. To use the centralized or coordinated assessment system established by the Continuum of
Care as required by the Rule. A victim service provider may choose not to use the
Continuum of Care's centralized or coordinated assessment system, provided that victim
service providers in the area use a centralized or coordinated assessment system that meets
HUD's minimum requirements;
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10. To follow the written standards, developed by the Continuum of Care, for
providing Continuum of Care assistance, including those required by the Rule;
11. Enter into subrecipient agreements requiring subrecipients to operate the
project(s) in accordance with the provisions of this Act and all requirements of the
Rule; and
12. To comply with such other terms and conditions as HUD may have established
in the applicable Notice of Funds Availability.
HUD notifications to the Recipient shall be to the address of the Recipient as stated in the
Application, unless HUD is otherwise advised in writing. Recipient notifications to HUD shall be
to the HUD Field Office responsible for executing the Agreement. No right, benefit, or advantage
of the Recipient hereunder may be assigned without prior written approval of HUD.
The Agreement constitutes the entire agreement between the parties hereto, and may be
amended only in writing executed by HUD and the Recipient.
By signing below, Recipients that are states and units of local government certify that they
are following a current HUD approved CHAS (Consolidated Plan).
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This agreement is hereby executed on behalf of the parties as follows:
UNITED STATES OF AMERICA,
Secretary of Housing and Urban Development
LIM
(Signature)
Darrell C. Logan, Program Manager
(Typed Name and Title)
(Date)
RECIPIENT
City of Beaumont
(Name of Organization)
By:
(Signature of Authorized Official)
(Typed Name and Title of Authorized Official)
ate
www.hud.gov espanol.hud.ov Page
Tax ID No.: 74-6000278
CoC Program Grant Number: TX0219L6E071609
Effective Date:
DUNS No.: 073901118
EXHIBIT 1
SCOPE OF WORK for FY2016 COMPETITION
1. The projects listed on this Scope of Work are governed by the Continuum of Care Program
Interim Rule attached hereto and made apart hereof as Exhibit 1 a. Upon publication for
effect of a Final Rule for the Continuum of Care program, the Final Rule will govern this
Agreement instead of the Interim Rule. The projects listed on this Exhibit at 4., below, is
also subject to the terms of the Notice of Funds Availability for the fiscal year listed above.
2. The Continuum that designated the Recipient to apply for grant funds has not been
designated a high performing community by HUD for the applicable fiscal year.
3. The Recipient is not the only Recipient for the Continuum of Care. HUD's total funding
obligation for this grant is $_146744_, allocated between budget line items, as indicated
in 4., below. In accordance with the Rule, the Recipient is prohibited from moving more
than 10% from one budget line item in a project's approved budget to another without a
written amendment to this Agreement.
4. Subject to the terms of this Agreement, HUD agrees to provide the Grant funds, in the
amount specified for the project application listed, to be used during the performance
period established below. However, no funds for new projects may be drawn down by
Recipient until HUD has approved site control pursuant to the Rule and no funds for
renewal projects may be drawn down by Recipient before the end date of the project's final
operating year under the grant that has been renewed.
Project No. Performance Period Total Amount
TX0219L6E071609 02-01-2017 - 01-31-2018 $ 146744
Allocated between budget line items as follows:
a. Continuum of Care planning activities
$
b. UFA costs
$ 0
c. Acquisition
$ 0
d. Rehabilitation
$ 0
e. New construction
$ 0
f. Leasing
$ 0
g. Rental assistance
$ 138300
(of which $ 0 is for short-term and medium-term
rental assistance for persons at risk of hornlessness)
h. Supportive services $ 0
i. Operating costs $ 0
j. Homeless Management Information System $ 0
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k. Administrative costs $ 8444
1. Relocation Costs $ 0
in. Housing relocation and stabilization $ 0
services
5. If grant funds will be used for payment of indirect costs, pursuant to 2 CFR 200, Subpart E
- Cost Principles, the Recipient is authorized to insert the Recipient's federally recognized
indirect cost rates (including if the de minimis rate is charged per 2 CFR §200.414) on the
attached Federally Recognized Indirect Cost Rates Schedule, which Schedule shall be
incorporated herein and made a part of the Agreement. No indirect costs may be charged
to the grant by the Recipient if their federally recognized cost rate is not listed on the
Schedule. Do not include indirect cost rates for Subrecipients; however, Subrecipients may
not charge indirect costs to the grant if they do not also have a federally recognized
indirect cost rate.
6. The following project has not been awarded project -based rental assistance for a term of
fifteen (15) years. Funding is provided under this Scope of Work for the performance
period stated in paragraph 4. Additional funding is subject to the availability of annual
appropriations.
7. Program income earned during the grant term shall be retained by the recipient and used
for eligible activities. Program income may also be counted as match.
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Tax ID No.: 74-6000278
CoC Program Grant Number: TX0219L6E071609
Effective Date:
DUNS No.: 073901118
FEDERALLY RECOGNIZED INDIRECT COST RATE SCHEDULE
Grant No. Recipient Name Indirect cost rate Cost Base
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This agreement is hereby executed on behalf of the parties as follows:
UNITED STATES OF AMERICA,
Secretary of Housing and Urban Development
(Signature)
Darrell C. Logan, Program Manager
(Typed Name and Title)
to
RECIPIENT
City of Beaumont
(Name of Organization)
Un
(Signature of Authorized Official)
(Typed Name and Title of Authorized Official)
Date
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AGREEMENT
BETWEEN THE CITY OF BEAUMONT
AND
TRIANGLE AREA NETWORK
112t
COWL HMStvG
OPPORTUNITY
This Agreement is made and entered into between the City of Beaumont, Texas,
hereinafter referred to as CITY, and Triangle Area Network, hereinafter referred to as
SUBRECIPIENT pursuant to the authority of Resolution 17- _'passed by the Beaumont City
Council on 2017. This assistance will be funded in whole by the U.S. Department of
Housing and Urban Development, Continuum of Care Program.
WHEREAS, City has designated the Department of Community Development Block
Grants Administration responsible for the administration of this Agreement and all matters
pertaining thereto; and;
WHEREAS, the Continuum of Care Program (CoQ is authorized by Title IV, subtitle F,
of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11403-
11407b). CoC is designed to provide rental assistance, in connection with supportive services for
hard -to -serve homeless persons with disabilities (primarily those who are seriously mentally ill;
have chronic problems with alcohol, drugs, or both; or have acquired immunodeficiency
syndrome (AIDS) and related diseases) and their families;
WHEREAS, the U.S. Department of Housing and Urban Development has awarded CITY
a grant in the amount of $146,744.00 under the FY2016 Continuum of Care TRA Program, grant
#TX0219L6E071609-TRA, to administer and provide tenant -based rental assistance (TRA) of
(17) scattered site units for a period of one year, and;
WHEREAS, in the FY16 grant CITY has engaged SUBRECIPIENT as the agency that
would administer the rental assistance subsidies provided under the program;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to
the mutual obligations and the performance and accomplishment of the conditions hereinafter
described.
1. TERM
Subject to the provisions of this Grant Agreement, the CITY will make funding assistance
available to SUBRECIPIENT upon execution of the Grant Agreement by both parties. The
grant period will extend from the 1St day of February, 2017 through the 31 st day of January,
2018 unless sooner terminated in accordance with Section 25, Termination.
EXHIBIT "2"
om 4111 DM ' 1MR11:
SUBRECIPIENT hereby accepts the responsibility for the performance of all services and
activities described as set forth in Exhibit A, and incorporated herein by reference, in a
satisfactory and efficient manner as determined by CITY, in accordance with the terms herein.
CITY will consider SUBRECIPIENT's Executive Officer to be SUBRECIPIENT's
representative responsible for the management of all contractual matter pertaining hereto,
unless written notification to the contrary is received from SUBRECIPIENT, and approved by
CITY.
Pursuant to receiving the equivalent amount of fund from the U.S. Department of Housing and
Urban Development, The City has allocated the sum of $146,744.00 to be expended under this
contract. Unless an amendment to this contract otherwise provides, that amount shall in no
event be exceeded and the City shall under no circumstance be required to pay in excess of
that amount.
The CITY'S CDB G Manager will be CITY'S representative responsible for the administration
of this Agreement.
3. CITY'S OBILIGATION
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred
pursuant and in accordance with the project budget attached hereto as Exhibit C and the
Statement of Work herein attached as Exhibit A and incorporated herein by reference.
Notwithstanding any other provision of the Agreement, the total of all payments and other
obligations made or incurred by CITY hereunder shall not exceed the sum of $146,744.00.
B. Measure of Liability. In consideration of full and satisfactory services and activities
hereunder by SUBRECIPIENT and receipt of a request for payment with appropriate
documentation of expenditures, CITY shall make payments to SUBRECIPIENT based
on the Project Budget attached hereto and incorporated herein for all purposes as Exhibit
C, subject to the limitations and provisions set forth in this Section and Section 7 of this
Agreement. Payments may be contingent upon certification of the SUBRECIPIENT'S
financial management system in accordance with the standards specified in OMB
Circular A-110, attached hereto as Exhibit D and incorporated herein by reference.
1. The parties expressly understand and agree that the CITY'S obligations under this
Section are contingent upon the actual receipt of adequate Shelter Plus Care (S+C)
funds to meet CITY'S liabilities under this Agreement. If adequate funds are not
available to make payments under this Agreement, CITY shall notify
SUBRECIPIENT in writing within a reasonable time after such fact has been
determined. CITY may, at its option, either reduce the amount of its liability, as
specified in Subsection A of this Section or terminate the Agreement. If S+C funds
eligible for use for purposes of this Agreement are reduced, CITY shall not be
liable for further payments due to SUBRECIPIENT under this Agreement
2. It is expressly understood that this Agreement in no way obligates the General
Fund or any other monies or credits of the City of Beaumont.
3. CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed or is subject to payment or reimbursement, from
any other source;
(b) was incurred prior to the beginning date, or, without prior approval from
CITY, after the ending date specified in Section 1;
(c) is not in strict accordance with the terms of this Agreement, including all
exhibits attached hereto;
(d) reimbursement from CITY has not been requested within 90 calendar days
following billing to SUBRECIPIENT, or termination of the Agreement,
whichever date is earlier; or
(e) is not an allowable cost as defined by Section 10 of this Agreement or the
project budget.
4. CITY shall not be liable for any cost or portion thereof which is incurred with
respect to any activity of SUBRECIPIENT requiring prior written authorization
from CITY, or after CITY has requested that SUBRECIPIENT furnish data
concerning such action prior to proceeding farther, unless and until CITY advises
SUBRECIPIENT to proceed.
5. CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or
services.
4. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
A. SUBRECIPIENT understands that funds provided pursuant to this Agreement are funds
which have been made available to CITY by the Federal Government (U.S. Department of
Housing and Urban Development) under the Title IV, Subtitle F, of the Stewart B.
McKinney Homeless Assistance Act, as amended, in accordance with an approved Grant
Application and specific assurances. The foregoing is in no way meant to constitute a
complete compilation of all duties imposed upon SUBRECIPIENT by law or
administrative ruling, or to narrow the standards which SUBRECIPIENT must follow.
SUBRECIPIENT further assures and. certifies that if the regulations and issuances
promulgated pursuant to the Act are amended or revised, it shall comply with them, or
notify CITY, as provided in Section 23 of this Agreement.
SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements
of the Office of Management and Budget Circulars Nos. A-110, A-122, A-87 and A-133 as
applicable.
B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of
Texas, ordinances of the City of Beaumont and local program requirements.
C. SUBRECIPIENT is required to comply with the applicable uniform administrative
requirements as described in 24 CFR 582 and 24 CFR 582.400 subpart E Exhibit B, with
the exceptions noted below:
1. SUBRECIPIENT does not assume CITY'S environmental responsibilities
described at CFR 582.230; and
2. SUBRECIPIENT does not assume the CITY'S responsibility for initiating the
review process under the provisions of 24 CFR Part 582.
5. REPRESENTATIONS
A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to
any proper, appropriate and official motion, resolution or action passed or taken, to enter
into this Agreement.
B. The person or persons signing and executing this Agreement on behalf of
SUBRECIPIENT, does hereby warrant and guarantee that he, she, or they have been fully
authorized by SUBRECIPIENT to execute this Agreement on behalf of
SUBRECIPIENT and to validly and legally bind SUBRECIPIENT to all terms,
performances and provisions herein set forth.
C. CITY shall have the right, at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either
SUBRECIPIENT or the person signing the Agreement to enter into this Agreement.
SUBRECIPIENT is liable to CITY for any money it has received from CITY for
performance of the provisions of this agreement if CITY has suspended or terminated this
Agreement for the reasons enumerated in this Section.
D. SUBRECIPIENT agrees that the funds and resources provided SUBRECIPIENT under
the terms of this Agreement will in no way be substituted for funds and resources from
other sources, nor in any way serve to reduce the resources, services, or other benefits
which would have been available to, or provided through, SUBRECIPIENT had this
Agreement not been executed.
6. PERFORMANCE BY SUBRECIPIENT
SUBRECIPIENT will provide, oversee, administer, and carry out all of the activities and
services set out in the Statement of Work, attached hereto and incorporated herein for all
purposes as Exhibit A, utilizing the funds described in the Project Budget, Exhibit C, attached.
hereto and incorporated herein for all purposes and deemed by both parties to be necessary and
sufficient payment for full and satisfactory performance of the program, as determined solely by
CITY and in accordance with all other terms, provisions and requirements of this Agreement.
No modifications or alterations may be made in the Statement of Work without the prior
written approval of the City's Community Development Grants Administrator.
7. PAYMENTS TO SUBRECIPIENT
A. Payments to SUBRECIPIENT. The CITY shall pay to the SUBRECIPIENT a
maximum amount of money totaling $146,744.00 for services rendered under this
Agreement. CITY will pay these funds on a reimbursement basis to the
SUBRECIPIENT within thirty days after CITY has received approved supporting
documentation of eligible expenditures. SUBRECIPIENT'S failure to request
reimbursement on a timely basis may jeopardize present or future funding.
Funds are to be used for the sole purpose of providing services described in the Statement
of Work herein attached as Exhibit A and based on the Project Budget herein attached
as Exhibit C.
B. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of
CITY'S request, any sum of money which has been paid by CITY and which CITY at
any time thereafter determines:
1. has resulted in overpayment to SUBRECIPIENT; or
2. has not been spent strictly in accordance with the terms of this Agreement; or
3. is not supported by adequate documentation to fully justify the expenditure.
C. Disallowed Costs: Upon termination of this Agreement, should any expense or change for
which payment has been made be subsequently disallowed or disapproved as a result of
any auditing or monitoring by CITY, the U. S. Department of Housing and Urban
Development, or any other Federal agency, SUBRECIPIENT will refund such amount to
CITY within ten working days of a written notice to SUBRECIPIENT, which specifies
the amount disallowed. Refunds of disallowed costs may not be made from these or any
funds received from or through CITY.
D. Reversion of Assets. Upon expiration of this Agreement, SUBRECIPIENT shall transfer
to the CITY any CoC/SPC funds on hand at the time of expiration and any accounts
receivable attributable to the use of CoC/SPC funds. If CITY finds that
SUBRECIPIENT is unwilling and/or unable to comply with any of the terms of this
Contract, CITY may require a refund of any and all money expended pursuant to this
Contract by SUBRECIPIENT, as well as any remaining unexpended funds which shall be
refunded to CITY within ten working days of written notice to SUBRECIPIENT to revert
these financial assets. The revision of these financial assets shall be in addition to any
other remedy available to CITY either at law or in equity for breach of this Contract.
8. WARRANTIES
SUBRECIPIENT represents and warrants that:
A. All information, reports and data heretofore or hereafter requested by CITY and furnished
to CITY, are complete and accurate as of the date shown on the information, data, or
report, and, since that date, have not undergone any significant change without written
notice to CITY.
B. Any supporting financial statements heretofore requested by CITY and furnished to
CITY, are complete, accurate and fairly reflect the financial condition of
SUBRECIPIENT on the date shown on said report, and the results of the operation for the
period covered by the report, and that since said date, there has been no material change,
adverse or otherwise, in the financial condition of SUBRECIPIENT.
C. No litigation or legal proceedings are presently pending or threatened against
SUBRECIPIENT.
D. None of the provisions herein contravene or are in conflict with the authority under which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or
agreement of SUBRECIPIENT.
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments
hereunder, and has taken all necessary action to authorize such acceptance under the terms
and conditions of this Agreement.
F. None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any
character, except for current taxes not delinquent, except as shown in the financial
statements furnished by SUBRECIPIENT to CITY.
G. Each of these representations and warranties shall be continuing and shall be deemed to
have been repeated by the submission of each request for payment.
9. COVENANTS
A. During the period of time that payment may be made hereunder and so long as any
payments remain unliquidated, SUBRECIPIENT shall not, without the prior written
consent of the Community Development Administrator or his authorized representative:
1. Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the
assets of SUBRECIPIENT now owned or hereafter acquired by it, or permit any
pre-existing mortgages, liens, or other encumbrances to remain on, or attached to
any assets of SUBRECIPIENT which are allocated to the performance of this
Agreement and with respect to which CITY has ownership hereunder.
2. Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or
claims for money due or to become due.
3. Sell, convey, or lease all or substantial part of its assets.
4. Make any advance or loan to, or incur any liability for any other firm, person, entity
or corporation as guarantor, surety, or accommodation endorser.
5. Sell, donate, loan or transfer any equipment or item of personal property purchased
with funds paid to SUBRECIPIENT by CITY, unless CITY authorizes such
transfer.
B. SUBRECIPIENT agrees, upon written request by CITY, to require its employees to
attend training sessions sponsored by the Community Development Division.
10. ALLOWABLE COSTS
A. Costs shall be considered allowable only if incurred directly and specifically in the
performance of and in compliance with this Agreement and in conformance with the
standards and provisions of Exhibits A and C.
B. Approval of SUBRECIPIENT'S project budget, Exhibit C, does not constitute prior
written approval, even though certain items may appear herein. CITY'S prior written
authorization is required in order for the following to be considered allowable costs:
1. CITY shall not be obligated to any third parties, including any subrecipients of
SUBRECIPIENT, and CITY funds shall not be used to pay for any contract
service extending beyond the expiration of this Agreement.
2. Out of town travel.
3. Any alterations or relocation of the facilities on and in which the activities specified
in Exhibit A are conducted.
4. Any alterations, deletions or additions to the Personnel Schedule incorporated in
Exhibit C.
5. Costs or fees for temporary employees or services.
6. Any fees or payments for consultant services.
7. Fees for attending out of town meetings, seminars or conferences.
Written requests for prior approval are SUBRECIPIENT'S responsibility and shall be
made within sufficient time to permit a thorough review by CITY. SUBRECIPIENT
must obtain written approval by CITY prior to the commencement of procedures to solicit
or purchase services, equipment, or real or personal property. Any procurement or
purchase which may be approved under the terms of this Agreement must be conducted in
its entirety in accordance with the provisions of this Agreement.
C. Equipment purchased by SUBRECIPIENT will be affixed with an asset tag by a
Community Development representative and will remain in inventory for a period of five
(5) years. During inventory period the equipment, belonging to the Department of
Housing and Urban Development is to be used to carry out the proposed activities
described in the Statement of Work, Attachment A, and as such may not be sold, donated,
or destroyed. After the inventory period, ownership of the equipment will revert to the
SUBRECIPIENT with all rights thereof.
11. PROGRAM INCOME
A. For purposes of this Agreement, program income means earnings of SUBRECIPIENT
realized from activities resulting from this Agreement or from SUBRECIPIENT'S
management of funding provided or received hereunder. Such earnings include, but are
not limited to, income from interest, usage of rental or lease fees, income produced from
contract -supported services of individuals or employees or from the use or sale of
equipment or facilities of SUBRECIPIENT provided as a result of this Agreement, and
payments from clients or third parties for services rendered by SUBRECIPIENT under
this Agreement.
B. SUBRECIPIENT shall maintain records of the receipt and disposition of program income
in the same manner as required for other contract funds, and reported to CITY in the
format prescribed by CITY. CITY and SUBRECIPIENT agree, that any fees collected
for services performed by SUBRECIPIENT shall be used for payment of costs associated
with service provision. Revenue remaining after payment of all program expenses for
service provision shall be considered Program Income and shall be subject to all the
requirements -of this Agreement and the regulations found at CFR 24, Section 570.504.
C. SUBRECIPIENT shall include this Section in its entirety in all of its sub -contracts which
involve other income producing services or activities.
D. It is SUBRECIPIENT'S responsibility to obtain from CITY a prior determination as to
whether or not income arising directly or indirectly from this Agreement, or the
performance thereof, constitutes program income. SUBRECIPIENT is responsible to
CITY for the repayment of any and all amounts determined by CITY to be program
income, unless otherwise approved in writing by CITY.
12. MAINTENANCE OF RECORDS
A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate,
and complete disclosure of the status of funds received under this Agreement, in
compliance with the provisions of Exhibit B, attached hereto, and with any other
applicable Federal and State regulations establishing standards for financial management
including OMB circulars A-87, A-110, A-122 and A-133 as applicable; Title 24 CFR
Section 582 as it pertains to costs incurred, audits, program income, administration and
other activities and functions. SUBRECIPIENT'S record system shall contain sufficient
documentation to provide in detail full support and justification for each expenditure.
Nothing in this Section shall be construed to relieve SUBRECIPIENT of fiscal
accountability and liability under any other provision of this Agreement or any applicable
law. SUBRECIPIENT shall include the substance of this provision in all subcontracts.
B. SUBRECIPIENT agrees to retain all books, records, documents, reports and written
accounting procedures pertaining to the operation of programs and expenditures of funds
under this Agreement for five years after all funds have been expended.
C. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of
responsibility for retaining accurate and current records which clearly reflect the level and
benefit of services provided under this Agreement.
D. At any reasonable time and as often as CITY may deem necessary the SUBRECIPIENT
shall make available to CITY, the U. S. Department of Housing and Urban Development,
or any of their authorized representatives, all of its records and shall permit CITY, the U.
S. Department of Housing and Urban Development, or any of their authorized
representatives to audit, examine, make excerpts and copies of such records, and to
conduct audits of all contracts, invoices, materials, payrolls, records of personnel,
conditions or employment and all other data requested by said representatives.
13. REPORTS AND INFORMATION
At such times and in such form as CITY may require SUBRECIPIENT shall furnish
such statements, records, data and information as CITY may request and deem pertinent to
matters covered by this Agreement.
SUBRECIPIENT shall submit beneficiary and financial reports to the CITY, as
requested, at least once and not to exceed quarterly during the program year. The beneficiary
report shall detail client information, including race, income, female head of household and other
statistics required by the CITY. The financial report shall include information and data relative
to all programmatic and financial reporting as of the beginning date specified in Section 1 of this
Agreement. Beneficiary and financial reports shall be due to CITY within 15 working days after
request by CITY.
Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit a
copy of any audit conducted by independent examiners in accordance with Generally Accepted
Accounting Principles. If the SUBRECIPIENT receives more than $750,000 in federal
funding, the audit must be conducted in accordance with OMB Circular A-133 as applicable.
14. MONITORING AND EVALUATION
A. CITY shall perform on-site monitoring of SUBRECIPIENT'S performance under this
Agreement.
B. SUBRECIPIENT agrees that the CITY may carry out monitoring and evaluation
activities to ensure adherence by SUBRECIPIENT to the Statement of Work attached
hereto as Exhibit A, as well as other provisions of this Agreement.
C. SUBRECIPIENT agrees to cooperate fully with the CITY in the development,
implementation and maintenance of record-keeping systems and to provide data
determined by the CITY to be necessary for the CITY to effectively fulfill its monitoring
and evaluation responsibilities.
D. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay the
CITY in such monitoring and to designate one of its staff to coordinate the monitoring
process as requested by CITY staff.
E. After each official monitoring visit, the CITY shall provide the SUBRECIPIENT with a
written report of monitoring findings documenting findings and concerns that will require
a written response to the CITY. An acceptable response must be received by the CITY
within sixty (60) days from the SUBRECIPIENT'S receipt of the monitoring report or
audit review letter. Future contract payments can be withheld for the
SUBRECIPIENT'S failure to submit a response within sixty (60) days.
F. The SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by
any of the SUBRECIPIENT'S funding or regulatory bodies to the CITY within five
working days of receipt by the SUBRECIPIENT.
15. DIRECTOR'S MEETINGS
During the terms of this Agreement, at the request of the CITY, SUBRECIPIENT shall
cause to be delivered to the CITY copies of all notices of meetings of its Board of Directors,
setting forth the time and place thereof. Such notices, if so requested, shall be delivered to the
CITY in a timely manner to give adequate notice, and shall include an agenda and a brief
description of the matters to be discussed. SUBRECIPIENT understands and agrees that CITY
representatives shall be afforded access to all of the Board of Directors meetings.
Minutes of all meetings of the SUBRECIPIENT'S governing body shall be available,
and upon request, be provided to the CITY within ten days after Board approval.
16. INSURANCE
A. SUBRECIPIENT shall observe sound business practices with respect to providing such
bonding and insurance as would provide adequate coverage for services offered under
this Agreement.
B. The premises on and in which the activities described in Exhibit A are conducted, and
the employees conducting these activities, shall be covered by liability insurance,
commonly referred to as Owner/Tenant coverage with the CITY named as additional
insured. Upon request of the SUBRECIPIENT, the CITY may, at its sole discretion,
approve alternate insurance coverage arrangements.
C. SUBRECIPIENT will comply with applicable workers compensation statues and will
obtain employers liability coverage where available and other appropriate liability
coverage for program participants, if applicable.
D. SUBRECIPIENT will maintain adequate and continuous liability insurance on all
vehicles owned, leased or operated by SUBRECIPIENT. All employees of
SUBRECIPIENT who are required to drive a vehicle in the normal scope and course of
their employment must possess a valid Texas driver's license and automobile liability
insurance. Evidence of the employee's valid Texas driver's license and automobile
liability insurance. Evidence of the employee's current possession of a valid license and
insurance must be maintained on a current basis in SUBRECIPIENT'S files.
E. Actual losses not covered by insurance as required by this Section are not allowable
under this Agreement, and remain the sole responsibility of the SUBRECIPIENT.
F. The policy or policies of insurance shall contain a clause which requires that the CITY
and the SUBRECIPIENT be notified in writing of any cancellation or change in policy
at least thirty (30) days prior to such change or cancellation.
17. CIVIL RIGHTS/EQUAL OPPORTUNITY
A. SUBRECIPIENT shall comply with all applicable equal opportunity and affirmative
action laws or regulations. The SUBRECIPIENT shall not discriminate against any
employee or applicant for employment because of race, color, creed, religion, national
origin, gender, age or disability. The SUBRECIPIENT will take affirmative action to
insure that all employment practices are free from such discrimination. Such
employment practices include but are not limited to the following: hiring, upgrading,
demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of
pay or other forms of compensation and selection for training, including apprenticeship.
B. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and
Section 109 of Title I of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities
Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 and Executive
Order 11246 as amended by Executive Orders 11375 and 12086.
C. SUBRECIPIENT will furnish all information and reports requested by the CITY, and
will permit access to its books, records, and accounts for purposes of investigation to
ascertain compliance with local, state and Federal rules and regulations.
D. In the event of SUBRECIPIENT'S non-compliance with the non-discrimination
requirements, the CITY may cancel or terminate this Agreement in whole or in part, and
SUBRECIPIENT may be barred from further contracts with the CITY.
18. PERSONNEL POLICIES
Personnel policies shall be established by the SUBRECIPIENT and shall be available for
examination. Such personnel policies shall:
A. Be in writing and shall be approved by the governing body of the SUBRECIPIENT and
the CITY.
19. CONFLICT OF INTEREST
A. SUBRECIPIENT covenants that neither it nor any member of its governing body
presently has any interest, direct or indirect, which would conflict in any manner or
degree with the performance of services required to be performed under this Agreement.
SUBRECIPIENT further covenants that in the performance of this Agreement, no
person having such interest shall be employed or appointed as a member of its governing
body.
B. SUBRECIPIENT further covenants that no member of its governing body or its staff,
sub -recipients or employees shall possess any interest in or use his position for a purpose
that is or gives the appearance of being motivated by desire for private gain for himself or
others particularly those with which he has family, business, or other ties.
C. No officer, member, or employee of the CITY and no member of its governing body who
exercises any function or responsibilities in the review or approval of the undertaking or
carrying out of this Agreement shall participate in any decision relating to the Agreement
which affects his or her personal interest or the interest in any corporations, partnership,
or association in which he or she has a direct or indirect interest.
20. NEPOTISM
SUBRECIPIENT shall not employ in any paid capacity any person who is a member of
the immediate family of any person who is currently employed by SUBRECIPIENT, or is a
member of SUBRECIPIENT'S governing board. The term member of immediate family
includes wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle,
nephew, niece, step parent, step -child, half-brother and half-sister.
21. POLITICAL OR SECTARIAN ACTIVITY
A. Neither the funds advanced pursuant to this Agreement, nor any personnel which may be
employed by the SUBRECIPIENT with funds advanced pursuant to this Agreement
shall be in any way or to any extent engaged in any conduct or political activity in
contravention of Chapter 15 of Title 5 of the United States Code.
B. The SUBRECIPIENT agrees that none of the funds or services provided directly or
indirectly under this Agreement shall be used for any partisan political activity or to
further the election or defeat of any candidate for public office, or for publicity, lobbying
and/or propaganda purposes designed to support or defeat pending legislation.
Employees of the SUBRECIPIENT connected with any activity that is funded in whole
or in part by funds provided to SUBRECIPIENT under this Agreement may not under
the term of this Agreement:
Use their official position or influence to affect the outcome of an election or
nomination.
2. Solicit contributions for political purposes; or
3. Take an active part in political management or in political campaigns.
SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein
as Exhibit E and if necessary, the Disclosure of Lobbying Activities provided by the CITY.
22. PUBLICITY
A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities
conducted by SUBRECIPIENT under this Agreement. In any news release, sign,
brochure, or other advertising medium, disseminating information prepared or distributed
by or for SUBRECIPIENT, the advertising medium shall state that the U. S. Department
of Housing and Urban Development's Community Development Block Grant Program
funding through the City of Beaumont has made the project possible.
B. All published material and written reports submitted under this project must be originally
developed material unless otherwise specifically provided in this Agreement. When
material not originally developed is included in a report, the report shall identify the
source in the body of the report or by footnote. This provision is applicable when the
material is in a verbatim or extensive paraphrase format.
All published material submitted under this project shall include the following reference
on the front cover or title page:
This document is prepared in accordance with the City of
Beaumont's Community Development Block Grant Program, with
funding received from the United States Department of Housing
and Urban Development.
C. All reports, documents, studies, charts, schedules or other appended documentation to
any proposal, content of basic proposal, or contracts and any responses, inquires,
correspondence and related material submitted by SUBRECIPIENT.
23. CHANGES AND AMENDMENTS
A. Any alterations, additions or deletions to the terms of this Agreement shall be by written
amendment executed by both parties, except when the terms of this Agreement expressly
provide that another method shall be used.
B. SUBRECIPIENT may not make transfers between or among approved line items within
project budget categories set forth in Exhibit C without prior written approval of
CITY. SUBRECIPIENT shall request, in writing, the budget revision in a form
prescribed by CITY, and such request for revision shall not increase the total monetary
obligation of CITY under this Agreement. In addition, budget revisions cannot
significantly change the nature, intent or scope of the program funded under this
Agreement.
C. SUBRECIPIENT will submit revised budget and program information, whenever the
level of funding for SUBRECIPIENT or the program(s) described herein is altered
according to the total levels contained in any portion of Exhibit C.
D. It is understood and agreed by the parties hereto that changes in the State, Federal or local
laws or regulations pursuant hereto may occur during the term of this Agreement. Any
such modifications are to be automatically incorporated into this Agreement without
written amendment hereto, and shall become a part of the Agreement on the effective
date specified by the law or regulation.
E. CITY may, from time to time during the term of the Agreement, request changes in
Exhibit A, which may include an increase or decrease in the amount of
SUBRECIPIENT'S compensation. Such changes shall be incorporated in a written
amendment hereto, as provided in Subsection A of this Section.
F. Any alterations, deletion, or additions to the Contact Budget Detail incorporated in
Exhibit C shall require the prior written approval of CITY.
G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for
work performed under this Agreement at least thirty (30) calendar days in advance of the
change.
H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board
composition.
24. SUSPENSION OF FUNDING
Upon determination by CITY of SUBRECIPIENT'S failure to timely and properly perform
each of the requirements, time conditions and duties provided herein, the CITY, without limiting
any rights it may otherwise have, may, at its discretion, and upon ten working days written notice
to SUBRECIPIENT, withhold further payments to SUBRECIPIENT. Such notice may be
given by mail to the Executive Officer and the Board of Directors of SUBRECIPIENT. The
notice shall set forth the default or failure alleged, and the action required for cure.
The period of such suspension shall be of such duration as is appropriate to accomplish
corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the
suspension period, if CITY determines the default or deficiency has been satisfied,
SUBRECIPIENT may be restored to full compliance status and paid all eligible funds withheld
or impounded during the suspension period. If however, CITY determines that
SUBRECIPIENT has not come into compliance, the provisions of Section 25 may be
effectuated.
25. TERMINATION
A. CITY may terminate this Agreement for cause under any of the following reasons or for
other reasons not specifically enumerated in this paragraph.
1. SUBRECIPIENT'S failure to attain compliance during any prescribed period of
suspension as provided in Section 24.
2. SUBRECIPIENT'S failure to materially comply with any of the terms of this
Agreement.
3. SUBRECIPIENT'S violation of covenants, agreements or guarantees of this
Agreement.
4. Termination or reduction of funding by the United States Department of Housing
and Urban Development.
5. Finding by the CITY that SUBRECIPIENT
a. Is in such unsatisfactory financial condition as to endanger performance
under this Agreement.
b. has allocated inventory to this Agreement substantially exceeding
reasonable requirements;
C. is delinquent in payment of taxes, or of costs of performance of this
Agreement in the ordinary course of business.
6. Appointment of a trustee, receiver or liquidator for all or substantial part of
SUBRECIPIENT'S property, or institution of bankruptcy, reorganization,
rearrangement of or liquidation proceedings by or against SUBRECIPIENT.
7. SUBRECIPIENT'S inability to conform to changes required by Federal, State
and local laws or regulations as provided in Section 4, and Section 23 (D), of this
Agreement.
8. The commission of an act of bankruptcy.
9. SUBRECIPIENT'S violation of any law or regulation to which
SUBRECIPIENT is bound or shall be bound under the terms of the Agreement.
A. CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and
the effective date of termination. Simultaneous notice of pending termination may be
made to other funding sources specified in Exhibit C.
B. CITY may terminate this Agreement for convenience at any time. If CITY terminates
the Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed
the total of accrued expenditures as of the effective date of termination. In no event will
this compensation exceed an amount which bears the same ratio to the total compensation
as the services actually performed bears to the total services of SUBRECIPEINT covered
by the Agreement, less payments previously made.
C. SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to
CITY, if a termination of outside funding occurs upon which SUBRECIPIENT depends
for performance hereunder. SUBRECIPIENT may opt, within the limitations of this
Agreement, to seek an alternative funding source, with the approval of CITY, provided
the termination by the outside funding source was not occasioned by a breach of contract
as defined herein or as defined in a contract between SUBRECIPIENT and the funding
source in question.
SUBRECIPIENT may terminate this Agreement upon the dissolution of
SUBRECIPIENT'S organization not occasioned by a breach of this Agreement.
D. Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw or
otherwise terminate any outstanding orders or subcontracts, which relate to the
performance of this Agreement. CITY shall not be liable to SUBRECIPIENT or
SUBRECIPIENT'S creditors for any expenses, encumbrances or obligations whatsoever
incurred after the termination date listed on the notice to terminate referred to in this
paragraph.
E. Notwithstanding any exercise by CITY of its right of suspension or termination,
SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by
CITY by virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may
withhold any reimbursement to SUBRECIPIENT until such time as the exact amount of
damages due to CITY from SUBRECIPIENT is agreed upon or otherwise determined.
26. NOTIFICATION OF ACTION BROUGHT
In the event that any claim, demand, suit or other action is made or brought by any
person(s), firm, corporation or other entity against SUBRECIPIENT, SUBRECIPIENT
shall give written notice thereof to CITY within two working days after being notified of
such claim, demand, suit or other action. Such notice shall state the date and hour of
notification of any such claim, demand, suit or other action, the names and addresses of
the person(s), firm, corporation or other entity making such claim, or that instituted or
threatened to institute any type of action or proceeding, the basis of such claim, action or
proceeding, and the name of any person(s) against whom such claim is being made or
threatened. Such written notice shall be delivered either personally or by mail.
27. INDEMNIFICATION
A. It is expressly understood and agreed by both parties hereto that the CITY is contracting
with the SUBRECIPIENT as an independent SUBRECIPIENT and that as such,
SUBRECIPIENT shall save and hold CITY, its officers, agents and employees harmless
from all liability of any nature or kind, including costs and expenses for, or on account of,
any claims, audit exceptions, demands, suits or damages of any character whatsoever
resulting in whole or in part from the performance or omission of any employee, agent or
representative of SUBRECIPIENT.
B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless
CITY, its agents, employees, or SUBRECIPIENTs from any and all claims, suits,
causes of action, demands, damages, losses, attorney fees, expenses, and liability arising
out of the use of these contracted funds and program administration and implementation
except to the extent caused by the willful act or omission of CITY, its agents, employees,
or SUBRECIPIENTS.
28. NON -RELIGIOUS ACTIVITIES
The SUBRECIPIENT will provide all services under this Agreement in a manner that is
exclusively non -religious in nature and scope. There shall be no religious services, proselytizing,
instruction or any other religious preference, influence or discrimination in connection with
providing the services hereunder.
`3M0 11 MXIlil.-I
A. SUBRECIPIENT shall not transfer, pledge or otherwise assign this Agreement or any
interest therein, or any claim arising thereunder, to any party or parties, bank, trust
company or other financial institution without the prior written approval of CITY.
B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
remaining provisions shall remain in full force and effect and continue to conform to the
original intent of both parties hereto.
C. In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure
of CITY to insist in any one or more instances upon the terms and conditions of this
Agreement constitute or be construed in any way to be a waiver by CITY of any breach
of covenant or default which may then or subsequently be committed by
SUBRECIPIENT. Neither shall such payment, act, or omission in any manner impair or
prejudice any right, power, privilege, or remedy available to CITY to enforce its rights
hereunder, which rights, powers, privileges, or remedies are always specifically
preserved. No representative or agent of CITY may waive the effect of this provision.
D. This Agreement, together with referenced exhibits and attachments, constitutes the entire
agreement between the parties hereto, and any prior agreement, assertion, statement,
understanding or other commitment antecedent to this Agreement, whether written or
oral, shall have no force or effect whatsoever; nor shall an agreement, assertion,
statement, understanding, or other commitment occurring during the term of this
Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless
properly executed in writing, and if appropriate, recorded as an amendment of this
Agreement.
E. In the event any disagreement or dispute should arise between the parties hereto
pertaining to the interpretation or meaning of any part of this Agreement or its governing
rules, codes, laws, ordinances or regulations, CITY as the party ultimately responsible to
the U. S. Department of Housing and Urban Development for matters of compliance, will
have the final authority to render or to secure an interpretation.
F. For the purpose of this Agreement, all official communications and notices among the
parties shall be deemed made if sent postage paid to the parties and addresses set forth
below:
TO CITY:
TO SUBRECIPIENT:
Mr. Kyle Hayes Ms. Dena Gray Hughes
City Manager Executive Director
City of Beaumont Triangle Area Network
P. O. Box 3827 1495 N. 7t' Street
Beaumont, TX 77704 Beaumont, TX 77702
G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and
venue of any litigation concerning this Agreement shall be in a court competent
jurisdiction sitting in Jefferson County Texas.
IN WITNESS OF WHICH this Agreement has been executed on this the
of , 2017.
CITY OF BEAUMONT:
BY:
Kyle Hayes, City Manager
Triangle Area Network (TAN):
BY:
Date
ATTEST:
BY:
Tina Broussard, City Clerk
ATTEST:
BY:
day
EXHIBIT A
STATEMENT OF WORK
TAN, located at 1495 N. 7th Street, Beaumont, Texas 77702, shall use the Continuum of Care
awarded funds in the amount of ($146,744.00) to pay for administrative costs ($8,444.00), and
($138,300.00) for tenant based rental assistance, for (17) scattered site units which will provide
housing for clients that have been diagnosed and are living with HIV, as outlined the projected
budget.
SUBRECIPIENT shall provide to the City of Beaumont an itemized budget detailing the
expenditures and encumbrances. Reports will be due 90 days after execution of this agreement.
EXHIBIT B - 24 CFR PART 582
Codified Shelter Plus Care Program Regulation
502.200 Applicalion and grant award.
S+.0 is subject to the changes made by
the Homeless Definition Rule that is at
the end of this Rule.
PART SS2-SHELTER PLUS CARE
Subpart A -General
Sec.
582.1 Purpose and scope
582.5 Definitions..
Subpart B -Assistance Provided
582.100 Program component descriptions.
582.105 Rental assistance amounts and payrrnns.
582.110 Matching requirements.
582.115 limitations on assistance,
582.120 Consolidated plan.
Subpart C -Application and Grant Award
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24 CFR Ch. V (4-1-09 Edition)
Subpart D -Program Requirements
582.300 General op' -ration.
582.305 Housing quality siandards; rent
reasonableness,
581.310 Resident rent.
582,31.5 Occupancy/ agreement.
582.320 Terninabon d asdstarce 1r.,
participants,
582,325 Outreach activities.
582.330 Nondiscrimination and equal
opportunity requirements.
582.335 Displacement, relaation, and real
property acquisition.
582.310 Other Federal requirements.
Subpart 1= -Administration
582.400 Grant agreement. 582.405
Program changes. 582,910 Obligation and
deobligation of funds,
AUTHORITY: 42 U.S.0 3535(d) and 11403-
11407b.
SOURCE; •58 FR 13892, Mar. 15, 1993, unless
otherwise noted,
Subpart A -General
§ 582.1 Purpose and scope.
(a) General. The Shelter Plus Care program
(S+C) is authorized by title IV, subtitle F, of the
Stewart B. McKinney Homeless Assistance Act
(the McKinney Act) (12 U.S.C. 11403- 11407b).
S+C is designed to link rental assistance to
supportive services for hard -to -serve homeless
persons with disabilities (primarily those who
are seriously mentally III; have chronic problems
with alcohol, drugs, or both; or have acquired
Immunodeficiency syndrome (AIDS) and related
diseases) and their families, The .program.
provides grants to be used for rental assistance
for permanent housing for homeless persons
with disabilities, Rental assistance grants must
be matched in the.aggregate by supportive
services that are equal in.value to the amount
of rental assistance and appropriate to the
needs of the population to be served. Recipients
are chosen on -a competitive basis nationwide,
(b) Components. Rental assistance is
provided through four components described in
§ 582.100. Applicants may apply for assistance
under any one of the four components, or a
combination.
a.hud ov _snanol.hurl.rnv Page 5
§ 582.5 Definitions.
The terms Fair Market Rent (FMR), HUD,
Public Housing Agency (PHA), Indian Housing
Authority (IHA), and Secretary are defined in 24
CFR part 5.
As used in this part;
Acquired immunodeficiencysyndrome
(AIDS) and related diseases has the meaning
given in section 853 of the AIDS Housing
Opportunity Act (42 U.S. C. 12902)•
Applicant has the meaning given in section
462 of the McKinney Act (42 U.S.C. 11403g).
Eligible person means a homeless person
with disabilities (primarily persons who are
seriously mentally ill; have chronic problems
with alcohol, drugs, or both; or have AIDS and
related diseases) and, if also homeless, the
family of such a person. To be eligible for
assistance, persons must be very low income,
except that low-income individuals may be
assisted under the SRO component in
accordance with 24 CFR 813,105(b),
Homeless or homeless individual has the
meaning given in section 103 of the McKinney
Act (42 U.S.C. 11302).
Indian tribe has the meaning given in
section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302).
Low-income means an annual income not in
excess of 80 percent of the median income for
the area, as determined by HUD. HUD may
establish income limits higher or lower than BD
percent of the median income for the area on
the basis of its finding that such variations are
necessary because of the prevailing levels of
construction costs or unusually high or low
family incomes,
Nonprofit organization has the meaning
given in section 104 of the Cranston -Gonzalez
National Affordable Housing Act (42 U.S.C,
12704). The term nonprofit organization also
includes a community mental health center
established as a public nonprofit organization.
Participant means an eligible person who
has been selected to participate in S+C•
Person with disabilities means a household
composed of one or more persons at least one
of whom is an adult who has a disability.
(1) A person shall be considered to have L,
disability if such person has a physical, n,lental,
or eriotional impairment which is expected to
be of long -continued and indefinite duration;
substantially impedes his or her ability to live
independently; and is of such a nature that such
ability could be irrlproved by more suitable
housing conditions.
(2) A person will also be considered to
have a disability if he or she has a
developmental disability, which is a severe,
chronic disability that -
(i) Is attributable to a mental or physical
impairment or combination of mental and
physical impairments;
(ii) Is manifested before the person attains
age 22;
(iii) Is likely to continue indefinitely;
(iv) Results in substantial functional
limitations in three or more of the following
areas of major life activity;
(A) Self-care;
(B) Receptive and expressive language;
(C) Learning;
(D) Mobility;
(E) Self-direction;
(F) Capacity for independent living; and
(G) Economic self-sufficiency; and
(v) Reflects the person's need for a
combination and sequence of special,
interdisciplinary, or generic care, treatment, or
other services which are of lifelong or extended
duration and are individually planned and
coordinated.
(3) Notwithstanding the preceding
provisions of,this..definlbon, the.term person
with disabilities includes, except in the case of
the SRO component, two or more persons with
disabilities living together, one or more such
persons living with another person who is
determined to be important to their care or
.well-being, and the surviving member or
members of any household described in the first
sentence of this definition who were living, in a
unit assisted under this part, with the deceased
member of the household at the time of his or
her death, (In any event, with respect to the
surviving member or members of.a.household,
the right to rental assistance under this part will
terminate at the end of the grant period
aw,v.'.hud.cw e,91anni.hud.env Page 6
§ 562.100
under which the deceased mernber wa,- a
participanL)
Recipient means an applicant approved to
receive a S+C grant.
Seriously mentally ill has the meaning given
in section 962 of the McKinney Act (92 U.S.C.
I1903g),
Single room occupancy (SRO) housing
means a unit for occupancy by one person,
which need not but may contain food
preparation or sanitary facilities, or both.
Sponsor means a nonprofit organization
which owns or leases dwelling units and has
contracts with a recipient to make such units
available to eligible homeless persons and
receives rental assistance payments under the
SRA component.
State has the meaning given in section 462
of the McKinney Act (92 U.S.C. 11903g).
Supportive service provider, or service provider,
means a person or organization licensed or
otherwise qualified to provide supportive
services, either for profit or not for profit.
Supportive services means assistance that -
(1) Addresses the special needs of eligible
persons; and
(2) Provides appropriate services or assists
such persons in obtaining appropriate services,
including health care, mental health treatment,
alcohol and other substance abuse services,
child care services, case management services,
counseling, supervision, education, job training,
and other services essential for achieving and
maintaining independent living,
(Inpatient acute hospital care does not qualify
as a supportive service.),
Unit of general local government has the
meaning given in section 102 of the Housing
and Community Development Act of 1979 (92
U.S.C. 5302).
Very low-income means an annual income '
not in excess of 50 percent of the median
income for the area, as determined by HUD,
with adjustments for smaller and larger families,
HUD may establish income limits higher or lower
than 50 percent of the median income for the
area on the basis of its finding that such
variations are
24 CFR Ch, V (4-1-09 Edition)
necessary because of unusually higjh or low
fan -illy incomes,
161 rrt 511169, Septi 30,1990; 62 nt 13539, Mar. 21, 19971
Subpart B -Assistance Provided
§ 562.100 Program component descriptions.
(a) Tenant -based rental assistance (TTtA)•
Tenant -based rental assistance provides grants
for rental assistance which permit participants
to choose housing of an appropriate size in
which to reside. Participants retain the rental
assistance If they move. Where necessary to
facilitate the coordination of supportive services,
grant recipients may require participants to.kve-..
in a specific area for their entire period of
participation or in a specific structure for the
first year and in a specific area for the
remainder of their period of participation.
Recipients may not define the area in a way
that violates the Fair Housing Act or the
Rehabilitation Act of 1973. The term of the
grant between HUD and the grant recipient for
TRA is five years.
(b) Project -based rental assistance (PRA).
Project -based rental assistance provides grants
for rental assistance to the owner of an existing
structure, where the owner agrees to lease the
subsidized units to participants. Participants do
not retain rental assistance if they move. Rental
subsidies are provided to the owner for a period
of either five or ten years, To qualify for ten
years of rental.subsidies,.the owner must
complete at least $3,000 of eligible
rehabilitation for each unit (including the unit's
prorated share of work to be accompLished on
common areas or systems), to make the
structure decent, safe and sanitary. This
rehabilitation must be completed with in 12
months of the.grant award.
(c) Sponsor -based rental assistance (SRA),
Sponsor -based rental assistance provides grants
for rental assistance through contracts between
the grant recipient and sponsor organizations. A
sponsor may be a private, nonproflt
organization ora communih/ mental health
agency established as a public nonprofit
organization, Participants reside in housing
owned or leased by
:nanol.hud.nnv Paige 7.
the sponsor. The terns of the grant belween
HUD and the grant recipient for SRN is five
years.
(d) Moderate rehabilitation for single room,
occupancy dwellings (SRO), (1) The SRO
corponent provides grant: for rental assistance
in connection with the moderate rehabilitation
of single room occupancy housing units.
Resources to initially fund the cost of
rehabilitating the dwellings must be obtained
from other sources, However, the rental
assistance covers operating expenses of the
rehabilitated SRO units occupied by homeless
persons, including debt service to retire the cost
of the moderate rehabilitation over a ten-year
period.
(2) SRO housing must be in need of
moderate rehabilitation and must meet the
requirements of 24 CFR 882.803(a), Costs
associated with rehabilitation of common areas
may be included in the calculation of the cost
for assisted units based on the proportion of the
number of units to be assisted under this part to
the total number of units.
(3) SRO assistance may also be used for
efficiency units selected for rehabilitation under
this program, but the gross rent (contract rent
plus any utility allowance) for those units will be
no higher than for SRO units (i,e,, 75 percent of
the 0 -bedroom Moderate Rehabilitation Fair
Market Rent),
(4) 'The requirements regarding
maintenance, operation, and inspections
described in 24 CFR 882,806(b)(4) and
882.808(n) must be met,
(5) Governing regulations. Except.where
there is a conf';ict with any requirement under
this part or where spedfically provided, the SRO
component will be governed by the regulations
set forth in 24 CFR part 882, subpart H.
§ 582.105 Rental assistance amounts and
payments,
(a) Eligible activity, S+C grants may be
used for providing rental assistance for housing
occupied by participants in the program and
administrative costs as provided for in
paragraph (e) of this section, except that the
housing may not be currently receiving Federal
funding for rental assistance or operating costs
under other HUD programs. Recipients may
design a housing
prograrn that includes a range of housing types
with differing levels of supportive services,
Rental assistance may include security deposiCs
on units in an amount up to one n-ronth's rent.
(b) Amount of the grant. The amount of
the grant is based on the number and size of
units proposed by the applicant to be assisted
over the grant period, The grant: amouni: is
calculated by multiplying the number of units
proposed times the applicable Fair Market Rent
(FMR) of each unit times the term of the grant,
(c) Payment of grant. (1) The grant
amount will be reserved for rental assistance
over the grant period, An applicant's grant
request is an estimate of the amount needed for
rental assistance. Recipients will make draws ,
from the reserved amount to pay the actual
costs of rental assistance for program
participants. For TRA, on demonstration of
need, up to 25 percent of the total rental
assistance awarded may be spent in any one of
the five years, or a higher percentage if
approved by HUD, where the applicant provides
evidence satisfactory to HUD that it is financially
committed to providing the housing assistance
described in the application for the full five-year
period.
(2) A recipient must serve at least as many
participants as shown in Its application. Where
the grant amount reserved for rental assistance
over the grant period exceeds the amount that
will be needed to pay the actual costs of rental
assistance, due to such factor as contract rents
being lower than FMRs and participants are
being able to pay a portion of the rent,
recipients may use the remaining funds for the
costs of administering the housingassistance,
as described in paragraph (e) of this section, for
damage to property, as described in paragraph
(f) of this section, for covering the costs of rent
increases, or for serving a great number of
participants,
(d) Vacancies, (1) If a unit assisted under
this part is vacated before the expiration of the
occupancy agreement described in § 582.315 of
this part, the assistance for the unit may
continue for a maximum of 30 days from the
end of the month in which the unit was vacated,
unless occupied by anothei eligible person. No
additional assistance
wlvv..hud.ernv. esnannl.hud.env Page E
§ 562.110
will be paid until the unil is occupier.[ by anotfrer
eligible person.
(2) As used in this paragraph (d), the term
"vacate" does not include brief periods of
inpatient care, not to exceed 90 days for each
occurrence.
(e) Administrative costs, (1) Up to eight
percent of the grant amount may be used to
pay the costs of administering the housing
assistance. Recipients may contract with
another entity approved by HUD to administer
the housing assistance.
(2) Eligible administrative activities include
processing rental payments to landlords,
examining participant income and family
composition, providing housing information and
assistance, inspecting units for compliance with
housing quality standards, and receiving into
the program new participants. This
administrative allowance does not include the
cost of administering the supportive services or
the grant (e.g., costs of preparing the
application, reports or audits required by HUD),
which are not eligible activities under a S+C
grant.
(f) Property damage. Recipients may use
grant funds In an amount up to one month's
rent to pay for any damage to housing due to
the action of a participant.
[58 FR 13892, Mar. 15, 1993; as amended at 61 FR 51170, Sep:. 30,
19 961
§ 582.110 Matching requirements,
(a).Matching rental assistance with
supportive services, (1) To qualify for rental
assistance grants, an .applicant must certify that
It w111 provide or ensure the provision of
supportive services, including funding the
services Itself If the planned resources do not
become.available for any reason, appropriate to
` the needs of the population being served, and
at least equal in value to the aggregate amount
of rental assistance funded by HUD. The .
supportive services may be newly created for
the program or already In operation, and may
be provided or funded by other. Federal, State,
local, or private programs In accordance with .12.
U.S.C. 11403b. This statute provides that a
recipient may use funds from any source,
including any other Federal source (but
excluding the specific statutory subtitle from
which S+C funds are provided), as well as State,
local, and private sources, provided that funds
24 CFR Ch. V (4-1-09 Edition)
from the other source are not statutorily
prohibited to be used as a match.
(2) Only services that are provided after
the execution of the gran[ agreement may
count toward the match.
(3) It is the responsibility of Idle recipient to
ensure that any funds or service!: used to satisfy
the matching requirements of this section are
eligible under the laws governing the funds or
services to be used as matching funds or•
services for a grant awarded under this
program.
(b) Availability to participants. Recipients
must give reasonable assurances that
supportive services will be available to
participants'for the entire*term of the rental ...
assistance. The value of the services provided to
a participant, however, does not have to equal
the amount of rental assistance provided that
participant, nor does the value have to be equal
to the amount of rental assistance orn a year-
to-year basis,
(c) Calculating the value of supportive
services. In calculating the amount of the
matching supportive services, applicants may
count:
(1) Salaries paid to staff of the recipient to
provide supportive services to S+C participants;
(2) The value of supportive services
provided by other persons or organizations to
S+C participants;
(3) The value of time and services
contributed by volunteers at the rate of $10.00
an hour, except for donated professional
services which maybe counted at the
customary charge for the service provided
(prWesslonal services are services ordinarily
performed by donors for payment, such as the
services of health professionals, that are
equivalent to the services they provide in their
occupations);
(4) The value of any lease on a building
used for the provision of supportive services,
provided the value included in the match is no
more than the prorated share used for the
program; and
(5) The cost of outreach activities, as
described in § 582.325(a) of this part.
[58 FR 13892, Mar, 15, 1993, as amended at 73 FR 75325, Dec. 11;
2.0083
v, ww.11ud.rrnrn=anol.hud.eov Parr 9
Dfc. of Asst, Secy,, Comm. Planning, Develop., HUD
§ 5S2.115 Limitations on assistance.
(a) Current occupants. Current occupants
of the real property are not eligible for
assistance under this part. However, as
described in § 5823035, persons displaced as a
direct result of acquisition, rehabilitation, or
demolition fora project under the S+C program
are eligible for and must be provided relocation
assistance at Uniform Relocation Act levels,
(b) Amount of assistance provided within a
Jurisdiction. HUD will limit the amount of
assistance provided within the jurisdiction of
any one unit of local government to no more
than 10 percent of the amount available,
(c) Faith -based activities. (1) Organizations
that are religious or faith -based are eligible, on
the same basis as any other organization, to
participate in the S+C program. Neither the
Federal government nor a State or local
government receiving funds under S+C
programs shall discriminate against an
organization on the basis of the organization's
religious character or affiliation,
(2) Organizations that are directly funded
under the S+C program may not engage in
inherently religious activities, such as worship,
religious instruction, or proselytization as part of
the programs or services funded under this part.
-If an organization conducts such activities, the
activities must be offered separately, in time or
location, from the programs or services funded
under this part, and participation must be
voluntary for the beneficiaries of the HUD -
funded programs or services,
(3) A religious organization that
participates in the S+C program will retain its
independence from Federal, State, and local
governments, and may continue to cant' out its
mission, including the definition, practice and
expression of -its religious beliefs, provided that
it does not use direct S+C funds to support any
inherently religious activities, such as worship,
religious instruction, or proselytization. Among
other things, faith -based organizations may use
space in their facilities to provide S+C-funded
services, without removing religious art, icons,
scriptures, or other religious symbols. In
addition, an S+C-funded religious organization
retains its authority over
§ 5S2.120
I[!. inlernal governance, and it: may retain
religious term: in its organization's narne, select
its board members on a religious basis, and
Include religious references in il_(s organization's
mission staten-ienL, and other governing
clocualents.
(,1) An organization that participates in the
S+C program shall not, in providing program
assistance, discriminate against a program
beneficiary or prospective program beneficiary
on the basis of religion or religious belief.
(5) If a State or local.government
voluntarily contributes Its own funds to
supplement federally funded activities, the State
or local government has the. option to segregate
the Federal funds or commingle them. However,
if the funds are commingled, this section applies
to all of the commingled funds.
(d) Maintenance of effort. No assistance
received under this part (or any State or local
government funds used to supplement this
assistance) may be used to replace funds
provided under any State or local government
assistance programs previously used, or
designated for use, to assist persons with
disabilities, homeless persons, or homeless
persons with disabilities,
[58 FR 13692, Mar, 15,1993, as amended at 68 FR 56407, Sept. 30,
2003]
§ 592.12D Consolidated plan.
(a) Applicants that are States or units of
general local government, The applicant must
have a HUD -approved complete or abbreviated
consolidated plan, in accordance with 24 CFR
part 91, and must submit a certJfication that the
application for funding is consistent with .the
HUD -approved consolidated plan. Funded
applicants must certify in a grant agreement
that they are'following the HUD -approved
consolidated plan. If the applicant is a State,
and the project will be located in a unit of
general local government that is required to
have, or has, a complete consolidated plan, or
that is applying for Shelter Plus Care assistance
under the same Notice of Fund Availability
(NOFA) and will have an abbreviated
consolidated plan with respect to that
application, the State also must submit a .
certification by the unit of general local
government that the State's application is
consistent with the unit
N wiz-.hud.ern e<pmiol.hud.n_rn' Page 10
§ 562.200
of general local government's HUD --approved
consolidated plan.
(b) Applicants that are not States or units
of general local government. the applicant must
submit a certification by the jurisdiction in which
the proposed project will be located that the
J urisdiction is following its HUD -approved
consolidated plan and the applicant's application
for funding is consistent with thejurisdiction's
HUD -approved consolidated plan. The
certification must be made by the unit of,
general local government or the State, in
accordance with the consistency certification
provisions of the consolidated plan regulations,
24 CFR part 91, subpart F.
(c) . Indian tribes and the Insular Areas of
Guam, the U.S. Virgin Islands, American Samoa,
and --the Northern Mariana Islands. These
entities are not required to have a consolidated
plan or to make consolidated plan certifications.
An application by an Indian tribe or other
applicant for a project that will be located on a
reservation of an Indian tribe will not require a
certification by the tribe or the State. However,
where an Indian tribe is the applicant for a
project that will not be located on a reservation,
the requirement for a certification under
paragraph (b) of this section will apply.
(d) Timing of consolidated plan certification
submissions. Unless otherwise set forth in the
NOFA, the required certification that the
application for funding is consistent with the
HUD -approved consolidated plan must be
submitted by the funding application submission
deadline announced in the NOFA.
[60 FR 16379, Mar. 30, 1995]
Subpart C -Application and Grant
Award
§ 582.200 Application and grant award.
(a) Review. When funds are made
available for assistance, HUD will publish a
notice of fund availability in'the FEDERAL
REGISTER in accordance with the requirements
of 24 CFR part 4. Applications will be reviewed
and screened in accordance with the guidelines,
rating criteria and procedures published in the
notice.
24 CFR Ch. V (4-1-09 Edition)
(b) Rating criteria. HUD will award funds
based on the criteria specified in section
155(x)(1) through (8) of the McKinney Act (42
U.S.C. 11903d(1)- 11403d(8)) and on the
following criteria authorized by section
155(a)(9) of the McKinney Act (42 U.S.C.
11403c1(9)):
(1) The extent to which the applicant has
demonstrated coordination with other Federal,
State, local, private and other entities serving
homeless persons in the planning and operation
of the project, to the extent practicable;
(2) Extent to which the project targets
homeless persons living in emergency shelters,
supportive housing for homeless persons, or in
places not designed for, or ordinarily used as, a.._
regular sleeping accommodation for human
beings;
(3) Quality of the project; and
(4) Extent to which the program will serve
homeless persons who are seriously mentally ill,
have chronic alcohol and/or drug abuse
problems, or have AIDS and related diseases.
(App v> ed by the office of Managernertl and Budget under control
number 2506-0116)
[61 FR 51170, Sept. 30, 19961
§ 582.230 Environmental review.
. (a) Activities under this part are subject to
HUD environmental regulations in part 58 of this
title, except that HUD will perform an
environmental review in accordance with part
50 of this title prior to Its approval of any
conditionally selected applications from PHAs for
Fiscal Year 2000 and prior years for other than
.the•SRO component. For activities under a grant
to a PHA that.generally would be subject to
review under part 58, HUD may make a finding
in accordance with § 58.11(d) and may itself
perform the environmental review under the
provisions of part 50 of this title If the recipient
PHA objects in writing to the responsible entity's
performing the review under part 58. .
Irrespective of whether the responsible entity in
accord with part 58 (or HUD in accord with part
50) performs the environmental review, the
recipient shall supply alf available, relevant
information necessary for the responsible entity
(or HUD, if applicable) to perform for each
property any environmental review required by
this part.
u�a�;.hud.env nnrutol.hud.eov Pnoc i 1
Ofc. of Asst. Secy., Comrn, Planning, Develop., HUD
The recipient also shall carry out mitigating
n-reasures required by the responsible entity (or
HUD, if applicable) or select alternate eligible
property. HUD may eliminate from consideration
any application that would require an
Environmental Impact Statement (EIS).
(b) The recipient, its project partners and
their contractors may not acquire, rehabilitate,
convert:, lease, repair, dispose of, demolish, or
construct properly for a project under this part,
or commit or expend HUD or local funds for
such eligible activities under this part, until the
responsible entity (as defined in § 58.2 of this
title) has completed the environmental review
procedures required by part 58 and the
environmental certification and RROF have been
approved or HUD has performed an
environmental review under part 50 and the
recipient has received HUD approval of the
property, HUD will not release grant funds If the
recipient or any other party commits grant
funds (i.e., incurs any costs or expenditures to
be paid or reimbursed with such funds) before
the recipient submits and HUD approves Its
RROF (where such submission is required),
[69 FR 56130, Sept. 29, 20031
Subpart D -Program Requirements
§ 582.3D0 General operation,
(a) Participation of homeless individuals.
(1) Each recipient must provide for the
consultation and participation of not less than
one homeless individual or formerly homeless
Individual on .the board of directors or other
equivalerit policy-making entity of the recipient,
to the extent that the entity considers and
makes policies and decisions regarding any
housing assisted under this part or services for
the participants. This requirement is waived if
the applicant is unable to meet the requirement
and presents a plan, which HUD approves, to
otherwise consult with homeless or formerly
homeless individuals in considering and making
such policies and decisions. Participation by
such an Individual -who also is a participant
under the program does not constitute a conflict
of interest under § 582.390(b) of this part.
4 562.305
(2) To the inaxirrrum extent practicable,
each recipient rrjust involve homeles ; individuals
and families, through employment, volunteer
services, or otherwise, in constructing or
rehabilitating housing assisted under this part
and in providing supportive services required
under § 582.215 of this part.
(b) Ongoing assessment of housing and
supportive services. Each recipient of assistance
must conduct an ongoing assessment of the
housing assistance and supportive services
required by the participants, and make
adjustments as appropriate. .
(c) Adequate supportive services. Each
recipient must -assure that adequate supportive
services are available.to partidpants .in the.. _, .
program.
(d) Records and reports. (1) Each recipient
must keep any records and, within the
timeframe required, make any reports (including
those pertaining to race, ethnicity, gender, and
disability status data) that HUD may require.
(2) Each recipient must keep on file, and
make available to the public on request, a
description of the procedures used to select
sponsors under the SRA component and
buildings under the SRO, SRA, and PRA
components.
(3) Each recipient must develop, and make
I vailable to the public upon request, Its
procedures for managing the rental housing
assistance funds provided by HUD.'At a
minimum, such procedures must describe how
units will be identified and selected; how the
responsibility for inspections will be handled;
Ahe.process..for.dedding'which unit participant
will occupy; how participants will be placed in,.
or assisted in finding appropriate housing; how
rent calculations will be made and the amount
of rental assistance payments determined; and
what safeguards will be used to prevent the
misuse of funds.
(Approved by the Otice of Managenrrl and Wbge unciae contra'
number 250G011Q)
[58 FR 13B92, Mar, 15, 1993, as amended at 61 FR 51171, Sept. 30,
1996)
§ 582.305 Housing quality standards;
rent reasonableness,
(a) Housing quality standards. Housing
assisted under this part must meet the
v.�a�x.hud.eov esnanol.hud.eo%
Page 12
§ 582.310
applicable housing quality standards (HQS)
under § 982.401 of this title -except thal §
9132.401(j) of this title does not apply and
instead part 35, subparts A, 8, K and R of this
title apply -and, for SRO under c 1382,803(b) of
this tilde. Before any assistance will be provided
on behalf of a participant, the recipient, or
another entity acting on behalf of the recipient
(other than the owner of the housing), m usL
physically inspect each unit to assure that the
unit meets the HQS. Assistance will not: be
provided for units that fall to meet the HQS,
unless the owner corrects any deficiencies
within 30 days from the date of the lease
agreement and the recipient verifies that all
deficiencies have been corrected. Recipients
must also inspect all units at least annually
during the grant period to ensure that the units
continue to meet the HQS.
(b) Rent reasonableness. HUD will .only
provide assistance for a unit for which the rent
is reasonable, For TRA, PRA, and SRA, It is the
responsibility of the recipient to determine
whether the rent charged for the unit receiving
rental assistance is reasonable in relation to
rents being charged for comparable unassisted
units, taking into account the location, size,
type, quality, amenities, facilities, and
management and maintenance of each unit, as
well as not in excess of rents currently being
charged by the same owner for comparable
unassisted units, For SRO, rents -are calculated
in accordance with 24 CFR 882,805(g),
[58 FR 13892, Mar. 15, 1993, as armrxiLd at 61 FR 51171, sept. 30,
1996; 64 FR 50226, Sept. 1.5, 1999]
§ 582.310 Resident rent,
(a) Amount of rent. Each participant must
pay rent in accordance with section 3(a)(1) of
the U.S. Housing Act of. 1937 (42 U.S, C,
1437a(a)(1)), except that in determining the
rent of a person occupying an intermediate care
facility assisted under title XI>; of the Social
Security Act, the gross income of this person is
the same as if the person were being assisted
under title XVI of the Social Security Act.
(b). Calculating income, (1) Income of
participants must be calculated in accordance
with 24 CFR 5.609 and 24 CFR 5.611(a),
(2) Recipients must examine a participant's
24 CFR Ch. V (4-1-09 Edition)
income initially, and at least annually thereafter,
to determine the amounl. of rent. payable by the
participant. AdjustmcnLs to u participant's rental
payment must be made as necessary.
(3) As a condition of participation in the
program, each participant must agree to supply
the information or documentation necessary to
verify the participant's income, Participants must
provide the recipient Information at any time
regarding changes in income or other -
circumstances that may result in changes to a
participant's rental payment.
[66 FR G225, Jan. 19, 2001]
§ 582.315 Occupancy agreements:
(a) Initial occupancy agreement..
Participants must enter into an occupancy
agreement for a term of at least one month.
The occupancy agreement must be
automatically renewable upon expiration, except
on prior notice by either party,
(b) Terms of agreement, In addition to
standard lease provisions, the occupancy
agreement may also include a provision
requiring the participant to take part in the
supportive services provided through the
program as. a condition of continued occupancy,
§ 582.320 Termination of assistance to
Participants,
(a) Termination of assistance, The recipient
may terminate assistance .to.a participant who
violates program requirements or conditions of
occupancy, Recipients must exercise judgment ..
and examine all extenuating circumstances in
determining when violations are serious enough
to warrant termination, so that a participant's
assistance is terminated only in the most severe
.cases, Recipients are not prohibited from
resuming assistance to a participant whose
assistance has been terminated,
(b) Due process. In terminating assistance
to a participant, the recipient must provide a
formal process that recognizes the rights of
individuals receiving assistance to due process
of law, This process, at a minimum, must
consist of;
v.w.,v ,.hudx0% aTRJ)01,hud.!20V Page 13
Ofc. of Asst. Secy., Comm. Planning, Develop., HUD
(1) Written notice-' to Lhe parLicil_,anf,
containing a clear statement of the reasons for
termination;
(2) A review of the decision, in which the
participant is given the opportunity to present
written or oral objections before a person other
than the person (or a subordinate of that
person) who made or approved the termination
decision; and
(3) Prompt written notice of the final
decision to the participant.
§ 582.325 outreach activities.
Recipients must use their best efforts to
ensure that eligible hard -to -reach persons are
served by S+C. Recipients are expected'to make
sustained efforts to engage eligible persons so
that they may be brought into the program.
Outreach should be primarily directed toward
eligible persons who have a nighttime residence
that is an emergency shelter or a public or
private place not designed for, or ordinarily
used as, a regular sleeping accommodation for
human beings (e.g., persons living in cars,
streets, and parks). Outreach activities are
considered to be a supportive'service, and the
value of such activities that occur after the
execution of the grant agreement may be
included in meeting the matching requirement.
§ 582.330 Nondiscrimination and equal
opportunity requirements.
(a) General. Recipients may establish a
preference as part of their admissions
procedures for one or more of the statutorily
'targeted populations (i.e., seriously mentally III,
alcohol or substance abusers, or persons with
AIDS and related diseases). However, other
eligible disabled homeless persons must be
considered .for housing designed for the target
population unless the recipient can demonstrate
that there'is sufficient demand by the target
population for the units, and other eligible
disabled homeless'persons would not benefit
from the primary supportive services provided.
(b) Compliance with requirements. (1) In
addition to the nondiscrimination and equal
opportunity requirements set forth in 24 CFR
part 5, recipients serving,a designated
population of
%;1V,11A.1ud.erry
§ 5S2.330
honrreles., persons must, within the, designated
population, comply with tiu: prol ribitions against
discrimination against: handicapped individuals
under section 50.0, of Lhc Rehabilitation Act of
1973 (19 U.S.C. 794) and implementing
regulations at 41 CFR chapter 60-7-11.
(2) The nondiscrimination and equal
opportunity requirements set forth at part 5 of
this title are modified as follows:
(i) The Indian Civil Rights Act (25
U.S.C. 1301 el seq.) applies to tribes .when they
exercise their powers of self-government, and
to IHAs when established by the exercise of
such powers. When an IHA is established under
State law, the applicability of the Indian Civil
Rights Act will be determined on a case-by-case
basis. Projects subject to the Indian Civil Rights
Act must be developed and operated in
compliance with its provisions and all
implementing HUD requirements, instead of title
VI and the Fair Housing Act and their
implementing regulations.
(ii) [Reserved]
(c) Affirmative outreach.. (1) If the
procedures that the recipient intends to use to
make known the availability of the program are
unlikely to reach persons of any particular race,
color, religion, sex, age, national origin, familial
status, or handicap who may qualify for
assistance, the recipient must establish
additional procedures that will ensure that
interested persons can obtain 'information
concerning the assistance.
(2) The recipient must adopt procedures to
make available information on the existence and
locations of fadllties and services that are
accessible to persons with a handicap and
maintain evidence of implementation of the
procedures.
(d) The accessibility requirements,
reasonable modification, and accommodation
requirements of the Fair Housing Act and of
section 504 of the Rehabilitation Act of 1973, as
amended.
f50 FR 13892, Mar. 15,1993, as arrr_nded at 61 FR 5210, Feb. 9,
1996]
nano!.huc.eON
Page N
§ 582.335
582.335 Displacement, reloaition, and
real property acquisition.
(a) Minimizing displacement, Consistent
witi-r the other goals and ob'jectives of this part,
recipient.; must assure that they have Laken all .
reasonable steps to minimize the displacen'rerll
of persons (families, individuals, businesses,
nonprofit or_ganlzabons, and farms) as a result
of supportive housing assisted under this part.
(b) Relocation assistance for displaced
persons. A displaced person (defined in
paragraph (f) of this section) must be provided
relocation assistance at the levels described in,
and in accordance with, the requirements of the
Uniform Relocation -Assistance and Real Prop --Ml
Acquisition Policies Act of 1970 (URA) (42 U.S:C.
4601-4655) and implementing regulations at 49
CFR part 24.
(c) Real property acquisition requirements,
The acquisition of real property for supportive
housing is subject to the URA and the
requirements described in 49 CFR part 24,
subpart B.
(d) Responsibility of recipient. (1) The
recipient must certify (i,e., provide assurance of
compliance) that It will comply with the URA,
the regulations at 49 CFR part 24, and the
requirements of this section, and must ensure
such compliance notwithstanding any third
party's contractual obligation to the recipient to
comply with these provisions.
(2) The cost of required relocation
assistance is an eligible project cost In the same
manner and to the same extent as other project
costs. Such costs also may be paid for with local
public funds or funds available from other.
sources.
(3) The recipient must maintain records in
sufficient detall to demonstrate compliance with
provisions of this section,
(e) Appeals. A person who disagrees with
the recipient's determination concerning
whether the person qualifies as a "displaced
person," or the amount of relocation assistance
for which the person is eligible, may file a
written appeal of that determination with the
recipient. A low-income person who is
dissatisfied with the recipient's determination on
his or her appeal may submit a written request
for reviev✓ of that determination to the HUD
field office.
24 CFR Ch, V (4-1-09 Edition)
(f) Crefinitiorr of displaced person. (1) For
purposes of this section, the term "displaced
person" aieans a i.-)erson (family, individual,
busiriess, nonprofit organization, or farm) that
n -roves from real property, or moves personal
property from real property permanently as a
diced: result of acquisition, rehabilitation, or
den-rolition for supportive housing project
assisted under this pari:, The term "displaced
person" includes, but may not be limited to:
(i) A person that moves permanently from
the real property after the property owner (or
person in control of the site) issues a vacate
notice or refuses to renew an expiring lease, if
the move occurs on or after:
(A) The date that the recipient submits to
HUD an application for assistance that is later
approved and funded, If the recipient has
control of the project site; or
(B) The date that the recipient obtains
control of the project site, If such control is
obtained after the submission of the application
to HUD,
(ii) Any person, including a person who
moves before the date described in paragraph
(f)(1)(i) of this section, If the recipient or HUD
determines that the displacement resulted
directly from acquisition, rehabilitation, or
demolition for the assisted project.
(iii) A tenant -occupant of a dwelling unit
who moves permanently from the
building/complex, on or after the date of the
"initiation of negotiations" (see paragraph (g) of
this section) if the move occurs before the
tenant has been provided written notice offering
him or her the.opportunity to lease and occupy
a suitable, decent, safe and sanitary dwelling in
the same building/ complex, under reasonable
terms and conditions, upon completion of.the
project. Such reasonable terms and conditions
must include a monthly rent and estimated
average monthly utility costs that do not exceed
the greater of:
(A) The tenant's monthly rent before the
initiation of negotiations and estimated average
utility costs, or
(B) 30 percent of gross household income,
If the initial rent is at or near the maximum,
there must be a reasonable
basis for concluding at the time
v. w.hud.C,rn esnanOHIL 20\ Page IS
Ofc. of Asst. Secy,, Comm. Planning, Develop., HUD
tale pl'QjecL IS Inillal:ed thal: future rent II'ICI"e�se5
will be modest
(iv) A tenantof a dwelling who is required
to relocate temporarily, but does not return to
the building/complex, if either;
(A) A tenant is not offered payn lenl: for all
reasonable out-of-pocket expenses incurred in
conrlecLion with the temporary relocation, or
(B) Other conditions of the temporary
relocation are not reasonable.
(v) A tenant of a dwelling who moves from
the building/complex permanently after lie of-
she
rshe has been required to move to another unit
in the same building/complex,, if either:
(A) The tenant is not offered
reimbursement for all reasonable out-of-pocket
expenses incurred in connection with the move;
or
( B) Other conditions of the move are not
reasonable,
(2) Notwithstanding the provisions of
paragraph (f)(1) of this section, a person does
not qualify as a "displaced person" (and is not
eligible for relocation assistance under the URA
or this section), If:
(i) The person has been evicted for serious
or repeated violation of the terms and
conditions of the lease or occupancy agreement,
violation of applicable Federal, State, or local or
tribal law, or other good cause, and HUD
determines that the eviction was not undertaken
for the purpose of evading the obligation to
provide relocation assistance;
(ii) The person moved into the property
after the submission of the application and,
before•signing'a lease and commencing
occupancy, was provided written notice of the
project, Its possible impact on the person (e.g,,
the person may be displaced, temporarily
relocated, or suffer a rent increase) and the fact
that the person would not qualify as a
"displaced person" (or for an), assistance
provided under this section), if the project is
approved;
(iii) The person is ineligible under 49 CFR
24.2(g)(2); or
(iv) HUD determines that the person was
not displaced as a direct result of acquisition,
rehabilitation, or demolition for the project.
(3) The recipient may request, at any time,
HUD's determination of whether
§ 582.34D
c, displacement is or would be covered under
Ellis section.
(g) Definition of initiation of negotiations.
For purposes of determining the formula for
computing the replacement housing assistance
to be provided to a residential tenant displaced
as a direct resull of privately undertaken
rehabilitation, demolition, or acquisition of the
real property, the term "Initiation Of
negotiations" means the execution of the
agreement between the recipient and HUD, or
selection of the project site, if later.
§ 582.34D Other Federal requirements.
In addition to the Federal requirements set forth
in 24 CFR part 5, the following req uirements
apply to this program:
(a) OMB Circulars,1 (1) The policies,
guidelines, and requirements of OMB Circular
No. A-87 (Cost Principles Applicable to Grants,
Contracts and Other Agreements with State and
Local Governments) and 24 CFR part 85 apply
to the acceptance and use of assistance under
the program by governmental entities, and OlvlB
Circular Nos, A-110 (Grants and Cooperative
Agreements with Institutions of Higher
Education, Hospitals, and Other Nonprofit
Organizations) and 24 CFR part 84 and A-122
(Cost Principles Applicable to Grants, Contracts
and Other Agreements with Nonprofit
Institutions) apply to the acceptance and use of
assistance by private nonprofit organizations,
except where inconsistent with provisions of the
McKinney Act, other Federal statutes, or this
part,
(2) The financial management systems
used by recipients under this program must
provide for audits in accordance with the
provisions of 24 CFR part49. Private nonprofit
organizations who are subrecipients are subject
to the audit requirements of 24 CFR part 45.
HUD may perform or require additional audits as
It finds necessary or appropriate,
(b) Conflict of interest, (1) In addition to
the conflict of interest
requirements
] Copies of OMB Circulars Indy be obriined from E.O.R Publicabons,
room 2200, New Executive office bullding, Washington, DC 2o503,
telephone (202) 395-7332. (This Is not a loll -free number.) There
is a limlt or two h ee copies.
wwxv.hud.env Pagc 16
§ 582,400
in 24 CFR pail 85, no person who is an
employee, agent, consultant, officer, or elected
or appointed official of the recipient and who
exercises or has exercised any functions or
responsibilities with respect to assisted
activities, or who is in a position to participate
in a decisionmaking process or gain inside
Information with regard to such activities, may
obtain a personal or financial interest or benefit
from the activity, or have an interest in any
contract, subcontract, of' agreement with
respect thereto, or the proceeds thereunder,
either for himself or herself or for those with
whom he or she has family or business .ties,
during his or her tenure or for one year
thereafter. Participation by homeless individuals
who also are participants under the program in
policy or decisionmaking under § 582.300 of this
part does not constitute a conflict of interest,
(2) Upon the written request of the
recipient, HUD may grant an exception to the
provisions of paragraph (b)(1) of this section on
a case-by-case basis when It determine that the
exception will serve to further the purposes of
the program and the effective and'efficient
administration of the recipient's project, An
exception may be considered only after the
recipient has provided the following:
(i) For States, units of general local
governments, PHAs and IHAs, a disclosure of .
the nature of the conflict, accompanied by an,
assurance that there has been public disclosure
of the conflict and a description of how the
public disclosure was made; and
(il) For all recipients, an opinion of the
recipient's attorney that the interest for which
the exception is sought would not violate .State
or local law,
(3) In determining whether to grant a
requested exception after the recipient has
satisfactorily met the requirement of paragraph
(b)(2) of this section, HUD will consider the
cumulative effect of the following factors, where
applicable:
(i) Whether the exception would provide a
significant cost benefit or an essential degree of
expertise to the project 'Which would otherwise
not be available;
(ii) Whether -the person affected is a
member of a group or class of eligible persons
and the exception will permit such person to
receive generally the same interests or
24 CFR Ch. V (4-1-09 Edition)
benefits as are being made available or
provided to the group or class;
(lit) Whether the affected person has
withdrawn from his or her functions or
responsibilities, or the decisionmaking process
with respect to the specific assisted activity in
question;
(iv) Whether the interest or benefit was
present before the affected person was in a
position as described in paragraph (b)(1) of this
section;
(v) Whether undue hardship will result
either to the recipient or the person affected
when weighed against the public interest served
by avoiding the prohibited conflict; and
(vi) Any other relevant considerations,
[58 FR 13892, Mar. 15, 1993, as amended at 61 FR 5210, Feb, 9,
1996, 61 FR 51171, Sept. 30,1996, 62 FR 13539, Mar, 21, 1997)
Subpart E -Administration
§ 582.400 Grant agreement.
(a) General, The grant agreement will be
between HUD and the recipient, HUD will hold
the recipient responsible for the overall
administration of the program, including
overseeing any subrecipients or contractors,
Under the grant agreement, the recipient must
agree to operate the program in accordance
with the provisions of this part and other
applicable HUD regulations.
(b) Enforcement, HUD will enforce the
obligations in the grant agreement through such
action as may be necessary, including
recapturing assistance awarded under.the
program.
§ 582,405 Program changes,
(a) Changes, HUD must approve, in writing, any
significant changes to an approved program.
Significant changes that require approval
include, but are not limited .to, a change in
sponsor, a change in the project site for SRO or
PRA with rehabilitation projects, and a change
in the type of persons with disabilities to be
served, Depending on the nature of the change,
HUD may require a new certification of
consistency with the CHAS (see § 582,120),
",",w.hud.2m esniml.hud.yo Page l7
Ofc. of Asst. Secy., Comm. Planning, Develop., HUD
(b) Approval. Approval for sud-i changes is
contingent: upon the application ranking
remaining high enough to have been
competitively selected for funding in the year
the application was selected.
§ 582.410 Obligation and deobligation
of funds.
(a) Obligation of funds. When HUD and the
applicant execute a grant agreement, HUD will
obligate funds to cover the amount of the
approved grant, The recipient will be expected
to carry out the activities as proposed in the
application. After the initial obligation of funds,
HUD is under no obligation to make any upward
revisions to the grant amount for any approved .
assistance.
(b) Deobligation. (1) HUD may deobligate
all or a portion of the approved grant amount If
such amount is not expended in a timely
manner, or the proposed housing for which
funding was approved or the supportive services
proposed in the application are not provided in
accordance with the approved application, the
requirements of this part, and other applicable
HUD regulations. The grant agreement may set
forth other circumstances under which funds
may be deobligated, and other sanctions may
be imposed.
(2) HUD may readvertise, in a notice of
fund availability, the availability of funds that
have been deobligated, or may reconsider
applications that were submitted in response to
.the most recently published notice of fund
availability and select- applications for funding
with the deobligated funds. Such selections
would be made in accordance with,the selection
process described in § 582.220 of this part. Any
selections made using deobligated funds will be
subject to applicable appropriation act
requirements governing the use of deobligated
funding .authority.
(AA-xvred by dr_ Ofrix a Manapnen, and Mgd und`r centro►
number 25060110)
§ 583.:1
www.hud.voSnanol.hud.P_ov Page 16
The 2011 Amendments to the
Shelter Plus Care Codified Regulation
PART582-SHELTER PLUS CARE
PROGRAM
3. The authority citation for 2. CFR part
582 continues to read as follows:
Authority: 92 U.S.C. 3535(4), and
11903-11907b.
9. In § 582.5, the definition of Flomeless or
homeless individual" is removed, the definitions
of "Developmental disability" and "Homeless"
are added, and the definition of "Person with
disabilities" is revised to read as follows:
1�592.5 Definitions.
4: 4: �: 4:
Developmental disability means, as defined
in section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (92
U.S.C, 15002):
(1) A severe, chronic disability of an individual
that -
(1) Is attributable to a mental or physical
impairment or combination of mental and
physical impairments;
(ii) Is manifested before the individual
attains age 22;
(iii) Is likely to continue indefinitely;
(iv) Results in substantial functional
limitations in three or more of the following
areas of major life activity:
(A)Self-care;
(B) Receptive and expressive language;
(C) Learning;
(D)Mobility;
(E) Self-direction;
(F) Capacity for independent living;
(G)Economic self-sufficiency; and
(v) Reflects the individual's need for a
combination and sequence of special,
interdisciplinary, or generic services,
individualized supports, or other forms of
assistance that are of lifelong or extended
duration and are individually planned and
coordinated.
Billing Code 9210-67
(2) An individual from birth to age. 9, iriclusivc,
who has a substantial developmental delay or
specific congenital or, acquired condition, n -ray
be considered to have a developn"rental
disability without meeting three or, n-rore of the
criteria described in paragraphs (1)(i) through
(v) of the definition of "developmental disability"
in this section If the individual, without services
and supports, has a high probability of meeting
those criteria later in life,
Homeless means:
(1) An individual or family who lacks a fired,
regular, and adequate nighttime residence,
meaning:
(1) An individual or family with a primary
nighttime residence that is a public or private
place not designed for or ordinarily used as a
regular sleeping accommodation for human
beings, including a car, park, abandoned
building, bus or train station, airport, or
camping ground;
(ii) An individual or family living in a
supervised publicly or privately operated shelter
designated to provide temporary living
arrangements (including congregate shelters,
transitional housing, and hotels and motels paid
for by charitable organizations or by federal,
state, or local government programs for low-
income individuals); or
(iii) An individual who is e>dbng an institution
where he or she resided for 90 days or less and
who resided in an emergency shelter or place
not meant for human habitation immediately
before
entering that institution;
(2) An individual or family who will imminently
lose their primary nighttime residence, provided
that:
(i) Tlie primary nighttime residence will be
lost within 19 days of the date of application for
homeless assistance;
(ii) No subsequent residence has been
identified; and
(iii) The individual or family lacks the
resources or support networks, e.g., family,
friends, faith -based or other social netvdorls,
needed to obtain other permanent housing;
w❑-tv.huCLLw CsDBiIOI.bUd.LON Page 19
(3) Unaccompanied youth Under 25 years of
age, or fanmilies with children and youth, who'do
not otherwise qualify as homeless under this
definition, but who:
(i) Are defined as homeless under section
387 of the Runaway and Homeless Youth Act
(42 U.S.C. 5732a), section 637 of the i -lead
Start: Act (42 U.S.C. 9832), section 41403 of the
Violence Against Women Act of 1994 (42 U.S.C.
14043e-2), section 330(h) of the Public Health
Service Act (42 U.S.C. 250(h)), section 3 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2012),.
section 17(b) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(b)), or'section 725 of the
McKinney-Vento Homeless Assistance Act (42
U.S.C. 11434a);
(ii) Have not had a lease, ownership
interest, or occupancy agreement in permanent
housing at any time during the 60 days
immediately preceding the date of application
for homeless assistance;
(iii) Have experienced persistent instability
as measured by two moves or more during the
60 -day period immediately preceding the date
of applying for homeless assistance; and
(iv) Can be expected to continue In such
status for an extended period of time because
of chronic disabilities; chronic physical health or
mental health conditions; substance addiction;
histories of domestic violence or childhood
abuse (including neglect); the presence of a
child or youth with a disability; or two or more
barriers to employment, which Include the lack
of a high school degree or General Education
Development (GED), Illiteracy, low English
proficiency, a history of incarceration or
detention for criminal activity, and a history of
unstable employment; or
(4) Any individual or family who:
(1) Is fleeing, or Is attempting to flee,
domestic violence, dating violence, sexual
assault, stalking, or other dangerous or life-
threatening conditions that relate to violence
against the individual or a family member,
including a child, that has either taken place
within the individual's or family's primary
nighttime residence or has made the individual
or family afraid to return to their -primary
nighttime residence;
(ii)Has no other residence; and
(iii) Lacks the resources or support
networks, e.g., family, friends, and faith -based
or other social networks, to obtain other
fyarmanent housing,
Person with disabilifies means a household
composed of one or nmore I.-)ersons at least one
of whom is an adult who has a disability.
(1) A person shall be considered to have a
disability if Ire or she has a disability that:
(1) Is expected to lr� long -continuing or of
indefinite duration;
(it) Substantially impedes the individual's
ability to live independently;
(Iii) Could be improved by the provision of
more suitable housing conditions; and
(iv) is a physical, mental, or emotional
impairment, including an impairment- caused by
alcohol or drug abuse, post-traumatic stress
disorder, or brain injury.
(2) A person will also be considered to have a
disability If he or she has a developmental
disability, as defined in this section.
(3) A person will also be considered to have a
disability If he or she has acquired
immunodeficiency syndrome (AIDS) or any
conditions arising from the etiologic agent for
acquired immunodeficiency syndrome, including
infection with the human immunodeficiency
virus (HIV).
(4) Notwithstanding the preceding provisions
of this definition, the term person, with
disabilities includes, except in the case of the
SRO component, two or more persons with
disabilities living together, one or more such
persons living with another person who Is
determined to be important to their care or
well-being, and the surviving member or
members of any household.described in the first
sentence of this.definition who were living, in a
unit assisted under this part, with the deceased
member of the -household at the. time of his or
her death. (In any event, with respect to the
surviving member or members *of a household,
the right to rental assistance under this part will
terminate at the end of the grant period under
which the deceased member was a participant.)
5. A new § 582.301 is added to read as
follows:
5 582.301 Recordkeepina.
(a) [Reserved.]
wv.W.J)Ud.trn e;rnnol.hud.eov Mige 20
(h) Homeless �tr.ltus; Tfre recipient
intist maintain and follow written intake
procedures to ensure compliance with the
homeless definition in § 552.5. The procedures
n•rusl: require documentation at intake of the
evidence relied upon to establish and verify
homeless status.,The procedures must establish
the order of priority for obtaining evidence as
third-party documentation first, intake worker -
observations second, and certification from the
person seeking assistance third. However, lack
of third-party documentation must not prevent
an individual or family from being immediately
admitted to emergency shelter, receiving street
outreach services, or being immediately
admitted to shelter or receiving services
provided by a victim service provider; as defined
in section 401(32) of the McKinney-Vento
Homeless Assistance Act, as amended by the
HEARTH Act. Records contained in an HMIS or
comparable database used by victim service or
legal service providers are acceptable evidence
of third-party documentation and intake worker
observations if the HMIS retains an auditable
history of .all entries, Including the person who
entered the data, the date of entry, and the
change made; and If the
•HMIS. prevents overrides"or changes of the
dates entries are made.
(1) If the individual or family qualifies as
homeless under paragraph (1)(1) or (Ii) of the
homeless definition In § 582.5, acceptable
evidence includes a written observation by an
outreach worker of the conditions where the
individual. or family was living, a written referral
by another housing or service provider, or -a
certification by the individual or head of
household seeking assistance.
(2)'If•the individual qualifies as'homeless
under paragraph (1)(111) of the homeless •
definition in § 582.5, because he or she resided
in an emergency shelter or place not meant for
human habitation and Is exiting an institution
where he or she resided for 90 days or less,
acceptable evidence includes the evidence
described in paragraph (b)(1) of this section
and one of the following:
(i) Discharge paperwork or a written or oral
referral from a social worker, case manager, or
other appropriate official of the institution,
stating the beginning and end dates of the time
residing in the-institution. All oral statements
must be recorded by the intake worker; or
(ii) Where the evidence in paragraph
(b)(2)(i) of this section is not: obtainable, a
written record of the intake worker's due
diligence in attempting to obtain tl-)e evidence
described in paragraph (b)(2)(i) and a
certification by the individual seeking assistance
that states he or She I: exiting or hasJust exited
an institution where he or she resided for 90
days or less.
(3)If the individual or family qualifies as
homeless under paragraph (2) of the homeless
definition in § 582.5, because the individual or
family will imminently lose their housing, the
evidence must include;
(i)(A) A court order resulting from an
eviction action that requires the individual or
family to leave their residence within 14 days
after the -date -of theirapplication for homeless
assistance; or the equivalent notice under •.
applicable state law, a Notice to Quit, or a
Notice to Terminate issued under state law;"
(B) For individuals and families whose
primary nighttime residence is a hotel or motel
room not paid for by charitable organizations or
federal, state, or local government programs for
low-income individuals, evidence that the
individual or family lacks the resources
necessary to reside there for more than 14 days
after the date of application for homeless
assistance; or
(C) An oral statement by the individual or
head of household that the owner or renter of
the housing in which they currently reside will
not allow them. to stay for more than 14 days
after the date of application -for homeless • -
assistance, The intake worker must record the
statement .and certify that It was found credible.
To be found .credible, the oral statement must
either: (I) be verified by the owner or renter of
the housing in which the individual or family
resides at the time of application -for homeless.
assistance and be documented by -a written
certification by the owner or renter or by the
intake worker's recording of the owner or
renter's oral statement; or (II) if the intake
worker is unable to contact the owner or renter,
be documented by a written certification by the
intake worker.of his or her due diligence in
attempting to obtain the owner or renter's
verification and the written certification by the
individual or head of household seeking
assistance that his or her statement was true
and complete;
ewnuhud.rmc;manol.hi d.eov Page 21
(!I) Certiflcahon by the individual or I'reari of
household that no subse(luenl residence_ has
heefr identified; and
(iii) Certification or other written
documentation that: the individual or family
lacks the resources and support networks
needed to obtain other permanent housing.
(4) If the individual or family qualifies as
homeless under paragraph (3) of the homeless
definition in § 582.5, because the individual or
family does not otherwise qualify as homeless
under the homeless definition but is an
unaccompanied youth under 25 years of age, or
homeless family with one or more children or
youth, and is defined as homeless under
another Federal statute or section 725(2) of the
McKInneyVento Homeless Assistance Act (42
U.S.C. 11434a(2)), the evidence must include;
(1) For paragraph (3)(i) of the
homeless definition in § 582.5, certification
of homeless status by the local private nonprofit
organization or state or local governmental
entity responsible for administering assistance
under the Runaway and Homeless Youth Act
(42 U.S.C. 5701 -et seq.), the Head Start Act (42
U.S.C. 9831 et seq.), subtitle N of the Violence
Against Women Act of 1994 (42 U.S.C. 14043e
et seq.), section 330 of the Public Health
Service Act (42 U.S.C. 254b), the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.),
section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786), or subtitle B of title VII of the
McKinney-Vento Homeless Assistance Act (42
U.S.C. 11431 et seq.), as applicable;
(II) For paragraph (3)(11) of the'homeless
defrn1don in § 582.5, referral by a housing or
service provider, written observation by an
outreach worker, or certification by the
homeless individual or head of household
seeking assistance;
(iii) For paragraph (3)(iii) of the homeless
definition In § 582.5, certification by the
individual or head of household and any
available supporting documentation that the
individual or family moved two or more times
during the 60 -day period immediately preceding
the date of application for homeless assistance,
including; recorded statements or records
obtained from each owner or renter of housing,
provider of shelter or housing,. or social worker,
case worker, or other appropriate official of a
hospital or institution in which the
individual or family resided; or, where these
statements or records are unobtainable, a
written record of the intala� worker's due
diligence in atternpting to obtain these
statemenb or records. Where a move was due
to the individual or family fleeing domestic
violence, dating violence, sexual assault, or
stalking, then the intake worker may
alternatively obtain a written certification from
the individual or tread of household seeking
assistance that they were fleeing that situation
and that they resided at that address; and
(iv) For paragraph (3)(iv) of the homeless
definition in § 582.5, written diagnosis from a
professional who is licensed by the state to
diagnose and treat that condition (or- Intake
staff -recorded observation of disability that
within 45 days of the date of application for
assistance is confirmed by professional who is
licensed by the state to diagnose and treat that
condition); employment records; department of
corrections records; literacy, English proficiency
tests; or other reasonable documentation of the
conditions required under paragraph (3)(iv) of
the homeless definition.
(5) If the individual or family qualifies under
paragraph (4) of the homeless definition in § .
582.5, be the individual or family is fleeing
domestic violence, dating violence, sexual
assault, stalking, or other dangerous or life-
threatening conditions related to.vlolence, then
acceptable evidence includes an oral statement
by the individual or head of household
.seeking assistance that they are fleeing that
situation, that no subsequent residence has
been identified, and that they lack the
resources or support networks, e.g., family,
friends, faith -based .or other social networks,
needed to obtain other housing. If the
individual or family is receiving shelter or
services provided by a victim service provider,
as defined in section 401(32) of the
McKinney-Vento-Homeless Assistance Act, as
amended by the HEARTH Act, the oral
statement must be documented by either a
certification by the individual or head of
household, or a certification by the intake
worker. Otherwise, .the oral statement that the
Individual or head of household seeking
.assistance has not identified a subsequent
residence and lacks the resources or support
networks, e.g., family, friends, faith -based or
other social networks, needed to.obtain housing
must bF documented by a certification by the
urn %v.hud.lroy Lspallor.hud em Page 22
Individual or heacl of trousehoid that the oral
statement is true and con-rplete, and, where tide
safety of the individual or family would not be
jeopardized, the donrrestic violence, dating
violence, sexual assault, stalking or other
dangerous or life-threatening condition must be
verified by a written observation by the intake
worker ora written referral by a housing or
service provider, social worker, health-care
provider, law enforcement agency, legal
assistance provider, pastoral counselor, or any
other organization from whom the individual or
head of household has sought assistance for
domestic violence, dating violence, sexual
assault, or stalking. The written referral or
observation need only include the minimum
amount of information necessary to document
that the individual or family is fleeing, or
attempting to flee domestic violence, dating''
violence, sexual assault, and stalking.
(c) recipient of
Disability. -Each
assistance under this part must maintain and
follow written Intake procedures to ensure that
the assistance benefits persons with disabilities,
as defined in § 582.5, In addition to the
documentation required under paragraph (b),
the procedures must require documentation at
intake of the evidence relied upon to establish
and verify the disability of the person applying
for homeless assistance. The recipient must
keep these records for 5 years after the end of
the grant term. Acceptable.evidence of the
disability includes;
(1) Written verification of the disablilLy from
a professional licensed by the state to diagnose,
and treat the disability and his or her
certification :that the disability is expected to be
long -continuing or of indefinite duration and.
substantially impedes the Individual's ability to
live Independently; Written verification from the
So:-ial Security Administration;
(2) The receipt of a disability check (e.g,,
Social Security DisabilityInsurance . check or
Veteran Disability Compensati-,i);
(3) Intake staff -recorded observation of
disability that, no later than 15 days of tire,
application'for assistance, is confirmed and
accompanied by evidence in paragraph (cytl
(2), (3), or (4) of this section; or
(4) Other documentation approved by HUD.
vnsnv.hud P0% Page 23
h.1
Exhibit C
Project Budget
Triangle Area Network
Rent/Lease payment $138,300.00
Administrative Costs $8,444.00
Total Budget $146,744.00
Exhibi+JDI:.11 ll.,.r,rr
llrrl.. r' 7�hr rlll!lrllll.•11 r11„rl, . I1/lir, r,/.''r/rlu rlr/1'rlrrrr! rr rrrf l:,Irlrl r�( :rulll l.t \1411111.1 I:lllld�.l:l!\
Ahunl I (Millhip 1'I'oolhulef Ihhn:;i;•rinrnlI I<r;glll:aiuufilulinn:nlinllllnli,7. 1 I.1•y'I.elaliu•Inlirinalinn 1.Iniu(Ih•IL' 11'nu:ml(*lli
,, hl,lll
CIRCULAR A-llo REVISED 11/19/93 AS Further Amended
/ 9/93
Lu:l::1.1;.Ili,l
OMFOlflmli:nlilll'"J'an
9/30/99
()lval VIRI
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
OhdC 1\C:wb Nelea;.et.
R:'•; r,.l•.rl:
SUBJECT: Uniform Adminisualive Requirements for Grants and Agreements With Instilulions of Higher
Education, Hospitals, and Other Non-Prolil Organizalions
11.101 :ctum r'roperty
l`f tr:: i::S' I' lu
1. Purpose. This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the
isllll(Ilil,L'
administration of grants to and agreements with institutions of higher education, hospitals, and other non-prolil
Circulars
organizations.
13u::(1c1
Simi; ;aid L(;(.cl
2. Authority. Circular A-110 is issued under the authority of 31 U.S.C. 503 (the Chief Financial Officers Act), 31
i nvi;ll:nl(:Ill;,
U.S.C. 1111, 41 U.S.C. 405 (file 011ice of Federal Procurement Policy Act), Reorganization Plan No. 2 of 1070, and
r(il,t o:i:,n ll ;Irrll I�un
E.O. 11541 ("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in file
Profit h nfifuliunr
Executive Office of the President").
rvd($ rpd NnxaOunlvW
L-dernl rinanr.ial
3. Policy. Except as provided herein, file standards set forth in this Circular are applicable to all Federal agencies. If
Management
any statute specifically prescribes policies or specific requirements that differ from the standards provided herein, the
udui al Inforrnalion
provisions of the statute shall govern.
rvvho ncesirata
Collecfiun
The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply
011;er ";;ecial Furpo;;v
the provisions of [his Circular to subrecipienls performing substantive work under grants and agreements that are
IJumolanda
passed through or awarded by the primary recipient, if such subrecipienls are organizations described in paragraph 1.
F,iivflLy Guf lanes
re(:I/rn Is
This Circular does not apply to grants, contracts, or other agreements belween the Federal Government and units of
State or local governments covered by OMB Circular A-102, "Grants and Cooperative Agreements with Slate and
rederal Register
Local Governments," and the Federal agencies' grants management common rule which standardized and codified the
rDIA
administrative requirements Federal agencies impose on Stale and local grantees. In addition, subawards and
No FFAR
contracts to Slate or local governments are not covered by this Circular. However, this Circular applies to subawards
OMU Lucal(x
made by Slate and local governments to organizations covered by [his Circular. Federal agencies may apply the
provisions of this Circular to commercial organizations, foreign governments, organizations under the jurisdiction of
foreign governments, and International organizations.
4. Definitions, Definitions of key terms used in this Circular are contained in Section _2 in the Attachment.
5. Required Action. The specific requirements and responsibilities of Federal agencies and institutions of higher
education, hospitals, and other non-prolil organizalions are set forth In this Circular. Federal agencies responsible for
awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt
Ole language In the Circular unless different provisions are required by Federal statute or are approved by OIAB.
0. OMB Responsibilities. OMB will review agency regulations and implementalion of this Circular, and will provide
interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions
will be subject to approval by OMB, as indicated in Section _.4 in the Attachment. Exceptions will only be made in
particular cases where adequate justification is presented.
7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of
Federal Financial Management, Office of Management and Budget. Washington. DC 20503, telephone (202) 305-
3003.
11. 7anninalinn Review Dille This Cticular will have a policy review Iluee yL•als fillip dalL of Issuance.
0. Effective Dale. The standards set Will in this Circular which affect Federal agencies will be ellectwe 3u days site,
publication of the final revision in the Federal Register. Those standards which Federal anencies impose on grantees
cynWomb/Circulars a] 10/ 10/11/2012
(.Mi,-L)J_,r]I\ !1-I I (, A
will hn lillopi19I h)' FI(II:IICIL'L 111 codlllull Ioiillllillow•. will lnl ::I Y. Ipllllllr:: 71111:1 pllhhcalloll III IIIL• Fellerill Re-filslur Lwhrr
ImpInmenlaholl i:: rnruwu(p+d
t.
nllarJuw:nl
Groats anti Agro amanls with Institutions of Higher Education,
Hospitals, and Olhar Non-Prolil Organizations
SUBPART A - GENERAL
SnC.
2 lielmalon:..
3 1 fled m. olnul
A Inma,ouu! .
J ::1IIS11W'illd:..
SUBPARTB- PRE -AWARD REQUIREMENTS
10 fuq:nse.
11 Pa: award pollclus.
12 Fonw; lar applying lo• ( edfahl assls!aucc.
13 Uubrwnul,l anti suspet.mon.
_.14 Sperinl award randiliala.
15 Metric sysionl of mcasumMON.
16 Roscurce Cnasmvatlun and Rrcuvely Act.
17 Corliflcalions and mr rusanlydions.
SUBPART C - POST -AWARD REQUIREMENTS
Financial and Program Management
_.20 Purpose of financial and program managemoni.
21 Standards for financial rnanagon,onl systems.
—.22 Payment.
23 Cost cLariny c+ malchmg.
—.24 F•rnfaanl inccnx:.
—.25 lievision of budget and plugianl Phms.
26 Nun•Fildwid audits.
27 Ailuw;jbltl cusls.
_.20 Vercid of avaiti:l:ility of iuml::.
.2g Guntl:Ii:uud uzauq,ulm:,.
Property Standards
_.301•.n�t3st• n: Inopl.tl} :.UrriiutL•.. '
—.31 Inrlunurt, coor•.rr.uu.
;1110/ 10/11/2012
—.34 1 iliami. i.l.
—.:16 1111mildfil
—.37 1 11-R-1 INA1141101;-I
Procurement Standards
—.4u I"Illjohe of l"WORMICIlt
—.41 Icuciplu'll w'-pol'uhiblim..
—,42 (Apov- W 1311MUrl.
—.43 Goillpelill(q).
—.44 11toculW1'NT-11 WDEVII-11ML.
—.45 (;us[ and flllcr. i'l.;,Iy:;i!.
—.46 huranUlwill let-011I.S.
—.47 (;c)nlr,,-.ci wimuli!111,111011.
—.48 Cojiltrxi
Reports and Records
—.50 F,)Tlc)so of ic:.L)v.rl:: au ruccloct.'.
.51 Iv)nniionnp ano reporting progratin ped"Ounance.
—.52 Financial reporting.
—.53 Iletenliuri and'accus rtstjohemunit for record..
Termination and Enforcement
—.60 FL)il)DSe of iefminidion and eilloicenlont.
—.61 lerminalion.
—.62 LnIarcrincril.
SUBPART D - AFTER -THE -AWARD REQUIREMENTS
—.70 Purpose.
.71 Clusuoul inucedute!..
—.72 Subsequent mijuslawallt; Wid (4,11tinuilly lospulldbilillm.
—.73 Collection r -I isilloillIN due.
APPENDIX A - CONTRACT PROVISIONS
SUBPART A - General
—.1 I'•:rptr..a This Circular establishes uniform admirliSiralive requirements for Federal grants and agreements
awarded lu institutions of higher educalion, hospitals. and What non-prolil orgnnizalions. Federal awarding agencies
shall not impose lidditiolml 61 iticonsisirvil requirements, except ns pinvi(IP(I in and ____.14 or unless
'11,
specifically required by Federal slatule or exectilive order Noti-prolil ortianizallon:. Ilial ilaplelnL-id Fedwal Program.,
for the States are also subject to Stale requirements.
—.2
110/ . 10/11/2012
(a) Accrued expendihaes means the rJunges incuued by Iht, ru:ynufll thimul it givtvi period n;quiring Iha prevision
el lands for: (1) Doer!: and other langaile properly retuned; (2) st evicts liellouued by enlployeos, renirarluc.
sllhreciplr:I1L. and otllel pavees; alld, (3) odfel falloolll:• berulllilig rwell hlntlei prognme: ler which tin current seivlces
of performialce is required.
(b) Accrued income means Ilia stun of: ('1) earnaigs clueing it given period frons (i) serviceu perforated by the
recipient, and (ii) goods and roller lnn(ible )vopedy delivered to purrhasers, and (2) amounts becoming owed to the
recipient for which no curruill services of ptxlornln ice is required by the recipient
(c) Acquisition cost of equipment means the nil Invoice pace of the uqulpmunl, lndurfmg the cost of ❑urdihcalions,
nllachnfents, accessories, or auxiliary apparalusnecessary to slake the pruperly usable for the purpose for which it
was acquirers. Usher charges, such on the cost of installation, Iransporlatiun, Inxes, (Illy or protective in-Ironsil
insurance, shall be inducted or excluded from Ilia unit acquisition cost in accordance with the recipient's regular
accounting practices.
(d) Advance means a payment made by Treasury check or other approprialu payment mechanism to n recipient upon
its request either before outlays are made by Iherectpienl or through the use of predetermined payment schedules.
(e) Award means financial assistance that provides support or stimufalion In accomplish a public, purpose. Awards
include grants slid other agreements in Ilse form of money or properly, in lied of money, by Ilse Federal Government to
an eligible recipient. The term does not include: technical assistance, which provides services instead of money; other
assisinnce ill Ilia form of loans, loan guarantees, interest subsidies, or insurance; direct payments of any kind to
individuals; and, contracts which are required to be entered into and administered under procurement laws and
regulations.
(1) Cash contributions means life recipienl's cash outlay, including life oullay of money contributed to Ilse recipient by
third parties.
(g) Closeout means the process by which a Federal awarding agency determines that all applicable administrative
actions and all required work of Ilse award have been completed by the recipient and Federal awarding agency.
(h) Contract means a procurement contract under aft award or subaward, and a procurement subcontract tinder a
recipient's or subrecipienl's contract.
(i) Cost sharing or matching means that portion of project or program costs not borne by the Federal Government
O) Date of completion means the dale on which all work under an award is completed or the dale on the award
document, or any supplement or amendment thereto, on which Federal sponsorship ends.
(k) Disallowed costs means those charges to an award that the Federal awarding agency determines to be
unallowable, in accordance with the applicable Federal cost principles or other terms and conditions contained in the
award.
(1) Equipment means lnngible nonexpendable personal properly including exempt properly charged directly to the
award having a useful life of more Ilion one year and an acquisition cost of $5000 or more per unit. However,
consistent with recipient policy, lower limits may be established.
(m) Excess properly means properly under the control of any Federal awarding agency Iha(, as determined by the
head thereof, is no longer required for its needs or the discharge of its responsibilities.
(n) Exempt property means tangible personal properly acquired in whole or in pad with Federal funds, where the
Federal awarding agency has statutory authority to vest title in Ilse recipient without further obligation to Ilse Federal
Government. An example of exempt property authority is contained in Ilse Federal Grant and Cooperative Agreement
Act (31 U.S.C. 6306), for properly acquired underan award to conduct basic or applied research by a non-proffl
institution of higher education or non•prolil organization whose principal purpose is conducting scientific research.
(o) Federal nwarding agency means the Federal agency Ihal provides on award to Ilia recipient
(p) Federal funds authorized means ilia total amount of Federal funds obligated by the Federal Government for use
by Ilse recipient. This amount may include any authorized carryover of unobligaled funds from prior funding pedods
when penmilled by agency regulations or agency implementing instructions.
(q) Federal share of real properly, equipment, or supplies memo that percentage of Ilia property's ncquisilion costs
and any improvement expenditures paid with Federal funds.
(r) Funding period meant: the peiod of limo Mien Federal funding is available for oblignlion by the recipient.
(s) Intangible properly and debt instruments means, but is not limiled to, trademarks, copyrights, patents and
parent appkcalions and such properly as 1011115, nnles and other debt instruments, lease agreements, slocl: and other
instruments of properly ownership, veberher considered langible of intangible.
l�ttt�•��\x/\a/\x/
whitehouse.t'ov/omb/circulars a110/
10/11/2012
(I) Oblignl if) ns moans IIu1 nna1111W. at urdr.:s plficed, canard:, find Ilumts awfirden, seiwcr.:. Immived and suuiinl
I ransacllonb (lifting a given pm loss Is lull an: payln(nd by Ibi: recgai:nl dunnll It same nr a IIIIIII I: proud.
(u) Oullays or expenditures nwrimt, LllargL'ti illrl(IF: It. the pruloci its pragrain. 'I hey may be lepnned uu it call l (x
account baslL. For tepuris pmpaled oil a Cash Nast;, oUnay!; ilii: Iiie F(ttll uI cusll (IlsbIrg.OIaL'nIL lot (IIII:cI charfle, his
gnods unit service-.. use an101rrit of Indo L-cl expetisL charged, the value of Iliitrs poorly 111 -kind 1:1111lriblltiolls tipl)lied find
the Ilmounl of cash advances and payments Ilaidu In suble'cipierlls. For reports prepared on all account basis, uulliry:,
are the sill) of cash disbursements fol duucl charges lar goods Barflies vices, Ilia amount of indirect expense incurred,
file value of in-kind contributions applied, and the net increase (fir decrease) in the amamis rowed by she recipient lel
floods and other properly received, fill services performed by enhpinyees, cnnlnlcsors, sublecipienin find other payees
and other nmounls becoming owed widerpmgranis for which not current services or purfornlnnre we required.
(v) Personal property means properly of any kind except real properly. It may bo lanllible, having physical existence,
or iraangible, having nn physical existence, such as copyrights, patents, ur securities.
(w) Prior approval means wrillen approval by an authorizer) official evidencing prior consent.
(x) Program inconlu means gross income earned by If so recipient that is directly generated by it supported aclivily or
earned as a result of file award (see exclusions in paragraphs _.24 (e) and (h)). Program incmne includes, bill is not
limited to, Income from fees for services performed, the use or rental of real or personal property acquired under
federally -funded projects, the sale of commodities or items fabricated under on award, license fees and royalties on
patents and copyrights, and interest on loans made with award funds. Interest earned on advances of Federal funds is
not program income. Except as otherwise provided in Federal awarding agency regulations or the terns and
conditions of the award, program income does not include Ilse receipt of principal on loans, rebates, credits, discounts,
etc., or interest earned on any of them.
(y) Project costs means all allowable cost.,, as set forth in the applicable Federal cost principles, incurred by a
recipient and lire value of the contributions made by third parlies in accomplishing the objectives of the award during
the project period.
(z) Project period means the period established in Ilse award document during which Federal sponsorship begins and
ends.
(as) Properly means, unless otherwise stated, real property, equipment, intangible property and debt instruments.
(bb) Real property means land, including land improvements, structures and appurtenances Ilherelo, but excludes
movable machinery and equipment.
(cc) Recipient means an organization receiving financial assistance directly from Federal awarding agencies to carry
out a project or program. The.lerm includes public and private institutions of (higher education, public and private
hospitals, and other quasi -public and private non-profit organizations such as, but not limited to, community action
agencies, research institutes, educational associations, and health centers. The term may include commercial
organizations, foreign or international organizations (such as agencies of the United Nations) which are recipients,
subrecipients, or contractors or subcontractors of recipients or subrecipienls at the discretion of the Federal awarding
agency. The term does not include government-owned contractor -operated facilities or research centers providing
continued support for mission -oriented, large-scale programs that are government-owned or controlled, or are
designated as federally -funded research and development centers.
(dd) Research and development means all research aclivilies, both basic and applied, and all developmenl activities
that are supporled at universllies, colleges, and other non-profit institutions. "Research" is defined as a systematic
study directed toward fuller scientific knowledge or understanding of the subject studied. "Development" is the
systematic use of knowledge and understanding gained from research directed toward the producliorl of useful
materials, devices, systems, or methods, including design and development of prototypes and processes. The term
research also includes activities Involving the training of individuals in research techniques where such activities utilize
the same facilities as other research and development activities and where such activities are not included In the
instruction function.
(ee) Small awards means a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41
U.S.C. 403(l 1) (currently $25,000).
(H) Subaward means an award of financial assistance in the form of money, or properly in lieu of money, made under
an award by a recipient to an eligible subrecipienl or by a subrecipienl to a lower tier subrecipienl. The term includes
financial assistance when provided by any legal agreement, evert if the agreement is called a conlracl, but does not
include proc(rremenl of goods and services not does it include any form of assistance which is excluded from the
definition of "award" in paragraph (e).
(gg) Subrecipienl means the legal enfily to which a subbwnrd is made and which is accountable to Ilia recipient lot
IhO use, of the funds provided The lean may include foreign or inteuhaltalal Organizations (such as agencies of the
United NallOns) as the discretion of the Federal nwardinq agency.
(fill) Supplies means all personal property excluding equipmenl, intangible properly, and debt instruments as defined
in this seclion, and inventions of a contractor cenceiverl or fest actually reduced to practice in the performance of work
1-•--.,/....,,,,, ,,rhilnlnrniCf'. r7nWomb/circulars a110/ 10/11/2012
under ah IIIIIIINI alb Consent ("sub)acl iflvenhon::). as defined al $7 C:hk ptlrl •101, "lief it n:. lu bwertalae. Miall: by
Wunp1nl11 Ulpoluzelli n, wul'Sltlidl IJusua::;: Dams Unlet Govenunent Nmol:., t.un0ru:l:., alaf Guopennlve
A(p'ealne111L."
(11) Suspension 111wllls 1111 iidlull by is i -ed :till ilwilldillu bywicy Ilial It.'lllpolarlly willldrom. Fatleall 1;1)01150151111) Illldel
nu awiad, pending collective action by the lecgdr:nl 01 penduul it declsion to lenninale Ille uwald by the r edw ll
awarding affency. Suspension of on award is a separate actio train suspension under Federal agency regulnllum
inlplenlenbng E.O.s 12b4 tl and 1.1007, "bebam enl and Suspension."
UU rarminallon ineans file Callcellaboll of I'rth.•ral spollsorshifr, in whole or in earl, under His agreement al any limo
prior In Ill(- dale of completion.
(kk) Third party, in-kind contributions mlians [lie value of non -call) contribution:: provided by non -Federal third
parties. Third parly in-kind contributions may built the form of real properly, equipment, suppties and other expendable
property, and the value of goods slid services directly benefiting and specifically idenllllable to flu, project of program.
(II) Unilquidnied obligntions• for financial fattens prepared on a cash basis, means the amount of obligations
incurred by the recipient that have not been paid. For reports prepared on an accrued expenditure basis, Ihey
represent the amount of obligalions incurred by the recipient for which an oufley hes not been recorded.
(film) Unobligated balance means the portion of the funds authorized by the Federal awarding agency that has not
been obligated by the recipient and is determined by deducting Ilse cumulative obligations front the cumulative funds
authorized.
(nn) Unrecovered indirect cost means the difference between Ilse amount awarded and the amount which could
have been awarded under the recipient's approved negotiated indirect cost rate.
foo) Working capital advance means a procedure where by lunds are advanced to the recipient to cover its
estimated disbursement needs for a given initial period.
_.31.11i:rl to. etael :::ll0l Lw: For awards subject to this Circular• all administrative requirements of codified
program regulations• program manuals, handbooks and other nonregulatory materials which are inconsistent with file
requirements of this Circular shall be superseded, except to the extent [hey are required by statute, or authorized In
accordance wilh the deviations provision in Section _.4.
_.4 Ueviubuns. The Office of Management and Budget (OMB) may grant exceptions for classes of grants or
recipients subject to the requirements of this Circular when exceptions are not prohibited by statute. However, in the
interest of maximum uniformity, exceptions from The requirements of Ihis Circular shall be permitted only in unusual
circumstances. Federal awarding agencies may apply more restrictive requirements to a class of recipients when
approved by OMB. Federal awarding agencies may apply less reslriclive requirements when awarding small awards,
except for those requirements which are statutory. Exceptions on a case-by-case basis may also be made by Federal
awarding agencies.
_.5 Subawmiis. Unless sections of this Circular specifically exclude subrecipienls from coverage, the provisions of
this Circular shall be applied to subrecipienls performing work under awards It such subrecipienls are institutions of
higher education, hospitals or other non-profit organizations. Slate and local government subrecipients are subject to
the provisions of regulations Implementing the grants management common rule,"Uniform Administrative
Requirements for Grants and Cooperative Agreements to Stale and Local Governments," published at 53 FR 0034
(3/11/00).
SUBPART B - Pre -Award Requirements
_.1011111%0sc. Sections _,.11 through _17 prescribes forms and instructions and other pre -award mailers to be
used fit applying for Federal awards.
_.11 plc. awrn'd prhruer..
(a) Use of Grants and Cooperative Agreements, and Contracts. In each instance, [lie Federal awarding agency shall
decide on file appropriate award instrument (i.e.. grant, cooperolive agreement, or contract). The Federal Grant and
Cooperative Agreement Act (31 U.S.C. 6301.00)governs the use of grants, cooperative agreements and contracts. A
grant or cooperative agreement shall be used onh when Ilse principal purpose of o transaction is to accomplish a
public purpose of support or slimutelion authorized by Federal statute. The statutory criterion for choosing between
grants and cooperative agreements Is that for the latter, "substantial involvement is expected between Ilse executive
agency and the Stale, focal government, or ollle(recipient when carrying out Ilse activity contemplated in the
agreement." Contracts shall be used when the principal purpose is acquisition of properly or services for file direct
benefit or use of the Federal Government.
(b) Public. Nolire and Priority Selling. Federal aviatiling agencies shall notify the public M its Intended funtang priorities
for aiscreho)aq• gram progriuns, unless. lundnlg prirnmes are eslabbshed by I•ederal slalute.
_. 121 u:nr lot apt. v.•y: ae l l:dtna� e. t.:.rdancr
,Nil,;je-lhrnIse.cov/omb/circulars a l 10/ 10/11/2012
(;) F erleral awat(III gl mlLlil:lea 5111111 cmOply will Illi' applitalble IepolI fdbanillm! Iwillffanfor flu of L CFR poll 1321),
"Conaulhnq Paperwuli )lumen:. of the frdibL," Willi I11(liud to ;,If Hams used by the I edutnl awnnliny agl:nay i❑ phice
of or n:: n supplement In the Slendard Form 424 (SI-424) motoes
(b) Applicants shall use Ilio SI -424 sLnLs or Inose: )orad, to ul alsliuctiont, piescohed uy the Fudel al ilwimbuy rguncy.
(c) For Fedwal proyrains covered by E.O. 12372, "IlllerfinvLainienuil Review of Federal Programs; the applicant shall
complete the approprialL seclions of the SF -424 (Application for federal Assishmce) indicating whether the uppiicnlion
was subject to review by file Slate Single Point of Contact (SPOC). The finale and taldress of the SPDC Int a
particular State caul be obtained from the Federal awarding agency or the Catalog of Fodoral Domestic Assistance.
The SPOC shall advise the applicant whether the program for which application is merle has been selected by that
Sinle lot review.
(d) F-erlernl awarding agencies Ibal do not use the SF -424 form should indicate whelher Ilia application in subject la
review by Ilia Slate under E.O. 12372.
_.13 Ina;tl:nn:: d im:! u,:.pea:.rnl. Federal awarding agencies and recipients shall comply will) Ilia nonprocurement
debarment and suspension common rule implementilig E.O.s 12549 and 12669. "Debarment and Suspension." This
common rule restricts subawards and contracts with certain parties that are debarred, suspender) or otherwise
excluded from or ineligible lot parlicipalion in Federal assistance programs or activities.
_.14 bpcixtn awiud comikiwn, If an applicant or recipient: (a) has a history of poor performance, (b) is not
financially stable, (c) hes a management system that does not meet the standards prescribed in this Circular, (d) has
not conformer) to the terms and conditions of a previous award, or (e) is not otherwise responsible, Federal awarding
agencies may impose additional requirements as needed, provided [list such applicant or recipient is notitied in writing
as to: the nature of Ilia additional requirements, the reason why Ilia additional requirements are being imposed, Ilia
nature of Ilse corrective action needed, the time allowed for completing the corrective actions, and Ilia method for
requesting reconsideration of life additional requirements imposed. Any special conditions shall be promptly removed
once the conditions that prompted them have been corrected.
_.15 Mea,c : yso m of niumiumnicnl. The Metric Conversion Act, as amended by the Omnibus Trade and
Compelilfveness Act (15 U.S.C. 205) declares Ilial the metric system is the preferred measurement system lot U.S.
trade and commerce. The Act requires each Federal agency to establish a date or dales in consultation Willi the
Secretary of Commerce, when the metric system of measurement will be used in the agency's procurements, grants,
and other business-related activities. Metric implementation may lake longer where the use of Ilia system is initially
impractical or likely to cause significant inefficiencies in the accomphilimenl of lederally-lunded activities. Federal
awarding agencies shall follow the provisions of E.O. 12770, "Metric Usage in Federal Government Programs.'
_.16 Resource. Conservaliaa and Recovery Act (RCHA) (PuL•. t.. 94560 codified al 42 U.S.C. 6962). Under the Act,
any Stale agency or agency of a political subdivision of a Slate which is using appropriated Federal funds must comply
with Section 6002. Section 6002 requires that preference be given in procurement programs to the purchase of
specific products containing recycled materials identified in guidelines developed by the Environmental Protection
Agency (EPA) (40 CFR parts 247.254). Accordingly, Stale and local institutions of Higher education, hospitals, and non
-profit organizations that receive direct Federal awards or other Federal funds shall give preference in their
procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA
guidelines.
_.17 Cmlificalions end Ieplaserla6nns. Unless prohibited by statute or codified regulation, each Federal awarding
agency is aulhorized and encouraged to allow recipients to submit certifications and representations required by
statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships
with [lie agency. Annual certifications and representations shall be signed by responsible officials with the authority to
ensure recipients' compliance with (lie pertinent requirements.
SUBPART C - Post -Award Requirements
Financial and Program Management
_.20 I1trip : v o' financial ani facgreni navfaneniom. SLclions _.21 Through _.26 prescribe standards for
financial management systems, methods for making payments and rules for: satisfying cost sharing and matching
requirements, accounting for program income, budget revision approvals, making audits, delerniining allowabilily of
cos(, and establishing fund availability.
_.21 Slagcnnls tui finonunl r ,nla.gt.rt�ar: sy:.rule
(a) Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b) Rucipieniz' financial managelneol system, shall provide lot Ill: following.
(1) Accurate, current and complete disclusure of the financial lesulls of each 1Lderallysponsured project or
program in accordance with the reporting requirements set forth in Section .52. If a Federal awarding agency
requires reporting on an accrual basis fioni a recipient that maintains its records on other than on accrual basis,
the recipient shall not be required to establish an accrual accounting system. These recipients may develop such
accrual dela lot its reports on the basis of an analysis of the documentation on hand.
11-1-4.— // ..... X11 Ajjjj;tjjnljZ(_. crnv/omb/circulars a110/ 10/11/2012
(2) keund:, that idunbly ntequmely the souax 111111 irppkcnuon of lunch; lot ludually-sponsurad arlwilax. 'Ihese
fern11c shall contain udornmbun pen.rirun.1 to I ederd award., mdhonzationc, obhgauons, unoblipaled lialancm.,
assets, uullays, uu:unu: and uderesl.
(3) Ellectwe control uvr.r and accountability for 1111 lundc, property find other rrssels. I+L•cildent:i shall adequately
safe(.0 raid all such'awls and assure iht,y areused solely ler authorized purposm..
(4) Comparison of oullays Willi budget a nolrnl; for each award. Wlenaver approprinle, financial Information
should be related In perlonnonce and nail cost dila.
(5) Written procedures to minimize the time elapsing between the Imitator of funds In the mcipienl from the U.S.
Treasury and Ile issuance or redemption of checks, warrants or paynnenlr; by other means for program purpose:;
by flit, recipient. To llfe extent that the provisions of the Cash Management Improvement Art (CMIA) (Pub. L.
101.453) govern, payment methods at Slate agencies, instrumentalities, and fiscal agents shalt be consistent
Willi CMIA Treasury -Stale Agreements or the CMIA default procedures corlified at 31 CFR pari 205, 'Withdrawal
of Cash from the Treasury for Advances under Federal Grant and Other Programs."
(0) Written procedures for determining the reasonableness, allocabillly and allowabllily of costs in accordance
Will) the provisions of the applicable Federal cost principles and the terms and conditions of the award.
(7) Accounting records including cost accounting records that are supported by source documentation.
(c) Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient. the
Federal awarding agency, at Its discretion, may require adequate bonding and insurance it the bonding and insurance
requirements of file recipient are not deemed adequate to protect the interest of the Federal Government.
(d) The Federal awarding agency may require adequate fidelity bond coverage where the recipient lacks sufficient
coverage to protect the Federal Government's interest
(e) Where bonds are required in the situations described above, the bonds shall be obtained from companies holding
certificates of authority as acceptable sureties, as prescribed in 31 CFR par] 223, "Surely Companies Doing Business
with the United Stales."
.22 Payment
(a) Payment methods shall minimize the time elapsing between the transfer of funds from the United Slates Treasury
and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Payment methods
of Stale agencies or Instrumentalities shall be consistent with Treasury -Slate CMIA agreements or default procedures
codified at 31 CFR pan 205,
(b) Recipients are to be paid in advance, provided they maintain or demonstrate the willingness to maintain: (1) written
procedures that minimize the lime elapsing between the transfer of funds and disbursement by the recipient, and (2)
financial management systems that meet the standards for fund control and accountability as established in Section
_.21. Cash advances to a recipient organization shall be limited to the minimum amounts needed and be limed to
be in accordance with the actual, immediate cash requirements of the recipient organization in carrying out the
purpose of the approved program or project. The liming and amount of cash advances shall be as close as is
administratively feasible to the actual disbursements by the recipient organization for direct program or project costs
and the proportionate share of any allowable indirect costs.
(c) Whenever possible, advances shall be consolidated to cover anticipated cast) needs for all awards made by the
Federal awarding agency to Ilse recipient.
(1) Advance payment mechanisms Include, but are not limited to, Treasury check and electronic funds transfer.
(2) Advance payment mechanisms are subject to 31 CFR part 205.
(3) Recipients shall be authorized to submit requests for advances and reimbursements at least monthly When
electronic fund transfers are not used.
(d) Requests for Treasury check, advance payment shall be submitled on SF -270, 'Request for Advance or
Reimbursement,` or other forms as ins), be authorized by OMB. This form is not to be used when Treasury check
advance payments are made to the recipient automatically through the use of a predetermined payment schedule or if
Precluded by special Federal awarding agency instructions for electronic funds transfer.
(e) Reinnbursen)enl Is the preferred method when the roquirennenls in paragraph (b) cannot be mel. Federal :)Warding
agencies may also use this method on any constiuclion agreement, or if the major portion of the cunslrucliun pro)ecl is
accomplished through private market financing or Federal loans, and the Federal assistance constitutes a minor
portion of the project.
'All,ii(:heuse.uov/omb/circulars--a I 10/. 10/11/2012
(1) I411e:n Ihu, rennbursenhanl uu!Ihud r.: used. Ihu I uderal awaidrng ntlency %hull uurku payment wdmat 30 duly:,
after mrurpl nl lilt! billing, unhez, Ihu Itiltuul Is rrrlpfolm.
(%) Rergrirmin Miall br- rmlhoozerl In submit requesl lir u!nubursnnu!nl M lead nwnlhly whim Neclrmur. lands
Iransfem are not usud.
(1) If it recipient cannot meet the criteria for advance payments and the Federal awmdmg agency has determined Ilial
reimbursement is not feasible because III(- recipient lack!; sufficient working capital, the Federal awarding agency may
provide cash on it working capilal advance bnsis. Under this faocedtim, Iht• Fcdaral awarding agency shall advance
cash to the recipient to cover its eslnnated disbursement needs for an initial period generally gorued In the awnhlue's
disbursing cycle. 'I herealler, the Federal nwardmg agency shall rennburse the ieclpienl fur its orlual cash
disbursements. The working capital advance method of payment shall not Im used for mcipients unwilling lir unabtr. In
provide lonely ndvances to Ihuir subrecipienl lu meet the subrecipienl's actual cash disbursements.
(g) To the extent available, recipients shall dlsburbe funds avnllablo from rvputynipnts In rind interest earned on a
revolving fund, program income, rebates, refunds, contract settlements, audit recoveries and interest earned on such
funds before requesting additional cash payments.
(h) Unless otherwise required by statute. Federal awarding agencies shall not willdhold payments for proper charges
made by recipients it any lime during the project period unless (1) or (2) apply.
(1) A recipient has failed to comply with the project objectives, the leans and conditions of the award, or Federal
reporting requirements.
(2) The recipient or subrecipienl is delinquent In a debt to [lie United Slates as defined in OMB Circular A-129,
"Managing Federal Credit Programs.' Under such conditions, the Federal awarding agency may, upon
reasonable notice, inform The recipient the[ payments shall not be made for obligations incurred after a specified
dale until the conditions are corrected or the indebtedness to the Federal Government is liquidated.
(t) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as
follows.
(1) Except for situations described in paragraph (1)(2), Federal awarding agencies shall not require separate
depository accounts for funds provided to a recipient or establish any eligibility requirements for depositories for
funds provided to a recipient. However, recipients must be able Io account for the receipt, obligation and
expenditure of funds.
(2) Advances of Federal funds shall be deposited and maintained in insured accounts whenever possible.
(j) Consistent with the national goal of expanding the opportunities for women -owned and minority-owned business
enterprises, recipients shall be encouraged to use women- owned and minorily-owned banks (a bank which is owned
at least 50 percent by women or minority group members).
(k) Recipients shall maintain advances of Federal funds in interest bearing accounts, unless (1), (2) or (3) apply.
(1) The recipient receives less than $120,000 in Federal awards per year.
(2) The best reasonably available interest bearing account would not be expected to earn interest in excess of
$250 per year on Federal cash balances.
(3) The depository would require an average or minimum balance so high the( II would not be. feasible within the
expected Federal and non -Federal cash resources.
(1) For those entities where CMIA and its implemenling regulations do not apply, interest earned on Federal advances
deposited in interest bearing accounts shall be remilled annually to Department of Health and Human Services,
Payment Management System, Rockville, MO 20052. Interest amounts up to $250 per year may be retained by the
recipient for administrative expense. Stele universities slid hospitals shall comply with CMIA, as 11 pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre -award costs for discretionary awards without prior written
approval from the Federal awarding agency. it waives its right to recover the interest under CMIA.
(m) Except as noted elsewhete in this Circular, only the following forms shall be authorized for the recipients in
requesting advances and reimbursements. Federal agencies shall not require more than an original and Iwo copies of
these forms.
(1) SF -270, Request for Advance ur Reimbursement. Inch I-edernl awarding agency shall adopt the SF -27U as
it standard form fur all nonconstnrction programs when electronft funds transfer or predeteunined advance
methods are not used. federal awarding agencies, however, have the option of using this form lot construction
programs in lieu of the SF -271, 'Oullay Report unit Request for Reimbursemenl for Construction Programs."
Pnv/comb/ci rcu 1 ars al 10/ 10/11/2012
Uullay I<LpolI mut Requesl lot I(tilt nbursenu:nI Ira idaISI I IuAlot I I'loorao In. Eucl11:11 (let or awarrlartl
allency Shull adupl Ihu SI -211 a:; the Monilnul loon to be usud rut Imloustalg Ioaubdoll ser nen] lot ronuourhon
plulpaur I lowevw, a kedeal awardaul agency nup• subshlule Ilu, SF -2711 when Ihu I wilval awarrbsal allenwy
dL•IH.1111111to; Ih:d it plovitlL:; nrlequale Illllanlallon Iu meet Pedeml neerhl.
—23 Gu:a :.Lr,onr, lit o,nlchlnll.
(a) All contributions, Including cash :loll third party al -kind, shall be ncceplLd a:; part of the reripionl's cost sharing to
matching when such contributions hotel all of the following criteria.
(1) Ate verifiable hunt the. recipient's record..
(2) Am nor included n:; cunhfbulions fa tiny olher lederally-assisted project or program.
(3) Are necessary and reasonable lot proper and efficient accomplishment of project or program objectives.
(4) Are allowable under the applicable cost principles.
(5) Are nor paid by Ilse Federal Government udder another award, except where authorized by Federal statute to
be used for cost sharing or matching.
(G) Are provided for in the approved budget when required by the Federal awarding agency.
(7) Conform to other provisions of this Circular, as applicable. '
(b) Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of Me
Federal awarding agency.
(c) Values for recipient contributions or services and properly shall be established In accordance wilh the applicable
cost principles. If a Federal awarding agency authorizes recipients to donate buildings or land for conslruclion/facilities
acquisition projects or long-term use, the value of the donated properly for cost sharing or matching shall be the lesser
of (1) or (2).
(1) The certified value of the remaining life of Ilse properly recorded in the recipient's accounting records at the
time of donation.
(2) The current lair market value. However, when Mere Is sufficient juslificalion, the Federal awarding agency
may approve Ilse use of Ilia current fair market value of rhe donated properly, even if 11 exceeds Ilse certified
value at the time of donation to the project.
(d) Volunteer services lurnished by professional and technical personnel, consultants, and other skilled and unskilled
labor may be counted as cost sharing or malclung if Ilse service is on integral and necessary part of an approved
project or program. Rates for volunteer services shall be consistent with those paid for similar work in Ilia recipient's
orgaillzalion. In Mose instances in which Ilia required skills are nor found in the recipient organization, rales shall be
consistent with those paid for similar work. in Ilia labor market in which Ilse recipient competes for the kind of services
involved. In either case, pairs fringe benefits Ilial are reasonable, allowable, and allocable may be included in the
valuation.
(e) Whun an employer other than the lecipwilt follus11eL Isle services of ail erllployee, these Solvicel, shall be valued ar
the employee's regutai rale of pay (plus an anlwnl of fringe benefits that ait, seasonable, allowable, and allocable, but
exclusive. of overhead costs), provided these services are in Ilia some skill for which the employee is normally paid.
1 ',.... ,,,i,, lin„�� urn„/nm1�/CII'CLl)8)'S al l 0/ 10/11/2012
(1) UonatLd ::apple; may Include wurh Ilene; as expendable equipmenl. nffin:e supplim., labormory supplim, or
wrxkshop and clns5ruom supplies Value assessed In donated supplies included ill the cost sharing or malchrng share
5111111 be reasonable and mall not exceed IIIe but urdrket value ul IhL prupeny ill IIIL Mille ul Isle dumrllorl
(g)1'III- method used for delennming rusi sharing or Innlrhing for donnled oquipmeni, buildings and land for which lice
passe:; to the recipient may difler acrordin11 to the purpose of the award, if (1) nr (2) apply.
(1) If Ilm purpose: of the awnrdis lu assisl the iecipient in Ilse acquisition of equipmenl, buildings or land, IhL total
value of IhL donnled property may be claimer) as cast sharing or maiching.
(2) If the purpose of the award is to support nclivities that require the use of equipment, buildings or land,
normally only depreciation or use charges for equipmenl and buildings may be made. However, the lull value of
equipment or other capital assets and lair rental charges for land may be allowed, provider) that the Federal
awarding agency has approved the charges.
(h) The value of donated properly shill be determined in accordance wilh file usual accounting policies of the
recipient, with the following qualifications.
(1) The value of donated land and buildings shall not exceed its fair market value at the time of donalion to the
recipient as established by an independent appraiser (e.g., certified real properly appraiser or General Services
Administration representative) and cerlified by a responsible official of file recipient.
(2) The value of donated equipment shall not exceed the lair market value of equipment of the same age and
condition at file time of donation.
(3) The value of donated space shall not exceed the fair rental value of comparable space as established by an
independent appraisal of comparable space and facilities in a pdvalely-owned building in the same locality.
(4) The value of loaned equipment shall not exceed its fair rental value.
(5) The following requirements perlain to the recipient's supporling records for in-kind contributions from third
parties.
(i) Volunteer services shall be documented and, to the extent feasible, supported by the same methods
used by file recipient for its own employees.
(11) The basis for determining file valuation for personal service, material, equipment, buildings and land
shall be documented.
24 f rauliul inacme.
(a) Federal awarding agencies shall apply fire standards set forlli in this section in requiring recipient organizations to
account for program income related to projects financed in whole or in part with Federal funds.
(b) Except as provided in paragraph (h) below, program income earned during the project period shall be retained by
the recipient and, nn accordance wilh Federal awarding agency neyulaltons ur the leans and cundiliuns of the awwd.
shall be used in one ur alum: of the vwys fi5md in OIL fulluwiny.
,;Ir.diriiicp nnv/nillll/clrculars a I D/
10/11/2012
1. j ltl•IJ L, ,,• .. ___-.
(11 Adtlt:d In ful d:. contnIll Iell to Ihr In u)ecl by III I.. I rdel ill awonill ill ngall tcy mal a:l.qural and used it, ludhla
011jiblr. Ixtged of prollRlln (tlgedivw;
(2) I bxd to hnanre the non -lana. -rid share of Ihr paspirl nr pinfaant
(3) Deducled train the Wild pwjecl of program allowable cost in determining the ael allowable costs on which Ihr
F ederal share of custs is based.
(c) Whea at agency nulhorizen the dlspoGlhalt (lI program irleonm it- described In paragraphs (h)(1) or (bN2), prntpanf
income in excess of any lirnils sllpulated shall be used in accordance with paragraph (b)(3).
(d) In the even[ [hal the Federal awarding agency does 1101 specify in fL, regulations or the terms and conditions of the
award how program intone is to be used, paragraph (b)(3) shall apply automatically to all projects or programs except
research. For awards that support research, paragraph) (b)(1) shall apply automatically unless the awarding agency
indicates in the terms and conditions another alternalive on the award or the recipient is subject to special award
conditions, as indicated bl Section _.14.
(e) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients
shall have no obligation to line Federal Government regarding program income earned alter Ilse end of the project
period.
(1) If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the
generation of program income may be deducted from gross income to determine program income, provided these
costs have not been charged to the award.
(g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Properly Standards
(See Sections _.30 through _,37).
(h) Unless Federal awarding agency regulalions or the terms and condition of the award provide otherwise, recipients
shall have no obligation to the Federal Government with respect to program income earned from license lees and
royalties for copyrighted material, patents, patent applications, trademarks, and Inventions produced under an award.
However, Patent and Trademark Amendments (35 U.S.C. 18) apply to inventions made under an experimental,
developmental, or research award.
_.25 kc:wsinn of badgel and progran• plans.
(a) The budget plan is the financial expression of the project or program as approved during the award process. II may
include either the Federal and non -Federal share, or only the Federal-shtere, depending upon Federal awarding
agency requirements. II shall be related to performance for program evaluation purposes whenever appropriate.
(b) Recipients are required to report deviations from budget and program plans, and request prior approvals for budge)
slid program plan revisions, in accordance with this section.
(c) For nonconslruclion awards, recipients shall request prior approvals from Federal awarding agencies for one or
more of the following program or budget related reasons.
(1) Change al Ib(: stupe ur Ihr, objective of the pfojecl or p cairaul (oven it therm i�- nu mmuciatud budgel revision
requaing prior wnlleu appfoval).
(2) Change in a key person specified in the apphicalion or award document.
1_".'./),.,,,,,,r „r),;+Ahnttcr-- Rrnr/nmb/circulars al 10/ 10/11/2012
l.11\l•�.: tom: �.. .. ... .._ _._..
(3) The absonce for more than 111lecuurnllm. a o .W, percent IedurhoIII) lime dovoled lu the prulurl, by the
approved puljea diu:clor or principal unvestignior.
(4) The need lot arldilionnl Federal lundmg.
(5) the Inlosler of :unuunts budgelcxl for indirect costs to obsorb inrrenses in direct cost,-, or vire versa, it
approval u required by the Federal awarding agency.
(0) The ineJusion, unless waived by [lie Federal awarding agency, of costs that require prior approval kr
accordance with OMB Circular A-21, "Cost principles for Educalionnl Institutions," OMB. Circular A-122, 'Cast
Principles for Non-Profil Organizations." or 45 CFR part 74 Appendix C, "principles for Determining Costs
Applicable to Research and Development under Grants and Contracts Mir Hospitals,' or 40 CFR part 31,
"Contract Cost Principles and Procedures,' as applicable.
(7) The lrnnsfer of funds allotted for training allowances (direct payment to trainees) to other categories of
expense.
(0) Unless described in the application and funded in the approved awards, the subaward, transfer or contracting
out of any work under an award. Thisprovision does not apply to the purchase of supplies, material, equipment
or general support services.
(d) No other prior approval requirements for specific Items may be imposed unless a deviation has been approved by
OMB.
(e) Except for requirements listed In paragraphs (c)(1) and (c)(4) of this section, Federal awarding agencies are
authorized, at their option, to waive cost-relaled and administrative prior written approvals required by this Circular and
OMB Circulars A-21 and A-122. Such waivers may include authorizing recipients to do any one or more of the
following.
(1) Incur pre -award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval
of the Federal awarding agency. All pre -award costs are incurred of the recipient's risk (i.e., the Federal awarding
agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award
or if the award is less than anticipated and inadequate to cover such costs).
(2) Initiate a one -lime extension of Ilse expiration dale of the award of up to 12 months unless one or more of the
following conditions apply. For one -lime extensions, the recipient must notify the Federal awarding agency in
writing with the supporting reasons and revised expiration date at least 10 days before the expiration dale
specified in the award. This one -lime extension may not be exercised merely for the purpose of using
unobligaled balances.
(t) The terms and conditions of awaid prohibit the extension.
(it) The extension requires additional Federal funds.
fill) The extension involves any change in the approved objectives or scope of tire project.
(3) Carry forward unobii-gated balances losubsequenl funding periods.
' rr•. ",1,;r-l,niron ornr/nmh/nirculars a 10/ 10/11/29012
(d) Fw flank: that suppof l Iw&IIIrlI. unless the F0(1enll awauhng ;llfr:ncp In ()Ville!. fill )wwite: ul If u: award of in
Ila: rfgauq,s n:gfit ann:.. It pnnl approval nspIII oI,I fill:, du:daib0d of pwmprq)II (:) au, at axnaacally waved
(i.c., rerfpfr:nL•: aced 1101 obtrnn such prior approvals) unlos:: ane o1 Ihu rnnrlilion:. indmietl in paragraph (e)(2)
applies.
(f) 1 hu Fadernl awarding ag0ncy may, ill its (11)1ion, wsiriel It 1t: traot;lel of funds au"nlg ducal cost cnleguries of
prograrns, functions and lfctfvities fol "ward:; ill which the Fedefal share of the projecl exceeds $100,000 and the
cumulative "mount of such transfer[: exceeds (x is expected t0 exceed 10 percent of the total budget as Ills[ approved
by the Federal awm(hul ngancy. No Federal awarding agency shall permit if transfer thril would cause any Federal
appropriation or part 111011:01 lu be Itself for pumroses other than those consfsh:nl with the original Inlrnl of the
appropriation.
(g) All other changes to nonconstruclion budgets, except for file changes described in paragraph (j), do nut require
prior approval.
(h) For construction awards, recipients shall request prior written approval promptly from Federal awarding agencies
for budget revisions whenever (1), (2) or (3) apply.
(1) The revision results from changes in the scope or the objective of the project or program.
(2) The need arises for additional Federal funds to complete the project.
(3) A revision is desired which involves specific costs for which prior written approval requirements may be
imposed consistent with applicable OMB cost principles listed in Section _.27.
(1) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by
OMB,
(j) When a Federal awarding agency makes an award that provides support for both construction and nonconstruclion
work, the Federal awarding agency may require the recipient to request prior approval from the Federal awarding
agency before making any fund or budget transfers between the Iwo types of work supported.
(k) For bolls construction and nonconstruclion awards, Federal awarding agencies shall require recipients to notify the
Federal awarding agency in writing promptly whenever the amount of Federal authorized funds is expected to exceed
the needs of the recipient for the project period by more than $5000 or live percent of the Federal award, whichever is
greater. This notification shall not be required If an application for additional funding is submitted for a continuation
award.
(1) When requesting approval for budge( revisions, recipients shall use the budget forms that were used in the
applicalion unless the Federal awarding agency indicates a letter of request suffices.
(m) Within 30 calendar days from the dale of receipt of Ilse request for budget revisions, Federal awarding agencies
shall review the request and notify Ilse recipient whether the budget revisions have been approved. 11 the revision is
still udder consideration at the end of 30 calendar days, the Federal awarding agency shall inform Ilse recipient in
wailing of the dale when the recipient may expect Ilse decision.
7.6ldfa 1';•:f'Mmctd:.
(a) Recipients and subrecipientc that are inslitutfonc of higher education or other non-prohl organfzaouns (Including
hospitals) shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC
7501.7507) and Ievised OMB Cif urlan A-133. -Audits of Crtates, Local•Guvenunenls, and Nor. -Profit Organizations."
l,ftl,i,HwNA/w.whitehouse.gov/omU/circulars a] 10/ 10/11/2012
(h) SIl11L' and local quvelnitll nI:, stlrllt lit: stlbJed to the rnlrhl lelhllll'.Iberrl;, contained lit the Singh! Audit ACI
Amendments of 1996 (;I1 USC 75()1.7ho7) atlll Ievrsmi OMH Circtll.0 A-133, 'Aurfils of Slalw., Local Goveuunene..
and Nun-Pluld Utguurzaliuns:'
(e) For-profil hospitals not covered by the audil provisions of revised OMB Circular A-133 shall be subject to the audit
requirements of the Federal awardngJ agr.ncles.
(d) Commercial organizations shall be subject In the audif requirements of the Federal awarding agency or the prime
recipient es Incorporated into the alwaid docurnenl.
_.27 /diwmofa cal:.. For each kind of recipient, Ihew is a set of Federal principles for determining allowable costs.
Allowab[lily of costs shall be determined in accordance with the cost principles applicable to the entity incurring the
costs. Thus, allowability of costs incurred by Slate, local or federally -recognized Indian tribal governments is
determined in accordance with the provisions of OMB Circular A-87, "Coal Principles for Slate, Local, end Indian Tribal
Governments." The allowability of costs incurred by non-profil organizations is determined in accordance with the
provisions of OMB Circular A-122, "Cost Principles for Non -Prolyl Organizalions." The allowabllily of costs incurred by
institutions of higher education is determined in accordance with the provisions of OMD Circular A-21, "Cost Principles
for Educational Institutions.' The allowability of costs incurred by hospitals is determined in accordance with the
provisions of Appendix E of 45 CFR pad 74, "Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals." The allowability of costs Incurred by commercial
organizations and [hose non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance
with the provisions of the Federal Acquisition Regulation (FAR) &1 48 CFR pad 31.
28 Vviiod of lrvailabilily of fund,. Where a funding period is specified, a recipient may charge to the grant only
allowable costs resulting from obligations incurred during the funding period and any pre -award costs authorized by
lbe Federal awarding agency.
29 Gondilinnal excmotion:.
(a) OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for
certain Federal programs with slalulorily-authorized consolidated planning and consolidated administrative funding,
that are identified by a Federal agency and approved by the head of the Executive department or establishment. A
Federal agency shall consult with OMB during its consideration of whether to grant such an exemption.
(b) To promote efficiency in Slate and local program administration, when Federal non-enllllemenl programs with
common purposes have specific slalulorily-aulhorized consolidated planning and consolidated administrative funding
and where most of the Slate agency's resources come from non -Federal sources, Federal agencies may exempt these
covered Slate -administered, non-enlillemeni grant programs from certain OMB grants management requirements. The
exemptions would be from all bul the allocabilily of costs provisions of OMB Circulars A-87 (Attachment A, subsection
C.3), "Cost Principles for Slate. Local, and Indian Tribal Governments," A-21 (Section C, subpart 4), "Cost Principles
for Educational Institutions," and A-122 (Attachment A, subsection AA), "Cost Principles for Non-Prolil Organizations;
and from all of the administrative requirements provisions of OMB Circular A-110, "Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher Education, Hospilals, and Other loon-Profil
Organizalions; and the agencies' grants management common rule..
(c) When a Federal agency provides [his flexibility, as a prerequisite to a Stale's exercising [his option, a Slate must
adopt Its own wrlllen fiscal and administrative requirements for expending and accounting for all funds, which are
consistent -with the provisions of OMB Circular A-87, slid extend such policies to all subrecipienls. These fiscal and
administrative requirements must be sufficiently specific to ensure that: funds are used in compliance with all
applicable Federal statutory and regulatory provisions, costs are reasonable and necessary for operating these
programs, and funds are not be used for general expenses required to carry out other responsibilities of a Slate or its
subrecipienls.
Prulmny Slondards
_.301 mpnse. w ploi%r:ny slit - ma id: Seclions _.31 through _.37 set lorlh uniform standards governing
management and disposition of property furnisher) by file Federal Government whose cost was charged to a project
supported by a Federal award. Federal awarding agencies shall require recipients to observe these standards under
1.4.4,.1/nnrrw'All,ii!?hn,l.C(:.eov/omb/circulars al 10/ 10/11/2012
awald:. and !:hal not nupusu nridlhlmal Iequal:nu:nIL. unless: sperrihenlly iuclua ed by Pectoral Slalull: I III! 'waill :llI
uugy use a:. civil ptullerIt, III; Ilmgunu:nl :nmWill ll:. Ill d IM)CUllllreL I)IOVIIICII II 0b5VIVLr. the 1)reVnileil:: of S(:Lltum.
__.31 .; c:m taxa. Lew:•;.,yl I,cLLtpienls shall, Ili it II mumu), piovidL Ilio viluivalbllf Insuthtwe LUVLtillh: lot 'Lilt
ptuporly and equipment arquiuld wilb Pedmnl hmd:; nr: provided to property owned by the remplenl. I-ederally-owfled
properly neer) not be Insured unlLss required by the terms and conditions of the awfud.
_,.32 hr:r. laolmny Each Federal awerding agency shall prescribe requirements for recipients; concerning OIL use
and dispesilloll of left] properly acquired ill whole- or ill earl underr awardL. UDILS:1 olllelvnse provided by sinlulL, such
requirements, al fl minunum, shall ronlam Out. lollowmg.
(it)1'file to real properly shall vest fn the recipient subject Io the condition that the recipient shall use the real properly
for the authorized purpose of file project as long as it fs nodded Drift shall not encumber the property without apprnvDI
of OIL Federal awarding agency.
(b) The recipient shall obtain written approval by the federal awarding agency for the use of real properly in other
federally -sponsored projects when the recipient determines that the properly is no longer needed lot the purpose of
the original prujecl. Use fn other projects shall be limited to those under fedemlly-sponsored projects (i.e., awards) or
programs Thal have purposes consistent with those authorized for support by the Federal awarding agency.
(c) When the real properly is no longer needed as provided in paragraphs (a) and (b), (lie recipient shall request
disposilion inslruclions front lite Federal awarding agency or its successor Federal awarding agency. The Federal
awarding agency shall observe one or more of the following disposition instructions.
(1) The recipient may be permitted to retain title without further obligation to the Federal Government slier it
conlpensales the Federal Government for Ihal percentage of the current fair market value of the property
attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the properly under guidelines provided by the Federal awarding agency
and pay the Federal Government for that percentage of the current fair market value of the properly attributable
to the Federal participation in the project (slier deducting actual and reasonable selling and fix -up expenses, if
any, from the sales proceeds). When the recipient Is authorized or required to sell the properly, proper sales
procedures shall be established that provide for competition to the extent practicable and result in the highest
possible return.
(3) The recipient may be directed to transfer title to the properly to the Federal Government or to an eligible third
party provided that. in such cases, the recipient shall be entitled to compensation for its attributable percentage
of the current fair market value of the properly.
_.33 F(I dot alty-ovrnLd unit err:mpl properly.
(a) Federally -owned properly.
(1) Title to federally -owned properly remains vested in (he Federal Government. Recipients shall submit annually
an inventory listing of federally -owned properly in their custody to Ilse Federal awarding agency. Upon
completian of the award or when Ilia properly is no longer needed, the recipient shall report the properly Io the
Federal awarding agency for further Federal agency utilization.
(2) If Ilse Federal awarding agency has no further need for Ilia properly, it shall be declared excess and reported
to the General Services Administration, unless the Federal awarding agency has statutory authority to dispose of
the property by alternative melhods (e.g., ]lie authority provided by the Federal Technology Transfer Act (15
U.S.C. 3710 (I)) to donate research equipment to educational and non-profit organizations in accordance with
E.O. 12021, "Improving Mathematics and Science. Education in Support of the National Education Goals.")
Appropriate instructions shall be Issued to the recipient by the Federal awarding agency.
(b) Exempt properly When slalulory• authority exisit, the Federal awarding agency has the option to von! title to
properly acquired with Federal funds in the recfpienl without further obligation to the Federal Government and under
conditions the Federal awarding agency considers appropriate. Such properly is "exempt properly." Should a Federal
awarding agency not establish conddions, title to exempt properly upon acquisitron shall vest m the reclprunl without
further obligation to the Federal Government.
1,1+),•ii,-Axi-1 ud1I1c-}1rnl.ge.s_rrnr/omh/circu1ars a] 10/ 1 U/1 1/2012
(11) I life Ill etlinli will acquired by it recipient will) Fadural fund:: sllall Yes III[ IIID ILcgaeol, w1b)LO IU Lllndaluns ul Ibis
rectal)
(I)) 1lle fecip1e11 shall not use equipment acquired will I; Literal Milds to pllwide selwces In null-Fedefrd outside
organizations for n lea that is less 111,111 private companies Charlie for equivalent services, 1111IL'.•s specillcally
autl)ol"Ized try Federal slalllte, lot as long as fhe Federal Government 1ollans rill Intel est in the equilin lent.
(c) The recipient shall use the equipment in the project or program fol which it was acquired as long an noeded.
whether of 1101 fhe project or program continues to be supported by Federal funds and shall not encumber Ibe properly
without approval of fhe Federal awarding agency. Mien no longer needed for ilia original project or program, the
recipient shrill use file equipment in connection with its other federally -sponsored aclivilies, in the following order of
priority: (f) Activities sponsored by the Federal awarding agency which funded file original project, [hen (it) activities
sponsored by other Federal awarding agencies.
(d) curing the time that equipment is used on the project or program for which it was acquired, the recipient shall make
it available for use on other projects or programs if such other use will not interfere with file work on Ilse project or
program for which the equipment was originally acquired. First preference for such other use shall be given to other
projects or programs sponsored by the Federal awarding agency that financed flee equipment: second preference shall
be given to projects or programs sponsored by other Federal awarding agencies. If the equipment Is owned by the
Federal Government, use on other activities not sponsored by the Federal Government shall be permissible It
authorized by file Federal awarding agency. User charges shad be treated as program income.
(e) When acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the
equipment and use the proceeds 10 offset the costs of the replacement equipment subject to the approval of the
Federal awarding agency.
(f) The recipient's properly management standards for equipment acquired with Federal funds and federally -owned
equipment shall include all of the following.
(1) Equipment records shall be maintained accurately and shall include the following information.
(i) A description of file equipment.
(it) Ivtanufaclurer's serial number, model number. Federal stock number, national stock number, or other
identification number.
(iii) Source of the equipment, including Ilse award number.
(iv) Whelher title vests in the recipient or the Federal Government.
(v) Acquisition dale (or dole received, if the equipment was furnished by file federal Government) and
cost.
(vi) Information from which one can calculate fhe percentage of Federal parliap Ilion in the cost of file
equipment (not applicable It, equipment furnished by the Federal Government).
1,rfl,-//1;61%xrur wl-iiielhouse.fzov/omb/circulars a1 10/ 10/11/2012
1. 1 I \ I — . . _ . . _
(vii)Locahou and cot dibou of the ulthin uol mId 1111:Ih11e Ow 111101"I11r111on wnb reported
(viii) Unit acquisition cost.
(ix) Ultimate disposllion dnla, including drift! of disposal and sules price or the method used In deteartine
current lair marked vahu: where a recipirlol compensfile:i the Fadend rlwm•ding agency for ns share.
(2) Equipment owned by the Federal Government shall he trlemilwd In indicale Fe.ovoil ownership.
(3) A physical inventory of equipment sling be taken and the results reconciled with the equipment records al
least nice every two years. Any differences between quanlilies determined by the physical inspection and those
shown in the accounting records shall be investigated to determine Ilia causes of 111e difference. The recipient
shall, in connection with the inventory, verily the existence, current utilization, and continued need for the
equipment.
(4) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of Ilia
equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented; if 111e equipment
was owned by the Federal Government, the recipient shall promptly notify the Federal awarding agency.
(5) Adequate maintenance procedures shall be implemented to keep 111e equipment in good condition.
(6) Where the recipient is aulhorfzed or required to sell the equipment, proper sales procedures shall be
established which provide for competition to the extent practicable and result in Ilia highest possible return.
(g) When the recipient no longer needs the equipment, the equipment may be used for other activities in accordance
with the following standards. For equipment with a current per unit fair market value of $5000 or more, the recipient
may retain Ilia equipment lot other uses provided that compensation is made to the original Federal awarding agency
or its successor. The amount of compensation shall be computed by applying the percentage of Federal participation
in the cost of the original project or program to the current fair market value of the equipment. If the recipient has no
need for the equipment, the recipient shall request disposition instructions from the Federal awarding agency. The
Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements. If
no requirement exists within that agency, the availability of (lie equipment shall be reported to the General Services
Administration by the Federal awarding agency to determine whether a requirement for Ilia equipment exists in other
Federal agencies. The Federal awarding agency shall issue instructions to Ilia recipient no later than 120 calendar
days after the recipient's request and ilia following procedures shall govern,
(1) If so instructed or If disposition instructions are not issued within 120 calendar days after the recipient's
request, 111e recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed
by applying to the sales proceeds the percentage of Federal participation in [lie cost of Ilia original project or
program. However, the recipient shall be permitted to deduct and relain from Ilia Federal share $500 or len
percent of Ilia proceeds, whichever is less, for the recipient's selling and handling expenses.
(2) It Ilia recipient is instructed to ship the equipment elsewhere, the recipient shall be reimbursed by the Federal
Government by an amount which is computed by applying the percentage of Ilia recipient's participation in Ilia
cost of the original project or program to the current fair market value of the equipment, plus any reasonable
shipping or interim storage costs Incurred.
(3) If the recipient is Instructed to othervdse dispose of the equoinenl, the recipient shall be reimbursed by the
Federol awarding agency lug such costs incuuud to it:, rlisposiliom
xarl,;tel,nuse.Lov/omb/circulars al 10/ 10/11/2012
C11ZCLJLAKf\- lit) rL;vtJLli r - ,...- --
(4) The Paduod awarding allwicy may u:st:rve Ibu Igll III( It Ill Il it: hlle it, III(-. I•odond (-.,ovur arum ur it, Ir
(hurl pnrly nnmed by the Pelletal Guvertimmil wino, such Thud party c, ulbervasc Shgrblu undo uxishng slaune.:.
Strrlr urumslra ::hall be subiecl la the following standard,
(I) Ilia equipment shall be appiopunlely identified in Ihu award or otherwisti matte known la Ilia recipient in
writing.
(ii) The Foderal awarding agancy shall issue disposition instructions within 120 colundar days Slier receipt
of it final inventory. 'I he (mal mvenl0ty shall list Fill equipu1r!nl nrquirerl will, guml funds and federally -
owned equipment. II the Federal awarding agency fails In issue disposition instructions wilhin Ihu 120
calendar day period. the recipient shall ripply Ilia standards of Illis section, as appropriate.
(iii) When the Federal awarding agency exercises its right to lake title, the equipment shall be subject to the
provisions for federally -owner) equipment.
_.35:;uphliu:. Alm alae' urpuuo:rbir 1111 -Ar
(a) Title to supplies and other expendable properly shall vest in Ilia recipient upon acquisition. 11 [here Is a residual
inventory of unused supplies exceeding $5000 in total aggregate value upon termination or completion of Ilene project or
program and Ilene supplies are not needed for any other federally -sponsored project or program, Ilene recipient shall
retain file supplies for use on non -Federal sponsored activities or sell them, but shall, in either case, compensate the
Federal Government for its share. The amount of compensation shall be conmpuled in the some manner as for
equipment.
(b) The recipient shall not use supplies acquired with Federal funds to provide services to non -Federal outside
organizations for a lee that is less than private companies charge for equivalent services, unless specifically
authorized by Federal statute as long as Ilse Federal Government retains an Interest in the supplies.
_.36 Intangible properly.
(a) The recipient may copyright any wort: that is subject to copyright and was developed, or for which ownership was
purchased, under an award. The Federal awarding agency(ies) reserve a royally -free, nonexclusive and irrevocable
right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so.
(b) Recipients are subject to applicable regulations governing patents and inventions, including government -wide
regulations issued by the Department of Commerce at 37 CFR part 401, "Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements."
(c) The Federal Government has Ilia right to:
(1) obtain, reproduce, publish or otherwise use the data firs( produced under an award; and
(2) authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes.
(d) (1) In addition, in response to a Freedom of Information Act (FOIA) request for research data relating to published
research findings produced under an award that were used by the Federal Government to developing an agency
action that has Ilia force and effect of lav:, time Federal awarding agency shall request, and Ilene recipient shall provide,
within a reasonable time, Ilia research data so that they can be made available to Ilia public through Ilia procedures
established under the FOIA. 11 Ilia Federal awarding agency obtains the research dala sanely in response to n FOIA
request, the agency may charge the requester a reasonable fee equaling IN, full incremental cost of obtaining the
research data. This fee should reflect costs incurred by Ilia agency, the recipient, and applicable subrecipienis. This
fee is in addition to any fees the agency may assess under the FOV; (5 U.S.C. 552(n)(4)(A)).
, •, -1- /r,,,,h/r^imlllars a1 10/ 10/11/2012
l: U\ k. -LI Li'l l\ : i- r I, ,.— . , __ . . . .
(;,)'I he Irdhrwin!1 nnfinihuu:, apply lo, polposes of pnragrigrh (11) of Ile;. secoun.
(i) Rusurrch rlala n.. defined a:: the rr•.rorded far:lual mnlerml commonly accopled in the scrurmahc
rarrnnundy an necessrny to vididaie research III dnuls, but nal oily of the loflowmg: prr:huanary nnaiysus,
drafts of scientific paper, plans for fuhue research, peer.f ewews, at conunururatrons will colinogues. This
`recorder* malarial excludes physical objects (e.g.. laboralury samples). Research data orfs,, do not
include:
(A) Trade serrels. commercial infonualion, malurirds necessary lu he held confidential by it
researcher unlil Ihey are published, ur slolilar inlornmalron which is protected under low; and
(B) Personnel and medical inlorniniton and similar informalion the disclosure of which world
constitute a clearly unwarranled Invasion of personal privacy, such as informalion that could be used
to identify a particular person in i, research study.
(it) Publisher) is defined as either when:
(A) Research findings are published in a peer -reviewer) scientific or technical journal; or
(B) A Federal agency publicly and officially tiles the research findings in support of an agency action
that has the force and effect of law.
(III) Used by the Federal Government in developing an agency action that has /lie face and effect of law is
defined as when an agency publicly and officially tiles Ilene research findings in support of an agency action
that has the force and effect of law.
(e) Title to intangible properly and debt instruments acquired under an award or subaward vests upon acquisition in
the recipienl. The recipient shall use that property for the originally-aullmorized purpose, and the recipient shall not
encumber the properly without approval of the Federal awarding agency. When no longer needed for the originally
authorized purpose, disposition of the intangible property shall occur in accordance with the provisions of paragraph
—.34(g).
_.37 I•rcpeny bust reralionslrip Real property, equipment, intangible property and debt instruments that are
acquired or improved with Federal funds shall be held in bust by the recipient as trustee for the beneficiaries of the
project or program under which the property was acquired or improved. Agencies may require recipients to record
liens or other appropriate notices of record to indicate that personal or real properly has been acquired or improved
With Federal funds and that use and disposition condflions apply to the properly.
Procuremenl Standards
_.40 Purposc o! procuremen! slandurds.. Sections -41 through _.40 set forth standards for use by recipients in
establishing procedures for the procurement of supplies and other expendable property, equipment, real properly and
other services with Federal funds. These standards are furnished to ensure that such materials and services are
obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive
orders. No additional procurement standards or requirements shall be imposed by the Federal awarding agencies
upon recipients, unless specifically required by Federal stalule or executive order or approved by OMB.
_.41 Rcicipioni rezponsilrililiec The standards contained in this section do not relieve the recipient of the contractual
responsibilities arising under Its conlracl(s). The recipient is Ilene responsible authority, without recourse to the Federal
awarding agency, regarding the settlement and satisfacfion of all contractual and administralive issues arising out of
procurements entered info in support of an award or olher agreement. This Includes disputes, claims, protests of
award, source evaluation or other mailers of a contractual nature. Matters concerning violation of statute are to be
referred to such Federal, Slate or local authority as may have proper jurisdiction.
_.42 t;r a:o: of r unr:uc! The recipient shall mainlaum written standards of conduct governing the performance of its
employees engaged in Ilene award and administralion of contracts. No employee, officer, or agent shall participate in
the selection, award, or administration of a contract supported by Federal funds if a real or apparent conflict of interest
would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her
immedinlr: family, his or her pariner, or an organization which employs of is about In employ may of the parlres
indicated herein, hes a financial or other interest in file firm selected for an award. The officers, employees, and agents
of the recipient shall neither solicit nor accept grmutties, favors, or anything of monetary value from contractors, or
parties to subagreenmenls. However, recipienl., may set standards for siluafions in which the financial interest is not
m ,....rr-........ ... h;r._,hn,u•� rrnv/mail/r,it•cu�d1'S a] ] (V 10/11/2012
l1At,-LIr.r u. . , , , . .. __.
a;ub::ImduJ of Ibr: ,ylll c, :Irl Illlsollclled IIL'fll of Ilolllllall visit IV. Ir v 51a11(IiIIdS of L(,IWoo Shall pu,wdn If ill:xgllnauy
ucenu. lu Le npphed for violations Ill sucb stma irate, by aihce::, unlpluymn.. of agii1w. ul IhL Iuupwill
—.43 l.l:uy v:m1,:, All procuremenl bansachonn shall be coloducled in is manner ie provide, Its the mnx mini extenl
pracllcal. Opel and bee compelilluu. The fecllaenl shall bL afen h, ullllmizabonal conflicts of Inlol'esl as well ar.
Ifalwolllpellllvu• plrlcllr.LS "111011j) G011lnrclarr) Miss stilly resirlcl or r-liminale GIfllpellholl Or ollIL•fw15L Ietilmio Itude. Ill
order In ensure olljecllvL contractor performanco find e'limillale Unfair cornpelllive advafllage, contractors Ilial devolup
or draft specifications, requirement., statements of work, iovilalions for bids rndlor requests for proposals shall Jit:
exciudod from compelinu ler such procurenle ts. Awards shall be made to the bidder or olleror whose bid (a offer is
responsive to Ilia solicitation and is most advindayeous Io the recipient, price, quably and other factors considered.
Solicilllbons Shap clLllrly set lorlh till fequaemenls that life bidder or offeror shall fulfill aI order ler the bid of 011e to be
Lvaluated by the recipient. Any and fill bids Of ones play Jill wjecled when it is in OIL mcipienfs inferesl to do so.
_.44 1 •mclo mmad pn,l.r dol r.:
(a) All rocipienls shall establish wrillen procurement procedures. These procedures shall provide for, all if minimum,
Ilial (1), (2) rind (3) apply.
(1) Recipients avoid purchasing unnecessary items.
(2) Where appropriate, an analysis is made of lease and purchose alternatives to determine which would be Ilse
most economical and practical procurement for 111e Federal Government.
(3) Solicitations for goods and services provide for all of the following.
(f) A clear and accurate description of the technical requirements for the material, product or service to be
procured. In competitive procurements, such a description shall not contain features which unduly restrict
competition.
(it) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or
Proposals.
(iii) A description, whenever practicable, of technical regtiiremenis in terms of functions to be performed or
performance required, including the range of acceptable characteristics or minimum acceptable standards.
(iv) The specific features of "brand name or equal" descriptions that bidders are required to meet when
such items are Included in the solicitation.
(v) The acceptance, to the extent practicable and economically feasible, of products and services
dimensioned in the metric system of measurement.
(vi) Preference, to the extent practicable and economically feasible., for products and services that conserve
natural resources and protect the environment and are energy efficient.
(b) Positive efforts shall be made by recipients to Utilize small businesses, nlinorityowned firms, and women's
business enterprises, whenever possible. Recipients of Federal awards shall lake all of the following steps to further
this goal.
(1) L•nsum that small businesses, ntineityuvaiLd firms, and women:: business enterprises ore used to the fullest
Ichcable.
am/Mi-fib/circulars a110/
10/11/2012
(/.) Makn ullornmhnn on Inrlllconlnnl uppollunlou;: avmlahle alld inNultpf 111111! baffle';: lot pu1131aLe;, illlll
landf lcts It, wwourage, Imd lacilluilu paillopabau by ;aunt) bumanousu;., nunnnly-Iwvned blurs. and wouleli;.
I1IIRIIIUSS untupnsem:.
(3) Consider al OIL conlrocl piocess whelhelhllll9 competing lul Inrger contracts Intend to subcontract wilh small
businesses, moonily -owned firms, and wninen's business. erllerprisLs
(4) EfIcuumge conb'aeting will) consurliums of small busulessos, miuurily-owned bans and women.: busnless
enterprises when r) contract is Inn large lot rn1L el Ihuse firms to handle individunlly.
(5) Use file services atilt assistance, as appropriate, of such organtzolions as the Small Business Administration
and file Department of Commerce's Minority Business Development Agency in the solicitation anal utilization of
small businesses, minority- owned firms and women's business enterprises.
(c) The type of procuring instruments used (e.g., fixer) price contracts, cost reimbursable contracts, purchase orders,
and incentive contracts) shall be delernuned by the recipient but shall be appropriate for the particular procurement
and for promoting the best interest of the program or project involved. The "cosi-plus-a-percenlage-of-cosi" or
"percentage of construction cost' methods of contracting shall not be used.
(d) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully
under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as
contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary
resources. In certain circumstances, contracts with certain parties are restricted by agencies' inlplememalioll of E.D.s
12549 and 12669, "Debarment and Suspension."
(e) Recipients shall, on request, make available for the Federal awarding agency, pre -award review and procurement
documents, such as request for proposals or Invitations for bids, independent cost estimates, etc., when any of the
following conditions apply.
(1) A recipient's procurement procedures or operation fails to comply with the procurement standards in the
Federal awarding agency's implementation of this Circular.
(2) The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C. 403 (11) (currently
$25,000) and is to be awarded without competition or only one bid or offer Is received in response to a
solicitation.
(3) The procurement, which is expected to exceed the small purchase threshold, specifies a "brand name"
Product.
(4) The proposed awarq over the small purchase Ihreshoid is to be awarded In other than the apparent low
bidder under a sealed bid procurement.
(5) A proposed contract modification changes the scope of a contract or increases the contract amount by more
then the amount of the small purchase threshold.
Ab I In! wok Ur., 1:n:rir:.a Some lune of cost ul price Analysis shall be Mads, ati d documented u) the
procuramem files In connection will every procluen)enl r)rliun. P1ice analysis luny LL ALcungllished in voliuus vrays,
including the comparison of price quotalions submitted, market prices and similar indicia, togelliel with discounts. Cost
analysis is the review: and ovndualion of each element of cost to determine reasonableness, allornhifity and
allowability.
I ,, ..//11.11,.,, ,,,h;,,�),r,t�P cr()\r/o111b/circulars al 10/ 10/11/2012
..... A(1 1 :,.1 l.1, •,I :, , (.nl: I'rar. uu:n lural lerord:, and bluo 1w pIIIclu im; al uxcn.: , of Iln< bel If III pit 10 last, If It I:SIIIIhI
::hall if 11 Ie It It. Ioliawa lg ala If III (a) base. Ira (:unllif; till m lcreun. (b) pe;lihraInm lel luck u1 romqu+hnoI, wl
Ln111peI111VL• bl(k in ollts:. aro nal nblainrd, anti ((:) base. lel awm(I cosi fit pact:.
wmum A system (w COI III net adm ul uslimitai shall In: nunnuom:d if, munure ronlraclm
conlbrnnmrc with Ihu Irani%, condlhuns and specilliAloix. of life corllfacl intif la ellsuly rlrlt•.(IIIIIIe find Wifely lulluw III,
of all purchnses. Itaciplenls %))fill evaluate contraclur perlumiance, rind document, as appropriate, whelhot conlraclurs
have mel the leans, conditions and specillenlions of the contract.
The recipient shall ulchalu, in addition In provisions Io define if sound mid complete
agmainunl, the. following provisions in nil contracts Thu following prowstunc shall rllsu be applied Ili subconaacls.
(a) conlrncls in excess of Itle small purchase lhreshold shall conlain conifflclual provisions or condflions Ilial allow fol
admintrwalive, conlroclual, or legal remedies in inslances in which if contractor wnlnles or breaches the controcl
tern::, and provide for such remedial aclions as, may be appropriale.
(b) All contracts in excess of the small purchase Ihreshold shall contain suitable provisions Int termination by the
recipient, including the manner by which lenninalion shall be affected and the basis for settlement. In addition, such
conlrncls shall describe conditions under which the contract may be larminnled for default as well as conditions where
the contract may be lerminated because of circumstances beyond the control of the contractor.
(c) Except as otherwise required by statute, an award Ilial requires the contracting (or subcontracting) for construction
or facility improvements shall provide lot IIIc recipient to follow Its own requirements relating to bid guaranleos,
performance bolds, and payment bonds unless the conslruclion contract or subcontract exceeds $100,000. For Ihosc
contracts or subcontracts exceeding $100,000, Ilse Federal awarding agency may accept Ilse bonding policy and
requirements of Ilse recipient, provided the Federal awarding agency has made a determination Ileal the Federal
Government's interest is adequately protected. II such a determination Iles nol been made. Ilse minimum requirements
shall be as follows.
(1) A bid guarantee from each bidder equivalent to live percent of the bid price. The "bid guarantee" shall consist
of a firm commitment such as a bid bond, certilied check„ or other negotiable instrument accompanying a bid as
assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be
required within the lime specified.
(2) A performance bond on the pad of the contractor for 100 percent of the contract price. A "performance bond" '
is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such
contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond' is one
executed in connection with a contract to assure payment as required by statute of all persons supplying labor
and material in the execution of the work provided for in the contract.
(4) Where bonds are required in the situations described herein, the bonds shall be obtained from companies
holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, "Surely Companies Doing
Business with the United Stales."
(d) All negotiated contracts (except those lot less than the small purchase threshold) awarded by recipients shall
include a provision to the effect that the recipient, the Federal awarding agency, the Comptroller General of the United
Slates, or any of their duly authorized representatives, shall have access to any books, documents, papers and
records of the contractor which are directly pertinent to a specific program for the purpose of making audits,
examinations, excerpts and transcriptions.
(e) All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement
provisions of Appendix A to this Circular, as applicable.
Reports and Records
_.501'utpusu u' leprl I: unci wt;oirk Sections _51 through _.53 set forth the procedures for monitoring and
reporting on the recipient's financial and program performance and the necessary standard reporting forms. They also
set forth record retention requirements.
_.51 1,4oudutew rinf. ropudagl pI t:}nr,w );eli(aw:nru•
(a) Recipients are responsible for managing and monitoring each project, program, subaward, function or activity
supposed by Ilia award. Recipients shall munilur subawards lit ensure subiecipients have mel the nudil requirements
as delineated in secliwl .26.
(b) The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided fn paragraph._11(f), performance reports shall not be requited mute hequenlly Ihan quarterly
or, less frequency Ihan annually. Annual reports shall be due 90 calendar (lays after the gran) year: quarterly or senii-
--.... —.1-4-1,-11 op (if)� nmh/circulars a1 10/ 10/11/2012
arillual ILprm: raoill be lilt(::511 dilyn allul Ihe,upunlnll poilod The f m nal awiudanl a{fen(:y only r:gltfm annual
,upon:, bolo((: If annivunsury dalw. of aadl,pla vum avard:: it, ]IN I M Ihustr Irnfuuulta:nl:,. the. land pellultnana:
ruports air. due 1111 raleudiu day:, allel the expual"m of Ircuninanun nl Il)(: awnrl.
(c) It inappropriale, a Irnul leclmicirl Of performance repurl shall not be required offer completion of the project.
(d) When required, pedorntance mporlr: sliall generally contain, for each award, brief information on each of the
following.
(1) A comparison at nclual accomplishments will) the goals and objectives established for the period, the findings
of the invesligalor, or both. Whenever approprinle and the output of programs or projects can be. readily
quantified, such quunlilalive data should be felaled to cost data for computation of unit costs.
(2) Reasons why established ,goals ware not mel, it appropriate.
(3) Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high
unit costs.
(e) Recipients shall not be required to submit more than the original and Iwo copies of performance reports.
(I) Recipients shall immediately notify the Federal awarding agency of developments that have a significant impact on
file award -supported activities. Also, notification shall be given in the case of problems, delays, of adverse conditions
which materially impair the ability to rneet the objectives of the award. This notification shall include a statement of [lie
action taken or contemplated, and any assistance needed to resolve the situation.
(g) Federal awarding agencies may make site visits, as needed.
(h) Federal awarding agencies shall comply with clearance requirements of 5 CFR part 1320 when requesting
performance data from recipients.
_.52 f'inanrial rrponintf.
(a) The following forms or such other forms as may be approved by OMB are authorized for obtaining financial
information from recipients.
(1) SF -269 or SF -269A, Financial Status Report.
(i) Each Federal awarding agency shall require recipients to use the SF -269 or SF -269A to report the status
of funds for all nonconstruclion projects or programs. A Federal awarding agency may, however, have the
option of not requiring the SF -269 or SF -269A when the SF -270, Request for Advance or Reimbursement,
or SF -272, Report of Federal Cash Transactions, is determined to provide adequate information to meal its
needs, except that a final SF -269 or SF -269A shall be required at the completion of the project when the
SF -270 is used only for advances.
(if) The Federal awarding agency shall prescribe whether the report shall be on a cash or accrual basis. If
the Federal awarding agency requires accrual information and the recipient's accounting records are not
normally kept on file accrual basis, the recipient shall not be required to convert its accounting system, but
shall develop such accrual informalion Through best estimates based on an analysis of the documentation
on hand.
(fit) The Federal awarding agency shall determine [lie frequency of the Financial Status Report for each
project or program, considering the size and complexity of life parlicufar project or program. However, file
report shall not be required more frequently than quarterly or less frequently than annually. A final report
shall be required at the completion of the agreement.
(iv) The federal awording agency shall require recipients to submit the SF -269 or SF -269A (an original and
no more Oran Iwo copies) no later than 30 days alter the end of each specified reporting period for quarterly
and semi-annual reports, and 90 calendar days for annual and final reports. Extensions of reporting due
dales may lie approved by the I-edmal awarcbng agency upon iequesl of lire recipient.
(2) SF -7.72, Report of Federal Cash Transactions.
' " - -// ......... ,.> r w/nlnh/circulars al 10/ 10/11/2012
(I) When loud:: all: ruiv:au.ud w wriplene: the h edmml awanluu1 lapsed• shall le(plll(I WWI) tLLg11L'lll II,
suenul the $P-; %? and. whun net:L.:au y. If:; cuntrnualiou ahuLl. 51 -Mn the I-i-deral nw;uthl@I agent:1•
:;hall use Thr.. reporl to moniln( r:ur:h mlwelced lu Iuupeink. and lu oblaur dlsbursunwnl inlwmalmu lut
cath ngleeln :nr Willi lilt: rec phials
(ii) F ederal nwclydetg agencim. may legume forecast:: of Pelletal cash Iequilenrenls ill Thu "Renxuks"
sucluxr of Thu report.
(fit) When practical and deelloul necessary, Federal awarding agencies: may IegWre recipienlu lu repurl in
the "Remarks" section the tnxnml of cash advances received fn excess at Three (lay:,. Recipients strait
provide short norrabvL expienalions of action:: luken to reduce the excess Irrllances.
(iv) Recipients slmll be requiro(I to submit 1101 more then the original and Iwo copies of lire SF -272 15
calendar days following Thu end of each gunner. The Federal awarding agencies may require a monthly
report from those recipients receiving advances totaling $1 million or more per year.
(v) Federal awarding agencies may waive the requirement for submission of the SF -272 for nny one of the
following reasons: (1) When monthly advances do not exceed $25,000 per recipient, provider) that such
advances are monitored through other forms contained in this section; (2) If, in Ilia Federal awarding
agency's opinion, the recipient's accounting controls are adequate to minimize excessive Federal
advances; or, (3) When the electronic payment mechanisms provide adequate data.
(b) When the Federal awarding agency needs additional information or more frequent reports, the following shall be
observed.
(1) When additional information is needed to comply Willi legislative requirements, Federal awarding agencies
shall issue instructions to require recipients to submit such information under the "Remarks" section of lire
reports.
(2) When a Federal awarding agency determines that a recipient's accounting system does not meet the
standards in Section _.21, additional pertinent information to further monflor awards may be obtained upon
written notice to the recipient until such lime as the system is brought up to standard. The Federal awarding
agency, in obtaining this information, shall comply with report glearance requirements of 5 CFR pan 1320.
(3) Federal awarding agencies are encouraged to shade out any line Item on any report it not necessary.
(4) Federal awarding agencies may accept the identical information from the recipients in machine readable
formal or computer printouts or electronic outputs in Ileu of prescribed formals.
(5) Federal awarding agencies may provide computer or electronic outputs to recipients when such expedites or
contributes to the accuracy of reporting.
_.53 Re(enfion raw. amts, requitenx:nln tut rrcnrflc.
(a) This section sets forth requirements for record retention and access to records for awards to recipients. Federal
awarding agencies shall not impose any other record retenlion or access requirements upon recipients.
(b) Finlincinl records, supporting documents, statistical records, and all other records pertinent to an award shall be
retained for a period of three years front the dale of submission of the final expenditure report or, for awards that are
renewed quarterly or annually, from the dale of the submission of the quarterly or annual financial report, as authorized
by the Federal awarding agency. The only exceptions are Ilia following.
(1) It any litigation, claim, or audil is started before the expiration of the 3 -year period, the records shall be
retained until alt litigation, claims or audit findings involving the records have been resolved slid final action
taken.
(2) Records for real property and equipment acquired With Federal funds shrill be relained for 3 years offer final
disposition.
(3) When records are transferred to or maintained by the Federal awarding agency, the 3 -year retention
lequilemenl is not *applicable to the recipient
),ern,• /urvrW.Wlhitell ausej"Ov/urnb/circulars @110/ 10/11/2012
(A) Indu wA rasl rnlr: proposal:,, cusl ollocaunm, pL•ur , ell.. I sperihr:d it. palm If irph..--.b:lllr)
((:) Golaws of Wrgrraf reIXN(k1 may bu subshluled for Tho original records it aulhunzed by lilt- F udural uwiudrug ayrnry
(d) The Federal awarding agency shell request Inmsler of cenaia records lu its custody from recipients when it
determiner, that Ibe records possess Iong term retention value. HoWever, in Order to avoid dupticale iecordkeeping, it
Fedr:rd rlwradmig ligancy may make arraagements tot recipients to retain tiny records that are confinuously needed
for joint use.
(a) The Federal awarding agency, the Inspe:lor General, Comptroller General of the United State:,, or any of Iheu duty
nulhorized representatives, have the right of hnrely and unrestricted access Io any books, documents, papers, or other
records of recipients that are pertinent to the awards, in order to make audit:, examinations, excerpts, Ifonscripis and
copies of such documents. This righl also includes Timely and reasonable access to it racipient's personnel for the
purpose of interview and discussion related to such documents. The rights of access in this paragraph are not limiter)
to the required retention period, but shalt Iasi as long as records are retained.
(I) Unless required by statute, no Federal awarding agency shall place restrictions on recipients that limit public access
to the records of recipients that are pertinent to an award, except when the Federal awarding agency can demonstrate
that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom
of Information Act (5 U.S.C. 552) TI file records had belonged to file Federal awarding agency.
(g) Indirect cost rale proposals, cost allocations plans, etc. Paragraphs (g)(1) and (gx2) apply to the following types of
documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any
similar accounting computations of the rale at which a particular group of costs is chargeable (such as computer usage
chargeback rates or composite fringe benefit rates).
(1) If submitted for negotiation. If the recipient submits to the Federal awarding agency or Ilse subrecipient
submits to the recipient the proposal, plan, or other computation to form file basis for negotiation of the rate, then
the 3 -year retention period for its supporting records slams on the dale of such submission.
(2) If not submitted for negotiation. If the recipient is not required to submit to the Federal awarding agency or the
subreciptenl is not required to submit to the recipient the proposal, plan, or other computation for negotiation
purposes, then the 3 -year retention period for the proposal, plan, or other computation and Its supporting records
starts at the end of the fiscal year for other accounting period) covered by the proposal, plan, or other
computation.
Termination and Enforcement
_.60 Purpose of termination and enforcement. Sections —.61 and _.62 set forth uniform suspension,
ferminalion and enforcement procedures.
61 Termination.
(a) Awards may be terminated in whole or in pan only If (1), (2) or (3) apply.
(1) By file Federal awarding agency, if a recipient materially fails to comply with the terms and conditions of an
award.
(2) By the Federal awarding agency with the consent of the recipient, in which case the Iwo parties shall agree
upon the termination conditions, including the effective date and, in The case of partial termination, file portion to
be terminated.
(3) By the recipient upon sending to file Federal awarding agency written notification selling forth the reasons for
such lermination, the effective dale, and, in [lie case of partial termination, [lie portion to be terminated.
However, if the Federal awarding agency determines in the case of partial ferminalion That Ilse reduced or
modified portion of the grant will not accomplish the purposes for which the grant was made, it may terminate Ilia
grant fn its entirely under either paragraphs (a)(1) or (2).
(b) If costs are allowed andel an award, the responsibitilies of the recipient referred to in paragraph _.71(a),
iuctuding Ihosu for property mnnngemenf a. applicable, shall be. considered in the termination of the award, and
provision shall be made for continuing responsibilities of the recipient after lerminntion, as appropriate..
.G21 •nun.c:�n�:r,:
,,.....,,.,—1'itnlhrntcr (rnv/n1Tlb/circulars a] 10/ 10/1 1/2012
(a) I« onedm:: fol nonconmphmu:o. II a mciplialn lonleltally Inds la roftgdy will, till! imile. told 11,11d11111In. Ill int owald,
whelhm ;;h11Ull Ill it I wimill suillow. Iollolallon, 11:rsolllniee, opplicalloll, of Notice M owald. till! I•ellelill rlwillrhlltl
agency Indy, ui addnaon to Imposing any 19 Ihu (pectin eundnhme. oulluled to Seclitxl _.14, hike oil(- of nuxe al Ihr.
following aclitum, as approphale in the cOcueisamces
(1) '1 rnnporarily Willhold rash paynfrail:. pending con eclkal of the debeurnry by Ihu: mcipienl of amore savers
wihlrceinwil aclion by Ilia Federal awrlyding nl(JL'IiCy.
(2) Disallow (trial is, (lefty boll, use of. funds and any applicable malching credit for) till or part of the cost of Ilia
nchwly of fiction 1101 Of compliance.
(3) Wholly in partly suspend Of lenninme the rurrenf award.
(4) Withhold further awards for IIIc projerl or program.
(5) Take other remedies Ihm may be legally available. -
(b) hlearings and appeals. In laking an enforcemenl action, Ilia awarding agency shag provide the recipient an
opponunily for hearing, appeal, or other administrative proceeding to which the recipient is entitled under any statute
or regulation applicable to Ilia action involved.
(c) Elfecis of suspension and termination. Costs of a recipient resulting from obligations incurred by the recipient
during a suspension or oiler termination of an award are nor allowable unless Ilse awarding agency expressly
authorizes them in Ilia notice of suspension or lerminalion or subsequently. Other recipient costs during suspension or
after lerminalion which are necessary and not reasonably avoidable are allowable ff (1) and (2) apply.
(1) The costs result from obligations which were properly incurred by [lie recipient before ilia effective dale of
suspension or termination, are not in anticipation ofit, and in the case of a lerminalion, are noncancellable. <
(2) The costs would be allowable i1 the award were nor suspended or expired normally at the end of Ilia funding
period in which the termination lakes effect.
(d) Relationship to debammenl and suspension. The enforcement remedies Identified in this section, including
suspension and lerminalion, do not preclude a recipient from being subjecl to debarment and suspension under E.O.s
12549 and 12089 and the Federal awarding agency implementing regulations (see Section _.13).
SUBPART D - After -tile -Award Requirements
_.70 Purpose. Sections _711 through _.73 contain closeout procedures and other procedures for subsequent
disallowances and adjustments.
71 Closeout procedurcc
(a) Recipients shall submit, wilhin 90 calendar days after the dale of completion of the award, all financial,
performance, and other reports as required by the terms and conditions of Ilia award. The Federal awarding agency
may approve extensions when requested by the recipient.
(b) Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred
tinder Ilia award not later than 90 calendar days after the funding period or Ilia dale of completion as specified in the
terms and conditions of the award or in agency implementing Instructions.
(c) The Federal awarding agency shall make prompt payments to a recipient for allowable reimbursable costs under
[lie award being closed out.
(d) The recipient shall promptly refund any balances of lrnabligaled cash Ilial Ilene Federal awarding apency has
advanced or paid and trial is not authorized to be retained by the recipient lot use in other projects. OMB Circular A-
129 governs unreturned amounts Ilial become delinquent debts.
(e) When authorized by the terms and conditions or Ilie award, [lie Federal awarding agency shall mnke a settlement
for any upward or downward adjustments to the Federal share of costs eller closeout reports are received.
(1) The recipient shall account for any real and personal property acquired with Federal lunds or received from Ilia
Federal Government in accordance with Sections _,31 through _,37.
(9) Ill the evanl o lural audit has not been performed prior to ilia cloreoul of an award, the Federal awarding agency
shall retain the right le recover an appropriate: amounl filler fully considering the rerommendnhnns no disallowed costs
resulting hill the filial aodil.
_.72 f:.lhbrn.l,1 ru i•;Ip,F.lmu•I: and :n a,nnen w:.J:Oau•L:Id,c:.
..,.._,rr, .....,,,,,),;,,j,r `, -ml/nmb/cIrcula)'S 3110/ 10/11/2012
1.11\l.•vLru. r 1 . 1
(it) 'fit(! closumn rat 7n1 invaid doe; n11r nfiocl any of Ill) luauwrng
(1) The nglll of the hr:dwol owaululp agency If) I11nallow coni:. rind 1):glvha 11111(1: oll the I1a81:, ill 11 Inde mall or
other review.
(2)'1 he oblipneon of the recipient to return oily lunds clue as a1 result of lacer reluucla, corrections, or other
transactions
(3) Audit requirements in Seclion _.26
(4) Property manngon)enl raquiremeMs in Saclions ,_..31 Ihrou(Ih __.37
(5) Records ni le tion as required in Seeh(a1 _.53.
(b) Aller closeout of an award, it relationship oealtld under on award may be modified or ended in whole or in part
with the consent of the Federal awarding agency and the recipient, provided the responsibilities of Ila necipienl
referred to in paragraph _.73(a), including those for properly nlanagenlenl as applicable, are considered anti
provisions ride for co)linuing responsibilities of the racipienl, as appropriate.
73 Cnllachnrl el wu(ron:. alio
(a) Any funds paid to a recipient in excess of Ilse amount to which Ilse recipient is finally determined to be entitled
under Ilse terms and conditions of tine award constitute a debt to Ilse Federal Government. If not paid within a
reasonable period after the demand for payment, the Federal awarding agency may reduce the debt by (1), (2) or (3).
(1) Making an administrative offset against other requests for reimbursements.
(2) Withholding advance payments otherwise due to Ilse recipient.
(3) Taking other action permitted by statute.
(b) Except as olherwise provided by law, the Federal awarding agency shall charge interest on an overdue debt in
accordance wi0n 4 CFR Chapter II, "Federal Claims Collection Standards."
Appendix A
Contract Provisions
All contracts, awarded by a recipient including small purchases, shall contain the following provisions as applicable:
1. Equal Employment Opportunity - All contracts shall contain a provision requiring compliance with E.O. 11246,
"Equal Employment Opporlunily," as amended by E.O. 1075, 'Amending Executive Order 11246 Relating to Equal
Employment Opportunity;" and as supplemented by regulations at 41 CFR part 60, "Office of Federal Contract
Compliance Programs, Equal Employment Opportunity, Department of Labor."
2. Copeland "Anti -Kickback" Act (10 U.S.C. 074 and 40 U.S.C. 276c) - All contracts and subgrants in excess of
$2000 for construction or repair awarded by recipients and subreciptenis shall include a provision for compliance with
Ilia Copeland "Anti -Kickback" Ad (10 U.S.C. 074), as supplemented by Deportment of Labor regulations (20 CFR part
3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Pori by Loans or Grants
Irons Ilia United Stales"). The Act provides that each contractor or subrecipienl shall be prohibited from inducing, by
any means, any person employed in Zile construction, completion, or repair of public work, to give up any pad of the
compensation to which Ile is otherwise enlilled. The recipient shall report all suspected or reported violations to the
Federal awarding agency.
3. Davis -Bacon Act, as amended (40 U.S.C. 2760 to a-7) - When required by Federal program legislation, all
construction contracts awarded by Ilse recipients and subrecipienls of more than $2000 shall include a provision for
compliance with elle Davis -Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor
regulations (29 CFR pad 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and
Assisted Construction"). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate
not less Ihan the minimum wages specified in a wage determination made by the Secretary of Labor. In addition,
contractors shall be required to pay wages not less than unce a week. The recipient shall place n.copy of the current
prevailing wage decerninaliun issued by the Deportment of Labor in each solicitation and the aWar(f el 1) cnlllrael sI1)1II
be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported
violations to the Federal awarding ngency.
1.,.,.._. r7,,,,,,,,, „rh;,�hntnc� 17nWomb/circulars allo/ 10/11/2012
4. Contract work Halm. and Satiny Smndants Act (4o U.S.C. 327.333) - Whew appkcoulc, all routroca, awannnl
by roclpunus ar axru!;:. of 52000 to conslna:anr ronlrar.a: and al exaesr, of E:lS(Ifn lu other cunkacl:: that involve Ou:
eniployment Of mudliallm. or labuaem ::hall Include;' pruv,siaa for compliance with Seckniz 102 told '107 ill the
Contract Walk Harr:. and Solely lila ndards Art (40 I1.S.C. 327-333), a:: supph:muued by Uuparint:nl of Labor
nguthkons (20 CJ:J< part u). UIl(lu; Sucholl 10.! of the Act, each conbarlul shalt bo Inquired In ronprirte the wagas of
ovely mechanic and laborer oar the basis of it standard work weel: of 40 hours. Work in excess Of the standard wild:
weak is permissible provider) that the worker is compensated of a rate of flat las:: than 1 y> limes Iho basic late of pay
for all hour:: worked in excess of 40 hours in the work. week. Section 107 of the Act is applicable to construckon work
and provides That no laborer or machanic shall be required to work, in surroundings or under working cundillons Much
ala unsaniary, hazardous or dangerous. Those requiromenls du not apply to the purchases of supplies of maleriats fir
articles ordinarlly available On the Open nhnAel, ar conliarl:. for Iranapnnallon of Irnnsmission of intalligence.
5. Rights to Inventions Male Under a Contract or Agreement - Contracts or agreements for the perforncmce of
experimental, developmental, ar research wort, shall provide for the right:: of the Federal Government and tine recipient
in any reselling invention in accordance with 37 CFR part 401. "Rights In Inventions Marie by NonprofJl Organizations
ono Small Business Firm:: Under Governnnenl Grants, Contract!; and Cooperative Agreements' and tiny Inyfleunenting
regulations issuer) by the awarding agency.
6. Clonn Air Act (42 U.S.C. 7401 at seq.) and Iho Federal Water Pollution Control Act (33 U.S.C. 1251 el seq.),
as amended - Contracts and subgrants of nmourds in excess of $100,000 shall contain if provision that regrrires the
recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act
(42 U.S.C. 7401 at seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 at sell.). Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environrnental Protection Agency
(EPA).
7. Byrd AnfJ-Lobbying Annondmonl (31 U.S.C. 1352) - Contractors who apply or Will for an award of $100,000 or
more shall file the required certification. Each tier certifies to the tier above that it will not and Inas not used Federal
appropriated hinds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal conlrecl, grant or any other award covered by 31 U.S.C. 1352. Each leer shall
also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federalaward.
Such disclosures are forwarded from liar to lier up to the recipient.
0, Debarment and Suspens Jon (E.O.s 12549 and 12689) - No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in
accordance with E.O.s 12549 and 12689, "Debarment and Suspension." This list contains the names of parlies
debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or
regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
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10/11/2012
EXHIBIT E
CERTIFICATION REGARDING LOBBYING
Anti -Lobbying - On behalf of Triangle Area Network, of Beaumont, Texas, and to the
best of my knowledge and belief;
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of
it, to any person for influencing or attempting to influence an office 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 the Federal contract, grant,
loan or cooperative agreement, it will complete and submit Standard Form -LLL,
Disclosure Form to Report Lobbying, in accordance with its instructions, and
3. It will require that the language of paragraph 1 and 2 of this anti -lobbying
certification be included in the award documents for all subawards at all tiers
(including subcontracts, subgrants and contracts under grants, loans and
cooperative agreements) and that all subrecipients shall certify and disclose
accordingly.
TRIANGLE AREA NETWORK: ATTEST:
BY: BY:
mica VOTE or►omiculTT
BEAUMON*
AGREEMENT
BETWEEN THE CITY OF BEAUMONT
AND
TRIANGLE AREA NETWORK
f2r
c O +L Mous1w
OPPORTUNITY
This Agreement is made and entered into between the City of Beaumont, Texas,
hereinafter referred to as CITY, and Triangle Area Network, hereinafter referred to as
SUBRECIPIENT pursuant to the authority of Resolution 17-077, passed by the Beaumont City
Council on April 25, 2017. This assistance will be funded in whole by the U.S. Department of
Housing and Urban Development, Continuum of Care Program.
WHEREAS, City has designated the Department of Community Development Block
Grants Administration responsible for the administration of this Agreement and all matters
pertaining thereto; and;
WHEREAS, the Continuum of Care Program (CoQ is authorized by Title IV, subtitle F,
of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11403-
11407b). CoC is designed to provide rental assistance, in connection with supportive services for
hard -to -serve homeless persons with disabilities (primarily those who are seriously mentally ill;
have chronic problems with alcohol, drugs, or both; or have acquired immunodeficiency
syndrome (AIDS) and related diseases) and their families;
WHEREAS, the U.S. Department of Housing and Urban Development has awarded CITY
a grant in the amount of $146,744.00 under the FY2016 Continuum of Care TRA Program, grant
#TX0219L6E071609-TRA, to administer and provide tenant -based rental assistance (TRA) of
(17) scattered site units for a period of one year, and;
WHEREAS, in the FY16 grant CITY has engaged SUBRECIPIENT as the agency that
would administer the rental assistance subsidies provided under the program;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to
the mutual obligations and the performance and accomplishment of the conditions hereinafter
described.
1. TERM
Subject to the provisions of this Grant Agreement, the CITY will make funding assistance
available to SUBRECIPIENT upon execution of the Grant Agreement by both parties. The
grant period will extend from the 1 st day of February, 2017 through the 31 st day of January,
2018 unless sooner terminated in accordance with Section 25, Termination.
2. RESPONSIBILITIES
SUBRECIPIENT hereby accepts the responsibility for the performance of all services and
activities described as set forth in Exhibit A, and incorporated herein by reference, in a
satisfactory and efficient manner as determined by CITY, in accordance with the terms herein.
CITY will consider SUBRECIPIENT's Executive Officer to be SUBRECIPIENT's
representative responsible for the management of all contractual matter pertaining hereto,
unless written notification to the contrary is received from SUBRECIPIENT, and approved by
CITY.
Pursuant to receiving the equivalent amount of fund from the U.S. Department of Housing and
Urban Development, The City has allocated the sum of $146,744.00 to be expended under this
contract. Unless an amendment to this contract otherwise provides, that amount shall in no
event be exceeded and the City shall under no circumstance be required to pay in excess of
that amount.
The CITY'S CDBG Manager will be CITY'S representative responsible for the administration
of this Agreement.
3. CITY'S OBILIGATION
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred
pursuant and in accordance with the project budget attached hereto as Exhibit C and the
Statement of Work herein attached as Exhibit A and incorporated herein by reference.
Notwithstanding any other provision of the Agreement, the total of all payments and other
obligations made or incurred by CITY hereunder shall not exceed the sum of $146,744.00.
B. Measure of Liability. In consideration of full and satisfactory services and activities
hereunder by SUBRECIPIENT and receipt of a request for payment with appropriate
documentation of expenditures, CITY shall make payments to SUBRECIPIENT based
on the Project Budget attached hereto and incorporated herein for all purposes as Exhibit
C, subject to the limitations and provisions set forth in this Section and Section 7 of this
Agreement. Payments may be contingent upon certification of the SUBRECIPIENT'S
financial management system in accordance with the standards specified in OMB
Circular A-110, attached hereto as Exhibit D and incorporated herein by reference.
1. The parties expressly understand and agree that the CITY'S obligations under this
Section are contingent upon the actual receipt of adequate Shelter Plus Care (S+C)
funds to meet CITY'S liabilities under this Agreement. If adequate funds are not
available to make payments under this Agreement, CITY shall notify
SUBRECIPIENT in writing within a reasonable time after such fact has been
determined. CITY may, at its option, either reduce the amount of its liability, as
specified in Subsection A of this Section or terminate the Agreement. If S+C funds
eligible for use for purposes of this Agreement are reduced, CITY shall not be
liable for further payments due to SUBRECIPIENT under this Agreement
2. It is expressly understood that this Agreement in no way obligates the General
Fund or any other monies or credits of the City of Beaumont.
3. CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed or is subject to payment or reimbursement, from
any other source;
(b) was incurred prior to the beginning date, or, without prior approval from
CITY, after the ending date specified in Section 1;
(c) is not in strict accordance with the terms of this Agreement, including all
exhibits attached hereto;
(d) reimbursement from CITY has not been requested within 90 calendar days
following billing to SUBRECIPIENT, or termination of the Agreement,
whichever date is earlier; or
(e) is not an allowable cost as defined by Section 10 of this Agreement or the
project budget.
4. CITY shall not be liable for any cost or portion thereof which is incurred with
respect to any activity of SUBRECIPIENT requiring prior written authorization
from CITY, or after CITY has requested that SUBRECIPIENT furnish data
concerning such action prior to proceeding further, unless and until CITY advises
SUBRECIPIENT to proceed.
5. CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or
services.
4. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
A. SUBRECIPIENT understands that funds provided pursuant to this Agreement are funds
which have been made available to CITY by the Federal Government (U.S. Department of
Housing and Urban Development) under the Title IV, Subtitle F, of the Stewart B.
McKinney Homeless Assistance Act, as amended, in accordance with an approved Grant
Application and specific assurances. The foregoing is in no way meant to constitute a
complete compilation of all duties imposed upon SUBRECIPIENT by law or
administrative ruling, or to narrow the standards which SUBRECIPIENT must follow.
SUBRECIPIENT further assures and, certifies that if the regulations and issuances
promulgated pursuant to the Act are amended or revised, it shall comply with them, or
notify CITY, as provided in Section 23 of this Agreement.
SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements
of the Office of Management and Budget Circulars Nos. A-110, A-122, A-87 and A-133 as
applicable.
B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of
Texas, ordinances of the City of Beaumont and local program requirements.
C. SUBRECIPIENT is required to comply with the applicable uniform administrative
requirements as described in 24 CFR 582 and 24 CFR 582.400 subpart E Exhibit B, with
the exceptions noted below:
1. SUBRECIPIENT does not assume CITY'S environmental responsibilities
described at CFR 582.230; and
2. SUBRECIPIENT does not assume the CITY'S responsibility for initiating the
review process under the provisions of 24 CFR Part 582.
5. REPRESENTATIONS
A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to
any proper, appropriate and official motion, resolution or action passed or taken, to enter
into this Agreement.
B. The person or persons signing and executing this Agreement on behalf of
SUBRECIPIENT, does hereby warrant and guarantee that he, she, or they have been fully
authorized by SUBRECIPIENT to execute this Agreement on behalf of
SUBRECIPIENT and to validly and legally bind SUBRECIPIENT to all terms,
performances and provisions herein set forth.
C. CITY shall have the right, at its option, to either temporarily suspend or permanently
terminate this Agreement if there is a dispute as to the legal authority of either
SUBRECIPIENT or the person signing the Agreement to enter into this Agreement.
SUBRECIPIENT is liable to CITY for any money it has received from CITY for
performance of the provisions of this agreement if CITY has suspended or terminated this
Agreement for the reasons enumerated in this Section.
D. SUBRECIPIENT agrees that the funds and resources provided SUBRECIPIENT under
the terms of this Agreement will in no way be substituted for funds and resources from
other sources, nor in any way serve to reduce the resources, services, or other benefits
which would have been available to, or provided through, SUBRECIPIENT had this
Agreement not been executed.
6. PERFORMANCE BY SUBRECIPIENT
SUBRECIPIENT will provide, oversee, administer, and carry out all of the activities and
services set out in the Statement of Work, attached hereto and incorporated herein for all
purposes as Exhibit A, utilizing the funds described in the Project Budget, Exhibit C, attached.
hereto and incorporated herein for all purposes and deemed by both parties to be necessary and
sufficient payment for full and satisfactory performance of the program, as determined solely by
CITY and in accordance with all other terms, provisions and requirements of this Agreement.
No modifications or alterations may be made in the Statement of Work without the prior
written approval of the City's Community Development Grants Administrator.
7. PAYMENTS TO SUBRECIPIENT
A. Payments to SUBRECIPIENT. The CITY shall pay to the SUBRECIPIENT a
maximum amount of money totaling $146,744.00 for services rendered under this
Agreement. CITY will pay these funds on a reimbursement basis to the
SUBRECIPIENT within thirty days after CITY has received approved supporting
documentation of eligible expenditures. SUBRECIPIENT'S failure to request
reimbursement on a timely basis may jeopardize present or future funding.
Funds are to be used for the sole purpose of providing services described in the Statement
of Work herein attached as Exhibit A and based on the Project Budget herein attached
as Exhibit C.
B. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of
CITY'S request, any sum of money which has been paid by CITY and which CITY at
any time thereafter determines:
1. has resulted in overpayment to SUBRECIPIENT; or
2. has not been spent strictly in accordance with the terms of this Agreement; or
3. is not supported by adequate documentation to fully justify the expenditure.
C. Disallowed Costs: Upon termination of this Agreement, should any expense or change for
which payment has been made be subsequently disallowed or disapproved as a result of
any auditing or monitoring by CITY, the U. S. Department of Housing and Urban
Development, or any other Federal agency, SUBRECIPIENT will refund such amount to
CITY within ten working days of a written notice to SUBRECIPIENT, which specifies
the amount disallowed. Refunds of disallowed costs may not be made from these or any
funds received from or through CITY.
D. Reversion of Assets. Upon expiration of this Agreement, SUBRECIPIENT shall transfer
to the CITY any CoC/SPC funds on hand at the time of expiration and any accounts
receivable attributable to the use of CoC/SPC funds. If CITY finds that
SUBRECIPIENT is unwilling and/or unable to comply with any of the terms of this
Contract, CITY may require a refund of any and all money expended pursuant to this
Contract by SUBRECIPIENT, as well as any remaining unexpended funds which shall be
refunded to CITY within ten working days of written notice to SUBRECIPIENT to revert
these financial assets. The revision of these financial assets shall be in addition to any
other remedy available to CITY either at law or in equity for breach of this Contract.
SUBRECIPIENT represents and warrants that:
A. All information, reports and data heretofore or hereafter requested by CITY and furnished
to CITY, are complete and accurate as of the date shown on the information, data, or
report, and, since that date, have not undergone any significant change without written
notice to CITY.
B. Any supporting financial statements heretofore requested by CITY and furnished to
CITY, are complete, accurate and fairly reflect the financial condition of
SUBRECIPIENT on the date shown on said report, and the results of the operation for the
period covered by the report, and that since said date, there has been no material change,
adverse or otherwise, in the financial condition of SUBRECIPIENT.
C. No litigation or legal proceedings are presently pending or threatened against
SUBRECIPIENT.
D. None of the provisions herein contravene or are in conflict with the authority under which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or
agreement of SUBRECIPIENT.
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments
hereunder, and has taken all necessary action to authorize such acceptance under the terms
and conditions of this Agreement.
F. None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any
character, except for current taxes not delinquent, except as shown in the financial
statements furnished by SUBRECIPIENT to CITY.
G. Each of these representations and warranties shall be continuing and shall be deemed to
have been repeated by the submission of each request for payment.
9. COVENANTS
A. During the period of time that payment may be made hereunder and so long as any
payments remain unliquidated, SUBRECIPIENT shall not, without the prior written
consent of the Community Development Administrator or his authorized representative:
1. Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the
assets of SUBRECIPIENT now owned or hereafter acquired by it, or permit any
pre-existing mortgages, liens, or other encumbrances to remain on, or attached to
any assets of SUBRECIPIENT which are allocated to the performance of this
Agreement and with respect to which CITY has ownership hereunder.
2. Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or
claims for money due or to become due.
3. Sell, convey, or lease all or substantial part of its assets.
4. Make any advance or loan to, or incur any liability for any other firm, person, entity
or corporation as guarantor, surety, or accommodation endorser.
5. Sell, donate, loan or transfer any equipment or item of personal property purchased
with funds paid to SUBRECIPIENT by CITY, unless CITY authorizes such
transfer.
B. SUBRECIPIENT agrees, upon written request by CITY, to require its employees to,
attend training sessions sponsored by the Community Development Division.
10. ALLOWABLE COSTS
A. Costs shall be considered allowable only if incurred directly and specifically in the
performance of and in compliance with this Agreement and in conformance with the
standards and provisions of Exhibits A and C.
B. Approval of SUBRECIPIENT'S project budget, Exhibit C, does not constitute prior
written approval, even though certain items may appear herein. CITY'S prior written
authorization is required in order for the following to be considered allowable costs:
1. CITY shall not be obligated to any third parties, including any subrecipients of
SUBRECIPIENT, and CITY funds shall not be used to pay for any contract
service extending beyond the expiration of this Agreement.
2. Out of town travel.
3. Any alterations or relocation of the facilities on and in which the activities specified
in Exhibit A are conducted.
4. Any alterations, deletions or additions to the Personnel Schedule incorporated in
Exhibit C.
5. Costs or fees for temporary employees or services.
6. Any fees or payments for consultant services.
7. Fees for attending out of town meetings, seminars or conferences.
Written requests for prior approval are SUBRECIPIENT'S responsibility and shall be
made within sufficient time to permit a thorough review by CITY. SUBRECIPIENT
must obtain written approval by CITY prior to the commencement of procedures to solicit
or purchase services, equipment, or real or personal property. Any procurement or
purchase which may be approved under the terms of this Agreement must be conducted in
its entirety in accordance with the provisions of this Agreement.
C. Equipment purchased by SUBRECIPIENT will be affixed with an asset tag by a
Community Development representative and will remain in inventory for a period of five
(5) years. During inventory period the equipment, belonging to the Department of
Housing and Urban Development is to be used to carry out the proposed activities
described in the Statement of Work, Attachment A, and as such may not be sold, donated,
or destroyed. After the inventory period, ownership of the equipment will revert to the
SUBRECIPIENT with all rights thereof.
11. PROGRAM INCOME
A. For purposes of this Agreement, program income means earnings of SUBRECIPIENT
realized from activities resulting from this Agreement or from SUBRECIPIENT'S
management of funding provided or received hereunder. Such earnings include, but are
not limited to, income from interest, usage of rental or lease fees, income produced from
contract -supported services of individuals or employees or from the use or sale of
equipment or facilities of SUBRECIPIENT provided as a result of this Agreement, and
payments from clients or third parties for services rendered by SUBRECIPIENT under
this Agreement.
B. SUBRECIPIENT shall maintain records of the receipt and disposition of program income
in the same manner as required for other contract funds, and reported to CITY in the
format prescribed by CITY. CITY and SUBRECIPIENT agree, that any fees collected
for services performed by SUBRECIPIENT shall be used for payment of costs associated
with service provision. Revenue remaining after payment of all program expenses for
service provision shall be considered Program Income and shall be subject to all the
requirements of this Agreement and the regulations found at CFR 24, Section 570.504.
C. SUBRECIPIENT shall include this Section in its entirety in all of its sub -contracts which
involve other income producing services or activities.
D. It is SUBRECIPIENT'S responsibility to obtain from CITY a prior determination as to
whether or not income arising directly or indirectly from this Agreement, or the
performance thereof, constitutes program income. SUBRECIPIENT is responsible to
CITY for the repayment of any and all amounts determined by CITY to be program
income, unless otherwise approved in writing by CITY.
12. MAINTENANCE OF RECORDS
A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate,
and complete disclosure of the status of funds received under this Agreement, in
compliance with the provisions of Exhibit B, attached hereto, and with any other
applicable Federal and State regulations establishing standards for financial management
including OMB circulars A-87, A-110, A-122 and A-133 as applicable; Title 24 CFR
Section 582 as it pertains to costs incurred, audits, program income, administration and
other activities and functions. SUBRECIPIENT'S record system shall contain sufficient
documentation to provide in detail full support and justification for each expenditure.
Nothing in this Section shall be construed to relieve SUBRECIPIENT of fiscal
accountability and liability under any other provision of this Agreement or any applicable
law. SUBRECIPIENT shall include the substance of this provision in all subcontracts.
B. SUBRECIPIENT agrees to retain all books, records, documents, reports and written
accounting procedures pertaining to the operation of programs and expenditures of funds
under this Agreement for five years after all funds have been expended.
C. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of
responsibility for retaining accurate and current records which clearly reflect the level and
benefit of services provided under this Agreement.
D. At any reasonable time and as often as CITY may deem necessary the SUBRECIPIENT
shall make available to CITY, the U. S. Department of Housing and Urban Development,
or any of their authorized representatives, all of its records and shall permit CITY, the U.
S. Department of Housing and Urban Development, or any of their authorized
representatives to audit, examine, make excerpts and copies of such records, and to
conduct audits of all contracts, invoices, materials, payrolls, records of personnel,
conditions or employment and all other data requested by said representatives.
13. REPORTS AND INFORMATION
At such times and in such form as CITY may require SUBRECIPIENT shall furnish
such statements, records, data and information as CITY may request and deem pertinent to
matters covered by this Agreement.
SUBRECIPIENT shall submit beneficiary and financial reports to the CITY, as
requested, at least once and not to exceed quarterly during the program year. The beneficiary
report shall detail client information, including race, income, female head of household and other
statistics required by the CITY. The financial report shall include information and data relative
to all programmatic and financial reporting as of the beginning date specified in Section 1 of this
Agreement. Beneficiary and financial reports shall be due to CITY within 15 working days after
request by CITY.
Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit a
copy of any audit conducted by independent examiners in accordance with Generally Accepted
Accounting Principles. If the SUBRECIPIENT receives more than $750,000 in federal
funding, the audit must be conducted in accordance with OMB Circular A-133 as applicable.
14. MONITORING AND EVALUATION
A. CITY shall perform on -site monitoring of SUBRECIPIENT'S performance under this
Agreement.
B. SUBRECIPIENT agrees that the CITY may carry out monitoring and evaluation
activities to ensure adherence by SUBRECIPIENT to the Statement of Work attached
hereto as Exhibit A, as well as other provisions of this Agreement.
C. SUBRECIPIENT agrees to cooperate fully with the CITY in the development,
implementation and maintenance of record -keeping systems and to provide data
determined by the CITY to be necessary for the CITY to effectively fulfill its monitoring
and evaluation responsibilities.
D. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay the
CITY in such monitoring and to designate one of its staff to coordinate the monitoring
process as requested by CITY staff.
E. After each official monitoring visit, the CITY shall provide the SUBRECIPIENT with a
written report of monitoring findings documenting findings and concerns that will require
a written response to the CITY. An acceptable response must be received by the CITY
within sixty (60) days from the SUBRECIPIENT'S receipt of the monitoring report or
audit review letter. Future contract payments can be withheld for the
SUBRECIPIENT'S failure to submit a response within sixty (60) days.
F. The SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by
any of the SUBRECIPIENT'S funding or regulatory bodies to the CITY within five
working days of receipt by the SUBRECIPIENT.
15. DIRECTOR'S MEETINGS
During the terms of this Agreement, at the request of the CITY, SUBRECIPIENT shall
cause to be delivered to the CITY copies of all notices of meetings of its Board of Directors,
setting forth the time and place thereof. Such notices, if so requested, shall be delivered to the
CITY in a timely manner to give adequate notice, and shall include an agenda and a brief
description of the matters to be discussed. SUBRECIPIENT understands and agrees that CITY
representatives shall be afforded access to all of the Board of Directors meetings.
Minutes of all meetings of the SUBRECIPIENT'S governing body shall be available,
and upon request, be provided to the CITY within ten days after Board approval.
16. INSURANCE
A. SUBRECIPIENT shall observe sound business practices with respect to providing such
bonding and insurance as would provide adequate coverage for services offered under
this Agreement.
B. The premises on and in which the activities described in Exhibit A are conducted, and
the employees conducting these activities, shall be covered by liability insurance,
commonly referred to as Owner/Tenant coverage with the CITY named as additional
insured. Upon request of the SUBRECIPIENT, the CITY may, at its sole discretion,
approve alternate insurance coverage arrangements.
C. SUBRECIPIENT will comply with applicable workers compensation statues and will
obtain employers liability coverage where available and other appropriate liability
coverage for program participants, if applicable.
D. SUBRECIPIENT will maintain adequate and continuous liability insurance on all
vehicles owned, leased or operated by SUBRECIPIENT. All employees of
SUBRECIPIENT who are required to drive a vehicle in the normal scope and course of
their employment must possess a valid Texas driver's license and automobile liability
insurance. Evidence of the employee's valid Texas driver's license and automobile
liability insurance. Evidence of the employee's current possession of a valid license and
insurance must be maintained on a current basis in SUBRECIPIENT'S files.
E. Actual losses not covered by insurance as required by this Section are not allowable
under this Agreement, and remain the sole responsibility of the SUBRECIPIENT.
F. The policy or policies of insurance shall contain a clause which requires that the CITY
and the SUBRECIPIENT be notified in writing of any cancellation or change in policy
at least thirty (30) days prior to such change or cancellation.
17. CIVIL RIGHTS/EQUAL OPPORTUNITY
A. SUBRECIPIENT shall comply with all applicable equal opportunity and affirmative
action laws or regulations. The SUBRECIPIENT shall not discriminate against any
employee or applicant for employment because of race, color, creed, religion, national
origin, gender, age or disability. The SUBRECIPIENT will take affirmative action to
insure that all employment practices are free from such discrimination. Such
employment practices include but are not limited to the following: hiring, upgrading,
demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of
pay or other forms of compensation and selection for training, including apprenticeship.
B. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and
Section 109 of Title I of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities
Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 and Executive
Order 11246 as amended by Executive Orders 11375 and 12086.
C. SUBRECIPIENT will furnish all information and reports requested by the CITY, and
will permit access to its books, records, and accounts for purposes of investigation to
ascertain compliance with local, state and Federal rules and regulations.
D. In the event of SUBRECIPIENT'S non-compliance with the non-discrimination
requirements, the CITY may cancel or terminate this Agreement in whole or in part, and
SUBRECIPIENT may be barred from further contracts with the CITY.
9 0t7.Y11ete1"1 01-M C0-1-1
Personnel policies shall be established by the SUBRECIPIENT and shall be available for
examination. Such personnel policies shall:
A. Be in writing and shall be approved by the governing body of the SUBRECIPIENT and
the CITY.
19. CONFLICT OF INTEREST
A. SUBRECIPIENT covenants that neither it nor any member of its governing body
presently has any interest, direct or indirect, which would conflict in any manner or
degree with the performance of services required to be performed under this Agreement.
SUBRECIPIENT further covenants that in the performance of this Agreement, no
person having such interest shall be employed or appointed as a member of its governing
body.
B. SUBRECIPIENT further covenants that no member of its governing body or its staff,
sub -recipients or employees shall possess any interest in or use his position for a purpose
that is or gives the appearance of being motivated by desire for private gain for himself or
others particularly those with which he has family, business, or other ties.
C. No officer, member, or employee of the CITY and no member of its governing body who
exercises any function or responsibilities in the review or approval of the undertaking or
carrying out of this Agreement shall participate in any decision relating to the Agreement
which affects his or her personal interest or the interest in any corporations, partnership,
or association in which he or she has a direct or indirect interest.
20. NEPOTISM
SUBRECIPIENT shall not employ in any paid capacity any person who is a member of
the immediate family of any person who is currently employed by SUBRECIPIENT, or is a
member of SUBRECIPIENT'S governing board. The term member of immediate family
includes wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle,
nephew, niece, step parent, step -child, half-brother and half-sister.
21. POLITICAL OR SECTARIAN ACTIVITY
A. Neither the funds advanced pursuant to this Agreement, nor any personnel which may be
employed by the SUBRECIPIENT with funds advanced pursuant to this Agreement
shall be in any way or to any extent engaged in any conduct or political activity in
contravention of Chapter 15 of Title 5 of the United States Code.
B. The SUBRECIPIENT agrees that none of the funds or services provided directly or
indirectly under this Agreement shall be used for any partisan political activity or to
further the election or defeat of any candidate for public office, or for publicity, lobbying
and/or propaganda purposes designed to support or defeat pending legislation.
Employees of the SUBRECIPIENT connected with any activity that is funded in whole
or in part by funds provided to SUBRECIPIENT under this Agreement may not under
the term of this Agreement:
Use their official position or influence to affect the outcome of an election or
nomination.
2. Solicit contributions for political purposes; or
3. Take an active part in political management or in political campaigns.
SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein
as Exhibit E and if necessary, the Disclosure of Lobbying Activities provided by the CITY.
22. PUBLICITY
A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities
conducted by SUBRECIPIENT under this Agreement. In any news release, sign,
brochure, or other advertising medium, disseminating information prepared or distributed
by or for SUBRECIPIENT, the advertising medium shall state that the U. S. Department
of Housing and Urban Development's Community Development Block Grant Program
funding through the City of Beaumont has made the project possible.
B. All published material and written reports submitted under this project must be originally
developed material unless otherwise specifically provided in this Agreement. When
material not originally developed is included in a report, the report shall identify the
source in the body of the report or by footnote. This provision is applicable when the
material is in a verbatim or extensive paraphrase format.
All published material submitted under this project shall include the following reference
on the front cover or title page:
This document is prepared in accordance with the City of
Beaumont's Community Development Block Grant Program, with
funding received from the United States Department of Housing
and Urban Development.
C. All reports, documents, studies, charts, schedules or other appended documentation to
any proposal, content of basic proposal, or contracts and any responses, inquires,
correspondence and related material submitted by SUBRECIPIENT.
23. CHANGES AND AMENDMENTS
A. Any alterations, additions or deletions to the terms of this Agreement shall be by written
amendment executed by both parties, except when the terms of this Agreement expressly
provide that another method shall be used.
B. SUBRECIPIENT may not make transfers between or among approved line items within
project budget categories set forth in Exhibit C without prior written approval of
CITY. SUBRECIPIENT shall request, in writing, the budget revision in a form
prescribed by CITY, and such request for revision shall not increase the total monetary
obligation of CITY under this Agreement. In addition, budget revisions cannot
significantly change the nature, intent or scope of the program funded under this
Agreement.
C. SUBRECIPIENT will submit revised budget and program information, whenever the
level of funding for SUBRECIPIENT or the program(s) described herein is altered
according to the total levels contained in any portion of Exhibit C.
D. It is understood and agreed by the parties hereto that changes in the State, Federal or local
laws or regulations pursuant hereto may occur during the term of this Agreement. Any
such modifications are to be automatically incorporated into this Agreement without
written amendment hereto, and shall become a part of the Agreement on the effective
date specified by the law or regulation.
E. CITY may, from time to time during the term of the Agreement, request changes in
Exhibit A, which may include an increase or decrease in the amount of
SUBRECIPIENT'S compensation. Such changes shall be incorporated in a written
amendment hereto, as provided in Subsection A of this Section.
F. Any alterations, deletion, or additions to the Contact Budget Detail incorporated in
Exhibit C shall require the prior written approval of CITY.
G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for
work performed under this Agreement at least thirty (30) calendar days in advance of the
change.
H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board
composition.
24. SUSPENSION OF FUNDING
Upon determination by CITY of SUBRECIPIENT'S failure to timely and properly perform
each of the requirements, time conditions and duties provided herein, the CITY, without limiting
any rights it may otherwise have, may, at its discretion, and upon ten working days written notice
to SUBRECIPIENT, withhold further payments to SUBRECIPIENT. Such notice may be
given by mail to the Executive Officer and the Board of Directors of SUBRECIPIENT. The
notice shall set forth the default or failure alleged, and the action required for cure.
The period of such suspension shall be of such duration as is appropriate to accomplish
corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the
suspension period, if CITY determines the default or deficiency has been satisfied,
SUBRECIPIENT may be restored to full compliance status and paid all eligible funds withheld
or impounded during the suspension period. If however, CITY determines that
SUBRECIPIENT has not come into compliance, the provisions of Section 25 may be
effectuated.
25. TERMINATION
A. CITY may terminate this Agreement for cause under any of the following reasons or for
other reasons not specifically enumerated in this paragraph.
1. SUBRECIPIENT'S failure to attain compliance during any prescribed period of
suspension as provided in Section 24.
2. SUBRECIPIENT'S failure to materially comply with any of the terms of this
Agreement.
3. SUBRECIPIENT'S violation of covenants, agreements or guarantees of this
Agreement.
4. Termination or reduction of funding by the United States Department of Housing
and Urban Development.
5. Finding by the CITY that SUBRECIPIENT
a. Is in such unsatisfactory financial condition as to endanger performance
under this Agreement.
b. has allocated inventory to this Agreement substantially exceeding
reasonable requirements;
C. is delinquent in payment of taxes, or of costs of performance of this
Agreement in the ordinary course of business.
6. Appointment of a trustee, receiver or liquidator for all or substantial part of
SUBRECIPIENT'S property, or institution of bankruptcy, reorganization,
rearrangement of or liquidation proceedings by or against SUBRECIPIENT.
7. SUBRECIPIENT'S inability to conform to changes required by Federal, State
and local laws or regulations as provided in Section 4, and Section 23 (D), of this
Agreement.
8. The commission of an act of bankruptcy.
9. SUBRECIPIENT'S violation of any law or regulation to which
SUBRECIPIENT is bound or shall be bound under the terms of the Agreement.
A. CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and
the effective date of termination. Simultaneous notice of pending termination may be
made to other funding sources specified in Exhibit C.
B. CITY may terminate this Agreement for convenience at any time. If CITY terminates
the Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed
the total of accrued expenditures as of the effective date of termination. In no event will
this compensation exceed an amount which bears the same ratio to the total compensation
as the services actually performed bears to the total services of SUBRECIPEINT covered
by the Agreement, less payments previously made.
C. SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to
CITY, if a termination of outside funding occurs upon which SUBRECIPIENT depends
for performance hereunder. SUBRECIPIENT may opt, within the limitations of this
Agreement, to seek an alternative funding source, with the approval of CITY, provided
the termination by the outside funding source was not occasioned by a breach of contract
as defined herein or as defined in a contract between SUBRECIPIENT and the funding
source in question.
criBRECIPIENT may terminate this Agreement upon the dissolution of
BRECIPIENT'S organization not occasioned by a breach of this Agreement.
)n receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw or
-rwise terminate any outstanding orders or subcontracts, which relate to the
performance of this Agreement. CITY shall not be liable to SUBRECIPIENT or
SUBRECIPIENT'S creditors for any expenses, encumbrances or obligations whatsoever
incurred after the termination date listed on the notice to terminate referred to in this
paragraph.
E. Notwithstanding any exercise by CITY of its right of suspension or termination,
SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by
CITY by virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may
withhold any reimbursement to SUBRECIPIENT until such time as the exact amount of
damages due to CITY from SUBRECIPIENT is agreed upon or otherwise determined.
26. NOTIFICATION OF ACTION BROUGHT
In the event that any claim, demand, suit or other action is made or brought by any
person(s), firm, corporation or other entity against SUBRECIPIENT, SUBRECIPIENT
shall give written notice thereof to CITY within two working days after being notified of
such claim, demand, suit or other action. Such notice shall state the date and hour of
notification of any such claim, demand, suit or other action, the names and addresses of
the person(s), firm, corporation or other entity making such claim, or that instituted or
threatened to institute any type of action or proceeding, the basis of such claim, action or
proceeding, and the name of any person(s) against whom such claim is being made or
threatened. Such written notice shall be delivered either personally or by mail.
27. INDEMNIFICATION
A. It is expressly understood and agreed by both parties hereto that the CITY is contracting
with the SUBRECIPIENT as an independent SUBRECIPIENT and that as such,
SUBRECIPIENT shall save and hold CITY, its officers, agents and employees harmless
from all liability of any nature or kind, including costs and expenses for, or on account of,
any claims, audit exceptions, demands, suits or damages of any character whatsoever
resulting in whole or in part from the performance or omission of any employee, agent or
representative of SUBRECIPIENT.
B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless
CITY, its agents, employees, or SUBRECIPIENTs from any and all claims, suits,
causes of action, demands, damages, losses, attorney fees, expenses, and liability arising
out of the use of these contracted funds and program administration and implementation
except to the extent caused by the willful act or omission of CITY, its agents, employees,
or SUBRECIPIENTS.
28. NON -RELIGIOUS ACTIVITIES
The SUBRECIPIENT will provide all services under this Agreement in a manner that is
exclusively non -religious in nature and scope. There shall be no religious services, proselytizing,
instruction or any other religious preference, influence or discrimination in connection with
providing the services hereunder.
29. MISCELLANEOUS
A. SUBRECIPIENT shall not transfer, pledge or otherwise assign this Agreement or any
interest therein, or any claim arising thereunder, to any party or parties, bank, trust
company or other financial institution without the prior written approval of CITY.
B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
remaining provisions shall remain in full force and effect and continue to conform to the
original intent of both parties hereto.
C. In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure
of CITY to insist in any one or more instances upon the terms and conditions of this
Agreement constitute or be construed in any way to be a waiver by CITY of any breach
of covenant or default which may then or subsequently be committed by
SUBRECIPIENT. Neither shall such payment, act, or omission in any manner impair or
prejudice any right, power, privilege, or remedy available to CITY to enforce its rights
hereunder, which rights, powers, privileges, or remedies are always specifically
preserved. No representative or agent of CITY may waive the effect of this provision.
D. This Agreement, together with referenced exhibits and attachments, constitutes the entire
agreement between the parties hereto, and any prior agreement, assertion, statement,
understanding or other commitment antecedent to this Agreement, whether written or
oral, shall have no force or effect whatsoever; nor shall an agreement, assertion,
statement, understanding, or other commitment occurring during the term of this
Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless
properly executed in writing, and if appropriate, recorded as an amendment of this
Agreement.
E. In the event any disagreement or dispute should arise between the parties hereto
pertaining to the interpretation or meaning of any part of this Agreement or its governing
rules, codes, laws, ordinances or regulations, CITY as the party ultimately responsible to
the U. S. Department of Housing and Urban Development for matters of compliance, will
have the final authority to render or to secure an interpretation.
F. For the purpose of this Agreement, all official communications and notices among the
parties shall be deemed made if sent postage paid to the parties and addresses set forth
below:
TO CITY: TO SUBRECIPIENT:
Mr. Kyle Hayes Ms. Dena Gray Hughes
City Manager Executive Director
City of Beaumont Triangle Area Network
P. O. Box 3827 1495 N. 7t' Street
Beaumont, TX 77704 Beaumont, TX 77702
G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and
venue of any litigation concerning this Agreement shall be in a court competent
jurisdiction sitting in Jefferson County Texas.
IN WITNESS OF WHICH this Agreement has been executed on this the Z 6 day
of Ape I 52017.
CITY OF BEAUMONT:
Kyle Hayes, City Manager
Triangle Area Network (TAN):
BY:
Date
ATTEST:
B
A
BY: