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O-2002-2599
ORDINANCE NO. 2002-A� AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY COMMUNITY DEVELOPMENT DEPARTMENT, FOR ACCEPTANCE OF A CONDITIONAL AWARD IN THE AMOUNT OF $350,000.00 FROM HARRIS COUNTY COMMUNITY DEVELOPMENT DEPARTMENT FOR FUNDING THE CITY OF LA PORTE'S HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM; APPROPRIATING A SUM OF UP TO $87,500.00 IN CITY MATCHING FUNDS TO FURTHER THE CITY'S GOAL OF PROVIDING AFFORDABLE HOUSING; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the acceptance, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Acting City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council accepts the conditional award of $350,000.00 from Harris County Community Development Department and appropriates the sum of up to $87,500.00, from the City's General Fund, Account Number 15-9892-859-1100 to fund said Home Investment Partnership (HOME) Program. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof ORDINANCE NO. 2002- 2002#5q9 • PAGE 2 has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this`t/-day of December, 2002. CITY OF LA PORTE Orman L. Malone Mayor ATTEST: Martha A. Gillett City Secretary REQU*r FOR CITY COUNCIL AGODA ITEM Agenda Date Requested: December 9. 2002 Requested By: Doug Kneuaaer/Gwen Goodwin Department: Planning Report: Resolution: Ordinance: X Consider possible action regarding three ordinances in association with the Harris County Office of Economic Development Grant: Exhibits Annronriation Source of Finds: Northside Neighborhood Account Number: 15-9892-859-1100 Amount Budgeted: $120,000 Amount Requested: $110,000 Budgeted Item: © NO SUMMARY & RECOMMENDATION In March 2002, Council member James Warren submitted an application to the Office of Housing and Economic Development (formerly Harris County Community Development) for US Department of Housing and Urban Development's (HUD) HOME program funds. The application described a program that culminates with 11 new homes in the Northside neighborhood. Two "model" homes will be built initially to garner interest; nine additional homes will be built as qualified homebuyers are identified. In addition, all 11 qualified homebuyers will receive down payment assistance. On May 2, 2002, the City received a conditional award letter indicating that the application was approved for $350,000 in HOME funds. On May 14, 2002, the City conditionally accepted the award. Pending City Council's approval, the City also agreed to meet the 25% matching fund requirement of $87,500. This totals $437,500 in HOME program funds. The Office of Housing and Economic Development (OHED) structured the grant into two contracts: Contract #1 is for $181,900. Contract #1 pays for the construction of two "model" homes built on 4 lots. The City is required to competitively bid the construction of these 2 homes. The cost (approximately $12,000) of securing the four lots, (2 building sites), is a grant eligible cost that will be deducted from the City's $87,500 match. Once constructed, these homes will be the OHED's property until they are sold as a part of Contract #2. Contract #2 provides a budget of $243,600: approximately $168,100 from the OHED and roughly $75,500 from the City's match. Approximately $22,145 in down payment and closing costs assistance is available for each of the 11 qualified homebuyers. (This includes the 2 houses described in Contract #1.) In this phase, the builder, (selected by competitive bid in Contract #1), will secure financing for the acquisition of lots and construction of 9 homes. The down payment assistance and closing costs will be paid to the builder at closing. Council is asked to consider an ordinance authorizing an agreement between the City of La Porte and OHED on behalf of the US Dept. HUD. Contracts 41 & 2 are shown in Exhibit A. Because the City does not have the staff resources to administer this type of grant, we are requesting Council approval to retain the services of Southeast Texas Housing Finance Corporation (SETH) and Sheila Frye and Associates. SETH will administer the Program on behalf of the City for a fee of $17,500. This includes marketing, reviewing applications, maintaining pertinent files, serving as liaison with the builder, lender, OHED and other parties. Frye and Associates will provide marketing, homebuyer's education, and pre -qualification for a fee of $5,000. Their responsibilities are described in their respective "Letters of Agreement". Council is asked to consider an ordinance authorizing agreements between the City, SETH, and Sheila Frye and Associates for administrative services. The fees for SETH and Sheila Frye and Associates will be a cost to the City in addition to the $87,500 grant match. The proposed funds for this grant are funds previously budgeted for implementation of the Northside Neighborhood Plan: $100,000 budgeted in FY 01 20,000 budgeted in FY 02 $120,000 Total • The HOME program estimated expenses are: $87,500 $17,500 $ 5,000 $110,000 • required match to OHED grant administration to SETH grant administration to Frye & Associates Total HOME estimated expenses Northside Neighborhood Account $120,000 beginning balance ($110,000) HOME estimated expenses 229 reserved for Finance dept admin use $ 9,771 Ending Balance of Northside Neighorhood account Staff's presentation provides examples of the homes and the various features contained in them. (See Exhibits B & C.) Exhibit D is a draft applicant program package. Action Required by Council: 1. Approve an ordinance authorizing an agreement between the City and Harris County OHED on behalf of the U.S. Dept. HUD. 2. Approve an ordinance authorizing an agreement between the City and SETH for administrative services. 3. Approve an ordinance authorizing an agreement between the City and Sheila Frye and Associates for administrative services. Approved for City Council Agenda .O sir �► --, - 1 I I 1 _ )d/r /0 a — IDatk • x� ����� Cityof La Porte Established 1892 TEXAS May 14, 2002 Mr. Xavier Lemond Chief Operating Officer Harris County Community Development Department 8410 Lantern Point Drive Houston, Texas 77054 Re: 2002 Request for Proposal (RFP) Process Project Name: Downpayment and Closing Cost Assistance Dear Mr. Lemond: The City is pleased to accept the $350,000 conditional award to be used as downpayment and closing cost assistance. We also acknowledge that our match amount of $87,500 is conditional upon both parties reaching written agreement as to how the funds can best be spent in meeting Harris County Development guidelines to compliment the City's goal of providing affordable housing. - Once a final agreement is reached, I will place this item on a City Council agenda, as City Council is the only body that can approve this award. We are anxious to move forward together. Please do not hesitate to contact me if you require any additional information. Sincerely, Robert T. Herrera City Manager RTHlcns c: Mayor and City Council John Joerns, Assistant City Manager HARRIS COUNTY COMMUNITY DEVELOPMENT DEPARTMENT RECEIVED Robert Eckels, County Judge Bruce A. Austin, Director MAY 0 6 2002 May 2, 2002 PLANNING DEPT. Doug Kneupper City of La Porte 604 West Fairmont La Porte, Texas 77571 Dear Mr. Kneupper: SUBJECT: 2002 Request For Proposal (RFP) Process Project Name: Downpayment and Closing Cost Assistance We are pleased to inform you that your application has been conditionally selected for funding. Due to the limited amount of funds available, the Harris County Community Development Department has approved $350,000.00 in HOME funds for the above referenced project on the condition of Harris County Commissioner's Court and the U.S. Department of Housing and Urban Development (HUD) approval. You are .required to return a cover.letter acknowledging your organization's acceptance of the conditional award on your organizations letterhead. Also if applicable, please revise, your Statement of Work and Project Budget based on your conditional award amount on the enclosed diskette. These are to be remitted to our administrative offices located at 8410 Lantern Point, Houston, Texas 77054, by Wednesday May 15, 2002. Non -receipt of these forms will delay the contract development phase. Please remember to retain a copy of all information submitted for your records. This Department will not execute a contract with your organization until all regulatory requirements are met. Note that HCCDD funds are dispersed on a reimbursement basis only. It will be necessary for your organization to have adequate working capital to sustain the operation of the project for a minimum of sixty (60) days after executing a contract with Harris County. Any funds expended prior to Commissioner's Court approval and contract execution will not be reimbursed. If you have questions concerning the requested information, please contact Mrs. Adrianne Holmes at (713) 747-0132 ext. 2049 or at Asterling@cda.co.harris.tx.us. Thank you for your continued interest in Harris County Community Development programs. Sincerely, /r avier Lemond Chief Operating Officer XL\ASH Enclosure 8410 Lantern Point Drive • Houston, Texas 77054 - (713) 747-0132 - Fox (713) 578-2190 Email: director@cda.co.harris.tx.us • e UNTY HARRIS CO , TEXAS January 8, 2003 Mr. John Joerns, Acting City Manager City of La Porte 604 W. Fairmont Parkway LaPorte, Texas 77571 Dear Mr. Joerns: 0 OFFICE OF HOUSING & ECONOMIC DEVELOPMENT 8410 Lantern Point Houston, Texas 77054 Tel: 713-747-0132 Fax: 713-578-2190 RE: Down Payment and Closing Cost Assistance Program Project No. 2002-047 JAN 1 4 Enclosed is a copy of the executed Agreement between Harris County and the City of La Porte for the project referenced above using Home Investment Partnerships (HOME) Program funds. Please note that Mr. Warren came by our offices on January 7, 2003 and acquired a copy himself. If you have any questions please contact Stephen Skeete at (713) 747-0132 ext. 2042. Director DBT/ng Enclosure G.*=h=%QAMg%..aut.d agmnmts\aty_of La Pmt. Downy r—t A-LProp-_exx_W--� 010803.doc 2002-047 0 • AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR DO«`NPAYMENT AND CLOSING COST ASSISTANCE PROGRAM THIS Agreement is made and entered into by and between Harris County, a body, politic and corporate under the laws of the State of Texas, herein called the "Grantee" and the City of La Porte. a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subrecipient." WHEREAS, the Grantee has applied for and received funds from the United States Government under the Home Investment Partnerships (HOME) Program, application number M -02 -UC -48- 0215; 2002-047; WHEREAS, the primary purpose of the HOME program pursuant to the National Affordable Housing Act of 1990 (NAHA) and 24 C.F.R. Part 92, is to benefit low and very -low income citizens by providing them with affordable housing; WHEREAS, the Grantee and the Subrecipient desire to enter into an agreement whereby the Grantee will grant funds to Subrecipient for the purpose of a Homebuyers Assistance Program for the benefit of low income residents to purchase homes, which is an eligible activity under the rules and regulations regarding HOME Program grant funds, in accordance with the terms and conditions described herein; and WHEREAS, the Subrecipient shall insure recognition of the role of the Grantee Department in providing services through this contract. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Subrecipient will include reference to the Office of Housing and Economic Development "OHED" for the support provided herein in all publications made possible with funds made available under this agreement. NO%V. THEREFORE, in consideration of the mutual covenants and agreements herein contained. it is agreed between the parties hereto that: SCOPE OF ACTIVITIES Subrecipient agrees to provide the activities described in Exhibit A, attached hereto and incorporated herein for all purposes, in accordance with the provisions of this Agreement and in compliance with the requirements of Title 1 of the Housing and Community Development Act of 1974 and all regulations issued thereunder. -k. Eheible Activity The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Agreement meet the following eligible activity relating to the HOME Program at 24 C.F.R. § 92.205(a)(1) which states that funds may be used by a participating jurisdiction to provide for downpayment and closing costs assistance. The specific eligible project costs f;r these activities are set forth in 24 C.F.R § 92.206. B. Performance Monitoring The Grantee will monitor the performance of the Subrecipient against goals and performance standards required herein. Subsundard performance as determined by the Grantee will constitute non-compliance or brach with this Agreement. If action to correct such substandard performance is nct taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, Agreement termination procedures will be initiated pursuant to 24 C.F.-R. § 85.43. The Subrecipient agrees to cooperate in periodic site visits and annual program and financial monitoring visits which the OHED staff and/or the Harris County Auditor's staff will conduct. Subrecipient also agrees to be cooperative with monitoring and/or investigations performed by the Department c: Housing and Urban Development, and comply with their findings. Any non-compliance's identified during said monitoring visits shall be addressed in a reasonable period of time by the Subrecipient. Failure to respond in a timely manner will result in further corrective action by OHED in:iuding, but not limited to, termination of the agreement. II. TIME OF PERFORMANCE Services of the Subrecipient shall start on the -`h day of December 2002 and end on the 31S` day of July X004. This Agreement may on:.: be extended upon written approval from the Director, OHED. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed One Hu -:fired Sixty Eight Thousand One Hundred Dollars and No 100 (S16S.100.00). Drawdo%;-is for the payment of eligible expenses shall be made against the line item budgets sp�-�ified in Exhibit `B" in accordance with performance. The Grantee will only make "rids available to the Subrecipient on a reimbursable basis upon receipt of an invoice. Invoices must be submitted on or before the tenth working day of the month for elis:ale costs incurred during the preceding rnont . and shall be on a form approved by the -arris County Auditor. Subrecipient shall be paid a portion of the con act amount for each closing. The portion to be paid is represented by a fraction, the Numerator of which is one (1) and the denominator of %vhich is the total closings provided for in this contract. Subrecipient is directed to the HOME program regulations fou -.d at 24 C.F.R. § 92.206, Eligible Project Costs. 0 Prior to payment, OHED and the Hams County Auditor must approve all invoices. An incorrect reimbursement request will be returned to the Subrecipient for correction and resubmission. OHED will not alter any reimbursement request submitted for payment. Grantee maintains the right to suspend payment to the subrecipient for failure to submit reports within the required timeframe. Grantee may terminate this agreement with the subrecipient for failure to submit reports for two consecutive months. A Supplemental Request amending a payment or reimbursement request may be filed with OHED within thirty (30) days after the submission or receipt of the original request. A Supplemental Request for payment or reimbursement submitted after thirty (30) days from the date of submission or receipt of the original request will not be approved. No more than one Supplemental Request shall be allowed per month. The Grantee has no County funds for the payment of services to be rendered under this Agreement. It is expressly understood that Grantee's obligation under this Agreement is contingent upon receipt of funds for such purpose from the U.S. Department of Housing and Urban Development (HUD), by virtue of the above mentioned Grant(s). Accordingly, notwithstanding anything herein to the contrary, the maximum liability of the Grantee under this Agreement, shall not exceed One Hundred Sixty Eight Thousand One Hundred Dollars and. No/100 ($168,100.00) or the amount actually received by the Grantee from HUD pursuant to the Grant, whichever is less, and Subrecipient, by execution of this Agreement, acknowledges its understanding of this fact. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in OMB Circular A-110. The Grantee shall reimburse the Subrecipient for the total costs, plus project delivery costs, of those items, which serve only clients from the OHED service areas. In no event shall the Grantee pay the Subrecipient more than the sum of One Hundred Sixty Eight Thousand One Hundred Dollars and No/ 100 (S 168,100.00). Payment by the Grantee to the Subrecipient shall be limited to the actual out-of-pocket expenses incurred by the Subrecipient in the performance of this Agreement. No reimbursement shall be made for eoods or services received by the Subrecipient as in- kind contributions from third parties for assistance of the program. Any proposed reallocation of funds among various Budget line items or to new line items created in the Budget must be treated as a contract amendment, requiring approval of the Grantee. No more than two (2) budget revision requests shall be allowed each year. The Subrecipient understands and agrees that reimbursement for costs under this Contract shall be in accordance with all applicable federal rules, regulations, cost principles, and other requirements relating to reimbursement with Housing and Urban Development (HUD) grant funds. The County shall pay for only those costs that are allowable under said rules, regulations, cost principles and requirements. The Subrecipient agrees to IV V vI repay County in full for any costs paid by Coumv under this contract that are disallowed or determined to have been ineligible for payme-t with HUD grant funds. NOTICES Any communication conceming this Agreement :hall be directed to the representatives of the Grantee and Subrecipient as provided in Exl_bit A, Scope of Services. Subrecipient shall provide clients with informar,)n concerning submission of complaints. Any complaints received concerning, the Subr=cipient and services provided shall be directed to the representative of the Grantee as provided in Exhibit K. Letters received detailing the results of Subrecipient monitorin by the Grantee shall be posted, upon receipt, for public view. If HUD initiates an investigation into a matter :overed under this contract, OHED shall or may withhold all payments until the results )f the investigation have been revealed. Reimbursement to the Subrecipient will be determined upon resolution of the investigation by HUD. Grantee David B. Turkel, Director Office of Housine & Economic Development 8410 Lantern Point Houston, Texas 7-054 SPECL-kL CONDITIONS Subrecipient John Joerns, Acting City Manager City of La Porte 604 W. Fairmont Parkway LaPorte, Texas 77571 The Subrecipient agrees to comply with the rr-:uirements of Title 24 Code of Federal Regulations, Par 92 of the HUD remulations :oncerning the HOME Program and all federal regulatior-; and policies issued pursuar.: to these regulations. The Subrecipient further agrees to _tilize funds a%-ailab'.: under t _s Agreement to supplement rather than supplant funds ot'- vise available. ; ATCHNG FL -NDS CON7RIBUTIOti R.EOL-REMENTS HO'VIE Pro --ram :ends used for Subre:ipient p-:iect delivery costs and the provision of do%vnpa%ment ar.Z� closing cost assistance are -!quired to be matched according to 24 C.F.R. ; 9?.? 18. -he matc::ing, contricution mL,_: total not less than 25 percent of HOME funds upended. Eligible :Dans of matching c:ntributions must be met in accordance p. with -1 C.F.R. y ; VII. PROSECT REOUIREMFty'I'S A. Property Standards (1) The Subrecipient must follow the property standards requirements of 24 C.F.R. § 92.251 for housing constructed or rehabilitated with HOME funds. The housing must meet all applicable local codes, rehabilitation standards, ordinances and zoning ordinances at the time of project completion. (2) Newly constructed housing must meet the current edition of the Model Energy Code (MEC) published by the Council of American Building Officials. (3) The housing must meet the accessibility requirement at 24 C.F.R. Part 8, which implements Section 504 of the Rehabilitation Act. (4) Construction of all manufactured housing must meet the Manufactured Home Construction and Safety Standards established in 24 C.F.R. Part 3280. B. Affordabilitv Period The Subrecipient must follow the affordability requirements of 24 C.F.R. § 92.254 (a)(4) of the HOME Program, as applicable. Failure to meet the affordability requirements for the specified periods will require repayment of HOME funds. In addition, to ensure affordability, the Grantee has imposed the recapture requirements at 24 C.F.R. § 92.254(a)(5)(ii), which recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence during the period of affordability. ' Amount of Assistance Provided Affordability Period <S15,000 5 years S 15,000 - 540,000 10 years >540,000 15 vears I C. Recapture Reouirements The Subrecipient must inform homebuyers that housing purchased with HOME Program funds must be acquired by a homebuyer whose family qualifies as a low- income family and that the housing must continue to be the principal residence of the assisted homebuyer for the full affordability period, as required by 24 C.F.R. 92.254 (3). To ensure that the Grantee recoups all or a portion of the HOME assistance to homebuyers in accordance with 24 C.F.R. § 92.254(a)(5)(ii)(A)(5) if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, the Grantee will reduce the HOME investment amount to be recaptured on a pro -rata basis for the time the homeowner has owned and occupied the housing as the principal r-idence measured against the required affordability period. D. Religious Organizations HOME funds may not be provided to pr_-narily religious organizations, such as churches, for any activity including secu:_r activities as indicated in 24 C.F.R. § 92.257 of the HOME Program requiremems. E. affirmative Marketing: Minority Outreach Program Subrecipient must follow the affirmative marketing procedures and requirements in accordance with 24 C.F.R. § 92.351 of the HOME Program, for HOME - assisted housing containing 5 or more hosing units. The affirmative marketing steps consist of actions to provide info-mation and otherwise attract eligible persons without regard to race, color, national origin, sex, religion, familial status or disability in the housing market area to se available housing. The Grantee will annually assess the affirmative marketing program to determine the success of affirmative marketing actions and any nec:ssary corrective actions (Exhibit H). VIII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with all appl:z:able federal, state and local laws and regulations governing the funds provided under this Agreement, including Executive Order 11_372 governing the review and coordina--on of Federally Assisted Program and Projects. - B. Independent Contractor Subrecipient shall operate hereunder as an Indep=adent Contractor and not as an officer, agent, servant or employee of Grantee. Subrecip:int shall have exclusive control of, and the exclusive right to control. the details of the v, >rk and services performed hereunder, and all persons performing same. and shall bt solely responsible for the acts and omissions of its officers, members, agents, sen: --Its, employees, program participants, licensee_ or invitees. The doctrine of responder: superior shall not apply as between Grantee and Subrecipient, its officers, members. agents. servants, employees, program .)a -I Marts.•licensetzs or inv!tees. and nothing ! :rein shall be construed as creating a or Jo -n: entetr^:c between Granter and Subrecipient. It is expressly . n�rstced and -eed that no officer. member,_:ent, employee, licensee or invitee of Subrecipient. nor any program participant her::rider. is in the paid service of Grantee and that Grantee does not have the leizal right to c::ltrol the details of the tasks performed ilCretlnder by Subrecipient. its officers, me.rbers, agents, employees, program participants. licensees or invitees. Grantee shall in no way nor under any circumstances be responsible for any property belonging to Subrecipient, its officers, members agents, employees, program participants, licensees or invitees, which may be lost, stolen, destroyed or in any way damaged. C. Indemnity Subrecipient covenants and agrees to indemnify, hold harmless and defend, at its own expense, Grantee and its officers, agents, servants and employees from and against any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind of character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance of this contract and Agreement and/or the operations, activities and services of the Program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee; and Subrecipient hereby assumes all liability and responsibility of Grantee and its officers, agents, servants, and employees for any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance of this contract and Agreement and/or the operations, activities and services of the programs described herein, whether or not caused in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee. Subrecipient likewise covenants and agrees to and does hereby indemnify and hold harmless Grantee from and against any and all injury, damage or destruction of property of Grantee, arising out of or in connection with all acts or omissions of Subrecipient, its officers, members, agents, employees, sub-Subrecipients, invitees, licensees, or program participants, or caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee. D. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all employees involved in the performance of this Agreement. Subrecipient must provide to OHED a Certificate of such insurance. The Subrecipient shall also abide by the Contract Work Hours and Safety Standards Act of 1962 (40 U.S.C. 327 et seq.). E. Waiver of Immunity ]f the Subrecipient, as a charitable or nonprofit organization, has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death. to persons or property, Subrecipient hereby expressly waives its rights to plead defensively such immunity or exemption as against Grantee. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 0 • F. Public Liability Insurance Subrecipient shall furnish a certificate of insurance as proof that it has secured and paid for policies of public liability and automobile liability insurance covering all risks incident to or in connection with the execution, p-trformance, attempted performance or nonperformance of this contract and Agreement. The amounts of such insurance shall not be less than the maximum liability, which can be imposed on Grantee under the laws of the State of Texas. At present, such amounts shall be as follows: Property damage, per occurrence 5100,000 Bodily injury or death, per person S100,000 Bodily injury or death, per occurrer:e $300,000 With the understanding and Agreement by the Sul -recipient that such insurance amounts shall be revised upward at Grantee's option and mat the Subrecipient shall revise such amounts within thirn• (30) da%5 following notice to Subrecipient of such requirements. Subrecipient also covenants and agrees to fimrsh the Grantee with a certificate of insurance as proof that it has obtained and paid fcr a policy of Worker's Compensation Insurance in the amounts reauired by State lave. covering any and all employees of Subrecipient active in the pro -am funded under tits contract; and Subrecipient agrees to require its sub-Subrecipients to carry adequate Wcrker's Compensation Insurance in the amounts required by State la,.v. Subrecipient will submit to Grantee document_:ion that it has obtained insurance coverage as required in this contract within thit-: (30) days of the execution of this Contract and prior to payment of anv monies hereu_ der. G. Grantor Recognition The Subrecipient shall ensure recognition of th= role of Grantee in making services u%ailablz through this green ent.A11 facilities. p_-,lications and other items used, made available. or made possible t'r.-ough funds obtain: pursuant to this Agreement shall be prominently labeled as having been funded (in tot_: or in part) by Office of Housing and zconomic Developrnt-nt. Subrecipient shall maintain 2 "recognition. file". Each instance of recognition shall be Documented by including in such file a copy )r photograph of each instance of gnition. Original documents are the prefe-red means of documentation, but photocopies or photographs may be used when and where appropriate. • H. Amendments • Grantee or Subrecipient may amend this Agreement at any 'time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release Grantee or Subrecipient from its obligations under this Agreement. Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendment results in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be effected only by written amendment signed by both Grantee and Subrecipient. No more than two amendments to the agreement shall be allowed each year. I. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date, of such termination. Partial terminations of the Scope of Services in Exhibit A above may only be undertaken with the prior approval of Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by Subrecipient under this Agreement shall, at the option of the Grantee, become the property of Harris County, and Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination, unless HUD has determined through monitoring and or investigative practices, that Subrecipient is not entitled to such compensation. Subrecipient may be responsible for repayment of funds to OHED or HUD. Grantee may also terminate this Agreement for cause, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Subrecipient ineligible for any further participation in Grantee HOME Agreements, in addition to other remedies as provided by law. Additionally, in the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to twenty-five (25) percent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. Termination. or expiration, of this Agreement shall not relieve Subrecipient of liability for anv breach of this Agreement that occurs prior to such termination or expiration. • J. Reversion or Assets • Upon expiration of the term of this Agreement. the Subrecipient shall transfer to the recipient any HOME funds on hand at the time o: expiration and any account receivable attributable to the use of HOME funds. For _rry year following the expiration or termination of this contract that Subrecipient hold: personal property attributable to funds hereunder, Subrecipient shall submit an Annual Report of Personal Property identifying the property and its location, with such report bei=g filed with the OHED and the Harris County Auditor. Grantee may also suspend or terminate this agreement, in whole or in part, if Subrecipient materially fails to comply with any ::rm of this Agreement, or with any of the rules, regulations or pro% isions referred to herein; and the Grantee may declare the Subrecipient ineligible for any further participation. in Grantee Agreements, in addition to other remedies as provided by law. In the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to twenty-five (25) percent of sed Agreement funds until such time as the Subrecipient is found to be in compliance by Le Grantee, or is otherwise adjudicated to be in compliance. IX. ADMINISTRATNE REQUIREMENTS A. Financial ManaQemen- Accounting Standards The Subrecipient agre:s to comply with S::bpart C of OMB Circular A-110 and agrees to adhere to the accounting princ:;)les and procedures required therein, utilize adequate internal controls, and ma• :rain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient sh-il administer its --o,-ram in conformance with OMB Circulars A-121. "Cost Principles for \ : n -Profit Organizations, for all costs incurred whether char_ed on a direct or inc.-=ct basis. B. Documentation and R=-ord-KeepinL, Records to be Maintained The Subrecipient shat: maintain all recor=.s required by the federal regulations specified in 24 C.F.R. Part 92.508 and tr_t are pertinent to the activities to be funded under this Agreement. Such record: shall include but not be limited to: a. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with HOME assistance; b. Records documenting compliance with the fair housing and equal Opportunity components of the HOME program; C. Financial records as required by 24 C.F.R. § 92.505, and OMB Circular A-122; and d. Other records necessary to document compliance with Subpart K of 24 C.F.R. Part 92. 2. Retention The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of five years after the termination of all activities funded under this Agreement, or after the resolution of all Federal audit findings, which ever occurs later. Records for non -expendable property- acquired with funds under this Agreement shall be retained for five years after final disposition of such property. Records for any displaced person must be kept for five years after he/she has received final payment. All client records are the property of the Grantee and must be forwarded to the Grantee at the end of each quarter. Failure to submit client files to Grantee as required shall be a material breach of the contract and funding will be withheld from the Subrecipient until such time as the files are submitted. Subrecipient must also comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 3. Reports The Subrecipient shall furnish reports to the Grantee, which include, but may not be limited to the following: A. Performance Reports submitted at the end of each month. B. Certification for Contracts, Grants, Loans, and Cooperative Agreements (see Exhibit Q. C. Cost Control Report submitted monthly to Grantee. D. Cost Worksheet submitted monthly to Grantee. E. Reimbursement Request submitted monthly to Grantee. F. Personnel Cost Worksheet submitted ionth]y to Grantee. G. Quarterly and Annual Performance Reports submitted at the end of each quarter or contract period, respectively. H. Homeownership Assistance/Rental Housing Project Set -Up and Completion Reports. Monthly reports are to be submitted within ten (10) working days of *the end of the reporting periods. The quarterly performance reports are due within fifteen • 0 (15) days after the end of the previous qua: -ter and the annual performance report is due within one month after the end Of the contract period. Reimbursement requests received more than sixty (60) days after the reporting month will not be honored. Incorrect reports will- not be a-cepted and will be returned to the subrecipient for correction and resubmission. Failure to comply with the reporting requirements of this Article shall be a material breach of the contract and funding :will be withheld from the Subrecipient until such time as the reports are submitted. Grantee maintains the right to terminate thi: Agreement with the Subrecipient for failure to submit reports for three consecutiv- months. 4. Eligible Activiry The Subrecipient agrees to maintain doctmtentation that demonstrates that the activities carried out with funds provided Lader this Agreement meet the eligible activity relating to the HOME Program at :4 C.F.R. § 92.205, which states that funds may be used by a participating jurisdi:tion to provide for downpayment and closing cost assistance. The specific eligible costs for these activities are set forth in 24 C.F.R. 3 92.206(d). 5. Close -Outs Subrecipient's obligation to the Grantee shall not end until all closeout requirements described in 24 C.F.R. 84 are completed to the satisfaction of the OHED and the Harris County Auditor. Activities during this close-out period shall include. but are not limited to, making anal payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash ad%•ances, program income balances, and re_eivable accounts to the Grantee, and determining the custodianship of records. 6. Audits & Inspections All Subrecipient records with respect to ar:.• matters covered by this Agreement shal! be made available to the Grantee, its Zesignees or the Federal Government. at any time during normal business ho'.: -s, as often as the Grantee deems necessary, to audit, examine, and make exc:-pts or transcripts of all relevant data. An,.- deficiencies noted in audit reports mu:: be fully cleared by the Subrecipient %%Hain 30 da% -s after re:eipt by tl:e Subrec::)ient. Failure of the Subrecipient to comply with the abo',•e audit reettiremen:: will constitute a violation of this A2reement and may result in the %'�'ithhold:nsz of future payments. Subrecipient Hereby agrees to have an annual agency aud:: conducted in accordance with OMB Circular A-1=3. C. Reporting and Payment Procedures 1. Budgets The Subrecipient has submitted a detailed budget (see Exhibit B) in a form and content prescribed by Harris County Auditor. The Grantee and the Subrecipient may agree to revise the budget in accordance with existing county policies. The budget may only be revised two times in a one-year period. 2. Program Income The Subrecipient shall report all program income as defined at 24 C.F.R. § 92.2(2) generated by activities carried out with HOME funds made available under this Agreement. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 C.F.R. § 92.503. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Grantee at the end of the contract period. Anv interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the Grantee. 3. Indirect Costs If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Grantee share of administrative costs and shall submit such plan to the Grantee for approval. 4. Pavment Procedures The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and county policy concerning payment. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this Agreement for costs incurred by the Grantee on behalf of the Subrecipient. D. Procurement Com fiance The Subrecipient shall comply with the (1) public notice and (2) award of contract to the lowest and best responsible bidder procedures of the County Purchasing Act, V.T.C.A., Leal Government Ccde § 262.021 et seq., concerning the purchase of equipment and shall ma=tain an inventory record of all non- :xpendabi�- persons property. as deffneC4 by county policy, that may be procured -with fund_ provides hereunder. Any mi -property under Subrecipient's control :hat was a:quired c- improved in whole )r in part with HOME funds must either be: a. Used by the Subrecipient to -feet the eligible activity in 24 C.F.R. § 92.205(2)(1) until five years after expiration or termination of the Grantee': Agreement with HUD; or b. Transfe.: ed to the Grantee; or c. Dispose:: of in a manner, consistent with 24 C.F.R. § 85.31, which results the amount of the then current fair market value of the property less any portion the: --of attributable to expenditures of non- HONIE ands for acquisition riereof, or improvements to, the property being reimbursed to the Gran:=e. Such reimbursement is not required if disposed of more than 5) five years after the expiration or terminaton of this Agreemem . d. Further, :f within five years )f the termination or expiration of this Agreem—M, the Subrecipient eases to use any or all personal property attribute ie to HO`lE funds .) meet an eligible activity, the personal oropert, shall. in accordance with 24 C.F.R. § 85.32, either revert to :he Grar:ee or be disposed of m accordance with the applicable federal -ules amf regulations, includ:=Q but not limited to OMB Circular A- 110. SuL— art C. e. The Grz .:ee in its sole disc, -::ion shall determine whether or not the Subrecir:int use or any prop: -y meets the eligible activity contained :n 2= C. F R. j 92.5(a)(1). f. after tl:: expiratica of five ears, the Subrecipient shall have no )bliJatic- to cor with =is section regarding real or personal propert\ g. \othins:: Dntained =erein shat. be construed to conflict with the duties )f the �__'_�rec:pie; ::s set fo:-:a in the Texas tion -Profit Corporation .pct ( Te%. Ann. Civ. St. Art. 1: =6-1.01. et seq.) or any other applicable statue. 0'..3 Stand_ js -he Subrt::piens s'. Il procure materials :n accordance with the requirements of subpart C of O%• 3 Circuiar A -11C. Procurement Standards, and shall subsequently follow Subpart C, Property Management Standards, covering utilization and disposal of property. 3. Travel Subrecipient must comply with Harris County travel guidelines and obtain prior written approval from the Grantee for any travel outside the Grantee's service area paid for with funds provided under this Agreement. 4. Relocation Acquisition and Displacement The Subrecipient agrees to comply with 24 C.F.R. § 92.353 relating to the acquisition and disposition of all real property utilizing grant funds, and to the displacement of persons, businesses, non-profit organizations and farms occurring as a direct result of any acquisition of real property utilizing grant funds. The Subrecipient agrees to comply with . applicable Grantee Orders, and Policies concerning displacement of individuals from their residences, including the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VII of the Civil Rights Act of 1968 as amended, Section 109 of Title 1 of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086 and all other applicable requirements of 24 C.F.R. § 92.350, Subpart H. 2. Nondiscrimination The Subrecipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age marital status, or status with regard to public assistance. The Subrecipient will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Subrecipient, settir._ forth the provis: businesses regarding their status as minority and women business enterprises in lieu of an independent investigation. 3. Access to Records The Subrecipient shall furnish and cause each of its sub-Subrecipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation 'to ascertain compliance with the rules, regulations and provisions stated herein. 4. EEO/AA Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action Employer, as applicable. 5. Subcontract Provisions The Subrecipient will include the provisions of Paragraphs VIII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each Subrecipient or vendor. C. Employment Restrictions 1. Prohibited Activitv The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participant's health or safetv. 3. Labor According to 24 C.F.R. § 92.354, 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 payrridnt of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to D=vis-Bacon Act (40 L7 S.C. 276a — 276a-5), to all laborers and mechanics employe;: in the development .)f any part of housing. Such contracts must also Ze subjec: to the overtime previsions, as applicable, of the Contract Work Hour: and Safety Standards Act (-t( U.S.C. 327 — 332). 1. "Se::ion 3" C:ruse a. Comr:iance Compliance -•ith the provisions c- Section 3 of the Housing and Urban Devtlopmem Act of 1968, as amended, the regulations set forth in 24 C.F.R. 135, asd all applicable rul:s and orders issued hereunder prior to the execution of this Agreement shall be a condition of the federal financial ass:--,ance provided undo^ this Agreement and binding upon the Grantee, the Subrecipient and any Subrecipient. Failure to fulfill these requirements shall subject the G.-antee, the Subrecipient and any sub- Subr�cipients. their successors and assigns, to those sanctions specified by the Agreeme=: through which fede�l assistance is provided, and as set out in == C.F.R. --Subpart 0. The Surecipient certifies and agrees that no con --actual o- other disability exis i which would prevent compliance with these require=ents. The Subreci=ient further agrees to comply with these "Section 3" regt_rements and to include the :ollowing language in all subcontract exec:ited und:r this Agreement. "The -work to be performed under this contract is a project assisted under : program providing iirect federal financial assistance from HUD and is subject to _e requirements of Section 3 of the Hous:::_ and Urban Deye. �pment Act of 1968, as amended, 12 U -S.0 1701. Section 3 rec ares that, to the greatest extent feasible oppommities for training and employment be given to lower incon : residents of the r-Diect area and contracts for work in conne::ion «•ith :he projec::e awarded to business concerns which are lo. -_--ted in, or owned ir substantial part by persons residing in the ar:_s of the project." Th_ �ubrecir.:at certifies and agre:; that no contractual or other disability ex;::: %vhich :: auld prevent compl:_-ice with the requirements. b. \otif-.::tions The Subrec:.:ent apes to send to each labor organization or rer-e�entative of work -7s with -j.hich it has a collective bargaining arre=-hent or ::her contract or unde.;tanding, if any, a notice ads ising said labc- oreaniz--ion or worker's re=esentative 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. C. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. 135 and will not let any subcontract unless the subcontractor has first provided it with preliminary statement of ability to comply with the requirements of these regulations. d. Grievances Subrecipient will notify all clients of the grievance procedure (Exhibit K). Grievance notification will be posted at subrecipient location and will list grievance officer and contact telephone number. Grievance notification will also identify OHED as funding source and telephone number to contact Grantee. D. Conduct 1. Assisrtability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Grantee. ?. Hatch Act The Subrecipient 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 United States Code. �. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 C.F.R. § 92.356 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services requirdd under this Agreement. The Subrecipient further covenants that in the performance of this Agreement no person having such a :financial interest shall be employed or retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employe:- agent, consultant, officer, or elected official or appointed afficial of the Grante_. or of any designated public agencies or Subrecipient that ase receiving funds un-er the HOME Program. The Subrecipient also agrees to abide by 18 U.S.C. 286, which provides for conspiracy to defraud the Federal Go-,• nment with Respect to Claims. In addition, the Subrecipient will also abide by the False Claims Act (31 U.S.C. 3729 et seq.); 18 U.S.C. 287 relating to False, Fictitious and Fraudulent Claims; IS U.S.C. 245 Feder_lly Protected Activites; 18 U.S.C. 1001 regarding General Statements or Entries: the Program Fraud Civil Remedies Act (31 U.S.C. 3801- 3512); the Federal Claims Collection Act cf 1966 (31 U.S.C. 952) as amended by the Derby Collection Act of 1982; the Mentorious Claims Act (31 U.S.C. 3702), the Tucker Act (28 U.S.C. 1346, 1491, and 2501); the Wunderlich Act (41 U.S.C. =21-322); the Anti-Deficiencv Act (31 U.S.C. 1341); and Section 208(a) of the Intergovernmental Personnel :pct of 1970, :s amended. 4. Subcontracts a• Anpro als The Subrecipient shall not enter in:.) any subcontracts with any agency or indi,.idual in the performance of this Agreement without the written consent of the Grantee prior to the execution of such agreement. b• Mon_ its The Subrecipient will monitor all s_bcontracted services on a regular basis to assure cor-ract compliance. Results of monitoring efforts shall be sum-marized in written reports and : !pported with documented evidence of follo:c-up actions taken to correct a-cas of noncompliance. C. Conten: The Subrecip:ent shall cause all e: the provisions of this Agreement its enti-etv to be included in and mad_ a part of any subcontract executed in the performar.;e of this Agreement. d• Select: --n Process The Subrecip::at shall undertake tc insure that all subcontracts let in the performance � r' this Agreement s -all be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the Grantee _long with documentation concerning the selection process. 5. Co_ nht If this Agreement results in any copyrightable material, the Grantee 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 for government purposes. 6. Religious Organization The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 C.F.R. § 92:257. XI. ENVIRONMENTAL CONDITIONS A. Air and Water The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this Agreement: ■ Clean Air Act, 42 U.S.C. 1857, et seq. ■ Clean Water Act, 33 U.S.C. 1368 • Executive Order 11738 ■ Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., relating to inspection, monitoring, entry, reports, and information, and all regulations guidelines issued thereunder. • Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 15, as amended. • National Environmental Policy Act of 1969 (42 U.S.C. 432 et seq.; as amended) • HLA Environmental Review Procedures (24 C.F.R., Part 58). B. Flood Disaster. Protection The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 (P.L.-2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this A(2reement. C. Lead -Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Re,2ulations at 24 C.F.R. § 92.355, and 24 C.F.R. Part 35, and in particular Sub -Part B 0 • thereof. Such regulations pertain to all TUD-assisted housing and require that all 'owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based pint and explain the symptoms, treatment and precautions that shoulf; be taken when deal:ne with lead-based paint poisoning, and of the advisability and availz�ility of blood -level greening for children under 7 years of age. D. Historic Presen•ation The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National HistoTc Preservation Act Of 1966, as amended (16 U.S.C. 470) and the procedures set forth i- 36 C.F.R., Part 80i. Advisory Council on Historic Preservation Procedures for Protec:_:on of Historic Propenies, insofar as they apply to the performance of this Agreement. In general This requires concurrence frcm the Texas Historical Commission and Antiquities Committee for all rehabilitation and demolition of historic properties that are f Ry years old or older or that are included on a Federal, State, or local historic property lie:. E. Wildlife Protection The Subrecipient agrees to comply with the requirements of the Endangered Species Act of 1973 as listed in C.F.R. 17.11 and 50 C.F.R. Part 451; the Lacey Act (18 U.S.C. 42j: the M oratory 3ird Treaty Act (1 o U.S.C. 703-12); the Fish and Wildlife Coordination. Act (16 .S.C. 661-667e); Section 4(0 of the Department of Transportation Ac: (49 U.S.C. 165,1:); the Federal Water Pollution Control Act (33 U.S.C. 1251 et se::.); the Costal Zore Management Act of 1972, as amended (16 U.S.C. 1451); and the Save Drinkir•_ Water.:ct of 1974 (42 U.S..,. 300f to j-10), insofar as they apply to the pe-ormance of this A: eement. 0 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. Attest: Secretary APPRO D: i 13y Davi urkel, Director Office of Housing & Economic Development Department APPROVED AS TO FORM: Mike Stafford, County Attorney Melis L. Barloco Assistant County Attorney AUDITOR'S CERTIFICATE CITY OF LA PORTE I herebv certifv that funds are available in the amount of 5168.100.00 to pay the obligation of Hams County under this contract. Tommy J. Tompkins County Auditor EXHIBIT A I. Scope of Services A. Activities 0 Subrecipient will be responsible for administerirZ HOME Program Fiscal Year 2002 Downpa,ment and Closing Cost Assistance Pro_ am in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Subrecipient will provide Down Payment and Closing Cost Assistance to low- income citizens, in accordance with 24 C.F.R. § 52.205(a)(1). Such program will also include the project deliver: costs directly relied to carrying out the project, in accordance with 24 C.F.R. § 92.207(b). These costs will be charged to the program as project costs, in accordance with 24 C.F.R. § 92.206(d)(6). Program Delivery The City of La Porte City), a cooperative ::ity of Harris County, in conjunction with local communis: organizations has decided to increase the number of atiordable housing urts available to low income residents of the City by utilizing � HOME Proam fund_. Subrecipient agrees to assist eligible homebuyers seeking affordable, safe and d::ent housing and morgage financing on the open market. These grant :ands wii: be utilized to assist eleven low-income homebuyers with the purchasing of a sngle-family residential property. The properties will be located within older established neighborhoods, specifically the Northside area within the corporate IL--iits of LaPorte, Texts. Tine City has agreed to provide a total of SS7,500.00 in matching funds to Harris County for deposit into Harris County's HOME Investment Trust Fund. These funds are required to -:feet the 25% match requirement for the project. The project includes ace::isition Of vacant lots for the cc:tstruction of eleven affordable single- fanlily houses and do-•-:npavment and closing cost assistance. Grantee agrees that a vacant lot shall mea i two 25' x 125' lot; under this Agreement. The City has a_: eed to remit these =_nds within 30 days aster Commissioners Court approval of the Single-F=mils ve•:: Construction Agree -gent. T e total amount olf 512.000.00 in matc=ing funds has been committed for ac, uisition of four of :he required number vacant lots under the Single -Family N: A. Constr-ction As::Bement. Under this=.greement, the City agrees to provide S-5.500.00 :n matc=:n_ funds to suppiement Grantee's HOME funds for c , xnpa%Tne-: and ::osing cost assistz.ce. The total amount of direct he:neo-vners::ip assistance provided to each eligible homebuyer under this eement ..ill be a:oroximately Twentv Two Thousand One Hundred Forty FiVe Dollars and 45/1 :�) (S22,145.45) of which $15,281.81 will represerit HOME funds and S6.363.63 s all represent the Citv's matching funds. The total project cost for downpayment and closing cost is $243,600.00; the total project including acquisition of vacant lots for the construction of eleven affordable single-family houses and downpayment and closing cost assistance is $1,254,050.00. Subrecipient does not make first lien mortgage loans; however, Subrecipient will provide a full service homebuyer downpayment and closing cost assistance program that includes counseling homebuyers to assist them in purchasing a home and assisting them with downpayment, closing costs, or prepaids based upon need. This program also provides education classes on "How To Purchase A Home" for potential low-income homebuyers and mortgage assistance will be provided through a contract and working relationship with Washington Mutual Bank who has experience in the affordable housing market. This will serve the OHED jurisdiction and will enable subrecipient to deliver a program to low and very -low income residents of the County. Subrecipient will provide up to $22,145.45 in direct financial assistance to eligible program participants to be used for down payment assistance, closing cost assistance, pre paid and inspections. Subrecipient will provide the following administrative services: determine eligibility, verify income, determine site eligibility, determine property condition, provide financial assistance, maintain program records and provide eligible applicants access to mortgage lenders utilizing Conventional, FHA, VA, and Portfolio mortgage products. Subrecipient will accept counseling certificates only from HUD approved counseling agencies. Subrecipient shall provide or shall arrange for delivery of homebuyer education at no cost to the prospective homebuver, and shall provide a list of eligible counseling agencies in the application packet to interested homebuyers, all provided as a part of the services contracted for herein; however, prospective homebuyers may take the required course from any other eligible counseling agency of prospective homebuyer's choice, but in such case, prospective homebuyer shall bear all cost. The mortgage lender will submit a Letter of Intent to Process Loan, Good Faith Estimate and 1003 Uniform Residential Loan Application to Subrecipient. .-applications will be processed on a first-come, first-served basis. Subrecipient will determine the eligibility of the applicant based upon the Letter of Intent to Process Loan, Good Faith Estimate and 1003 application pursuant to the regulations governing the HOME program. In the event that the prospective homebuyer is deemed ineliuible the Subrecipient will inform the prospective homebuyer of the decision by registered letter or personal delivery. C When the lende- issues a final approval and forwards to Subrecipient a full application pack --;e, Subrecipient wilt verify eligibility for assistance and notify the applicant anc lender of eligibility by registered letter or personal delivery. Incomplete appli;ztions will be returnei to the lender without being processed. Eligible applicants must meet the following requirements: 1. Purchasers may be a "First Time Homebuyer" or any income -eligible house old not currently ow-ing a home. 2. Purchaser's total gross household income cannot exceed 80 % of the area median income adjus:_d for family size, as determined by the U.S. Department of Housing and Urban Development. :. Purchasers must agree to maintain the home as their principle place of resideyce for the full applicable period of affordability, 24 C.F.R. § 92. 254(a'.4.4). Purchasers must provide evidence of successful completion of a home,-uyer education and :ounseling course from a HUD approved counseling agency or OHED approved. . Purchasers may not have assets (cash) in the amount that is sufficient to coxrr the required downFavment and closing cost assistance. 6. Purchasers must secure a first lien mortgage from any participating mortgage lender. Purchaser's total monthly mortgage payments must receive approval through the 1) Fannie Ma_ Desktop Underwriter 0, Fannie Mae's auton -ted underwriting sys:em for mortgage lenders or 2) through the Mortg_ve Company's usual methodology. Eligible :)ropertie: must: 1. Be ;coated %%-::hin the City of La Pcne's older neighborhoods, specifically the Lora' -side nei_zborhood. The :)ropertie: are the 11 newly constructed single-family dwelling unit within the Citi• of _a Porte's older ne:shborhoods, specifically the Northside neig.-borhooc. 3. The maximur- purchase price cannot be valued at more than 95% of the most curr:at area n-=dian purchase price as specified in the Single Family Mortgage Lim::s under Section 203(b) of the National Housing Act, published by the U.S. Depar rtnt of Housing and Urban Development (HUD) for the HOME Program or $115,000.00, which ever is less. This must be supported by a certified appraisal. 4. The acquisition of any property in this program cannot result in the displacement of the present tenant. Any property purchased with HOME funds must comply with the HOME Displacement, Relocation, and Acquisition requirements as well as the Uniform Relocation Act. 5. Existing homes must meet HUD's minimum Section 8 Housing Quality Standards or local building codes. Newly constructed homes must meet the current edition of the Model Energ Building Officials (Exhibit D). y Code (MEC) by the Council of American 6. The purchaser must order a lead -hazard inspection on all housing built before 1978; housing built after 1978, the requirement of 24 C.F.R. Part 35 must be met. Activity #1 The Subrecipient will assist the prospective homebuyer with the following: 1. Prepare homebuyer application form. 2. Refer prospective homebuyer to lenders to determine mortgage eligibility as prescribed by Exhibit A, Scope of Services (Program Delivery). 3. Assemble source documentation evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement) for the household in order to calculate annual income utilizing the Section 8 definition for determining annual income (Exhibit E). The Grantee may monitor the Subrecipient (this includes physical inspections of the property) on a bi-weekly basis or as needed (in addition to ongoing technical assistance as a quality control measure) to provide guidance and determine compliance with HOME Program requirements. If a determination of eligibility is made, the Subrecipient will forward a written notice of conditional approval to the prospective homebuyer and Subrecipient will proceed to Activity #2. In the event that the prospective homebuyer is deemed ineligible the Subrecipient will forward a written notice of denial to the prospective homebuyer. Subrecipient shall provide or shall arrange for delivery of homebuyer education at no cost to the prospective homebuyer, and shall provide a list of eligible counseling agencies in the application packet to interested homebuyers, all provided as a part of the services contracted for herein; however, prospective homebuvers may take the required course from any other eligible counseling agency of prospective homebuyer's choice, but in such case, --prospective homebuyer shall bear all cost. 0 • The Subrecipient apees that they may re.:uest reimbursement for overhead costs to provide :he home*,-,uyer counseling and education and loan administration, only ifthe homebuyer co-tpletes the following steps: 1. Homebuyer completes homebuyer co:iseling and education; and Homebuyer completes the process of-urchasing the home. If the homebuyer fails to close on the-ome after successfully completing the homebuyer counse'.:.ng and education. he reimbursement of overhead costs associated :vith providing such a service will not be approved. Subrecipient agrees to submit a copy )f the following documents for each homebuyer for reimbursement of ove Lead costs associated with providing homebuyer counseling and education and :oan administration: 1. Copy of certificate indicating the r. me of the homebuyer(s) and date of completion. =. Copy e. all closing documents from -:tle Company (i.e. settlement statement, etc). in additioi Subrecipient agrees that the failure to submit the above-mentioned uocumentanon for each homebuyer wiL reimbursement requests for overhead costs associated wig providing homebuyer counseling and education and loan administra on will result in the Subrecip:ent not receiving reimbursement for the associated costs. Acti%-in• T2 Subrecipient will q-.:alif}' and close at legit one to two homebuyers per month. Subrecipient will sL:mit a quarterly prog•-:ss report summarizing all activities that occurred curing the quarter. Subrecipient will provide up to $22,145.45 in ; ownpay,:.ent and c:.sins cost assistance :o qualified homebuyers. Subrecipie-t will dc:ument household c=_racteristics and project information for ail qualifi:_ homeb_ ers. All client info --ration must be in a format approved by OHED arc compar _;le to the :nformatio- -equested on the HUD Homeownership assistance Project Set -Up and Project =ompletion Reports (Exhibit F). This :nformatic- must b- submitter: beginnin; with the first month's programmatic :nformatic- and reimbursement request. :n additic-. the Subrecipient agrees :o assist the Grantee in providing -ocumenta:ion for --"e completion of an _nvironmental review record (ERR) for each horrebuver. -he ERR must be _n a format approved by OHED and :omparab:e to the M—brrrration requested : n the Environmental Review Checklist Exhibit G This -formation is provided to assist the Grantee in completing ERR's for each clien : receiving assistance. 0 Activity #3 Subrecipient agrees to provide documentation in the file prior to homebuyer closing, for newly constructed homes, detailing the completion of the current edition of the Model Energy Code (MEC) by the Council of American Building Officials (Exhibit D, MEC Web Site), and the completion of the Builder's Certification form completed by the builder of the home (Exhibit M), if applicable, shall comply with Section 504 relative to meeting the needs of any approved applicant having one or more physical disabilities and/or sight or hearing impairments. In addition to the normal administrative services required as part of this Agreement, the Subrecipient agrees to document progress using reporting requirements specified in Paragraphs (IX) (13)(1), (IX) (B)(2), and (IX) (B)(3) of this Agreement. Activitv Units/Month Total Units/Year Downpayment & Closing Cost Assistance 1 11 i • EXHIBIT B (CITY OF LA PORTE) (DOWNPAYMENT A_ND CLOSING COST ASSISTANCE) Maximum Amount to be Paid Under this Agreement It is expressly agreed and understcod that the total amc-_nt to be paid by the Grantee under this Agreement shall not exceed One Hundred Sixty Eia=: Thousand One Hundred Dollars and No/ 100 (S 168,100.00). PROJECT BUDGET SU:NIVIARY NEW CONSTRUCTION AND DOWNPAyMENT ASSISTAiNCE Description Personnel Non Personnel Total PROJECT COSTS Acquisition (4x $3.x:4)0 per lo: Note: each house is -uilt on m -o 25' x 125' lots Construction of 11 omes: twc will be HOME -assisted. • 1 C 588,950.00 & 1 C 592,950.OG Remaining 9 non -HOME assi-ed units a-,•2. cost 590.-27.78 OHED Match _T__ Other S0.00 S0.00 S0.00 ; 50.00 SO.00 SO.000 _ SO.00 512,000.00 S181,900.00 50.00 i $0.00 50.00 $0.00 $0.00 Total f� . $0.00 $0.00 $0.00 $12,000.00 $816.550.02 1 5998,450.02 Total ! S181,900.00 512,000.00 5816.550.02 51,010,450.02 INDIRECT DEVTLOP.IENT . . .0. .>,0_ :. 0 550.02 51,354,050.0.._2COSTS (son costs) r Doxtnp;;•rent and _rosins Cc.:s Si68.100.00 S0.00 S243,60 Total Project Cost S3;0,000.00 37,500.00 5816. PROJECT BUDGET DETAIL DONN P YMENT :k\D CLOSING COST Project Costs OHED Match INDIRECT DEVELOPMENT COSTS i soft costs Dovvnp�-: -neat & c:: ;in_ cos:: 'r ( house -olds (S 1 _ z.:? 1. S i HC `.IE funds S 50.86?.6? -=tching :_.ds � I S 16 5.100.00 5':.500.00 Total Project Cost ; S168,100.00 5;5,500.00 Other Fundtnt S 0 $0.00 Total 5243,600.00 $243,600.00 n EXHIBIT C 0 CERTIFICATION FOR CONTRACTS, GRANTS, LOANS AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language 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 Subrecipients shall certify and disclose accordingly. This certification is 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. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than S 10,000 and not more that 5100,000 for each such failure. Executed this day of '��'�j (� r— _ ?A(1-2 By / tg—nature) % (Type or Print Name) (Title) Co%,ered action:ee (Program, Project or Activ' y) F+j$$3(IiGL � �.:rtTltilDJn:i ti'o ..qui i THE STATE OF TEXAS 40 DEC 17 20 7 § APPROVE COUNTY OF HARRIS § Rmrftdvd._____POP The Commissioners Court of Hams Counts`-. Texas, ccnvened at a meeting of said Court at the Hams County Adminis-ation Buildins in the City o' Houston, Texas, on the day of EC 1 7 2002 , 2002, With the feilowing members present, to -wit: Robert Eckels County Judge El Franco Lee Commissioner, Precinct No. 1 James Fonteno Commissioner. Precinct M. ? Steve Radack Commissioner, Precinct No. 3 Jerry Eversole Commissioner, Precinct'Ao. 4 and the follov.-ing members absent, to -wit: Aw! ,constituting a quorum, when among ot`er business, the following was transacted: ORDER ALTHORIZLNG EXECUTION OF AGREEMENT BETWEEN HARRIS COUNT TY A -N -D THE CITY OF LA PORTE FOR DOWIIPAYMENT AND CLOSING COST ASSISTANCE PROG _A_N1 Commissioner introduced an orier and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The ;notion, carrying wig it the aco� j�of the order, prevailed by the following vote: Vcte _ t GOUM Yes -40 Abstain AYES: icC-- =1:1 NAY S: C.:_ :_ ❑ ABSTENTIONS: c- - . - • •: _.. C.- :. The County J::dge there::pon aiii—iine- d that t •motic l shad duly and lawfully carried and that the order had *----en duly _-id lawfL'*%- adopted. The ord thus adopted follows: RECITALS: WHEREAS. :'-e Count: etas appi:* d for and. received :_rids from the United States Government und:- Title 1 of the Hc -.:sine anc Community Develc;�ment Act of 1974, Public Law 97-383 app:::ation n-=Iber ;V1 -C: -UC -48-: 215; 2002-047. WFEREAS.:=e Count; -xishes tc engage The City of _a Porte to assist the County in utilizing sups: ::ends; WHEREAS.: ze City c" La Porte. Shall insure recogriit:an of the role of the Grantee Department in p-aVidin- s��'ices tl`-�ugh this :ontract. .all activit:ts, facilities, and items utilized pursuant to th:s contra:: shall be :rominen::v labeled as to fund. -rig, source. In addition, The City of La Pone 'vill inc:-:de reference to Of :e of Housing and E:onomic Development ("OHED.") for the support provic:d herein :n all put:ications made possi-ie with funds made available under this con,-2ct. • NOW, THEREFORE, BE IT ORDERED BY THE COM1vfISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2. The Agreement is approved and the County Judge of Harris County or his designee is authorized to execute an Agreement with the City of La Porte to provide downpayment and closing cost assistance to low-income citizens in older neighborhoods specifically the Northside neighborhood within the corporate limits of the City of La Porte, Texas in Harris County, in the amount of $168,100.00. The Agreement is attached hereto and made a part hereof for all purposes. EXHIBIT D MODEL ENERGI- CODE Home I DECO Figgis s ~ , �. I Panteic I Co Office .. ..: Energy Conservation Design Standard for New State Buildings Recoenizrn^ the importance of desisnin" new enersY efficient state-owned facilities and major renovations, the 70th Texas !-eeislature authorized adoption of energy conservation design stands Design Standard for New State Buildings, based on the American Society of Heating. Conditioning Engineers (ASHRAEI Standard 90.1 and commonly referred to a The Energy Conservation developed to respond to this directive. It was first adopted in June 1989 and was recRefrigerating and Air February l99.. s the "Texas Standard." was revised to May 1990 and The Texas Legislature recently passed sena/ s which imposes new requirements and around some manor urban -areas in Texas (see the Senate Research Center's se s e rntormation,. Cenatn pot►tical subdivisions texcept school districtsi must inn Jeon local o y �o ..rnments in that are cost-effectrye, and all cities must adopt new energy efficient building codents. fergy a sis for additional League. the Texas Conference of li P dent energy efficient measures Urban Counties. the State Energy Conservation Office, and the Te ci Association of Counties will present one -day w he Texas Municipal as these workshops. Of C see How will workshops focusing on Senate Bill 5. For additional information on •--.P�wilh Senate 8i// S, Program goals are to set minimum re renpvarron prorecr: so that the 4uirements for energy efficient design of new Of energ: w - ma" be constructed, operated and maintained in a state building without constraining the building manner that minimizes the use goals are. function or the comfort and productivity of the occupants. S peci Ic • Io Drovidc criteria for enerev cnten�. efficient design and describe methods for determining • I"Drn:,ce sounds compliance with the _ uidance for energy efficient design. • Ire de:•elOD Droceaures to encourage code co i Q�\eiuD eparance and improve enforcement. an Incentive process and encoura pprrcation of the Texas Standard. T• Residential and Commercial Energy C^.� orn�re.cst+•_ re g. ode Training staenttai and small commercial energy �_BG MOO --i =Hero, Cude and AS code training HR.A E Standard 90.1. - cu'Tently in Place in Texas is based on the ::pprc,aches Dasea on file uee Training also focuses on simplified compliance path J•f of h•�Cchecl� and COMchecl� software• as developed u• er �c,urat•_ by PNNL for U.S. DOE. =�j, inrou_•: 'the adc,ption of a residential andlor comm use �i user. rriendl% tool lc, verily Compliance ercial energy code by�urisdictions in Olianc. Lrl�.•: m nrt_ct,• are It, Drn:tde training r••_u,In_ +,r ` �S`, tic; atning it, building code Officials deli; rt,r residential structure` and ASHRAE Standard 9061 for small commercial engineers by Home Ener;% Rating 'v buildings. :roc• �: � S. steiri/Energv EfYicienc�• 'n Tcn't: a:ttc,r, ,;�enctes, and Mortgage Demonstration Program cat,c, �`D =03K consultants successfully function as sub -grantees ot'DO funding• ti,r lc,w income ehi!lble home ciwn They currently use sub -grantees .ink Wit.:•. = no,tl� tu01s ►u e\•aluate E cost effective energy efficiency. sophisticated energy irnc-rove cnero: tug:. etftcieni improvements in new envies. and HUD ?03f; and e'_cc+mmunn\ action a_. existing homes in Texas and to certify consultants as qualified energy raters. r:m aobrecrt\e; are to d=monstrate a close correlation between Home Energy Rat . ing Systems and Energy 11 1, 1+ Cn..r, .1., Ct..1.a 1 + r, , ••%11i. . Home!O Pre. as ; C� • Please sendend rep site comments and enc repo � ii /�.� 'mac }+•... $UILDIN CVECMNOLOG *Z CODES g STANDARDS ^�°r Building Energy Codes & Products STATE AND COPY 17 Y P A O G A A y 5 Texas—DOE Status of State Energy Codes Primary Technical Contact: Felix Lopez Comptroller of Public Accounts State Energy Conservation Office (CPA/SECO) 111 E. 17th Street LBJ State Office Bldg. Room "1114 Austin, TX 78774 PH: ' (512) 463-1080 FX: (512) 475-2569 EMAIL: felf�opo`�state tx us State Agency/Office Head: Dub Taylor, Director, Texas State Energy Conservation Office, (512) Other Contact(s): Pam Groce, Texas State Energy Conservation Off; State Web site(s): Office, (512) 463-1889 State Energy Conservation Office: www,seco.cpa.state.t Current Status: x•us Residential: None except for low-rise state-owned or -fu buildings, which must comply with the 1993 MEC to show -funded compliance. , can use MECcheck Commercial: None except for state-owned buildings an supported institutions, wh,ch must comply with a modified ASHRAE/I_SNA 90,1- d state - 1989; can use COMcheck to show compliance. The State Energy Conservation Office(SEGO, Comptroller of Public Accounts (CPA) , will recommend to the for residential state-owned new buildinh S adoption of the IECC 2000 to the CPA the ASHRAE Standard 90.1-1999 g SE`O will also recommend as the Texas Design Standard for new institutional stathe new version of buildings, caned Adoption Process: ror buildings other t buildings, energy codes must be aoopteC by localode Jurisdictions o be enforceable. Such aDODtIOn is normally achieve d through the local government adoption process aDe to of the cit government, the ma p Y council or mayor may be required to Sign on the form of Jurisdictions adopt either the Standard or Uniform he law. their building code, but a few Most local adopt the National Building Codes as g Codes '•r1 r�n� e�•1nr1 •..fie �.�i lam:^^ r � . � r •�nr, . reference e y' `"`"' O1 stanc_rds are uAhe ��n t applicable buildin. codeNY-adopted by refer_. t;._ rygC and in fie' MEC ,s aoopted pv an gc_endix of the SBC and UBC.; For smote -owner= or -funned bu.ildir: throu;n the s Cte's administrative _ o� ess of p the ions are adopted Comment, and hearings. on, public Cornpliance Method: For st_;e_owne_ or _funned subm:� a buildin;;, the design professional comp ted comoiian cogniz=nt state a ce st_.ement and certification Texas Je agency Lnat the desgn is in compliance with the sign S=ndard or the MEC .as applicable based on the buiidir,; type.) For all cher bui!:,ngs in Provisrc�s Jurisdictions that have adopted energy T , cam=.rance is determine= Ypicali:, plans a -e submitted de through the permit process. insPe=e_ d and reviewed and then buildings are After successful completic- of this process, the building depart issue; a certificate of oc�pancy. g Enforcement: For stat. -owned c- -funded buildings, ;he cognizant enforces :he code. state agency =or all o:-er build:-gs, the cognizant ►_ _ode. IF a iurisdic_ cn adopts an cal government enforces the :nrout'�r°ugh =ne permit ins e P enerc: code, the code is enforced ons, �e o g inspection process =or new Peno:' on the size of the construction and ndrvidUz: may per'rrm plan reviews a. Jurisdiction the same d inspections. Background/History: =xceat Fc- state-oH�ed buildings T =erg e1; o exe- no Y c..__ for � � has mandato -:me ruin: residermal or cc— n' statewide =-'mots et?; o:'s� state raw conn=: eVp buildin Texas is a rride local taw. No -•=t�w,de _, bee- made to adopt ma-- sis. Th= state amatory energy codes on a = • training coOe is encourage; ; voluntary Of-- and „cme buii_2rs ry adoption and use vne= co- 'iercial c ding d m :dines C.er three ::ones rr. -,II s e inti -fa __ ��c/I=- St2nda-: 9C _, , `'9ht, '`=as has adapt residential s stance-- 1 >=g into , opted L=sated ir: _:� nrc--r'9rn�all� .vent int= ,Texas Design Standard. uary _=93 o- _ Ffect in Jun 1 =as rias ==oPtec, t-; iec3 Cr3aptMOw _d residential buiilldings,s S-ates�4er5Y program (SEP) Gran q c::_ mp, __�, ov'-= voce tie,, g for warded: co - '"n -mall commercial building M --'I Ener � anc �ancrng a -cess f :cce.- addition, ; °r :7e cost of exceeding p"=. -am for -o,v he Ener—, g the sic=ntial construction Ener:., Mortgage - S73,74 - be implemented. co-:-�Illn -� be adoptior, of the Mc•: .... . 9 2: �ercent =" more o� new el Energy Code b con ruction with two Y cities Years. the ener `, "`vc'op a comprehensiveroath to improving efficiency of the housing stock in W �as. Residential Construction Single Famil (New Building Permits): Y Multi -Family ) 1999: 100143 44771 1998: 99831 56898 1997: 82180 43794 Commercial Construction (Millions of Dollars): 1999: Not available 1998:15776 1997: 12723 Search Con_ t_� Home U.S. Department of Energy Last updated: 18 April 2001 ! i EXHIBIT E METHOD FOR DETERNITNING SECTION 8 .A.NNUAL INCOME nis page is ioateo on the U.S. Department of Housing and Urban Development's Homes and Communities Web 1�SD://www.hUd. •eni_�as__sir..,�/afFerdxhlnheue:.._..�:_:�-- - PU partment H Housing anrban Dz--lopment P art 5 Definition The Part 5 definition of annual income is the gross amount of income of all adult household members that is anticipated to be received during the coming 12 -month period. This definition sounds straightforward, but there are several specific issues related to the calculation of Part 5 annual income. ' Background on Using Part.5 ' Whose Income to Count ' Types of Income to Count ' Treatment of Assets The words highlighted above are key parts of the following phrases, which are essential to understanding the requirements for calculating Part 5 annual income. ' Gross amount. For the types of income counted in the Part 5 definition, gross amounts (before any deductions have been taken) are used. ' Income of all adult household members. The Part 5 definition contains income "inclusions" (types of income to be counted) and "exclusions (types of income that are not considered) for all adult members of a household. ' Anticipated to be received. Part 5 annual income is used to determine eligibility and the amount of Federal assistance a family can receive. A PJ must, therefore, use a household's expected ability to pay, not their past earnings, when estimating housing assistance needs. Background on Using Part 5 The HOME Program previously required PJs to use only the Section 8 Program definition of annual income to determine the eligibility of applicants to their HOME programs. The rules concerning Section 8 annual income were previously found at 24 CFR Part 813. However, Part 813 was removed from the Federal regulations on October 18, 1996. At the same time, 24 CFR Part 5 was published. Subpart F of Part 5 consolidated the requirements pertaining to income for many of HUD's programs, including Section 8. Currently, the definition of annual income found at 24 CFR Part 5 is used by a variety of Federal programs, including: 1 L`25,2002 the HOME I0stment Partnership prograr. , • ' the the Develcoment Block Grant=rogram, ' the Section 8 Program.. ' public housing programs, and ' the Low Income Hous:19 Tax Credit Progm-n. Within each of these procams, the Part 5 def-iition of annual income can be used to determine program eligibility and, in some =rograms, the level of assistance the household will receive. In some cases, two or mo.-- Federal programs may provide assistance to a single program or project at the .ocal level. When this is the case, the PI should be careful to choose a definit:on for income determinations that is permitted in all of the relevant Federal programs. Whose Income to Count Under the Part 5 definition of annual income, ircome from certain groups of people requires special considerat:on when calculating a household's annual income. Click on the key words below fo- more information ci how to count the income of the following categories of pecole: ' Minors (age 17 and uncer) ' Live-in aides ' Temoorarily absent family members ' Permanently absent family members ' Adult students living away from home Types of Income to Count At its rr:�st basic level, the =art 5 definition of e-nual income is made up of the types of nouseholc income :nat are: incluced in the definitio- ;"inclusions"), and ' exciuoed from :ne defin:::on ("exclusions"). A list of :ne Part 5 :,'come ;clusions" and "exc.-Bions" is published in the Code of -ederal :'egulations at 24 C=? 5.609. This list is periodically updated by HUD when changes ere made :o the P-=-5 definition of am -al income by the United States Zongres:. �dminis:-=;ors of -OME an: ether Federal programs are generally expected to .mpieme-: any changes to z -e regulations withir. 50 days of publication in the -ederal :egister. Located :clow are easy -to -read tables showing the Part 5 income inclusions and exclusions aublishe= at 24 C=R 5.609 on April 1, :998. 11,'=: '00� Search the Fed4p Register for changes to the Part Ainition of annual (For best results, Indicate that all Federal Register editions should be searched by the web site and type "24 CFR part 5", including the quotation marks, into the Search Terms field on this web page.) Welfare assistance is generally counted in the Part 5 definition of annual income. Most PIS will therefore use the actual gross amount of welfare assistance the household receives in the calculation of "annual income". However, in certain "as - paid" localities a special calculation is required. Part 5 Inclusions This table presents the Part 5 income inclusions as stated in the Code of Federal Regulations. General Category Statement from 24 CFR 5.6o9 paragraph (b) (April 1, 1998) 1. Income from wages, salaries, The full amount, before any payroll deductions, *of wages and salaries, overtime pay, tips, etc. commissions, fees, tips and bonuses, and other compensation for personal services. Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness cannot be 2. Business Income used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation family. by the Interest, dividends, and other net income of any kind from real or personal properly, Expenditures for amortization Interest & of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 . (above). Any withdrawal of cash or assets from an investment Dividend Income will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. 4. Retirement & The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, Insurance pensions, disability or death benefits, and other similar types of periodic receipts, including a lump -sum amount Income or prospective monthly amounts for the delayed start of a periodic payment (except as provided in number 14 of Income Exclusions). Payments in lieu of earnings, unemployment & Disaoility Income such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in number 3 of Income Exclusions). Welfare Assistance. If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance 6. Welfare jAssistance income to be included as income shall consist of: • the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; 1 plus • the maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. j If the family welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph is the amount resulting from one application of the Percentage. 7. Alimony, Child Periodic and determinable Support, & Gift Income allowances, such as alimony and child su and regular contributions or gifts received froOrt payments m organizations residing in the dwelling. or from snot S. Armed Forces Income�1 All regular pay, special day and allowances of a member of the Armed Forces (except as provided in number 7 of Income Exclusions). 1 1, 25,`?002 Part 5 exclu0s This table presents tl-e Part 5 income excusions as stated in the Code of Federal Regulations. General Categc. Stater-ent from 24 CFR 5.609 pa-3graph (c) (April 1 1998) 1. Income of Income from employment of chit -en (including foster children) under the age of 18 Children years. 2. Foster Care Pa me - Payments Y is received for the care o''oster children or foster adults (usually persons with a`abilities, unrelated to the tenant family, who are unable to live alone). 3. Inheritance and Lump-sim additions to family ass`-%, such as inheritances, in payments Insurance Income (inclucng payments under health and accident insurance and worker's compe-sation), capital gains and settlement for personal or property losses (except as pro►•tled in number 5 of Income! Inclusions). 4. Medical Expense Amour.:, received by the family trat are specifically for, or in reimbursement of, the Re:mbursemen3 cost of-iedical expenses for any family member. S. income of Lve- i::�n Aides Income of a live-in aide (as definer in 24 CFR5.403). 6. Student The full amount of student finance assistance paid directly to the student or to the Financial Aid educatr=nal institution. 7av . -40stile Fire' The special pay to a family member serving in the Armed Forces who is exposed to Phostile =re. S. Self-Sufficienrj a. :mounts received under t•aining programs funded by HUD. Prc;ram Income b. ;mounts received by a person with a disability that are disreg imited time for purposes t" Supplemental Security Income elig ti lity and :enefits because they are set side for use under a Plan to Attain Self- :ufPiciency (PASS). C. Amounts received by a par:cipant in other publicly assisted programs that are specifically for, or in rernbursement of, out-of-pocket expenses incurred special equipment, clothirr„ transportation, childcare, etc.) and that are -lade solely to allow particzation in a specific program. d• :-mounts received under a •esident service stipend (as defined in 24 CFR :.609(c)(8)(iv). e. :-cremental earnings and --enefrts resulting to any family member from -articioation in qualifying sate or local employment training programs ncluding training not affii;ated with a local government) and training of a imily member as resident -nanagement staff. Amounts excluded by this :-Ovision must be receives :oder employment training programs with =early define: goals and o ectives, and are excluded only for the period II :.ring which me family me-rber participates in the employment -training :-ogram. �c• ''-s Tempo" --i, nonrecurring, or spora: c income (includin 1C 9 gifts). -.eparation IRepara:•:*i payments paid by a foregn government pursuant to claims under the Pav entS laws of -at government by person_ who were persecuted during the Nazi era. 11 u, -: me Stutler—= come fro" II Fug -: I Ei3rning: excess p` 5480 for eac- `ull-time student 18 years old or older (e:xeluoi-: the heaC of household o• spouse). it 1Z• =:option IAss•5:ance I AdOptjor assistanCe :av-_ ment5 in ex I oav—encs _ ss of 4480 per adopted child. III =ernily Supp:.,: � For pub,.: lousing oriv, the earnincs and benefits to any family member resulting Ac:: -come from the :artic:oation rn a Program :roviding employment training and Supportive i services - accordant_ with the Far- • the 1 3 Ac'Y Support Act of 1988, section 22 of the 1937 exusio- (43 _ :eriod. S.C. 1a37;, or any comcarable exclfederal, state or local law during the �� == :=tial Secur... ' II Deferrer :eriodic amounts from SS: and Social Security benefits that are received in __:Income I a lump s_-, amount or inective ros P P monthly amounts, =5• :--:oerty Tax I Amounts -eceived b Ref, ---::s Y r+e family in t e form of refunds or rebates understate or local law ':r property axes paid on �e dwelling unit. 16. rime Care (Amounts :aid by a state agency to a family with a member who has a 11 ."25;'200-- Assistance evelopmental disability and is livingat home uipment needed to keep this d v et the cost of services and e elopmentall isabled family member at home. 17. Other Federal Amo nu is specifically excluded b — 17. Other y any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions of 24 CFR 5.609(c) apply, including: ► The value of the allotment made under the Food Stamp Act of 1977; ► Payments received under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired Senior Volunteer Program, Foster rnpa Gadrents Program, youthful offender incarceration altematives, senior companions); ► Payments received under the Alaskan Native Claims Settlement Act; ► Payments from the disposal of funds of the Grand River Band of Ottawa Indians; ► Payments from certain submarginal U.S. land held in trust for certain Indian tribes; ► Payments, rebates or credits received under Federal Low -Income Home Energy Assistance Programs (includes any winter differentials given to the elderly); ► Payments received under the Main Indian Claims Settlement Act of 1980 (Pub. L. 96-420, 9z Stat. 1785); ► The first $2,000 of per capita shares received from judgements awarded by the Indian Claims Commission or the Court of Claims or from funds the Secretary of Interior holds in trust for an Indian tribe; ► Amounts of scholarships funded under Title IV of the Higher Education act of 1965, including awards under the Federal work-study program or under the Bureau of Indian Affairs student assistance programs, or veterans benefits; ► Payments received under Title V of the Older Americans Act (Green Thumb, Senior Aides, Older American Community Service Employment Program); ► -Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.); ► Earned income tax credit; ► The value of any child care provided or reimbursed under the Child Care and Development Block Grant Act of 1990; and ► Payments received under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for native Americans and migrant and seasonal farm workers, Job Corps, veterans employment programs, state job training programs and career intern Programs). Welfare Rent separately from the rest of the welfare assistance and may be adjusted In an "as -paid" jurisdiction, welfare assistance for housing costs is established the actual cost of the family's housing. For welfare recipients, P)s in "as -paid" jurisdictions must count the following as income based on ' the amount of general assistance the family receives, plus ' the maximum amount of housing assistance the family could receive (rather than the amount the household is actually receiving). Treatment of Assets When using the Part 5 definition of annual income, PJs must determine the 11 /25-2002 answers to thefollowing three questions regarding f�v assets: _. What should be ;ncluded as an asset? 2. How should the value of the assets be computed? I How should the actual income from assets be determined for inclusion in the annual income calculation? There is no limitation cn assets for participants in the HOME Program, though some other assistance orograms may requ:re families to "spend down" assets before they can participate. U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washincton, DC 20410 Telecnone: (202) 708-1112 "Y: (202) 708-1455 I I. 125.12100= Cha • • pter Three CALCULATING ANNUAL (GROSS) INCOME As discussed in Chapter One, the HOME Final Rule gave PJs the flexibility to choose one of three definitions of annual income to determine whether households are eligible for participation in the HOME Program. The three definitions are: annual income as defined in 24 CFR Part 5 (Part 5. annual income), annual income as reported under the Census long form for the most recent decennial census, and adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes. PJs may use more than one definition within their HOME Program in its entirety. For example, a PJ may decide to continue to use the Part 5 definition of income for its rental projects and TBRA program, and use the Census Long Form definition within its homebuyer and owner -occupied rehabilitation programs. PJs must ensure that applicants to their HOME -funded programs and activities are treated equitably. For this reason, the same income definition must be used within a particular program or activity. For example, if a PJ decides to use the Part 5 definition of annual income for its homebuyer program, it must use this definition for all applicants to the homebuyer program. It may not use the Census definition for one applicant and the Part 5 definition for another applicant. Chapter Two discussed how and when income information must be verified. This chapter provides detailed guidance about calculating annual (gross) income using each of the three allowable definitions. DEFINITION 1: ANNUAL INCOME AS DEFINED IN 24 CFR PART 5 The annual income definition found at 24 CFR Part 5 is used by a variety of Federal programs including Section 8, public housing and the Low Income Housing Tax Credit Program. Annual income is used to determine program eligibility and, in some programs, the level of assistance the household will receive. This definition was formerly commonly referred to as the Section 8 definition. The Part 5 definition of annual income is the gross amount of income of all adult household members that is anticipated to be received during the coming 12 -month period. Each of the italicized phrases in this definition is key to understanding the requirements for calculating annual income: • Gross amount. For those types of income counted, gross amounts (before any deductions have been taken) are used; • Income of all adult household members. The Part 5 definition of annual income contains income "inclusions" — types of income to be counted — and "exclusions" — types of income that are not considered (for example, income of minors); and • Anticipated to be received. The Part 5 annual income is used to determine eligibility and the amount of Federal assistance a family can receive. A PJ must, therefore, use a household's expected ability to pay, rather than past earnings, when estimating housing assistance needs. Technical Guide for Determining Income and Allowances for the HOME Program — 11 Whose Income to Count • Knowing whose income to count is as important as knowing which income to count. Under the Part 5 definition of annual income, income earned by the following groups of people is not counted: • Earned income of minors. Earned income of minors (age 17 and under) is not counted. Unearned income attributable to a minor (e.g., child support, AFDC payments and other benefits paid on behalf of a minor) is included; and Income of live-in aides. If a household includes a paid live-in aide (whether paid by the family or a social service program), the income of the live-in aide, regardless of the source, is not counted. Except under unusual circumstances, a related person can not be considered a live-in aide. Family members living apart from the family also require special consideration. • Temporarily absent family members. The income of temporarily absent family members is counted in the Part 5 definition of annual income – regardless of the amount the absent member contributes to the household. For example, a construction worker emoioyed at a temporary job on the cther side of the State earns S600 per week He keeps S200 per week for exoenses and sends 5400 per week home to his family. The entire amount (S5C0 per week) is counted in the famiiy s income: Adult students living away from home. If the adult student is counted as a T mover of the household in ce:ermining the household size (to cc:r-care against the HUD income limits,. the first 5480 of the student's income mus; be counted in the family's income Note. however, that the 5480 lima: woes not apply to a student who is the head of household or spouse (their full income must be counted); and Permanently absent family members. If a family member is permanently absent from the household (e.g., a spouse who is in a nursing home), the head of household has the choice of either counting that person as a member of the household, and including income attributable to that person as household income, or specifying that the person is no longer a member of the household. Types of Income to be Counted Exhibits 3.1 and 3.2 provide a comprehensive list of income that is included and excluded from calculations of annual income under Part 5. This list comes directly from the Federal regulations at 24 CFR 5.609. The list is periodically updated by HUD when changes are made by Congress. Program administrators generally are expected to implement changes within 60 days of publication in the Federal Register. In general, income exclusions fall into the following categories: • Benefits that should not be counted as income: Income of certain household members that should not be counted, including earned income of minors and income attributable to foster children and live-in aides: and Amounts that are counted as assets rather than income, such as lump -sum lottery winnings. Welfare Rent as Income Welfare assistance is counted as income. Most PJs will use the actual gross amount of welfare assistance the household receives. In certain "as -paid" localities, however, a special calculation is required. In an as -paid jurisdiction, welfare assistance ecnnicai Guioe for Determining Income and Allowances for the HOME Program — 12 0 • Exhibit 3.1 -- 24 CFR Part 5 Annual income Inclusions 1. FA The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness cannot be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of 55,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump -sum amount or prospective monthly amounts for the delayed start of a periodic payment (except as provided in number 14 of Income Exclusions). S. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in number 3 of Income Exclusions). 6. Welfare Assistance. If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: • the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus • the maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph is the amount resulting from one application of the percentage. 7. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling. B. All regular pay, special day and allowances of a member of the Armed Forces (except as provided in number 7 of Income Exclusions). Technical Gude for Determining Income and Allowances for the HOME Program — 13 Exhibit 3.2 — 24 CFR Part Annual• Income Exc,us�ons 1. Income from employment of chilaen (including programs with dearly defined goals and foster children) under the age of is years. 2. Payments received for the care of foster obectives, and are excluded only for the perioi durng which the family children or foster adults (usually persons with member participates in the employment -training program. disabilities, unrelated to the tenarr family, who 9: Temporary, nonrecurring, or sporadic income are unable to live alone). (IndudkV gtfts� 3. Lump -sum additions to family assets, such as 10. Recaration payments paid by a foreign inheritances, insurance payments (including govemment pursuant to claims under the laws payments under health and accidKt insurMca.; =.�'- e#:flr� goy t by Persons who were and worker's compensation), caprTal and" ,r - gairms settlement for personal or property losses Pe3912sted. dudrig.the Nazi era. 11. Earrings in excess of $480 for each full-time (except as provided in number 5 a Income Inclusions). shmnt 18 years old or older (excluding the 4. Amounts received by the family that are head of household or spouse). 12. Adeotion assistance payments in excess specifically for, or in reimbursemert of, the cost of $480 per adopted child. of medical expenses for any family member. 5. Income of a live-in aide (as defined in 13. For Dublic housing only, the earnings and 24 CFR5.403). bereft to any family member resulting from 6. The full amount of student financial assistance the M. Mcipation in a program providing empoyment training and supportive paid directly to the student or to the educational institution. services in acourdance with the Family Support Act of 7. Trie special pay to a family member serving in 1988, section 22 of the 1937 Act (43 U.S.C. 143% or any comparable federal, state the Armed Forces who is exposed .o hostile fire. or lova law during the exclusion period. 8. (a) Amounts received under training programs funded 14. Deferred periodic amounts from SSI and Social Security benefits that are received in a lump by HUD. (b) Amounts received by a person with sum amount or in prospective monthly a disability that are disrecarded for a iimited time fcr purposes of Supplemental Security amounts. 15. Amounts received by the family in the form of Income eligibility anc benefits because they are set refunds or rebates under state or local law for property taxes paid on the dwelling s;ce for use under a Plan to Attain -Self- Sufficiency (PASS). unit. 16. Amounts paid by a state agency to a family (c: Amounts received by a participant in other with a member who has a developmental diSmility and is living at home to offset the publicly assisted programs that are specifically fcr, or in cost of services and equipment needed to keep this reir..oursement of, out -of -rocket expenses incurred deve,opmentally disabled family member at (specal equipment, clothing, transportation. childcare. etc.) and home. 17. Amounts specifically excluded by trat are mace solely to a.!low parti=.abon in a sCecific procmm. any other federal statute from consideration as income for (c. Amounts received under a resicent service purposes of determining eligibility or benefits unde, a category of assistance s:: --end (as cefined in 2a CFR 5.60°(c)(8)(iv), programs that incluces assistance under any program to le Incremertal earnings and benen-iLs resulting whitcr the exclusions of 24 CFR 5.609(c) apply, tc any family member from participation in inclucing: c:.aiifying state or local employmer., training pr= -grams (inauding training not afftoated with a 9 The value of the allotment made under the Foca Stamp Act of 1977, Ictal government) and training of a .`amity memoer • Payments received under the Domestic as resident management sniff. Amounts exc:uded by this provision, Vo:unteer Service Act of 1973 (employment must be received uncer employment training through VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, Youthful offender incarceration alternatives, ��• %.a[ uiue ror uetermintrg Income and Allowances for the HOME Program —14 0 0 Exhibit 3.2 -- 24 CFR Part 5 Annual Income Exclusions (Continued) 17. • Payments received under the Alaskan Native Claims Settlement Act; • Payments from the disposal of funds of the Grand River Band of Ottawa Indians; • Payments from certain submarginal U.S. land held in trust for certain Indian tribes; • Payments, rebates or credits received under Federal Low -Income Home Energy Assistance Programs (includes any winter differentials given to the elderly); • Payments received under the Main Indian Claims Settlement Act of 1980 (Pub. L. 96- 420, 9z Stat. 1785); • The first $2,000 of per capita shares received from judgements awarded by the Indian Claims Commission or the Court of Claims or from funds the Secretary of Interior holds in trust for an Indian tribe; • Amounts of scholarships funded under Title IV of the Higher Education act of 1965, including awards under the Federal work- study program or under the Bureau of Indian Affairs student assistance programs, or veterans benefits; • Payments received under Title V of the Older Americans Act (Green Thumb, Senior Aides, Older American Community Service Employment Program); • Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the ' settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.); • Earned income tax credit; The value of any child care provided or reimbursed under the Child Care and Development Block Grant Act of 1990; and . Payments received under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for native Americans and migrant and seasonal farm workers. Job Corps, veterans employment programs, State job training programs and career intern programs). i Technical Guide for Determining Income and Allowances for the HOME Program — 15 0 for housing costs is establishec separately from the rest of the welfare assistance and may be adjusted based on the actual cost of the family's housing. For welfare recipients. Pis in as -paid jurisdictions must cou^t as inccme the amount of general assistance tne family receives plus the maxmum amount of housing assistance the family could receive (rather than the amount the household is actually receiving). Sample Format for Computing Part 5 Annual Income Exhibit 3.3 shows a sample format for computing annual income. Exnibits 3.4 through 3.' provide examples and exercises that der"onstrate how the Part 5 annual inc;me defir..:;on is applied to incividual family circumstances. Answers to the exercises are provYded in each exhibit. These exhibits ignore :cicome from assets. which is addressed be:ow. Examples and exercises ccnceming asset calculation follow tha: discussion. Treatment of Assets Scree assistance proc.�ms reo:.:re that fa. :iies "spend downassets be`ore they can pa:-:cipate. -here is r: asset limitation for pa-:cipation :n the HCYE Program. Income frc•-- assets s. howeve-. recogr.zed as par, of _-,nual income undo- the Par. 5 definition:. Tc :omply w m the Pa- 5 rules 7egarding assets, Pis must know ;1) what :o include as assets. (2) hzw to corr:ute the :-arket anc cas- value c,: hose assets, and 3) how to de:ermrne th= income 4-om the asset to be inc.-ded in arrwal ince-7e. What to Include as an Asset In :eneral te-ns. an asset is a cash or nc-:ash iter, that can o convened to cas Ex-tems tha; are and iort 3.8 s;::nmarizes ; ••. nc::o be considered a`_are gets. (Nc:e: it is the inc--me earned - e.g.• .-terest or. a savings C� a. -Count — not the asset value, that is counted it annual income.) Exhibits 3.9 through 3.11 provide examples and exercises that dwmonstrate how income from assets is caiculated. Market Value and Cash Value Assets have both a market value and a cash vaue. The market value of an asset is simply its dollar value on the open market. For example, the market value of a share of stock is :he price quoted on the stock exchange on a :articular day. A property's market value is the amount it would sell for on the open market. This may be determined by comparing the property with similar, recently sod properties. Ar asset's cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial holdings. Any penalties, fees or transaction charges levied when an asset is converted to cash are deducted from the market value to determine its cash value (e.g., penalties charged for Premature withdrawal of a certificate of deposit, the transaction fee for converting mutual funds to cash or broker fees for :onverting stocks to cash); and/or Costs for selling real property. Settlement costs, real estate transaction =ees, payment of mortgages/liens against :he property and any legal fees associated with the sale of real property are deducted from the market value to :etermine equity in real estate. Un:er the rules of Part 5, only the cash value (rat-er than the market value) of an item is cor--ted as an asset. If an asset is owned by mc-- than one person, Pis must prorate the asset according to the applicant's percentage of c.vnership. If no percentage is specified or prc•.-ded by state or local law, Pis must prorate the asset evenly among"all owners. If an asset is not effectively owned by an indi•:•dual, do not count it as an asset. -- .JuIuc jr ueiermnrng Income and Allowances for the HOME Program — 16 C: C Exhibit 3.3 -- Sample Format for Computing Part 5 Annual Income 1. Name 2. Identification ASSETS Family Member Asset Description Current Cash Value of Assets Actual Income from Assets 3. Net Cash Value of Assets ........................ 3. 4. Total Actual Income from Assets ....................................................... 4. 5. If line 3 is greater than $5,000, multiply line by (Passbook Rate) and enter results here; otherwise, leave blank. 5. ANTICIPATED ANNUAL INCOME Family i Members a. Wages/ Salaries b. Benefits/ Pensions c. Public Assistance d. Other Income e. Asset Income i I I Enter the greater of 4 or 5 from above in e. Ilines I I I I 1 6 Totals a. b. I C. I d. e. Enter ;ctal of items from 6a. through 6e. This is Annual Income ................. 7. T ecrnrncal Gwoe for Determining Income and Allowances for the HOME Program — 17 • Exhibit 3.4 - Calculating Part 5 Annual Income - Example 1 Family Members Poaftn in Age - Incorne Sources Family George Jefferson Head 53 Works f>-fte:at $7; r also receives l -- - $400tmorttR om fr ! _ - • -- - • the goVeinment-as a result of a ' seslement adie Agent Orange product liability Eloise Jefferson Spouse 48 . 7' Works ti3 hocus reek at`$:t�arik $7,50/hour, also. S5afmonth-14 from her mother to help lion I 111JI�L6X�p.,esQ z` e Jefferson Son 19 FLH-time's afLlk-CoQege.where he has a Pan -time. 1 Job in the student bookstore at $6.00/hour,for the 46 weeks when classes are in session. Under the HOME Program. the Income Limit for a family cf three in the jurisdiction is $23,900. Are the Jefferson's eligible for HOME assistance? Assume brthis example that the Jefferson's have no assets. ANTICIPATED ANNUAL INCOME Family- a.'Nages/ b.-ene-.n Member salaries=ensions George 5.080 I E)oise 13 7.020 Lione! 480 ' 3 Tota:s _22.580 b. Ic. Pubic e. Asset Ldd-Other AssistanceIncome Income Enter the I $600 greater of lines 4 or 5 Ifrom above in e. d. $600 e. N/A =ms frog- 5a thr„-_r::e. This :s AnnL=. -come ................. 17. 7.S23,180 11s = 's e!::-: :.e for asses:ante :=cause ,-:M!: Its teal inc: of S23,180 is below the Low Income Explanation :ecr:= =�cr_= - -3arnIr.:: - r- w ==::nt as ir=me. -iis income from the Agent Orange ='•'!e Func S4 300, . ear does nc:. Thus Ge ' orge s income is $7.25/hour x 40 ,curs,:,eeK x 52 NeeKS/year. cr S15.08C _Oise Eloise : 'come 4-=, wages cf 57.50/hcicr x 1 E ,curs/week x 52 weeks, or S7,020, as .veil as -er regular grt incc.ne Of S50/mcnth or 3E:0/year count as income. (The gift ;ncome .s counter; as-oth=-r ac=me.') -echnica: Guide fcr Jetermir.ir9 Ircame ana AIlowar.:es for the HOME Program —18 Lionel Because Lionel is a full-time student and is not the head of household or spouse, only the first $480 of his earnings count toward the family income. Exhibit 3.5 -- Calculating Part 5 Annual Income — Exercise =Famllj Members : Position.1n `...� .. Famlty -136che-Deverou -Head A90. income Sources 55' Rtase.'Nylen '-:4, -.friend: - 58 Dorothy Spomac , Friend 61 Works 6 hourstnight, 4 nights/week at $5.00/hour as a waitress; also eams an average of j $551night in tips. ""Eams $6.50/hour as a full-time aide in a hospital; I employer reports that her wages will increase to $6.75/hour, 7 weeks from the effective date of this calculation. Earns $60/day as a substitute teacher, and works an average of 3 days/week for the 40 weeks school is in session (she made $7,200 last year); also receives $40/month in Food I Stamps. Under the HOME Program, the Income Limit for a household of 3 is $38,500. Assuming that these are the only sources of income, does the household qualify for assistance? Complete the following table to calculate annual income (as defined in 24 CFR Part 5) for the household. Answers are found on the following page. ANTICIPATED ANNUAL INCOME Family a. Wages/ Member Salaries b. Benefits/ c. Public Pensions Assistance d. Other Income e. Asset Income Blanche I I Enter the greater of lines 4 or 5 from above in e. I Rose I I I Dorothy I I I I I I I I I I I 6. Totals I a. I b. I C. I d. I e. N/A 7 Enter total of items from 6a. through 6e. This is Annual Income ................. 7. Technical Guide for Determining Income and Allowances for the HOME Program — 19 11 0 Exhibit 3.5 — Calculating Part 5 Annual Income — Exercise (Continued) ANSWERS ANTICIPATED ANNUAL INCOME Family a. Wages/ I b.3enefrts/ Member Salaries Pensions c. Pubiz Assistance d. Other Income e. Asset Income Blanche I S17.680 Enter the greater of lines 4 or 5 from above in e. Rose ( S13.980 I Dorothy I S7.200 ! S. Totals j a. S38,860 ; b. C. d. e. N/A 7. Enter total of stems from 6a. through 6e. This is Annaal /rcome................. 7. $38,860 The hcusehold is no-, eligi-ie fcr ass:stance. Its income exceeds the Low Income Limit by $360. Explanation Blanche E:anc^e's ircome must include both wages a -d tips. (The tips are included as wage: salar: inczme. Her wace ince me is Sc 240 annually ($5.00/hour x 6 ;:curs;nigh: x 4 mights,weet x 52 weeks/year' and her tip income is 511,440 a-nuaily (555/nicht x = nicnts/week x 52 wee-,Wyear). Rose =cse s wage income mus: be calculated :- hnc steps. For the first 6 weeks of the =ar. she earns 56.5:/h0u-. Her inc-me=_t t�- s wage is $6.50/hour x 40 urswee?� x 6 wee.— = 5-.560. Fc- the -ex- 46 weeks, her wage will be �: hour Her ince ne a: this wace is S=.75_ hour x 40 hours/week x 46 weeks = 2.e-20. �crc'^y :crc:^y made _==7.2C: las, ;sear, anc :her= .s -•:) reason to expect that she will work —ore or les; o -_n it :ne :.:ming ye =.-. ir:ome is, therefore, estimated at =_.2_J. F the inc:-ie Exclusions see =xr zit 3.2), the income she receives _n =00a Star--cs is exc -bec from :;his ::Ic: ation. echn,*cal Guide :6-r Determir.:ng Irc ome and Allowances for the HOME Program — 20 Exhibit 3.6 — Calculating Part 5 Annual Income — Example ��f ; A r• : :!l :Income Sources :;1..rc Family Member a. Wages/ Salaries b. Benefits/ Pensions � .s.:•� - ='= _ s as'a rtianager in Murphy _ • wares dep_._0.mnt of the local Kmart, and.: iOQ�ri'io a1if6hild support. " '' �� IIhYeef�as a paitFtime painting ;:- -� ratt19`IOCBiSCF�ppE fOr'tf18 40 I $10,000 WYear wb 1�ert.schocA in session; attands =�"�- = : _"_ .` �• : Art Institute, - anreci)ng-dasses oaf. which. he• - �- _ ;w :ii�4J..�•i t${ate'•Stddwt:incentiveGrantof paYgmoifh in- child support for ANTICIPATED ANNUAL INCOME Family Member a. Wages/ Salaries b. Benefits/ Pensions c. Public Assistance d. Other Income e. Asset Income Murphy I $13,200 $1,200 Enter the greater of lines 4 or 5 from above in e. Eldon I $10,000 I 7 6. Totals I a. 523,200 I b. C. d. $24,400 e. N/A 7. Enter total of items from 6a. through 6e. This is Annual Income ................. 7.S24,400 This family is eligible for assistance. Its total income is $24,400, which is below the Low Income Limit. Explanation Murphy Murphy's annual wage income is 5550 semi-monthly x 24 periods/year, or S13,200. In addition, she receives $100/month x 12 months = $1,200/year. Eldon Eldon's wage income is based on 40 weeks of work: $250/week x 40 weeks/year, or $10,000 annually. His scholarship does not count as income. This'child support Eldon pays cannot be deducted from his income. Technical Guice for Determining Income and Allowances for the HOME Program — 21 Exhibit 3.7 — Calculating Part 5 Annual Income — Exercise Family Members Position In Family Ricky Ricardo Head * ' Lucy Ricardo Ricky Ricardo II Spouse Child Age Income Sources 80 Receives gross Social Security in the amount of $6251ronth: receives a pension from the local musicians' union in the amount of $25 every quarter (3 months). 79 Receives gross Social Security in the amount of $120/morrttt: grossed $4,200 for giving voice lessons last year, but paid business expenses of $1250 from this income for equipment and sound proofing. 45 Earns S33G,week as an interpreter for a local nonpraat organization. If the Low Income Limit for a household of 3 is $30,000 and the Ricardo's have no other source of income, do thev aualifv fnr aCc;cf�nnn7 Complete the following table to calculate annual income (as defined in 24 CFR Part 5) for the household. Answers are found on the following page. ANTICIPATED ANNUAL INCOME Famiiy a. Wages' b. Benefits/ c. Pubic Merr.�er Salaries � d. Other e. Asset' Pensions Assstar --e Income Income Rick.; I I I Lucy Enter the I Igreater of Ricky II I I I. lines 4 or 5 from above Iin e. 5 Tc:als a. (b. I d7• e. N/A C. i 7. E: -'=r -total c' :terns frc-I 6a thr--jgh This is Ann al lr_ ^ome................ 17. Technical Gwde fcr Determining Income and Allowarces `or the HOME Program — 22 Exhibit 3.7 — Calculating Part 5 Annual Income — Exercise (Continued) ANSWERS The household is eligible for assistance. Explanation Ricky Ricky's entire income is composed of pensions and benefits. It equals 5625/month x 12 months/year + $25/quarter x 4 quarters/year = 7,600. Lucy Lucy's benefits income is $120/month x 12 months/year, or $1,440. Her net income from her business was $4,200 - $1,250, or $2.950. (Her equipment and soundproofing expense is an allowable deduction because the business funds were reinvested in the business and did not represent expansion. Refer to Exhibit 3.1. ) Ricky II Ricky II's income is wage income. The calculation is $330/week x 52 weeks/year = 517,160. Technical Guide for Determining Income and Allowances for the HOME Program — 23 • Actual Income from Assets In gene =I, the inczme coursed is the actual income ;eneratec zy the asset (e.g., irterest on a sav ngs or c`ecking a=ount). Tr.e income s countec. even if re househcid elects r.zt to receive it. For example, trough an appii:ant may erect to reinvest the interest or dividends from an asset. !�e interest or dividencs is still cc unted as income. As with ::her types of incor. e, the inccme includes :n annual income is the incorre that is antic;,--ated to be receives from the asset during t -e coming 12 montt•s. Several methocs may be :.sed to ac, roximate ate income `om the asset. For example.:o obtain :re anticip� ed interest on a savings accour:.:he curr_-t accour. balance ;an be muitiplie: by the --Trent interest rate applica: a to the=c;.ount. =,temativeiy. if the value cf :.he account is not anticipated :o change ; the ne-=- `uture a -d the interest rate has bee- stable, a Zopy of ne IRS 1099 form showir_ oast interest eamec can be used. Many i=_s are su,_ ised to :eam that c-.ecking accour: valances as well as savings=c-count balanc=s; are cors:dered a- asset. T: -:s rule is not i-:=nded tc :punt mc-:nly incorre as an asset.:_: rather. s a recoc-:tion that some houses: cs keep _sets in -eir check: -g acco� To av= : countir; monthly -come as an =_;;e+, o� s--uld use :-e average- mont` :alance :;er a six--onth per:..,, as the ca vague c= -.ne checr. -g accou!-: Two '_pique R:.ies For —_;; asses =alcula me: -:.me troy- -e atir: gasp vai_e and See:: sset: s straigh= 0 When Assets are Disposed of at Less than Fair Market Value Applicants who dispose of assets for less than fair market value (i.e., value on the open market in an "arm's length transaction") have, in essence, voluntarily reduced their ability to afford housing. The Part 5 rules require, therefore. that any asset disposed of for less than fair market value during the two years preceding the income determination be counted as if the household still owned the asset. The amount to be included as an asset is the difference between the cash value of the asset and the amount that was actually received (if any) in the disposition of the asset. Consider the following examples. Example 1: Mr. Jones cashed in stock to give a granddaughter funds for college in August 1997. The stock had a market value of S4.500 and a broker fee of S500 was charged for the transaction. Market value S4.500 Less broker's fee 500 Cash value to be considered S4.000 The 54.000 in assets would be counted for any income determination conducted until August 1999 (looking forward two years from the time of disposal). If Mr. Jones has no other assets, no income -om as -cats would be included in annual ;ncome :ecause the cash value of the asset :s less 'r -an S5,000. If other assets brought -otal assets to more than 55.000, however. • the imputed income calculation described Previously would be required. Example 2: Mrs. Dutch "sold" a piece of property to a family member for S30,000 on July 1, 1997. The home was valued at $75,000 and had no loans against it. Market value $75,000 Less settlement costs 3,000 Less sales price 30.000 Cash value to be considered $42,000 The $42.000 would be counted as an asset for any income determination conducted until July 1, 1999. The $42.000 would be combined with the cash value of other assets (if any), and an imputed income calculation would be required. Each applicant must certify whether an asset has been disposed of for less than fair market value. Assets disposed of for less than fair market value as a result of foreclosure or bankruptcy are not included in this calculation. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be less than fair market value if the applicant receives (or received) important consideration not measurable in dollar terms. Technical Guide for Determining Income and Allowances for the HOME Program — 25 0 • Exhibit 3.8 — Part 5 Annual Income Net Family Asset Inclusions and Exclusions 1. 2 3. 4 ! 5 6 7 N1 4 10 inclusions Cash held in savings accounts. checking accounts. safe deposit boxes. nomes, etc. For savincs accounts, use the current balance. For checking accounts, use the average 6 -month balance. Cash value of revocable trusts available to the applicant. Equity in rental property or otter capital ! investments. Equity is the estmated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred ir. selling the i asset. Under HOME. equity ir the family's Primary residence is not considered in the calculation of assets for owner -occupied rehabilitation projects. i Cash value of stocks. bonds. 7reasury I bills, certificates of deposit anc money i market accounts. i Individual -etirement and Keogh accounts seven though withdrawal wou::: result in a oenalty). i getiremer: and pension funds. Cash vale= of life insurance :ncies available the individual befcre death j i -3.g., surrender value of a while life or universal ife policy). ?ersonal property held as an nvestment such as c=ms. jewe:ry, coin ccilections. ! antique c2-rs. etc. ! _ume Su– or one-time receic:s. such as .7neritanc=s. capital gams. Ic-=ry :nnnings. -,V='s restitution. -surance _=ttlemer:; and other amour:s not -tended as periodic payments. '.tortgages or deees of trust, -=!c by an -.olican;. 2. 3. 4. 5. 6. 7. Exclusions Nezessary personal property, except as no --d in number 8 of Inclusions, such as cicu ing, furniture, cars and vehicles specially equipped for persons with disaDilities. Interest in Indian trust lands. Assets not effectively owned by the apo6cant. That is, when assets are held in an individual's name, but the assets and arry ncome they earn accrue to the benefit of scmeone else who is not a member of the : ousehold and that other person is resconsible for income taxes incurred on in=rne generated by the asset. Ec -y in cooperatives in which the family lives Assets not accessible to and that provide nc it -come for the applicant. Te -i life insurance policies (i.e., where thene is no cash value). Assets that are part of an active business. "E-;Sness" does not include rental of pr-:erties that are held as an investment an: not a main occupation. Tecnn:cal Guice `or Oeterr-inmg income and Allowances for the HOME Program — 26 0 0 Exhibit 3.9 — Calculating Asset income (under Part 5) — Example Family Members Assets Juan Herrera Checking account Inheritance The HUD Passbook Rate is 2%. Asset Value $870 average 6 -month balance with an interest rate of 2.7%. Received an inheritance of $30,000 that he used to buy a new car for $12,000; pay off his $3,000 credit card bill; and open a mutual fund account (which has no associated account costs) to invest the remaining $15,000 at an annual interest rate of 5.3%. ASSETS Family Member Asset Description Current Cash Value of Assets Actual Income from Assets Juan Herrera Checking account $ 870 $ 23 Same Mutual fund $15,000 $795 i 3. Net Cash Value of Assets ........................ 3.S15,870 4. $818 4. Total Actual Income from Assets ............................... ......................... 5. If line 3 is greater than 55,000, multiply line by 2% (Passbook Rate) and enter results here; otherwise, leave blank. 5. $317 The asset income to be used in the annual income calculation is 5818. Explanation Checking account The income from the checking account is calculated based on the 6 - month balance and the interest rate (5870 x .027 = $23). Inheritance A car owned for personal use is not considered an asset. However, the mutual fund is an asset. 515.000 x .053 = 5795. Because the total cash value of the assets exceeds $5,000. the HUD Passbook Rate must be usec :o calculate the imputed income from all assets combined. In this case. $15.870 x .02 = 5317 The actual income earned is greater, however, so that amount must be used in the calculation of annual income for this family. Technical Guide for Determining Income and Allowances for the HOME Program — 27 0 0 Exhibit 3.10 — Calculating Asset Income (under Part 5) — Exercise Family Members Position Age Family Assets Asset Value in Family Archie Bunker Head 72 Checkinc $595 average 6 -month balance in Edith Bunker Spouse 73 account Savings a non interest-bearing account. $2,695 at 3.1 % HUD Passbook rate is 2%. account Calculate the Bunkers' asset income by completing me frllowing chart. Answers are provided on the following page. ASSETS Family C.:rrer: Cash Value Member Asse: Description c` Assets I � 3. Net Cash Value of ,"'ssets....................... 3. 4. ; otai Acral Income fron Assets.......... 5 line 3 is greaser t -an S5.00:. mu .iply line cv (Passbook 15. Rase) and e-:er , =sults here. o:-erwise. leave t ank Asset 1 --or.-_ to ce used it a.nr-al ir.-cme calc..iatic-: S Actual Income from Assets Tecnnicai "';'ulce for Ceter^mmc income ar.-. All for the HOME Program — 28 • 9 Exhibit 3.10 — Calculating Asset Income — Exercise (Continued) ANSWERS ASSETS Family Member Asset Description Current Cash Value of Assets Actual Income from Assets Archie Bunker Checking account $ 595 $ 0 Edith Bunker Savings account $2,695 $84 3. Net Cash Value of Assets ......................... 3. $3,290 4.$84 4. Total Actual Income from Assets........................................................ 5. If line 3 is greater than $5,000, multiply line by 20/6 (Passbook Rate) and enter results here; otherwise, leave blank. 5.$ 0 The Bunkers' income from assets is $84. Explanation Use the actual income in this case, because the cash va!ue of the Bunker's total assets is less tnan S5.000. The imputed income is only calculated for assets when the total cash value of all assets exceeds $5,000. Tecnrncal Guide for Determining Income and Allowances for the HOME Program — 29 0 • Exhibit 3.11 — Calculating Asset Income (under Part 5) — Exercise Family Position in Age Family Assets Asset Value Members Family Actual Income from Assets Fred Mertz Head 85 Rental property Small rental property that grosses $6,50ayear (expenses to keep up the propery are $3,400/year). The property I has a fair market value of $69,000, but they have a mortgage on the property in the amount of $35,000. The average :et Cas- /aiue of=ssets.. ......... .... 13. closing cost in a real estate transaction ' -otal Ac: -al Incorre from Assets.... is 8% in the area. Ethel Mertz Spouse 8? Savings Savings of $5,000 that earned $179 in account interest during the past year. Stock 100 shares of stock in "Why Buy it, Inc.," with a ace value of $4.25 per share, that have not shown a dividend in years. The coast to sell the stock would be about 1-76. HUD Passbook rate is 2%. Caiculate the Mertz' asset inccr-e by completing the =ollowinc chart. Answers are provided on the following page. ASSETS Far y Mer-:er Asse: Description C_Tent Cash Value of Assets Actual Income from Assets � I I I ' I I :et Cas- /aiue of=ssets.. ......... .... 13. ' -otal Ac: -al Incorre from Assets.... ` line 3 = ;coater :-an S5.0'- multipi•v line by (Pass=ook -=:e) anc =-:er resp :: nere: c:-erwise. eave blanc 5. =sset Inc -:-e to be ___d in ar%al incor-e calculati--1: $ T_::irncal Gt::ce for Determining Income and A.;.-wances frr the HOME Program — 30 0 ... 0 Exhibit 3.11 – Calculating Asset Income – Exercise (Continued) ANSWERS ASSETS Family Member Asset Description Current Cash Value of Assets Actual Income from Assets Fred Mertz Rental property $28,480 $3,100 Ethel Mertz Savings account $ 5,000 $ 179 Same Stock $ 349 3. Net Cash Value of Assets ........................ 3.$33,829 4.$3,279 4. Total Actual Income from Assets........................................................ 5. If line 3 is greater than $5,000, multiply line by 2% (Passbook Rate) and enter results here; otherwise, leave blank. 5-$ 677 The Mertz' income from assets is $3,279. Explanation Apartment Building The cash value of the property is: Market value $69,000 Less mortgage 35,000 Less sales costs 5.520 Cash value $28,480 The income earned is the net income (S6,500 - $3,400) of S3,100. Savings Account The information is provided. Stock The cash value of the stock is the sales proceeds (100 shares x 54.25/share = $425) less the cost to sell ($76). It generates no dividend income. Because the total cash value of the assets exceeds 55,000, calculate the imputed income by multiplying the cash value by the HUD Passbook Rate ($33,829 x .02 = 5677). This is less than the actual income earned of $3,279. Technical Guide for Determining Income and Allowances for the HOME Program — 31 0 0 EXHIBIT F HUD HO1IEONV ERSHIP aSSIST.kNCE PROJECT SET-UP AND PROJECT COMPLETION REPORTS Homeownership Assistanceo U -s. Department of Housing 110OMB Approval No. 25062506-01,71and Urban Development Rental Housing Orrice of (Exp. 01/31/2002) Project Set -Up Report Community Planning and Development Home Program Cash & Management Information System Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions. searching existing data sources. gathering and maintaining the data needed. and completing and reviewing the collection of information. This agency may not conduct or sponsor. and a person is not required to respond to. a collection information unless that collecton displays a valid OMB control number. The HOME statute imooses a significant number of data collection and reporting requirements. This includes information on assisted properties. on the owners or tenants of the properties, and on other programmatic areas. The information will be used: 1) to assist HOME participants in managing their programs: 2) to track performance of participants in meeting fund commitment and expenditure deadlines; 3) to permit HUD to determine whether each participant meets the HOME statutory income targeting and affordability requirements; and 4) to permit HUD to determine compliance with other statutory and regulatory program requirements. This data collection is authorized under Title II of the Cranston -Gonzalez National Affordable Housing Act or related authorities. Access to Federal grant funds is contingent on the reporting of certain project -specific data elements. Records of informationcollected will be maintained by the recipients of the assistance. Information on activities and expenditures of grant funds is public information and is generally available for disclosure. Recipients are responsible for ensuring confidentiality when public disclosure is not required. Note: Complete for all Homeownership Assistance/Rental Housing Projects Check the prior to project set-uo and send the completed form to: Appropriate Sox HOME PROGRAM. P.O. Box 23997, L'Enfant Plaza Station, Washington, D.C. 20026. r7Original Submission rlChange Owners Address tOwnership Transfer � Revision Part A: Call -In Part A must be called into HUD to set up project accounts. This completed form must be submitted to-, immediately 1. Project Number i 2. Name of Participant i6. HOME Funds for Project after project set-up call. a. Total Funds Requested f S 3. Panicipar.: Tax ID Nun :er 14.CHDO Tax ID Number D. Participant Number c. Duller Amount of Funds I IS I ' S. Type of Project is (3) — Acouisition Only (5) j Substantial Rehabilitation (d) _ Moderate Reraoilitation (6) = New Construction I IS 8. Name & Prone Numoe .reluding Area Code) of person eompteting form I 19. CHDO Loan IS (1);� Yes f (2): No Is — 1 17. Total Estimated Cost of Project (HOME -assisted units. including Is other public/private funds) Part B: Project Information 1 Stree! Access o!=rcie-• _ tb. State Ic. zip Code i '•ame cr r,,n,. as as; Name 20. First Name Mr ; M • -'aiiinC Ac:•ess of Vwne• a Za 3b. State 3c. Zip Code -none Ur: -:e Area ::? a Name of Firm lit abpncabte) I Yoe of Ownorsmn irnn . (11 Individual (2) �• Parnership (31 = Corporation •dt _• Not -for -Profit 51 Publicly -Owned •9) _ Other 5. Total Units in Project 16. Estimated Units 17. Total HOME -Assisted Prior to Assistance I Ij Upon Completion i Units Upon Completion 9 Tenure Type (Cheer one box only) i t0. Complete for Community 1 t . County Code (1), Rental Housing Development t (to be co d byOrganization Projects Centralized States(t) Homeownership First -Time Buyer ' (check one box) (3)_ Homeownership Rehabilitation only) OF—I Owned I (2)'" Sponsored (3)!7 Developed Page 1 of 4 form MUD -40094 (12/92) Part C: Household Characteristics. Co. o< -e Ilre for eat:n uni: to pe assstec with HOME to is a 2-a unit owner occupied vzlE� with re_• al u-ts. PrLmoe Enter one code only in each block. If project comdete a sezarare rouser le �araae�stics P ,.. toehold cnaraaerstl; t fer xch occupied unit. For projects which Include multiple addresses. Part ,, for sa= •adaress. Note: CT: no: Wmplete for new construction projects Pfolec: •tdaress i Project Numoer - - •s •-a:ar:g T er— a? �tesT 1 -:omit D-ta Unr, No. c• 'errant NC BeortlD—s CCuparTc� %Taution 5.csla MJnlnty 4346 '-Of ata Toa+ Pent . Incor-e Neper; o. of 3ec-ours ooe Bev-• 3 3e=•::•ns __:TTS ___ -s -e�2- -ara- `. of Area Neer ---de . 50 • is •. acan: _ "ead of �:Lsenole =ooe '•aCK -•-:'+:r Icl '.alive -;,,-e, • . aslanr13711=:1c LaMer --•soane alt :est scan: of: Size of Type of old Household ! Household l i l I Sura of Ho.senend Type of Household Code Cane T Oers:r I • Singtemon-Eloeny 2- Eloeny 2 • 2 oersz•s 3 . Retaled/Singte 3 - 3 Persrs Parent e 4 Persrs 4- Related/ 5 • 5 Persa-s Two Parent 6 • 6 Perso-s 5- Other ' Perso•s 9 • Vacant unit a • 3 or mot Oersons 9- Vaunt na f i B 0 Rental Assistance Rental A,selatanee Code "'t-'Sectiona 2 - HOME TBA 3 - Other 4 - NOAssislanCe 9 . Vacant unit Page 2 of a form HUD -40094 (12,92) Instructions for Completing the Homeownership Assistance / Rental Housing Project Set -Up Report, form HUD -40094, HOME Program Cash & Management Information System Read the instructions for each item carefully before completing the report form. Use a typewriter or print carefully with a ball point pen. Prepare an original and one copy. Retain a copy and mail the original to: HOME Program P.O. Box 23997 L'Eafant Plaza Station Washington. DC 20026 Applicability. This report form must be completed for each homeown. ership or rental housing project assisted with HOME funds. Timing. Complete the project set-up report form before calling the HUD Voice Response System (VRS) to set up a project in the HOME C/MI System. This completed report form must be sent to HUD immedi- ately after the project set-up can. If the project set-up report form is not received within 20 days of the project set-up call. the project will be automatically canceled by the HOME C/MI System. A report form must be received by HUD before funds may be drawn down for a project. An amended set-up report form should be submitted if a project is revised or if HOME funding for the protect is increased or decreased and the change should be hichliehted in yellow. Part A: Call -In. Part A must be called in to the HUD VRS to set up a project. The completed form must be submitted to HUD immediately after the project set-up call. 1. Project Number. Enter the 10-dieit project number assigned by the HUD VRS at the completion of the project set-up call. 2. Name of Participant. Enter the name of the participating jurisdiction -PJ). or. in the case of State recipient projects, the name of the State recipient tidentified on the HUD-40100—State Designation of Local Recipients forms. 3. Participant Tax ID Number. Enter the Tax (Employer) Identification Number for ine particioatme jurisdiction from block3 of the Funding Aoprovai and HOME Inyes;ment Partnership Agreement (HUD -40093); :or a State rec:ptent prole::. enter the State recipient's Tax ID Number :rom the HUD•40IOCLSiate Designation of Local Recipients form. 4. CHDO Tax ID Number. Complete oniv for projects assisted with :_nds reser.;,,: for Comr%nny Housing Development Organizations CHDOs, Enter the Tax ,Emplover) Identification Number for the 1HD0 s m%r, in the De2:2nauon of Community Housing Develop- meni Ogmniz::tions (CHDO, form (H(. -D-40098). :. Type of Project. Check one box to indicate the type of project set-up -:5ed on thr r'oilo%%in_• cc.initions' Use of (1) and (2) has been .::�contrnue" „ ;: result c: statuton changes eliminating the rental :mdu:twr. sc:•asidc i :..acquisition Only. •%couistnon of a structure that recei%ed a 0,:upanc:. _. east 13 months before acquisition, w ich %nan1i;;_:iun and which will be used to provide or homcu•anership housing . Moderate Rehabilitation. The a%eraee per unit total rehabilita- -1,; .Hr'ix:_ :und, .in\ other :undsi of the HONIE•assisted -':t, in the :mice: i, S2:.000 or less --no the project is any ro ecu ^. pair or 'DrO,•emen: of residential unites) to bring un;t, „ u.:, :n: rn,r: standards rewired bs 2-1 reconti:ur_iiun tit J',tr:::cure to reduce the total nits 9n order d(tto .'crc3se the numoer of large family units. (c) adding a room or rooms _.. beuroom or o3throom, outside the --xisting walls for purposes of rr.eetine tic:uparc,. or code standards. td) the adding of a unit or units wnhir. the existing structure. and (e) the acoursnron of 3 structure that .:::!ved 3 cer:::irate of occupancy at !cast 13 months before acoutsi- :::n. hrc^ rc;_:re% rehabiiiration and which will be used to provide 2::OrdaDle rental nousing or homeownership units. Page 3 or 4 (S). Substantial Rehabilitation. The average per unit total rehabili. tation cost (HOME funds plus any other funds) of the HOME -assisted units in the project exceeds 525.000 per unit and the rehabilitation is otherwise consistent with the definition of rehabilitation of residential Property as defined above in 5.(4). (6). New Construction. Anv project involving (a) adding units outside the existing walls of the structure, (b) the construction of a new residential unit(s), (c) the acquisition of land or the demolition of an existing structure for the purpose of constructing a new structure with HOME funds. and (d) acquisition of a structure that has received an initial certificate of occupancy within a one-year period prior to acquisition. NOTE: When projects combine new construction in one building(s) with rehabilitation activities in another building(s) on one parcel of land, the projects, by type of activity (i.e.. rehabilitation or new construction), must be administratively set up as separate projects in the HOME CM System. 6. HOME Funds for Project. a. Enter the total amount of HOME funds requested for the project. b. Enter the participant number for each grant and fiscal year source of HOME funds committed for the project. c. Indicate the amount of HOME funds from each fiscal year by participant number. 7. Total Estimated Cost of Project (HOME -assisted units, including other public/private fonds). Enter the total estimated cost (hard and soft costs) for the HOME -assisted units in the project, including other public/private funds. (Do not include costs attributable to units in the project that are not HOME -assisted units.) 8. Name & Phone Number (Including Area Code) of Person Complet- ing Form. Enter the name and phone number, including area code. of the person to contact for further information regarding this report form. 9. CHDO Loan. Complete only for projects assisted with funds reserved for Community Housing Development Organizations (CHDOs). Check ..Yes" if this is a project -specific technical assistance and site control loan or a project -specific seed money loan. NOTE: When setting up a CHDO loan. the PJ should set up the project initially to include only the CHDO loan and complete parts A and B of this report form. If the project is amended to add more CHDO loan funds. the PJ should check ..yes." If the PJ proceeds with the project. the project may be amended to add additional HOME funds to the project. If the project is later amended to add funds for rehabilitation or new construction. etc.. the PJ would check "no- in block 9. If the project is amended to add additional funds and/or the project moves forward, the PJ must submit an amended HUD -40094 and must complete pan C. If the project does not go forward, a completion report form (HUD -40096 or HUD-I(W7) is required. Part B: Project Information I. Street Address of Project. Self-explanatory. -. Name of Owner. For projects containing rental units, enter the name of the owner. For single -unit homeownership projects, enter "NA" for not applicable. 3. Mailing Address of Owner. For projects containing rental units. indicate the mailing address of the owner. For single -unit homeown- ership projects, enter "NA" for not applicable. 1. Name of Firm. For projects containing rental units, if the project is owned by a firm or other organization, enter the name of the firm or organization. Enter the firm address in Item 3 above. For single -unit homeownership projects and other projects which are not owned by a firm, enter "NA" for not applicable. form HUD4094 02/92) S. Total Units in Project Poor to ,Js� Enter "-v total num>r of urtiL in the 7-*oject (both-•3titE.assiste:.•td '-• _(• 50 Percent of Area Median means nog-HOS=-assisted t=s►. 6. Estimated Units Upon CompletioL Enter a household whose income e:.:;,eds 30 pc int and does not exceed 50 percent of the median th::otal esdr-iced number of ==its that w-:: be in the -:iect upon f_:ily income for the area. as determined by HUD, with adjustments ::rnpletion :Sith HOME-ass-sed and nor.-asst: _ fm smaller aric larger families. units). .. Total HOME-Amisted Ucm Upon Co=letion- En= _he total 3• Sf• • 60 Percets: of Area Median means a household whose income n=cer of units (u*W:: compledo: :',cat will HOME s:stanC- e: xeds 50 per-crit and does not exceed 60 percent of the median S. Type of Owmership. Ch=k f_,.tly income �r the area, as determined by HUD, with adjustments one box :_iv. for smaller and :arger families. 9. Tenure T%pe- Check or: _,ox only. F::: - s unit a::•ects cont: •_c¢ 4. 6f - 80 Percent of Area Median both an ow-:r occupant _d rental ut::: s:, check be ::2) or (3). For 3 or more means a household whose income e%=ds 60 per int and does not exceed 80 percent of the u.:: projects cc=:wining an c+:;er occupar-:;ad rental =s. check box ,:.. (NOTE: (` � median fa=ily income for the area, as determined by �D' "itch adjustments will aff_- w which co._ ietion res P� t for smaller and :3r er families. g required upca completto_: Hotsctold Data 10. Commun& Housing De-elopment O; ,aaization ?rojects. C;m. Race•- thnicity - Head of Household: plete only f;: projects z<s;ced with _;s reserve: for Comm=:: Housing De::iopment Orzizadons For each occupied residential unit, enter me code onl% based on the following definitions: tC-Mos Ch:..: one box o--'V'. I. R ate, Not Hispanic 11. County Code. Tobe comp:=-d only for- .. "'saliz� St_ projr-s. �_- Origin, q person having origins in any of the or.=nal peoples of Europe, the 3-digit wunry code for : e county i:: uch the pr,-xc is locate: North Africa, or the Middle East, but not of _:ispanic ori=. Part C. Household Charaeeristics- Provide inform:_on on the :racteristics :: each hou=old (renter 2, Mimic. Not Hispanic Origin. A person having origins in any of the blaa racial groL?s of Africa, but zr owner) occupyit:_ a unit to be issisted wit` HOME funa Complete ice not of Hispanic origin. 3. Na-Ye AmericwL line for each urs:-.:o be assisEr: with HONCE :.rnds. Enter ane code o--'v in :a:h block. 1: A person having origins in any of the original pep-ies of the tick American Continent, -e project is :: to 4 unit ; :=er-occupi•::ental pros__ provide charact:-;tics for to-a.:s and who maintains cultural ide_-�fication though tribal affiliations or as well _far the owrr If the un:::; O=:Dted. come::::Astor all boxes informal:,-= community recognition. 4. or Pacific Islander. :s not ava_:_ le, enter "= " If a unit is unoc:_:ted. enter _: number. _=oer ofbei rums. and A person having origins in any of the orpal peoples :f the Far East. Southeast Asia, the Indian t;_ rem. Do not complete for ne- construcnooprojects subconti- ne= or the Pae:Yc Islands. This area includes, for example, China, UnitNumber. :-:.rental uniu; :tier the ur_:::mixr of Ins-. Japan, Kc.--a. the Philippine Islands, and Samoa. e_a unit ttiac w _: retrive HOME assistance. S- HiCanic, A person of Mexican, Puerto Rican, Cuban, Central Number of Bedrooms. Enter: for singles :,-t Otis an-:.SRO s - or So= American -r other Spanish culture or origin, regardless of race. unit for :f riciency u-:: t _ufor _ .^ groomss, ? f:r 3 bedroo =:<. ! for 1 bem. ? i. 9- Vatsnt Unit. S:df-explanatory. 4 for : bedroorm.. orad = for _ :: more bed-.:ms. Sue of Household. =W the appropriate numberof in Occupant}. E-:::: if the ur.::.s occupies 7.n a teant.:.(:t is oe:ur::_ b% the household: 1.2. a• 6, 7, or 8 z more Persons (for households lds of more than 8, enter 8). a aomeowne:. _id 9 if it Is -cant.Type of Household: For each residential unit, enter one .Nlonthly Rent including Unties). code only based on the :allowing de`zidons: Tenant Cuntribc:)on. For -, -:owners.:::: 0. For ::-iris 1• Sin:e/11ion-Elderiy. One person household in which enter ac:_:. rent to it,: -rarest doll_ .ncludintt_ _ .ries. paid : :he tenni.::: the person is not ' th:::.^_ HOME _- ; were cc---toted to t-a ::ole_:. If _ .:enart's r::: doe- -o; :nciuc: •:he Eloe:i}'• One or ::o person household with a person at least 6= _::litres. o. : tenar,: rent mcluz:. oniv utt!::::,, e.g.. he:- :;it not ele:-::tv, these ::v costs be adder: of zz:. years 3. Rei::ed/Sin 1 g e Parent. In:::-: Use 2:•-: costs or :he unlit% _ :writ sc::•ale vrovie:_ n` :_::pial pu' =1ous:no € A single parent household with a dependent chi,: or children :$ years old or P - w1 ^ fe - Ai: -_::.%, ;'or- T::_ :Punisher _lit young:r). 4. Relzed/I'wo parent. A two parent household with _ es ant ::-er Service: 5uh;id, Amoun: = it nomec- a dependent child or ::..dren (18 :;: sold or younger). ::s. eater( = :r re::ers "' the = no_: P=: --': lu: S. Oth::. Any hour: hold that is not included in the above an, utt.:. tn: ant to tr.: :ares: doll_ the •t definitions. In:..::ng two of -ore unrelated individuals. .._.. ;un_ _ :a.% menu.. _• _ - 9. Vaei:c Unit. S:.:-explanatory. Tut,,, Rent. Fi,: - -:nw ger::- :: 0 For r: • rs e-s:r t:• t al 'Ont- Pa•.-:-• Rental Usistance: :-:or rental units, enter one code only to indicate the type ••- ,. S Amour. c: _;istance pe:-g provided to the tenant, or that no assistance is being %mt :,,r %acant _ las' tier -�-;• ::: habitab.:.-:t ' °lino- =::.tded, or t.:--:`the unit is vacant at the time of project set-up. L:.-: T.xal R: Jim.^,n of ::en; herr.; _.ec �. the -ler. Vac n` - ' 'nor°'tan°- =�t:. 1. Sect::n S. Tenar,:c receiving assistance through the Section 8 Cenift- cat= 'ogram •' •: in "Toil. = :-; coiurr ncume Data. unoe: 24 CFR part 882 or the Section 8 Housing Voucher Progn-m under 2; ZFR part 887 2. Iunthl% Gross ipc')me. En,.!- -: month:. =ass ,Ouse::: income. Hs0` = Tenant-Sued Rental Assistance. Tenants receiving rental ercent of Area yledian. For :::h occupte:-:sidenuai .:.:. enter on: 3. Othe: Assistance. Tenants�receiv .ide :ni, based c- :ore follow::.: Jetinitior._ g rental assistance 0 - 30 Percent of area 'vlecun means 2 -::sehold through other Fede , State or vocal rental assistance programs, including rental w:.: income :: at :r be!uw 3( ::rent Of ;-r -edian fa: .:ncome f:- ne area. assis=ce pay me=s through programs administered by the U.S. DepE= unt of He?-:h a; o:::r:ritned b, -I-D. with ac .:;meats for -:Iler and _-:r families and Human Services or through departments of socia. cervices in States. .t, No Assistance and 9. Vacant Unit_ c-ir_-__._____ Pave 4 of 4 --.r....... W. r. form HUD -40094 (12/92) Homeownership Assistance U.S. Department of Housing 9 OMB APcrova) No. 1/31/ 0171 Project Completion Report and urban Development Office of Community(Exe. 01/31/2002,'and Development Planning Home Program Cash and Management Information System Instructions: For Homeownership First -Time Homebuyer Rehabilitation Assistance projects, MarkgppropriateBox submit this form not later than 120 days after the final draw and mail the original copy to: Home Program, P.O. Box 23997, L'Enfant Plaza Station, Washington, D.C. 20026. !'1 Original Submission I Revision PartA: Project Information 1. Protect Numoer i 2. Name of Participant Participant Tax 10 Numper ; a. CH00 Tax Ip Number i S.Name d Phone Numoer (including area cone) of person completing this form I6. Type of Properly (ttxteck one) (�) 1-4 Single Family (3) . I Cooperative I (2) Condominium (4) i_I Manufactured Home Part B: Financial Structure of Project Type of Activity Financea (checx one► 0) Rehabilitation Only (3) ` Acquisition Only (2) _ New Construction Only (4)! i Acquisition & Rehabilitation (5)� Acquisition &New Construction Project Costs U - l . + wnra rums ill (Comoiete Direct Loan aporoonate items -__, (1)-15)) (21 Grant Is (31 I Annual Interest Rate monlzation Period Payment Loan (DPLj ; S I yrs. (s, Community Housing Development Organization (CHDO) Loan a. TA Loan is I Annual Interest Rate j Amonizatt on Period I yrs. i � I I Seed Loan is i i Total CHDO Loan (Total items 4a A ab) 15. S Otner S Total Home Funds (Total Items (1) - (5)) Flumic FUn05 F s Otner Feeeral Funds I S Stale.'Loca: Appropriated Funds S S:a!e%Loca: Tax Exempt Bond Proceeds Is Total Public Funds (Total Items (1) - (3)) , rtvc:3 s -ur=s '•i-vate Loan Funds Annual interest Rate Amontzaiton Period : s oe , Yrs. Owner Cas. Contribution I5 Pnvale Grants j S I Total Private Funds (Total Items (1) - (31) is HOME_ Program Income Total Project Costs Total items 1 • a) I $ s Page —1of 2 form HUD -40096 (6193) Part C: Financial Assistance to Homecuw Note: Complete for first brie fvmebuwrro s P 1 cts only. I. initial Purchase Price _ is 2. Appraised Value Is 3. Tc:al HOME F;;nds 'or DoN-tp2: nen: Assistance (sun of ata) + 31z, . 31=) + 3(d, is (a A --tel -i"st Rate Amorttzatron z. Direc: Loar ° Gran: e (Cf Deferred Paymer:: Loan (d) Other s. HOME Program fncor. a for owr`zaymert Assistance Is s. Tota: HOME Furs fcr Down-_ayr-ant Assistance (hems 3.4) Part D: Complete for homeownership rehabilitationro' is P ►acts only, After Rerabilitazon Value _. Sir.:te Family M_-rtga;e Lim, - I s r �s Part E:Household Characteristics Con t-43 fir~ line `z- the unit to be oc; .Died t ;: an owner. FII out the second (thirti/fourth lin for the rents: uni::51, if a y. =or an :'oCC_Died :-it. ter u-- number, number :f bec =oms and total reit and "9" as instructed. e(s) 'rotec:.address � Project Number M i No.: s Jn:: T3attts on.... Rer. nclutsrn; T ena't Parc :_renes Tera- Nncorrr Data No No 3edro:-; _ °• G�saeC' ore - Sr=i ..ontr.:_,on Amy_; a' �Monthrr Gross • •.: of 43a Race/ead of Head E:hcer; • -� • ...s '-n e M In=— Boar ofml of Size of Househocd t 6o-- 2 • ' - i Household 260--: .;car,. 3Bo^_ 4BCr-- 7• �Cr1 Evrz 1 -White 2 -30 • _40% 2 -Black 3 -5L - -0•e 3 -Native 4 -Sr • 50°e Amer. 4 -Asian /Islander 5 -Hispanic 9 -Vacant 11- t Person 12.2Pertions 13-3Petsoris 14-414arsons Is • SPersol 16-612ersons 7 - 7 Pers= i8.8ormore !9 -vacant Head of Household I 1 • Since' f'b"efty 12- BMW 13. Ralatey *-ileParent :4. Relataty Patent 15- Ora i 9 • vacant Rentat ! Assistance i 1 -Section 8 2-HOMETBA :3 -Other Assistance 4 -No Assistance 9 -Vacant Page 2 of 2 form HUD -40096 (6/93) Public reporting burden for this collection of info,.an is estimated to average 45 minutes per responseAneuding the time forreviewing ins!r 'ons, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the coltection of information.. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number. The HOME statute imposes a significant number of data collection and reporting requirements. This includes information on assisted properties. on the owners or tenants of the properties. and on other programmatic areas. The information will be used: 1) to assist HOME participants in managing their programs: 2) to track performance of participants in meeting fund commitment and expenditure deadlines; 3) to permit HUD to determine whether each participant meets the HOME statutory income targeting and affordability requirements: and 4) to permit HUD to determine compliance with other statutory and regulatory am requirements. This data collection is authorized under Title II of the Cranston -Gonzalez National Affordable Housing Act or related authorities. Access to Federal grant funds is contingent on the reporting of certain project -specific data elements. Records of information collected will be maintained by the recipients of the assistance. Information on activities and expenditures of grant funds is public information and is responsible for ensuring confidentiality when public disclosure is not required. generally available for disclosure. Recipients are yes- A uLvuvns ror c;ompleting the Homeownership Assistance Project Completion Report Form HUD -40096, HOME Program Cash and Management Information (C/MI) System Read the instructions for each item carefully before completing the (1) 1-4 Single Family form. Use a typewriter or print carefully with a ball point pen. Prepare an original and one copy. Retain the copy. (2) Condominium Mail the original to: (3) Cooperative HOME Program, P.O. Box 23997, L'Enfant Plaza Station, (4) Manufactured Home Washington, DC 20026. Part B: Financial Structure of Project Applicability. This report must be completed for each homeowner- 1. Type of Activity Financed. Mark only one of the 5 available boxes occupied single family project and for a property with one owner for naming the project's HOME -assisted activity. occupant and zero to three rental units. Note: Completion of a project (1) Rehabilitation Only. AHOME-assisted rehabilitation project with two or more homeowners should be reported on the multiple -unit that did not include acquisition of real property. Such projects Homeownership Project Completion Report. Such a project would also include two duplex properties each occupied by a homeowner may have involved the unit(s) up to the Property standards require units) to brinmprovement Of g d but where the two progenies are considered as one project. Timing. The Homeownership Assistance Project Completion Repoli by 24 CFR 92.251;(b) the reconfiguration of a structure to must be received by HUD within 120 days of requesting the final reduce the total units in order to increase the number of large disbursement of HOME funds for the project. If the project completion family units, (c) the addition of a room or rooms (e.g., bedroom report is not received within 120 days of the final disbursement for the orbathroom) outside the existing walls forpurposes of meeting project, the Pi's (or State Recipient's) access to the HOME C/MI occupancy or code standards and (d) the adding of a unit or units within the existing structure. System will be suspended until the report is received and processed (2) New Construction Onl An in the HOME C/Mt System. An amended completion report should be y' s Project that involved (aj the addition submitted when all units initially reported vacant are occupied and the tion of units outside the existing walls of the structure and (b) the construction of a new residential unit(s)- Note: When change should be highlighted in yellow. projects have combined new construction in one building(s) Part A: Project Information with rehabilitation activities in another building(s) on one Iprcel Pro Project Number. Winter the 10 -digit project number assigned by ora new f land , the ionjects, by type of activity (i.e. rehabilitation the HUD VRS durir,c project set-up.. )separate Projects must be administratively set up as the _. Ml System. Name of Participant. Enter the name of the participating jurisdic- (3) Acquisition Only'nAcqu HOME on of/a structure that received tion (PJ), or. for State recipient protects, the name of the State certificate of occupancy at least 13 months before acquisition, recipient (identified on the HUD -40100 -State Designation of State which did not require rehabilitation and which is being used Recipients form). 10 e affordable Participant Tax ID Number. Enter the Tax (Employer) Identifica- (4) Acquisition and Rehabilitation. housing. tion Numoer for the participating jurisdiction from block 3 of the tion. AHOME-assisted rehabilita- tion A,:Crovai and HOME Investment Partnership Agreement tion project which included the acquisition of real property. (!-IUD-:0091): lo- a State recipient (5) Acquisition and New Construction. A HOME -assisted new P orojec;. enter the State recipients -ax ID Number from the HUD -401 00 --State Designs construction Project which included the acquisition of real I of State Rec,dien:s form, Prop rty. his includes acquisition of a structure that has received an al CHDO Tax ID Number. Complete only for projects assisted with period prior tolacquisition certificate of Occupancy within a one year tunas reserved for Community Housing Development Organiza- Project Costs. Include all HOME funds used for the tions (Cr -'DO;, Enter:ne Tax (Employer) Identification Number for other funds the CHDO snowy, i the Designation of Community Housing a project and all Development Organizations (CHDO) form (HUD -40098. (Pte fin and private) with one exception. Do not double g count, If private funds are used for construction. financing and those Name & Phone Number of Person Completing Form. Enter the Report allIater HOME funds expended on the unds are replaced y permanent financing, do not report both. name and phone number, including area code, of the person to regulations specifically prohibit paying back HOME funds with HOME contact for further information regarding this report form. funds.) For funds other than HOME, to the extentProject. (Note. Federal choice must Type of Property. Check one box to indicate the type of property made to avoid double counting, report permanent financing rates assisted. than construction financing. The total amount reported on line 5 of Part ------------- instructions Page 1 of 3 form HUD640096 (6/93) B should .e the total xst of the p- ect- - I funds repc.,ed in the tock titled 7:3_21 HOME ds (Total-:gmOME (2) Owner CashIntrSibutions. Enter the amount of all cash (5)-) of P_- B must e:ual he tot= amount C- (} contrib_aons provided by the project owner. y.ursed by ne C/MI System fc-:his projec. !3) Private Grants. Enter the amount Of cash contributions 1. HOME Funds. Ir ---,de HOM= :rogram in=me on line -' below Provide: by private Organizations, foundations, donors, etc. titled '=OME Pro; 3m Income' only. G: got incluDe HOME otal Private Funds. Enter the total of items (1) through (3) as the progra- income it :ny of the- •:owing 5 --.ME catec:-es. amoun: of Private Funds expended on this project. (1) Direct Loan. E-:erthe amo_ : of HOME _,ds provi°__ forthis 4' HOME Program Income. Enterthe total amount of funds provided prc.ect in the fc- of a direr. can. Enter -e loan's intern '°T HOME income. Note: Exclude all program income repre- ar.: amortizatic- Deriod. If -ere are m::ole loans. enter he senting ho-eowner downpayment assistance, which is entered interest rate ar.::enn of the argent loa- =nder PAF.- C, Line 4, 'HOME Program Income". (2) Grant. Enter the amount of -]ME funds _. S. Total Project Cost. Enterthe sum of totals forHOME funds, Public rer a t. nt r the mo nts. (Neta: u g--:7 may wi--cut any 'unds and P-vate funds and HOME Program Income. recce the prir.�al amour---orrowed. a or ncy a be -sed to �e above items 1 through 4.) g (Totals from uction pa%-ent, or tt-.e effective ;-=rest rate. _- interes: subsidy Pa- C. Financal Assistance to Homebuyer pay-ent, on a ---vatety oric-ated loan: CO-olete Pan : for first-time homebuyer projects only. (3) Deferred Payment Loan (DPL). Enter -e amount c= -TOME 1 - nitial Purctase price. Enter the price paid by the first-' fur.:; provided --Dugh loans where pav-ent of princ:al and -omebuyer or the property as evidenced on the deed of trust no ee inte•est is defer. s until a fir;;.=time and _ erthe ince =st rate 2. appraised anc :mortizatic- :eriod. if ar,. A DPL is _-me times roiled a Appraised Value. Enter the estimated a cor.:.;,onal gray: e.g., repay -ant is requ � when the :rojec; -Parr. value after any is s: C. or is for ---;en if the cw-er Coes n_ sell the 3 -OME Funes for Downpayment Assistance. Enter the amount a s:=cified nur.:er of year. :r y � repa rte- P °f Rnnc�� and r_g�t for J HOME Pram funds, if provided as downpayment assis- inte-e;t -_ starts a -e- the bank " any, _ n is repa•--. =nce to the lomebuyer according to the following 4 categories: (4) Community Hosing Deve=oment Or�nization iCHD0 Note: Do -ot include HOME funds provided as construction Loar_ ) `..ancing. H_ -ME funds provided as construction financing should a. 'hnical As; stance(T- Loan. _ -e report° n Pan B of this form.) For definitions of the four }r the ar-:..;rt of . _tegories. -qer to the description of HOME funds in Part B. 0ME funs :-ovided as ::HDO TA an for the : ect. -eierence 2= ]FR 92.3C- a). j er Direct Lin b. =e -ed Mone-. -oar.. En:= -:h =� Grant e amo:: of HOM= ;rnds :':video as --.400 see: :an for the :�jer.. Re-=- once = Deferrec Payment Loan OFR 92.=:•(b). -:1 Other TotalC-]O Loan. _-:ertnetote :',heamo:-enterec:-::ted 4. `]ME Program Income. Enter the amount of HOME Program on -__ne .b. •-:Dme provi:ed as downpayment assistance to the homebuyer (5) Othe- =-ter ;-_ :ta; amo:-• of HOM= -' Y• Note: ]o not double count. sut5 :. IUn -'Ids prov.:_: for _ dine -at ;s otr.e• :nar. the -e cf lota-.:•ant 5• :Tal HOME Funds for Downpayment Assistance. Enter the ass -• %e icer,: :: jr.:ne a::.e items :.-ed as (1) 7 -:ugh (4) =_-Dunt of -DME Program funds provided as downpayment Total HC�.t� Funds. _-ter ;ne t,-*-- :f items i -rough fc _ :he "'stance t:- :ne homebuyer (items 3 and 4). Par.:. Homeownership Rehabilitation Projects Only .1Cs expo -:e(] Cr the lets. The-�rmation = _ Public F_ -ds. =-te - _ -quested below pertains only to those projects that Dict<s r' _ have :een checr,=q in Pan B of this form puoi,c f- _ •o�=_ a:-'- : of as rehabilitation only ex_e =::n :-Is . _ assist_: r ac,,- ion or = olec:. anD =habilitation. Y as ill Othe•=e°eral FL-:s.=xc'Y -HOM ;n,� _ •: 'Ds exoe':=: on 1 • _ ser Rehabi.:.ation Value. Enterthe dollar value of the property. r2l State -:cal A dollar v=_ _e is the appraised value of the property before PP=:riated Fu-:;• e-_bilitatior :,us the total rehabilitation cost (i.e. all materials, i3 State -:cal Tax Bort=roceeds ;_::lies and .-or costs directly related to the rehabilitation of th Tcta: P : . _ . as = Tota ;ter -.s (, - ",':erty). e amc_-. _: = _ _ ouS" (�� __ .�e 2 S.- le Fa ''-xPe ==D on :h;:: ojeC; H mils Mortgage Limit. Enter the applicable section Private F_ -:os. 2.. b) FHA r.:rtgage limit. If a higher limit has been authorized (1) Priva:e loan Fun-s.=^tertne f -iOME for ,our jurisdiction, enter that higher limit. Ourt Df a; :•:ne costs,: prole -a: nave :- ca,O w.- prole:- •- :ncs Dt:: -ed from �..,_te Part = Househad Characteristics imar.: = such as :_-<s. savor= and loans. and COM., ere the firs; ne for the unit to be occupied by an owner. Fill out creD�: _-;ons. an:: �^ter ;he -Crest rate :--d amort; -:on the send (third --unh) line(s) for the rental unit(s), if any. F or an pent:: • :ne soar. - •-ere are -.::DIC (cans -ter ;he ir.:;•est unoc-::ied unit, e- rate ::e,- Of ;-: ;ryes: Ica- (0o not =:_Die coun:. rent ar- • - ter unit number, number of bedrooms and total _ 9 as ins -acted. insrn:: crs Page 2 c: 3 form HUD40096 (6/93) Project Address &Project Number. En& property. Also enter the 10 -digit project number assigned si e address (or if no unique street address, the unit number) of the HOME -assisted adjusted incom seeds 60 percent and does not exceed 30 the Percent of the median family income for the area, as deter - HUD VRS at the completion of the project set-up call. This number mined by HUD with adjustments for smaller and larger fami- should be the same as that entered in Part A, Block #1. lies. Unit Number. Enter the unit number of each unit assisted with HOME Ho usehold Data funds. Race/Ethn city -Head of Household: Foreach occupied residen- Number of Bedrooms. Enter "0" for a single room occupancy (SRO) 1 tial unit, enter one code only based on the following definitions: White, origins in any of unit or for an efficiency unit, 1 for 1 bedroom, 2 for 2 bedrooms, 3 the original peop es niof urrope. North Africa orot Hispac Origin. A Persongthe Middle East, for 3 bearooms. 4 for 4 bedrooms, and 5 for 5 or more bedrooms. but not of Hispanic origin. Occupancy. Enter 1 if the unit is occupied by a tenant, 2 if it is occupied 2. Black, Not Hispanic Origin. A person having origins in any of by a homeowner, and 9 if it is vacant. the black racial groups of Africa, but not of Hispanic origin. Owner/Tenant in Project prior to the HOME assistance. Enter 1, if 3. Native American. A person having origins in any of the the tenant was residing in the project priorto the HOME assistance. original peoples of the North American Continent and who Enter 2, if the tenant was not residing in the project prior to the maintains cultural identification through tribal affiliations or HOME assistance. community recognition. Monthly Rent (Including Utilities). 4. Asian or Pacific Islander. A person having origins in any of the original es of the Far East, Southeast Asia, the Tenant Contribution. For homeowners, enter 0. For tenants, enter subcontinent, otthe Pacific Islands. For example: China, t nd an the actual rent to the nearest dollar, including utilities, paid by the Japan, Korea, the Philippine Islands and Samoa. tenant at the time of project completion. If the rent includes utilities, 5. Hispanic. A person of Mexican. Puerto Rican, Cuban, Central or if the rent includes partial utilities, e.g., heat, but not electricity, or South American or other Spanish culture or origin, regard - these utility costs must be added to the rent. Compute utility costs less of race. for the area , and in the case of partial utilities, compute costs for 9. Vacant Unit. Self-explanatory. utilities excluded from the rent), by using the utility allowance Size of Household. Enter the appropriate number of persons in the accordance with form HUD -52667, Allowance for Tenant schedule provided by the local Public Housing Authorit PHA in Y ( ) ' household: l , 2, 3, 5, . 7, 8 more persons (for households Fur- nished Utilities and Other Services. of more than 8, enter 8). Enter for 9 for a vacant unit. Type of Household: For each residential unit, enter one code only Subsidy Amount. For homeowner, enter O. For tenant, enter the amount that the tenant receives as a rent subsidybased on the following definitions: ing any utility allowances paid directly to the tenant) to the nearest 1 Single/is n t elderly. One person household in which the dollar. If the tenant 3oes not receive a tenant subsidy Person is not elderly. enter "O". Y Payment, 2. Elderly. One or two person household with a person at least Total Rent. =nter ;rte ; 62 years of age. oral monthly rent (tenant contribution plus 3• Related/Single Parent. A single parent household with a subsicy Renta Enter . Income Data. dependent child or children (18 years old or younger). 4. Related/Two Parent. A two parent household with a depen- Monthly Gross Income. Enter the monthly gross household dent child or children (18 years old or younger). income. 5. Other. Any household not included in the above 4 definitions, Percent of Area Median. For each occupied residential unit, enter including two or more unrelated individuals. one cone only Dasea on the following definitions: 9• Vacant Unit. Self-explanatory. 1. 0-30=ercent c` Area Median means a household whose Rental Assistance: Enter one code only to indicate the type of aojusted :r;ccme ,5 at or below 30 percent of the median family income :=r .rte assistance, if any, being provided to the tenant. ='_=. as determines by HUD with adjustments for sma 1e 1 • Section 8. Tenants receiving Section 8 assistance through the an:: ;anger families. 30-50=eSection 8 Certificate Program under 24 CFR part 882 or the 2. rcer!: Ci Area Meaian means a household whose Section 8 Housing Voucher Program under 24 CFRan 887. n=� " exceeas 30 percent and noes not exceed 50 2. HOME Tenant Based Rental Assistance. Tenants receiving P °erre'• ;ne ne-man family inc-"me for the area. as peter- HOME tenant -based assistance. m,inec cv HUD w::^ adjustments for smaller and larger fami- 3. Other Assistance. Tenants receiving rental assistance nes 3. 50-60 =e:c through other Federal, State or local rental assistance pro - en; c. Area Medan means a household whose adjustec ;ncome exceeas 50 percent and does not exceed 60 grams. percen, =f :he meman family income for the area, as deter. 9. Vacant Unit.e. No cSelf--explanaatoryory m;nea Dy HUD wan adjustments for smaller and larger fami- lies. -. 60-80 Percent of Area Median means a household whose instructions Page 3 of 3 form HUD -40096 (6093) i EXMBIT .;, ENNIRONN ENTAL REVIV-V RECORD (ERR) Cat:_,,rical Ex:.lsion Detem::-ation of _:emptior. 1,q OF • • G CATEGORICAL EXCLUSION (aot subject to 58.5) 24 C.F.R. 58.35 (b) 200 I hereby certify that the following activities comprising the Program have been reviewed and determined Categorical Excluded Activity per 24 C.F.R. 58.35 (b) as follows: (1) Tenant -based rental assistance; (?) Supportive services including, but not limited to, health care, housing services, permanent housing placement, day care, nutritional services, short -tern payments for rent/mortgage/utility costs, and assistance in gaining access to local, State, Federal government benefits and services; (3) Operation costs, including but not limited to, equipment purchases, inventory financing, interest subsidy, operation expenses and similar costs to associated with construction or expansion of existing operation; (4) Economic development activities, including but not limited to, equipment purchases, inventory financing, interest subsidy, operating expenses and similar costs not associated with construction or expansion of existing operations; (5) Activities to assist home ownership of existing "new dwelling units not assisted with Federal funds including closing costs and down payment assistance to home buyers interest buy downs and similar activities that result in the transfer of title to a property; (6) Affordable housing pre -development costs including legal, consulting developer and other costs related to obtaining site options, project financing, administrative costs and fees for loan commitments, zoning approvals, and other related activities which do not have a physical impact. Documentation indicating compliance with 24 C.F.R. § 58.6 attached (when applicable). Signature E DETER-NUNATION OF EXTMPTION (24 C.F.R. § -;,S _ 4) -0 I l::rebv cert that he--ollon:,10 :cavities comprisir.: the P-ogram ha : e been re%iewed and d!:emmined an Exempt Activity per 24 C.F.R. 3 5-S.34 (a) as '0110 -S: (1) E--jviror_ne:.tel ar.; other studies, resource identification and the development of plans and -=ate Q, (2) L**ormazon _nd i=,anc:al serlices: (3)) Adminiszarve arc mx-riagement activities: (4) P'_blic Sen:. -es thar « it not have a physizal impact or result in any physical change, including eT_t not mi �,d to �n�ces concerned wit;. e�-iovment, crime prevention, child care, health, sg al: tee. ;�-duca.on. counseling, energy :or=ervation and welfare or recreational needs; (S) L-pecrons z. -id te_�n-e of properties for ?,.:zags or defects; (6) Pizrcha_se of =sur_-ce: (i) P=cha.:,e of :dols: (s) L:vine:-ng •3r des:g-n costs: l91 T in g: tral:, t r=ori : or =ermarenti,:.ro-•'_ments that do not alter environmental are ::n•::.d to protecnon. ria:- or restoration activities necessary COMM -r a..,;t t* CO:-om di;asters.:rn inent threats or physical deterioratiion to me-: of --nc:-:; inwest or, loam m-:, : or obligation guaranteed by HUD: • :'� --*-::y of -xclus:ins ll;ted I: ; - 35 (a) provided that there are not �elId require comF:::r;: With any other Federal laws and authorities ..td In -5.5 rTr: ar` _-C. - R. ; - `.= =. b). -o fur=er ap_-oN•_: form from HUD or the :or :- e drr•.vdC �:;t o: _rc_ :o =Dlen:ent tl^:: :)r,- p. -am. State is He .: rNer.::,z - ;po-::bl::ntt-L; .-rlt::: ;till "ocurnent ir. -.%-r7ng Its compliance with and/or actreq_::er....Its ]i;t at : 53.6. 51 -an a r:re EXHIBIT H HARRIS COUNTY'S AFFIRMATIVE MARKETING POLICY AND PROCEDURES This affirmative marketing policy pertains to all Office of Housing and Economic Development (OHED) and all CHDOs receiving HOME program funds for HUD -assisted housing containing five or more units. OHED will annually assess the affirmative marketing program to determine its success and will take any necessary corrective actions. The affirmative marketing requirements and procedures include the following: I. OHED will use the Equal Housing Opportunity logotype and/or slogan in all press releases or notices to the public or solicitations pertaining to housing of more than five units. 2. OHED will notify the local Houston Community Housing Resource Board on an annual basis Of its commitment to an affirmative marketing program. 3. OHED will require owners of HUD -assisted housing of five or more units to adhere to the following: a) When advertising or listing vacancies, owners must use major and community newspapers, community contacts and Equal Housing Opportunity logotypes or slogan. Owners must also display the Fair Housing poster in high traffic areas on the premises of the assisted housing. b) Owners must perform special outreach to persons in the housing market area who are not likely to apply for the housing without special outreach. Targets of special outreach could include community centers, places of worship, employment centers, housing counseling aeencies. etc. c) OHED will assess the results of efforts taken by the owners to affirmatively market the housing units. Copies of all materials used to affirmatively market the housing and records describing actions taken by the owner to affirmatively market the housing must be submitted to the OHED or on a quarterly basis. The quarterly report must also include information o families residing within the property. The family information must include the following: the number of units and monthly rent (utilities included) by bedroom size; number of tenants remaining in place; size of household and for each head of household, age, race, sec, and °ender. firm d) OHED %%-ill assess the success of the affirmative marketing marketing efforts do not result in attracting eligible persons from all racial, ethnefforts. If the af I ic and ve gender -groups in the housing market area, OHED and will determine the necessary corrective actions. Owners that fail to comply with affirmative marketing requirements will face the possibility that housing assistance payments will be abate until corrective action is taken. If the owner fails to take corrective action in a timely manner, the remainder of the rehabilitation loan will be due and payable upon demand. 0 0 EXHIBIT I CONFLICT OF INTEREST DISCLOSI;RE [F VO CONFLICTS E\IST. COMPLETE THE FOLLO��'ING: ❑ i ;e ify that -e nrlic. of ::::_--est ex::_ :,nveen Harris Counry I�Jme of Orraa�--:: ------------------ I ce:?ify char n o _ ------------- - .onflicta Merest !x:; s between t o subco==_ctors of and . IF THERE IS A CONFLICT. COMPLETE THE FOLLOWING: I ce afy that = :"aflict of '.:Crest rices _list betwee= Harris _ ':--inti and (.I. z -n at- Organ) --m.= .......----- cenafy ..- that _ :"nflict of •--e _ ---- ---------- - rest dces z, :xist benvee= (XJ -r 3(subconc-:.- and Desc—.he the ;,a:_ -e of the or inte-e= below: ?;:ase identifj• indi%ic_, e pole --al cont::::: -heir af= ::_-;n with "'C'.:.-?rgan:=_.:-' )• mPioYment, and the conflict or Signature of.%uth —,-i i •IL Da .S \'ame end Title 0 • EXHIBIT J REGULATION REFERENCE INFORMATION 1. 24 C.F.R. § 92- 2. 24 C.F.R. § 92.203 (b)- 3. 24 C.F.R. § 92.205(a)(1)- 4. 24 C.F.R. § 92.206- 5. 24 C.F.R. § 92.206(d)(6)- 6. 24 C.F.R. § 92.207 (b)- 7. 24 C.F.R. § 92.208- 10 12, 13. 14. 15. 16. 17. 18. 19. 20. 21. 24 C.F.R. Part 35 24 C.F.R. § 85.43 24 C.F.R. § 92.217 24 C.F.R. § 92.218- 24 C.F.R. § 92.220- 24 C.F.R. § 92.251- 24 C.F.R. Part 8 24 C.F.R. Part 3280 24�- HOME Investment Partnerships Program Final Rule Income Determinations Eligible Activities: General Eligible Project Cost Relate Soft Cost- Staff and overhead Eligible Administrative and. Planning Costs -Staff and Overhead Eligible Community Housing Development Organization CHDO-operating expense and capacity building costs Suspension/ Termination Income Targeting: Homeownership Matching Contribution Requirements Form of Matching Contribution Property Standards C.F.R. § 92._4 (a)- 24 C.F.R. § 92.254 (a)(4)- Qualification as Affordable Housing: Homeownership Periods of Affordability 24 C.F.R. § 92.254(a)(5)(ii)- Resale and Recapture 24 C.F.R. § 92.257- Religious Organization 24 C.F.R. § 92.351- OMB Circular A-110- Affirmative Marketing, Minority Outreach Program OMB Circular A-122- Uniform Administrative Requirements for Grants and Final Revision of OMB Circular A-122" Cost 24 C.F.R. § 85.32 Principles For Non Profit Organizations Subpart K of 24 C.F.R. Part 927 Program Administration 23. 73 24 C.F.R. § 92.505- 24 C.F.R. § 92.508- Applicability of Uniform .-administrative Requirements 24. 25. 24 C.F.R. § 92.503- 24 Recordkeeping Program Income, Repayment and Recaptured Funds C.F.R. § 85.;1 Disposal of Property 26. 24 C.F.R. § 85.32 Property Ownership/Revert 27. OXIB Circular A-110, Subpart C- Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, -'S• 24 C.F.R. § 92.3)50- Hospital and Other Non -Profit Organization- Post Award Requirements 24 C.F.R. § 92.353- Other Federal Requirements Displacement, Relocation 10 30. ?4 C.F.R. § 92.354- and Acquisition Labor 31. '_-t C.F.R. § 92.356- Conflict of Interest 3'• �4 C.F.R. § 92.355- Lead -Based Paint 33. 34. 24 C.F.R. § 58.3:(b) Categorical Exclusion 24 C.F.R. § 58.34 Determination of Exemption E.)MIBIT K GRIE` �.. CE PROCEDURE EQC:kL OPPORTUNITY IS THE L A«' This Grantee is prohibited fror_. discrimina ng on Me ground of race, color, religion, sex, national orica. age, c;sabilitN, political affiliation or belief, and for beneficiaries only, citizenship or particip-ion in - ro3ams A:.nded unser the Home Investment Partnerships o Investment P-g•am (HOME) R:_ulations, a:missior ar access to. opportunity or treatment in, e:nployme::t in the acminis activity. tr�on of or ir. connec :on with, an. i HOME funded program or ac If you think that you have been stbiected to discrimi7-ition under a HOME funded program or activit<. you may file a :ortplain: withm 180 % ays fror_ the date of he alleged violation with the Grartee's Eq..:.al Opporr=:i;Y Offi:er f or the pe -son des:mated for this purpose). If "•ou elect nie you::omplai_t with the Grantee. -sou must gait until the Grantee issues a decision or ur;1 90 days have paszec. which2.-zr is sooner. If the Grantee has not provided you with a wn'tten decision xithin 9,: dans of the filing c: the complaint, you need not wait for a decision to be issued, `_,L: may 11e a comriaint «•i- the Office of Housing and Economic De—elopment's (OHED i Director within 30 Lvs of the expiration of the 90 day period. If you are cissatisfie;: %11th the Grantee'; resolution of your complaint, you may file a complaint with a desi_mate hea=i2 board. _Such c::nrlaint mustbe file: within 30 days of the date you received notice of the C-antee's =--oosed -eso*wtion. Gran:ee Cont-::: Off:e of Hous:n_ and E:;::omic Oe%-Clopmen: (OI:_=D) . Mor:La Cisne. =.:ual Or-c—unit,. Dficer 841,_. Lantern ?:)lnr Hou_:on. Tex_; __054 Tele one: (--1;-0--- 0 GRIEVANCE INFORMATION FORM PLEASE PRINT OR TYPE ALL INFORMATION I. Complainant: Please provide the following information concerning the person or organization filing the complaint. Social Security Number: Name: Telephone Number(s): Address: Home: Work: II. Action Complained of: Please describe in detail the action(s) that you are complaining about. (Attach additional pages if necessary) Do you believe that your complaint involves a violation of the HOME regulations, the HOME grant or other agreement under the HOME Act? _ Yes _ No If Yes, please reference the provision(s) violated: III. Responcent(s): Please name the person(s) or organization(s) that you believe to be responsible for the action(s) that you complained about: Name(s r Addres:i s): Explain how each Respondent is responsible for the action(s) that you are complaining about:(�:zach additional pages if necessary) Complainant's Signature Date 0 0 COMPLAINT PROCESS Purpose. This complaint process pre -.-:des for :.ie prompt re%iew and =suitable disposition of complaints alleging viola*ons of the HOME These procedures are use.: ,v the Oil ce of Housing and Economic Development (OHED) and'-,, all of i_ contractors and or su'cr �ipients. General Policv 1. A compiaiat, as pec: =sized by tLis process. is defined a an indix -:dual or organization's allegation of a vioistion of: t ..- HUME -:.;-ulations::.Ze Counn's contract reith the Department of Housing . and Urban Develop-ent: and OHED cor._acts andcr subrecipients. A complaint must be filed within one year of=e all occurrence. 2. The person or organtion filing a compl :nt will be =:e from re-zraint, coercion, discrimination, or reprisai. Compl:`ts are not considered as reflec a unfavorally on either the complainant or manage^eat. but a.= :o be considered the expression 3.a lawful naght. Comr:aints not covered bv-=•s nroce.-4 - 1. Comp12:-:_ allegir_ 31scrirrt_-:-ion beca:_e of disa:: ty, race.:olor, national origin, age, sex, religion. political -_-=:iation ei relief, retLiation, ar.•_ citizenship must be filed within 180 days from the ,are of the 22eged d_:.-nminatior_ The corr:aint must .e filed using the Department of Housing Labor, D- ::orate c_' Civil RiQ_'�. Compl=t Informazon Form. This complaint form may be obtained from any HOME Proje:: Monitor. ar by contacting OHED Equal Opportunity Officer. 2. All info=.anon and --omplai invol%in= allegatior_ of fraud, ause, or other criminal activity shall be reported d:-e::l}• and _=stediatel .o OHED _: ( 713) 74* -)131. 3. Compla= that do allege :.solation ��: he Act. Proce_ -e 1. Panicir_._ are er•::"_.-aged -tsolve cc -plaints ir_:-nally by alking with the contractor and/ or subr:_:psent. H:::�e-. i:. ^arricipar: 'ecides tc :ursue a c'cmplaint formally, the complaint :rust be s_'--mirted :: -.)HED:-. �:e manse- described -!:ow. ?. ine co-=:atnant first :: , \%Tine-. stoned ec=iaint %vit= :he OHED Complaint Officer. i ^e co-=:atnantstmu_-.eously p_sue resoi_-on of the complaint through the internal :ompla= =rocedL:7=i of :he Ing or Moving :-_::tution %%,---e the complainant is stationed or thio;:;= :: a fede _. or ;tate mc., ha•.:n; jurisd::-on over tht substance of the complaint. Pon re:e::x of t:-_ :.)m:)Iai-:OHEI;.:he comp'_= ant \%•ill ':z provided written notification ::tat the :,.:.plain: -_ been -!:awed ar ::ie time*,-::';! under %%'rich it will be processed. The :ompla:-_-: has t=: -: to _ =caring %%•:::n 30 da.•. = of the rece:pt of the complaint by OHED. T -he co -::_int oft::'- will a -=-or to re.:= an in resolumm of the complaint prior to the : anng -:z ent;-_ : )mpiat-:--oc;;; -;: be torr:.: -ed within 50 calendar days of the receipt the :. 7.atnt b: ::iED. Recipient Office of: -;__z -.ng and c:::omte De•.e.:?ment (OH,_D) `.lontca C:--. Equal 0=e-untn• 0---:- X41 0 i`X410 Lante- ?oint .7uston.. -x� 77051-. -none : i' -.i;-013:• 7D: (713)6::. -?95 EXHIBIT L HARRIS COUNTY INSPECTION REPORT SINGO-FANIII-y HOME LNISPECTIONIV REPORT ADDRESS OF PROPERTY: Year Build: EXTERIOR General: Presence of :souse numbers. House r._mber mu;z be visible fnm street. Presence & operation of doorbel or door knocker. Accessibilirv: - Accessi�:iity porches. decks ,i;`. d_-.veways. IC.",.eck fc- su-biliry in steps & hv..drails. Presence of ,andr�is. broken sidewalks. P—"Isenc;! of GFCI outdoor rez-eptacles on new con_truction. (Foundation: T%pe of-oundation &: nv ij=e'u'arities in :ounda=on. Itsiab. pie --beam. ac:e;;ibilir-• cr_:kins I ... tilatio-l. ;Site Drainage: �Oi,terve _;e :rainage pmern of &- entire p-operm. IThe oroc-, ;hould ;iev awav frcm all side_ of the bui;-dins. .3juin2/tsr1ck: Lt-t�iilc-_ c: exte- .ails c- hc-e. a ,�e 0 �.- • c re_ -::es ---•• cr..: s .- bnc ....:ssing :Jc:.. rotted M: ..-_ ��; �. -;,: soffit: -... d -e cc -sic_. Roof Exterior: -: _'?i c• -:,..'. pro==.-=nc'_• �_::ors. c�•.;- 71 _-.ashir.: SINGLPFAMILY DOME INSPECTION REPORT EXTERIOR Fencing (yes or no) Observe overall conditions. Check for stability of fence system, type of fence system. Inspect wood fences for suns of rot or insect infestations. Inspect metal fences for rust. inspect gates operation & their associated hardwareo erable. Exterior Doors: All doors leading to the outside & into the garage must be either metal or solid core. All doors leading to the outside & into the garage must have deadbolts & locksets. If the deadbolt is within 3' of a window, the deadbolt must be double cylinder. All doors must operate properly. Storm doors must be operable Windows: Check for operable, lockable & screened windows. Check for broken glass; check for rotted wood around windows; wood around windows: check the window material; check for signs of window leaks. Whether burglar bars are present. Exist,ne burglar alarm system. SINGL91FAN LF HOME P1 SPEC'IZON REPORT UN17ERIOR Hallway: am irregularities jr, she--trock wa:is & --,iLnes. Tvpe & any irregularities in floorine. Op -ration of light fixtur`s. Presence of sufficient electrical outlets. Any exposed wiring. Presence & oreration of smoke detector. Livina Room: ";� - ..:.::::-z;•-.,��; ::�: AnY irregularities in sheetrock wal:s & ceilines. Type & any irregularldes in Hoon -re. Operation of light fixtures. I Presence of sufficient elec ica] ou:.lets. — — Presence & oreration of smoke del=tor. —'—'- Fireplace: door/screen Operation of dampe-. -- Operation of gas ligh;.er & valve. Presence o o` iet & t�Tt of valve-olde-;iomes) Hitchen: :rregu;ari:::s in °.•airs & ceiiin-;. Tvpe & ar,: :n floc+ in = Ope-_[;on c: P72s:7;c,- o` e+e::rical guttas ne_- e: 0o'73[IOr. Jf GFCI Conc:[lon c.:_:,Inets & :ounte-oP; :'.Ot/co:d to-.:,-_ ,r. alves. di spc__. P a^t- oat '::'anz)r. buil:.;,- p-=s n de SINGLIFAMILY HOME INSP • EMON REPORT INTERIOR Bath 1: Anv irregularities in sheetrock walls & ceilings. Type & any irregularities in floorine. Operation of light fixtures. Presence of sufficient electrical outlets near water source; presence & operation of GFCI receptacles. Condition & presence of mirror, cabinets & countertops. Operation & stability of toilet. Presence of leaks -around toilet. Operation of lavatory sink. Presence of leaks around sink (hot/cold water, shut-off valves). Condition of bathtub & tub surround (hot/cold water, bath faucet, drain. overflow, showerhead). Presence of unventilated gas wall heaters. Presence of vent fan or window. Presence & ooeration of door. Bedroom 1: Any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. Type of light fixtures. Presence of sufficient electrical outlets. Any exposed wiring. Presence of :inset: operation of closet door. Presence & operation of door. Presence & ooeration of smoke detector. • ._ •, - '',"rte+:. � ;i•�:. :.e r' ..- SNA FAMMY HONIE INSPECTION REPORT IWERIOR Bath_: AnY i-eaulariues in shee,-ock waI:_ & ceili;.__s. Type & any itre_ularities tit floorir.:. Operation of ]i_at fixtures. Presence of suf-.dent elecmcal outleis near water source: I resence & ope.stion of G=CI rece::acles. Condition & presence of u_ror, ca:nets &countertops. Opera: on & staMity of toilet. Preser.:e of leaks, around tcilet. Operation of lavatory sink. Presen:e of leaks, around;; ik (hoti:-Ad water. shut-off v—alves). Condi::on of ba-"htub & tuic surrourc (hot/col,.- water, bath faucet. drain. overflow. ShowerheZd). Presence of unventilated gas wall h:_ters. Preset::e of ver:: fan or window. Prese-:;! & oDe =!ion of door. Bedroom 2: An. t,:eQulant::; in shee-cck wall: & ceilings. Type & any ires::larities - :Zoorins. Opera:: )n of 112-: fixture:. Type:' hsht fi ::_res. Prese-:: of sur:.::ent ele::7::a1 out.' --:S. .fin% e%.,osed W77C. Pres.;-:= of clot=:: opera;::- of clot=: door: Prese-:= & ope-_::on of d::-. Pr,se-:e & oDe-_::on of s -:lie dete::Dr. SINGFAMILY HOME INSPECTION • REPORT INTERIOR Bedroom 3: Any irregularities in sheetrock walls & ceilings. Type &- any irregularities in flooring. Operation of light fixtures. Type of light fixtures. Presence of sufficient electrical outlets. Anv exposed wiring. Presence of closet; operation of closet door. Presence & operation of door. Presence & operation of smoke detector. Bedroom 4: _ Anv irregularities in sheetrock walls & ceilings. Type R any irregularities in flooring. Operation of light fixtures. Type of light fixtures. Presence of sufficient electrical outlets. Anv exposed wiring. Presence of closet: operation of closet door. Presence c operation of door. Presence operation of smoke detector. Attic: Type of access to attic. Operation of pull down stairway. Presence &- tvpe of insulation. \Vhethe- exposed piping is insulated. Whether plumbing vents extend thru roof. Any missing_ structural/frame requirements. Roof leak:. SLN.GL%- AM .Y HOME INSPECTIOV REPO RT GARAGE Garage: Anv irregularities in sheetrock walls & ce:lin� (some garages may not have sheetrock on exterior walls'.. Type & anv irregularities in flooring. I Presence of sufficient electrical outlets near water source: presence & operation of GFCI receptacles. I Any Any exposed wiring. Operation/condition of overhead garage doors & openers. Presence of pull down stairway. & operation of smoke detector. UtilitV room/laundry area: An%, irregularities in sheetrock walls & cei.in_Qs. Tvuz & anv irregularities in flooring. Operation of light fixtures. - I Presence of laundry piumbtng connections. r Presence of gas jet & r% -De of val�•e. Ventilanon on dr -ver. Presence of sufficient eiectrical outlets. presence & operation of GFCI receptacles. Presence of cabinet. I An-, exposed wir.ng. Pr�ser�e & operl:ion C: sr -oke detec:or. Main�e Electrical Panel: To: �ervizz (under=70U.id. above _=rour.'►. ;he:h?-' ',V a7:; .,:.ead. 'o,& mast meet c --d- .eQuiremenr_ proton.-! of -ounding Cep..:-- -�; pL-e; ._ seg_. Surf- C^._... pr::er,._ of :-.:c, pane: - C _.... - m:__:n=- 007L:::: & ��e-_:nor. _ --gel ;+c �. c, er. - SINGLPFAMILY HOME INSPECTION REPORT HVAC (HVAC Compressor: Check for presence of a/c compressor disconnect adjacent to unit: required unless_ feet from main service electrical panel. Check for presence of a/c drain line. Compressor must be elevated on a sturdy flat surface (concrete or wood). HVAC System: Location of unit. Whether unit is eas or electric. Age of unit. Cut off switch. (required on new construction). Any exposed wirin.g. Location of thermostat. Ventilation piping routing & termination. Gas supply line shut off. v Type & condition of ductwork. WATER HEATER Water Heater: Locationof unit. Whether unit is gas or electric. Size of unit. Whether unit is eievated. Proper plumbing connections on unit. Proper e!ectnca! --onnections on unit. Proper eas conne=tion on unit. Presence & prope- installation of drain line. Proper %entino on unit. Temperature pressure relief valve installed. IrreQul•�:ties - burner assembly/flame/heating unit. If water heater is :n a separate room by itself.r Is the door to the -oom vented? Is the floor perrn::nent? If water heater in a separate room of home (ext), is door lockable? SINGLOAMILY HOME INSPECTION RMORT PRIVATE & PUBLIC SEWAGE (Private Water Wells: Location of pump. Operation/performance/pressure switches. TTrne of storase equipment. On -Site Sewerage Facilities: Type of system. Anv accessible/visible tank(s) or components. AnY visible effluent seepage over tanks. Any visible effluent seepage over fields. � Proper site drainage in system area distance in feet from: water well, cisterns, supply lines, streams, ponds, lakes. building I property lines. easements. etc. . If new system. check with County Health Dept for permits. DETACHED STRUCTURES (Detached Structures: Treat detached structures as a separate unit. Check foundation. roofing. siding. rick. windows, doors. electrical ser _:e &_ Dlumbine. FIREPLACE & CHENINEY Fireplace S chimney: Wh�-:: is the :h=ne% strut:ure mad: of^ Che: , fc�r nir^„� cap.-ooe- flas=:no ch:. :iney cricket EXHIBIT M BUILDER'S CERTIFICATION 0 0 CERTIFICATION OF ENERGY CONSERVATION STANDARDS -------------------------------------------- Property Address ---------------------------------------- -------------- Buyer I hereby certify that improvements constructed on the above captioned Property meet or exceed the energy conservation standards of the 1992 Council of American Building Officials Model Energy Code, incorporated in the HUDNA Minimum Property Standards for energy efficiency by the 1992 Energy Policy Act. Builder 0 • 00HARRIS COUNTY, TEXAS OFFICE OF HOUSING & ECONONHC DEVELOPMENT 8410 Lantem Point Houston, Texas 77054 Tel: 713-747-0132 Fax: 713-578-2190 r .. January 8, 2003 Mr. John Joerns, Acting City Manager City of La Porte 604 W. Fairmont Parkway LaPorte, Texas 77571 Dear Mr. Joerns: RE: Single -Family New Construction Project Project No. 2002-047 JAN 1 5 ' Enclosed is a copy of the executed Agreement between Harris County and the City of La Porte for the project referenced above using Home Investment Partnerships (HOME) Program funds. Please note that Mr. Warren came by our offices on January 7, 2003 and acquired a copy himself. If you have any questions please contact Stephen Skeete at (713) 747-0132 ext. 2042. Director DBT/ng Enclosure G:*nsb.m\Qp\r,g\cxocuudegrm=ts\CitX_p( Laporte_Sbog F—bd .:Nc- Cons Mioa -mc_- rce tr 010803.doc 2002-047 AGREEMENT BETWEEN HARRIS COUNTY AND CITY OF LA PORTE FOR SINGLE-FAMILY NEW CONSTRUCTION PROJECT THIS Agreement is made and entered into by and between Harris County, a body, politic and corporate under the laws of the State of Texas, herein called the "Grantee" and the City of La Porte, a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subrecipient." WHEREAS, the Grantee has applied for and received funds from the United States Government under the Home Investment Partnerships (HOME) Program, application number M -02 -UC -48- 0215; 2002-047; WHEREAS, the primary purpose of the HOME program pursuant to the National Affordable Housing Act of 1990 (NAHA) and 24 C.F.R. 92, is to benefit low and very -low income citizens by providing them with affordable housing; WHEREAS, the Grantee and the Subrecipient desire to enter into an agreement whereby the Grantee will grant funds to Subrecipient for the purpose of constructing two affordable single family houses to be occupied by low income citizens of Harris County, which is an eligible activity under the rules and regulations regarding HOME Program grant funds, in accordance with the terms and conditions described herein; and WHEREAS, the Subrecipient shall insure recognition of the role of the Grantee Department in providing services through this contract. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Subrecipient will include reference to Office of Housing and Economic Development "OHED" for the support provided herein in all publications made possible with funds made available under this A areement. NOVA'. THEREFORE, in consideration of the mutual covenants and agreements herein contained. it is agreed between the parties hereto that: Subrecipient agrees to provide the activities described in Exhibit A, attached hereto and incorporated herein for all purposes, in accordance with the provisions of this Agreement and in compliance with the requirements of the Title 1 of the Housing and Community Development Act of 1974 and all regulations issued thereunder. A. Eliuihle Activity The Subrecipient agrees to maintain documentation that demonstrates that. .the activities carried out with funds provided under this Agreement meet the following eligible activity relating to the HOME Program at 24 C.F.R. § 92.205(a)(1) which states that funds may be used by a participating jurisdiction to provide for acquisition and new construction. The specific eligible project costs for these activities are set forth in 24 C.F.R. § 92.206. 0 0 B. Performance Monitoring The Grantee will monitor the performance of the Subrecipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance or breach with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, Agreement termination procedures will be initiated pursuant to 24 C.F.R. § 85.43. The Subrecipient agrees to cooperate in periodic site visits and annual program and financial monitoring visits which the OHED staff and/or the Harris County Auditor's staff will conduct. Subrecipient also agrees to be cooperative with monitoring and/or investigations performed by the Department of Housing and Urban Development, and comply with their findings. Any non-compliance's identified during said monitoring visits shall be addressed in a reasonable period of time by the Subrecipient. Failure to respond in a timely manner will result in further corrective action by OHED including, but not limited to, termination of the Agreement. II. TIME OF PERFORMANCE Services of the Subrecipient shall start on the 17`h day of December 2002 and end on the 31" day of July 2004. This Agreement may only be extended upon written approval from the Executive Director, OHED. III. PAYMENT The Grantee has no Grantee funds for the payment of services to be rendered under this Agreement. It is expressly understood that Grantee's obligation under this Agreement is contingent upon receipt of funds for such purpose from the U.S. Department of Housing and Urban Development ("HUD"), by virtue of the above-mentioned grant(s). Accordingly, notwithstanding anything herein to the contrary, the maximum liability of the Grantee under this Agreement shall not exceed One Hundred Eighty One Thousand Nine Hundred Dollars and No/ 100 (S 181,900.00) or the amount actually received by the Grantee from HUD pursuant to the Grant, whichever is less, and Subrecipient, by execution of this Agreement, acknowledges its understanding of this fact. The Subrecipient will have no right of action against the Grantee in the event that the Grantee is unable to perform its obligations under this Contract as a result of the suspension, termination, withdrawal, failure, or lack of sufficient funding from HUD to the Grantee. Reimbursement for eligible expenses shall be made against the line item budgets specified in Exhibit `B" in accordance with performance. The Grantee will -only make funds available to the Subrecipient on a reimbursable basis upon receipt of an invoice. On or before the tenth working day of the month Subrecipient shall submit an itemized invoice. in a form approved by the Harris County Auditor, to OHED setting forth in 1) detail the services provided hereunder during the previous month and the cost, compensation and expense reimbursement claimed. Such invoices shall show the name and classification of each person that performed services pursuant to this Agreement, the date or dates that services were performed, and the time or times during such day or days that the services were performed. Invoices shall be and must be accompanied by all appropriate supportive documentation. The supportive documentation shall include such details of the work, units/duration, and the expenses claimed as may be requested by the Grantee's Auditor for verification purposes. OHED will review the invoices and, after approval, will forward them to the Harris County Auditor for approval and payment. Invoices that are incorrect or lack sufficient supporting documentation will be retumed to Subrecipient for correction before submission to the County Auditor for payment. Any proposed reallocation of funds among various Budget line items or to new line items created in the Budget must be treated as a contract amendment, requiring approval of the Grantee. No more than two (2) budget revision requests shall be allowed each year. Payment by the Grantee to the Subrecipient shall be limited to the actual out-of-pocket expenses incurred by the Subrecipient in the performance of this Agreement. No reimbursement shall be made for goods or services received by the Subrecipient as in- kind contributions from third parties for assistance of the program. Grantee maintains the right to suspend payment to the subrecipient for failure to submit reports within the required timeframe. Grantee may terminate this Agreement with the subrecipient for failure to submit reports for two consecutive months. A Supplemental Request amending a payment or reimbursement request may be filed with OHED within thirty (30) days after the submission or receipt of the original request. Supplemental Request for payment or reimbursement submitted after thirty (30) days from the date of submission or receipt of the original request will not be approved. No more than one Supplemental Request shall be allowed per month. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in OMB Circular A-110. The Subrecipient understands and agrees that reimbursement for costs under this Contract shall be in accordance with all applicable federal rules, regulations, cost principles, and other requirements relating to reimbursement with Housing and Urban Development (HUD) grant funds. The County shall pay for only those costs that are allowable under said rules, regulations, cost principles and requirements. The Subrecipient agrees to repay County in full for any costs paid by County under this contract that are disallowed or determined to have been ineligible for payment with HUD grant funds. 3 IV V. VI. VII NOTICES Any communication concerning this Agreement shall be directed to the representatives of the Grantee and Subrecipient as provided in Exhibit A, Scope of Services. Subrecipient shall provide clients with information concerning submission of complaints. Any complaints received concerning the Subrecipient and services provided shall be directed to the representative of the Grantee as provided in Exhibit A. Letters received detailing the results of Subrecipient monitoring by the Grantee shall be 'posted, upon receipt, for public view. If HUD initiates an investigation into a matter covered under this contract, OHED shall or may withhold all payments until the results of the investigation have been revealed. Reimbursement to the Subrecipient will be determined upon resolution of the investigation by HUD. Grantee David B. Turkel, Director Office of Housing & Economic Development 8410 Lantern Point Houston, Texas 77054 SPECIAL CONDITIONS Subrecipient John Joerns, Acting City Manager City of La Porte 604 W. Fairmont Parkway LaPorte, Texas 77571 The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal Regulations, Part 92 of the HUD regulations concerning the HOME Program and all federal regulations and policies issued pursuant to these regulations. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. MATCHING FUNDS CONTRIBUTION REQUIREMENTS HOME Program funds used for Subrecipient acquisition and new construction are required to be matched according to 24 C.F.R. § 92.218. The matching contribution must total not less than 25 percent of HOME funds expended. Eligible forms of matching contributions must be met in accordance with 24 C.F.R. § 92.220. PROJECT REQUIREMENTS A. Property Standards (1) The Subrecipient must follow the property standards requirements of 24 C.F.R. § 92.251 for housing constructed or rehabilitated with HOME funds. The housing 4 must meet all applicable local codes, rehabilitation standards, ordinances and zoning ordinances at the time of project completion. (2) Newly constructed housing must meet the current edition of the Model Energy Code (MEC) published by the Council of American Building Officials. (3) The housing must meet the accessibility requirement at 24 C.F.R. Part 8, which implements Section 504 of the Rehabilitation Act. (4) Construction of all manufactured housing must meet the Manufactured Home Construction and Safety Standards established in 24 C.F.R. Part 3280. B. Affordability Period The Subrecipient must follow the affordability requirements of 24 C.F.R. § 92.254 (a)(4) of the HOME Program, as applicable. Failure to meet the affordability requirements for the specified periods will require repayment of HOME funds. In addition, to ensure affordability, the Grantee has imposed the recapture requirements at 24 C.F.R. § 92.254(a)(5)(ii), which recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence during the period of affordability. Amount of Assistance Provided Affordability Period <$15,000 5 years $15,000 - $40,000 10 years >$40,000 15 years C. Recapture Requirements The Subrecipient must inform homebuyers that housing purchased with HOME Program funds must be acquired by a homebuyer whose family qualifies as a low- income family and the housing must continue to be the principal residence for the assisted homebuyer for the full affordability period, as required by 24 C.F.R. § 92.254(3). To ensure that the Grantee recoups all or a portion of the HOME assistance to homebuvers, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, the Grantee will reduce the HOME investment amount to be recaptured on a pro -rata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. D. Religious Organizations 5 0 0 HOME funds may not be provided to primarily religious organizations, such as churches, for any activity including secular activities as indicated in 24 C.F.R. § 92.257 of the HOME Program requirements. E. Affirmative Marketing: Minority Outreach Program Subrecipient must follow the affirmative marketing procedures and requirements in accordance with 24 C.F.R. § 92.351 of the HOME Program, for HOME - assisted housing containing 5 or more housing units. The affirmative marketing steps consist of actions to provide information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market area to the available housing. The Grantee will annually assess the affirmative marketing program to determine the success of affirmative marketing actions and any necessary corrective actions (Exhibit F). VIII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this Agreement, including Executive Order 12372 governing the review and coordination of Federally Assisted Program and Projects. B. Independent Contractor Subrecipient shall operate hereunder as an Independent Contractor and not as an officer, agent. servant or employee of Grantee. Subrecipient shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, program participants, licensees or invitees. The doctrine of respondent superior shall not apply as between Grantee and Subrecipient, its officers, members, agents, servants, employees, program participants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between Grantee and Subrecipient. It is expressly understood and agreed that no officer, member, agent, employee, licensee or invitee of the Subrecipient, nor any program participant hereunder, is in the paid service of Grantee and that Grantee does not have the legal right to control the details of the tasks performed hereunder by Subrecipient, its officers, members, agents, employees, program participants, licensees or invitees. Grantee shall in no way nor under any circumstances be responsible for any property belonging to Subrecipient, its officers, members agents, employees, program participants, licensees or invitees, which may be lost, stolen, destroyed or in any way damaged. 0 7- C. Indemnitv Subrecipient covenants and agrees to indemnify, hold harmless and defend, at its own expense, Grantee and its officers, agents, servants and employees from and against any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind of character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance of this contract and Agreement and/or the operations, activities and services of the Program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee; and Subrecipient hereby assumes all liability and responsibility of Grantee and its officers, agents, servants, and employees for any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance of this contract and Agreement and/or the operations, activities and services of the programs described herein, whether or not caused in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee. Subrecipient likewise covenants and agrees to and does hereby indemnify and hold harmless Grantee from and against any and all injury, damage or destruction of property of Grantee, arising out of or in connection with all acts or omissions of Subrecipient, its officers, members, agents, employees, sub-Subrecipients, invitees, licensees, or program participants, or caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, Subrecipients or sub-Subrecipients of Grantee. D. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all employees involved in the performance of this Agreement. Subrecipient must provide to OHED a Certificate of such insurance. The Subrecipient shall also abide by the Contract Work Hours and Safety Standards Act of 1962 (40 U.S.C. 327 et seq.). E. Waiver of Immunity If the Subrecipient, as a charitable or nonprofit organization, has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, Subrecipient hereby expressly waives its rights to plead defensively such immunity or exemption as against Grantee. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 7 F. Public Liability Insurance Subrecipient shall furnish a certificate of insurance as proof that it has secured and paid for policies of public liability and automobile liability insurance covering all risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this contract and Agreement. The amounts of such insurance shall not be less than the maximum liability, which can be imposed on Grantee under the laws of the State of Texas. At present, such amounts shall be as follows: Property damage, per occurrence $100,000 Bodily injury or death, per person $100,000 Bodily injury or death, per occurrence $300,000 With the understanding and Agreement by the Subrecipient that such insurance amounts shall be revised upward at Grantee's option and that the Subrecipient shall revise such amounts within thirty (30) days following notice to Subrecipient of such requirements. Subrecipient also covenants and agrees to furnish the Grantee with a certificate of insurance as proof that it has obtained and paid for a policy of Worker's Compensation Insurance in the amounts required by State law, covering any and all employees of Subrecipient active in the program funded under this contract; and Subrecipient agrees to require its sub-Subrecipients to carry adequate Worker's Compensation Insurance in the amounts required by State law. Subrecipient will submit to Grantee documentation that it has obtained insurance coverage as required in this contract within thirty (30) days of the execution of this contract and prior to payment of any monies hereunder. G. Grantor Recognition The Subrecipient shall ensure recognition of the role of Grantee in making services available through this Agreement. All facilities, publications and other items used, made available. or made possible through funds obtained pursuant to this Agreement shall be prominently labeled as having been funded (in total or in part) by Office of Housing and Economic Development. Subrecipient shall maintain a "recognition file." Each instance of recognition shall be documented by including in such file a copy or photograph of each such instance of recognition. Original documents are the preferred means of documentation, but photocopies or photographs may be used when and where appropriate. 8 H. Amendments Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release Grantee or Subrecipient from its obligations under this Agreement. Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendment results in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be effected only by written amendment signed by both Grantee and Subrecipient. No more than two amendments to the Agreement shall be allowed each year. I. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Services in Exhibit A above may only be undertaken with the prior approval of Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by Subrecipient under this Agreement shall, at the option of the Grantee, become the property of Harris County, and Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination, unless HUD has determined through monitoring and or investigative practices, that Subrecipient is not entitled to such compensation. Subrecipient may be responsible for repayment of funds to OHED and/or HUD. Grantee may also terminate this Agreement for cause, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Subrecipient ineligible for any further participation in Grantee HOME Agreements, in addition to other remedies as provided by law. Additionally, in the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to twenty-five (25) percent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. Termination, or expiration, of this Agreement shall not relieve Subrecipient of liability for any breach of this Agreement that occurs prior to such termination or expiration. Z J. Reversion of Assets Upon expiration of the term of this Agreement, the Subrecipient shall transfer to the recipient any HOME funds on hand at the time of expiration and any account receivable attributable to the use of HOME funds. For any year following the expiration or termination of this contract that Subrecipient holds personal property attributable to funds hereunder, Subrecipient shall submit an Annual Report of Personal Property identifying the property and its location, with such report being filed with the OHED and the Harris County Auditor. Grantee may also suspend or terminate this Agreement, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Subrecipient ineligible for. any further participation in Grantee Agreements, in addition to other remedies as provided by law. In the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to twenty-five (25) percent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. IX. ADMINISTRATIVE REQUIREMENTS A. Financial Management Accounting Standards The Subrecipient agrees to comply with Subpart C of OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient shall administer its program in conformance with OMB Circulars A-122. "Cost Principles for Non -Profit Organizations," for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the federal regulations specified in 24 C.F.R. § 92.508 and that are pertinent to the activities -to-be funded under this Agreement. Such records shall include but not be limited to: 10 a. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with HOME assistance; b. Records documenting compliance with the fair housing and equal opportunity components of the HOME program; C. Financial records as required by 24 C.F.R. § 92.505, and OMB Circular A-122; and d. Other records necessary to document compliance with Subpart K of 24 C.F.R. Part 92. 2. Retention The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of five years after the termination of all activities funded under this Agreement, or after the resolution of all Federal audit findings, which ever occurs later. Records for non -expendable property acquired with funds under this Agreement shall be retained for five years after final disposition of such property. Records for any displaced person must be kept for five years after he/she has received final payment. All client records are the property of the Grantee and must be forwarded to the Grantee at the end of each quarter. Failure to submit client files to Grantee as required shall be a material breach of the contract and funding will be withheld from the Subrecipient until such time as the files are submitted. Subrecipient must also comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. I Reports The Subrecipient shall furnish reports to the Grantee, which include, but may not be limited to the following: A. Performance Reports submitted at the end of each month. B. Certification for Contracts, Grants, Loans, and Cooperative Agreements (see Exhibit C). C. Cost Control Report submitted monthly to Grantee. D. Cost Worksheet submitted monthly to Grantee. E. Reimbursement Request submitted monthly to Grantee. F. Personnel Cost Worksheet submitted monthly to Grantee. G. Quarterly and Annual Performance Reports submitted at the end of each quarter or contract period, respectively. Monthly reports are to be submitted within ten (10) working days -of the end of the reporting periods. The quarterly performance reports are due within fifteen (15) days after the end of the previous quarter and the annual performance report is due within one month after the end of the contract period. Reimbursement 11 requests received more than sixty (60) days after the reporting month will not be honored. Incorrect reports will not be accepted and will be returned to the subrecipient for correction and resubmission. Failure to comply with the reporting requirements of this Article shall be a material breach of the contract and funding will be withheld from the Subrecipient until such time as the reports are submitted. Grantee maintains the right to terminate this Agreement with the Subrecipient for failure to submit reports for three consecutive months. 4. Eligible Activity The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Agreement meet the eligible activity relating to the HOME Program at 24 C.F.R. § 92.205, which states that HOME funds may be used by a participating jurisdiction to provide incentives to develop homeownership affordability through acquisition, new construction of non -luxury housing. The specific eligible costs for these activities are set forth in 24 C.F.R. 92.206(a). 5. Close -Outs Subrecipient's obligation to the Grantee shall not end until all closeout requirements described in 24 C.F.R. 84 are completed to the satisfaction of the OHED and the Harris County Auditor. Activities during this close-out period shall 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 receivable accounts to the Grantee, and determining the custodianship of records. 6. Audits & Inspections .all Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, its designees or the Federal Government, at any time during normal business hours, as often as the Grantee deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. arty deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this agreement and may result in the withholding of future payments. Subrecipient hereby agrees to have an annual agency audit conducted in accordance with OMB Circular A-133. 12 0 C. Reporting and Pavment Procedures Budgets The Subrecipient has submitted a detailed budget (see Exhibit B) in a form and content prescribed by Harris County Auditor. The Grantee and the Subrecipient may agree to revise the budget in accordance with existing county policies. The budget may only be revised two times in a one-year period. 2. Program Income The Subrecipient shall report all program income as defined at 24 C.F.R. § 92.2(2) generated by activities carried out with HOME funds made available under this Agreement. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 C.F.R. § 92.503. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Grantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the Grantee. Indirect Costs If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Grantee share of administrative costs and shall submit such plan to the Grantee for approval. 4. Pavment Procedures The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and county policy concerning payment. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this Agreement for costs incurred by the Grantee on behalf of the Subrecipient. C. Procurement Compliance The purchase of any items either individually or in the aggregate that exceeds $500.00, shall be by open, competitive bidding. Subrecipient shall maintain an 13 • inventory record of all non -expendable personal property procured with funds provided hereunder. Any real property. under Subrecipient's control that was acquired or improved in whole or in part with HOME funds must either be: a. Used by the Subrecipient to meet the eligible activity in 24 C.F.R. § 92.205(a)(1) until five years after expiration or termination of the Grantee's Agreement with HUD; or b. Transferred to the Grantee; or c. Disposed of in a manner, consistent with 24 C.F.R. § 85.31, which results in the amount of the then current fair market value of the property less any portion thereof attributable to expenditures of non - HOME funds for acquisition thereof, or improvements to, the property being reimbursed to the Grantee. Such reimbursement is not required if disposed of more than (5) five years after the expiration or termination of this Agreement. d. Further, if within five years of the termination or expiration of this Agreement, the Subrecipient ceases to use any or all personal property attributable to HOME funds to meet an eligible activity, the personal property shall, in accordance with 24 C.F.R. § 85.32, either revert to the Grantee or be disposed of in accordance with the applicable federal rules and regulations, including but not limited to OMB Circular A- 110, SubpartC. e. The Grantee in its sole discretion shall determine whether or not the Subrecipient use of any property meets the eligible activity contained in 24 C.F.R. § 92.205(a)(1). f. After the expiration of five years, the Subrecipient shall have no obligation to comply with this section regarding real or personal property. g. Nothing contained herein shall be construed to conflict with the duties of the Subrecipient as set forth in the Texas Non -Profit Corporation Act (Tex.Ann. Civ. St. Art. 1396-1.01, et seq.) or any other applicable statue. ?. OMB Standards The Subrecipient shall procure materials in accordance with the requirements of Subpart C of OMB Circular A-110, Procurement Standards; -and shall subsequently follow Subpart C, Property Management Standards, covering utilization and disposal of property. 14 3. Travel Subrecipient must comply with Harris County travel guidelines and obtain prior written approval from the Grantee for any travel outside the Grantee's service area paid for with funds provided under this Agreement. 4. Relocation, Acquisition and Displacement The Subrecipient agrees to comply with 24 C.F.R. § 92.353 relating to the acquisition and disposition of all real property utilizing grant funds, and to the displacement of persons, businesses, non-profit organizations and farms occurring as a direct result of any acquisition of real property utilizing grant funds. The Subrecipient agrees to comply with applicable Grantee Orders, and Policies concerning displacement of individuals from their residences, including the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VII of the Civil Rights Act of 1968 as amended, Section 109 of Title 1 of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, -Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086 and all other applicable requirements of 24 C.F.R. § 92.350, Subpart H. 2. Nondiscrimination The Subrecipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age marital status, or status with regard to public assistance. The Subrecipient will take affirmative .action to insure that all employment practices are free from such. discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Subrecipient, setting forth the provisions of this nondiscrimination clause. Subrecipient shall also abide by Title IX of the Education Amendments of 1972 15 0 • (20 U.S.C. § 1681 et seq.), which prohibits sex discrimination in federally assisted education programs. 3. Section 504 The Subrecipient agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706), which prohibits discrimination against the handicapped in any federally, assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. 4. Drug Free Workplace All profit or non-profit agencies or organizations receiving state or federal grant funds under the official sponsorship of Harris County must certify on an annual basis their compliance with the requirements of the "Drug Free -Workplace Act of 1988". Employees are specifically prohibited from manufacturing, distributing, possessing, purchasing, and using illegal drugs or controlled substances in the work place or in any other facility, location or transport in which the employee is required to be present in order to perform his or her job function., B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be committed to cant' out pursuant to the Grantee's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965. 'The Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program.. The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. W/MBE The Subrecipient will use its best efforts to afford minority- and women -owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the term "minority and women business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish -heritage Americans, Asian Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and women business enterprises in lieu of an independent investigation. M 0 0 3. Access to Records The Subrecipient shall furnish and cause each of its sub-Subrecipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. EEO/AA Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action Employer, as applicable. 5. Subcontract Provisions The Subrecipient will include the provisions of Paragraphs VIII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each Subrecipient or vendor. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participant's health or safety. Labor According to 24 C.F.R. § 92.354, 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 Davis -Bacon Act (40 U.S.C. 276a — 276a-5), to all laborers and mechanics employed in the development of any part of housing. Such contracts 17 0 • must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C.. 327 — 332). 4. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended, the regulations set forth in 24 C.F.R. § 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 Grantee, the Subrecipient and any Subrecipient. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and any sub- Subrecipients, their successors and assigns, to those sanctions specified by the Agreement through which federal assistance is provided, and as set out in 24 C.F.R. Subpart O. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The Subrecipient further agrees to comply with these "Section 3" requirements and to include the following language in all subcontract executed under this Agreement. "The work to be performed under this contract 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 lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the areas of the project." The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Notifications The Subrecipient 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. 18 0 0 C. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. d. Grievance Subrecipient will notify all clients of the grievance procedure (Exhibit H). Grievance notification will be posted at subrecipient location and will list grievance officer and contact telephone number. Grievance notification will also identify OHED as funding source and telephone number to contact Grantee. D. Conduct 1. Assig'_nability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Grantee. 2. Hatch Act The Subrecipient 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 United States Code. 3. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 C.F.R. § 92.356 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Subrecipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or 19 retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the Grantee, or of any designated public agencies or Subrecipient that are receiving funds under the HOME Program. The Subrecipient also agrees to abide by 18 U.S.C. 286, which provides for conspiracy to defraud the Federal Government with Respect to Claims. In addition, the Subrecipient will also abide by the False Claims Act (31 U.S.C. 3729 et seq.); 18 U.S.C. 287 relating to False, Fictitious and Fraudulent Claims; 18 U.S.C. 245 Federally Protected Activities; 18 U.S.C. 100.1 regarding General Statements or Entries; the Program Fraud Civil Remedies Act (31 U.S.C. 3801- 3812); the Federal Claims Collection Act of 1966 (31 U.S.C. 952) as amended by the Derby Collection Act of 1982; the Meritorious Claims Act (31 U.S.C. 3702); the Tucker Act (28 U.S.C. 1346, 1491, and 2501); the Wunderlich Act (41 U.S.C. 321-322); the Anti -Deficiency Act (31 U.S.C. 1341); and Section 208(a) of the Intergovernmental Personnel Act of 1970, as amended (Exhibit G). 4. Subcontracts a. Atiprovals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the Grantee prior to the execution of such agreement. b. Monitorins The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. Content The Subrecipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d. Selection Process The Subrecipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall -be. forwarded to the Grantee along with documentation concerning the selection process. 20 5. CoRyright If this Agreement results in any copyrightable material, the Grantee 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 for government purposes. 6. Religious Organization The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 C.F.R. § 92.257. XI. ENVIRONMENTAL CONDITIONS A. Air and Water The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this Agreement: ■ Clean Air Act, 42 U.S.C. 1857, et seq. ■ Clean Water Act, 33 U.S.C. 1368 ■ Executive Order 11738 ■ Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., relating to inspection, monitoring, entry, reports, and information, and all regulations guidelines issued thereunder. ■ Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 15, as amended. ■ National Environmental Policy Act of 1969 (42 U.S.C. 432 et seq.; as amended) • HUD Environmental Review Procedures (24 C.F.R., Part 58). B. Flood Disaster Protection The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 (P.L.-2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Agreement. C. Lead -Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations at 24 C.F.R. § 92.355, and 24 C.F.R. Part 35, and in particular Sub -Part B thereof. Such regulations pertain to all HUD -assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be 21 properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning, and of the advisability and availability of blood -level screening for children under 7 years of age. D. Historic Preservation The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Aereement. In general this requires concurrence 'from the Texas Historical Commission and Antiquities Committee for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list. E. NVildlife Protection The Subrecipient agrees to comply with the requirements of the Endangered Species Act of 1973 as listed in 50 C.F.R. § 17.11 and 50 C.F.R. Part 451; the Lacey Act (18 U.S.C. 42); the Migratory Bird Treaty Act (16 U.S.C. 703-12); the Fish and Wildlife Coordination Act (16 U.S.C. 661-667e); Section 4(f) of the Department of Transportation Act (49 U.S.C. 1653(f); the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.); the Coastal Zone Management Act of 1972, as amended (16 U.S.C. 1451); and the Safe Drinking Water Act of 1974 (42 U.S.C. 300f to j-10), insofar as they apply to the performance of this Agreement. 22 • 0 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. Attest: u. Secretary APPROVED: BY, I ��A/j David B. Turkel, Director Office of Housing & Economic Development APPROVED AS TO FORM: Mike Stafford, County Attorney B Melis L. Barloco Assistant County Attorney AUDITOR'S CERTIFICATE CITY OF LA PORTE By Robert Eckels, County Judge I hereb-,, certify that funds are available in the amount of $181,900.00 to pay the obligation of Harris County under this contract. Tommy J. Tompkins County Auditor 23 0 • EXHIBIT A H. Scope of Services A. Activities Subrecipient will be responsible for administering HOME Program Fiscal Year 2002 Single Family New Construction Project in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Subrecipient will provide affordable housing to low-income citizens, in accordance with 24 C.F.R. § 92.205(a)(1). Program Delivery The City of La Porte (City), in conjunction with local community organizations have decided to increase the number of affordable housing units available to low income residents of the City by utilizing HOME Program funds. These grant funds will be utilized for the construction of two affordable single-family houses. The City has agreed to provide a total of $87,500.00 in matching funds to Harris County for deposit into Harris County's HOME Investment Trust Fund. These funds are required to meet the 25% match requirement for this project. The City aa-rees to remit these funds within 30 days after Commissioners Court approval of this Agreement. The total amount of S 12,000.00 in matching funds will be used for acquisition of four vacant lots; $75,500.00 in matching funds provided by the City will be used for down payment and closing cost assistance. This Agreement does not include activities for down payment and closing cost assistance; however, the HOME Program funds allocated to the City for this activity will be made available to the City in a subsequent agreement between Hams County and the City of La Porte, within one year of the date of the time of performance for this Agreement. The total project will consist of the acquisition of eleven vacant lots for the construction of eleven affordable single-family houses in the City of La Porte for a total projdrt cost of S 1,010,450.00. Activity #1 Subrecipient will purchase four 25' x 125' lots for the. construction of two affordable single-family houses in the City of La Porte. Within 30 days after the purchase of the four lots, the Subrecipient will submit a copy of the recorded resale deed to the Grantee. 24 Subrecipient agrees that the acquisition of these lots must be completed within six months after Commissioners Court approval of this Agreement. Activity #2 Subrecipient will begin construction on two single-family houses in the City of La Porte within one year from the date of Commissioners Court approval of this Agreement. Newly constructed houses must meet the local codes/standards or one of the nationally accepted codes and the current edition of the Model Energy Code (MEC) by the Council of American Building Officials (MEC) (Exhibit D, MEC Web Site), and if applicable, shall comply with Section 504 relative to meeting the needs of any approved applicant having one or more physical disabilities (wheelchair, etc.) and/or sight or hearing impairments. Within 90 days after the date the Agreement is executed, Subrecipient through its Representative, selected pursuant to federal procurement regulations set out in 24 C.F.R. 85.36 and with OHED policy procurement guidelines, will prepare drawings and specifications for the Project (in accordance with the usual requirements of the Grantee). Subrecipient through its Representative will be responsible for incorporating into the construction documents any and all Department of Housing and Urban Development requirements, including the Guidelines set out in attached Exhibit E. Upon completion of said drawings and specifications, the Subrecipient will submit the same to the Grantee for the Grantee's written approval. Within 30 days after approval by Grantee of the drawings and specifications as set out above, the Subrecipient will advertise for and receive bids for the construction of the Project in accordance with approved drawings and specifications which bidding procedure will be in accordance with attached Exhibit E guidelines. Upon receipt and tabulation of the bids for the Project, Subrecipient will submit the lowest and most responsive, responsible bid for the construction of the Project. Grantee reserves the right to approve the award of the bid. In the event the lowest and most responsive, responsible bid for the construction of the Project is an amount that would result in the total cost of the Project being equal to or less than the sum of $181,900.00 Subrecipient will notify Grantee of the amount of the lowest and most responsive, responsible bid for the Project. The Contract 041 0 0 between Subrecipient and its contractor and all contracts between contractor and its subcontractors shall be in accordance with the Guidelines attached hereto as Exhibit E and with all applicable HOME regulations and OMB circulars. In the event the lowest and most responsive, responsible bid for the construction of the Project is an amount in excess of the sum of $181,900.00, Subrecipient shall have the following three (3) options: 1. Subrecipient may notify Grantee of the bid and agree in writing to pay the additional cost of the Project. In the event the Subrecipient agrees in writing to pay the additional costs, then and in that event the Subrecipient will proceed to let the contract and continue with the construction of the Project. If the Subrecipient fails to agree in writing to pay said additional costs, the Subrecipient may reject all bids and elect not to proceed with the letting of the contract and terminate the Project without any further obligations to Grantee; or 2. Subrecipient may notify Grantee of the bid and undertake to negotiate with the Grantee for Subrecipient and Grantee to agree in writing to reduce or delete specific items in the bid proposal so that bids will be within the amount of available construction funds. In the event Subrecipient and Grantee agree in writing to reduce or delete items in the bid proposal, the Subrecipient will re -bid the project and proceed as if it were the original bid; or 3. Subrecipient may reject all bids and elect not to proceed with the letting of the contract and terminate the Project, giving the Grantee written notice of its termination. Within thirty (30) days after notification by Grantee to Subrecipient that the bid has been approved, the Subrecipient shall award the contract to the lowest and most responsive, responsible bidder, in accordance with the usual and customary procedures of the Subrecipient. Subrecipient will contract directly with its contractor, incorporating all requirements of this Agreement therein. The Grantee may terminate this Agreement without cause, at any time prior to the letting of the contract for construction of the Project, by written notice to the Subrecipient, and the'Grantee shall have no further obligation hereunder. 26 0 The Subrecipient may make such changes and amendments to the drawings and specifications within the general scope of the approved Project, as the Subrecipient deems necessary or desirable during construction of the Project, so long as the original scope and intent of the Project is unchanged. During the construction of the Project, Grantee, Subrecipient and HUD shall have the right to review all documents, maps, plats, records, photographs, reports or plans affecting said construction. The Subrecipient shall,. at its sole expense, furnish the necessary inspection personnel to assure itself of compliance with the construction contract. In absence of inspection by the Subrecipient, then the Subrecipient shall be deemed to have accepted those inspections made by the Grantee (Exhibit I, Harris County Inspection Report) and Subrecipient will be required to complete Exhibit J, Builders Certification of Energy Conservation Standards. Activity #3 Subrecipient will not be permitted to retain the proceeds from the sale of the two houses constructed with grant funds. These proceeds are considered program income for this project. The Subrecipient agrees to remit these funds to the Grantee (see Part IX, C. 2. of this Agreement) for deposit into the Grantee's HOME Investment Trust Fund. In addition, the Subrecipient agrees that after the deposit is made into the Grantee's trust fund the Grantee has no obligation to remit these funds back to this project. The Grantee may allocate these funds to any eligible affordable housing activity that the Grantee deems suitable. Activity 94 Subrecipient will provide a timeline to the Grantee within four months of the date of this Agreement detailing the completion of the remaining houses. If the Subrecipient fails to submit timeline, this will cause this Agreement to be terminated without prior notice to Subrecipient. In addition to the normal administrative services required as part of this Agreement, the Subrecipient agrees to document progress using reporting requirements specified in Paragraph X (B)(1), (B)(2), & (B)(3) of this Agreement. Activitv Units/Month Total Units/Year Land Acquisition 4 lots by June 30, 2003 27 0 0 Construction Starts Construction to begin on the two houses within 12 months after Agreement approved by Commissioners Court on December 10, 2002. Construction must begin no later than December 9, 2003 Construction End Initial two homes must be completed within 7 months after construction start. Timeline Construction of Remaining Homes Subrecipient will provide a timeline by April 11, 2003, detailing the construction schedule to ensure completion of the remaining houses by July 31, 2004. 28 EXHIBIT B CITY OF LA PORTE SINGLE-FAMILY NEW CONSTRUCTION PROJECT BUDGET SUMMARY Description OHED Match Other Funding Sources Total Personnel $0 $0 $0 $0 Non Personnel $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Costs Acquisition $0 $12,000 $0 $12,000 New Construction $181,900 $0 $816,550 $998,450 $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Budget Total $181,900 $12,000 $816,550 $1,010,450 PROJECT BUDGET DETAIL Project Costs Hard Costs Description OHED Match Other Sources of Funds Total a. .acquisition 1. .3 lots x S:.000 per lot $12,000 $0 $12,000 b. Nen Construction I. OHED Funds I Ihouse x S88.950 and I x S 92,950 per houses 2. Other Funds (9 houses ave. x 90.727 per house) 5181,900 $0 $816,550 $998,450 Subtotal Project Budget Total $181,900 $12,000 $816,550 $1,010,450 29 EXHIBIT C CERTIFICATION FOR CONTRACTS, GRANTS, LOANS AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language 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 Subrecipients shall certify and disclose accordingly. 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. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than S 10,000 and not more that S 100,000 for each such failure. Executed this?,, day of '•Jt'C� By 20 gnature) ITC J2 (Type or Print Name) (*I i i ft vlu ad (Title p, Covered Action: ' l `e - f GILI tWl v �COVIST r u 64/1 (Program, Project or Activity) 30 P I aj 4:-24- 10 PmWtod b Comml 4b"rl, Can C4.V 1 f 20Q2 THE STATE OF TEXAS § APPROVE § ftewrio 4,_=�.pip COUNTY OF HARRIS § The Commissioners Court of Hams County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the day of n[r nna , 2002, with the following members present, to -wit: �. Robert Eckels County Judge El Franco Lee Commissioner, Precinct No. 1 James Fonteno Commissioner, Precinct No. 2 Steve Radack Commissioner, Precinct No. 3 Jerry Eversole Commissioner, Precinct No. 4 and the following members absent, to -wit: AV 0 /1o,. constituting a quorum, when among other business, the following was transacted: ORDER AUTHORIZING EXECUTION OF AGREEMENT BETWEEN HARRIS COUNTY AND CITY OF LA PORTE FOR SINGLE-FAMILY NEW CONSTRUCTION Commissioner. _ introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it thL AdApfia§eft- hMsder, RT vailedd by�lthe following vote: El El AYES: - ? j ❑ NAYS: ABSTENTIONS: The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: RE CITALS: WHEREAS, the County has applied for and received funds from the United States Government under Title 1 of the Housing and Community Development Act of 1974, Public Law 97-383 application number M -02 -UC -48-0215; 2002-047. WHEREAS, the County wishes to engage the City of La Porte to assist the County in utilizing such funds; WHEREAS, the City of La Porte shall insure recognition of the role of the Grantee Department in providing services through this contract. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the City of La Porte will include reference to Office of Housing and Economic Development ("OHED") for the support provided herein in all publications made possible with funds made available under this contract. 31 9 0 NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUI��I'Y, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2. The Agreement is approved and the County Judge of Hams County or his designee is authorized to execute an Agreement with the City of La Porte to construct two single- family houses in the older neighborhoods specifically the Northside neighborhood within the corporate limits of the City of La Porte, Texas in Harris County, for low-income citizens, in the amount of $181.900. The Agreement is attached hereto and made a part hereof for all purposes. 32 • EXHIBIT D MODEL ENERGY CODE 33 �.r Mome I RECO Programs I Pante 1Comptroller's Office Energy Conservation Design Standard for Nem' State Buildings Recognizing :he importance of designing new energy efficient state-owned facilities and maior renovations. the 70rcri Texas Legislature authorized adoption of energy conservation destgn standards. The Energy Design Stancrd for Neu• State Buildings. based on the American Society of Heating, Conservation Conditioning =ngineers (ASHRAE) Standard 90.1 and commonly referred to as the "Texas Standard." was de: eloped to -:stood to this directive. It uas first adopted rn June 1989 and was revisedTexas Stand and Air Fe 194:in May 1990 and The Texas Les:slature recently passed sena_ t�l1 s which imposes new requirements on local governments in an;. around some orator urban areas in Texas i see the Senate Research Center's SB S ell Analysis for additional tote matron,. Ce rain political subdivisions .except school districts) must implement energy efficient measures thz: are cost-effective, and all cities must adopt new energy efficient building codes -The Texas Municipal Lea_ue. the Teras Conference of Urban Counties. the State Energy Conse Association Of =ounties will present one-dav workshos focrvation Office. and the Texas using on Senate Bill S. For additional to Cly ,�,/tri Senate Bill pS. rnfo tries: workshors. see Nowrntation on Prop -am goals re to sec minimum requirements for energy efficient desien of new state building rend: aeon prore_ts so that the% mai• be constructed. operated and maintained in a manner that minimizes of e"ergs w,thc_: constraining buildings and major goaii are: the building: function or the comfort and productivity of the Occupants. Specific • tri tern id.:nteria for energy effici criteria. ent design and describe methods for determining compliance with the ire provic: sound guidance for energy efficient design. • Io de%•eic•_ crocedures to encourage de�ei�= an incentive code compliance and improve enforcement. • t,+ process and encourage application of the Texas Standard. Residential and Commercial Energy Code Training Tnc ^, retsi�� residential and small commercial energy code training currently in place in Texas is ba CABC• Model En: -e. Code and ASHRAE _ aDt)rri : �eS b 1Sec -7:the use of Standard 90.1. Training also focuses on simplified compliance pon ath - MECcheck and COMcheck software. as developed by PNNL for U.S. DOE. :•oai, are : • encourage ap �rKa; :-.k)U h use .' a user-friendlvtoolt to verify compliance.ion of a residential id/oe commercial energy code by jurisdictions in `'r"_'•'::� .,�recu� e• .re to prop ide training to building code officials. • •'"���'_ •'r CABC. "•fEC for residential structure.�and ASHRAE Standard designers. n' architects. and engineers by 90.1 for small commercial buildings. Hume Energy Rating, S�•stem/Energy EtTiciency Mortgage Demonstration Program C.:.:.. _::rtmunir% a::ion '.eon agencies. and inc me el consultants successfully function as sub -grantees of D OE J'. rune +eathrriz::irm lundin.� fele low income eligible home owners. They currently use sub-grantees :gig `r'r:••arc and c.a:nrititic tools to evaluate cost effective energy energy _. efficiency. sophisticated energy Pre,` -'ram _gals are tt• :mprov1- energy efficient improvements to new and existing ho �111ec cOmmunn.% ac:irin agencies. and HUD 203K consultants as qualified energyores in Texas and to certify Program ?rectraters. i es are to demonstrate a close correlation between Home Energy Rating Systems and Energy %, ti „���� rr►rlo: Efficient Mortgages. 0 Home I SEC�%m Piem send web site comtnettts and bug reports toVDia^ems l(.1�'\I. \\'\� C?� (� ;`r\•� Ci;lTo T\' IIC �C •I nn(,�C F1T}T • • V'U�L O fDING TECMNOLOGr STATE AND C O M M N N 1 T r PROGRAMS Building Energy Codes &Products T+ ' CODES L Texas—DOE Status of State Energy Codes STANDARDS Commercial: None except for state-owned buildings and state - supported institutions, which must comply with a modified ASHRAE/IESNA 90.1-1989; can use COMcheck to show compliance. The State Energy Conservation Office (SEGO) will recommend to the Comptroller of Public Accounts (CPA) the adoption of the IECC 2000 for residential state-owned new buildings. SECO will also recommend to the CPA the ASHRAE Standard 90.1-1999 as the new version of the Texas Design Standard for new institutional state-owned buildings. Adoption Process: For buildings other than state-owned buildings, energy codes must be adopted by local code jurisdictions to be enforceable. Such adoption is normally achieved through a vote of the city council or the local government adoption process. Depending on the form of government, the mayor may be required to sign the law. Most local jurisdictions adopt,either the Standard or Uniform Building Codes as their building code, but a few adopt the National Building Codes t!!n�:.0 �� �I p�.a.� (1 (�•' n��.•'I11 t1 i/'i!T!AC/..nft�C Cf•mri...,�0 /�'1.n�ri..�nCJp••�rnq /�••.r... .. t.. Primary Technical Contact: ise+Fci,+olr+wl►t1 Felix Lopez Comptroller of Public Accounts State Energy Conservation Office (CPA/SEGO) 111 E. 17th Street LBJ State Office Bldg. Room "'1114 Austin, TX 78774 .��is�.,llct . tt,. Skates PH: (512) 463-1080 FX: (512) 475-2569 EMAIL: felix.lo ez nt7c a.state.tx.us State Agency/Office Head: Dub Taylor, Director, Texas State Energy Conservation Office, (512) 463-1931 Other Contact(s): Pam Groce, Texas State Energy Conservation Office, (512) 463-1889 State Web Site(s): State Energy Conservation Office: www,seco.cpa.state.tx.us Current Status: Residential: None except for low-rise state-owned or buildings, which must -funded comply with the 1993 MEC; to show compliance. can use MECcheck Commercial: None except for state-owned buildings and state - supported institutions, which must comply with a modified ASHRAE/IESNA 90.1-1989; can use COMcheck to show compliance. The State Energy Conservation Office (SEGO) will recommend to the Comptroller of Public Accounts (CPA) the adoption of the IECC 2000 for residential state-owned new buildings. SECO will also recommend to the CPA the ASHRAE Standard 90.1-1999 as the new version of the Texas Design Standard for new institutional state-owned buildings. Adoption Process: For buildings other than state-owned buildings, energy codes must be adopted by local code jurisdictions to be enforceable. Such adoption is normally achieved through a vote of the city council or the local government adoption process. Depending on the form of government, the mayor may be required to sign the law. Most local jurisdictions adopt,either the Standard or Uniform Building Codes as their building code, but a few adopt the National Building Codes t!!n�:.0 �� �I p�.a.� (1 (�•' n��.•'I11 t1 i/'i!T!AC/..nft�C Cf•mri...,�0 /�'1.n�ri..�nCJp••�rnq /�••.r... .. t.. 4 is (NBC)Rhe ener codes or t 9Y standards are usuaHy•adopted by reference in the applicable building code (e.g., the MEC is adopted by reference in the NBC and in an Appendix of the SBC and UBC.) For state-owned or 4unded buildings, the provisions are adopted through the state's administrative process of publication, public comment, and hearings. Compliance Method: For state-owned or -funded buildings, the design professional submits a completed compliance statement and certification to the cognizant state agency that the design is in compliance with the Texas Design Standard or the MEC (as applicable based on the building type.) For all other buildings in jurisdictions that have adopted energy Provisions, compliance is determined through the permit process. Typically, plans are submitted and reviewed and then buildings are inspected. After successful completion of this process, the building department issues a certificate of occupancy. Enforcement: For state-owned or -funded buildings, the cognizant state agency enforces the code. For all other buildings, the cognizant local government enforces the code. If a jurisdiction adopts an energy code, the code is enforced through the permit/inspection process for new construction and additions. Depending on the size of the jurisdiction, the same individual may perform plan reviews and inspections. Background/ History: Except for state-owned buildings, Texas has no mandatory statewide energy code for either residential or commercial buildings. Texas is a home rule state; thus, state law cannot override local law. No attempts have been made to adopt mandatory energy codes on a statewide basis. The state is encouraging voluntary adoption and use by training code officials and home builders. For state-owned commercial buildings and multi -family residential buildings over three stories in height, Texas has adapted ASHRAE/IES Standard 90.1-1989 into the Texas Design Standard. This standard, which originally went into effect in June 1989, was updated in February 1993. For state-owned residential buildings, Texas has adopted the 1993 CABO MEC. State Energy Program (SEP) Grants Awarded: 1996 $64,000: Provide code training for small commercial building code compliance and financing access for the cost of exceeding the . Model Energy Code. In addition, the Ener gy program for new residential construction will E be implemented. 1997 $73,740: Achieve adoption of the Model Energy Code by cities controlling 20 percent or more of new construction with two years. .rfn./... N1 %. a -n r{r%' nn� /h•tlir+.Tn�/ nriIC CT•Inr+•._4r/!'..: 1999 0,000: To develop a the ener the approach to Improving 9y efficiency of the housing stock in Texas. Residential Construction (New Building permits): Single Family Multi -Family 1999: 100143 44771 1998: 99831 56898 1997: 82180 43794 Commercial Construction (Millions of Dollars): 1999: Not available 1998:15776 1997:12723 Search Contacts Home U.S. Department of Energy Last updated: 18 April 2001 ' dr" nn�'�1111 �('II t1 ,�C /nn�oC f�•inr:..��: /h��i lri:., n�/�r.�rn-/��.. �... . 0 0 EXHIBIT E OFFICE OF HOUSING AND ECONOMIC DEVELOPMENT SUBRECIPIENT CONSTRUCTION POLICIES These policies are intended to assist those public entities receiving Harris County Community Development Block Grant and Home Investment Partnerships Program funds. They will facilitate the entity's understanding and compliance with applicable federal and county regulations, policies and processes where the entity is responsible for design, bidding and construction contract administration. If clarification is needed, call Dan Adame at 713-747-0132. If federal funds will be used to retain consultants, the entity must advertise Request for Qualification Statement (RFQ). The entity shall submit the draft RFQ for approval prior to advertisement. The responding consultant's SF 254 and 255 qualification statements must be submitted for review to Office of Housing and Economic Development (OHED) prior to commissioning the consultants. Upon approval by OHED, the entity may retain consultant(s). 2. The entity will advertise for bids and award contracts in compliance with the State of Texas bidding procedures and the Sections listed below from 24 C.F.R. § 85: Section 85.20 Standards for Financial Management Systems (Except subparagraph (a) Section 85.36 "Procurement," except paragraph (a) Section 85.42 "Retention and Access Requirements for Records" 3. The preliminary drawings must be within the previously approved project scope. All construction projects must comply with Harris County requirements and the policies and procedures of Harris County's Department of Public Infrastructure, Purchasing Agent, Auditor and OHED. 4. Entity will incorporate into the construction documents any and all Department of Housing and Urban Development requirements. Final documents must be approved by OHED. Prior to award of contract, OHED will review the bid documents, the bidder's qualification statements, minority business plan and financial statements to ensure that the contractor has a good contracting record, adequate capitalization, equipment, and personnel to successfully complete the project, meets minority participation goals and that the bidder has not been debarred by HUD from working on federal contracts. 6. The entity, the consultant, and OHED will conduct a pre-bid meeting and a pre - construction conference with the contractor(s). _ .. 7. The entity shall, at its sole expense, furnish the necessary inspection personnel to assure itself of compliance with the construction contract. The Architect or Engineer of record will have final authority in all construction disputes. 34 0 0 8. The entity and contractor will be responsible for preparing monthly pay requests, to be reviewed by the consultant prior to submittal for payment. Preparation will consist of a site meeting with the consultant and the contractor's representative. to accurately determine the percentage completion of various components of the work and time used. The entity. the consultant, and the contractor will be required to sign each monthly estimate prior to being processed for payment. 9. All change orders must be approved in writing by the entity prior to any alterations or modifications of the work or specifications. The entity will be responsible for any increase in cost based on any change order required due to errors and/or omissions. Total aggregate Changes in Contract will not exceed twenty five percent of the original contract amount. 10. Entity will submit or cause to be submitted, weekly payrolls for general contractor and all subcontractors to OHED for review. OHED will review all payrolls and conduct worker interviews and will hold the general contractor responsible for compliance with labor, EEO, and minority business requirements. The County through OHED reserves the right to withhold funds from the general contractor to compensate workers in accordance with the appropriate wage scales as promulgated by the U.S. Department of Labor. 11. The entity must submit the following documentation to OHED REkE to award of the construction contract: Copy of the bid advertisement. Copy of the bid tabulations. Copies of all bids submitted. Copies of bidders' bid bonds or cashiers checks. Copy of the minutes and attendance roster of the bid opening. Consultant's recommendation of contractor. Request authorization from OHED to award project to lowestibest bidder. 12. The entity must submit the following documentation after award of contract: Copy of the performance, payment and maintenance bonds. Copy of "Certificate of Authority" issued by the State Board of Insurance of Texas for the Surety Company. Only companies listed in the Department of the Treasury circular #570 (most recent issue) will be accepted. Certification of bid award by the City Council/Board. Original copy of the executed contract between the successful bidder and the entity. Copy of the purchase order. Copy of subcontractor list. Schedule of values based on standard Construction Specifications Institute (CSI).format (16 divisions) and given in labor and materials listed separately per line item including overhead and profit for each. Construction schedule (Bar Chart or Critical Path Method). 35 13. The entity will not be permitted to perform any "force account work", wherein the entity uses their own employees, materials, and/or equipment. All portions of construction work will be subject to the competitive bidding process referenced above. 14. The entity's contractor shall furnish, deliver, and install one 4'-0" X 8'-0" temporary project sign according to Harris County specifications. The entity will ensure that the specifications will be made part of the project manual and the cost of the project sign will be included in all bids. 15. The entity's contractor, on all buildine projects, shall furnish, deliver, and install one 18" X 24" bronze plaque built according to Harris County specifications. The entity will ensure that the specifications will be made part of the project manual and the cost of the plaque will be included in all bids. 36 • EXHIBIT F • HARRIS COUNTY'S AFFIRMATIVE MARKETING POLICY AND PROCEDURES This affirmative marketing policy pertains to all Office of Housing and Economic Development (OHED) and all Community Housing Development Organizations (CHDOs) receiving HOME program funds for HUD -assisted housing containing five or more units. OHED will annually assess the affirmative marketing program to determine its success and will take any necessary corrective actions. The affirmative marketing requirements and procedures include the following: 1. OHED will use the Equal Housing Opportunity logotype and/or slogan iii all press releases or notices to the public or solicitations pertaining to housing of more than five units. 2. OHED will notify the local Houston Community Housing Resource Board on an annual basis of its commitment to an affirmative marketing program. 3. OHED will require owners of HUD -assisted housing of five or more units to adhere to the following: a) When advertising or listing vacancies, owners must use major and community newspapers, communitv contacts and Equal Housing Opportunity logotypes or slogan. Owners must also display the Fair Housing poster in high traffic areas on the premises of the assisted housing. b) Owners must perform special outreach to persons in the housing market area who are not likely to apply for the housing without special outreach. Targets of special outreach could include community centers, places of worship, employment centers, housing counseling aL,encies, etc. c) OHED will assess the results of efforts taken by the owners to affirmatively market the housing units. Copies of all materials used to affirmatively market the housing and records describing actions taken by the owner to affirmatively market the housing must be submitted to the OHED or on a quarterly basis. The quarterly report must also include information on families residing within the property. The family information must include the following: the number of units and monthly rent (utilities included) by bedroom size; number of tenants remaining in place; size of household and for each head of household, age, race, sex, and sender. d) OHED will assess the success of the affirmative marketing efforts. If the affirmative marketing efforts do not result in attracting eligible persons from all racial, ethnic and gender -:roues in the housing market area, OHED and will determine the necessary corrective actions. Owners that fail to comply with affirmative marketing requirements will face the possibility that housing assistance payments will be abate until corrective action is taken. If the owner fails to take corrective action in a timely manner, the remainder of the rehabilitation loan will be due and payable upon demand. 37 Is EXHIBIT G CONFLICT OF INTEREST DISCLOSURE IF NO CONFLICTS EXIST, COMPLETE THE FOLLOWING: ❑ I certify that no conflict of interest exists between Hams County and (Name of Organization) a--------------------------------------------------------------------------------------------------------------------------------- I certify that no conflict of interest exists between the subcontractors of and IF THERE IS A CONFLICT, COMPLETE THE FOLLOWING: El I certify that a conflict of interest does exist between Hams County and - ❑ --------------------------------------------------------------------------------------------------------------------------------- I certify that a conflict of interest does exist between and (Name of subcontractor) (Name of Organization) Describe the nature of the conflict of interest below: (Please identify the individual, employment, and the conflict or potential conflict [their affiliation with your organization]). Signature of Authorized Agency Official Date Typed Name and Title 38 0 • EXHIBIT H PROCEDURE EQUAL OPPORTUNITY IS THE LAV This Grantee is prohibited from discriminating on the ground of race, color, religion, sex, national origin, age, disability, political affiliation or belief, and for beneficiaries only, citizenship or participation in programs funded under the Home Investment Partnerships Investment Program (HOME) Regulations, admission or access to, opportunity or treatment in, or employment in the administration of or in connection with, any HOME funded program or activity. If you think that you have been subjected to discrimination under a HOME funded program or activity, you may file a complaint within 180 days from the date of the alleged violation with the Grantee's Equal Opportunity Officer (or the person designated for this purpose). If you elect to file your complaint with the Grantee, you must wait until the Grantee issues a decision or until 90 days have passed, whichever is sooner. If the Grantee has not provided you with a written decision within 90 days of the filing of the complaint, you need not wait for a decision to be issued, but may file a complaint with Office of Housing and Economic Development's (OHED) Director within 30 days of the expiration of the 90 day period. If you are dissatisfied with the Grantee's resolution of your complaint, you may file a complaint with a designate hearing board. Such complaint must be filed within 30 days of the date you received notice of the Grantee's proposed resolution. Grantee Contact: Office of Housing and Economic Development (OHED) Monica Cisne, Equal Opportunity Officer 8410 Lantem Point Houston, Texas 77054 Telephone: (713) 747-0132 TDD: (71 -3 695-2395. 39 • GRIEVANCE INFORMATION FORM PLEASE PRINT OR TYPE ALL INFORMATION is I. Complainant: Please provide the following information concerning the person or organization filing the complaint. Social Security Number: Name: Telephone Number(s): Address: Home: Work: II. Action Complained of: Please describe in detail the action(s) that you are complaining about. (Attach additional pages if necessary) Do you believe that your complaint involves a violation of the HOME regulations, the HOME grant or other agreement under the HOME Act? _ Yes _ No If Yes, please reference the provision(s) violated: III. Respondent(s): Please name the person(s) or organization(s) that you believe to be responsible for the action(s) that you complained about: Name(s): Address(s): Explain how each Respondent is responsible for the action(s) that you are complaining about:(attach additional pages if necessary) Complainant's Signature Date 40 COMPLAINT PROCESS Purpose. This complaint process provides for the prompt review and equitable disposition of complaints alleging violations of the HOME Act. These procedures are used by Office of Housing and Economic Development (OHED) and by all its contractors and or subrecipients. General Policy 1. A complaint, as recognized by this process, is defined as an individual or organization's allegation of a violation of: the HOME regulations; the County's contract with the Department of Housing and Urban Development;. and OHED contracts and/or subrecipients. A complaint must be filed within one year of the alleged occurrence. 2. The person or organization filing a complaint will be free from restraint, coercion, discrimination, or reprisal. Complaints are not considered as reflecting unfavorably on either the complainant or management, but are to be considered the expression of a lawful right. Complaints not covered by thisyrocedure: 1. Complaints alleging discrimination because of disability, race, color, national origin, age, sex, religion, political affiliation or belief, retaliation, and citizenship must be filed within 180 days from the date of the alleged discrimination. The complaint must be filed using the Department of Housing Labor, Directorate of Civil Rights, Complaint Information Form. This complaint form may be obtained from any HOME Project Monitor, or by contacting OHED Equal Opportunity Officer. 2. All information and complaints involving allegations of fraud, abuse, or other criminal activity shall be reported directly and immediately to OHED at (713) 747-0131. 3. Complaints that do not allege a violation of the Act. Procedure Participants are encouraged to resolve complaints informally by talking with the contractor and/ or subrecipient. However, if a participant decides to pursue a complaint formally, the complaint must be submitted to OHED in the manner described below. The complainant must first file a written, signed complaint with the OHED Complaint Officer. The complainant may simultaneously pursue resolution of the complaint through the internal complaint procedures of the training or employing institution where the complainant is stationed or through the federal or state agencies having jurisdiction over the substance of the complaint. Upon receipt of the complaint by OHED, the complainant will be provided written notification that the complaint has been received and the timetable under which it will be processed. The complainant has the right to a hearing within 30 days of the receipt of the complaint by OHED. The complaint officer will attempt to reach an informal resolution of the complaint prior to the hearing. The entire complaint process must be completed within 60 calendar days of the receipt of the complaint by OHED. Recipient Contact: Office of Housing and Economic Development (OHED) ,Monica Cisne. Equal Opportunity Officer 8410 Lantern Point Houston, Texas 77054 Telephone: (713) 747-0132 TDD: (713) 695-2395 41 Ll EXHIBIT I HARRIS COUNTY INSPECTION REPORT 0 • 0 SINGLE-FAMILY HOME INSPECTION REPORT ADDRESS OF PROPERTY: Year Build: EXTERIOR General: Presence of house numbers. House number must be visible from street. Presence & operation of doorbell or door knocker. Accessibility: Accessibility porches, decks & driveways. Check for stability in steps & handrails. Presence of handrails, broken sidewalks. Presence of GFCI outdoor receptacles on new construction. Foundation: Type of foundation & any irregularities in foundation. (slab. pier/beam. accessibility, cracking, ventilation). Site Drainage: Observe the drainage pattern of the entire property. The eround should sloe away from all sides of the building. SidingfBrick: Conditions of exterior walls of home. TX -De of siding. .fin% irregulanties such as cracks in brick. missing brick, rotted ood. missing vinyl siding. rotted soffitt, rotted cornice. Roof' Exterior: Condition &- type of roof covering. Heieht of roof. proper flashino, gutters. downspouts. Presence- of ventilation (turbines. ridge, soffit, gable vent) Rooftop penetrations. drip flashing.skvlight flashing. Chimney check for chimney cap. proper flashing & chimney where applicable). • SINGLE-FAMmY ROME INSPECTION REPORT EXTERIOR Security: Fencing (yes or no) Observe overall conditions. Check for stability of fence system, type of fence system. Inspect wood fences for signs of rot or insect infestations. Inspect metal fences for rust. Inspect gates operation & their associated hardware operable. Exterior Doors: All doors leading to the outside & into the garage must be either metal or solid core. v All doors leading to the outside & into the garage must have deadbolts & locksets. If the deadbolt is within 3' of a window, the deadbolt must be double cylinder. All doors must operate properly. Storm doors must be operable. Windows: Check for operable, lockable & screened windows. Check for broken glass: check for rotted wood around windows; wood around windows: check the window material: check for signs of window leaks. W'hether burglar bars are present. E.r•istins! burglar alarm system. SINGLE-FAMILY HOME INSPECTION REPORT INTERIOR rnauwav• Any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of Iight fixtures. Presence of sufficient electrical outlets. Anv exposed wiring. Presence & operation of smoke detector. Living Room: Anv irregularities in sheetrock walls & ceilings. Type & any. irregularities in flooring. Operation of light fixtures. Presence of sufficient electrical outlets. Presence & operation of smoke detector. Fireplace: door/screen Operation of damper. Operation of gas lighter & valve. Presence of gas iet & type of valve (older homes). Kitchen: Anv irregularities in walls & ceilings. T"pe & any irregularities in flooring. Operation of light fixtures. Presence of sufficient electrical outlets near water source; presence &_ operation of GFCI receptacles. Condition of cabinets & countertops. Operation of dishwasher. Operation of vera fan. Operation of ku,:hen sinklhot/cold water, sprayer, valves, disposal Type of stove( � as or electric). Proper las _jet connection. Operation of sto\e & oven /built in microwave. Presence of anti rip device. SINGLE-FAMILY HOME INSPECTION REPORT INTERIOR Bath 1: Any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. Presence of sufficient electrical outlets near water source; presence & operation of GFCI receptacles. Condition & presence of mirror, cabinets & countertops. Operation & stability of toilet. Presence of leaks around toilet. Operation of lavatory sink. Presence of leaks around sink (hot/cold water, shut-off valves). Condition of bathtub & tub surround (hot/cold water, bath faucet, drain. overflow, showerhead). Presence of unventilated vas wall heaters. Presence of vent fan or window. Presence & operation of door. Bedroom 1: Any irregularities in sheetrock walls & ceilings. Tvpe & any irregularities in floorina. Operation of light fixtures. Type of light fixtures. Presence of sufficient electrical outlets. An-, exposed wiring. Presence of closet: operation of closet door. Presence & operation of door. Presence L operation of smoke detector. • SINGLE-FAMILY HOME INSPECTION REPORT INTERIOR Bath 2: Any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. Presence of sufficient electrical outlets near water source; presence & operation of GFCI receptacles. Condition & presence of mirror, cabinets & countertops. Operation & stability of toilet. Presence of leaks around toilet. Operation of lavatory sink. Presence of leaks around sink (hot/cold water, shut-off valves). Condition of bathtub & tub surround (hot/cold water, bath faucet. drain. overflow, showerhead). Presence of unventilated gas wall heaters. Presence of vent fan or window. Presence & operation of door. Bedroom 2: .any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. Type of light fixtures. Presencle of sufficient electrical outlets. jAn% exposed wiring. !Presence of closet. operation of closet door. Presence & operation of door. Presence & operation of smoke detector. SINGLE-FAMILY HOME INSPECTION REPORT INTERIOR Bedroom 3: Any irregularities in sheetrock walls & ceilings. Tvpe & anv irregularities in floorina. Operation of light fixtures. Type of light fixtures. Presence of sufficient electrical outlets. Any exposed wiring. Presence of closet; operation of closet door. Presence & operation of door. Presence & operation of smoke detector. Bedroom 4: Any irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. - Tvpe of light fixtures. (Presence of sufficient electrical outlets. Any exposed wiring. Presence of closet: operation of closet door. Presence &- operation of door. Presence &- operation of smoke detector. Attic: T%•P. of access to attic. Operation of pull down stairway. Presence c- type- of insulation. Whether exposed piping is insulated. Whethcr plumbing vents extend thru roof. .•fin% missin, structural/frame requirements. 0 - 0 SINGLE-FAMILY HOME INSPECTION REPORT GARAGE Garage: Anv irregularities in sheetrock walls & ceilings (some garages may not have sheetrock on exterior walls). Type & any irregularities in flooring. Presence of sufficient electrical outlets near water source; presence & operation of GFCI receptacles. Any exposed wiring. Operation/condition of overhead garage doors & openers. Presence of pull down stairway. Presence & operation of smoke detector. Utilitc room/laundry area: Anv irregularities in sheetrock walls & ceilings. Type & any irregularities in flooring. Operation of light fixtures. Presence of laundry plumbing connections. Presence of gas i -1t & type of valve. Ventilation on dryer. Presence of sufficient electrical outlets. presence & operation of GFCI receptacles. Presence of cabinet. An%• exposed wiring. Presen.:: & operation of smoke detector. Main Electrical Panel: Type of service (underground. above ground). Whether weatherhead. drop & mast meet code requirements. Check for presenze of grounding. Minimum 100 AMP main switch. Check that panel is secure to surface. Check for presence of inside panel. Check for missing breakers. Condnion & operation of panel box cover. 0 SINGLE-FAMILY HOME INSPECTION REPORT HVAC HVAC Compressor: Check for presence of a/c compressor disconnect adjacent to unit: required unless_ feet from main service electrical panel. Check for presence of a/c drain line. Compressor must be elevated on a sturdy flat surface (concrete or wood). HVAC System: Location of unit. Whether unit is gas or electric. Ase of unit. Cut off switch. (required on new construction). Any exposed wiring. Location of thermostat. Ventilation piping routing & termination. Gas supply line shut off. Type & condition of ductwork. WATER HEATER Water Heater: Location of unit. W'hether unit is las or electric. Size of unit. Whether unit is elevated. Proper plumbin.c, connections on unit. Proper electrical connections on unit. Proper gas connection on unit. Pr:sence & proper installation of drain line. Proper venting on unit. Temperature pressure relief valve installed. lrresulanties - burner assembly/flame/heating unit. If eater heater is in a separate room by itself. 1s the deur to the room vented? Is the door permanent? If water heater in a separate room of home (ext), is door lockable? 0 0 SINGLE-FAMELy HOME INSPECTION REPORT PRIVATE & PUBLIC SEWAGE Private Water Wells: Location of pump. Operation/performance/pressure switches. Type of storage equipment. Treat detained structures as a separate unit. Check foundation. roofing, siding, brick, windows, doors, electrical service & Dlumbin2. On -Site Sewerage Facilities: Type of system. Any accessible/visible tank(s) or components. .env visible effluent seepage over tanks. .any visible effluent seepage over fields. Proper site drainage in system area distance in feet from: water well. cisterns. supply lines, streams, ponds, lakes, building property lines, easements, etc. If new system. check- with County Health De t for permits. DETACHED STRUCTURES Detached Structures: Treat detained structures as a separate unit. Check foundation. roofing, siding, brick, windows, doors, electrical service & Dlumbin2. FIREPLACE & CHIMNEY Fireplace & chimney: What is the chimnex structure made of? Geek for :nimne� Cap. proper flashing & chimney cricket -.;here aDP;1,:ahle). EXHIBIT J Builder's Certification of Energy Conservation Standards 43 Builder's Certification of Energy Conservation Standards ------------------------------------------------------------------------------------------------- Property Address --------------------------------------------------------------------------------------------------- Buyer I hereby certify that improvements constructed on the above captioned Property meet or exceed the energy conservation standards of the 1992 Council of American Building Officials Model Energy Code, incorporated in the HUD/VA Minimum Property Standards for energy efficiency by the 1992 Energy Policy Act. nuimer E� EXHIBIT K REGULATION REFERENCE INFORMATION 1. 24 C.F.R. § 92- HOME Investment Partnerships Program Final Rule 2 24 C.F.R. § 92.203 (b)- Income Determinations 3. 24 C.F.R. § 92.205(a)(1)- Eligible Activities 4. 24 C.F.R. § 92.206- Eligiple Project Cost 5. 24 C.F.R. § 92.206(d)(6)- Related Soft Cost- Staff and Overhead 6. 24 C.F.R. § 92.207 (b)- Eligible Administrative and Planning Costs -Staff and Overhead 7. 24 C.F.R. Part 35 8. 24 C.F.R. § 85.43 Suspension/Termination 9. 24 C.F.R. § 92.218- Matching Contribution Requirements 10. 24 C.F.R. § 92.220- Form of Matching Contribution 11. 24 C.F.R. § 92.4- Wavier and Suspension of Requirement for Disaster Areas 12. 24 C.F.R. § 92.251- Property Standards 13. 24 C.F.R. Part 8 14. 24 C.F.R. Part 3280 15. 24 C.F.R. § 92.254(a)(5)(ii)- Resale and Recapture 16. 24 C.F.R. § 92.254(a)(4)- Periods of Affordability 17. 24 C.F.R. § 92.257- Religious Organization 18. 24 C.F.R. § 92.351- Affirmative Marketing, Minority Outreach Program 19. OMB Circular A-110- Uniform Administrative Requirements for Grants & Cooperative Agreements 20. OMB Circular A-122- Final Revision of OMB Circular A-122" Cost Principles For Non Profit Organizations 21. 24 C.F.R. § 92.508- Recordkeeping 22. 24 C.F.R. § 92.505- Applicability of Uniform Administrative Requirements 23. Subpart K of 24 C.F.R. Part 92 Program Administration 24. 24 C.F.R. § 92.503(b) Repayment 25. 24 C.F.R. § 92.205 - Eligible activities: General 26. 24 C.F.R. § 92.208- Eligible Community Housing Development Organization CHDO-operating expense and capacity building costs 26. 27. 24 C.F.R. § 92.503- Program Income, Repayment and Recaptured Funds 24 C.F.R. § 85.31 Disposal of Property 28. 24 C.F.R. § 85.32 Property Ownership/Revert 29. OMB Circular A-110, Subpart C- Uniform Administrative Requirements for Grants & Agreements with Institutions of Higher Education, Hospital and Other Non -Profit Organization- Post 0. 24 C.F.R. § 92.350- Award Requirements Other Federal Requirements 31. 24 C.F.R. § 92.353- Displacement, Relocation and Acquisition 32. 24 C.F.R. § 92.354- Labor 33. 24 C.F.R. § 92.355- Lead -Based Paint 34. 24 C.F.R. § 92.356- Conflict of Interest 35. 24 C.F.R. § 58.35(b) Categorical Exclusion 36. 24 C.F.R. § 58.34 Determination of Exemption E� New single-family ngl mily construction I* a HOME Pr*ogram for the Northside a Sponsored by HUD, OHED, City of La Porte Northside Budget.. Dollars allocated by Council Dollars reserved for admin use HOME program 25% match Agreements with consultants $120,000 ($229). ($87,500). ($22,500) Is $9 BALANCE 7713 • .+ia t . ofbuilding sites N �: .61 i4, M�53 iYL�R 1�J'i.�.�.3 '- L Je VUESf P`rgt9 ; p I` 3 r r < tZ let 77 . - o _ •, -4 amu: "�.�� ww �" ,q,�c .�L'�'r F'-. r T x' .�. t4 +�'P _ � J" _i � y� � •4 1 , - i � F � . t = � � �.b•' -� :.aS -.}y > „�'� amu- ' ,�J i t �f.Is ' ��"L�;' � � Houston 0 3 bedrooms 2 full baths formal living room 2 car garage large master family room •ki awl: � - .. , �+L s• T ..f ,�' 1'�• --�• .. .. .. + � .. - .sr - is - '-! '1° 520 s ft , q .�88, 3 bedrooms 2 full baths formal living room 2 car garage large master family room all y!�. „ �y;- T� ,• r ark Roval a 3 bedrooms 2 full baths 2 car garage arched entry country kitchen formal dining large family room 0 0 Standard features in all homes General • landscape package with fully sodded front lawn • durable overhead 2 car garage doors • wood fencing with access gate • engineered concrete slab foundation • brick veneer exterior on 3 walls • hardiplank fiber cement siding on rear wall • composition class "a" fire rated roof • hardy vinyl entrance • screens for all operable windows • concrete patio Energy efCciency • energy efficient central heating and air conditioning -rated 10 seer • insulation well above industry standards - r30 in ceiling • smoke detectors in living room and all bedrooms • steel insulated front and rear doors Interior • double lock front doors • appliances -dishwasher, disposal, vent -a -hood, cooking surface and over • ice maker connection • two (2) pre -wired telephone jacks • gfci wiring in wet areas • two (2) pre -wired cable tv connections • carpet in bedrooms and living areas • cathedral and/or raised ceiling in most areas • hard vinyl flooring in kitchen, wet areas, baths, high traffic/entry ways, and utility room • ceiling fans with light kits in living room and master bedroom • decorator marble lavatories in all baths • shower over tubs Upgrades - available with some plans • garden tubs • french doors • jaccuzzi tubs • fireplaces • shower stall Standard features will be provided according to Architectural plans and specifications. These standard features can change without notice. y' w CITY OF LA PORTE DOWN PAYMENT AND CLOSING COSTS ASSISTANCE / HOME PROGRAM Summary rEXAs The City of La Porte received grant funds, made available by the Harris County Office of Housing and economic Development (OHED), from the U.S. Department of Housing & Urban Development (HUD) through the Home Investment Partnership (HOME) Program. These funds will be available to assist qualified low-income homebuyers with down payment and closing costs for 11 newly constructed single-family units in La Porte's older neighborhoods, specifically the Northside neighborhood. REQUIREMENTS: • The initial purchase price must not exceed $115,000. • The home must be located in an older established neighborhood, specifically the Northside, within the corporate limits of La Porte. • This Program is on a first come first served basis. • Buyer(s) must be able to qualify and obtain a Mortgage Loan. • The home must remain the principal place of residence of the buyer(s) for at least 10 years. • Buyer(s) cannot have cash assets sufficient to pay down payment and closing costs. • Buyer(s) family gross income cannot exceed the following amounts by family size Family size: 1 2 3 4 5 6 7 8 Income: $33,400 $38,150 $42,900 $47,700 $51,500 $55,300 $59,100 $62,950 (NOTE. • Income requirements will be modified to ensure compliance with HUD's latest guidelines) • The housing must meet minimum Housing Quality Standards (HQS), all applicable local codes, ordinances, zoning ordinances, and the cost-effective energy conservation and effectiveness standards as outlined by HUD. For more information contact the Program Administrator with the Southeast Texas Housing Finance Corporation (SETH) at (281)-484-4663. You may obtain a program application at 12621 Featherwood, Suite 280 Houston, TX or Sethfc.com. CITY OF LA PORTE PLANNING DEPARTMENT 604 W. Fairmont Parkway, La Porte, TX 77571 Phone: (281) 471-5020 I Fax (281) 471-1868 www.d.la-aorte.tcus C CITY OF LA PORTE DOWN PAYMENT AND CLOSING COSTS ASSISTANCE HOME PROGRAM Harris County, Texas (the County), City of La Porte (the City), through Southeast Texas Housing Finance Corporation (SETH), established a Down payment and Closing Costs Assistance Program (the Program). The Program is funded through a HOME grant from the U. S. Department of Housing & Urban Development under the Home Investment Partnership (HOME) program. This Program is designed to assist low-income homebuyers with the purchase of a single-family residential property. GENERAL PROGRAM OVERVIEW The Program is designed to assist low-income homebuyers to purchase affordable, safe and decent housing. The Program is available within older established neighborhoods, specifically the Northside area, within the corporate limits of La Porte, Texas. SETH, in cooperation with Frye and Associates, will administer the Program on behalf of the City. Applicants will select one of the 11 newly constructed homes that they would like to purchase. Mortgages will be provided by conventional low-income loan programs and FHA or VA home loans. The direct assistance to the homebuyer will be $23,000, and will be in the form of a deferred forgiveness loan. The loan will be forgiven after a ten (10) year period (the recapture period) if all Program requirements have been met. A secondary promissory note will be executed by the homeowner, in favor of the County, securing the deferred forgiveness loan. The homebuyer should anticipate contributing towards down payment costs. In addition, a minimum investment from the homebuyer is required. Eligible properties are the 11 newly constructed single-family properties built by the builder (selected by the City of LaPorte) in an older established neighborhood, specifically the Northside, that are for sale. The property must meet Section 8 Housing Quality Standards (HQS), as well as all applicable local building codes, ordinances, zoning ordinances, and the model energy code. The maximum purchase price of the home cannot exceed $115,000 and financing is available from a lender selected by the City of LaPorte. Each participant must successfully complete the homebuyers' course prior to loan closing. Frye and Associates will provide homebuyer and homeowner counseling. PROGRAM ADMINISTRATION The Program will be operated in accordance with all applicable rules and regulations of the HUD, the County, the City, and SETH. Administrative procedures used to implement the K Program will be added or modified to meet any changes made to such rules and regulations of the above entities that may occur over time. Administrative authority for operation of the Program will rest with the Program Administrator (Administrator) appointed by SETH' s Executive Director and approved by the City. The Administrator will be responsible for carrying out the processing of applications for assistance, recommendation for Program assistance, identification of property deficiencies, preparation of security documents and any other required forms, maintenance of program records as required by HUD and/or the County, and marketing and public relation efforts as needed to promote the Program. HOME BUYER ELIGIBILITY CRITERIA Eligible applicants for the Program must meet the following general qualifications: Income Limit. Each family's total gross earnings must be equal to or less than 80% of median family income for the area, adjusted for family size, as defined by the most recently published HUD Income Limits. The income limits for the Harris County area are as follows: Family Size: 1 2 3 4 Income: 33,400 38,150 42,900 47,700 Family Size: 5 6 7 8 Income: 51,500 55,300 59,100 62,950 (NOTE: Income requirements will be modified to comply with most cumentHUD's criteria.) Other income limits. The applicant cannot have cash assets sufficient to pay down payment and closing costs. SELECTION PROCESS Application and Selection Process 1. The prospective homebuyers will submit a Program Application to Southeast Texas Housing Finance Corporation with a $50.00 non-refundable application fee. Applications will be date stamped upon receipt and processed in order of receipt. 2. The Program Administrator will determine the eligibility of the applicant based upon rules and regulations governing HOME programs. Administratively incomplete applications will be rejected if they are not complete within 15 days of submission. After review and approval by the City, the applicant is determined to be ineligible; the Program Administrator will issue a letter of ineligibility. 3 0 3. After review and approval by the City, the Program Administrator will send a Letter of Commitment for those eligible applicants detailing the necessary information that must be submitted within 30 calendar days of the date of the commitment letter. If the applicant cannot complete the necessary steps within the 30 -day period, the Commitment of funds will be revoked. A written request may be submitted for an extension period not to exceed 15 calendar days. An extension letter will be issued if circumstances justify and if approved by SETH. 4. Prior to the expiration of the commitment period, all of the following must be completed. A. The property must be approved by the Program Administrator. B. The applicant must submit an executed Real Estate Purchase Agreement. C. The applicant must submit a conditional approval from a lender. D. The program administrator must receive third -party verification of all family income. 5. Prior to loan closing, all of the following must be completed. A. The family must successfully complete a homebuyer education course. B. The home must pass Housing Quality Standards (HQS) and all applicable building requirements. OTHER PROGRAM REQUIREMENTS Principal Residence. Homebuyers will be required to certify, at the time they acquire an ownership interest in the unit, that they intend to occupy the unit as their principal residence during the recapture period. Subleases, even if temporary will not be allowed. Occupancy will be determined through verification of utility consumption, or other verifications determined to be acceptable by SETH. This list will be forwarded to the City. Homebuyer's Counseling Certification. The borrower must successfully complete a homebuyer's counseling course. This course is available through Frye and Associates; however, the course can be administered by other approved organizations including SETH. Recapture Provisions. If the homebuyer sells the property within the recapture period, the full amount of the forgiveness loan that is not forgiven is subject to recapture, in accordance with HOME regulations. This provision will be enforced by requiring that the HOME recipient execute a note in favor of the County. Form of Ownership. Fee simple title is the acceptable form of ownership. All other forms of ownership are subject to written approval by SETH. 4 • Income Verification. Although the financial institution's process for mortgage loan approval will include an evaluation of income for the applicant, SETH will use the definition for income according to criteria set out by HUD to determine total family income. SETH will use the applicant's current income, including any overtime, to determine income eligibility. Income verification will be valid for a six-month period following receipt of information. If the homebuyer does not occupy the property within six months, income must be re -verified. ELIGIBLE PROPERTY CRITERIA Property eligible for purchase under the Program is a newly constructed single-family dwelling, located within an older established neighborhoods, specifically the Northside. 1. The purchase price should not exceed $115,000. 2. The house must meet Housing Quality Standards as well as all applicable local building codes, ordinances, zoning ordinances, and the model energy code. 3. The property site must be approved by the Program Administrator to comply with Program intent. The property should not be located in, or be in immediate proximity to a new subdivision. 4. As a requirement for receipt of HOME funds, an appraisal of the property by the financial institution providing the mortgage is necessary. 5. Owner -financed properties are not eligible under the Program. 6. If the property is located within the 100 -year floodplain designated by the currently published Federal Emergency Management Agency flood plain maps, flood insurance must be maintained for the term of the loan. 7. Prior to loan closing, the property must meet HUD Section 8 Housing Quality Standards (HQS Standards). SETH will provide for all HQS inspections at a cost of $75.00 per home. This is also an eligible closing cost. LOAN TERMS SETH shall use a ten-year deferred forgivable loan note, to enforce the principal residence requirement during the five-year recapture period. The loan will be a nonrecourse, no -interest, ten-year forgivable loan. The loan shall have a second lien holder position, and will allow for recapture of the HOME assistance out of the net sales proceeds if the homeowner sells or refinances the dwelling before the end of the recapture period. If the HOME assisted property is sold after the end of the recapture period, no recapture provisions apply. If the net proceeds are not sufficient to recapture the full HOME investment plus enable the homeowner to recover the amount of the homeowner's down payment, principal payments, and any capital improvement 5 investment, the HOME investment to be recaptured may be pro rated based on the time the homeowner has owned the home and occupied the unit measured against the required recapture period. However, the homeowner will not be allowed to recover more than the amount of the homeowner's down payment, principal payments and any capital improvement investment. The terms of the note will be extinguished if the private lender forecloses. The note will be secured by a recorded Deed of Trust. SETH will charge a $250 processing fee for the creation of the second lien deed of trust, note and all other documents prepared for closing. This will be an eligible closing cost to be paid from assistance funds. UNIFORM RELOCATION ACT REQUIREMENTS To comply with requirement of the Uniform Relocations Assistance and Property Acquisition Policies Act of 1970, sellers of properties purchased with Program funds must sign the form "Notice of Uniform Relocation Act Requirements". This form informs the owner -seller of the fair market value of the property and that, although federal funds are involved in the purchase, the buyer does not possess the power of eminent domain in acquiring the property. FAIR MARKETING PROCEDURES If requested by the City, SETH will meet with the designated financial institutions and real estate agents to explain the Program, and to request their participation. A brochure will be published, directed to potential applicants of the Program. The brochure will set out Program objectives and requirements. The brochure and all application materials will be made available in English as well as Spanish. The brochure will be distributed in accordance with the fair housing outreach plan. Program information will also be made available to the public through local newspapers. Press releases will be distributed to places that will reach potential low-income homebuyers such as local newspapers, social service agencies, churches, the local chamber of commerce, supermarkets, apartment buildings, and other public places. Frye and Associates will participate in these outreach efforts. ENVIRONMENTAL APPROVAL AND POLICY STATEMENT Every HOME funded house will pass the HOME environmental clearance criteria. COMPLAINT RESOLUTION PROCEDURES Should a complaint or dispute regarding determination of eligibility arise, the request for a reevaluation must be submitted in writing within ten working days of notification of ineligibility. The SETH Program Administrator and the City will make final rulings on all complaints. 6 7 EQ UAL N OUSINO r� L Mail or deliver to: Single Family Program Administrator, Southeast Texas Housing Finance Corporation, 12621 Featherwood, Suite 280, Houston, Texas 77034. $50 application fee must accompany this application. DOWN PAYMENT ASSISTANCE PROGRAM HOME Program Application Harris County APPLICANT: Name (Last) (First) (Middle) Address Landlord's Name Landlord's Telephone Landlord's Address Home Telephone Business Phone Marital of Birth----------Age- Social irthAge Social Security # Number of Dependents Employer Employer's Telephone Employer's Address Your Occupation Length of Service Yearly Income Any Other Income(SSI, Child Support etc.) ITEM Checking Checking Savings Other ASSETS VALUEBALANCE NAMEIADDRESS OF ACCOUNT# DEPOSITORY • CO -APPLICANT: Name (Last) (First) (Middle) Address Landlord's Name Landlord's Telephone Landlord's Address Home Telephone Business Phone Marital Status Date of Birth-------------Age- irthAgeSocial SocialSecurity # Number of Dependents Employer Employer's Telephone Employer's Address Your Occupation Length of Service Yearly Income Any Other Income(SSI, Child Support etc.) ITEM Checking Checking Savings Other ASSETS VALUE/BALANCE NAME/ADDRESS OF ACCOUNT# DEPOSITORY 0 Please list the names, ages and the relationship to the head of household that will reside in your home. (Name) (Age) (Social Security #) (Relationship) If any of the above family members or other individuals living in the home have income, please provide the source, amount and the employer's address and telephone number: Address of the property you intend to purchase (note: must have street or road address, post office box numbers or rural route numbers are not sufficient): Please provide the following information if known at this time: Realtor Lender Builder (if any) Telephone # Telephone # Telephone # I understand that the assistance provided by this program is a five year deferred loan, which requires no payments during the five year term of the loan, and that I must keep, the property as my principle residence in order to have the loan forgiven at the end of the five years. The willful falsification of any of the above information may subject the applicant(s) to denial of participation in this program, and may subject the applicant(s) to civil or criminal prosecution. Any misrepresentations or false statements may also cause the second lien to be callable and due upon demand Print Name of Applicant Signature of Applicant 0 Print Name of Co -applicant Signature of Applicant • 0 Ramp Area for use as tie -down parking facilities and for fifty (50) aircraft, and for two (2) T -Hangar sites, T -Hangar Site No. 1 being 7,520 square feet, and T -Hangar Site No. 2 being 8,930 square feet, identified as "Designated Use Area" on Exhibit "A" attached hereto and made a part of this Agreement." ARTICLE III - RENTALS AND CHARGES Article III, subparagraph 1, is amended by adding the following, to -wit: "For the Leased Premises as described in Article I, above, being the fifty (50) tie down areas described on Exhibit "A" to this Amended Lease Agreement, and two (2) T -Hangar sites of 16,450 square feet total, identified as "Designated Use Area" on Exhibit "A", the following rental: A. Rental shall be paid annually in advance in an amount of $265.46 per year, for T -Hangar Site No. 1, and $315.23 per year, for T -Hangar Site No. 2, or $580.69 for the two (2) T -Hangar sites, based on January 1, 2002, rental rate of $1,539.41 per acre per year. Rental for subsequent years under this paragraph years under this paragraph shall be subject to increase in accordance with any increase in the Consumer Price Index for All Urban Consumers, with December, 2001, as a base year. Rental for the T -Hangar area shall commence on the earliest to occur of September 1, 2002, or the issuance of a certificate of occupancy by the City of La Porte; B. Lessee shall pay to Lessor, as additional rent, a sum equal to thirty percent (30%) of the gross revenues obtained from rental of tie -down spaces; provided, however, Lessee shall guarantee Lessor a yearly rental of not less than $144.00, multiplied by the 50 tie -downs leased; C. Rental for the 50 tie -downs shall be paid monthly, in a sum equal to 1/12th of the annual rental due, in advance, on the 1st day of each and every month. Cost of living indexing shall not apply to the rental and charges for the tie -down areas." Article III is further amended by adding thereto, a final paragraph, which shall read as follows, to -wit: "The construction schedule for the two (2) T -Hangar sites shown on Exhibit "A", is attached hereto as "Construction Schedule (Exhibit "B")", incorporated by reference herein and made a part hereof for all purposes." 2 Except and to the extent as amended hereby, the Agreement and Lease for fixed base operation at City of La Porte Municipal Airport, between the City of La Porte, as Lessor, and Bayport Aviation, Inc., predecessor corporation to Tri-Star Aviation, Inc., as Lessee, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have caused these presents to be signed by their duly authorized representatives. ATTEST: Mar ha . Gillett City Secretary ,r APPVEE Knox W. Askins City Attorney ATTEST: ecretary 3 Lessor: CIT OF LA PORTE BY: "NAkffaiA Mhlonb; LKaSror Lessees TRI -STAR AVIATION, INC. Successor to Bayport Aviation, Inc. By: _ Name: Title: EXHIBIT "B" Lessee's Construction Schedule Lessee covenants and agrees with Lessor to keep and maintain the following staged construction milestones in the planning and construction of two (2) T -Dangers shown on Exhibit "A". 1. Site Plan submitted by April 1, 2002 2. Construction begins by May 1, 2002 3. Construction completed by August 1, 2002 FOR FIXED BASE OPERATION CITY OF LA PORTE MUNICIPAL AIRPORT THIS AGREEMENT AND LEASE, made 'and en£ered, into this 1st day of January, 1985, by and between the- City of La Porte, a municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as "Lessor" and Bayport Aviation, Inc., a corporation organized and .existing under the laws of the State of Texas, hereinafter referred to as "Lessee." W I T N E S S E T H: WHEREAS, the Lessor controls and operates an airport known as La Porte Municipal Airport, located in the City of La -Porte, State of Texas, which airport and any additions or improvements thereto or changes therein which the Lessor hereafter makes or authorized are hereinafter collectively referred to as the "Air- port", and, WHEREAS, the parties hereto desire to enter into an Agreement and Lease for the use of premises and facilities at the Airport all as more fully hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual cove- nants and agreements herein contained, the Lessor and the Lessee do hereby mutually undertake, promise and agree, each for itself and its successors and assigns, as follows: ARTICLE I - TERM OF AGREEMENT . The term of this Agreement and Lease shall be for the period commencing January 1, 1985, and terminating December 31,- 2014, Unless sooner terminated -as hereinafter provided. ARTICLE II - LEASED PREMISES AND FACILITIES 1. The Lessor, in consideration of the compensation and sundry covenants and agreements set forth herein to be kept and per- formed by the Lessee, does hereby, and by•- these presents, demise and lease unto the Lessee, upon the conditions herein- after set forth, all of which the Lessee accepts, the exclu- sive use and occupancy of the Leased ' Premises, to -wit: AGREEMENT AND LEASE FOR FIXED BASE OPERATION CITY OF LA PORTE MUNICIPAL AIRPORT THIS AGREEMENT AND LEASE, made 'and en£ered, into this 1st day of January, 1985, by and between the- City of La Porte, a municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as "Lessor" and Bayport Aviation, Inc., a corporation organized and .existing under the laws of the State of Texas, hereinafter referred to as "Lessee." W I T N E S S E T H: WHEREAS, the Lessor controls and operates an airport known as La Porte Municipal Airport, located in the City of La -Porte, State of Texas, which airport and any additions or improvements thereto or changes therein which the Lessor hereafter makes or authorized are hereinafter collectively referred to as the "Air- port", and, WHEREAS, the parties hereto desire to enter into an Agreement and Lease for the use of premises and facilities at the Airport all as more fully hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual cove- nants and agreements herein contained, the Lessor and the Lessee do hereby mutually undertake, promise and agree, each for itself and its successors and assigns, as follows: ARTICLE I - TERM OF AGREEMENT . The term of this Agreement and Lease shall be for the period commencing January 1, 1985, and terminating December 31,- 2014, Unless sooner terminated -as hereinafter provided. ARTICLE II - LEASED PREMISES AND FACILITIES 1. The Lessor, in consideration of the compensation and sundry covenants and agreements set forth herein to be kept and per- formed by the Lessee, does hereby, and by•- these presents, demise and lease unto the Lessee, upon the conditions herein- after set forth, all of which the Lessee accepts, the exclu- sive use and occupancy of the Leased ' Premises, to -wit: Property at La Porte Municipal Airport, consisting of 11.1207 acres, more or less as "Fixed Base Operator Area" on Exhibit "A" attched hereto and made a part of this Agreement, and Ramp area for use as tie -down parking facilities for air- planes, identified as "Designated Use Area" on Exhibit "A" attached hereto and made a part of this Agreement, and Property consisting of 0.769 acres, more or less, identified as "T -Hangar Development Area" on Exhibit B attached hereto and made a part of this Agreement. The location and boundaries of said Leased Premises, as in- dicated on Exhibits A and B, attached hereto, are stipulated and agreed between the parties to be correct and by reference made a part hereof. 2. Lessee takes all of such property in its present" condition "as is", and except as otherwise specifically provided here- in, agrees to provide all necessary and reasonable maintenance and repairs in order to maintain such property in a usable condition. 3. Lessee shall make available to the public for rental purposes, the T -Hangars and tie -down facilities leased to Lessee herein. In its rental of such T -Hangars and tie -down facilities, the Lessee shall provide reasonable rental rates, consistent with industry standards for this region. Notwithstanding any other provision of this Agreement, the parties recognize and agree that Lessee is not herewith given and shall not exercise exclusive control over the ramp area not specifically leased under this Agreement; and that the public shall have the right, at all time, to ingress and egress, over and through said area, as reasonably necessary for the use by the public of airport facilities at La Porte Municipal Airport. 4. The Lessor expressly reserves from the lease of the Leased Premises the following: A. All gas, oil and mineral rights in and under the soil. D. The right to grant utility rights -of -ways to others over, under, through, across or on the Leased Premises, provided that such use will not unreasonably or materially inter- fere with the Lessee's use of the Leased Premises. ARTICLE III - RENTALS AND CHARGES 1. For the Leased Premises, as described in Article II, Paragraph 1 as "Fixed Base Operator Area", and as shown in Exhibit "A", and "T -Hangar Development Area", as shown on Exhibit -3- 0 "B", the basic ground rental calculated for an index value of 100.0 is Two Hundred Seventy -Nine and Forty -One One - Hundredths Dollars ( $279.41) per acre per year. The actual rentals for the Leased Premises, to be paid to. the Lessor by the Lessee, shall be determined by multiplying said basic rentals specified under Paragraph 1 above by the index value determined for successive calendar years in the manner herein set forth. The index value for the calculation of actual rental rates shall be based on . the Consumer Price Index for All Urban Consumers, using as base year 1967, published by the Bureau of Labor Statistics of the United States Department of Labor, and shall be calculated as follows: A. The index for any particular calendar year shall be the numerical average of. the indexes. for the months of June through August inclusive of the calendar year next pre- ceding the year for which the calculation is made. The index for the year 1984 is 311.8, resulting in an annual rental rate of Eight Hundred Seventy -One and Twenty One Hundredths Dollars ($871.20 ' $871.20_per acre for the year 1985. This rate results in 'a total 1985 ground rental for the parcel indicated as "Fixed Base Operator Area" on Exhibit "A" of Nine Thousand, Six Hundred Eighty -Eight and 32/100 Dollars ($9,688.32). B. The actual rental rates shall be determined prior to January 1 of each calendar year and shall be effective for the full calendar year. C. In the event that the United States Department of Labor discontinues publication of the above index or data from which the index can be directly computed, or if the method for the determination of such index is substantially dif- ferent than that existing at the time this Agreement and Lease is executed, the basis for the rental rate adjust- ment shall be the most closely comparable index published by the U. S. Government. 2. The parties recognize that Lessee shall lease to tenants, facilities for the storage and/or tie -down of aircraft within leased properties described as "Designated Use Area" or "T -Hangar Development Area" on Exhibits "A" and "B". The Lessee shall have the right to provide additional T -Hangar or tie -down facilities on the property leased herein, but any such additional facility shall only be provided after specific written authorization from the Lessor. Additional facilities shall be provided only in areas specifically authorized by the Lessor and than grass areas. The parties will be tied -down on grass leased premises after the year shall be hardsurfaced, rather further agree that no aircraft surface areas within Lessee's 1990. Lessor leases to Lessee, the thirty (30.) westernmost tie -downs in Phase I construction of the new "Designated Use Area," upon the terms and conditions herein contained. Upon comple- tion of Phase' II construction, Lessor will re -assign to Lessee, the thirty (30) westernmost tie -downs in the combined Phase I/Phase II constructed Designated Use Area. Lessor grants to Lessee, an option, exercisable within thirty (30) days after receipt by Lessee of written notice from Lessor, that Lessor has accepted from its contractor, Phase II constru- ction in the "Designated Use Area," which option shall be an option to Lessee, .to lease an additional twenty (20) tie -downs, within the "Designated Use Area," for a total of fifty (50 ) tie -downs, which, if said option is exercised by Lessee, shall be the fifty (50) westernmost tie -downs in the "Design- ated Use Area," upon the terms -and condtions herein contained. Lessor further grants Lessee an option to lease the first two (2) T -Hangar sites in the new T -Hangar area, with a minimum of one (1) year to begin construction, and with the flooring or paving under the new T -Hangars to be put in place by Lessor when access ramps are paved by Lessor. Lessee shall pay Lessor an option fee of Five Hundred Dollars ($500.00) upon the execution hereof, for each T -Hangar site which Lessee desires to option from Lessor, which option fee shall be credited to rental, if such options are exercised by Lessee, upon the lease terms as herein contained. • Lessor agrees that T -Hangar • area will be leased to any Fixed Base Operator at the same established square foot rental fee charged by Lessor to Fixed Base Operator Lessees, at the time of signing of such new leases. Lessor covenants that the lease price shall not in any event be less than $.02 square foot per year. In addition, any Lessee *Fixed Base Operators shall pay Lessor thirty (30) percent of its esta- blished tie -down ramp fee for each hangar space. In other words, Lessor shall treat T -Hangars as tie -down ramp, with the fee tied to' actual charges by Lessees to their customers, on the ramp area, for purposes of computing minimum lease payments for T -Hangar space. Only the area actually covered by hangar will be considered in foot print leases, at the established square foot charge. In addition, after acceptance of construction by Lessor, this fee will be paid by Lessee to City, and by any .future Lessee Fixed Base Operators to City, whether or not the hangar is occupied by Lessee's customers. No aircraft will be allowed to use the T -Hangar area as open tie -down; planes in the T -Hangar area must be parked in -hangars. The Lessee shall pay to the City of La Porte, as additional rent, a sum equal to Thirty percent .(30%) of the gross revenues obtained from rental of T -Hangars and tie -down spaces within the "Designated Use Areas" or "T -Hangar Development Area" depicted on Exhibits "A" and "B". For ramp tie -down spaces within the Designated Use Area, Lessee guarantees the City of La Porte a yearly rental of not less than One Hundred Forty -Four Dollars ($144.00), multiplied by the number of tie -downs leased; and, if at the end of each anniversary year of this agreement, the rentals paid to the City of La Porte are less than One Hundred Forty -Four Dollars ($144.00) multiplied by the number of ramp tie -downs leased, then Lessee shall, not later than the loth day of the month follow- ing the month anniversary date of this agreement, pay Lessor sufficient money so as to ensure a total of One Hundred Forty -Four Dollars .($144.00),* multiplied by the number of ramp tie -downs leased, for minimum tie -down rental within the Designated Use Area. In the event that Lessee shall construct or cause to be con- structed T -Hangar's, within the area designated as "T -Hangar Development Area" on Exhibit "B", Lessee shall ay to the City of La Porte, as rent and use fee, a sum equal to thirty percent (30%) of its established tie -down ramp fee for each hangar space multiplied by the number of hangar spaces to compute gross revenue obtained from rental of such T -Hangars, for purposes of this lease. For T -Hangars spaces within the "T -Hangar Development Area", Lessee guarantees Lessor a yearly rental of not less than One Hundred Forty -Four Dollars ($144.00) per T -Hangar space, multiplied by the number of T -Hangar spaces leased; and, if at the end of each anniversary year of this agreement, the rentals paid to the City of La Porte are less than One Hundred Forty -Four Dollars ($144.00), multiplied by the number of T -Hangar spaces leased by Lessor by Lessee hereunder, then Lessee shall, not later than the 10th day of the month following the anniversary date of this agreement, pay Lessor sufficient monies so as to ensure a total of One Hundred Forty -Four Dollars ($144.00), multiplied by the number of T -Hangar spaces leased by Lessor to Lessee, for minumum T -Hangar rental within the "T -Hangar Development Area." 3. The rental above provided for during the term of this Agreement and Lease shall be paid monthly, in sum equal to 1/12 of the annual rental due hereunder, in advance on the first day of each and every month. In the event that this Agreement and Lease .commences or terminates other than on the first or last day of the month, pro -rata payments shall be made for the fractional part of a month involved. 4. The. Lessor is entitled to collect and the Lessee agrees to pay,_- all rentals. due under this Agreement and Lease to the City of La Porte, La Porte Municipal Airport, La Porte, 0. -6- • Texas, without notice to the Lessee. Rentals more • than thirty (30) days past due may be subject .to a service charge of one percent (1%) per month, based on an annual rate of twelve percent (12%) . 5. Without prejudice to any _other . remedy.. which otherwise might be used for arrears of rent or other breach -of this Agreement, if the Lessor is required or it elects to pay any sum or incurs any obligations or expense, by reason of a failure, neglect or refusal of the Lessee to perform any one or more of the terms, conditions or covenants of this Agreement and Lease or as the result of any act or omission of Lessee contrary to said terms, conditions and covenants, the sum or sums so paid or the expense so incurred, including all inte- rest, costs, damages and penalties may be added to any in- stallment of rent thereafter due hereunder and each and every part of .the same shall be and become additional rent recoverable by the Lessor in the same manner and with like remedies as if it were originally a part of the rent as set forth hereinabove. ARTICLE IV - ACTIVITIES, USES, PRIVILEGES AND OBLIGATIONS OF THE LESSEE 1. A Fixed Base Operation is defined as a commercial aviation activity conducted by a person, partnership, firm or corpora- tion engaged in the hangaring,' maintenance, care and opera- tion of aircraft for use by the public, and such other acti- vities as may be pertinent to such use. This definition specifically includes all terms as set forth in Minimum Standards for Equipping & Operating A General Fixed Base Operation at the La Porte Minicipal Airport, made a part hereof by reference and attached as Exhibit "C". 2. During the term of this Agreement and Lease, the Lessee agrees to use the Leased Premises for the purposes or activities stated above, subject to - the conditions generally or particu- larly set forth herein, and not to use or permit the use of the Leased Premises or any part thereof for any purposes or activities other than those specifically stated above without first obtaining the express, written approval of the Lessor. 3. Lessee agrees that the rights and privileges granted herein are non-exclusive except as to the Leased Premises which shall be for the exclusive use of the Lessee. 4. The Lessee agrees that the Lessor has the right to adopt and enforce reasonable rules and regulations and that it and all its employees, agents and servants will faithfully observe and comply with all rules and regulations as may from time to time be promulgated by the America or any department or Texas and the City of La Porte. • Lessor, the United States -of agency thereof, the State of 5. The Lessee agrees, at its own expense, to pay any and all taxes levied by the City, County or other appropriate govern- mental units and to pay any and all. -costs or charges for utility services furnished to .or required by the Lessee. 6. The Lessee will not suffer or permit to be maintained upon the Leased Premises or upon the exterior of any improvements - or apputenances thereto any billboards, signs or other adverti- sing media except those which have prior written approval of the Lessor. Flashing, rotating, animated or intermittent illuminated type signs are prohibited. 7. Lessee shall utilize on the Airport, only service contractors authorized to operate at 'the Airport, including, but not limited to vendors of aircraft, aircraft parts, service and fuel, car rental service, taxicab service, vending machine service and the like; it being understood that fees may be imposed or collected by the Lessor from such contractors for the privilege of operating at .the Airport. ARTICLE V - RIGHTS AND COVENANTS OF THE LESSOR 1. The Lessor covenants that it is well seized of the Leased Premises and has good title thereto free and clear of all liens and encumbrances and has full right and authority to lease the same as herein set forth. 2. The Lessor covenants that the Lessee shall have peaceful possession and quiet enjoyment of the Leased Premises during the term hereof so long as the Lessee performs and observes all of the covenants, agreements, terms and conditions hereof. 3. The Lessor reserves the right to maintain and keep in : repair the landing area of the Airport and all publicly -owned facili- ties of the Airport, together with the right -to direct and control all activities of the Lessee in this regard. 4. The Lessor reserves- the right further to develop or improve the landing area and all pubicly-owned air navigation facili- ties of this Airport as it sees fit, regardless of the desire or views of the Lessee, and without interference or hindrance. S. The .Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent the Lessee from erecting, or permitting to be erected, any build- !. i mm ing or other structure on the airport which in the opinion of the Lessor would limit the usefulness of the Airport or constitute a hazard to aircraft.. 6. During time of war or national emergency Lessor shall have the right to . enter into an- agreement with the United States Government for military or naval use. of part or all of -the landing area, the publicly -owned air navigation facilities and/or other areas. or facilities of the Airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of. the agreement with the Government, shall be suspended. 7. This Agreement shall be subordiante to .the provisions of_ any outstanding agreement between Lessor and the United States relative to the maintenance, operation or development of the Airport. 8. It is understood and agreed that the rights granted by this Agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the Airport. 9. There is hereby reserved to the Lessor, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or opera- ting on or about the Airport. ARTICLE VI - IMPROVEMENTS AND MAINTENANCE 1. Lessee agres that construction of all facilities, improvements or appurtenances on or in connection with the Lease Premises is prohibited without the express written consent of the Lessor before commencement of said construction. All facili- ties, improvements, or appurtenances proposed for construction shall comply with all --existing applicable codes, ordinances, laws and regulations relating thereto. 2. Lessee agrees that T -Hangars constructed within the designated "T -Hangar Development Area" will be -built in structures con- taining no fewer than ten (10) units each. • -9- • 3. The Lessee agrees that no obstruction to air navigation as such are defined from time to time by application of the criteria - of Part 77 of the Federal Aviation Regulations or subsequent and additional regulations of the Federal Aviation Administration will be constructed or permitted to remain on the Leased Premises. Any obstructions shall be removed by the Lessee -at its expense. The Lessee agrees not to increase the height of any structure or objects or permit the growth of plantings of any kind or nature whatsoever that would interfere with the.line of sight of aircraft operating on or above the Airport in airspace protected under rules prescribed by FAR Part 77. The Lessee further agrees not be install any structures, objects, machinery or equipment that would interfere with operation of navigation aids or that would interfere with -the safe and efficient operations of the Air- port, or interfere with the operations of other tenants and users of the Airport. 4. The Lessee agrees that all utility services required by it during the lease term for the Lease Premises must be paid for by the Lessee including the maintenance cost of service lines. 5. The Lessee agrees, at its own expense, to cause the Leased .Premises and any improvements and apputenances thereto to be maintained in a tenantable and in a safe, neat, clean and presentable condition including, but not limited, to the necessary mowing and snow removal of the Leased Premises during the appropriate periods of the year. 6. The Lessee agrees, at its own expense to keep and maintain in good repair, all structures, pavements, utilities and all other improvements and appurtenances within and upon the Leased Premises. • Lessee further agrees that Lessor shall have no maintenance responsibilities with respect to the Leased Premises. 7. • Lessee agrees,. at his own expense, to remove all waste, gar- bage, and rubbish from the Lease Premises, and agrees not to deposit the same on any part of the Leased. Premises except temporarily in connection with collection for removal. No waste, garbage or rubbish will at any time be deposited on any other area of the Airport. 8. Lessee agrees to provide, at its own expense, such janitor, toilet, and cleaning services and supplies as may be neces- sary or required in the operation and maintenance of the Leased Premises and the improvements and appurtenances there- to. -10- 9. The Lessor and its authorized officers, employees, agents, contractors, subcontractors, and other representatives shall have the right to enter upon or -in the Leased Premises and any improvements thereon for the following purposes: A. To inspect the Leased Premises and any improvements there- on at reasonable intervals during regular business hours or at any time in case of -emergency, to determine whether .the Lessee has complied and is complying with the terms and conditions 'of this Agreement and Lease with respect to such Leased Premises. Be To perform any and all things which the Lessee is obli- gated to do and has failed, after reasonable' notice to do so, including maintenance, repairs and replacements of any portion of the •Leased Premises, improvements or appurtenances thereto, in which event the Lessee agrees to reimburse the Lessor for reasonable costs thereof promptly upon demand, as set forth herein before. C. In the exercise of the Lessor's police power. D. To inspect the Leased Premises and perform any and all things with reference thereto which the Lessor is obli- gated or authorized to do as set forth herein. No such entry by or on behalf of the Lessor within or upon the Leased Premises or any improvements thereon shall cause or constitute a termination of the letting thereof or be deemed to constitute an interference with the possession thereof by the Lessee. 10. Upon termination of this Agreement and Lease at the expira- tion of the. term or for any other reason or cause, the Lessee shall have the right to remove any structures or other im- provements and all machinery, fixtures, apparatus and equip- ment owned by the Lessee and locted onthe Leased premises for a period of 120 days after said termination date and upon payment of rentals as provided in Article III hereof to the date of removal of said improvements. The Lessor shall be entitled to have the Lease Premises herein demised returned to it clear of all improvements owned by the Lessee and may require the Lessee to make such restoration by written noti- fication within 120 days following termination of this Agree- ment and Lease; and, in the event of the failure by the Lessee to restore the Leased Premises as herein required, within 120 days of said written notification, then the Lessor 0, 0 -11- may make such restoration at the Lessee's expense. In the event that Lessee does not remove all said improvements or equipment, and the Lessor elects not to require said restora- tion of the Leased Premises, then upon- the expiration of 120 days from the date of termination of this Agreement and Lease, all structures or other improvements and all machinery, fixtures, apparatus and equipment located on the Leased Premises shall become the property of the Lessor. ARTICLE VII - INDEMNIFICATION AND INSURANCE 1. The Lessee covenants and agrees to indemnify and save harmless the City of La Porte, its officers, agents and employees, their successors and assigns, individually or collectively, from and against al liability for any fines, claims, suits, liens, demands, actions or, cause -of action of any kind an nature for personal i-njury or death, or property damage in any way arising out of or resulting from any activity or operation of the Lessee on the Leased Premises or in connection with its use of the Leased Premises, and the Lessee further agrees to pay all expenses in defending against any such claims made against the Lessor, including reasonable attorney's fees; provided, however, that .the Lessee shall not be liable for any injury, damage or loss occassioned by the sole negli- gence or willful misconduct of the Lessor its agents or employees. The Lessee and the Lessor shall give prompt and timely notice of any claim made or suit instituted which, in any way, directly or indirectly, contingently or otherwise, affects or might affect either party. If the Lessee fails, after written notice from Lessor, to so save harmless and in- demnify Lessor, Lessor shall have the right, in addition to its other legal remedies, to declare a default in Lessee's obligation to fulfill and comply with the terms and conditions of this Lease, and Lessor may then proceed to termination of the Lease pursuant to Article IX hereof. 2. The Lessee shall procure and maintain in effect during the term of this Agreement and Lease insurance with companies licensed to do business in the State of Texas, and naming the Lessor as an additional -insured and containing a cross liability agreement, providing the following coverages: AIRCRAFT LIABILITY Bodily Injury One Hundred Thousand Dollars ($100,000.00) each person One Million Dollars (1,000,000.00) each accident Property Damage Five Hundred Thousand Dollars ($500,000.00) each accident • Passenger Legal Liability • -12- One Hundred Thousand Dollars ($100,000.00) each passenger seat Or altrnatively a single limit legal --liability policy (public liability, property damage and passenger liability) of not less than One Million Dollars ($1,000,000.00) which may include a limit of One Hundred Thousand ($100,000.00) each person or passenger. COMPREHENSIVE -PUBLIC LIABILITY AND COMPREHENSIVE PROPERTY DAMAGE Bodily Injury One Hundred Thousand Dollars ($100,000.00) each person One Million Dollars .($1,000,000.00) each accident Property Damage Five Hundred Thousand Dollars ($500,000.00) each accident Or alternatively a single limit legal liability policy (public liability and property damage) of not less than One Million Dollars ($1,000,000.00) which may include a limit of One Hund- red Thousand Dollars ($100,000.•00) each person. 3. A certified copy of each policy evidencing the existence there- of shall be delivered to the Lessor within ten (10) days after the execution of this Agreement and Lease. Each such copy shall contain a valid provision or endorsement that the policy may not be cancelled, terminated, changed or modified without giving ten (10) days written advance notice thereof to the Lessor. Each such policy shall not, without obtaining express advance permission from the Lessor, raise any defense defense involving in any, way the immunity of the City of La Porte, its members, officers, agents, or employees, the governmental nature of the Lessor, or the provisions of any statutes respecting suits 'against the City. 4. The Lessee shall furnish to the City satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. 5. In the event that any repairs, alterations, additions, or improvements are made, in, on or to the Leased Premises by reason of the use and occupancy of the Leased Premises by the Lessee, then the Lessee covenants and agrees to make such repairs, alterations, additions, or improvements in, on or to the Leased Premises at its own expense. The Lessee covenants and agrees to indemnify and save harmless and • -13- Lessor from and - against all expenses, liens, claims, or damages to either persons or property which may or might arise by reason of any repairs, alternations, additions,. or improvements made by the Lessee in, on, or to the Leased Premises. ARTICLE VIII - TERMINATION OF LESSEE 1. In addition to all other remedies available to the Lessee, this Agreement and Lease shall be subject to cancellation by the Lessee should any one or more of the following events occur: A. The permanent abandonment of the Airport. B. The issuance by any court of competent jurisdiction of any injunction preventing or restraining the use of the Airport in such manner, as to substantially restrict the Lessee from conducting its fixed base operation, and the remaining in force of such injuction for at lease sixty (60) days. C. The breach by the Lessor.of any of the terms, covenants, or conditions of this Agreement and Lease to be kept, performed, and observed by the Lessor, and the failure of the Lessor to remedy such breach for a period of sixty (60) days after written notice from the Lessee of the existance of such breach. D. The assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport and its facilities in such a manner as to substantially restrict the Lessee -from conducting its operation, if such restrictions be continud for a period of three (3) months or more. ARTICLE IX - TERMINATION BY LESSOR 1. In addition to all other remedies available to the Lessor, this Agreement .and Lease shall be subject to cancellation by the Lessor should any one or more of the following events occur: A.- If the Lessee shall file a petition of bankruptcy; or if proceedings in bankruptcy shall be instituted against it and it is thereafter adjudicated a bankrupt pursuant to proceedings; or if a court shall take jurisdiction of the Lessee and its assets pursuant to proceedings brought under the provisions of any Federal Re -Organization Act; or if a Receiver for the Lessee's assets is appointed; or if the Lessee shall be divested of its rights, powers and privileges under this Agreement and Lease by other operation of law. B. If the Lessee shall default' in. or fail to make any pay- ments at the times and in - the amount: required of it under this Agreement and Lease. C. If the Lessee shall abandon and discontinue the conduct of a fixed base operation. D. If the Lessee shall fail to perform, keep and observe all the covenants and conditions contained in this Agree- ment and Lease to be performed, kept and observed by it. E. If the Leasee shall fail to abide by all applicable laws, ordinances, rules and regulations of the' United States, State of Texas, or the City of La Porte. Provided that upon happening of any of the contingencies re- cited in subparagraphs B, C, D and E above the Lessor shall give written notice to the Lessee to correct or cure such default, failure to perform or breach and if, within thirty (30) days from the date of such notice, the default, failure to perform or breach complained of shall not have been cor- rected in a manner satisfactory to the Lessor, then, and in such event, the Lessor shall have the right at once- and without further notice to the Lessee to declare this Agree- ment and Lease terminated and to enter upon and take full possession of the Leased Premises and Leased Facilities and, provided further that upon the happening of any one of the contingencies enumerated in subsection A hereof, this Agree- ment and Lease shall be deemed to be breached by the Lease and thereupon ipso facto and without entry or any other action by the Lessor, the Agreement and Lease shall terminate, subject to be reinstated only if such involuntary bankruptcy or insolvency proceedings, petitions for reorganization, trusteeship, receivership, or other legal act divesting the Lessee of its .rights under this Agreement and Lease shall be denied, set aside, vacated or terminated in the Lessee's favor within forty-five (45) days from the happening of the contingency. Upon the .happening of said latter event, this Agreement and Lease shall be reinstated as if there had been no breach occassioned by the happening of said contingencies provided that the Lessee shall within ten (10) days discharge any and all sums of money which may have become due under this Agreement and Lease in the interim and shall then remain unpaid and shall likewise fully perform and discharge all other obligations which may have accrued and become payable in the interim. The acceptance of rentals and fees by the -15 - Lessor for any period or periods after a default ofany of the terms, covenants, and conditions herein contained to be performed, kept and observed -by the.. Lessee shall not be deemed a waiver of any rights .of the Lessor to cancel this -- Agreement and Lease for failure by the Lessee to so perform, keep, or observe any of the terms of this Agreement and Lease to be kept, performed, and observed by the Lessee. ARTICLE X - ASSIGNMENT AND SUBLETTING 1. The •activities, uses, privileges and obligations authorized herein are personal and the Lessee agrees that it will not assign, subcontract, sublet, or underlet the same or any portion thereof,• or assign, sub -contract, sublet or underlet the Leased Premises or any portion thereof without the expres- sed consent of the Lessor in writing and any purported assignment or sub -contract in violation hereof shall be void. In no case, however, may the activities, uses, privi- leges and obligations authorized herein or the Leased Premises or any portion thereof be assigned, sub -contracted, sublet, or underlet by the Lessee for any use other than herein specified. All provisions of this Agreement and Lease appli- cable to the Lessee hereunder shall be equally binding upon any party to which the activities, uses, privileges and obligations authorized herein, Leased Premises are assigned, sub -contracted, sublet or underlet. 2. The Lessor will not be unnecessarily arbitrary in granting said permission, but the Lessor shall be the sole judge as to the reliability, capability, character, and desirability of the parties involved. ARTICLE XI - HOLDING OVER 1. In the event the Lessee shall hold over and remain in posses- sion of the Leased Premises herein leased after expiration .of this Agreement •and Lease without any written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this Agreement and Lease but shall only create a tenancy from month to month which may be termi- nated-at ermi- nated-at any time by the Lessor. ARTICLE XII - SUCCESSOR AND ASSIGNS BOUND BY COVENANTS 1. All covenants, stipulations and agreements in this Agreement and Lease shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereto. -16 - ARTICLE XIII - GENERAL PROVISIONS 1. Notices to the Lessor provided for in this Agreement and Lease shall be sufficient if sent by certified or registered mail, postage prepaid, addressed to the City Manager, the City of LaPorte, Box 1115, LaPorte, Texas 77571, and notices to the Lessee if sent by certified or registered mail, postage paid addressed to Bayport Aviation, 'Inc., Post Office Box 656, La Porte, Texas 77571, or to such other respective address as the parties may designate to each other from time to time in writing. 2. The Lessee represents that it has carefully reviewed the terms and conditions of• the Agreement and Lease and is familiar with such terms and conditions and agrees faithfully to comply with the same to the extent to which said terms and conditions apply to its activities, authorized and required by this instrument. 3. The term "Lessor" as used in this Agreement and Lease means the City of La Porte, and where this Agreement and Lease speaks of approval and consent by the Lessor, such approval is understood to be manifested by act of the City Manager, except as otherwise expressly stated in this Agreement and Lease. ARTICLE XIV - INVALID PROVISION 1. In the event that any covenant, condition or provision herein contained is held to be invalid by any Court of competent jurisdiction, the invalidity of any such covenant, condition, or provision shall in no way affect any other covenant, condition or provision herein contained; provided that the validity of ' any such covenant, condition, or provision does not materially prejudice either the Lessor or the Lessee in its respective rights and obligations contained in the valid covenants, conditions, or provisions of this Agreement and Lease. ARTICLE XV - FEDERAL REQUIREMENTS 1. The right to conduct aeronautical activities or furnishing services to the public is granted the Lessee subject to Lessee agreeing; A. To furnish said services on a fair, equal and not un- justly discrimanatory basis to all users thereof, and B. To charge fair, reasonable, and not justly discriminatory ' -17- ID prices for each unit or service; provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price re- ductions to volume purchasers. 2. The Lessee in exercising any of the rights or privileges here- in granted to it shall' not on the -grounds of race, color, or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transportation. The Lessor is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this nondiscrimination covenant. • 3. The Lessee assures that it will undertake an affirmative action program as' required by 14 CFR Part 152, Subpart E, to insure that no person shall, on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment ativities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be ex- cluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Lessee assures that it will require that its covered suborganizations provide assurances to the Lessee that they similarly will. undertake affirmative action programs and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect. ARTICLE XVI - FAVORED NATIONS CLAUSE 1. Lessor covenants and agrees not to hereafter enter into . any lease, contract, or agreement, or any renewal of any existing leases, with any other party with respect to the Airport, containing more favorable terms than this lease or to grant to any other operator rights, privileges or concessions with respect to the Airport which are not accorded to Lessee hereunder, unless the same rights, privileges and concessions are concurrently and automatically made available to Lessee. It is understood and agreed that the intent of the parties in this paragraph is to provide that Lessee shall not be put at a competitive disadvantage with any .other operator rights, - privileges or concessions which have not- been granted - to Lessee or terms and conditions --more favorable than those enjoyed by Lessee. IN WITNESS WHEREOF, the parties have caused these presents to be signed by their duly authorized representatives.