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HomeMy WebLinkAboutAmerican Family Housing - AFH - 2012-08-06Council/Agency Meeting Held: . Deferred/Continued to: )�� )93 A pro ed ❑ nd'tio all App ov �� Denied `�;�i CI rk'S g ature Council Meeting Date: August 6, 2012 Department ID Number: ED 12-29 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Bob Hall, Deputy City Manager/Director of Economic Development SUBJECT: Adopt Resolution No. 2012-55 designating American Family Housing as the Community Housing Development Organization (CHDO); and, approve and authorize execution of an Agreement with American Family Housing for a Home Investment Partnership Program (HOME) Statement of Issue: The City annually receives HOME funds through the Housing and Urban Development Department (HUD). The HOME funds are designated for affordable housing within the City. A minimum of 15% of all HOME funds must be designated to Community Housing Development Organizations (CHDO). The City Council is asked to approve American Family Housing as a recognized CHDO and approve an Agreement for use of HOME funds for a tenant based assistance program. Financial Impact: Funds will be expended from annual HOME federal allocations, not to exceed $130,934. Recommended Action: Motion to: A) Adopt Resolution No. 2012-55 "A Resolution of the City Council Designating American Family Housing As The Community Housing Development Organization (CHDO) Under The United States Department of Housing and Urban Development (HUD) Home Investment Partnership Programs Act (HOME); and, B) Approve and authorize the Mayor and City Clerk to execute the "Community Housing Development Organization (CHDO) Agreement Home Investment Partnership Program (HOME)" with American Family Housing; and, C) Authorize the City Manager to sign all necessary documents for this project. Alternative Action(s): Do not approve Resolution or Agreement and direct staff as necessary. Item 13. - 1 HB -302- REQUEST FOR COUNCIL ACTION MEETING DATE: 8/6/2012 DEPARTMENT ID NUMBER: ED 12-29 Analysis: American Family Housing (AFA) is a local non-profit that provides for transitional/permanent rental housing and related social services. AFA requested City support for a HUD grant opportunity. On August 16, 2010, the City provided American Family Housing a letter of intent to provide $131,615 of HOME funds as a matching grant for a Tenant -Based Rental Assistance Program. American Family Housing was awarded the grant, including the City's matching grant of $130,934, using HOME funding. As a two-year program, the City intends to allocate HOME funds as a match to provide rental assistance to approximately 10 households each year, as required by AFH's 2010 Continuum of Care Homeless Assistance Grant approval. As part of the City's Substantial Amendment to the Consolidated Plan and Action Plan on March 19, 2012, City Council approved this program and allocation of HOME funds. The attached agreement is the final process to implement the program. HUD regulations require that cities receiving HOME funding must reserve not less than 15% of its annual entitlement over a 24-month period for investment in affordable housing to be developed, sponsored or owned by Community Housing Development Organizations (CHDOs). Each city must make reasonable efforts to identify local organizations that are capable of carrying out affordable housing development. The CHDO must be evaluated by the city, certified by resolution as a designated CHDO, and approved by HUD. American Family Housing meets these qualifications and the City is asked to formally designate them as a CHDO. The City is in the process of re -certifying all CHDO's. Environmental Status: Not applicable. Strategic Plan Goal: Enhance economic development Attachment(s): Resolution No. 2012-55, "A Resolution of the City Council Designating American Family Housing As The Community Housing Development Organization (CHDO) Under the United States Department of Housing and Urban Development (HUD) Home Investment Partnership Proarams Act (HOME)" 2. I"Community Housing Development Organization (CHDO) Agreement Home Investment Partnership Program (HOME)" with American Family Housing HB -303- Item 13. - 2 ATTACHMENT #1 Item 13. - 3 HB -3004- RESOLUTION NO. 2012-55 A RESOLUTION OF THE CITY COUNCIL DESIGNATING AMERICAN FAMILY HOUSING AS THE COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) UNDER THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) HOME INVESTMENT PARTNERSHIPS ACT (HOME) WHEREAS, the City of Huntington Beach has entered into an Agreement with the United States Department of Housing and Urban Development (HUD) to receive funds through the Home Investment Partnerships Act (HOME) Program, a portion of which must be set aside for designated Community Housing Development Organizations; and American Family Housing is a non-profit housing corporations dedicated to expanding the opportunities available to low and moderate -income residents to gain access to decent, safe and affordable housing, and has qualified as a Community Housing Development Organization (CHDO) by complying with the requirements of the HOME Program under the auspices of the United States Department of Housing and Urban Development (HUD); and American Family Housing has submitted the required documentation to certify its eligibility status as a non-profit organization, including the Articles of Incorporation and By -Laws of the organization; and The City of Huntington Beach, through its Amended FY 2010-2014 Consolidated Plan and FY 2011-2012 Annual Action Plan supports the development of affordable housing in the City for low and moderate -income persons and households; and American Family Housing has empowered people through the advancement of economic, educational and social levels within Huntington Beach and surrounding communities. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve that the City Council supports the designation of American Family Housing as a certified Community Housing Development Organization (CHDO) under the regulations of the HOME Investment Partnerships Act Program for the purposes of increasing the supply of decent, safe and affordable housing for low- and moderate -income persons within the City. 1 12-3428/82229 Resolution No. 2012-55 BE IT FURTHER RESOLVED that the City Council hereby authorizes and directs the City Manager to transmit this resolution and required documentation to the United States Department of Housing and Urban Development (HUD). BE IT FURTHER RESOLVED that the Director of Economic Development or his/her designee is authorized to execute routine documents on behalf of the City in connection with this Program. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6TH day of August , 201 2 . CiLy Clerk 0 APPROVED: Mayor INITIATED AND APPROVED: - 4;AW Director of Economic Development PROVED AS TO FORM: ity Afforney 12-3428/82229 Res. No. 2012-55 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on August 06, 2012 by the following vote: AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr NOES: None ABSENT: Boardman ABSTAIN: None Cit Jerk and ex-officio erk of the City Council of the City of Huntington Beach, California COMMUNITY DOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) THIS COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT HOME INVESTMEA ATTNERSHIP PROGRAM (HOME) (the "AGREEMENT") is entered into this (�T�day of , 2012 by and between the CITY OF HUNTINGTON PEACH, a municipal corporation, hereinafter referred to as the "City" and AMERICAN FAMILY MOUSING (AFH), a non-profit organization recognized under the State of California, hereinafter referred to as the "Community Housing Development Organization' or "CHDO". WHEREAS, the City is responsible for administering the use of certain funds made available to it by the United States Department of Housing and Urban Development ("HUD") under the HOME Investment Partnerships Program (the "HOME Program") in accordance with the regulations issued by HUD and set forth in 24 Code of Federal Regulations ("CFR") Part 92 (the "HOME Regulations") for the purposes of strengthening public -private partnerships to provide decent, safe, sanitary, and affordable housing, including funds that are reserved for the use of Community Housing Development Organizations; and WHEREAS, the City provided a letter of intent to allocate HOME Program funds to the CHDO on August 16, 2010 as matching funds to allow the CHDO to obtain additional grant funds from HUD for affordable housing; and WHEREAS, the City, as a Participating Jurisdiction (PJ) in the HOME Program, is allowed to allocate up to five percent of its fiscal year HOME Program allocation to be used for operating expenses of community housing development organizations (24 CFR 92.208(a)); and WHEREAS, a CHDO may not receive HOME Program funding for any fiscal year in an amount that provides more than 50 percent or $50,000, whichever is greater, of the CHDO's total operating expenses in that fiscal year (24 CFR 92.300(o); and WHEREAS, the CHDO desires to work with the City to provide affordable housing in accordance with the HOME regulations to undertake a CHDO-eligible project in accordance with all terms, provisions, and restrictions set forth in this Agreement and 24 CFR Part 92 within 24 months of the date of this agreement; and NOW, THEREFORE in consideration of the mutual covenants and obligations herein contained, including any Attachments, and subject to the terms and conditions hereinafter stated, the parties hereto understand and agree to the terms and conditions of this Agreement as follows: I. AMOUNT AND TERM OF AGREEMENT [24 CFR 92.504(c)(3)(ix)] In accordance with and subject to all the terms, conditions and covenants contained in this Agreement, upon the satisfaction of all conditions precedent to the disbursement of HOME Program Page 1— American Family Mousing CHDO Agreement funds set forth in this Agreement, the City agrees to grant to the CHDO, the original principal amount not to exceed One Hundred Thirty Thousand Nine Hundred and Thirty Four Dollars ($130,934.00) in HOME Program funds (the "HOME Grant" or "HOME Funds"), or so much thereof as may be disbursed by the City, to the CHDO to be used to pay for eligible operating expenses pursuant to 24 CFR 92.208. The CHDO expressly agrees to complete all Work required pursuant to this Agreement in accordance with the timetable set forth below: Milestone Deadline Project Start Date Within 12 months from the date of execution of this Agreement by the City Interim Milestones/Deadlines list below): Project Completion Date 24 months from the date of the execution of this Agreement by the City In addition, the project is subject to ongoing compliance requirements of the HOME Program for fifteen (15) years. During this compliance period, the CHDO will assure continued compliance with HOME Program requirements and HOME Regulations. For homebuyer units, this includes monitoring units for principal residency and recapture of funds at time of resale. For rental units, this includes ongoing property standards, occupancy and rent limits compliance. Timely completion of the Work specified in this Agreement is an integral and essential part of performance. The expenditure of HOME Program funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this Agreement, it is understood and agreed by the CHDO that the project and Work will be completed as expeditiously as possible and that the CHDO will make every effort to ensure that the project will proceed and will not be delayed. Failure to meet these deadlines can result in cancellation of this Agreement and the revocation of HOME Program funds. Since it is mutually agreed that time is of the essence as regards this Agreement, the CHDO shall cause appropriate provisions to be inserted in all contracts or subcontracts relative to the tasks required by this Agreement, in order to ensure that the project will be completed according to the timetable set forth. It is intended that such provisions inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the CHDO and its successors and assigns to the project or any part thereof or any interest therein. The term "Project" used in this Agreement shall mean collectively, the Work, and any other related activities that CHDO is required to perform pursuant to this Agreement. The Project shall comply with 24 CFR Part 92 and all applicable Federal, City and State laws. Page 2— American Family Dousing CHDO Agreement II. INTENTIONALLY OMITTED III. CITY'S CONDITIONS TO DISBURSEMENT. City's obligations to disburse the HOME Program funds described in Section I. above shall be conditioned and contingent upon satisfaction or City's waiver of each of the following conditions precedent (collectively, the "City's Conditions to Closing"): (a) City shall have in its account One Hundred Thirty Thousand Nine Hundred Thirty- four Dollars and no cents ($130,934.00)of readily available HOME Program funds; (b) The City has determined that the CHDO has been certified as a community housing development organization in accordance with HOME program requirements; (c) C14DO shall have delivered evidence acceptable to the City that CHDO has obtained the insurance policies and endorsements required by this Agreement; (d) CHDO shall have delivered to the City a current certificate of good standing issued by the California Secretary of State's office and shall have delivered to the City a certified resolution of its Board of Directors authorizing CHDO's execution and implementation of this Agreement; and (e) The City shall have determined in its reasonable discretion that CHDO is in full compliance with the terms and conditions of this Agreement and all documents and instruments referred to herein or executed by CHDO in furtherance of this Agreement. In the event any of the City's Conditions to Disbursement are not satisfied (or waived by City), City may terminate this Agreement by delivering ten (10) days prior written notice to the CHDO. The CHDO may nullify City's notice to terminate if, within such ten (10) day period CHDO (at no cost to City) cures any unsatisfied City Conditions to Disbursement. In the event of termination pursuant to this Section, this Agreement shall be terminated and the parties hereto shall have no further rights or obligations hereunder except for CHDO's indemnification obligation which shall survive termination. IV. ELIGIBLE PROTECT COSTS (24 CFR 92.206) The CHDO agrees to spend HOME Program funds only on eligible project costs as defined in 24 CFR 92.208. Eligible operating expenses for which the CHDO may use the funds allocated include: salaries, wages, and other employee compensation and benefits; employee education, training, and travel, rent, utilities, communication costs, taxes, insurance, equipment, materials and supplies. The CHDO understands release of HOME Program funds to the CHDO from the City will be contingent upon certain documents being submitted as required by the City and in accordance with HOME Regulations. The CHDO agrees that it will not request disbursement of HOME Program Page 3— American Family Housing CHDO Agreement funds under this Agreement until the funds are needed to pay for eligible costs, and each request will be limited to the amount needed. (24 CFR 92.504 (c) (3) (viii)) The City shall have the right to disapprove any request if the City determines the request is for an ineligible item or is otherwise not in compliance with this Agreement. The CHDO agrees to spend all HOME Program funds in accordance with the Project Budget and any changes to the budget must be approved by the City. The City agrees to allow the CHDO to retain any HOME Program funds on hand upon the completion of the project; however, any HOME Program funds retained on by the CHDO upon the completion of the Project shall be used for HOME -eligible activities that benefit low income families [or other housing activities that benefit low income families]. However, funds recaptured because housing no longer meets the affordability requirements under 24 CFR 92.254 (a)(5) (ii) are subject to the requirements of 24 CFR Part 92 in accordance with 24 CFR 92.503. V. PROJECT BUDGET Total Project costs are set forth in the Project Budget, attached hereto as Attachment No. 3 and incorporated herein by this reference (the "Project Budget" or "Budget"). Any change in the Project Budget is subject to the prior written approval of the City Manager or designee, upon which approval, the Project Budget shall be replaced by the approved revised Project Budget. VI. DOME ACTIVITY/WORK SCOPE (24 CFR 92.504) The CHDO will provide a two-year Permanent Supportive Housing Program targeting eligible renters with Part V incomes of between 60 percent and 80 percent or less of the Orange County area median income as published by HUD and adjusted for family size. HOME Program funds provided under this Agreement by the City shall be used for operating costs of the CHDO as related to the Permanent Supportive Housing Program (the "Work"). The CHDO shall provide a specific working budget and realistic timetable as relates to the Work and other allowable costs and activities prior to any usage of HOME Program funds. Said budget shall identify all sources and uses of funds, and allocate HOME and non -HOME Program funds to activities and line items. Timely completion of the work specified in this Agreement is an integral and essential part of performance. The expenditure of HOME Program funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this Agreement, it is understood and agreed by the CHDO that the PROJECT will be completed as expeditiously as possible and that the CHDO will make every effort to ensure that the project will proceed and will not be delayed. Failure to meet these deadlines can result in cancellation of this Agreement and the revocation of HOME Program funds. Page 4— American Family Housing CHDO Agreement VII. REIMBURSEMENT OF EXPENSES Upon satisfaction of all conditions precedent to the disbursement of the HOME Program funds (or waiver by the City) Project Expenses shall be reimbursed by the City based on vouchers submitted by the CHDO for actual expenses incurred or paid. Requests for reimbursement must be submitted by the CHDO on forms specified by the City, with adequate and proper documentation of eligible costs incurred in compliance with 24 CFR § 92.206 and § 92.208 and necessary for HUD Integrated Disbursement and Information System (IDIS) disbursement requirements. All such expenses shall be in conformance to the approved Project Budget. Payment(s) for reimbursements will occur per the City's regular accounting schedule. Budget revision and approval shall be required prior to reimbursement of any expenses submitted by the CHDO not conforming to the approved Project Budget. The City shall reimburse the CHDO, as maximum compensation for Project expenses pursuant to the scope of Work thereof, the sum not to exceed One Hundred Thirty Thousand Nine Hundred Thirty- four Dollars and no cents ($130,934), or so much thereof that may be disbursed by the City, of HOME Program funds in accordance with the CHDO's Project Budget. The City shall have the right to inspect the CHDO's books and records and PROJECT sites to determine that reimbursement and compensation requests are reasonable. The City also reserves the right to hold payment of any reimbursement or compensation request submitted by the CHDO hereunder until adequate documentation has been provided and reviewed by the City. The CHDO may submit a final invoice upon completion of the Work. Final reimbursement shall be made after the City has determined that all services have been rendered, files and documentation delivered, and units have been placed in service in full compliance with HOME regulations, including submission of a completion report and documentation of eligible occupancy, property standards and long-term use restrictions. The City shall have the right to review and audit all records of the CHDO pertaining to any payment of the HOME Program funds by the City hereunder. The CHDO shall maintain such records for a period of five years after the termination of this Agreement. VIII. INTENTIONALLY OMITTED IX. PERFORMANCE MEASUREMENT The CHDO, in close coordination with the City, shall perform all aspects of the Work necessary to complete the development and occupancy of the following project in full compliance with the terms of this Agreement. Approximately ten (10) households will be provided rental assistance through the CHDO's Permanent Supportive Housing Program. Page 5- American Family Dousing CHDO Agreement X. INSURANCE AND INDEMNIFICATION A. Insurance. CHDO shall procure and maintain, during the term of this Agreement, at its sole cost and expense, until the date that City waives any such insurance requirement or requirements in writing, the following policies of insurance on a project specific basis: (i) Workers' Compensation Insurance. Pursuant to California Labor Code Section 1861, CHDO acknowledges awareness of Section 3700 et seq. of said code, which requires every employer to be insured against liability for workers' compensation. CHDO covenants that it will comply with such laws and provisions prior to commencing, and during the performance of, any work of construction in connection with this Agreement. CHDO shall maintain such Workers' Compensation Insurance in an amount not less than the statutory requirements in California for bodily injury and disease and must maintain employer's liability coverage in an amount not less than ONE MILLION DOLLARS ($1,000,000.00). CHDO shall require all contractors to provide such Workers' Compensation Insurance for all of the subcontractor's employees. CHDO shall furnish City with a certificate of waiver of subrogation under the terms of the Workers' Compensation Insurance and CHDO shall similarly require all subcontractors to waive subrogation. (ii) General Liability and Auto Insurance. CHDO shall carry general commercial liability insurance, including coverage for bodily injury, property damage, products/completed operations and blanket contractual liability in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) annual aggregate, combined single limit for bodily injury and property damage. All such insurance shall be provided by insurance companies admitted in California, or if not admitted in California, then reasonably acceptable to City. Such insurance shall name the City and its officers, contractors, agents, and employees acting in their official capacity, as additional insureds. CHDO shall carry automobile insurance, including liability coverage for bodily injury and property damage in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence. CHDO shall require its insurer to waive its subrogation rights against City and shall provide certificates of insurance evidencing same. (iii) Certificate of Insurance; Additional Insured Endorsements. Prior to the disbursement of the HOME funds, CHDO shall furnish to City certificates of insurance and additional insured endorsements evidencing the foregoing insurance coverages as required by this Agreement. Such certificates and endorsements shall be subject to the reasonable approval of the City Attorney and shall provide the name and policy number of each carrier and policy and shall state that the policy is currently in force and shall promise to provide that such policies will not be cancelled without thirty (30) days prior written notice to City. B. Indemnification. CHDO agrees to and shall protect, defend, indemnify and hold the City, its employees, officers, board members and representatives harmless from and against all liability, loss, damage, cost or expenses (including reasonable attorneys' fees and court costs) arising from or as a result of Page 6— American Family Housing CHDO Agreement (i) CHDO's failure to perform any obligations as and when required by this Agreement or any document referred to herein, and (ii) the death of any person or any accident, injury loss, or damage whatsoever caused during the term of this Agreement to any person or to the property of any person which shall occur in connection with this Agreement and the activities contained herein and which shall be directly or indirectly caused by the acts of, or any errors or omissions of, the CHDO or its officers, shareholders, directors, members, agents, servants, employees, contractors, or invitees. CHDO shall not be responsible for, and the City shall protect, defend, hold harmless and indemnify CHDO against any liability, loss, damage, cost, or expense (including reasonable attorney's fees and court costs) arising from or as a result of the gross negligence or willful misconduct of the City or its members, officers, officials, employees, agents, representatives, servants, or contractors during the term of this Agreement. CHDO's indemnification obligations set forth in this Section shall commence upon the execution of this Agreement by the CHDO. CHDO's indemnification obligations under this Section shall survive any termination or expiration of this Agreement. XI. AFFORDABILITY PERIOD (24 CFR 92.254) The CHDO shall comply with the affordability requirements of Section 92.254 of 24 CFR, Part 92 of the HOME Regulations, and should it not meet the affordability requirements for the specified time period the City shall require repayment of the funds. Affordability periods based on amount of assistance provided are as follows: HOME AMOUNT MINIMUM AFFORDABILITY PERIOD Under $15,000 5 years $15,000- $40,000 10 years Over $40,000 15 years XII. INCOME LIMITS AND RENT LIMITS The CHDO agrees to provide assistance to renters whose annual gross income does not exceed 80% of the gross median income for Orange County as established by the U.S. Department of Housing and Urban Development. The income limits as of the date of this Agreement are as follows (effective date is December 1, 2011, must be updated annually httl2://www.huduser.org/portal/datasets/il.html): Page 7— American Family Housing CHDO Agreement Maximum Maximum Maximum Maximum Family Size Income 60% Income 80% Family Size Income 60% Income 80% 1 person $40,500 $53,950 5 persons $62,460 $83,250 2 persons $46,260 $61,650 6 persons $67,080 $89,400 3 persons $52,020 $69,350 7 persons $71,700 $95,550 4 persons $57,780 $77,050 8 persons $76,320 $101,750 The income of each tenant must be determined initially in accordance with income targeting requirements found at 92.203 (a). In addition, each year during the period of affordability the project the CHDO must re-examine each tenant's annual income to ensure compliance with affordability standards. Rents will be set in accordance with HUD guidelines as follows: 0 Bedroom 1 2 3 4 5 (studio) Bedroom Bedroom ]Bedroom Bedroom ]Bedroom HOMERent50% $843 $903 $1,083 $1,252 $1,397 $1,541 HOMERent65% $1,076 $1,154 $1,387 $1,594 $1,759 $1,922 The rent limits as of the date of this Agreement are as follows (effective date is December 1, 2011, must be updated annually http://www.hud. gov/offices/cpd/affordablehousing_/programs/home/limits/rent/index.cfm). XIII. PROJECT REQUIREMENTS In addition to the requirements set forth within this Agreement, the CHDO shall comply with the project requirements set forth in 24 CFR Part 92, as applicable, and any amendments hereafter to 24 CFR Part 92 including, but not limited to the following: (a) The CHDO will ensure that any expenditure of HOME Program funds will be in compliance with the requirements at 24 CFR 92.206, and acknowledges that HOME Program funds will only be provided as reimbursement for eligible costs incurred, including actual expenditures or invoices for work completed. (b) If the project is to be owner -occupied, the CHDO will ensure that all HOME assisted units will be in compliance with 24 CFR 92.254, including documenting that the property is eligible under 92.254(a)(1) — (2), and will maintain compliance during the minimum compliance period. (If the property also contains a rental unit assisted with HOME Program funds, the CHDO will ensure that occupancy complies with the requirements of 92.254(a)(6).) If the project is to be rental, the CHDO will ensure that that project is eligible under 92.214, and that it will meet the applicable Page 8— American Family Dousing CHDO Agreement standards of 24 CFR 92.252 — 253 at occupancy and for the minimum compliance period. (c) The designated HOME -assisted units of this PROJECT will meet the affordability requirements as found in 24 CFR 92.252 (rental) or 92.254 (owner -occupied) as applicable. (d) The CHDO shall collect and maintain Project beneficiary information pertaining to household size, income levels, racial characteristics, and the presence of female headed households in order to determine low and moderate -income benefit in a cumulative and individual manner. Income documentation shall be in a form consistent with HOME requirements as stated in the HUD Technical Guide for Determining Income and Allowances Under the HOME Program. (e) If the PROJECT is occupied at the time of this commitment, the CHDO will comply with the relocation requirements of 24 CFR 92.353. (f) The CHDO will provide any documentation required by the AGENCY regarding match as may be required to document match for purposes of the HOME program. (g) The CHDO will be monitored by the City for compliance with the regulations of 24 CFR 92 for the compliance period specified above. The CHDO will provide reports and access to project files as requested by the City during the Project and for five (5) years after completion and closeout of this Agreement. (h) The CHDO shall comply with all applicable Federal regulations set forth in Attachment No. 1 incorporated herein by this reference. (i) The CHDO will comply with State and local codes and ordinances and other applicable laws. (j) The CHDO agrees to comply with all applicable program requirements described by the City, as applicable, and any amendments hereafter to such City program guidelines. XIV. CHDO PROVISIONS (24 CFR 92.208; 92.300 AND 92.301) It is understood that the CHDO has certified that it is and will maintain CHDO (Community Housing Development Organization) status for the term of this Agreement in accordance with 24 CFR 92. The CHDO agrees to provide information as may be requested by the City to document its continued compliance, including but not limited to an annual board roster and certification of continued compliance. Page 9— American Family Mousing CHDO Agreement Any funds advanced as CHDO pre -development funds must be in compliance with 92.301, and are forgivable only under the terms in 92.301. Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as CHDO proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2) or as specified in this Agreement. If the project is rental, the CHDO will create and follow a tenant participation plan as required in 24 CFR 92.303. The CHDO will maintain a Board of Directors in compliance with the HOME CHDO regulations. The CHDO agrees to notify the City within fifteen (15) days of any change to the composition of the CHDO Board of Directors. The CHDO will receive an Operating Expense allocation that shall be paid on a reimbursable basis for expenses directly supporting the CHDO's affordable housing efforts. XV. AFFIRMA'TIVE MARKETING; MINORITY OUTREACH PROGRAM (24 CFR 92.351) The CHDO agrees to comply with the City's affirmative marketing responsibilities and those affirmative marketing requirements set forth in 24 CFR 92.351, and the CHDO further agrees to keep records in a central file readily available for the City and/or HUD to monitor the CHDO's efforts and compliance with the affirmative marketing compliance. XVI. PROPERTY STANDARDS (24 CFR 92.251 and 92.355) The CHDO agrees that it will comply with the 24 CFR 92.251 as relates to property standards, housing quality standards, the City's property standards and accessibility standards under 24 CFR 92.251 (a)(3), as applicable to the unit or project to be rehabilitated, constructed, acquired, or assisted with HOME Program funds, that it will comply with local codes, rehabilitation standards, zoning ordinances, cost effective energy conservation, and effectiveness standards (24 CFR Part 39), and Lead Based Paint Requirements as found in 24 CFR 92.355 and 24 CFR Part 35; and for new construction will meet the current edition of the Model Energy Code published by the Council of America Building Officials. The CHDO shall also require owners of rental housing assisted with HOME Program funds to maintain the housing in compliance with 24 CFR 92.251 for the duration of the affordability period. XVII. PROCUREMENT STANDARDS The CHDO shall establish procurement procedures to ensure that materials and services are obtained in a cost-effective manner. When procuring for services to be provided under this Agreement, the CHDO shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84.40 - .48. Page 10— American Family Housing CHDO Agreement XVIII. RECORDS AND REPORTS (24 CFR 92.508) A. The CHDO shall maintain all records and reports required by the Federal regulations set forth in 24 CFR 92.508 that are pertinent to the activities to be funded under this Agreement and submit same to the City (as applicable) including, but not restricted to: (i) Records providing a full description of each activity undertaken. (ii) Records required to determine eligibility of activities. (iii) Resident/Tenant occupancy by income and family size, racial ethnic group, head of household data, etc. (iv) Before and after pictures of the property(ies). (v) Documentation of inspections before, during and upon completion of a project. (vi) Bids for rehabilitation or construction of the property. (vii) Annual site visits for affordability compliance for multi -family units. (viii) Records relating to Affirmative marketing and MBE/WBE Records as set forth in 24 CFR 92.508 a. 7. ii., including, but not limited to outreach, such as clipped notices and/or advertisements, or paid invoices for electronic media. (ix) Equal opportunity and fair housing records including racial ethnic group and single headed household data, Section 3 data, minority and female owned business data and affirmative fair housing actions. (x) If new construction, records supporting certification for eligibility. (xi) Records for documenting the income of HOME beneficiaries. (xii) Records concerning the use of HOME Program funds for CHDO operating expenses and demonstrating compliance with the requirements of 24 CFR 92.208, 24 CFR 92.300(e) and 92.300(f). (xiii) Records concerning the tenant participation plan required by 24 CFR 92.303. (xiv) Records concerning other Federal requirements as required by 24 CFR 92.508. a. 7. (xv) Program administration records as follows: Page 11— American Family Housing CHDO Agreement a Accounting records regarding the local HOME Investment Trust Fund account and any separate HOME accounts set up for repayments of invested HOME Program funds. ® Records documenting program income from HOME assisted projects. Y Records of all HOME Program written agreements and monitoring review. ® Financial records as required by 24 CFR 92.508 S Records of audits. (xvi) To comply with 24 CFR, Part 92, any data collection requirements, reports and/or records that HUD shall require. B. The CHDO will provide to the City an up-to-date financial report each quarter, within fifteen (15) days of the completion of the quarter. The CHDO will provide to the City an up-to-date narrative report each quarter, within fifteen (15) days of the completion of the quarter. The narrative report shall contain at a minimum the Performance Benchmarks and the CHDO's progress against the Performance Benchmarks. Within ninety (90) days of the CHDO's Fiscal Year, the CHDO shall deliver to the City an audit compliant with the HOME program requirements and the OMB standard that applies to the CHDO. C. The CHDO agrees to submit any and all quarterly reports required by HUD and/or the City on the following due dates or such earlier dates as may be required by the City and/or HUD: Quarter 1 (October lst through December 31st) DUE January 15th Quarter 2 (January l st through March 30t'') DUE April 15th Quarter 3 (April lst through June 30th) DUE July 15th Quarter 4 (July I" through September 31St) DUE October 15tb The City will send the CHDO one reminder notice if the quarterly report has not been received fourteen (14) days after the due date. If the C14DO has not submitted a report fourteen (14) days after the date on the reminder notice, the City will have the option to terminate this Agreement. D. Retention. The CHDO shall retain all financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of at least five years after the affordability period ends. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four-year period, whichever occurs later. Page 12— American Family Housing CHDO Agreement E. Client Data. The CHDO shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to City monitors or their designees for review upon request. F. Disclosure. The CHDO understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the City's or CHDO's responsibilities with respect to services provided under this Agreement, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. G. Closeouts. The CHDO's obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period may include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the CHDO has control over HOME Program funds, including program income. H. Audits & Inspections All CHDO records with respect to any matters covered by this Agreement shall be made available to the City, the California Department of Housing and Community Development, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the CHDO within 30 days after receipt by the CHDO. Failure of the CHDO to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The CHDO hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning subrecipient audits and OMB Circular A-133. XIX. INSPECTION, MONITORING & ACCESS TO RECORDS: 92.508 (A) (3) The City will conduct annual inspections of the Project to protect its interests and regulatory authority for the PROJECT, and will provide information to CHDO regarding onsite inspections and or monitoring to assist it in ensuring compliance. Page 13— American Family Dousing CHDO Agreement The City shall have the right to inspect, monitor, and observe work and services performed by CHDO at any and all reasonable times upon not less than 48 hours' notice. The City shall have the right upon not less than 48 hours' notice to audit the records of CHDO any time during the performance of this Agreement and for a period of five years after affordability period has ended. The City, HUD, the Comptroller General of the United States, or any of their duly authorized representatives or agents, shall have right to inspect any books, documents, papers, and electronic records of the CHDO or its contractors, wherever located, which are directly pertinent to the PROJECT for the purpose of making audit, examination, copies, excerpts, and transcriptions as provided under this Agreement. XX. SUSPENSION & TERMINATION In accordance with 24 CFR 85.43, suspension or termination may occur ifthe CHDO materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85.44. In addition to any other right to terminate this Agreement as set forth herein, if, through any cause, the CHDO shall fail to fulfill in timely and proper manner its obligations under this Agreement, or if the CHDO shall violate any of the covenants, agreements, or stipulations of this Agreement, the City shall thereupon have the right to terminate this Agreement by giving written notice to the CHDO of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. Notwithstanding the above, the CHDO shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of this Agreement by the CHDO and the City may withhold any payments to the CHDO for the purpose of setoff until such time as the exact amount of damages due the City from the CHDO is determined whether by court of competent jurisdiction or otherwise. XXI. TERMINATION FOR CONVENIENCE OF THE CITY In addition to any other right to terminate this Agreement as set forth herein, the City may terminate for its convenience this Agreement at any time by giving at least thirty (30) days notice in writing to the CHDO. If this Agreement is terminated by the City, as provided herein, the City will reimburse for any actual and approved expenses incurred, including those costs involved in terminating this Agreement and shutting down the work as of the date of notice, and the CHDO will be paid as a fee an amount which bears the same ratio to the total compensation as the services actually performed bear to the total service of the CHDO covered by this Agreement, less payments of compensation previously made. XXII. INTENTIONALLY OMITTED Page 14— American family Mousing CHDO Agreement XXIII. ENFORCEMENT (24 CFR 92.504(c)(3)(vii)) The CHDO and the City acknowledge the City's right and responsibility to enforcement of this Agreement. This Agreement may be terminated by the City for lack of progress by the CHDO. Lack of progress is defined as failing to meet the benchmark schedule(s) contained herein. XXIV. EXPANDED CHDO CONFLICT OF INTEREST POLICY No employee, agent, consultant, elected official, or appointed official of AMERICAN FAMILY HOUSING (the "CHDO") may obtain a financial interest or unit benefits from a HOME -assisted activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. This prohibition includes the following: (a) Any interest in any contract, subcontract or agreement with respect to a HOME - assisted project or program administered by the CHDO, or the proceeds thereunder; or (b) Any unit benefits or financial assistance associated with HOME projects or programs administered by the CHDO, including: • Occupancy of a rental housing unit in a HOME -assisted rental project; • Receipt of HOME tenant -based rental assistance; • Purchase or occupancy of a homebuyer unit in a HOME -assisted project; • Receipt of HOME homebuyer acquisition assistance; or • Receipt of HOME owner -occupied rehabilitation assistance This prohibition does not apply to an employee or agent of the CHDO who occupies a HOME - assisted unit as the on -site project manager or maintenance worker. In addition, no member of Congress of the United States, official or employee of HUD, or official or employee of the Participating Jurisdiction shall be permitted to receive or share any financial or unit benefits arising from the HOME -assisted project or program. Prior to the implementation of the HOME -assisted activity, exceptions to these provisions may be requested by the CHDO in writing to the Participating Jurisdiction. The CHDO must demonstrate and certify that the policies and procedures adopted for the activity will ensure fair treatment of all parties, and that the covered persons referenced in this policy will have no inside information or undue influence regarding the award of contracts or benefits of the HOME assistance. The Jurisdiction may grant exceptions or forward the requests to HUD as permitted by 24 CFR 92.356, 85.36 and 84.42, as they apply. Page 15— American Family Housing CHDO Agreement XXV. RELIGIOUS ACTIVITIES (24 CFR 92.257) The CHDO agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.2000), such as worship, religious instruction, or proselytization. If the CHDO is a religious organization, it must comply with 24 CFR, Part 92, Section 92.257, which refers to the regulation that the housing project undertaken by a religious organization must be available to all persons regardless of religion, and there must be no religious or membership criteria for tenants of the property. XXVI. OTHER PROGRAM REQUIREMENTS; 24 CFR 92, SUBPART H (92.350-92.358) The CHDO shall comply with all applicable Federal requirements set forth in Subpart H of the HOME Regulations, including, but not limited to the following: A. OTHER FEDERAL REQUIREMENTS AND NON DISCRIMINATION. (24 CFR 92.350) The CHDO acknowledges that 24 CFR 92.350 provides that the Federal requirements set forth in 24 CFR part 5, subpart A, are applicable to participants in the HOME Program, and that these Federal requirements include the following: (i) Nondiscrimination and equal opportunity. During the performance of this Agreement, the CHDO covenants and warrants that it will comply with the following; The Fair Housing Act (42 U.S.C. 3601-19) and implementing regulations at 24 CFR part 100 et seq.; Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations at 24 CFR part 107; title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) (Nondiscrimination in Federally Assisted Programs) and implementing regulations at 24 CFR part 1; the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and implementing regulations at 24 CFR part 146; section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 ofthis title; title II of the Americans with Disabilities Act, 42 U.S.0 12101 et seq. 24 CFR part 8; section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR part 135; Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086, and 12107 (3 CFR, 1964-1965Comp.,p. 339; 3 CFR, 1966-1970 Comp., p. 684; 3 CFR, 1966-1970 Comp., p. 803; 3 CFR, 1978 Comp., p.' 230; and 3 CFR, 1978 Comp., p. 264, respectively) (Equal Employment Opportunity Programs) and implementing regulations at 41 CFR chapter 60; Executive Order 11625, as amended by Executive Order 12007 (3 CFR, 1971-1975 Comp., p. 616 and 3 CFR, 1977 Comp., p. 139) (Minority Business Enterprises); Executive Order 12432 (3 CFR, 1983 Comp., p. 198) (Minority Business Enterprise Development); and Executive Order 12138, as amended by Executive Order 12608 (3 CFR, 1977 Comp., p. 393 and 3 CFR, 1987 Comp., p. 245) (Women's Business Enterprise). Page 16- American Family Dousing CHDO Agreement Equal access to HUD -assisted or insured housing. (i) Eligibility for HUD -assisted or insured housing. A determination of eligibility for housing that is assisted by HUD or subject to a mortgage insured by the Federal Housing Administration shall be made in accordance with the eligibility requirements provided for such program by HUD, and such housing shall be made available without regard to actual or perceived sexual orientation, gender identity, or marital status. Prohibition of inquiries on sexual orientation or gender identity. No owner or administrator of HUD -assisted or HUD -insured housing, approved lender in an FHA mortgage insurance program, nor any (or any other) recipient or subrecipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, or occupant of, HUD - assisted housing or housing whose financing is insured by HUD, whether renter- or owner -occupied, for the purpose of determining eligibility for the housing or otherwise making such housing available. This prohibition on inquiries regarding sexual orientation or gender identity does not prohibit any individual from voluntarily self -identifying sexual orientation or gender identity. This prohibition on inquiries does not prohibit lawful inquiries of an applicant or occupant's sex where the housing provided or to be provided to the individual is temporary, emergency shelter that involves the sharing of sleeping areas or bathrooms, or inquiries made for the purpose of determining the number of bedrooms to which a household may be entitled. Disclosure requirements. The disclosure requirements and prohibitions of 31 U.S.C. 1352 and implementing regulations at 24 CFR part 87; and the requirements for funding competitions established by the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3531 et seq.). (iv) Debarred, suspended, or ineligible contractors and participants. The C14DO and its principals shall comply with the prohibitions at 2 CFR Part 2424 on the use of debarred, suspended, or ineligible contractors and participants. The CHDO and its principals covenant and warrant that they (a) are not presently debarred, suspended, proposed for debarment, declared ineligible, or involuntarily excluded from covered transactions by any Federal department or agency; (b) have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statement or receiving stolen property; (c) are not presently indicted for or otherwise criminally or civilly charged by local governmental entity (Federal, State or local) with commission of any of the offenses enumerated in (b) of this certification; and (d) have not within a three year period preceding this application had one or more public transactions (Federal, State or local) terminated for cause or default. Where the CHDO is unable to certify to any other statements in this certification, such CHDO shall attach an explanation behind this page. Page 17— American Family Housing CHDO Agreement (v) Drug Free Work Place. The CHDO will provide drug -free workplaces in accordance with the Drug -Free Workplace Act of 1988 (41 U.S.C. 701, et seq.) and HUD's implementing regulations at 2 CFR Part 2429. (vi) Environmental Conditions. a. The CHDO will comply with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the Coastal Barrier Resources Act (16 U.S.C. 3601). b. The CHDO will comply with the provision of the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321), and applicable related environmental authorities listed in HUDS's implementing regulations at 24 CFR parts 50 and 58. (vii) Lead Based Paint. 24 CFR 92.355 Any property assisted with HOME Program funds shall comply with lead based paint standards set forth in 24 CFR 92.355, as provided above. (viii) Conflict of Interest (24 CFR 92.356) a. Interest of employees, officers and officials. 1. The CHDO agrees to abide by the provisions of 24 CFR 85.36 and 24 CFR 84.42 respectively. In all cases not governed by 24 CFR 85.36 and 24 CFR 84.42, the provisions of 24 CFR 92.356 shall apply. which include (but are not limited to) the following: 2. The CHDO shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. 3. No employee, officer or agent of the CHDO shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. 4. No covered persons who exercise or have exercised any functions or responsibilities with respect to HOME -assisted activities, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the HOME -assisted activity, or with respect to the proceeds from the HOME -assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a "covered person" includes any person Page 18— American Family Housing CHDO Agreement who is an employee, agent, consultant, officer, or elected or appointed official of the City, the CHDO, or any designated public agency. (ix) Prohibition against occupying HOME assisted units. No officer, employee, agent, official or consultant of the CHDO may occupy a unit assisted with HOME Program funds. XXVII. ADMINISTRATIVE REQUIREMENTS (24 CFR 92.505) A. Financial Management The CHDO shall comply with 24 CFR 92.505 which includes the requirements of OMB Circular No. A-122, 24 CFR Part 85 and the following requirements of 24 CFR Part 84 that apply to subrecipients receiving HOME Program funds that are non-profit organizations that are not governmental subrecipients: §§ 84.2, 84.5, 84.13-84.16, 84.21, 84.22,84.26-84.28, 84-30, 84-31, 84.34-84.37, 84.40-84.48, 84.51,84.60-84.62,84.72 and 84.73. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Audit (24 CFR 92.506) All audits of the CHDO shall be conducted in accordance with 24 CFR 84.26 and 85.26. C. Conduct (a) Assignability The CHDO shall not assign or transfer any interest in this Agreement without the prior written consent of the City in accordance with the procedures set forth in Section 2.5 of this Agreement. (b) Contracts (i) Approvals: The CHDO shall not enter into any contracts with any agency or individual in the performance of this Agreement without the written consent of the City prior to the execution of such agreement. (ii) Monitoring: The CHDO will monitor all contracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. (iii) Content: The CHDO shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any contract executed in the performance of this Agreement. (iv) Selection Process: The CHDO shall undertake to insure that all contracts in the performance of this Agreement shall be awarded on a fair and open Page 19— American Family Housing CHDO Agreement competition basis in accordance with applicable procurement requirements. Executed copies of all contracts shall be forwarded to the City along with documentation concerning the selection process. (c) Hatch Act The CHDO agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. XXVIII. LOBBYING A. The CHDO hereby certifies that: (i) 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 officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; (ii) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and (iii) It will require that the language of paragraph (d) of this 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 CHDOs shall certify and disclose accordingly. (iv) Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Page 20— American Family Housing CHDO Agreement B. Copyright If this Agreement results in any copyrightable material or inventions, the City and/or grantor agency reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. XXIX. EQUAL EMPLOYMENT OPPORTUNITY During the performance of this Agreement, the CHDO agrees as follows: (a) The CHDO will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin(s). The CHDO will take affirmative action to ensure the applicants are considered for employment, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin(s). Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CHDO agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer of the City setting forth the provisions of this nondiscrimination clause. (b) The CHDO will, in all solicitations or advertisements for employees placed by or on behalf of the CHDO, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (c) The CHDO will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the City's contracting officer, advising the labor union or worker's representative of the CHDO's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) The CHDO will comply with all provisions of Executive Order 1 l 246 of September 24, 1965, and of the rules, regulations, and relevant orders of the U.S. Secretary of Labor. (e) The CHDO will furnish to the City all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the U.S. Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the City and the U.S. Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and order. (f) In the event the CHDO is found by the City to be in noncompliance with the nondiscrimination clauses of this Agreement or with any of such rules, regulations or orders, this Agreement may be canceled, terminated or suspended in whole or in part and the CHDO may be Page 21— American Family Dousing CHDO Agreement declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the U.S. Secretary of Labor or as otherwise provided by law. The CHDO will include the provisions of paragraphs (a) through (f) of this Section XXIX in every subcontract or purchase order unless exempted by rules, regulations, or orders of the U.S. Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The CHDO will take such action with respect to any subcontract or purchase order as the City may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the CHDO becomes involved in, or is threatened with litigation with a subcontractor or vendor as a result of such direction by the City, the CHDO may request the United States to enter into such litigation to protect the interest of the United States. XXX. LABOR, TRAINING & BUSINESS OPPORTUNITY (24 CFR 92.354) A Prohibited Activity (i) The CHDO is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities. (ii) The CHDO agrees to comply with the federal regulations governing training, employment and business opportunities set forth in 24 CFR Section 92.354 as follows: B. Labor Standards The CHDO agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.), 12 USC § 1701u, and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The CHDO agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The CHDO shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the City for review upon request. The CHDO agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this Agreement, shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required Page 22— American Family Housing CHDO Agreement under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the CHDO of its obligation, if any, to require payment of the higher wage. The CHDO shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. C. "Section 3" Clause (1) Compliance: Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the Federal financial assistance provided under this Agreement and binding upon the City, the CHDO and any of the CHDO's contractors and subcontractors. Failure to fulfill these requirements shall subject the City, the CHDO and any of the CHDO's contractors and subcontractors, their successors and assigns, to those sanctions specified by the agreement through which Federal assistance is provided. The CHDO certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The CHDO further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Agreement: "The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U. S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located." The CHDO further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead -based paint hazards), housing construction, or other public construction project are given to low- and very low- income persons residing within the metropolitan area in which the HOME -funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead -based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the HOME -funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. Page 23— American Family Housing CHDO Agreement The CHDO certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. D. Notifications: The CHDO agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. E Contracts: The CHDO will include this Section clause in every contract and will take appropriate action pursuant to this Agreement upon a finding that the contractor is in violation of regulations issued by the grantor agency. The CHDO will not contract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any contract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. XXXI. GENERAL CONDITIONS A. CHDO's Warranties. CHDO represents and warrants (1) that it has access to professional advice and support to the extent necessary to enable C14DO to fully comply with the terms of this Agreement; (2) that it is duly organized, validly existing and in good standing under the laws of the State of California; (3) that it has the full power and authority to undertake the Project and to execute this Agreement; (4) that the persons executing and delivering this Agreement are authorized to execute and deliver such documents on behalf of CHDO; (5) except as disclosed to the City in writing, there are no actions or proceedings pending or, to the best of the CHDO's knowledge, threatened against the CHDO before any court or administrative agency in any way connected with the Project which could adversely affect the CHDO's ability to perform the activities contemplated hereunder; (6) neither this Agreement nor anything provided to be done hereunder violates or shall violate any contract, agreement or instrument to which the CHDO is a party or which affects the Project or any part thereof; (7) the CHDO is not in default in respect of any of its obligations or liabilities pertaining to this Agreement, nor is there any state of facts or circumstances or conditions or events which, after notice, lapse of time, or both, would constitute or result in any such default under this Agreement; and (8) the CHDO has not entered into any agreements which will adversely affect the title to the Project or the CHDO's right to develop and use the Project as provided in this Agreement, and the CHDO will not enter into any such agreements after the date hereof. B. Governing Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. C. Attorneys' Fees. In the event that any action, suit or other proceeding is brought to enforce the obligations of under this Agreement, each party shall bear its own costs and expenses of suit, including attorneys' fees, expert witness fees and all costs incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions therefrom. Page 24— American Family Housing CHDO Agreement D. Notices, Demands, and Communications Between the Parties. Formal notices, demands, and communications between City and CHDO shall be sufficiently given if: (i) personally delivered; (ii) delivered by same day or overnight courier (acknowledged by receipt showing date and time of delivery); or (iii) dispatched by registered or certified mail, postage prepaid, return receipt requested, to the addresses set forth below: If to CHDO: Robert Murphy General Manager American Family Housing 15161 Jackson St. Midway City, CA 92655 With a copy to: Jim Miller President American Family Housing 15161 Jackson St. Midway City, CA. 92655 If to City: The City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Kellee Fritzal With a copy to: City Attorney's Office City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Notices personally delivered or delivered by courier shall be effective upon receipt or refusal to accept delivery. Mailed notices shall be effective on the earlier of (i) receipt of refusal to accept delivery, or (ii) noon on the second business day following deposit in the United States mail. E. Acceptance of Service of Process. In the event that any legal action is commenced by CHDO against City, service of process on City shall be made by personal service upon the City Manager or the City Clerk, or in such other manner as may be provided by law. In the event that any legal action is commenced by City against CHDO, service of process on CHDO shall be made by in any manner provided by law, and shall be valid whether made within or without the State of California. F. Conflicts of Interest. No member, official, or employee of City shall have any personal interest in this Agreement, nor participate in any decision relating to this Agreement, that is in violation of any applicable law, regulation or ordinance. G. Titles and Captions. Titles and captions are for convenience only and shall not be construed to limit or extend the meaning of this Agreement. Page 25- American Family Housing CHDO Agreement H. Gender. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. I. Modifications. Any amendment, alteration, change, or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. J. Merger of Prior Agreements and Understandings This Agreement and all documents incorporated herein contain the entire understanding among the parties hereto relating to the transactions contemplated herein and all prior or contemporaneous agreements, understandings, representations, and statements, oral or written. K. No Third Parties Benefited. This Agreement shall create no third -party beneficiary rights or any other rights in favor of any persons, firms or corporations, except as may be expressly stated in this Agreement. This Agreement is for the sole use and benefit of the parties hereto and is not for the use or benefit of any other person or entity. L. Assurances to Act in Good Faith. CHDO and City agree to execute all documents and instruments and to take all action, including timely depositing funds as required hereby, and shall use their respective best efforts to accomplish the acquisition and rehabilitation of the Property in accordance with the provisions hereof. M. Warranty Against Payment of Consideration for Agreement. Except as provided in this Agreement, CHDO warrants that it has not paid or given, and will not pay or give, any person any money or other consideration for obtaining this Agreement that is in violation of any law. N. Nonliabilit, of Officials and Employ. No member, official, or employee of the City shall be personally liable to the CHDO or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the CHDO or to its successor, or on any obligations under the terms of this Agreement. O. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against any parry by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. P. Counterparts. This Agreement maybe executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Q. Severabilily. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If, however, any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. Page 26— American Family Housing CHDO Agreement R. Extension of Times of Performance. Notwithstanding the foregoing, in addition to the specific provisions of this Agreement, performance by any party hereunder shall not be deemed to be in default during an event of Force Majeure. An extension of time for an event of Force Majeure shall be limited to the period of such event, and shall commence to run from the time of the commencement of the cause, provided notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. In the event of such delay, the party delayed shall continue to exercise reasonable diligence to minimize the period of delay. Times of performance under this Agreement may also be extended by mutual written agreement by City and CHDO. In addition, the City Manager or designee shall have the authority on behalf of City to approve extensions of time not to exceed a cumulative total of 90 days. S. Inspection of Books and Records. The City or its designee shall have the right at all reasonable times to inspect the books, records and/or other documents of the CHDO pertaining to the Project as pertinent to the purposes of this Agreement. T. Waivers. The waiver by City or CHDO of any term, covenant, or condition herein contained shall not be a waiver of such term, covenant, or condition on any subsequent breach. U. Assignment Prohibited. The obligations undertaken by CHDO pursuant to this Agreement shall not be delegated or assigned to any other person or agency unless City shall first consent in writing to the performance or assignment of such service or any part thereof by another person or agency. V. Agreement Binding on Successors. This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representative, successors and assigns. W. No Partnership. Nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, or any other similar relationship between the parties hereto or cause the City to be responsible in any way for the debts or obligations of the CHDO or any other person. The CHDO and its employees and agents shall be deemed to be independent contractors, and not agents or employees of the City, and shall not attain any rights or benefits under the civil service or pension ordinances of the City, or any rights generally afforded classified or unclassified employee; further they shall not be deemed entitled to state Compensation benefits as an employee of the City. X. Funding Contingent on Availability of HOME Program funds. Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and is subject to amendment or termination due to lack of funds, or authorization, reduction of funds, and/or change in regulations. XXXII. EXECUTION OF AGREEMENT; TIME FOR ACCEPTANCE This Agreement does not take effect until executed by the CHDO and City. This Agreement, when executed by the CHDO and delivered to the City, must be authorized, executed and delivered by the Page 27— American Family Dousing CHDO Agreement City within thirty (30) days after the date of signature by the CHDO, or this Agreement may be terminated by the CHDO on written notice to the City. The City Manager or designee is hereby authorized and directed to take such other and further actions, and sign such other and further agreements and documents on behalf of the City as may be necessary or proper to effect the terms of this Agreement. [REMAINDER OF PAGE INTENTIONALLY BLANK] [SIGNATURES ON FOLLOWING PAGE] Page 28— American Family Housing CHDO Agreement IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. AMERICAN FAMILY DOUSING (AFD) a California non-profit organization By/ r Robert Mum y, G� eral Manager Dated: '7 2- (� PZ ® ® '-?- By: _ Name: Its: _ Dated: CITY OF HUNTINGTON BEACH a municipal corporation of the State of California 1�113 Mayor �'' 1 Dated INITIATED AND APPROVED: Director of Economic Development REVI ND APPROVED" P I Cf Manager APPROVED AS FOR FORM: Attorney KANE, BALLMER & BERKMAN Special Counsel Page 29— American Family Dousing CHDO Agreement IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. AMERICAN FAMILY HOUSING (AFH) a California non-profit organization By: CITY OF HUNTINGTON BEACH a municipal corporation of the State of California Robert Murphy, General Manager Dated: Mayor Dated City Clerk By: INITIATED AND APPROVED: Name: Its: Dated: Director of Economic Development REVIEWED AND APPROVED" City Manager C PROVED AS FOR FORM: City Attorney KANE, BALLMER & BERKMAN Special Counsel Page 29— American Family Housing CHDO Agreement ATTACHMENT NO. 1 RELATER WEBSITES TO ASSIST CHDO WITH OTHER FEDERAL PROVISION COMPLIANCE Age Discrimination: The prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 CFR, Part 146, and the prohibitions against discrimination against handicapped individuals under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR, Part 8; http://www.hud.gov/offices/theo/disabilities/sect5O4.cfi-n Aquifers: The Safe Drinking Water Act of 1974, (42 U.S.C. Sec. 201, 300(0 et seq.), and (21 U.S.C. Sec. 349) as amended, particularly Section 1424 (e) (42 U.S.C. Sec. 300h-303(e); http://www.law.comelf.edu/uscode/42/usc sup 01 42 10 6A 20 XII 30 C.html Archeological: The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et seq.), particularly Section 3 (16 U.S.C. Sec. 469a-1), as amended by the Archeological and Historic Preservation Act of 1974; http://www.nps.gov/history/local-law/FHPL ArchHistPrespdf Clean Air: The Clean Air Act (41 U.S.C. Sec. 7401 et seq.) as amended, particularly Section 176(c) and (d) (42 U.S.C. Sec. 7506(c) and (d)); http-Hwww.jzpo.gov/fdsys/Tka/USCODE-2008- title42/pdf/USCODE-2008-title42-chM85.pdf Coastal Zone Management: The Coastal Zone Management Act of 1972, (16 U.S.C. Sec. 1451 et seq.) as amended, particularly Section 307(c) and (d) (16 U.S.C. Sec. 1456(c) and (d); http://www.nps.gov/history/local-law/fhpl cstlzonemngmt.pddf Endangered Species: The Endangered Species Act of 1973, (16 U.S.C. Sec. 1531 et seq.) as amended, particularly Section 7 (16 U.S.C. Sec. 1536)); http://www.nmfs.noaa.gov/pr/laws/esa/text.htm Environmental Review Procedures for Title I Community Development Block Grant Programs, 24 CFR Part 58, as amended in 47 Fed. Reg. 15750 (April 12, 1982); http://www.access.gpo.gov/nara/cfr/waisidx 00/24cfr58 OO.html Equal Employment Opportunity: The requirements of Executive Orders 1246 (3 CFR 1964-65, Comp., p. 339) (Equal Employment Opportunity) and the implementing regulations issued at 4I CFR, Chapter 60. http://www.fed log be.org/issues/hudpolicy.htm Equal Opportunity in Housing: Executive Order 11063, as amended by Executive Order 12259, and 24 CFR part 107, Nondiscrimination and Equal Opportunity in Housing under Executive order 11063 or 24 CFR, Part 107 shall be a proper basis for the imposition of sanctions specified in 24 CFR 107.60; http://www.access.gpo.gov/nara/cfr/waisidx 00/24cfr107 OO.html Page 30— American Family Dousing CDDO Agreement Fair Housing Act: The Fair Housing Act (42U.S.C. 3601-20) and implementing regulations at 24 CFR part 10; Executive Order II063, as amended by Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., 652 and 3CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing and implementing regulations at 24 CFR, Part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (Nondiscrimination on Federally Assisted Programs) and implementing regulations issued at 24 CFR, Part 1; hqp://www.hud.szov/offices/fbeo/FHLaws/index.cfm Farmlands: Farmlands Protection and Policy Act of 1981, (7 U.S.C. Sec. 4201 et. seq.) 24 CFR Part 51, Environmental Criteria and Standards. http://www.wbdg.org/pdfs/24cfr51 pdf Flood Plain: Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001 et. seq.) as amended, particularly Sections 102(a) and 202(a) (42 U.S.C. Sec. 4012a (a) and Sec. 4106(a); and Executive Order 11988, Floodplain Management, May 24, 1977 (42 Fed. Reg. 26951), particularly Section 2. http://www.fema.Qov/bdf/fhm/frm acts.ndf www.archives.aov/federal ... /executive-order/I 1988.htm1 Historic Preservation: National Historic Preservation Act of 1966.(16 U.S.C. Sec. 470 et seq.) and 40 CFR Parts 1500-1508; Section 106 (16 U.S.C. Sec. 470f); and 36 CFR 800 Immivation Status: Requirement that all members of a household must be either US citizens, resident aliens (have a green card),or one of several exempt classes to occupy a HOME assisted unit. http://74.125.47.132/search?q=cache:Y9- J6QPvSoJ:www.aoa.goy/prof/civil rights/Non citizens/vOganio£pdf+Fed+Register+Vo1+62+No+ 221 +pate+61344&cd=1 &hl=en&ct=clnk&gl=us&client=firefox-a Lead Based Paint: Applies to all existing units built before 1978; Title IV of the Lead Based Paint Poisoning Prevention Act (42 U.S.C. Sec. 4831). http://frwebgate2.access.gl2o.gov/cam bin/TEXT ate.cgi?WAISdoclD=aQikBT/O/1/O&WAISaction=retrieve Minority and Women's Business Enterprise: The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise), and 12138 (concerning Women's Business Enterprise). Consistent with HUD's responsibilities under these Orders, each applicant must make efforts to encourage the use of minority and women's business enterprises in connection with HOME funded activities. Each Contractor must prescribe procedures acceptable to the State to establish activities to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women. The Contractor/Subcontractor will be required to identify contracts which have been bid by minority owned, women owned, and/or small disadvantaged businesses http://www.hud.gov/offices/cpd/communit dy evelopment/toolkit/files/MBE- WBEOutreach.ndf Noise Abatement and Control: 24 CFR 51 B http://www.wbdg.org/pdfs/24cfr51.pdf Page 31— American Family Housing CHDO Agreement Protection and Enhancement of the Cultural Environment, May 13, 1971 Executive Order 11593, (36 Fed. Reg. 8921), particularly Section 2(c); http://www.archives.Rov/federal- re5ister/codification/executive-order/ 115 93. html Environmental Justice: [Executive Order 12898] http://www.epa.gov/Reg•o�j/exec order 12898.pdf Relocation: The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C., Sec. 4601 et. seq.), 49 CFR Part 24, and 24 CFR Section 570.49a (55 Fed. Reg. 29309 (July 18, 1990)).httpJ/www.hud.gov/offices/cpd/library/relocation/index.cfm Section 3: Employment Opportunities: The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very -low income residents in connection with projects and activities in their neighborhoods http://www.hud.gov/offices/theo/section3/section3.cfm Sitting of HUD -Assisted Proiects near Hazardous Operations: Establishes acceptable separation distance for the sitting of residential buildings, mobile home parks or other HUD -assisted projects near stationary hazardous operations which store, handle or process chemicals or petrochemicals of an explosive or flammable nature. 24 CFR 51 C http://www.hud. gov/offices/cpd/environment/training/guidebooks/hazfacil ities/ Toxic or Hazardous Substances and Radioactive Materials: Particular attention should be given to any site proposed for HUD assistance that is located on, or in the general proximity of, such areas as dumps, landfills, industrial sites or other locations that contain hazardous wastes. It is HUD policy that all property proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property. Wetlands: Prohibits the degradation or destruction of wetlands; Executive Order 11990 Protection of Wetlands, May 24, 1977 (42 Fed. Reg. 26961), particularly Section 2 and 5; http://www.epa.gov/OWOW/wetlands/regs/eol 1990.html Wild & Scenic Rivers: Applicable to projects within one mile of a designated wild and scenic river. The Wild and Scenic Rivers Act of 1968, (16 U.S.C. Sec. 1271 et seq.) as amended, particularly Section 7(b) and (c) (16 U.S.C. Sec. 1278(b) and (c)); http://www.nls.gov/offices/cpd/environment/review/rivers.cfm Page 32— American Family Dousing CHDO Agreement ATTACHMENT NO 2. INTENTIONALLY OMITTED (behind this page) Page 33— American Family Housing CHID® Agreement ATTACHMENT NO 3. PROJECT BUDGET (behind this page) Page 34— American Family Mousing CH DO Agreement TABLE OF CONTENTS Page L AMOUNT AND TERM OF AGREEMENT [24 CFR 92.504(c) (3) (ix)] ........ I IL ACCELERATION OF CITY FINANCIAL ASSISTANCE; ENFORCEMENT OF NOTE.............................................................................. 3 III CITY'S CONDITIONS TO DISBURSEMENT ................................................ 3 IV. ELIGIBLE PROJECT COSTS (24 CFR 92.206).............................................. 3 V. PROJECT BUDGET............................................................................................ 4 VI. HOME ACTIVITY/WORK SCOPE (24 CFR 92.504)..................................... 4 VIL REIMBURSEMENT OF EXPENSES................................................................ 5 VIII. REPAYMENT OF GRANT................................................................................. 5 IX. PERFORMANCE MEASUREMENT................................................................ 5 X. INSURANCE AND INDEMNIFICATION........................................................ 6 XI. AFFORDABILITY PERIOD (24 CFR 92.254).................................................. 7 XII. INCOME LIMITS AND RENT LIMITS........................................................... 7 XIII. PROJECT REQUIREMENTS............................................................................ 8 XIV. CHDO PROVISIONS (24 CFR 92.208; 92.300 AND 92.301)........................... 9 XV. AFFIRMATIVE MARKETING; MINORITY OUTREACH PROGRAM (24 CFR92.351)......................................................................................................... 10 XVI. PROPERTY STANDARDS (24 CFR 92.251 and 92.355) ............................... 10 XVII. PROCUREMENT STANDARDS..................................................................... 10 XVIII. RECORDS AND REPORTS (24 CFR 92.508)................................................. 11 XIX. INSPECTION, MONITORING & ACCESS TO RECORDS: 92.508 (A) (3) ............................................................................................................................... 13 XX. SUSPENSION & TERMINATION................................................................... 14 XXI. TERMINATION FOR CONVENIENCE OF THE CITY .............................. 14 XXII. DEFAULT -LOSS OF GRANT FUNDS............................................................ 14 XXIII. ENFORCEMENT (24 CFR 92.504(c)(3)(vii)).................................................. 15 XXIV. EXPANDED CHDO CONFLICT OF INTEREST POLICY ......................... 15 XXV. RELIGIOUS ACTIVITIES (24 CFR 92.257).................................................. 16 XXVI. OTHER PROGRAM REQUIREMENTS; 24 CFR 92, SUBPART II (92.350- 92.358)................................................................................................................. 16 XXVII. ADMINISTRATIVE REQUIREMENTS (24 CFR 92.505)........................... 19 XXVIII. LOBBYING......................................................................................................... 20 XXIX. EQUAL EMPLOYMENT OPPORTUNITY................................................... 21 XXX. LABOR, TRAINING & BUSINESS OPPORTUNITY (24 CFR 92.354)...... 22 XXXI. GENERAL CONDITIONS................................................................................ 24 XXXII. EXECUTION OF AGREEMENT; TIME FOR ACCEPTANCE ...................... 27 Page 35- American Family Housing CHDO Agreement City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk August 15, 2012 Robert Murphy, General Manager American Family Housing 15161 Jackson St. Midway City, CA 92655 Dear Mr. Murphy: Enclosed for your records is a fully executed duplicate original of the "Community Housing Development Organization (CHDO) Agreement Home Investment Partnership Program (HOME)." Sincerely, JF:pe . Enclosure &followup:agrmthr Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand