Subrecipient Agreement; Boulder County, Broomfield County/City/HOME Consortium; HOME TBRAContract Tracking > Thank You
STANDARD
Contract Routing Cover Sheet
Please print and attach to your document
Page 1 of I
OFFICE OF THE CITY ATTORNEY
DEC 2 8 2015
70:
Counter Parties City and County of Broomfield
Contract Title / Type HOME TBRA
Number
Description Please find attached a HOME consortium agreement for execution between the city and the city
and county of Broomfield for the Tenant Based Rental Assistance program administered by
Broomfield as a member of the Boulder Broomfield Regional HOME Consortium. PLEASE RETURN
BY 12/30. Special Instructions PLEASE RETURN Y,42/30; Once executed, please email and interoffice a copy to Kate Masingale.
Thank you! (\
Amount $77,950 Expense Type (OUTGOING,��
j
• Dept. Head SignaturX
NOTE; Originating Departme. : Identify with a check mark all areas document needs to be routed. ,f'Pv
• Purchasmo(
Vu4
• Bud --f
• SalessT-Y /^J
• CAO /'>{, � �9`
• City Mannagerx
i
• Central Record= J�
Contract Trackinq Home I Siqnature Routing Form I Track Contract Status I Update Contract Status
http://intraweb.ci.boulder.co.us/ContractTracking/serviet/Controller 12/22/2015
You can view the status of your contract using the Contract Trackino Status Pane.
I
Routing Number
20151222-1375
Originating Dept
Housing
Contact Person
Edy Urken
Phone Number
3034414042
Project Manager / Contract Kate Masingale
E-mail
masingalek@bouldercolorado.gov
Administrator
llG I
Counter Parties City and County of Broomfield
Contract Title / Type HOME TBRA
Number
Description Please find attached a HOME consortium agreement for execution between the city and the city
and county of Broomfield for the Tenant Based Rental Assistance program administered by
Broomfield as a member of the Boulder Broomfield Regional HOME Consortium. PLEASE RETURN
BY 12/30. Special Instructions PLEASE RETURN Y,42/30; Once executed, please email and interoffice a copy to Kate Masingale.
Thank you! (\
Amount $77,950 Expense Type (OUTGOING,��
j
• Dept. Head SignaturX
NOTE; Originating Departme. : Identify with a check mark all areas document needs to be routed. ,f'Pv
• Purchasmo(
Vu4
• Bud --f
• SalessT-Y /^J
• CAO /'>{, � �9`
• City Mannagerx
i
• Central Record= J�
Contract Trackinq Home I Siqnature Routing Form I Track Contract Status I Update Contract Status
http://intraweb.ci.boulder.co.us/ContractTracking/serviet/Controller 12/22/2015
SUBRECIPIENT AGREEMENT BETWEEN THE BOULDER COUNTYBROOMFIELD
COUNTY HOME CONSORTIUM AND THE CITY AND COUNTY OF BROOMFIELD
This Subrecipient Agreement ("Agreement") is made this day of FC, . 2015 by and
between the City of Boulder, as the Lead Agency for the Boulder County/Broomfield County
HOME Consortium (hereinafter the "Consortium"), and the City and County of Broomfield,
Colorado (hereinafter the "Subrecipient").
RECITALS:
WHEREAS, the United States Government, through the National Affordable Housing
Act of 1930, has established the HOME Investment Partnerships Act Program ("HOME" or
"HOME Program" or "the Act"), and
WHEREAS, the City of Longmont, Boulder County, the Subrecipient and the City of
Boulder entered into a Home Consortium Intergovernmental Agreement dated October 25, 2012
(the "Intergovernmental Agreement"), by which the parties thereto agreed to participate in the
Consortium for the purpose of implementing a regional HOME Program under the federal
HOME Investment Partnerships Act Program, and
WHEREAS, the Intergovernmental Agreement was subsequently amended to include
additional incorporated cities and towns by name into the Intergovernmental Agreement, and
WHEREAS, the Intergovernmental Agreement designated the City of Boulder as the
Lead Agency to act in a representative capacity for all of the parties thereto, and
WHEREAS, Section 216 (2) of the Act, 42 U.S.C. 12746, provides that a consortium of
geographically contiguous or overlapping geographical areas within which separate legal
governmental subdivisions operate can be considered to be a single unit of general local
government for the purposes of receiving an allocation and participating in the HOME Program;
and
WHEREAS, in June, 2006 the Consortium submitted its Intergovernmental Agreement to
the U.S. Department of Housing and Urban Development (hereinafter "HUD") for this purpose;
and
WHEREAS, in its application for HOME funds the Consortium declared its intent to
provide HOME funds to the Subrecipient for its use in continuing its affordable housing
program; and
WHEREAS, the Subrecipient has heretofore expressed its intent to assume responsibility
from the Consortium for its affordable housing program with HOME funds and in accordance
with HOME regulations; and
WHEREAS, on March 30, 2007, HUD notified the Consortium that HUD had approved
its request to participate as a consortium in the HOME program; and
1
WHEREAS, July 22, 2015, the Consortium executed a HOME Grant Agreement with
HUD to govern expenditure of HOME funds by the Consortium.
NOW, THEREFORE, in consideration of the matters set forth above and below, the
parties agree as follows.
Section 1. Definitions. Whenever used in this Agreement:
A. The term "Grant Agreement" means the agreement between the Consortium and HUD
executed by the Consortium on July 22, 2015, in connection with the HOME Program (the
"Program').
B. The terms "grant" and "grant funds" mean the assistance provided under this Subrecipient
Agreement.
C. The term "matching funds" means the permanent contribution to housing assisted in the
HOME Program.
Section 2. Purpose of Subrecinient Agreement.
The purpose of this Agreement is to set forth the terms and conditions under which the
Consortium shall grant HOME funds to the Subrecipient for its affordable housing projects. This
Agreement sets forth rights and responsibilities of both parties in connection with the
Subrecipient's program. In this Agreement, the Subrecipient assumes full responsibility for
adherence to all applicable laws, assurances, regulations, and guidelines associated with the
Program.
Section 3. Applicable Laws, Assurances, Regulations, Guidelines.
The financial assistance which is the subject of this Agreement is authorized by Title II of the
Cranston -Gonzalez National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et
seq.
Section 4. Comoliance with Federal. State and Local Laws
The Subrecipient shall comply with all applicable laws and regulations of the United States,
State of Colorado, and the City including, without limitation, all rules, regulations and guidelines
of the U.S. Department of Housing and Urban Development, except for the environmental
responsibilities and review process under Executive Order 12372, which are the responsibility of
the City. The Subrecipient shall comply with all applicable provisions of 24 CFR 92, Subpart H
entitled "Other Federal Requirements" which is found attached to this Agreement as Exhibit A.
The Subrecipient shall comply with applicable uniform administrative requirements, as described
in 24 CFR §92.505. In addition, if a project (other than a tenant based rental assistance project)
contains five or more HOME Assisted Units, the Subrecipient shall comply with the City's
Affirmative Marketing Strategy. Subrecipient shall comply with income limits and other
E
requirements contained 24 CFR § 92.252 and 24 CFR § 92.254 for rental housing and
homeownership projects, respectively.
Section 5. Grant Award.
Subject to the terms of the Grant Agreement and this Agreement, the Consortium agrees to
provide up to $77,950.35 in 2015 HOME funds (CFDA # 14.239) to the Subrecipient for
activities identified as the responsibility of the Subrecipient. The Subrecipient agrees that funds
awarded it pursuant to this Agreement shall be used for the following purposes:
Tenant Based Rental Assistance $77,950.35
The Subrecipient may change the listed purposes and allocated amounts without amending this
agreement provided that the changes qualify as "Minor Changes" as defined in Section G of the
Citizen Participation Plan adopted by the Consortium and approved by HUD as part of the 2015-
2019 Consolidated Plan.
A description of the project listed above, including the tasks to be performed, a schedule for
completing the tasks and a budget, is attached as Exhibit B.
If the Subrecipient provides the grant funds to for-profit owners or developers, nonprofit owners
or developers, subrecipients, homeowners, homebuyers, tenants receiving Tenant Based Rental
Assistance, or contractors, the Subrecipient must have a written agreement with the recipient
which meets the requirements of 24 C.F.R. §92.504.
Funds must be fully expended within three years of the Agreement being signed.
Section 6. Matchine Funds. The Subrecipient acknowledges its requirement to provide
matching funds in an amount equal to no less than 25 percent of the total HOME funds drawn
down for all project costs except administration. The match obligation may be met with any of
the following specific sources.
• Cash or cash equivalents from a non-federal source;
• Value of waived taxes, fees or charges associated with HOME projects;
• Value of donated land or real property;
• Cost of infrastructure improvements associated with HOME projects;
• A percentage of the proceeds of single- or multi -family housing bonds issued by state,
state instrumentality or local government;
• Value of donated materials, equipment, labor and professional services;
• Sweat equity.
The Subrecipient acknowledges and agrees that the Consortium is not responsible for providing
the Subrecipient with any funds to meet the Subrecipient's matching requirements.
The Subrecipient and Consortium agree that the Subrecipient's 2015 match obligation will be
met by the Consortium.
Section 7. Efisible Costs
The following costs are eligible under HOME Program regulations at 24 CFR 92 and will be
funded with 2015 HOME funds under this Agreement:
A. Tenant Based Rental Assistance: rental subsidies to help individual households afford
housing costs such as rent and security deposits.
Section 8. Disbursements. The Subrecipient understands and agrees that a request for
disbursement of HOME funds pursuant to this Agreement shall not be made until such funds are
needed to pay eligible costs related to the project. Subrecipient understands and agrees that
funding in the 6x11 amount of this Agreement is contingent upon the Consortium receiving said
HOME funds, and should the entitlement funds be discontinued or reduced for any reason,
Subrecipient understands and agrees that funding under this Agreement could cease or be
reduced without advance notice.
The Subrecipient shall:
A. Maintain adequate documentation to demonstrate the eligibility of persons benefiting
from HOME funds;
B. Maintain records that show the eligible costs and operating costs of the program;
C. Use required forms to show participant eligibility, which must be maintained in
Subrecipient file;
D. Submit proper documentation of eligible expenses for match to the Consortium on an
annual basis;
E. Submit quarterly reports to the Consortium;
F. Maintain files and records as required which relate to the overall administration of the
Program; and
G. Provide information for the Consolidated Annual Performance and Evaluation Report
(CAPER) within required timeframes.
Program Income received by the Subrecipient shall be retained by the Subrecipient for additional
eligible activities. Program income must be disbursed before the Subrecipient requests funds
from the Consortium.
Section 9. Notices.
Any notice, demand, request, or other communication that either party may desire or may be
required to give to the other party hereunder shall be given in writing at the addresses set forth
below by any of the following means: (a) personal service; (b) electronic communication
whether by telegram, telecopier, or email, together with confirmation of transmission; or (c) first-
class United States mail, postage prepaid.
TO THE CONSORTIUM:
Community Investment Program Manager
Cl
Division of Housing
City of Boulder
PO Box 791
1300 Canyon Blvd.
Boulder, Colorado 80306
TO THE SUBRECIPIENT:
Housing Program Manager
Broomfield Housing Authority
One DesCombes Dr
Broomfield, CO 80020
Section 10. Default.
A default shall consist of any use of grant funds for a purpose other than as authorized herein,
failure of the Subrecipient to provide the projects in the minimum amounts and for the minimum
time period in accordance with the requirements set forth in Exhibit B, noncompliance with the
Act or provisions of Exhibit A, or any other material breach of the Agreement.
Upon due notice to the Subrecipient of the occurrence of any such default and the provision by
the Consortium of a reasonable opportunity to respond, the Consortium may take one or more of
the following actions. If it is the decision of the Consortium to require the repayment to the
Consortium of any grant funds provided to the Subrecipient, the Subrecipient agrees to promptly
pay back to the Consortium all such funds up to the amount of grant funds provided to them by
the Consortium (hereafter called "Recapture"),
A. Direct the Subrecipient to submit progress schedules for completing approved activities;
B. Issue a letter of warning advising the Subrecipient of the default, establishing a date by
which corrective actions must be completed and putting the Subrecipient on notice that
more serious actions will be taken if the default is not corrected or is repeated;
C. Direct the Subrecipient to establish and maintain a management plan that assigns
responsibilities for carrying out remedial actions;
D. Direct the Subrecipient to suspend, discontinue, or not incur costs for the affected
activity;
E. Reduce or recapture the grant authorized herein;
F. Direct the Subrecipient to reimburse the Consortium for costs inappropriately charged to
the Consortium; and
G. Other appropriate action including, but not limited to, any remedial action legally
available.
No delay or omission by the Consortium in exercising any right or remedy available to it under
this Agreement shall impair any such right or remedy or constitute a waiver or acquiescence in
any Subrecipient default.
Section 11. Reversion of Assets.
Upon expiration or termination of this Agreement the Subrecipient shall transfer to the
Consortium any HOME funds on hand at that time and any accounts receivable attributable to
the use of HOME funds.
Any real property acquired or improved in whole or in part with HOME funds must continue to
be used for the purpose for which it was acquired or improved. Any changes in its use must be
approved by the Consortium in writing.
Section 12. Procurement
All procurement transactions for supplies, equipment and services will be conducted in a manner
to provide, to the maximum extent practicable, open and free competition. Subrecipient will
comply with all bidding and purchasing regulations of all applicable local and federal laws and
requirements.
Section 13. Monitorim,
The Consortium will monitor and evaluate this Agreement with the Subrecipient. The
Agreement will be monitored for compliance with the rules, regulations, requirements and
guidelines which the Consortium has promulgated or may promulgate. The terms of this
Agreement will also be subject to monitoring and evaluation by HUD.
Section 14. Other Anolicable Laws.
All projects undertaken pursuant to this Agreement shall be subject to all applicable State
statutes, home rule charter provisions, assessment, planning, zoning, sanitary and building laws,
ordinances and regulations.
Section 15. Nondiscrimination
Subrecipient will comply with all applicable State and Federal laws, rules, and regulations
involving non-discrimination on the basis of race, color, religion, national origin, age, handicap
or sex.
Section 16. Severabilitv.
Invalidation of any one or more of the provisions of this Agreement shall in no way affect any of
the other provisions thereof, which shall remain in full force and effect.
Section 17. Indemnification
The Consortium and Subrecipient assume responsibility for the actions and omissions of its
agents and its employees in the performance or failure to perform work under this Agreement. It
is agreed that such liability for actions or omissions of its own agents and employees is not
0
intended to increase the amounts set forth in the Colorado Governmental Immunity Act, now
existing, or as may be amended. By agreeing to this provision, the parties do not waive nor
intend to waive the limitations on liability which are provided to the parties under the Colorado
Governmental Immunity Act § 24-10-101 et seq., C.R.S., as amended.
Section 18. Miscellaneous Provisions
A. Assignment. The Subrecipient shall not assign this Agreement without the written
consent of the Consortium, which it may withhold at its sole discretion. The Subrecipient
may, however, enter into an agreement with its own subrecipient if necessary to complete
the projects noted in Section 5 without the written consent of the Consortium or the Lead
Agency.
B. Termination. This Agreement may be terminated by either party if it has been materially
breached by the other parry and proper notification is tendered. Consortium may, at any
time, terminate this Agreement, in whole or in part, for its own convenience. Consortium
shall pay Subrecipient for work satisfactorily completed, to the date of termination; the
Consortium shall determine the portion of work completed. Notification of intent to
terminate this Agreement shall be given in writing thirty (30) days prior to the date of
termination.
C. No Third Party Beneficiaries. It is expressly understood and agreed that the enforcement
of the terms and conditions of this Agreement and all rights of action relating to such
enforcement, shall be strictly reserved to the Consortium and the Subrecipient. Nothing
contained in this Agreement shall give or allow any claim or right of action whatsoever
by any other third person. It is the express intention of the Consortium and the
Subrecipient that any such party or entity, other than the Consortium or the Subrecipient,
receiving services or benefits under this Agreement shall be deemed an incidental
beneficiary only.
D. Waiver. The waiver of any breach of a term, provision, or requirement of this Agreement
shall not be construed or deemed as waiver of any subsequent breach of such term,
provision, or requirement, or of any other term, provision, or requirement.
E. Amendments. This Agreement is intended as the complete integration of all
understandings between the parties. No prior or contemporaneous addition, deletion, or
other amendment hereto shall have any force or effect whatsoever, unless embodied
herein in writing. No subsequent notation, renewal, addition, deletion, or other
amendment hereto shall have any force or effect unless embodied in a writing executed
and approved by the Consortium pursuant to Consortium rules.
F. Authority to Sign. The parties warrant that the individuals executing this Agreement are
properly authorized to bind them to this Agreement.
G. All of the Subrecipient's financial obligations under this Agreement are contingent upon
appropriation, budgeting, and availability of specific funds to discharge those obligations.
7
Nothing in this Agreement constitutes a debt, a direct or indirect multiple fiscal year
financial obligation, a pledge of the Subrecipient's credit, or a payment guarantee by the
Subrecipient to the Consortium.
H. Term of Agreement. This Agreement shall expire when the last HOME period of
affordability governing the projects undertaken with the grant funds has expired.
I. Eligibility of Agency. The Agency represents and warrants that it and its principals are
not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any Federal department or agency.
The Agency represents and warrants that to its knowledge, the Owner and the Owner's
principals are not presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from covered transactions by any Federal department
or agency.
In witness whereof, the parties hereto have hereunto set their hands and seals on the day and year
first above written.
[SIGNATURE PAGE FOLLOWS]
E3
City of Boulder, as lead agency for the
Boulder County/Broomfield County HOME Consortium
By �,��i (�2�c,n ,,/—,. r J ATTEST:
12.30.2.015
Jane S. Brautigam City of Boul Clerk
City Manager
Approvedto fonand legality:
Boulder City Attorney
Subrecipient:
THE CITY AND COUNTY OF BROOMFIELD,
a Colorado municipal corporation and county
1&ndy Abrens, ayor
One Descombes Drive
Broomfield CO 80020
ATTEST:
Yv
hL
QcDityCounty Clerki I-ov-
APPROVED AfS TO FORM:
114
City & County Attorney
Exhibit A
Subpart H—Other Federal Requirements
§92.350 Other Federal Requirements and Nondiscrimination
a. The Federal requirements set forth in 24 CFR part 5, subpart A, are applicable to participants
in the HOME program. The requirements of this subpart include: nondiscrimination and
equal opportunity; disclosure requirements; debarred, suspended or ineligible contractors;
and drug-free workplace.
b. The nondiscrimination requirements at section 282 of the Act are applicable. These
requirements are waived in connection with the use of HOME funds on lands set aside under
the Hawaiian Homes Commission Act, 1920 (42 Stat. 108).
§92.351 Affirmative Marketing; Minority Outreach Program
a. Affirmative marketing.
1. Each participating jurisdiction must adopt and follow affirmative marketing procedures
and requirements for rental and homebuyer projects containing five or more HOME -
assisted housing units. Affirmative marketing requirements and procedures also apply to
all HOME- funded programs, including, but not limited to, tenant -based rental assistance
and down payment assistance programs. Affirmative marketing steps consist of actions to
provide information and otherwise attract eligible persons in the housing market area to
the available housing without regard to race, color, national origin, sex, religion, familial
status, or disability. If participating jurisdiction's written agreement with the project
owner permits the rental housing project to limit tenant eligibility or to have a tenant
preference in accordance with §92.253(d)(3), the participating jurisdiction must have
affirmative marketing procedures and requirements that apply in the context of the
limited/preferred tenant eligibility for the project.
2. The affirmative marketing requirements and procedures adopted must include:
i. Methods for informing the public, owners, and potential tenants about Federal fair
housing laws and the participating jurisdiction's affirmative marketing policy
(e.g., the use of the Equal Housing Opportunity logotype or slogan in press
releases and solicitations for owners, and written communication to fair housing
and other groups);
ii. Requirements and practices each subrecipient and owner must adhere to in order
to carry out the participating jurisdiction's affirmative marketing procedures and
requirements (e.g., use of commercial media, use of community contacts, use of
the Equal Housing Opportunity logotype or slogan, and display of fair housing
poster);
10
iii. Procedures to be used by subrecipients and owners to inform and solicit
applications from persons in the housing market area who are not likely to apply
for the housing program or the housing without special outreach (e.g., through the
use of community organizations, places of worship, employment centers, fair
housing groups, or housing counseling agencies);
iv. Records that will be kept describing actions taken by the participating jurisdiction
and by subrecipients and owners to affirmatively market the program and units
and records to assess the results of these actions; and
V. A description of how the participating jurisdiction will annually assess the success
of affirmative marketing actions and what corrective actions will be taken where
affirmative marketing requirements are not met.
3. A State that distributes HOME funds to units of general local government must require
each unit of general local government to adopt affirmative marketing procedures and
requirements that meet the requirement in paragraphs (a) and (b) of this section.
b. Minority Outreach. A participating jurisdiction must prescribe procedures acceptable to
HUD to establish and oversee a minority outreach program within its jurisdiction to ensure
the inclusion, to the maximum extent possible, of minorities and women, and entities owned
by minorities and women, including, without limitation, real estate firms, construction firms,
appraisal firms, management firms, financial institutions, investment banking firms,
underwriters, accountants, and providers of legal services, in all contracts entered into by the
participating jurisdiction with such persons or entities, public and private, in order to
facilitate the activities of the participating jurisdiction to provide affordable housing
authorized under this Act or any other Federal housing law applicable to such jurisdiction.
Section 85.36(e) of this title describes actions to be taken by a participating jurisdiction to
assure that minority business enterprises and women business enterprises are used when
possible in the procurement of property and services.
§92.352 Environmental Review
a. General. The environmental effects of each activity carried out with HOME funds must be
assessed in accordance with the provisions of the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321) and the related authorities listed in HUD's implementing
regulations at 24 CFR parts 50 and 58. The applicability of the provisions of 24 CFR part 50
or part 58 is based on the HOME project (new construction, rehabilitation, acquisition) or
activity (tenant -based rental assistance) as a whole, not on the type of the cost paid with
HOME funds.
b. Responsibility for review.
1. The jurisdiction (e.g., the participating jurisdiction or State recipient) or insular area must
assume responsibility for environmental review, decision making, and action for each
activity that it carries out with HOME funds, in accordance with the requirements
11
imposed on a recipient under 24 CFR part 58. No funds may be committed to a HOME
activity or project before the completion of the environmental review and approval of the
request for release of funds and related certification, except as authorized by 24 CFR part
58.
2. A State participating jurisdiction must also assume responsibility for approval of requests
for release of HOME funds submitted by State recipients.
3. HUD will perform the environmental review, in accordance with 24 CFR part 50, for a
competitively awarded application for HOME funds submitted to HUD by an entity that
is not a jurisdiction.
§92.353 Displacement, Relocation, and Acquisition
a. Minimizing Displacement. Consistent with the other goals and objectives of this part, the
participating jurisdiction must ensure that it has taken all reasonable steps to minimize the
displacement of persons (families, individuals, businesses, nonprofit organizations, and
farms) as a result of a project assisted with HOME funds. To the extent feasible, residential
tenants must be provided a reasonable opportunity to lease and occupy a suitable, decent,
safe, sanitary, and affordable dwelling unit in the building/complex upon completion of the
project.
b. Temporary Relocation. The following policies cover residential tenants who will not be
required to move permanently but who must relocate temporarily for the project. Such
tenants must be provided:
1. Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the
temporary relocation, including the cost of moving to and from the temporarily occupied
housing and any increase in monthly rent/utility costs.
2. Appropriate advisory services, including reasonable advance written notice of:
i. The date and approximate duration of the temporary relocation;
ii. The location of the suitable, decent, safe, and sanitary dwelling to be made
available for the temporary period;
iii. The terms and conditions under which the tenant may lease and occupy a suitable,
decent, safe, and sanitary dwelling in the building/complex upon completion of
the project; and
iv. The provisions of paragraph (b)(1) of this section.
c. Relocation Assistance for Displaced Persons
12
1. General. A displaced person (defined in paragraph (c)(2) of this section) must be
provided relocation assistance at the levels described in, and in accordance with the
requirements of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR part 24. A "displaced
person" must be advised of his or her rights under the Fair Housing Act and, if the
comparable replacement dwelling used to establish the amount of the replacement
housing payment to be provided to a minority person is located in an area of minority
concentration, the minority person also must be given, if possible, referrals to comparable
and suitable, decent, safe, and sanitary replacement dwellings not located in such areas.
2. Displaced Person. (i) For purposes of paragraph (c) of this section, the term displaced
person means a person (family individual, business, nonprofit organization, or farm,
including any corporation, partnership or association) that moves from real property or
moves personal property from real property, permanently, as a direct result of acquisition,
rehabilitation, or demolition for a project assisted with HOME funds. This includes any
permanent, involuntary move for an assisted project, including any permanent move from
the real property that is made:
A. After notice by the owner to move permanently from the property, if the move
occurs on or after:
1) The date of the submission of an application to the participating
jurisdiction or HUD, if the applicant has site control and the application is
later approved; or
2) The date the jurisdiction approves the applicable site, if the applicant does
not have site control at the time of the application; or
B. Before the date described in paragraph (c)(2)(i)(A) of this section, if the
jurisdiction or HUD determines that the displacement resulted directly from
acquisition, rehabilitation, or demolition for the project; or
C. By a tenant -occupant of a dwelling unit, if any one of the following three
situations occurs:
1) The tenant moves after execution of the agreement covering the
acquisition, rehabilitation, or demolition and the move occurs before the
tenant is provided written notice offering the tenant the opportunity to
lease and occupy a suitable, decent, safe, and sanitary dwelling in the
same building/complex upon completion of the project under reasonable
terms and conditions. Such reasonable terms and conditions must include
a term of at least one year at a monthly rent and estimated average
monthly utility costs that do not exceed the greater of:
i. The tenant's monthly rent before such agreement and estimated
average monthly utility costs; or
13
ii. The total tenant payment, as determined under 24 CFR 5.628, if
the tenant is low-income, or 30 percent of gross household income,
if the tenant is not low-income;
2) The tenant is required to relocate temporarily, does not return to the
building/complex, and either
i. The tenant is not offered payment for all reasonable out-of-pocket
expenses incurred in connection with the temporary relocation; or
ii. Other conditions of the temporary relocation are not reasonable; or
3) The tenant is required to move to another dwelling unit in the same
building/complex but is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move, or other
conditions of the move are not reasonable.
(ii) Notwithstanding paragraph (c)(2)(i) of this section, a person does not
qualify as a displaced person if:
A. The person has been evicted for cause based upon a serious or
repeated violation of the terms and conditions of the lease or
occupancy agreement, violation of applicable federal, State or local
law, or other good cause, and the participating jurisdiction
determines that the eviction was not undertaken for the purpose of
evading the obligation to provide relocation assistance. The
effective date of any termination or refusal to renew must be
preceded by at least 30 days advance written notice to the tenant
specifying the grounds for the action.
B. The person moved into the property after the submission of the
application but, before signing a lease and commencing
occupancy, was provided written notice of the project, its possible
impact on the person (e.g., the person may be displaced,
temporarily relocated, incur a rent increase), and the fact that the
person would not qualify as a "displaced person" (or for any
assistance under this section) as a result of the project;
C. The person is ineligible under 49 CFR 24.2(g)(2); or
D. HUD determines that the person was not displaced as a direct
result of acquisition, rehabilitation, or demolition for the project.
(iii) The jurisdiction may, at any time, ask HUD to determine
whether a displacement is or would be covered by this rule.
14
3. Initiation of negotiations. For purposes of determining the formula for computing
replacement housing assistance to be provided under paragraph (c) of this section to a
tenant displaced from a dwelling as a direct result of private -owner rehabilitation,
demolition or acquisition of the real property, the term initiation of negotiations means
the execution of the agreement covering the acquisition, rehabilitation, or demolition.
d. Optional Relocation Assistance. The participating jurisdiction may provide relocation
payments and other relocation assistance to families, individuals, businesses, nonprofit
organizations, and farms displaced by a project assisted with HOME funds where the
displacement is not subject to paragraph (c) of this section. The jurisdiction may also provide
relocation assistance to persons covered under paragraph (c) of this section beyond that
required. For any such assistance that is not required by State or local law, the jurisdiction
must adopt a written policy available to the public that describes the optional relocation
assistance that it has elected to furnish and provides for equal relocation assistance within
each class of displaced persons.
e. Residential Anti Displacement and Relocation Assistance Plan. The participating
jurisdiction shall comply with the requirements of 24 CFR part 42, subpart C.
f. Real Property Acquisition Requirements. The acquisition of real property for a project is
subject to the URA and the requirements of 49 CFR part 24, subpart B.
g. Appeals. A person who disagrees with the participating jurisdiction's determination
concerning whether the person qualifies as a displaced person, or the amount of relocation
assistance for which the person may be eligible, may file a written appeal of that
determination with the jurisdiction. A low-income person who is dissatisfied with the
jurisdiction's determination on his or her appeal may submit a written request for review of
that determination to the HUD Field Office.
§92.354 Labor
a. General.
1. Every contract for the construction (rehabilitation or new construction) of housing that
includes 12 or more units assisted with HOME funds must contain a provision requiring
the payment of not less than the wages prevailing in the locality, as predetermined by the
Secretary of Labor pursuant to the Davis -Bacon Act (40 U.S.C. 3141), to all laborers and
mechanics employed in the development of any part of the housing. Such contracts must
also be subject to the overtime provisions, as applicable, of the Contract Work Hours and
Safety Standards Act (40 U.S.C. 3701).
2. The contract for construction must contain these wage provisions if HOME funds are
used for any project costs in §92.206, including construction or non -construction costs, of
housing with 12 or more HOME -assisted units. When HOME funds are only used to
assist homebuyers to acquire single-family housing, and not for any other project costs,
the wage provisions apply to the construction of the housing if there is a written
15
agreement with the owner or developer of the housing that HOME funds will be used to
assist homebuyers to buy the housing and the construction contract covers 12 or more
housing units to be purchased with HOME assistance. The wage provisions apply to any
construction contract that includes a total of 12 or more HOME -assisted units, whether
one or more than one project is covered by the construction contract. Once they are
determined to be applicable, the wage provisions must be contained in the construction
contract so as to cover all laborers and mechanics employed in the development of the
entire project, including portions other than the assisted units. Arranging multiple
construction contracts within a single project for the purpose of avoiding the wage
provisions is not permitted.
3. Participating jurisdictions, contractors, subcontractors, and other participants must
comply with regulations issued under these acts and with other Federal laws and
regulations pertaining to labor standards, as applicable. Participating jurisdictions shall be
responsible for ensuring compliance by contractors and subcontractors with labor
standards described in this section. In accordance with procedures specified by HUD,
participating jurisdictions shall:
i. Ensure that bid and contract documents contain required labor standards
provisions and the appropriate Department of Labor wage determinations;
ii. Conduct on-site inspections and employee interviews;
iii. Collect and review certified weekly payroll reports;
iv. Correct all labor standards violations promptly;
V. Maintain documentation of administrative and enforcement activities; and
vi. Require certification as to compliance with the provisions of this section before
making any payment under such contracts.
b. Volunteers. The prevailing wage provisions of paragraph (a) of this section do not apply to
an individual who receives no compensation or is paid expenses, reasonable benefits, or a
nominal fee to perform the services for which the individual volunteered and who is not
otherwise employed at any time in the construction work. See 24 CFR part 70.
c. Sweat Equity. The prevailing wage provisions of paragraph (a) of this section do not apply to
members of an eligible family who provide labor in exchange for acquisition of a property
for homeownership or provide labor in lieu of, or as a supplement to, rent payments.
§92.355 Lead -Based Paint
Housing assisted with HOME funds is subject to the Lead -Based Paint Poisoning Prevention Act
(42 U.S.C. 4821-4846), the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42
U.S.C. 4851-4856), and implementing regulations at part 35, subparts A, B, J, K, M and R of this
title.
§92.356 Conflict of Interest
a. Applicability. In the procurement of property and services by participating jurisdictions, State
recipients, and subrecipients, the conflict of interest provisions in 24 CFR 85.36 and 24 CFR
84.42, respectively, apply. In all cases not governed by 24 CFR 85.36 and 24 CFR 84.42, the
provisions of this section apply.
b. Conflicts Prohibited. No persons described in paragraph (c) of this section who exercise or
have exercised any functions or responsibilities with respect to activities assisted with
HOME funds or who are in a position to participate in a decision-making process or gain
inside information with regard to these activities may obtain a financial interest or financial
benefit from a HOME -assisted activity, or have a financial interest in any contract,
subcontract, or agreement with respect to the HOME -assisted activity, or the proceeds from
such activity, either for themselves or those with whom they have business or immediate
family ties, during their tenure or for one year thereafter. Immediate family ties include
(whether by blood, marriage or adoption) the spouse, parent (including a stepparent), child
(including a stepchild), brother, sister (including a stepbrother or stepsister), grandparent,
grandchild, and in-laws of a covered person.
c. Persons Covered The conflict of interest provisions of paragraph (b) of this section apply to
any person who is an employee, agent, consultant, officer, or elected official or appointed
official of the participating jurisdiction, State recipient, or subrecipient which are receiving
HOME funds.
d. Exceptions: Threshold Requirements. Upon the written request of the participating
jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section
on a case-by-case basis when it determines that the exception will serve to further the
purposes of the HOME Investment Partnerships Program and the effective and efficient
administration of the participating jurisdiction's program or project. An exception may be
considered only after the participating jurisdiction has provided the following:
1. A disclosure of the nature of the conflict, accompanied by an assurance that there has
been public disclosure of the conflict and a description of how the public disclosure was
made; and
2. An opinion of the participating jurisdiction's or State recipient's attorney that the interest
for which the exception is sought would not violate State or local law.
e. Factors to be Considered for Exceptions. In determining whether to grant a requested
exception after the participating jurisdiction has satisfactorily met the requirements of
paragraph (d) of this section, HUD will consider the cumulative effect of the following
factors, where applicable:
17
1. Whether the exception would provide a significant cost benefit or an essential degree of
expertise to the program or project which would otherwise not be available;
2. Whether the person affected is a member of a group or class of low-income persons
intended to be the beneficiaries of the assisted activity, and the exception will permit such
person to receive generally the same interests or benefits as are being made available or
provided to the group or class;
3. Whether the affected person has withdrawn from his or her functions or responsibilities,
or the decision making process with respect to the specific assisted activity in question;
4. Whether the interest or benefit was present before the affected person was in a position as
described in paragraph (c) of this section;
5. Whether undue hardship will result either to the participating jurisdiction or the person
affected when weighed against the public interest served by avoiding the prohibited
conflict; and
6. Any other relevant considerations.
f. Owners and Developers.
1. No owner, developer, or sponsor of a project assisted with HOME funds (or officer,
employee, agent, elected or appointed official, or consultant of the owner, developer, or
sponsor or immediate family member or immediate family member of an officer,
employee, agent, elected or appointed official, or consultant of the owner, developer, or
sponsor) whether private, for-profit or nonprofit (including a community housing
development organization (CHDO) when acting as an owner, developer, or sponsor) may
occupy a HOME -assisted affordable housing unit in a project during the required period
of affordability specified in §92.252(e) or §92.254(a)(4). This provision does not apply to
an individual who receives HOME funds to acquire or rehabilitate his or her principal
residence or to an employee or agent of the owner or developer of a rental housing
project who occupies a housing unit as the project manager or maintenance worker.
2. Exceptions. Upon written request of a housing owner or developer, the participating
jurisdiction (or State recipient, if authorized by the State participating jurisdiction) may
grant an exception to the provisions of paragraph (f)(1) of this section on a case-by-case
basis when it determines that the exception will serve to further the purposes of the
HOME program and the effective and efficient administration of the owner's or
developer's HOME -assisted project. In determining whether to grant a requested
exception, the participating jurisdiction shall consider the following factors:
i. Whether the person receiving the benefit is a member of a group or class of low-
income persons intended to be the beneficiaries of the assisted housing, and the
exception will permit such person to receive generally the same interests or
benefits as are being made available or provided to the group or class;
ii. Whether the person has withdrawn from his or her functions or responsibilities, or
the decision-making process with respect to the specific assisted housing in
question;
iii. Whether the tenant protection requirements of §92.253 are being observed;
iv. Whether the affirmative marketing requirements of §92.351 are being observed
and followed; and
V. Any other factor relevant to the participating jurisdiction's determination,
including the timing of the requested exception.
§92.357 Executive Order 12372
a. General. Executive Order 12372, as amended by Executive Order 12416 (3 CFR, 1982
Comp., p. 197 and 3 CFR, 1983 Comp., p. 186) (Intergovernmental Review of Federal
Programs) and HUD's implementing regulations at 24 CFR part 52, allow each State to
establish its own process for review and comment on proposed Federal financial assistance
programs.
b. Applicability. Executive Order 12372 applies to applications submitted with respect to
HOME funds being competitively reallocated under subpart J of this part to units of general
local government.
§92.358 Consultant Activities
No person providing consultant services in an employer-employee type relationship shall receive
more than a reasonable rate of compensation for personal services paid with HOME funds. In no
event, however, shall such compensation exceed the limits in effect under the provisions of any
applicable statute (e.g., annual HUD appropriations acts which have set the limit at the
equivalent of the daily rate paid for Level IV of the Executive Schedule, see the Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997, Pub. L. 104-204 (September 26, 1996)). Such services shall be
evidenced by written agreements between the parties which detail the responsibilities, standards,
and compensation. Consultant services provided under an independent contractor relationship are
not subject to the compensation limitation of Level IV of the Executive Schedule.
19
0
N