HomeMy WebLinkAbout12170RESOLUTION NO. 12170
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
HABITAT FOR HUMANITY OF PUEBLO, INC., A COLORADO
NON-PROFIT CORPORATION, AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement dated June 13, 2011 between Habitat for Humanity of Pueblo, Inc., a
Colorado Non-Profit Corporation, and the City of Pueblo, a Municipal Corporation, (“the
Agreement”), for the development of affordable housing, a copy of which is attached and
incorporated herein, having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is hereby authorized to execute Agreement in the
name of the City and the City Clerk is directed to affix the seal of the City thereto and attest
same.
INTRODUCED June 13, 2011
BY: Judy Weaver
COUNCILPERSON
Background Paper for Proposed
RESOLUTION
June 13, 2011AGENDA ITEM # M-5
DATE:
DEPARTMENT: HOUSING AND CITIZEN SERVICES
ADA RIVERA CLARK, DIRECTOR
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN HABITAT FOR HUMANITY OF
PUEBLO, INC., A COLORADO NON-PROFIT CORPORATION, AND THE CITY OF PUEBLO,
A MUNICIPAL CORPORATION, AND AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE SAME
ISSUE
Should the City Council approve an Agreement between the City of Pueblo and Habitat for
Humanity of Pueblo, Inc., (HFH) for the undertaking of their affordable housing and mortgage
loan program within the City for low and moderate income families?
RECOMMENDATION
Approval of the Resolution
BACKGROUND
The City of Pueblo receives a yearly allocation of HOME funds. As part of the allocation there is
a mandatory set-aside for Community Housing Development Organizations (CHDO). Fifteen-
percent (15%) must be set-aside for these agencies. The set-aside funds if not allocated to an
eligible CHDO or activity are recaptured by HUD. Habitat for Humanity qualifies as an eligible
CHDO under the federal guidelines. Therefore, the City wishes to enter into an Agreement with
HFH to develop affordable housing units within the City limits. Under the Agreement the City
would provide $270,000 in HOME funds for construction and administrative costs.
FINANCIAL IMPACT
Funding is available in the 251 Fund and has been appropriated for these purposes.
AGREEMENT FOR AFFORDABLE NEW HOME
CONSTRUCTION AND MORTGAGE SERVICES
(HOME -CHDO)
This Agreement is made and entered into this 13th day of June, 2011, by and between the
City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Habitat for Humanity
of Pueblo, Inc , a Colorado Non - Profit Corporation (hereinafter referred to as "Developer ")
WITNESSETH, that:
WHEREAS, the City has entered into agreements with the U S Department of Housing and
Urban Development ( "HUD "), whereby federal financial assistance may be made available to City
on behalf of the Pueblo Consortium ( "Consortium ") established under Agreements between the City
and Pueblo County, Colorado as a participating jurisdiction for the purpose of expanding the
availability of affordable housing pursuant to the Home Investment Partnerships Act ( "the Act ") (42
U S C 12701 et. seg ), the Cranston - Gonzales National Affordable Housing Act and implementing
regulations, including but not limited to those at 24 CFR Part 92, and
WHEREAS, in accordance with the provisions of the Act and 24 CFR Sections 92.205(a)(1),
92.300 and 92.301, a portion of such financial assistance, subject to deobligation (and subject to
appropriation with respect to any assistance payable out of future fiscal year allotments), may be
made available to qualifying Community Housing Development Organizations for the purpose of
carrying out specific elements of the participating jurisdiction's housing strategy including
construction of affordable non - luxury housing and reimburse the recipient for a portion of authorized
operating expenses which relate to such elements of the housing strategy and
WHEREAS, Developer has represented to City that it is a duly qualified Community Housing
Development Organization ( "CHDO ") within the meaning of 24 CFR §92.2, and is eligible and
willing to undertake certain approved elements of City's housing strategy, including construction or
rehabilitation of affordable housing located within the City and as appropriate the making of
mortgage loans in connection with the sale of such housing to qualified low and moderate income
buyers, as identified herein and in the Scope of Services attached hereto, and
WHEREAS, federal financial assistance is necessary and required for such housing
development in order to maintain affordable housing in the specified neighborhood, and
WHEREAS, based upon Developer's representations, the City believes Developer is capable
or can reasonably be expected to become capable of carrying out said approved elements of City's
housing strategy, including the undertaking of affordable housing development and mortgage loan
program within the City for low and moderate income families, and City is willing to allocate federal
funds to or for the benefit of Developer for investment in such housing to be developed by
Developer in full compliance with said approved elements of City's housing strategy; and
WHEREAS, the City and Consortium intend for this Agreement to, in part, fulfill the
Consortium's obligations for allocation of HOME funds to a Community Housing Development
Organization, which Developer qualifies pursuant to 24 CFR §92 300
NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, terms and
conditions set forth herein, the parties agree as follows
1 PROGRAM AND DEVELOPER SERVICES
(a) The Neighborhood. Developer will undertake the Program, as hereinafter defined,
within the geographic boundaries of Pueblo, Colorado, hereinafter referred to as the
"Neighborhood"
(b) The Program. Developer shall, at Developer 's own cost and expense, do all things
necessary and appropriate, in strict accordance with the requirements of this Agreement, to conduct
its City -Wide Affordable Housing Program (the "Program ") The Program is described in
Developer's application for funding to the Consortium, as revised and approved by City, and will
entail planning, acquisition of building sites, development of affordable housing units, and
originating and servicing mortgage loans for such housing located in the Neighborhood. The
Program shall be operated in conformance with the requirements of 24 CFR Part 92 With the
HOME funds provided under this Agreement, Developer shall assist in the development of not less
than 6 homes, with assistance under this Agreement for development costs not to exceed $40,000
per housing unit. Additionally, up to $40,572 of the HOME assistance provided under this
Agreement, may be used by Developer for eligible administrative costs related to the Program.
2. FINANCIAL ASSISTANCE
(a) Subject to and contingent upon Developer complying with all requirements of this
Agreement, and subject to the availability of HOME funds for the Program, City commits to invest
HOME and, at City's sole option, other funds in the Project in an amount not to exceed in the
aggregate Two - Hundred Ninety Thousand Five- Hundred Seventy -Two Dollars and 00 /100 (U S
$290,572) allocated as follows
(i) for affordable housing development and loans to be originated by Developer,
an amount not to exceed $250 000, and
(ii) for reasonable eligible administrative expenses associated with the Program,
an amount not to exceed $40,572
(b) The full amount of the assistance referred to above will be furnished to the Program
as a grant to Developer, hereinafter referred to as the "Grant ", which Grant is subject to all terms and
conditions of this Agreement and contingent upon Developer executing all documents required by
City and submitting periodic disbursement requests accompanied by documentation establishing
justification for each requested disbursement. Provided that Developer is not in default of any
provisions of this Agreement, the Grant shall be disbursed in accordance with the provisions of
paragraphs 3 and 6 of this Agreement.
3 USE OF GRANT FUNDS The Grant funds will be disbursed to Developer on a
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periodic basis for allowed Program expenditures and administrative costs At no time will funds for
administrative expenses be advanced before the reasonable administrative costs are actually incurred.
4 DEVELOPER WARRANTIES AND COMMITMENTS
(a) Developer warrants and represents that (i) it has the requisite authority and capacity to
perform all terms and conditions on Developer's part to be performed hereunder; (n) that it is duly
organized as a non - profit corporation under state law and is in good standing with the Secretary of
State of Colorado, (in) that it meets, or before accepting any payment hereunder will meet, the
organizational, membership and accountability requirements of Community Housing Development
Organizations as that term is defined and limited in 24 CFR §92.2, (iv) that it is aware of and
understands its duty to perform all functions and services in accordance with the regulatory
requirements of 24 CFR Part 92 and those identified in Exhibit "C" hereto, and (v) that it is
accepting federal financial assistance hereunder subject to certain mandatory repayment provisions.
(b) Time is of the essence hereof Developer agrees that it shall commit and initially
invest all funds made available within 24 months of the date of this Agreement.
5 CITY REPRESENTATIVE The City shall designate a representative of the City
who will be authorized to make all necessary decisions required of the City on behalf of the
Consortium in connection with the performance of this Agreement, approval of the Program to be
undertaken by Developer hereunder and the disbursement of funds in connection with operation of
the Program. In the absence of such a designation, the City's Director of Housing and Citizen
Services shall be deemed as City's authorized representative
6 DISBURSEMENTS
(a) Developer shall not request disbursement of any Grant funds under this Agreement
until the funds are needed for reimbursement of reasonable eligible costs incurred or for qualifying
progress payments, as the case may be Disbursement of funds to Developer, as may be authorized
under this Agreement, is subject to all of the following requirements, which shall be conditions
precedent to payment (i) that the Developer has expended funds after date of this Agreement for
reasonable eligible approved expenditures with respect to the Program, (ii) that Developer is not in
default of any material provision of this Agreement nor applicable law or regulation, (iii) that
Developer has timely submitted requests for disbursement detailing the eligible expenditures for the
Program in a format approved by City, (iv) that Developer has certified with each payment or
disbursement request compliance with the requirements identified in Exhibit "C" and that all
expenditures for which disbursement is sought were made for and in furtherance of the Program and
are an eligible use of federal assistance under the Act, and (v) that City has timely received from
HUD sufficient federal assistance under the Act to pay the disbursement hereunder
(b) Payment hereunder is also subject to and may only be disbursed in accordance with
HUD regulations including but not limited to those at 24 CFR Part 92, as presently promulgated and
as same may be revised from time to time in the future All payments received by Developer
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hereunder are subject to repayment by Developer as provided in 24 CFR Part 92 Funds provided
hereunder for Program may only be used for eligible activities and costs, as provided in 24 CFR Part
92
(c) The aggregate of all payments made pursuant to this Agreement shall not exceed
Two - Hundred Ninety - Thousand Five - Hundred Seventy -Two Dollars and 00 /100 (U S $290,572.00)
which includes $40,572 toward reasonable eligible administrative expenses of Developer related to
the Program.
(d) Notwithstanding anything in this Agreement, and in addition to all other conditions
precedent, the City may, in its sole discretion, refuse to make the Grant or suspend or terminate
further disbursements of Grant funds, if it has cause to believe any of the following circumstances
has occurred or exists
(i) There has been any adverse material change in Developer's ability to operate
the Program or in the Program itself;
(n) Developer has misapplied Grant funds for other than the purposes stated in
this Agreement;
(iii) Developer has defaulted in the performance of any term, condition or
covenants set forth in this Agreement or required of Developer under the applicable federal
regulations
(e) Upon expiration of the term of this Agreement, or upon any prior termination,
Developer shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder
7 TERM OF AGREEMENT Unless sooner terminated, the term of this Agreement, for
purposes of disbursement of Grant funds and completion of the Program, shall be from the date of
execution hereof until June 13, 2013, provided however, that with the respect to owner - occupied
mortgage loans made under the Program for which Developer has received financial assistance under
and during the term of this Agreement, Developer shall have continuing responsibility to comply
with all applicable performance, certifications, repayment, affirmative marketing, housing
affordability compliance and recordkeeping requirements of this Agreement, and 24 CFR Part 92
(including, without limitation 24 CFR Sections 92.252, 92.254, 92.301, 92 351 and 92 508) which
shall survive expiration or termination and remain in effect throughout the applicable required full
period of affordability, notwithstanding termination or expiration of this Agreement. As used herein,
"period of affordability" shall be fifteen(15) years from the date of loan closing on each home
constructed as part of the Program, or for the full term of the loan made by Developer to the first
homeowner, whichever is longer
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8 TERMINATION OF AGREEMENT
(a) For Cause This Agreement may be terminated by City for cause, including any
nonperformance by Developer, upon ten (10) days written notice to Developer including a statement
of the reasons therefore Developer may request a hearing within thirty -five (35) days of the date of
the written termination notice Failure to request a hearing within the thirty -five (35) day period
shall constitute a waiver of any hearing rights. The City shall hold a hearing within 45 days of any
such hearing request unless this time period is waived by the Developer If a hearing is requested, it
shall be held before the City's Director of Housing and Citizen Services whose decision as to both
the grounds for termination and the appropriateness thereof shall be final and binding upon both City
and Developer In accordance with 24 CFR 85 43, cause for termination shall include any material
failure by Developer to comply with any term of this Agreement.
(b) For Convenience This Agreement may be terminated for convenience in accordance
with the provisions of 24 CFR 85 44 This Agreement shall terminate immediately upon any non-
appropriation of funds, or upon any suspension or non - receipt of federal assistance provided to City
under the Act, regardless of cause
(c) Post Termination Procedures. In the event of termination, Developer shall continue to
be responsible for those matters which survive termination, including those identified in paragraphs
4, 7, 11, 13, 14, 15, 16, 17, and 18 of this Agreement, unless City takes over the Program and, in
connection therewith, prospectively releases Developer from one or more specific responsibilities in
writing. Additionally, at City's sole option, all property acquired by Developer with grant funds, all
grant funds, program income, and mortgage loans originated with Grant funds or by payments
therefrom and payments received under such mortgage loans, held, owned or retained by Developer
shall immediately become the sole and separate property of the City and Developer shall perform all
acts and execute all instruments necessary to transfer and assign such property, funds, income, and
mortgage loans to City All finished or unfinished plans, specifications, documents, data, studies,
reports and work product prepared by Developer under this Agreement or with Grant funds shall, at
the option of the City, become its property and Developer may be entitled to receive Just and
equitable compensation only for satisfactory work completed and eligible costs for which
compensation has not previously been paid nor reimbursement made
9 ASSIGNABILITY This Agreement shall not be assigned or transferred by Developer
without the prior written consent of the City Any assignment or attempted assignment made in
violation of this provision shall, at City's election, be deemed void and of no effect whatsoever
10 CONFLICT OF INTEREST HOME Regulation 24 CFR, Part 92.356 is incorporated
herein by reference, and sets forth applicable laws and regulations that apply to Conflict of Interest.
Developer, and its Board of Directors, officers and employees, shall avoid all conflicts prohibited by
applicable regulations, including but not limited to those set forth in 24 CFR Part 92 as presently
promulgated and as same may be revised from time to time in the future
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11 DEVELOPER RECORDKEEPING Developer shall maintain records as to the
Program work and activities undertaken with assistance hereunder, services provided, reimbursable
expenses incurred in connection with the Project and complete accounting records. Accounting
records shall be kept on a generally recognized accounting basis and as requested by the City's
auditor Developer agrees to comply with all applicable uniform administrative requirements
described or referenced in 24 CFR Part 92 The compliance provisions attached as Exhibit "B"
hereto are also made a part of this Agreement, and Developer agrees to perform and comply with
same The City, HUD, the Comptroller General of the United States, the Inspector General of HUD,
and any of their authorized representatives, shall have the right to inspect and copy, during
reasonable business hours, all books, documents, papers and records of Developer which relate to
this Agreement for the purpose of making an audit or examination. Upon completion of the work
and end of the term of this Agreement, or at any time during the period of affordability or within 5
years thereafter, the City may require all of Developer's financial records relating to this Agreement
to be turned over to the City
12 MONITORING AND EVALUATION The City shall have the right to monitor and
evaluate the progress and performance of Developer to assure that the terms of this Agreement are
being satisfactorily fulfilled in accordance with HUD's, City's and other applicable monitoring and
evaluation criteria and standards. The City shall at least quarterly review Developer's performance
using on -site visits, progress reports required to be submitted by Developer, audit findings,
disbursement transactions and contact with Developer as necessary Developer shall furnish to the
City monthly or quarterly program and financial reports of its activities in such form and manner as
may be requested by the City Developer shall fully cooperate with City relating to such monitoring
and evaluation.
13 DEVELOPER FILES AND INFORMATION REPORTS Developer shall maintain
files containing information which shall clearly document all activities performed in conjunction
with this Agreement, including, but not limited to, financial transactions, conformance with
assurances, activity reports, and program income or proceeds These records shall be retained by
Developer for a period of five years, except that with respect to each property developed with
assistance provided hereunder, such records shall be maintained for the full required period of
affordability for such property Activity reports shall be submitted monthly or quarterly no later than
the ninth day of the month following the end of month or quarter for which the report is submitted.
14 INDEPENDENCE OF DEVELOPER. Nothing herein contained nor the relationship
of Developer to the City, which relationship is expressly declared to be that of an independent
contractor, shall make or be construed to make Developer or any of Developer's agents, contractors,
consultants or employees the agents or employees of the City Developer shall be solely and entirely
responsible for its acts and the acts of its agents, employees and subcontractors
15 LIABILITY & INSURANCE
(a) As to the City, Developer agrees to assume the risk of all personal injury, including
death and bodily injury, and damage to and destruction of property, including loss of use therefrom,
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caused by or sustained, in whole or in part, in conjunction with or arising out of the performance or
nonperformance of this Agreement by Developer, construction or rehabilitation of improvements
upon any property or by the conditions created thereby or resulting therefrom. Developer further
agrees to indemnify and save harmless the City its officers, agents, attorneys and employees, from
and against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising from
such injuries to persons or damages to property or based upon or arising out of the performance or
nonperformance of this Agreement by Developer, construction or rehabilitation of properties under
the Program, origination and servicing of rehabilitation loans, or arising from the warranties relating
to any of the foregoing or out of any violation by Developer of any statute, ordinance, rule or
regulation.
(b) Developer agrees that it shall procure and will maintain during the term of this
Agreement, such insurance as will protect it from claims under workers' compensation acts, claims
for damages because of personal injury including bodily injury, sickness or disease or death of any of
its employees or of any person other than its employees, and from claims or damages because of
injury to or destruction of property including loss of use resulting therefrom, and such insurance will
provide for coverage in such amounts as set forth in subparagraph (c)
(c) The minimum insurance coverage which Developer shall obtain and keep in force is
as follows
(i) Workers' Compensation Insurance complying with statutory requirements in
Colorado
(u) Comprehensive General Liability ( "CGL ") Insurance written on ISO Form CG
00 01 0196, or a substitute form providing equivalent coverage, with a limit not less than
One Million Dollars ($1,000,000 00) per occurrence, covering liability arising from
premises, operations, independent contractors, personal injury, products completed
operations, and liability assumed under an insured contract, on an occurrence basis. The
policy shall identify the City as an additional insured.
(d) Developer shall furnish a certificate of insurance certifying the required insurance
coverages to City's Director of Finance prior to disbursement of any funds to Developer under this
Agreement. The certificate of insurance and the policies shall name the City as an additional insured
on the CGL policy
16 CERTIFICATIONS Developer agrees to execute and abide by the certifications
contained in Exhibit "C" hereto, which are hereby expressly made a part of this Agreement.
17 PROGRAM INCOME, PROJECT PROCEEDS , REVERSION OF ASSETS
(a) Unless otherwise authorized by City in wntmg in a separate instrument executed after
date of this Agreement, all program income, as defined in 24 CFR 92.2, shall be returned to City
within 30 days of receipt by Developer Program Income under this Agreement refers to funds
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recaptured because housing no longer meets affordability requirements. Project proceeds, are
defined as income generated through interest on HOME loans or proceeds from permanent financing
Developer is authorized to retain project proceeds. Developer will report to City on all program
income or project proceeds received on a quarterly basis. In the event City authorizes Developer to
retain any portion of program income, it shall only be used to accomplish the work set forth in this
Agreement, including the Scope of Services, and the amount of funds payable by City to Developer
shall be adjusted as provided by 24 CFR 92 503 and the applicable requirements of 24 CFR 85
(b) Upon expiration of the term of this Agreement, or upon any prior termination,
Developer shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder
(c) The Program, the housing units developed thereunder, and any other real property
acquired, constructed or improved in whole or in part with funds provided pursuant to this
Agreement shall be used only to create affordable housing. In the event any assisted property is not
or ceases to be so used, Developer shall immediately take steps to recover an amount equal to the
current market value of the property less any portion of the value attributable to expenditures of
funds not provided under this Agreement for the construction of the property (that is, the calculation
of the portion of value attributable to expenditures not provided by City under this agreement shall
be the market value multiplied by a fraction whose numerator is the total determined as of the date of
substantial completion less the amount of assistance provided by City and whose denominator is the
total value of the property determined as of the date of substantial completion or, (ii) the remaining
principal balance and accrued interest owing under the mortgage loan. The use restriction and
repayment obligation set forth in this subparagraph shall survive termination or expiration of this
Agreement and shall be fully enforceable and subject to collection by City or HUD in accordance
with applicable laws In order to secure the affordability requirements hereunder, Developer shall
either (i) record enforceable deed restrictions to such effect for each housing unit or (ii) require the
homeowner of each new housing unit to execute a Deed of Trust which shall be and constitute a hen
upon the property (and all other real property acquired or improved with funds provided hereunder)
conveyed to the homeowner which shall expressly secure the affordability requirements hereunder
(d) In the event City incurs any cost or expense in enforcing the requirements of this
Agreement, including but not limited to the requirements of this paragraph 17, or in bringing any
action to recover the amount of any repayment obligation, or, upon assignment of the Note and the
mortgage or Deed of Trust to City, to foreclose or obtain sale under the Deed of Trust or mortgage
instrument, City shall be entitled to recover its costs and expenses, including reasonable attorneys
fees.
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18 RECOGNITION OF HUD, CITY In all printed materials, Program descriptions and
other activities undertaken with funds provided under this Agreement, Developer shall provide
recognition that funds have been provided to Developer by the U S Department of Housing and
Urban Development and the City of Pueblo Recognition shall be accomplished by disclosure of the
role of HUD and the City in all such printed materials and project signage, if any However, such
recognition and signage shall also prominently set forth the following statement. "By providing
funds to Habitat for Humanity of Pueblo, Inc , neither the City of Pueblo nor the U S Department of
Housing and Urban Development (HUD) make any representations or warranties whatsoever in
respect to the mortgage loan or any housing constructed with City or HUD assistance.
19 ENTIRE AGREEMENT, AMENDMENTS The provisions set forth in this
Agreement, and all Exhibits and attachments to this Agreement, constitute the entire and complete
agreement of the parties hereto and supersede all prior written and oral agreements, understandings
or representations related thereto No amendment or modification of this Agreement, and no waiver
of any provision of this Agreement, shall be binding unless made in writing and executed by the duly
authorized officers of both the Developer and City
20 SIGNATURES The persons signing this Agreement on behalf of Developer
represent and warrant that such persons and Developer have the requisite power and authority to
enter into, execute and deliver this Agreement and that this Agreement is a valid and legally binding
obligation of Developer enforceable against Developer in accordance with its terms.
IN WITNESS WHEREOF, Developer and the City have executed this Agreement as of the
date first above written and under the laws of the State of Colorado
CITY OF PUEBLO,
A Mumc 1 Corporation
ATTEST By \ (1)
reside t of City Council
City Jerk
HABITAT FOR HUMANITY OF PUEBLO, INC.,
a Colorado Non -P fit . 4rp• • . .n
[SEAL]
By
Name — •.rl;, ! � i■. 1 S
Title
Approved as to form.
City Atto
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EXHIBIT A
SCOPE OF SERVICES
Habitat for Humanity of Pueblo, Inc , shall undertake the development of no less than 6 units of
affordable housing for sale or rental to low- to moderate - income families. Habitat for Humanity of
Pueblo, Inc , is a qualifying Community Housing Development Organization, and is acting in the
role of a Developer for this HOME assisted project.
The City will make available $250,000 in HOME Investment Partnership Act funds for the
development of affordable housing, and $40,572 for eligible operating costs of the Community
Housing Development Organization.
Per unit subsidy will not exceed $40,000 unless prior approval is received in writing from the
Director of Housing and Citizen Services.
Habitat for Humanity of Pueblo, Inc , will submit monthly requests for reimbursement of eligible
expenses.
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EXHIBIT B
ACCOUNTING SYSTEM COMPLIANCE PROVISIONS
1 As used in this Exhibit, the term "Developer" shall mean the entity entering into the
Agreement with the City of Pueblo, a Municipal Corporation to which this Exhibit is
attached.
2 Developer is subject to and shall comply with the requirements of OMB Circular A -133
3 Developer agrees to maintain Project and accounting records in accordance with generally
accepted accounting principles which accurately reflect all costs chargeable to the Project,
utilize adequate internal controls, and maintain source documentation for all costs incurred.
The City shall have the right to review and approve Developer's account system and internal
controls prior to the release of any funds under the Agreement.
4 During the preconstruction and construction phases of the Project, the Developer shall not
materially deviate from any approved Project budget unless any proposed major revision
thereto has been submitted to City and approved in writing. Change orders of less than
$10,000 each or $50,000 in the aggregate shall not be deemed to be material deviations or
major revisions to the Project budget.
5 Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties nor
to any contractors, subcontractors, consultants, suppliers or workmen who have contracted
with Developer or provided any materials or services to Developer
6 The City has the right to periodically perform interim audits and a final audit of the Project
and funds provided under the Agreement. Developer shall fully cooperate with City in
undertaking any such audit and shall provide a suitable work area for City's audit personnel
to inspect and copy records.
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EXHIBIT C
CERTIFICATIONS
The entity entering into this Agreement with the City hereby certifies that the Project will be
conducted and administered in compliance with all of the following requirements
(1) Title VI of the Civil Rights Act of 1964 (Pub L. 88 -352, 42 U S C 2000d, et seq )
and implementing regulations issued at 24 CFR Part 1,
(2) Title VIII of the Civil Rights Act of 1968 (Pub L. 90 -284, 42 U S C 3601, et seq ), as
amended, and that the grantee will administer all programs and activities related to housing and
community development in a manner to affirmatively further fair housing,
(3) Section 109 of the Housing and Community Development Act of 1974, as amended,
and the regulations issued pursuant thereto,
(4) Section 3 of the Housing and Urban Development Act of 1968, as amended,
(5) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and
implementing regulations issued at 41 CFR Chapter 60,
(6) Executive Order 11063, as amended by Executive Orders 12259, and implementing
regulations at 24 CFR Part 107,
(7) Section 504 of the Rehabilitation Act of 1973 (Pub L 93 -112), as amended, and
implementing regulations when published for effect;
(8) The Age Discnmmation Act of 1975 (Pub L. 94 -135), as amended, and
implementing regulations when published for effect;
(9) The relocation requirements of Title II and the acquisition requirements of Title III of
the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended,
42 U S C 4601 et seq (URA), U S Department of Transportation, Federal Highway
Administration, at 49 CFR Part 24,
(10) Executive Order 11988 relating to the evaluation of flood hazards and Executive
Order 11288 relating to the prevention, control and abatement of water pollution,
(11) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster
Protection Act of 1973 (Pub L. 93 -234),
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(12) The applicable regulations, policies, guidelines and requirements of OMB Circular
Nos. A -102, Revised, 24 CFR 85 and Subpart J of 24 CFR 570, A -87, A -110, A -122, A -128 and
A -133 as they relate to the acceptance and use of federal funds under this federally - assisted program,
(13) The Clean Air Act (42 U S C 7401 et. seq ) as amended, particularly section 176 (c)
and (d) [42 U S C 7506 (c) and (d)],
(14) HUD environmental crrtena and standards [24 CFR Part 51, Environmental Cntena
and Standards],
(15) The Safe Drinking Water Act of 1974 (42 U S C 201, 300 (f) et. seq., and 21 U S C
349) as amended, particularly section 1424 (e) (42 U S C 300 (h)- 303(e)),
(16) The Endangered Species Act of 1973 (16 U S C 1531 et. seq ) as amended, including
but not limited to section 7 (16 U S C 1536) thereof;
(17) The Wild and Scenic Rivers Act of 1968 (16 U S C 1272 et. seq) as amended,
particularly section 7 (b) and (c) [16 U S C 1278 (b) and (c)],
(18) The Reservoir Salvage Act of 1960 916 U S C 469 et. seq ), particularly section 3 (16
U S C 469a -1), as amended by the Archeological and Historical Preservation Act of 1974,
(19) Flood Disaster Protection Act of 1973 (42 U S C 4001 et. seq) as amended,
particularly sections 102(a) and 202(a) [42 U S C 4012a(a) and 4106(a)],
(20) Executive order 11990, Protection of Wetlands, May 24 1977 (42 FR 26961 et. seq ),
particularly sections 2 and 5,
(21) It will comply with the Lead -Based Paint Poisoning Prevention requirements of 25
CFR Part 35 issued pursuant to the Lead -Based Paint Poisoning Prevention Act (42 U S C 4821 et.
seq ),
(22) The National Historic Preservation Act of 1966 (16 U S C 470 et seq ) as amended,
particularly section 106 (16 U S C 4700, and
(23) Executive Order 11593, Protection and Enhancement of the Cultural Environment,
May 13, 1971 (36 FR 8921 et. seq ), particularly section 2(c)
(24) Construction work financed in whole or in part with federal funds is subject to the
prevailing wage requirements of the Davis Bacon Act (29 CFR, Parts 3 and 5), the Copeland Act (29
CFR Part 3), and the Contract Work Hours and Safety Standards Act (Public Law 91 -54, 83 Stat.
96) When a project meets this applicability requirement, the labor standards provisions of the HUD
4010 and the Davis Bacon Wage Decision issued for the project will be incorporated into this
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contract document and shall be incorporated into all construction contracts and subcontracts of any
tier thereunder
(25) No CDBG funds may be expended for lobbying purposes and payments from other
sources for lobbying must be disclosed 24 CFR Part 87
(26) Where asbestos is present in property undergoing rehabilitation, Federal requirements
apply regarding worker exposure, abatement procedures and disposal. CPD -90 -44 EPA /OSHA.
(27) When HOME Investment Partnership Act funds are used, the Developer will comply
with implementing regulations and requirements under 24 CFR 92
(28) Executive Order 12372, as amended by Executive Order 12416 and HUD's
implementing regulations at 24 CFR part 52
Signature
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