HomeMy WebLinkAboutContract 44564CiTY �ECRETAR�' Ll� �
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COMMUNITY HOUSING DEVELOPMENT CONTRACT
This contract ("ContracY') is made and entered into by and between the City of Fot•t
Worth (hereafter "City") and Tarrant County Housing Partnership, Inc. (hereafter "Developer"),
a Texas non-profit corporation. City and Developer may be referred to individually as a"Party"
and jointly as "the Parties".
The Parties state as follows:
WHEREAS, City has received a grant from the United States Department of Housing and
Urban Development ("HUD") tluough the HOME Investment Partnerships Program ("HOME"),
Program Catalog of Federal Domestic Assistance No. 14.239, with which City desires to
promote activities that expand the supply of affordable housing and the development of
partnerships among City, local governments, local lenders, private industry, and neighborhood-
based non-profit housing organizations;
WHEREAS, the primary purpose of the HOME program pursuant to the HOME
Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing
Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships
Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations" or
"Regulations") is to benefit low-income citizens by providing them with affordable housing;
WHEREAS, a portion of City's HOME funds are reserved for the use of certain housing
development entities that qualify under the HOME Regulations as a Community Housing
Development Organization (CHDO);
WHEREAS, Developer, a Texas non-profit corporation managed by a volunteer Board of
Directors and qualified as a CHDO according to HOME Regulations, is worlcing to increase the
number of quality, accessible, and affordable housing units available to low and moderate
income persons;
WHEREAS, Developer requested HOME CHDO fiinds for an eligible project for
construction of single family houses;
WHEREAS, under this Contract, the Developer agrees to construct one single family
house located at 1246 E. Jefferson, Fort Worth, TX 76104 in the City of Fort Worth and in
accordance with the HOME Regulations and Exhibit "A-1"- Final Elevations and Proposed
Plans and Specifications for an amount up to $117,000.00 in HOME funds;
WHEREAS, the Developer shall sell the single family house to a HOME Eligible Buyer
who will use the house as his or her Principal Residence during the Affordability Period (the
"Required Improvements" or project), as fiirther described in Exhibit "A" — Project Summary
and Scope of Worlc;
CHDO Contr�act tivith TCHP fof• 12�6 E. .7ef er•son
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OFFICIAL RECORD
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WHEREAS, City has determined that the development of quality, accessible, and
affordable housing is needed for moderate, low, and very low-income citizens of Fort Worth;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
l. INCORPORATION OF RECITALS.
City and Developer hereby agree that the recitals set forth above are true and correct and
form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following terms shall have
the definitions ascribed to them as follows:
Affordable House means a house for which the homebuyer's monthly payment of principal,
interest, property taxes, and insurance does not exceed 30% of the homebuyer's monthly gross
income, nor is lower than 16% of the homebuyer's monthly gross income, for an individuai or
family with an income at or below 80% of Area Median Income, adjusted for family size. In the
case of new-house construction, the percentage of the homebuyer's monthly gross income shall
not exceed 32% of the homebuyer's monthly gross income.
Affordability Period means the period of time that a house purchased or constructed with
HOME Funds must remain affordable and subject to recapture provisions for the affordability
periods described in 24 CFR Part 92.254 of the HOME Regulations. The Affordability Period
begins on the date the Project status is changed to "compiete" in HUD's Integrated Disbursement
Information System ("IDIS"). Required Improvements must remain affordable for the following
minimum period, as applicable:
1. Five years if the Homebuyer Assistance Program (HAP) is less than $15,000; and
2. Ten years if the HAP is $15,000 to $40,000.
Area Median Income ("AMI") means the median family income for the Fort Worth-Arlington
metropolitan statistical area as established annually by HUD.
Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity
Ordinance, Ordinance No. 20020-12-2011.
City Final Inspection means a HUD Compliance Inspection Report ("Report") completed by
the City. The Report will not be performed until after the City's Permits Pius system states that
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the Required Improvements have passed a final inspection by the Planning and Development
Department.
City HAP Eligibility Requirements means the eligibility of a homebuyer for closing cost
and/or down payment assistance under City HAP guidelines as adopted by City Council.
Community Housing Development Organization (CHDO) shali be defined as set forth in 24
CFR 92.2, as amended:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the beneiit of any member, founder,
contributor, or individual of the CHDO;
(3) Is neither controlled by, nor under the direction of, individuals or entities seelcing to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-proiit entity shall not appoint more than one-third of the membership
of the organization's governing body, and board members appointed by the
for-profit entity may not appoint the remaining two-thirds of the board
members; and
(iii) The CHDO must be free to contract for goods and services from vendors of
its own choosing;
(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)
(3) or (4) of the Internai Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);
(5) Is not a public body (including the City) or an affiliate of a public body;
(6) Has among its purposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(7) Maintains accountability to low-income community residents by:
(i) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
neighborhoods, city, county or metropolitan area; for rural areas, it may be a
neighborhood or neighborhoods, town, village, county, or multi-county area
(but not the entire State); and
(ii) Providing a formal process for low-income-program beneficiaries to advise
the organization in its decisions regarding the design, siting, development, and
management of affordable housing;
(8) Has a demonstrated capacity for carrying out activities assisted with HOME funds;
(9) Has a history of serving the community within which housing to be assisted with
HOME funds is to be located; and
(10) Has at least one fuii-time staff person
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Complete Documentation means (i) Exhibit "E-1" — Invoice, signed by an authorized
signatory of CHDO, stating the amount of funds requested for reimbursement; and (ii) Exhibit
"E-2" — Detailed Statement of Costs, containing an itemized listing of all eligible expenses
requested for reimbursement. In order for Exhibit "E-2" — Detailed Statement of Costs to be
considered complete, the following bacicup documentation must also be submitted as
appropriate: (a) copies of bids and invoices from subcontractors and vendors for each expense
listed on Exhibit "E-2" — Detailed Statement of Costs, along with an explanation of how the
invoice pertains to the Required Improvements, (b) copies of other documents such as cancelled
checics or wire transfers necessary to demonstrate that such amounts were actually paid, (c) if
relevant, iinal lien releases signed by the general contractors or appropriate subcontractors, and
(d) any other documentation reasonably requested by City such as BDE and/or DBE compliance,
permits, detailed subcontractor reports, etc. The final reimbursement shall not be disbursed until
all liens are released to City's satisfaction as evidenced by a title report or affidavit of lien
release. Exhibit "F"- Standard of Bacicup Documentation is attached.
Completion shall mean the substantial completion of the Required Improvements, as evidenced
by HED Department Minimum Acceptable Standard report, a HUD Compliance Inspection
Report, and any other applicable final inspection approval from the City..
Completion Deadline means ��n �- � K, �� �.
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means the deed of trust signed by Developer pursuant to Section 4.2.2. See form
in Exhibit "I"- Deed of Trust Form.
Director means the Director of the City's Housing and Economic Development Department.
Effective Date means the date this Contract is executed by the City's Assistant City Manager.
HAP means the City's Homebuyer Assistance Program.
HAP Deed of Trust means the deed of trust signed by a HOME Eligible Buyer to secure HAP
assistance.
HOME Eligible Buyer means: (1) a homebuyer whose annual income adjusted for family size
does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical
Guidance for Determining Income and Allowances. The definition of annual income to
determine homebuyer eligibility under this Contract shall be the definition contained in 24 CFR
Part 92.203(b)(1), as amended; and (2) a homebuyer who meets City HAP Eligibility
Requirements and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance.
HOME Funds means City's HOME funds supplied by City to the Developer under the terms of
this Contract.
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Principal Residence means the improved property that will be occupied by the HOME Eligible
Buyer for a majority of each year throughout the Affordability Period in accordance with the
HAP guidelines as further described in the written agreement between the HOME Eligible Buyer
and the City and the HAP loan documents to be executed by the HOME Eligible Buyer.
Property means the land on which the Required Improvements shall be constructed as more
par-ticularly described in Exhibit "A-2" — Property Legal Description
Required Improvements mean the construction by the Developer of a single family house as
defined in Exhibit "A".
Sales Proceeds means the sales price of a property, minus construction loan repayment (other
than HOME Program fiinds), Developer Fee and any closing costs, or as otherwise defined in the
HOME Regulations and as shown on the settlement statement described in Section 4.9.4.
3. TERM AND EXTENSION
3.1 Term. The term of this Contract begins on the Effective Date and terminates in
two years unless terminated as provided in this Contract.
3.2 Extension. This Contract may be extended for 1 year upon Developer submitting
a request for an extension in writing at least 60 days before the end of the Contract term. The
request for extension shall include Developer's anticipated budget for the remaining balance, an
explanation as to why additional time is needed, and a proposed project timeline. It is
specificaily understood that it is within City's sole discretion to approve or deny Developer's
request for an additional term. Any such extension must be in writing as an amendment to this
Contract.
4. DEVELOPER OBLIGATIONS.
4.1 CHDO Certification
4.1.1 R�ec uirements Met. By the execution of this Contract, Developer certifies
that it meets all requirements set forth in 24 CFR 92.2 for being a CHDO.
4.1.2 Status Reports. Developer has a continuing, ongoing duty to provide City
with any documentation or information in regard to its status as a CHDO. Developer shali
provide City with any information and documentation regarding any change in its status as a
CHDO or as a 501(c)(3) tax exempt entity within ten business day of said change. Developer
shall provide to City an annual board roster and cei�tification of continued status as a CHDO by
January 30�h of each year. The failure of Developer to maintain its status as a CHDO shaii result
in reversion of assets as described as 8.5.1 and shall be considered a default of Developer, which
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shall result in the termination of this Contract under Section 8.4 below.
4.2. Construction of Required Improvements.
4.2.1 Rec uired Improvements. Developer shali complete the construction of the
Required Improvements as described in Exhibit "A" — Project Summary and Scope of Worlc
upon receiving written notice to proceed from City.
4.2.2. Lien on Property. To secure City's HOME Funds in the Required
Improvements, Developer shall execute and provide to the City a promissory note and the
recorded Deed of Trust in favor of City as of the later of (i) the Effective Date or (ii) Developer
acquiring title to the Property. No funds shall be disbursed until the Deed of Trust is recorded.
Upon recording the HAP Deed of Trust, the City will release the Developer's Deed of Trust.
4.2.3 Sale of Required Improvements. Under the terms and conditions of this
Contract, Developer shall construct the Required Improvements to be sold to a HOME Eligible
Buyer(s).
4.2.4. Project Schedule. Developer will construct the Required Improvements
by the Completion Deadline in accordance with the schedule set forth in the attached Exhibit
"B" — Project Schedule. Developer's failure to meet the Project Schedule or the Completion
Deadline shall be an event of default. The City may, at its sole discretion, approve any changes
to the Project Schedule after Developer submits a written reqttest for the modiiied Project
Schedule. If approved by the Director, the Parties shall execute a letter agreement memorializing
the change to the Contract.
4.2.5 Interim Financin�. Developer shall not obtain any third party financing
for the fuliillment of its obligations in this Contract or place any liens on the Property without
the written approval of the City, and any attempt to secure iinancing or• iile a lien without City's
written approval shall result in automatic termination of this Contract.
4.3 Use of HOME Funds.
4.3.1. Bu� HOME Funds will be spent in accordance with Exhibit "C" -
Budget. Developer may increase or decrease line-item amounts in the Budget with Director's
prior written approval so long as the expenses are in compliance with 4.3.2, comply with
Eshibit "A" — Project Summary and Scope of Worlc, and the total amount of HOME Funds is
not increased.
4.3.2. �enditures in Compiiance with HOME Re�ulations. Developer shall be
reimbursed for the construction of the Required Improvements with HOME Funds only if
Developer provides Complete Documentation showing that the costs are eligible expenditures
under HOME Regulations and in compliance with the Budget and Project Schedule. Further,
Developer must comply with project requirements in 24 CFR Part 92 Subpart F— Project
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Requirements, attached hereto as Exhibit "G" — Subpart F Project Requirements.
4.3.3. Reimbursement Re uq ests• Funds will be disbursed as detailed in Exhibit
"B"- Project Schedule. In order to receive reimbursement for eligible expenses, Developer
must submit Complete Documentation to City within the Contract term. Additionally, PDF's of
site plans, drawings or designs must be included with the first request for reimbursement. City
shall not hoid retainage. Instead, it shall malce the final construction payment due Developer
contingent upon successful completion of the following: (1) Completion of the Required
Improvements by Developer; (2) receipt of a Housing and Economic Development Final
Inspection approval for the Required Improvements; (3) approval of Complete Documentation;
and (4) Developer is not in breach of this Contract or any other agreement Developer has with
the City. Developer Fee will be paid at closing of the sale of the house to a HOME Eligible
Buyer.
4.3.4. Withholdin�Pa.�. IF COMPLETE DOCUMENTATION IS NOT
RECEIVED, CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER THIS
CONTRACT. Further, if Developer is in default of any other HOME contract with the
City, City may choose, in its sole discretion, to withhold payments requested uncier this
Contract or any other contract with Developer.
4.4 Construction and Property Standards
4.4.1 Construction to Conform to All Applicable Laws, Building Codes and
Ordinances. All plans, speciiications and construction on the Required Improvements shall (i)
conform to all applicable Federai, state and local laws, ordinances, rules and regulations,
including HOME Regulations; (ii) meet all City building codes; (iii) be certiiied as meeting the
Energy Conservation requirements as required by the State of Texas in Chapter 11 of the
International Residence Code; (iv) for new construction, must conform to the current edition of
the Model Energy Code, published by the Council of American Building Ofiicials; and (v) pass
the Final Inspection by the City.
4.4.2 Construction Inspections. The construction of the Required Improvements
described in Section 4.2 must pass HED Depar�tment Minimum Acceptabie Standard Inspection
report, a HUD Compliance Inspection Report along with any other applicable final inspection
approval from the City and any other applicable HUD-required inspections during the
construction period and at the completion of the construction of the Development.
4.4.3 Prope��tv Standards and Lead Paint Requirements. Developer shall comply
with the requirements as it related to City's property standards as well as all applicable
accessibility standards for the Required Improvements. Developer shall comply with (i) the
requirements contained in 24 CFR Part 92.251 as relates to Property Standards and Housing
Quality Standards (HQS), (ii) Accessibility Standards under 24 CFR Part 92.251 (a)(3) as
applicable, and (iii) Lead Based Paint Requirements as found in 24 CFR Part 92.355 and 24 CFR
Part 35 in the construction of the house built under this Contract.
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4.4.4. Submission and Approval bv City of Plans and Speciiications Not
Release of Responsibility or Liability,, Developer shall submit plans and specifications to the
City. Approval of any plans and speciiications relating to the Required Improvements by City
shall not constitute or be deemed (i) to be a release of the responsibility or liability of Developer
or any of its conhactors, their respective ofiicers, agents, employees and subcontractors, for the
accuracy or the competency of the plans and specifications, including, but not limited to, any
related investigations, surveys, designs, worlcing drawings and speciiications or other
documents; or (ii) an assumption of any responsibility or liability by City for any negligent act,
error or omission in the conduct or preparation of any investigation, surveys, designs, worlcing
drawings and specifications or other documents by Developer or any of its contractors, and their
respective officers, agents, employees and subcontractois.
4.5 Subcontractors.
4.5.1 Reporting, Developer shall submit proof of the following information in
writing regarding all subcontractors utilized in the construction of the Required Improvements:
4.5.1.1 Licensing of Contractors and Subcontractors. Developer shall
ensure that all contractors and subcontractors utilized in the construction of the Required
Improvements are appropriately licensed and that such licenses are maintained throughout the
construction of the Required Improvements.
4.5.1.2 Unlicensed or Debarred. Developer shall ensure that all
subcontractors utilized by Developer or Developer's general contractor are not debarred or
suspended from performing worlc within the City, the State of Texas or the Federal government.
Developer must confirm that all contractors subcontractors are not listed on the Federal System
for Award Management, www.sam. o�v, and must submit written verification of such searches
with the first reimbursement request which includes invoices from any subcontractor. Failure to
submit such proof shall be an event of default. If City determines that any subcontractor has been
debarred, suspended, or is not properly licensed, Developer or Developer's general contractor
shall immediately cause such subcontractor to stop worlc on the Required Improvements and
Developer shall not be reimbursed for any worlc performed by such subcontractor. However, this
Section shall not be construed to be an assumption of any responsibility or liability by City to
determine the legitimacy, quality, ability, or good standing of any subcontractor.
4.6 Marlceting
4.6.1. Affirmative Marlceting. Developer must adopt affirmative marlceting
procedures and requirements for the Required Improvements as required by 24 CFR 92.351 if
the project involves the construction of 5 or more houses. The procedures and requirements
must include methods for informing the public, owners and potential homebuyers about fair
housing laws and policies so as to ensure that all individuals, without regard for sex, age, race,
color, creed, nationality, national origin, religion, handicap status, disability, familial status,
sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project.
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4.6.2. City Approval. All Developer marlceting procedures related to the
Required Improvements, including but not limited to the afiirmative marlceting described in
Section 4.6.1 are subject to approval by City. Developer shail submit all marketing pians for
City approval no later than 7 calendar days after the Effective Date.
4.6.3 Effective Marlcetin�. Developer will be solely responsible for the effective
marlceting responsibilities necessary to achieve requirements described in Section 4.9.5.
Documentation supporting these efforts shall be submitted to the City upon request and shall
include, but not be limited to, brochures, sign-in sheets for open houses, listings, and
advertisements.
4.7 Developer Fee. Developer shall receive a fee of 10% of the total project-related
development costs as determined by Exhibit "C"- Budget ("Developer Fee"). The Developer
Fee shall be paid at the closing of the sale of the Required Improvements to a HOME Eligible
Buyer and receipt of documentation of all required inspections.
4.8 Sales Proceeds. All Sales Proceeds must be returned to the City.
4.9. Sale of Required Improvements to HOME Eligible Buyer
4.9.1 Sale Price of Required Improvements. The sales price of the Required
Improvements shall not exceed 95% of the median sales price of the same type of single-family
housing located within City as determined by HUD.
4.9.2 HOME Eli ib� le Buyer. All homebuyers who purchase the Required
Improvements must also be a HOME Eligible Buyer who receives ciosing cost and/or down
payment assistance from the City's HAP, as described in Section 5. Developer must verify that
the homebuyer is a HOME Eligible Buyer, and must supply City with all information necessary
to prove eligibility of a prospective buyer prior to closing. Any attempt to sell the Required
Improvements to a homebuyer who is not a HOME Eligible Buyer shall be an event of default
and shall result in automatic termination and reversion of all assets as described in Section 8.5.1.
In addition, the HOME Eligible Buyer must compiete a homeownership training and counseling
program prior to the closing of the purchase of the Required Improvements. This requirement
must be evidenced by a completion certiiicate from a HUD Certiiied Housing Counseling
Agency only. A copy of the certification shall be provided to the City. Failure of Developer to
provide such certification shall be an event of default.
4.9.3 Contract. Developer shall provide City with a copy of a sales contract for
approval prior to execution for each HOME Eligible Buyer. The sales contract must contain
provisions regarding the following, and wiii incorporate definitions from this contract as
relevant:
l. "The home you are purchasing was constructed with federal funds that require
the home remain affordable for up to 5 years ("Affordability Period"). This
means that if you sell or leave the home before the Affordability Period is
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over, you will be required to repay the City the amount of federal funds used
to construct the home. Therefore, as a condition of sale, you will be required
to execute a Note and Deed of Trust in favor of the City for the amount of
federal funds that were used to construct the home to secure the Affordability
Period. The City agrees that the lien will be subordinate to any purchase
money loans.
4.9.4. Developer to Provide Settlement Statement. At least 5 business days before each
closing, Developer will provide to City the estimated settlement statement. The settiement
statement shall account, with regard to the Required Improvements, for the (1) homebuyer
subsidies, (2) development subsidies (3) Developer Fee and (4) amount of Sales Proceeds to be
returned to City from settlement fiinds.
4.9.5. Timin�of Sale of Required Improvements. The Required Improvement must be
sold to an HOME Eligible Buyer within 4 months from the date of Completion. If the Required
Improvements are not sold within 4 months from the date of Compietion, the Developer shall
submit a status report must comply with requirements described under Section 8.1.4. Failure to
submit the report and/or failure to seil the Required Improvements within 4 months shall be an
event of default as described under Section 8.1.4.
4.10 Monitoring of Developer
4.10.1 Developer understands and agrees that it will be subject to monitoring by
City for compliance with the HOME Regulations for the duration of the Affordability Period
and until the project is closed in HUD's IDIS system. Developer will provide access to project
iiles as requested by City, HUD, the Comptroller General of the United States, and any of their
representatives during the Term, during the Affordability Period and for five years after
closeout of this Contract in HUD's IDIS system, and will meet all the reporting requirements set
out in this Contract. This Section shall survive the termination or expiration of this Contract.
4.10.2 City, HUD, the Comptroller General of the United States, and any of their
representatives shall have access at all reasonable hours to the Developer's ofiices and records
dealing with the use of the HOME Funds that are the basis of this Contract, and to its ofiicers,
directors, agents, employees, and contractors for the purpose of such monitoring with an
advanced notice of no less than 24 hours.
4.10.3. Developer agrees to lilcewise monitor the effectiveness of the services and
worlc to be performed by its contractors and subcontractors.
5. HOMEBUYER ASSISTANCE.
5.1 HAP Participation. To ensure that the affordability requirements are met, City requires
that the HOME Eligible Buyer, at least 60 days prior to closing, apply for a minimum of
$1,000.00 of closing cost and/or down payment assistance fi•om the City's HAP. Homebuyer
eligibility shall be determined by City in City's sole discretion using City HAP Eligibility
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Requirements. City shall enter into a written agreement with the homebuyer for the down
payment and/or closing cost assistance. If requested by the City, Developer shall timely provide
City with all documents and information necessary for City to process the homebuyer's HAP
application, especially the veriiication of homebuyer eligibility. If the homebuyer does not meet
City HAP Eligibility Requirements, Developer may not sell the Required Improvements to the
homebuyer.
5.2 HAP Deed of Trust. City shall secure the HAP loan by recording a deed of trust against
the Property. Upon recording the HAP Deed of Trust, the City will release the Developer's Deed
of Trust.
6. REPORTING AND DOCUMENTATION REQUIREMENTS
6.1 Record-iceenin� System. In the performance of this Contract, Developer shall
develop a record-lceeping system and shall promptly provide City with copies of any document
City deems necessary for the effective fiiliillment of City's monitoring and evaluation
responsibilities and the reports and documents outlined below. Specifically Developer wili lceep
or cause to be lcept an accurate record of all actions taken and all funds expended, with source
and bacic-up documents.
6.2 Records Retention. Developer will maintain all records related to this Contract
for a minimum of iive years after termination of the Contract.
7. DUTIES AND RESPONSIBILITIES OF CITY
7.1 HOME Funds.
7.1.1 Reimbursement of HOME Funds. City will reimburse Developer up to
$ D�n!n HOME Funds for eligibie expenses (excluding the Developer Fee) related to
construction of the Required Improvements, so long as such eligible expenses are in
conformance with the Budget and Project Schedule, and sufiicientiy proved by Complete
Documentation.
7.1.2 Timin� of Payment. Provided that Developer submits Complete
Documentation to the Director with respect to the Required Improvements in conformance with
this Contract, City will reimburse Developer for eligible expenses within 15 calendar days.
7.2. Monitorin�.
7.2.1 Monitorin�. City will monitor the activities and performance of
Developer and its contractors as necessary, but no less than annuaily as required by the HOME
Regulations, 24 CFR Part 92.504. City will monitor the performance of Developer in regard to
compliance with completion of tasics, duties and responsibilities as required under this Contract
with an advanced notice of no less than 24 hours.
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7.2.2 In addition to other provisions of this Contract regarding frequency of
monitoring, City reserves the right to perform deslc reviews or on-site monitoring of Developer's
compliance with the terms and conditions of this Contract, and of the adequacy and timeliness of
Developer's performance under this Contract. After each monitoring visit, City shall provide
Developer with a written report of the monitor's iindings. If the monitoring report notes
deficiencies in Developer's performance, the report shall include requirements for the timely
correction of said deficiencies by Developer. Failure by Developer to talce the action speciiied in
the monitoring report may be cause for suspension or termination of this Contract as provided in
Section 11.
7.3 CHDO Assistance. After the execution of this Contract, City will schedule a
meeting with CHDO to review and discuss the contractual requirements herein.
8. DEFAULT AND TERMINATION
8.1 Events of Default
8.1.1 Failure to Begin the Required Improvements. The Property shall be
acquired within 3 months of execution of the Contract. If Developer fails to begin
construction of the Required Improvements within 1 month of the acquisition of the
Property on which the Required Improvements will be located, City will notify
Developer in writing and the Developer will have 30 calendar days from the date of
receipt of the written notice to begin construction. If property is owned by the Developer
at time of Contract execution, construction shall begin within 1 month of the execution of
this Contract. If the Developer fails to begin construction of the Required Improvements
within such time, City shall have the right to terminate this Contract effective
immediately upon written notice to Developer of such intent with no penalty or liability
to City.
8.1.2 Failure to Complete the Required Improvements. If City determines that
the Required Improvements were not completed by the Completion Deadline, City will
notify Developer in writing and the Developer will have 30 calendar days from the date
of receipt of the written notice to complete the Required Improvements. If the Developer
fails to complete the Required Improvements within such time, City shall have the right
to terminate this Contract effective immediately upon written notice to Developer of such
intent with no penalty or liability to City, and to demand repayment of any HOME Funds
already disbursed to Developer.
8.1.3. Failure to Submit Complete Documentation. If Developer fails to submit
ail Complete Documentation within the term of this Contract, or if any submitted report
or documentation is not in compliance with this Contract or HOME Regulations as
determined by City, City will notify Developer in writing and the Developer will have 30
calendar days from the date of receipt of the written notice to submit or resubmit any
such report or documentation to City. If the Developer fails to submit or resubmit any
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such report or documentation within such time, City shall have the right to terminate this
Contract with no penalty or liability to City effective immediately, and to demand
repayment of any HOME Funds already disbursed to Developer. Notwithstanding
anything to the contrary herein, City will not be required to reimburse any HOME Funds
to Developer unless Complete Documentation is received and approved by City within
the term of the Contract.
8.1.4 Failure to Sell Required Improvements in Accordance with Section 4.9.5.
If Developer fails to sell the Required Improvements within 4 months of the
Completion of the Required Improvements, Developer will notify City in writing and the
Developer will have 15 calendar days from the date of the written notice to submit a
detailed plan describing how the Required Improvements will be sold to a HOME
Eligible Buyer by 6 months from Completion. The plan must be reviewed and approved
by the City. If the Required Improvement is not soid within 6 months from the date of
Completion, Developer must choose one of the following options within 30 days before
the 6 month deadline:
a. the Required Improvements will convei�t to rental unit(s) as described in
24 CFR 92.252 and the Developer will be responsible for the maintenance
and management of the Required Improvements. If this option is selected,
the City will execute a separate agreement enforcing the applicable
HOME requirements for HOME rental units; OR
b. all HOME funds provided to the Developer by the City under this Contract
shall be repaid to the City within 30 days and this Contract shall be
terminated as described in Section in 8.5.
8.1.5 In General. In addition to the defaults described in Sections 8.1.1,
8.1.2, 8.1.3, and 8.1.4 and unless specificaily provided otherwise in this Contract,
Developer shall be in default under this Contract if Developer breaches any term or
condition of this Contract. If such a breach remains uncured after 30 calendar days
following receipt of written notice by City referencing this Contract, or if Developer has
diligently and continuously attempted to cure following receipt of such written notice but
reasonably required more than 30 calendar days to cure, as determined by City, City shall
have the right to elect, in City's sole discretion, one of the remedies contained in Section
8.2 or to terminate this Contract effective immediately upon written notice to Developer
of such intent.
8.16 No Waiver. The waiver of a default or breach of any term, covenant, or
condition of this Contract shail not operate as a waiver of any subsequent default or
breach of the same or any other term, covenant or condition hereof.
81.7 Civil Criminal and Administrative Penalties Failure to perform all the
Contract terms may result in civil, criminal or administrative penalties, including, but not
limited to those set out in this Contract.
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8.2. City Options in Event of Default. If Developer fails to cure the default within
the time stated in the notice, City at its sole option may elect any combination of the following
actions:
8.2.1. extend Developer's time to cure;
8.2.2 disallow all or part of the cost of the activity or action not in compliance;
8.2.3 pursue any other legal remedies available to City to ensure compliance
with this Contract and the Deed of Trust, including foreclosure; and/or
8.2.4 terminate this Contract.
8.3. No Funds Disbursed while in Default. Developer understands and agrees that
no HOME Funds will be paid to Developer until ali defaults are cured to the satisfaction of City.
8.4. Basis for Termination.
8.4.1. Termination for Cause. City may terminate this Contract in the event of
Developer's default. Developer agrees that should City terminate this Contract for cause,
Developer shall not be considered for any other City contract involving HOME funds. Lilcewise,
Developer may terminate this Contract if City does not provide the HOME Funds substantially
as described in this Contract.
8.4.2 Termination for Convenience. In terminating under 24 C.F.R. 85.44, this
Contract may be terminated in whole or in part only as follows:
8.4.2.1. By City with the consent of Developer in which case the Parties
shall agree upon the termination conditions, inciuding the effective date and in the
case of partial termination, the portion to be terminated, or
8.4.2.2. By the Developer upon written notiiication to City, setting forth
the reasons for such termination, the effective date, and in the case of partiai
termination, the portion to be terminated. However, if, in the case of a partiai
termination, City determines that the remaining portion of the Contract to be
performed or HOME Funds to be expended wiil not accomplish the purposes for
which the Contract was made, City may terminate the Contract.
8.4.3 Dissolution of Developer Terminates Contract. In the event Developer is
dissolved or ceases to exist, all assets acquired with HOME Funds used in the development of
the house(s) under the project inciuding cash, interest payments from loans or otherwise, any
accounts receivable attributable to the use of HOME Funds, and any real or personal property
owned by Developer that was acquired or improved with HOME Funds shall automaticaily
transfer to City and this Contract shall terminate.
8.5 Results of Termination
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8.5.1. Reversion of Assets. In the event this Contract is terminated with or without
cause, all assets acquired with HOME Funds used in the development of the Required
Improvements including but not limited to pians, drawings, surveys, renderings, construction
documents and any other real or personal property owned by Developer that was acquired or
improved with HOME Funds shall belong to City and shall automatically transfer to City or to
such assignees as City may designate.
8.5.2 Waiver of Developer Fee. If this Contract terminates prior to the sale of
the Required Improvements to a HOME Eligible Buyer, the Developer waives all right and claim
to the Developer Fee.
8.5.3. Forfeiture of HOME Funds. In the event of termination, all grant funds
awarded to Developer pursuant to this Contract shall be immediately revolced, any HOME Funds
distributed to Developer shall be returned to City, and any approvals related to the Project that
is/are the subject of this Contract shall be immediately deemed revolced and canceled.
8.5.4 No Compensation After Date of Termination. In the event of termination,
Developer shall not receive any compensation for worlc undertalcen after the date of the
termination.
8.5.5. Rights of City Not Affected. Termination shall not effect or terminate any
of the rights of City as against Developer then existing, or which may thereafter accrue because
of such default, and the foregoing provision shall be in addition to any and all other rights and
remedies available to City under the law and the Deed of Trust, including, but not limited to,
compelling Developer to complete the Required Improvements under the terms of the Contract.
Such termination does not terminate any applicable provisions of this Contract that have been
expressly noted as surviving the term or termination of the Contract.
9. SURVIVAL. Any provision of this Contract that pertains to affordability, monitoring,
record lceeping and reports, along with any default and enforcement provisions necessary to
enforce such provisions, shall survive the termination of this Contract and shall be governed by
the HOME Regulations as well as the Deed of Trust.
10. REPAYMENT OF HOME FUNDS. All HOME Funds are subject to repayment to City
by Developer in the event the Required Improvements do not meet the requirements as set out in
this Contract and its Exhibits. It is expressly understood that upon the Completion of Required
Improvements, any HOME Funds not reimbursed under this Contract shall remain with City.
11. GENERAL PROVISIONS
11.1. Develoner Independent Contractor
Developer shall operate hereunder as an independent contractor and not as an officer,
agent, servant or employee of City. Developer shall have exclusive controi of, and the exclusive
right to controi, the details of the worlc and services performed hereunder, and all persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
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members, agents, servants, employees, contractors, project participants, licensees or invitees.
11.2. Doctrine of Respondeat Superior
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, contractors, project participants, licensees or
invitees, and nothing herein shall be construed as creating a partnership or joint enterprise
between City and Developer. It is expressly understood and agreed that no officer, member,
agent, employee, contractor, licensee or invitee of Developer, nor any project participant, is in
the paid service of City and that City does not have the legal right to control the details of the
tasks performed hereunder by Developer, its ofiicers, members, agents, employees, contractors,
project participants, licensees or invitees.
11.3 Religious Or�anization. No portion of the funds received by Developer
hereunder shall be used in support of any sectarian or religious activity. In addition, there must
be no religious or membership criteria for homebuyers of the HOME-funded proper�ty, pursuant
to The Fair Housing Act, Title VIII of the Civii Rights Act of 1968 (42 U.S.C. Sections 3601 et
seq. ).
11.4. Audit
11.4.1. Entities that Expend $500,000 or more in Federai Funds Per Year
All non-federal entities that expend $500,000 or more in Federal funds within one year,
regardless of the source of the Federal award, must submit to City an annual audit prepared
under specific reference to OMB Circular A-133. The audit shall cover the Developer's fiscal
years during which this Contract is in force. The audit must be prepared by an independent
cei�tiiied public accolmtant, be completed within six months following the end of the period
being audited and be submitted to City within 30 days of its compietion. Developer's audit
certification is attached hereto as Exhibit "D" —Audit Requirements. The Audit Certification
Form must be submitted to City within 60 days of the end of period being audited (Developer's
fiscal year). Non-proiit entities that expend less than $500,000 a year in Federal funds are
exempt from Federal audit requirements for that year, but records must be available for review or
audit by appropriate officials of the Federal agency, City, and General Accounting Ofiice.
11.4.2. City Reserves the Ri�ht to Audit
City reserves the right to perform an audit of Developer's program operations and
finances at any time during the term of this Contract with an advanced notice of no less than 24
hours if City determines that such audit is necessary for City's compliance with OMB Circular
A-133, and Developer shall allow access to ali pertinent materials. If such audit reveals a
questioned practice or expenditure, such questions must be resoived within 15 days after notice
to Developer of such questioned practice or expenditure. If questions are not resolved within this
period, City reserves the right to withhold further funding under this and/or future contract(s)
with Developer. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT
DEVELOPER HAS MISUSED, MISAPPLIED OR MISAPPROPRIATED ALL OR ANY
PART OF THE HOME FUNDS, DEVELOPER AGREES TO REIMBURSE CITY THE
AMOUNT OF SUCH MONIES SO MISUSED, MISAPPLIED OR MISAPPROPRIATED,
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PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE
LEVIED AGAINST CITY BY HUD BECAUSE OF SUCH MISUSE, MISAPPLICATION
OR MISAPPROPRIATION.
11.5. Venue
Venue for any action, whether real or asserted, at law or in equity, arising out of the
execution, performance, attempted performance or non-performance of this Contract, shall lie in
Tarrant County, Texas.
11.6 Governing Law
In any questions involving state law, for any action, whether real or asserted, at law or in
equity, arising out of the execution, performance or non-performance of this Contract, in any
issue not governed by federal law, the choice of law shall be the law from the State of Texas.
11.7 Severability.
The provisions of this Contract are severable, and, if for any reason a clause, sentence,
paragraph or other part of this Contract shall be determined to be invalid by a court or Federal or
state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
provision.
11.8. Written Agreement Entire A�reement.
This written instrument and the Exhibits attached hereto, which are incorporated by
reference and made a pai~t of this Contract for all purposes, constitutes the entire Contract by the
Parties hereto concerning the worlc and services to be performed under this Contract. Any prior
or contemporaneous oral or written agreement, which purports to vary the terms of this Contract,
shall be void. Any amendments to the terms of this Contract must be in writing and must be
executed by each Party to this Contract.
11.9. Para�raph Headin�s for Reference Only, No Le�al Si�nificance.
The paragraph headings contained herein are for convenience in reference to this
Contract and are not intended to deiine or to limit the scope of any provision of this Contract.
11.10 Compliance With All Applicable Laws and Re�ulations
Developer agrees to comply fully with all applicable laws and regulations that are
currently in effect or that are hereafter amended during the performance of this Contract. Those
laws include, but are not limited to:
• HOME Investment Partnership Act as set out above
• Title VI of the Civii Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.)
including provisions requiring recipients of federal assistance to ensure
meaningful access by person of limited English proficiency
• The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
Sections 3601 etseq.)
• Executive Orders 11063, 11246 as amended by 11375 and 12086 and as
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supplemented by Department of Labor regulations 41 CFR, Part 60
• The Age Discrimination in Employment of 1967
• The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
• Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and
24 CFR Part 8 where applicable
• National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321
et sey. ("NEPA") and the related authorities listed in 24 CFR Part 58.
• The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean
Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.) and the related
Executive Order 11738. In no event shall any amount of the assistance provided
under this Contract be utilized with respect to a facility that has given rise to a
conviction under the Clean Air Act or the Clean Water Act.
• Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.)
specifically including the provisions requiring employer verifications of legal
status of its employees
• The American with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.),
the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et
seq. ) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix
A
• Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
• Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR
Part 23, Subpat�t F
• Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
• Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood
standards for new construction projects
• Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review
• Regulations at 24 CFR Housing and Urban Developments, Part 92 Home
Investments Partnership Program
11.11 HUD-Assisted Proiects and Employment and Other Economic Opportunities
(Section 3).
If the construction of the Required Improvements will cause the creation of netiv
employment, training, or contracting opportunities on a contractor or subcontractor level
resuiting from the expendih�re of the HOME Funds, Developer shall comply with the following
and will ensure that its contractors. If the worlc performed under this Contract is on a project
assisted under a program providing direct Federal financial assistance from HUD, Section 3 of
the Housing and Urban Development Act of 1968 as amended (12 U.S.C. Sections 1701 et seq.)
and its related regulations at 24 CFR Part 135, specifically 24 CFR 135.38 ("Section 3"),
requires that the following clause, shown in italics, be inserted in all covered contracts ("Section
3 Clause"):
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Section to be quoted in covered contracts begins:
"A. The work to be perfor•med unc�er this contract is subject to the
f�equir�ements of Section 3 of Housing and Urban Development Act of 1968, as
amended, 12 U. S. C. section 1701 u(Section 3). The purpose of Section 3 is to
ensure that employment and other• economic opportunities gener•ated by HUD
assisted or• HUD-assisted pr�ojects covef�ed by Section 3, shall to the greatest
extent feasible, be dir•ected to low- und very-low income per•sons, par•trcularly
pey�sons who af•e r•ecipients of HUD assistance for• housing.
B. The paf�ties to this contract agree to comply with HUD's regulations in 24
CFR Par•t 135, which implement Section 3. As evidenced by their� execution of
this contf�act, the parties to this contract certify that they ar�e under� no contr•actual
or• other• impediment that would pr•event them fr•om complying with the Par•t 135
r•egatlations.
C. The contf•actor agr�ees to send to each labor organization or•
f�epresentative of tivor•liers with which it has a collective baf•gaining agreement or•
other under•standing, if any, a notice advising the labor• or�ganization of• wor•ker•s'
repf•esentutives of the contr�actor's commitments zcnder this Section 3 clause and
will post copies of the notzce zn conspicuous places at the work site where both
employees and applicants for trczining and employment positions can see the
notice. The notice shall descr�ibe the Section 3 pr•efer•ence, shall set for�th
minimum number cznd job titles sarbject to hir�e, availabiliry of appr•entice and
training positions, the qualifications for• each; and the name and location of the
person(s) taliing applications for each of the positions; and the anticipated date
the wor•k shall begin.
D. The contr•actor� agf•ees that it will include this Section 3 clause in ever y
subcontr•act to comply with regadation in 24 CFR Par•t 135, and agt�ees to talie
appr�opr•iate action, as pf�ovided in an applicable provision of the sz�bcontract of•
in this Section 3 clause, upon finding that the subcontractor• is in violation of the
r•egulations in 24 CFR Par�t 135. The contractor� will not subcontr�act with czny
subcontrcrctor• wher•e it has notice of� knowledge that the subcontractof• has been
found in violatzon of r•egulations in 24 CFR 135.
E. The contractor• will cef�t� that any vacant employment positiorrs,
rncluding training positions that ar•e filed.• (1) after the contr•actor is selected but
befoye the contract is execartecl, cznd (2) with persons other• than those to whom the
f�egulations of 2� CFR Part 135. The contractor will not subcontf�uct with any
subcontr•actor where zt has notice or� knowledge that the subcontr•actor has been
found in violcztion of r•egi�lations in 24 CFR 135.
F. Noncompliance with HUD's regatlation in 24 CFR Par�t 135 may r•esult in
sanctrons, ter�mination of this contf�act for• default, and debar�ment or• sarspension
from future HUD assisted contracts.
G. With r•espect to work perfof�med in connection with Section 3 cover•ed
Indian housing ussistance, section 7(b) of the Indian Self-Deter�mination and
Education Assistance Act (25 U.S C. section 450e) also applies to the wor•k to be
perfof•med undef� this Contr•act. Section 7(b) r�equires that to the gr�eatest extent
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feasible (i) pf�efer•ence and oppor�tunities for tr�aining and employment shall be
given to Indians, and (ii) preference in the award of contracts and subcontr�acts
shall be given to Indian of•ganizations and Indian-owned Economic Entef pr•ises.
Parties to this contruct that are subject to the pr•ovisions of Section 3 and Section
79b) ugr•ee to comply with Section 3 to the mcrximum extent feaszble, but not in
der•ogation of complrance wiih Section 7(b). "
Section to be quoted in covered contracts ends.
City and Developer understand and agree that, if applicable to the project, compliance
with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable
rules and orders of HUD shall be a condition of the Federal financial assistance provided to the
project binding upon City and Developer, and their respective successors, assigns and their
contractors. Failure to fulfill these requirements shall subject Developer and its contractors and
their respective successors and assigns to those sanctions speciiied by the grant agreement
through which Federal assistance is provided and to such sanctions as are speciiied by 24 CFR
Part 135.
11.11.1 Section 3 Reporting.
City and Developer understand and agree that compliance with the provisions of
Section 3, the regulations set forth in 24 CFR Pai�t 135, and all applicable rules and
orders of HUD shall be a condition of the Federal iinancial assistance provided to the
project binding upon City and Developer, and their respective successors, assigns,
contractors and subcontractors. Failure to fulfill these requirements shali subject
Developer and its contractors and subcontractors and their respective successors and
assigns to those sanctions specified by the grant agreement tluough which Federal
assistance is provided and to such sanctions as are speciiied by 24 CFR Part 135. The
responsibilities include:
L Implementing procedures to notify Section 3 residents and business
concerns about training, employment, and contracting opportunities generated by
Section 3 covered assistance;
2. Notifying potentiai contractors worlcing on Section 3 covered projects of
their responsibilities;
4. Facilitating the training and employment of Section 3 residents and the
award of contracts to Section 3 business concerns;
5. Assisting and actively cooperating with the Department in malcing
contractors and subcontractors comply;
6. Refraining from entering into contiacts with contractors that are in violation
of Section 3 regulations;
7. Documenting actions talcen to comply with Section 3; and
8. Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
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In order to comply with the Section 3 requirements, Developer must submit the
Section 3 Reporting Forms attached hereto as Exhibit "K" - Section 3 Reporting
Requirements.
11.11.1.1 Report to the City on a quarterly basis, all applicants for
employment, and all applicants for employment by
contractors and any subcontractors. This shall include
name, address, zip code, date of application, and status
(hired/not-hired) as of the date of the repoi-t.
11.11.1.2 Notify availabie positions to the pubiic for open
competition, and provide documentation to City with the
quarterly report that demonstrates such open advertisement,
in the form of printout of Texas Worlcforce Commission
posting, copy of newspaper advertisement, copy of flyers
and listing of locations where flyers were distributed, and
the lilce.
11.11.1.3 Report to the City on a quarterly basis, all contracts
awarded by contractors and any subcontractors. This shall
include name of contractor and/or subcontractor, address,
zip code, and amount of award as of the date of the report.
11.12. Prohibition Against Discrimination
Developer, in the execution, performance or attempted performance of this Contract,
shall comply with all non-discrimination requirements of 24 CFR 92.350 and the ordinances
codified at Chapter 17, Article III, Division 4— Fair Housing of the City Code. Developer may
not discriminate against any person because of race, color, sex, gender, religion, national origin,
familiai status, disability or perceived disability, sexuai orientation, gender identity, gender
expression, or transgender, nor will Developer permit its officers, members, agents, or
employees to engage in such discrimination.
This Contract is made and entered into with reference specificaily to the ordinances
codiiied at Chapter 17, Article III, Division 3- Employment Practices of the City Code, and
Developer hereby covenants and agrees that Developer, its officers, members, agents, employees
and contractors, have filily complied with all provisions of same and that no employee, or
applicant for employment has been discriminated against under the terms of such ordinances by
either or its officers, members, agents, employees or contractors.
During the performance of this Contract, Developer agrees that Developer will not
unlawfully discriminate against any employee or appiicants for employment because of race,
color, sex, gender, religion, national origin, familial status, disability or perceived disability,
sexual orientation, gender identity, gender expression or transgender. Developer will take
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afiirmative action to ensure that applicants are hired without regard to race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual orientation,
gender identity, gender expression or transgender and that employees are treated fairly during
employment without regard to their race, color, sex, gender, religion, national origin, familial
status, disability or perceived disability, sexual orientation, gender identity, gender expression or
transgender. Such action shall include, but not be limited to, the following: empioyment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for training, including appt•enticeship.
Developer agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination clause.
Developer will, in all solicitations or advertisements for employees placed by or on
behalf of Developer, state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or transgender.
Developer covenants that neither it nor any of its ofiicers, members, agents, employees,
or contractors, while engaged in performing this Contract, shail, in connection with the
employment, advancement or discharge of empioyees or in connection with the terms, conditions
or privileges of their employment, discriminate against persons because of their age or because
of any disability or perceived disability, except on the basis of a bona iide occupational
qlialification, retirement plan or statutory requirement.
Developer further covenants that neither it nor its ofiicers, members, agents, employees,
contractors, or persons acting on their behalf, shail specify, in solicitations or advertisements for
employees to worlc on this Contract, a maximum age limit for such employment unless the
specified maximum age limit is based upon a bona iide occupational qualiiication, retirement
plan or statutory requirement.
If Developer is found to be in noncompliance with the nondiscrimination clauses of this
Contract or with any of such rules, regulations or orders, this Contract may be canceled,
terminated or suspended in whole or in part and Developer may be declared ineligible for further
government contracts in accordance with procedures authorized in Executive Order ll246 of
September 24, 1965, and such other sanctions may be imposed and remedies involced as
provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the
Secretary of Labor or as otherwise provided by law.
Developer wiil require the provisions of this Section 11.11.1 to be included in each of its
subcontracts for worlc performed on the project unless exempted by rules, regulations or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September
24, 1965, so that such provisions will be binding upon each subcontractor or vendor. Developer
will talce such action with respect to any subcontract or purchase order as City may direct as a
means of enforcing such provisions, including sanctions for noncompliance.
1112.3. Developer's Contractors and ADA
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Under the provisions of the Americans With Disabilities Act of 1990 ("ADA"),
Developer warrants that it and any of its contractors will not unlawfully discriminate on the basis
of disability in the provision of services to the general public, nor in the availability, terms and/or
conditions of employment for applicants for employment with, or employees of Developer or
any of its contractors. DEVELOPER WARRANTS IT WILL FULLY COMPLY WITH
ADA'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND
LOCAL LAWS CONCERNING DISABILITY AND WILL DEFEND, INDEMNIFY AND
HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED
BY THIRD PARTIES OR CONTRACTORS AGAINST CITY ARISING OUT OF
DEVELOPER'S AND/OR ITS CONTRACTORS' ALLEGED FAILURE TO COMPLY
WITH THE ABOVE-REFEI2ENCED LAWS CONCERNING DISABILITY
DISCRIMINATION IN THE PERI�'ORMANCE OF THIS CONTRACT.
11.13. Prohibition A�ainst Interest / Conflict of Interest
11.13.1 Developer shall establish safeguards to prohibit its employees, board
members, advisors and agents from using positions for a purpose that is or gives the
appearance of being motivated by a desire for private gain for themselves or others,
particularly those with whom they have family, business or other ties. Developer shall
disclose to City any conflict of interest or potential conflict of interest described above,
immediately upon discovery of such.
11.13.2 No persons who are employees, agents, consultants, ofiicers or elected
officials or appointed officials of City or of Developer who exercise or have exercised
any functions or responsibilities with respect to activities assisted with HOME funds or
who are in a position to participate in a decision-malcing process or gain inside
information with regard to these activities, may obtain a financial interest or benefit from
a HOME-assisted activity or have an interest in any contract, subcontract or agreement
with respect thereto, or the proceeds thereunder, either for themselves or those with
whom they have family or business ties, during their tenure or for one year thereafter,
unless they are accepted under the procedures set forth at 24 C.F.R. § 92.356.
11.13.3 Developer affirms that it will adhere to Chapter 36 of the Texas
Penal Code, which prohibits bribery and undue influence of public servants.
11.13.4. In the procurement of property and services by Developer, the
conflict of interest provisions of 24 CFR Part 85.36 and 24 CFR Part 84.42, respectively,
shall apply. In ail cases not governed by those sections, the provisions of 24 CFR Part
92.356 of the HOME Regulations shall apply.
11.14. Labor Standards
11.14.1 As appiicable, Developer agrees to comply with the requirements of
the Secretary of Labor under the Davis-Bacon Act (40 U.S.C. 276a et seq. and 18 U.S.C.
874) as amended, the provisions of Contract Work Hours and Safety Standards Act (40
U.S.C. 3701 et seq.) and all other applicable Federal, state and locai laws and regulations
CHDO Contr�act with TCHP for 1246 E. .7e er•son
Page 23 of 33
pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Kicic Back Act (18 U.S.C.
874 et seq.) and its impiementing regulations of the U.S. Department of Labor at 29 CFR
Pai�t 3. Developer shall maintain documentation that demonstrates compliance with hour
and wage requirements of this Contract and HOME Regulations. Such documentation
shall be made available promptly to City, HUD, U.S. Department of Labor, the
Comptroller General of the United States, and any of their representatives for review
upon request.
11.14.2 Developer agrees that all contractors engaged under contract for
construction, renovation or repair worlc iinanced in whole or in part with assistance
provided under this Contract, shall comply with Federal requirements adopted by City
pertaining to such contracts and with the applicable requirements of the regulations of the
Department of Labor under 29 CFR Parts l, 3, 5 and 7 governing the payment of wages
and ratio of apprentices and trainees to journey workers; provided that, if wage rates
higher than those required under these regulations are imposed by state or local law,
nothing hereunder is intended to relieve Developer of its obligation, if any, to require
payment of the higher wage. Developer shali cause or require to be inserted in full, in all
such contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
11.15. Subcontractin� with Small and Minoritv Firms, Women's Bu�iness
Enternrises and Labor Surplus Areas.
11.15.1 For procurement contracts $50,000.00 or larger, Developer
agrees to document a good faith effort to involve Minority Business Enterprises
and Small Business Enterprises and to provide them equal opportunity to compete
for contracts for construction, provision of professional services, purchase of
equipment and supplies and provision of other services required by City.
Developer agrees to incorporate the City's BDE Ordinance, and all amendments
or successor policies or ordinances thereto, into ali contracts and subcontracts for
procurement $50,000.00 or larger, and will further require all persons or entities
with which it so contracts to document a good faith effort with said ordinance.
11.15.2 It is national policy to award a fair share of contracts to
disadvantaged business enterprises ("DBEs"), small business enterprises
("SBEs"), minority business enterprises ("MBEs"), and women's business
enterprises ("WBEs"). Accordingiy, afiirmative steps must be talcen to assure
that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of
supplies, equipment, construction and services.
11.16. Other Laws
The failure to list any federal, state or city law, ordinance or regulation that is appiicable
to Developer does not excuse or relieve Developer fi•om the requirements or responsibilities in
regard to following the law, nor from the consequences or penalties for Developer's failure to
follow the law, if appiicabie.
CHDO Contf•act rvith TCHP for 1246 E. Je f erson
Page 24 of 33
11.17. Assi�nment
Developer shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and shali constitute a breach of this Contract.
11.18. Ri�ht to Insnect Contractor Contracts
It is agreed that City has the right to inspect contracts between Developer and any
contractor engaged in any activity in conjunction with this HOME-funded project.
11.19. Force Maieure
If Developer becomes unable, either in whole or part, to fuliill its obligations under this
Contract due to acts of God, strikes, locicouts, or other industriai disturbances, acts of public
enemies, wars, blocicades, insurrections, riots, epidemics, earthqualces, fires, floods, restraints or
prohibitions by any court, board, department, commission or agency of the United States or of
any States, civil disturbances, or explosions, or some other reason beyond such Developer's
control (collectively, "Force Majeure EvenY'), the obligations so affected by such Force Majeure
Event will be suspended only during the continuance of such event. Developer will give City
written notice of the existence, extent and nature of the Force Majeure Event as soon as
reasonably possible after the occurrence of the event. Developer wili use commercialiy
reasonable efforts to remedy its inability to perform as soon as possible. Failure to give notice
will result in the continuance of the Developer's obligation regardless of the extent of any
existing Force Majeure Event.
11.20 HOME Requirements. Developer agrees to comply with all
requirements of the HOME Program as stated in 24 CFR Part 92, including, but not limited to
the following:
11.20.1 Environmental Review. HOME Funds will not be paid, and costs
cannot be incurred until City has conducted and completed an environmental review of
the proposed Project site as required under 24 CFR Part 58. The environmental review
may result in a decision to proceed with, modify, or cancel the project. Further,
Developer will not undertalce or commit any fiinds to physical or choice limiting actions,
including property acquisition, demolition, movement, rehabilitation, conversion, repair
or construction prior to the environmental clearance, and any violation of this provision
will result in the denial of any funds under this Contract.
l 1.20.2 Contract Not Constitutin� Commitment of Funds or Site Approval.
Notwithstanding any provision of this Contract, the Parties agree and acicnowledge that
this Contract does not constitute a commitment of funds or site approval, and that such
commitment of funds or approval may occur only upon satisfactory completion of
environmental review and receipt by City of an authorization to use grant funds from
HUD under 24 CFR Part 58.
CHDO Contr•act with TCHP fof• 1246 E. .7e, er•son
Page 25 of 33
11.20.3 Compliance with the Uniform Relocation Act. Developer shall
comply with the relocation requirements of 24 CFR Part 92.353 and all other applicable
Federal and state laws and city ordinances and requirements.
11.20.4 Compliance with Davis-Bacon. Developer will comply with the
Davis-Bacon Act as described on Exhibit "H" — Davis Bacon Requirements of this
Contract. In order to monitor for compliance, Developer shall provide City access to
employee payrolls, contractor and subcontractor payrolis and other wage information for
persons performing construction of the Required Improvements. In addition, Developer
shall ensure that City will have access to employees, contractors and subcontractors and
their employees in order to conduct onsite interviews with laborers and mechanics.
Additionai requirements and forms that should be used to comply with this section are in
the following exhibits: Exhibit "H-1"- Wage Determination; Exhibit "H-2"- Contractor
Information Form; Exhibit "H-3_- Subcontractor Information Form;; Exhibit "H-4 —
Labor Relations Guide; Exhibit "H-5" — Start of Construction Form; Exhibit "H-6" —
Construction Compiete Form; Exhibit "H-7" — EEO Statement; Exhibit "H-8" — Payroll
Deduction Authorization Form; and Exhibit "H-9" — Ofiicer Appointment Form
11.20.5 Developer Procurement Standards. Developer shall establish
procurement procedures to ensure that materials and services are obtained in a cost
effective manner. When procuring for services to be provided under this Contract,
Developer shall comply at a minimum with the nonprofit procurement standards at 24
CFR Part 84.40 - 84.48.
11.20.6 Cost Principles/Cost Reasonableness. Developer shall administer
their use of HOME Funds in compliance with OMB Circular A-122, "Cost Principles for
Non-Profit Organizations", as amended from time to time. The allowability of costs
incurred for performance rendered shall be determined in accordance with OMB Circular
A-122, as supplements by the provisions of this Contract.
11.20.7 Developer must talce the mitigation actions outlined in Exhibit "J"
— Environmental Mitigation Action. Faihire to complete the required mitigation action
is an event of default under this Contract.
12. INDEMNIFICATION AND RELEASE
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY 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 OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
CHDO Contf•act with TCHP for 1246 E. .7effetson
Page 26 of 33
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY; AND DEVELOPER HEREBY
ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY 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 KINDS 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
PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN
PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER
LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND
HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE
OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN
CONNECTION WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS,
MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS AND
SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME FORM AS ABOVE.
CHDO Contract with TCHP fof• 1246 E. .Ie f erson
Page 27 of 33
13. WAIVER OF IMMUNITY BY DEVELOPER
If Developer, as a charitable or nonproiit 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, Developer hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
14. INSURANCE AND BONDING
Developer will maintain coverage in the form of insurance or bond in the amount of
$117,000.00 to insure against loss from the fraud, theft or dishonesty of any of Developer's
ofiicers, agents, trustees, directors or employees. The proceeds of such insurance or bond shall
be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct.
To effectuate such reimbursement, such fidelity coverage shall include a rider stating that
reimbursement for any loss or losses shall name the City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 days after the
Effective Date, certiiicates of insurance as proof that it has secured and paid for policies of
commercial insurance as speciiied herein. If City has not received such certiiicates as set forth
herein, Developer shall be in defauit of the Contract and City may at its option, terminate the
Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract. Developer
shail maintain, or require its general contractor to maintain, the following coverage and limits
thereof:
Commercial General Liability (CGL) Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liabilitv Insurance
$1,000,000 each accident on a combined single-limit basis, or
$250,000 Prope��ty Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsecl to cover "Any Auto" defined as autos owned, hired and
non-owned. Pending availability of the above coverage and at the discretion of City, the policy
shall be the primary responding insurance policy versus a personal auto insurance policy if or
when in the com•se of Developer's business as contracted herein.
CHDO Contract with TCHP for 1246 E. .7e er•son
Page 28 of 33
Worlcers' Compensation Insurance
Part A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
Note: Such insurance shail cover employees performing worlc on any and all projects
including but not limited to construction, demolition, and rehabilitation. Developer or its
contractors shall maintain coverage, if applicable. In the event the respective contractors
do not maintain coverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
fi•equentiy than once every 12 months, and Developer shall revise such amounts within 30 days
following notice to Developer of such requirements.
Developer will submit to City documentation that it, and its generai contractor, has obtained
insurance coverage and has executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured pa��ties shall include employees,
ofiicers, agents, and volunteers of City.
The Worlcers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request certificate(s) of insurance shall not be construed as a
waiver of such requirement or as a waiver of the insurance requirements themselves.
Insurers of Developer's insurance policies shall be licensed to do business in the state of Texas
by the Department of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to City insofar as their iinancial strength and solvency and
each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurance industry standard rating otherwise approved by City.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise
approved by City.
In the event there are any local, federal or other regulatory insurance or bonding requirements for
the project, and such requirements exceed those specified herein, the former shall prevail.
CHDO Contract with TCHP for 1246 E. Jefferson
Page 29 of 33
Developer shall require its contractors to maintain applicable insurance coverage, limits, and
other insurance requirements as those specified herein; and, Developer shall require its
contractors to provide Developer with certiiicate(s) of insurance documenting such coverage.
Also, Developer shall require its contractors to have City and Developer endorsed as additional
insureds (as their interest may appear) on their respective insurance policies.
Directors and Ofiicers Liability coverage shall be in force and may be provided on a claim made
basis. This coverage may aiso be referred to as Management Liability, and shall protect the
insured against claims arising out of alleged errors in judgment, breaches of duty and wrongful
acts arising out of their organizational duties. Coverage shali protect not only the entity, but all
past, present and future directors, ofiicers, trustees, employees, volunteers and committee
members.
Developer shall require its buiider to maintain buiiders rislc insurance at the value of the
construction unless covered by the Developer.
15. CERTIFICATION REGARDING LOBBYING
The undersigned representative of Developer hereby certifies, to the best of his or her
lcnowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on behalf of
Developer, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the malcing 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.
If any funds other than federally appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, member of Congress in connection with this Federal contract, grant,
loan or cooperative agreement, Developer shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," under its instructions.
This certiiication is a material representation of fact upon which reliance was
placed when this Contract was made or entered into. Submission of this
cei-tiiicate is a prerequisite for making or entering into this Contract imposed by
31 U.S.C. Section 1352. Any person who fails to iile the required certification
shali be subject to a civii penalty of not less than $10,000.00 and not more than
$100,000.00 for each such failure.
CHDO Contract with TCHP for 1246 E. Je ff'erson
Page 30 of 33
Developer shall require that the language of this certiiication be included in all
subcontracts or agreements involving the expenditure of Federal funds.
16. LITIGATION AND CLAIMS
Developer shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Developer in conjunction with this
Contract or the project. Developer shail furnish immediately to City copies of all pertinent
papers received by Developer with respect to such action or claim. Developer shall provide a
notice to City within 10 days upon filing under any banlcruptcy or iinancial insolvency provision
of law.
17. NOTICE
Ail notices required or permitted by this Contract must be in writing and are deemed
delivered on the earlier date of the date actually received or the third day following (i) deposit in
a United States Postal Service post office or receptacle; (ii) with proper postage, certified mail
return receipt requested; and (iii) addressed to the other Party at the address set out below or at
such other address as the receiving Party designates by proper notice to the sending Party.
Citv
City Manager's Ofiice
1000 Throcicmorton Street
Fort Worth, TX 76102
Copy to:
City Attorney's Ofiice
1000 Throcicmorton Street
Fort Worth, TX 76102
Copy to:
Director of Housing and Economic Development
1000 Throcicmorton Street
Fort Worth, TX 76102
President of Tarrant Countv Housin� Partnership, Inc.
3204 Collinsworth Street
Fort Worth, TX 76107
18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and ofiiciai motion, resolution or action passed or talcen, to enter into this Contract
and to perform the responsibilities herein required.
CHDO Contf�act tivith TCHP for 1246 E. .7e ffef•son
Page 31 of 33
19. COUNTERPARTS
This Contract may be executed in multiple counterparts, each of which will be deemed an
original, but which together will constitute one instrument.
IN WITNESS WHEREOF. the Parties h� •eto have executed this
Worth, Tarrant County, Texas,
ATTEST:
M&C:
ay of �� '� �� . ��k__ , 2013 .
�, ` �
„�°°.: �.
�
OF FORT WORTH
Contract in Fort
�'ernando Co a, sistant City Manager
Date: � �3
Date: `¢�*`.�_,�� �.�yya.'�"
� ��5 � l �e ; 3/a����/a-
APEROVED AS TO FORM AND LEGALITY:
il
/�� � ;�' ;�,; `--
�ssistant City Attor ey
TARRANT COUNTY HOUSING
RTNERSHIP, INC.
By•
D a Van ess Pre ' nt
Date: 5 /o /3
CHDO Contract tivith TCHP for� 1246 E. Je fferson
Page 32 of 33
OFFICIA6. RECORD
Clif SECRETARlf
�'fo �OiiTH, TX
Exhibits:
Exhibit "A" — Project Summary / Scope of Worlc
Exhibit "A-1"- Final Elevations and Proposed Plans and Specifications
Exhibit "A-2"- Legal Description
Exhibit "B" — Project Schedule
Exhibit "C" — Budget
Exhibit "D" — Audit Certification Form and Audit Requirements
Exhibit "E-1" — Invoice
Exhibit "E-2" — Detailed Statement of Costs
Exhibit "E-3" — Client Data Report
Exhibit "F"- Standard of Bacicup Documentation
Exhibit "G" — 24 CFR Part 92 Subpart F— Project Requirements
Exhibit "H" — Davis Bacon Requirements
Exhibit "H-1"- Wage Decision
Exhibit "H-2"- Contractor Information Form
Exhibit "H-3 - Subcontractor Information Form
Exhibit "H-4 — Labor Relations Guide
Exhibit "H-5" — Start of Construction Form
Exhibit "H-6" — Construction Complete Form
Exhibit "H-7" — EEO Statement
Exhibit "H-8" — Payroll Deduction Authorization Form
Exhibit "H-9" — Officer Appointment Form
Exhibit "I"- Deed of Trust Form
Exhibit "J"- Environmental Mitigation Action (Not Applicable)
Exhibit "K"- Section 3 Reporting Requirements
CHDO Contract with TCHP for 1246 E. Jef erson
Page 33 of 33
EXHIBIT "A"
PROJECT SUMMARY - SCOPE OF WORK
1246 E. JEFFERSON
DESCRIPTION:
Developer will construct a 1404 square foot, 3bedroom and 2 batluoom single-family home on a lot
size of approximately 6,000 square feet. Construction will include a one car detached garage. Fencing
will be located at the rear and side yards. Landscaping will include front yard.
The construction shall contain the following accessibility requirements
The following appliances and related amenities will be included in the sale of the house:
s Ceiling Fan(s) in 3 BR, 1 LR.
• Washer and Dryer hoolcups
• Central Air Conditioning
• Stove
o Dishwasher
• Vent-a-hood
• Garbage Disposal
• Electric Garage Door with Remote
• Mailbox located at door
The following materials shall be used for the construction of the Required Improvements
• Appliances included with the sale
• Fence (bacic yard)
• Landscaping (front)
• Roofing Materials 3 TAB 25 YR
• Siding (percentage) 100%
• Foundation Type Post Tension
• HVAC 15 Seer Heat Pump
s (the "Project").
CHDO Funds - Exhibits
EXHIBIT "A-1"
FINAL ELEVATIONS AND PROPOSED PLANS AND SPECIFICATIONS
CHDO Funds - Exhibits
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EXHIBIT "A-2"
LEGAL DESCRIPTION
Highland Park Addition - Ft Wth Blk 47 Lot 12
CHDO Funds - Elhibits
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1246 E. Jefferson
Phase Activity Beginning Weelc — subject to
weather ermittin
PHASE I ACTNITIES: Contract signed May 13
Lot Acquisition/ Preparation May 20
Demolition)
Augi�st 12
Plumbing
August 19
Foundation
PHASE I DEADLINE:
Au ust 23 lst Payment $36,400
PHASE II ACTNIITES: Framing August 26
Roofing September 2
Insultation September 9
Siding / Brick September 16
Top-out Plumbing, Electrical, HVAC September 23
PHASE II DEADLINE: 2°�� Payment $38,500
October 4
PHASE III ACTNIITES: Sheetrocl<, Tape/Bed/Texture/Trim-out October 7
Paint October 21
Cabinets, Counte��tops October 28
HVAC, Plumbing, Electrical, Finish- November 4
Out
PHASE III DEADLINE: 3r`� Payment $28,500
November 8
PHASE N ACTIVIITES: Landscape, Paving November 11
Flooring November 18
Appliances, Interior trim-out/finish November 25
PHASE N DEADLINE: Construction Final Payment $13,600
November 29
CONSTRUCTION TOTAL $117,000
DEVELOPER FEE Paid at time of home sale to HOME $11,700
Eli ible Bu er
*Developer wiil be reimbursed for eligible expenses only. The amounts are estimates and are subject to
change.
C'F{T�O Funcis -- �xl�ibi9s
Exhibit C
Budget
BUDGET —1246 E. Jefferson
Total Cost: $ _117,000
Project HOME Funds Awarded: $_117,000
Operating Funds Awarded: $
TOTAL AWARDED FUNDS: $_117,000
'� Please note that all funding will made on a reimbursable basis only.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME $ OTHER $ SOURCES OF TOTAL $
FUNDS OTHER FUNDS FUNDS
(1) (2) (Names) (1+2)
1. Market Stud
2. Feasibility (ie: preliminary work
write-u , cost estimates, desi n
3. Other
Total Predevelopment Cost (1+2=3)
Development Cost
4. Land and/or building acquisition 2,100 2,100
5. Site Preparation 3,100 3,100
6. Construction Cost 99,200 99,200
7. Fence 4,300 4,300
8. Landscape 2,100 2,100
9. Contingency
10. Appraisal 475 Proceeds of Sale 475
11. Architect & Engineering Fees 2,500 2,500
12. Construction Management Fee
13. Construction �oan Interest
14. Property Survey 500 500
15. Legal Fees 250 Proceeds of Sale 250
16. Real Estate Fees 4,680 Proceeds of Sale 4,680
17. Utility Hookup/Impact Fees 3,200 3,200
18. Title & Recording Fees 78o Proceeds of sale 780
19. Program Related Expenses 6,25o CHDO Operating Funds 6,250
20. Construction Management
21, Bond Fees
Total Development Cost (Total of 117,000 129,435
items 4 — 21
Total Project Cost 117,000 12,435 129,435
CHDO Funds - Exhibits
EXHIBIT "D"
AUDIT REQUIREMENTS
Pages 1-2: Summary of Audit Requirements
• Page 3: Single Audit Report Checklist
• Page 4: Audit Certification Form
CHDO Funds - Exhibits
•
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards (from City of Fort Worth and other funding
sources) during their fiscal years shall obtain either an annual single audit or a program specific audit.
Organizations may have a program specific audit in accordance with OMB Circular A-133, or other standard
set forth in the Contract if applicable, if they expended funds for only one federal program as listed in the
Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than one federal program, a
single audit is required. The audited time period is the organization's fiscal year, and not the City of Fort
Worth's funding period.
The audit shali be conducted by a certified public accountant (CPA) that is licensed at the time of the audit
by the appropriate regulatory body. The CPA shall meet all of the general standards concerning
qualiiications, independence, due professional care and quality control as required by Gover�nment Aa�diting
Standaf�ds, including the requirements for continuing professional education and external peer reviews.
Auditor selection must adhere to federal procurement requirements.
A separate supplementary schedule of revenues, expenditures and changes in fund balance for each City
of Foi�t Worth contract is no longer required. The Schedule of Expenditures of Federal Awards should list
City of Fort Worth 's contract numbers, the total expended for each individual federal program, and the
CFDA number (OMB A-133 § .310).
The independent auditor's report should include all of the relevant items listed on the "Audit Report
Checiclist." Additional guidance on the conduct and reporting of these audits is contained in the latest issuance
of the following publications:
Government Auditing Standards issued by the Comptroller General of the United States, 2003
OMB Circular A-133 as revised 6/30/97 and amended June 2003
OMB Circular A-133 Compliance Supplement
AICPA's Statement of Position 98-3, "Audits of States, Local Governments, and Not-for-Proiit Organizations
Receiving Federal Awards"
Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations
AICPA's Audit Rislc Alert "State and Locai Governmental Developments"
Gover�nment Auditzng Standards by the Texas Depar�tment of Housing and Communiry Affair�s for� Pr•opef•tzes
Receiving Low Income Housing Tax Cf�edits
All organizations that receive a City of Fort Worth award must submit the provided Audit Certification Form
which certifies whether you are subject to a single/program audit. Organizations receiving federal awards
from the City of Fort Woi�th who are not required to have an audit shall cei-tify in writing to the agency.
The organization's Chief Executive Officer or Chief Financial Officer shall malce the certification within
60 days of the end of the organization's fiscal year in the year that the project was completed.
The following items should be submitted to the City of Fort Wo��th Housing and Economic Development
Department within the required timeframe:
Due 60 days after or�anization's fiscal year end in the year that the project was completed: (required for all
subrecipients)
Completed Audit Certiiication Form
CHDO Funds - Exhibits
Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit
ep riod•
Two copies of the entire audit report issued by the CPA
Two copies of any management letter issued by the CPA in conjlmction with the audit report
Two copies of management's comments on all iindings, recommendations, & questioned
costs contained in the audit report and management letter, including a detailed corrective
action plan
Failure to submit any of these items by the required due date may result in holds on current draw
requests, suspension of the organization's contract(s) and eligibility for future funding.
If the organization does not meet the requirements of having a single/program audit conducted, records
must still be kept available for review or audit by City of Fort Worth staff (OMB A-133 Subpart B Sec 200(d).
If additional information is needed concerning the audit requirements, please call (817) 392-6141.
CHDO Funds - Exhibits
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
SINGLE AUDIT REPORT CHECKLIST
The Department developed this checiclist to help organizations improve the quality and completeness of
audit reports.
General Purpose or Basic Financiai Statements of the Organization Opinion/Report on Organization's Financial
Statements in accordance with Government Audztzng Standar•ds
Notes to the General Purpose or Basic Financial Statements of the Organization
A Schedule of Expenditures of Federal Awards, including the Depa��tment's contract numbers, the total
expended for the federal program, and the CFDA number (OMB A-133 Subpart C Sec 310).
Opinion/Report on Schedule of Expenditures of Federal and State Awards
Report on Compliance and on Internals Control Over Financiai Reportin�Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standccrds. (OMB A-133 § 505 (b))
Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133. (OMB A-133 § 505 (c))
Schedule of Findin sg and Questioned Costs (OMB A-133 §. SOSd), including: Summary Schedule of Prior Audit
Findin�s reporting the status of all findings included in the prior audit's schedule of iindings and questioned
costs. (OMB A-133 Sec. 315 (a) and (b))
Corrective Action Plan including (OMB A-133 Sec. 315 (c)) name of person responsible for the corrective
action, corrective action planned, anticipated completion date, and explanation and reason if auditee
does not agree with iindings or believes correction is not required.
All reports are signed and dated by the auditor
Two copies of the audit repo��ts are submitted
Two copies of the management letter, if issued in conjunction with the audit report. Two copies of
comments by management concerning all findings and recommendations included in
management letter, including a corrective action plan.
CHDO Funds - Exhibits
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
Audit Certification Form
Subrecipient: _Tarrant County Housing Partnership, Inc. Fiscal Year Ending: _9_/30 /13
Month Day Year
� We have exceeded the federal expenditure threshold of $500,000. We will have our Single Audit or
Program Specific Audit completed and will submit the audit report within nine (9) months after the end of the
audited fiscal year.
❑ We did not exceed the $500,000 federal expendittu•e threshold required for a Single Audit or a Program
Specific Audit to be performed this fiscal year. (Fill out schedz�le below)
Must be filled out if Single Audit or Program Audit is not re�uired.•
Federal Grantor
Total Federal Expenditur•es fof• this Fiscal Year
Donna VanNess
Printed
thor' re (M t be C , CEO or equivalent)
817-924-5091
Phone Number
5/10/13
Date
Failure to submit this or a similar statement or failure to submit a completed single audit pacicage as
described in the audit requirements by the required due date will result in suspension of funding and will affect
eligibility for future funding.
Sirbrnit this fof�rn to the City of Fort Wor�th Hoirsing and Econornic Developrnent Depar�trnent tivithin 60 days after the end of your
Fiscal year�
Federal Expenditure Disclosure
Federal Funds
Pass Through Program Name & Contract
Grantor CFDA Number Number
�
Expenditures
President
Title (Must be CFO, CEO or equivalent)
CHDO Funds - Exhibits
Exhibit E-1
•
CHDO: Tarrant County Housing Partnership, Inc.
Project Site Address: 1246 E. Jefferson Ave., Fort Worth, TX 76104
Period of Service:
CHDO Certification: I certify that the costs incurred are valid and
consistent with the terms and conditions of the contract between City and
CHDO By signing this invoice, I certify that to the best of my knowledge
and belief the data included in this report, Exhibit G, and in all backup
documentation is true and accurate. It is acknowledged that the provision
of false information could leave the certifying official subject to the
penalties of federal, state, and local law.
Signature and Date:
Name:
Title:
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EYHIBIT "F"
S'I'ANDARD OF BACKUP DOCUMENTATIOIY
' � � ` ', , � ,
��
Standard of Documentation for Reimbursement of Development Costs
Cost Type Documentation Standard
Acquisition of Vacant Lots • Notice to Seller (date must be on or before the date of options agreement
or sales contract and signed by the buyer and seller)
• Recorded Deed of Trust
• Purchase Agreement w/ Required NUD language
• Master Settlement Statement
• Appraisa) or other document used to determine purchase price
• Proof of Payment (bank statement/cancelled check)
Soft Costs (Architect, Engineer, • Invoice
Landscaping, Surveys, Appraisals, - Invoice should include:
Environmental, Legal Fees, Other date;
Consultants, Etc.) company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (ie. bank statement or cancelled check)
• if applicable, fully executed contract/service agreements and applicable
amendments
- Provide printout from www.sam.gov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
CHDO Operating/Project Delivery • Invoice
Expenses - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
� Timesheet(s) Signed by Employee and Supervisor
• Activity Log(s) Signed by Employee and Supervisor
• Pay Period Dates Should be Reflected
• If paying for rent or contract services, copy of executed agreements
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
Housing and Economic Development
FINAL as of 4/24/2013 Page 1
� ,� , ' � �
�
Standard of Documentation for Reimbursement of Development Costs
Construction Costs (Contractors & • Invoice
Subcontractors) - invoice should inciude:
date;
company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
• Timesheet(s) Signed by Employee and Supervisor
- Activity Sheet(s) Signed by Employee and Supervisor
- Pay Period Dates Should be Reflected
• Copy of applicable inspection report(s) conducted by HED Inspector
� Copy of executed agreements
- Provide printout from www.sam.�ov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated,
• For retainage for the prime contractor, lien waivers for the prime and all
subcontractors.
Materials Purchased by Developer • Invoice
- Invoice should include:
date;
company's letterhead;
address where materials will be used;
description of service(s) and item(s);
cost by quantity; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
Developer Fee • Final Invoice Reflecting Total Development Cost
• Proof of payment for any other entity contributing to development costs.
• Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation required in contract for home/unit produced
(i.e. income docs for eligible homebuyer, sales contract between
developer/homebuyer, HAP Deed of Trust w/ required affordability period
language, etc)
Housing and Economic Development
FINAL as of 4/24/2013 Page 2
EYHIBIT "G"
24 CCI2 PART 92 SUBPART F- PROJECT RCQUII2ENIENTS
two-year match reduction period in accordance with the provisions of paragraph
(a)(3) of this section.
Reclt�etion of match for particrpating jurisclictions in disnster areas. If a participating
jurisdiction is (ocated in �n area in which a declaration of major disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, it may request
a reduction of its matching requirement. For a local participating jurisdiction, the HUD
�ield office may reduce the matching requirement specified in .} 92.218 by up to (00
percent for the tiscal year in which the declaration of major disaster is maeie and the
following tiscal year. For a State participating jurisdiction, the HUD Field oftice may
reduce the matching requirement specified in § 92.218, by up to l00 percent for the
fiscal year in which the declaration of major disaster is made and the following tiscal
year with respect to any F{ON1E funds expended in an area to which the dec(aration of a
major disaster applies. At its discretion and upon request of the participating jurisdiction,
the HUD Field OfFice may extend the reduction for an additional year.
SUBPART F — PROJECT REQUIRENIENTS
§ 92.250 Maximum Per-unit Subsidy Amount and Subsidy Layering
a. ��lnximum per-crnit subsidy nmoarnt. The total amount of HOME funds and ADD[ funds
that a participating jurisdiction may invest on a per-unit basis in affordable housing may
not e:cceed the per-unit do((ar limitations established under section 22l(d)(3)(ii) of the
National Housing Act (12 U.S.C. 1715 I(d)(3)(ii)) for elevator-type projects that apply to
the acea in which the housing is located. These limits are available from the Mu(tifamily
Division in the HUD Field Office. If the participating jurisdiction's per-unit subsidy
amount has already been increased to 2 l0% as permitted under section 221(d)(3)(ii) of
the Nationa( Housing Act, upon request to the Field Ofece, F{UD will allow the per-unit
subsidy amount to be increased on a program-wide basis to an amount, up to 240% of the
original per unit limits.
b. Subsicly layering. Before cornmitting funds to a project, the participating jucisdiction
must eva(uate the project in accordance with guidclines that it has adopted for this
purpose and will not invest any more FtOtiIE funds, in combination with other
governmental assistance, than is necessary to provide affordable housing.
§ 92.251 Property Standards
a.
Housing that is construeted ��r rehabilitated with HOME funds must meet all
applicable local codes, rehabilitation standards, ordinances, and -r_oning ordinances
at the time of project completion, except as provided in paragraph (b) ot'this
section. 'I�he participatinb jurisdiction must have written standards for rehabilitation
th�t ensure that f-fOME-assisted housing is decent, safe, und sanitaiy. fn the absence
of a local code for new construction or rehabilitation, F[0�1E-assisted new
construction or rehabilitation must meet, as applicable: one of three model cocles
(Uniform Builc�ing Cude ((CBO), National Building Code (BOCA), 5tandard
45
(Southcrn) E3uilding Code (SBCCI)); or the Council of American E3uilding Officials
(CAE30) one or two family code; or the Minimum Property Standards (MPS) in 24
CFR 200.925 or 200.926. To avoid duplicative inspections when FHA financing is
involved in a E[OME-assisted property, a participating jurisdiction may rely on a
�(inimum Property Standards (NiPS) inspection performed by a qualitied person.
Newly constructed housing must meet the current edition of the Model Energy Code
published by the Council of American E3uilding Officials.
2. nll other F{OME-assisted housing (e.g., acquisition) must meet all applicable State
and local housing quality standards and code requirements and if there are no such
standards or code requirements, the housing must meet the housing quality
standards in 24 CFR 982.�01.
The housing must meet the lccessibility requirements at 2� CFR part 8, which
implements Section 504 of the ftehabilitation Act oF 1973 (29 U.S.C. 794) and
covered multifamily dwellings, as detined at 24 CFR 100.201, must also meet the
design and construction requirements at 2� CFR 100.205, which implement the Fair
E[ousing Act (42 U.S.C. 3601-3619).
4. Construction of all rnanufactured housing must meet the M�inufactured Ftome
Construction and Safety Standards established in 24 CFR Part 3280. These
standards pre-empt State and local codes covering the same aspects of performance
Por such housing. Participating jurisdictions providing HOYtE assistance to install
manufactu�•ed housing units must comply with app(icable State and loca( laws or
codes. (n the absence of such laws or codes, the participating jurisdiction must
comply with the manttfacturer's written instructions for instal(ation of manufactured
housing units. i�[anufactured housing that is cehabilitated using HOME funds must
rneet the requirements set out in paragraph (a)( l) of this section.
b. "[�he following requirements apply to housing for homeownership that is to be
rehabilitated af'ter transfer of the ownership interest:
E3efore the transfer of the homeownership interest, the participating jurisdiction
tnust:
fnspect the housing for any defects that pose a danger to health; and
Notify the prospective purchaser of the work needed to cure the defects and the
tin�e by which defects must be cur•ed and applicab(e p►•operty standards met.
I�he housing must be free from all noted health and safety defects before uccupancy
ancl not later than E months after the h•ansFer.
fhc housing rnust meet the property stanclards in paragraph (a)( I) of this section riot
fater than 2 years atter transfer ot� the ownership interest.
��n o�vner of rental housing assistec! �vith [fOi�tE funds rr�ust maintain the housing in
compliance with all applic��ble State and local housing quality standards and code
reyuirements and if there are no such standards or code requirements, the housing must
iT�eet the housing quality standards in 24 C(� R 982.�01.
46
d. Alt housing occupied by tenants receiving HOME tenant-based rental assistance must
meet the housing qua(ity standards in 24 CFR 982.401.
§ 92.252 Qualification as Affordable Housing: Rental Housing
The E{ONtE-assisted units in a rental housing project must be occupied on(y by households
that are eligible as low-income famities and must rneet the following requirements to qualify
as affordable housing. The affordability requirements atso apply to the E{OME-assisted non-
owner-occttpied units in sing(e-family housing purchased with f-[ON1E funds in accordance
with § 92.254.
Rent limitatron. (-lUD provides the fotlowing ma;cimum �fOME rent limits. The
maximum HOME rents are the lesser of:
The fair macket rent for eYisting housing for comparable units in the area as
established by HUD under 24 CFR 888.11 l; or
A rent that does not exceed 30 percent of the adjusted income of a family whose
annual income equals 65 percent of the median income for the area, as determined
by HUD, with adjustments for number of bedrooms in the unit. The E[OME rent
limits provided by f-{UD will include average occupancy per unit and adjusted
income assumptions.
b. Additiona! Rent limitations. In rental projects with tive or more HOME-assisted rental
units, t�venty (20) percent of the HOME-assisted units must be occupied by very low-
income P�imilies and meet one of following rent requirements:
l. The rent does not exceed 30 percent of the annual income of a Farnily whose income
equals 50 percent of the median income for the area, as determined by HUD, with
adjustments for smallec and larger families. HUD provides the E[ONIE rent (imits
which include average occupancy per unit and adjusted income assumptions.
E-iowever, if the rent determined under this paragraph is higher than the applicable
rent under (a) of this section, then the maximum rent for units under this paragraph
is that calculated under paragraph (a).
2. 'I'he rent cloes not exceed 30 percent of the family's adjusted income. (F the unit
receives Federal or State project-based rental subsidy and the very low-income
family pays as a contribution toward rent not more than 30 percent of the family's
adjusted income, then the maximum rent (i.e,, tenant contribution plus project-
based rental subsidy) is the rent allowable under the Federal or State project-based
rental subsidy pro�ram.
lnitial rent schedule urrd utility �rllowrrnces. The participating jurisdiction must establish
rnasimum monthly allowances for utilities and services (excluding telephone). The
participatin�; jurisdiction must review and approve rents proposed by the owner for units
subject to the maximum rent limitations in paragraphs (a) or (b) of this section. For all
units subject ro the maximum rent limitations in paragraphs (a) or (b) oFthis section for
�vhich the tenant is paying utilities and services, the participating jurisdiction must ensure
47
that the rents do not exceed the maximum rent minus the monthly allowances for utilities
and services.
d. �Vondiscriminntivn against rental assistance stibsi�fy holders. The owner cannot refuse to
lease HONtE-assisted units to a certiticate or voucher holder under 24 CFR part 982—
Section 8 Tenant-Based Assistance: Unified Rule for'I'enant-Based Assistance under the
Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the
holder oFa comparable document evidencing participation in a HONiE tenant-based
rental assistance program because oF the status of the prospective tenant as a holder of
such certificate, voucher, or comparable HOME tenant-based assistance document.
Periods offif'forclability. The E[OME-assisted units must meet the affordability
requirements for not less th�n the applicab(e period specitied in the fo(lowing table,
beginning after project compietion. The affordability requirements apply without regard
to the term of any loan or mortgage or the transfer of ownership. They must be imposed
by deed restrictions, covenants running with the (and, or other mechanisms approved by
F{UD, e;ccept that the affocdability restrictions may terminate upon foreclosure or transfer
in lieu of foreclosure. The participating jurisdiction may use purchase options, rights of
tirst refusal or other preemptive rights to purchase the housing before foreclosure or deed
in lieu of Forec(osure to preserve affordability. The affordability restrictions shall be
revived according to the original terms if, during the original affordability period, the
owner of record before the foreclosure, or deed in lieu ot' foreclosure, or any entity that
includes the Former owner or those with whom the former owner has or had family or
business ties, obtains an ownership interest in the project or propecty.
Rental Housing Activity Minimum period of affordability in years
Rehabi(it�tion or acquisition oFeristin�; 5
housing per unit amount of F{OME funds:
Under $ l 5,000
$ l 5,000 to $�0,000 I 0
Over $d0,000 or rehabi(itation involving I 5
retinancing
New Construction or acquisition of newly 20
constructed housing
Subse�{uent rents �/uring the afforclnbiliry periocl.
�I�he maximurn F{OME re���t (imits are recalculated on a periodic basis after F{UD
deterrnines fair market rents and medi�n inco►nes. HUD then provides the new
maximum f IOi�tE rent limits to participating jurisdictions. Regardless of changes in
tair market rents and in mcdian income ovcr time, the HONtE rents f'or a project are
not required to be lower than the HOME rcnt limits for the project in effect at the
time ot�project commitment.
�18
2. The participating jurisdiction must provide project owners with inFormation on
updated HONtE rent limits so that rents may be adjusted (not to eYceed the
maximum HONtE rent limits in paragraph (t)(1) of this section) in accordance with
the written agreement between the participating jurisdiction and the owner. Owners
must annual(y provide the participating jurisdiction with information on rents and
occupancy of HOME-assisted units to demonstrate compliance with this section.
Any increase in rents for EiONtE-assisted units is subject to the provisions of
outst�nding leases, and in any event, the owner must provide tenants of those units
not less than 30 days prior written notice before implementing any increase in rents.
g. flc� usbnent of HO��lE rent limits for a partici�lar project.
Changes in fair market rents and in median income over time should be sufficient to
maintain the financial viability of a project within the EiONtE rent limits in this
section.
HUD may adjust the �{OME rent limits for � project, on(y if HUD Finds that an
�djustment is necessacy to support the continued tinancia) viability of the project
and only by an amount that E[UD determines is necessary to m�intain continued
tinancial viability of the project. FIUD expects that this authority will be used
sparingly.
h. Tenant irrcome. The income of each tenant must be determined initially in accordlnce
with § 92.203(a)(I)(i). [n addition, each year during the period of affordability the
project owner must re-examine each tenant's annual income in accordance with one of
the options in § 92.203 se(ected by the participating jurisdiction. An owner of a
multiFamily project with 1n affordability period of l0 years or more who re-e:camines
tenant's annual income through a statement and certitication in accordance with
§ 92.203(a)(t)(ii), must e�camine the income of each tenant, in accordance with
§ 92.203(a)( l)(i), every sixth year of the afPordability period. Otherwise, an owner who
accepts the tenant's statement and certification in �ccordance with § 92.203(a)(()(ii) is
not required to examine the income of tenants in multifamily or single-family projects
unless there is evidence that the tenant's written statement failed to completely anci
accurately state information about the Family's size or income.
Over-income tenants.
ttOME-assisted units continue to qualify as affordable housing despite a temporary
noncompliance caused by increases in the incomes of existing tenants if actions
satisfactory to [-{UD are being taken to ensure that all vacancies are tilled in
accordar�ce with thi� section until the noncompliance is corrected.
2. 'I'enants who no longer qualiFy as low-income families must pay as rent the (esser of
the amount payable by the tenant un�ier State or (ocal law or 30 percent of the
t'amily's adjusted income, excepi that tenants of EIOME-assisted units that have
been allocated low-income housing tax credits by a housing credit agency pursuant
to section d2 of the Internal Revenue Code of ( 986 (26 U.S.C. 42) must pay rent
�;overned by section d2. [n addition, in projects in which the HOME units are
clesi�nated as tloating pursuanC to paragr�ph (j), tenants who no longer qualify as
��7
(ow-income are not required to pay as rent an amount that exceeds the market rent
For comparable, unassisted units in the neighborhood.
Fixed cxnd floating FIO�tiIE units. [n a project containing EtOME-assisted and other units,
the participating jurisdiction may designate Eixed or tloating HOME units. This
�lesignation must be made at the time of project commitment. Fired units remain the
same throughout the period of affordability. Floating units are changed to maintain
conformity with the requirements of this section during the period of affordability so that
the totat number of housing units meeting the requirements of this section rernains the
same, and each substituted unit is comparable in terms of size, features, and number of
bedrooms to the originally designated HOI�fE-assisted unit.
§ 92.253 Tenant and Participant Protections
l,ease. The lease between a tenant and an owner of rental housing assisted with HOME
funds must be Por not less than one year, unless by tnutual agreement between the tenlnt
and the o�vner.
b. Prohibited lense terms. The lease may not contain any of the Following provisions:
Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of the owner in a lawsuit brought in connection with the lease;
2. Trcatment of p��operty. Agreement by the tenant that the owner may take, hold, or
sell persona) property of househo(d members without notice to the tenant and a
court decision on the rights af the parties. "['his prohibition, however, does not �pply
to an agreement by the tenant concerning disposition of personal property remaining
in the housing unit af'ter the tenant has moved out of the iu�it. 'l�he owner may
dispose of this personal property in accordance with State law;
FXCZ(,sing o�vner f'rom responsibility. Agreement by the tenant not to hold the owner
or the owner's agents legally responsible for any action or failure ta act, whether
intentional or negligent;
4. Wcriver of'notice. ngreement of the tenant that the owner may institute a lawsuit
without notice to the tenant;
GVctiver of�lexul proceedings. Agreement by the tenant that the owner may evict the
tcnant or household members without instituting a civil court proceeding in which
the tenant has the opportunity to present a clefcnse, or before a court decision on the
rigl�ts of the parties;
6. Waiver o/�a j�rry lrral. �\greement by the tenant to waive any ri�ht to a trial by juty;
7. 6Vnivei� of ric,�ht to appeu! court clecisron. f��reement by the tenant to waive the
tenant's right to appeal, or to otherwise challenge in coui�t, a court decision in
connection witl�i the lease; and
Tertnr�t cHar•geuMle tivrth cost nj�legul nc•tiorts j�e,�,>rrrclless o/'vrrtcojrte. i\gceemeitt by
thc tenant to pay attorney's fees e�r other (ega) costs evcn if the tenant �vins in a
50
�,.
court proceeding by the owner against the tenant. The tenant, Ilowever, may be
obligated to pay costs if the tenant loses.
c. Termination of tennncy. An owner may not terminate the tenancy or refiise to renew the
lease of a tenant of rental housing assisted with HON1E funds except for serious or
repeated vialation of the terms and conditions of the lease; for vio(ation of applicable
Federal, State, or local law; For comp(etion of the tenancy period for transitional housing;
or for other good cause. "Co terminate or refiise to renew tenancy, the owner must serve
written notice upon the tenant specifying the grounds for the action at least 30 days
before the terminllion of tenancy.
d. Tenant selection. An owner of cental housing assisted with HONiE f'unds must �tdopt
written tenant selection policies and criteria that:
l. Are consistent with the purpose of providing housing for very low-income and low-
income fami(ies;
2. Are reasonably related to program eligibility and the applicants' ability to perform
the obligations of the lease;
Provide for the selection of tenants from a w�•itten waiting list in the chronological
order of their �ipplication, insofar as is practicable; and
�. Give prompt written notitication to any rejected applicant ot the grounds for �iny
rejection.
§ 92.254 Qualification as Affordable Housing: Homeownership
a. f�cqc�isition with or without rehabilitntion. f-tousing that is for acquisition by a family
must meet the aFfordability requirements of this paragraph (a).
"I'he housing must be single-family housing.
'Che housing must be modest housing as follows:
(n the case of acquisition of newly constructed housing or standard housing,
the housing has a purchase price for the type of single family housing that does
not exceed 95 percent of the mcdian purchase price for the area, as described
in paragraph (a)(2)(iii) of this section.
(n the case of acquisition with rehabilitation, the housing has an estimated
value atter rehabilitation th�t does nc�t exceed 95 percent of the median
purchase price for the area, described in paragraph (a)(2)(iii) of this section.
iii. (f a participating jurisdiction intends to use HOME funds tor homebuyer
assistance or for rehabilitation of owner-occupied single-tamily properties, the
participating jurisdiction may use the Single Farnily Mortgage Limits under
Section 203(b) of the Nationa( E{ousing Act (12 U.S.C. 1709(b)) (which may
be obtained from the k{UD Field Office) or it may determine 95 �ercent of the
rnedian area purchase price for single family huusing in the jurisdiction, as
51
follows. 'Che participating jurisdiction must set forth the price for different
types of single family housing for the jurisdiction. The 95 percent of inedian
area purchase price must be established in accordance with a market analysis
�vhich ensured that a sufEicient number of recent housing sales are included in
the survey. Sa(es must cover the requisite number of months based on vo(ume:
For S00 or more sales per month, a one-month reporting period; for 250
through �99 sales per month, a t�vo-month reporting period; for less than 250
sales per month, at least a three-month reporting period. The data must be
listed in ascen�iing order of sa(es price. "I'he address of the (isted properties
must inciude the location within the participating jurisdiction. Lot, square and
subdivision data may be substihited for the street address. 'I'he housing sales
data must retlect all, or nearly all, of the one-family house sales in the entire
participating jurisdiction. "I'o determine the median, take the middle sale on the
list if an odd number of sales and if an even number, take the higher of the
micldle numbers and consider it the median. Atter identifying the median sales
price, the amount should be multiplied by .95 to cletermine the 95 percent of
the median area purchase price, This inform�►tion must be submitted to the
HUD Field Ot'tice for review.
The housing must be acquired by a homebuyer whose tamily qullities as a low-
income tamily and the housing must be the principal residence of the family
throughout the perioci ciescribed in paragraph (a)(4) of this section.
4. Periocl.s ofnfJordubility. '['he HOME-assisted housing must meet the affordability
requirements for not less than the app(icable period speciEied in the following table,
beginning after project completion. "I'he per unit amount of HOME tunds �nd the
affordability period thlt they trigger ace described more fully in par�igraphs (a)(5)(i)
(resale) and (ii) (recapture) of this section.
Nomeownership assistance HOME amount Minimum period of affordability in years
per-unit
Uncler � l 5,000 5
$ I 5,000 to `��10,000 I 0
Over $�40,000 l 5
Resule urul recc�pture. "I'o cnsure affordability, the participatingjin•isc�iction rnust
impose cither resale or recapture requi►•e�t�ents, at its opti��n. �fhe participating
jurisdiction must establish the resale or recapture requirements that comply �vith the
stanclards of this section and set torth the reyuirements in its consolicfated plan.
I�IUD must cletermine that they are appropriate.
Res��le. Resale requirements ►r�ust ensure, if the housing does not continue to
be the principal residence of the tamily for the duration of the period uf
aFf��rdability, that the housing is made avail<�ble for subsequent p��rcllase only
to a buycr �vhose t��rnily yualitics as a low-income farnily and will use the
52
property �s its principal resicience. The resale requirement must also ensure
that the price at resale provides the original HOME-assisted owner a fair return
on investment (including the homeowner's investment and any capital
improvement) and ensure that the housing will remain af�ordable to a
reasonable range of !ow-income homebuyers. The period of affordability is
based on the totai amount of HONtE funds invested in the housing.
A. Except as provided in paragraph (a)(5)(i)(B) of this section, deed
restrictions, covenants running with the land, or other similar mechanisms
must be used as the mechanism to impose the resate requirements. "I'he
affordabi(ity restrictions ►nay terminate upon occurrence of any of the
following termination events: forec(osure, transfer in (ieu of foreclosure
or assignment of an FHA insured mo��tgage to HUD. The participating
jurisdiction may use purchase options, rights of tirst refi�sal or other
preemptive rights to purchase the housing before foreclosure to preserve
afford�bility. The affordability restrictions shall be cevived according to
the original terms if, during the origina( affordability period, the owner of
record before the termination event, obtains an ownership interest in the
housing.
B. Certain housing may be presumed to meet the resale restrictions (i.e., the
housing will be available and affordable to �� reasonable range of low-
income homebuyers; a low-income homebuyer �vill occupy the housing as
the family's principal residence; and the original owner wil( be aE'forded a
Fair return on investment) during the period of affordabi(ity without the
imposition of enforcement mechanisms by the participating jurisdiction.
"I'he presumption must be based upon a market analysis of the
neighborhovd in which the housing is located. The market lnalysis must
include an evaluation of the location and charlcteristics of the housing
and residents in the neighborhood (e.g., sale prices, age and amenities of
the housing stock, incomes of residents, percentage of owner-occupants)
in celation to housing and incornes in the housing market area. An
analysis of the current and projected incomes ot nei�hbochood residents
f'or an average period of affordability For homebuyers in the neighborhood
must support the conclusion that a reasonable range of low-income
families �vil( continue to qualify for mortgage tinancing. For example, an
analysis shows that the housing is modestly nriced within the housing
market area and that families with incomes of f5% to 80% oFarea median
can afford monthly paymcnts under average FHA terms without other
government assistznce and housing will remain aff'ordable at Icast during
the next tive to sc:ven yeacs compared to other housing in the market area;
the size ar�d amenities ofthe housing are modest and substantia(
rehabilitation will not si�niticantly increase the market value; t��e
neighborhood has housing that is not current(y owned by the occupants,
but the participating jurisdiction is encouraging homeownership in the
neighborhood by providing homeownership assistance and by making
improvements to the streets, sidewalks, and other public facilities and
services. (f a participatingjuriscliction in preparing a neighborhood
revitalization strategy under § 9(.215(e)(2) of its consolidated plan or
Empowerrnent _7.one or l:nterprise Community application under 24 CP[Z
53
part 597 has incorporated the type of market data described above, that
submission may serve as the required analysis under this section. If the
participating jurisdiction continues to provide homeownecship assistance
for housing in the neighborhood, it must periodically update the market
analysis to verify the original presumption of continued affordability.
ii. Recnpture. [2ecapture provisions must ensure that the participating jurisdiction
recoups all or a portion of the HON1E assistance to the homebuyers, if the
housing cioes not continue to be the principal residence of the family for the
clttration of the period of affordability. The participating jurisdiction may
structure its recapture provisions based on its progrlm design and market
conditions. The period of affordability is based upon the total amount of
E-{ON1E funds subject to recapture described in paragrnph (a)(5)(ii)(A)(5) of
this section.
A. The following options for recapture requirements are acceptable to HUD.
fl'he participating jurisdiction may adopt, modify or develop its own
reclpture requirements for HUD approvaL [n establishing its recapture
requirements, the participating jurisdiction is subject to the limitation that
when the recapture requirement is triggered by a sale (voluntary or
involuntary) of the housing unit, and there are no net proceeds or the net
proceeds are insuFficient to repay the F{ONtE investment due, the
participating jurisdiction can only reclpture the net proceecis, if any. The
net proceeds are the sales price minus superior loan repayment (other than
E-fOME funcls) and any closing costs.
Recnpture errtire amotrnt. The pa��ticipating jurisdiction may
recapture the entire amount of the F{OtitE investment fi�om the
homeowner.
2. IZedtrction dtu�ing �rffordubility period. "['he participating jurisdiction
may reduce the HOME investment amount to be recaptured on a
prorata basis foc the time the homeowner has owned and occupied
the housing measured against the requirecl aftordability period.
3. Shared rret proceeds. If the net proceeds are not sufficient to
recapture the tull HOME investment (or a reduced amount as
provided for in paragraph (a)(S)(ii)(A)(2) of this s�ction) plus enable
the homeowner to recover the amount of the homeowner's
downpayment and any capital improvement investment made by the
cnvner since purchase, the participating jurisdiction may share the net
procceds. "I'he net procceds are the sales price minus loan repayment
(other than HOME funds) and closing costs. "I'he net proceeds may
be �iivided proportionally as set forth in the t��tlowing rnathematical
formulas:
54
HOME InvestmendHOME Investment HOME amvunt to be
+ homeowner investment x Net Proceeds = recaptured
0 0 0 � U 0 � U o fD � U U m � � UIHOME investment x Net Proceeds = amount to homeowner
+ homeowner investment
�. Owner investment returnedJirst. The participating jurisdiction may
permit the homebuyer to recover the homebuyer's entire investment
(downpayment and capital improvements made by the owner since
purchase) before recapturing the HOME investment.
Amount subject to recapture. The f-fOME investment that is subject
to recapture is based on the amount of E[ON1E assistance that enabled
the homebuyer to buy the dwelling unit. This includes any HOME
assistance that reduced the purchase price from fair market value to
an aE'fordable price, but exchides the amount between the cost of
prodttcing the unit and the market value of the property (i,e., the
development subsidy). The recaptured funds must be used to carry
out HONIE-eligible activities in accordance with the requirements of
this part. [f the HOME assistance is only used for the development
subsidy and therefore not subject to recapture, the resale option must
be used.
6. Special considerntions for single family properties with more than
one unit. [f the F[ONtE funds are only used to assist a low-income
homebuyer to acquire one unit in single-family housing containing
more than one unit and the assisted unit r,vill be the principal
residence of the homebuyer, the aFfordability requirements of this
section �pply only to the assisted unit. [f HOME funds are also used
to assist tlle low-income homebuyer to acquire one or more of the
rental units in the single-family housing, the affo►•dability
requirements of � 92.252 apply to assisted rental units, except that
the participating jurisdiction may impose resa(e or recapture
restrictions on all assisted units (awncr-occupied and rental units) in
the single family housing. If ►•esale restrictions are used, the
affordability requirements on all assisted units continue for the
period of at�Fordability. [f recapture restrictions are used, the
affordability requirements on the assisted rental units may be
tcrminated, at the discretion of the participating jurisdiction, upon
recapture of the HOME investment. (If f(OME funds are used to
assist only the renta( units in such a property then the reqt►irements of
� 92.252 would apply and the owner-occupied unit �vould not be
subject to the income targeti►�g or affordability provisions of
� 92.254.)
55
Lease-purchnse. HOME funds may be used to assist homebuyers
through (ease-purchase programs for existing housing and for
housing to be constructed. The housing must be purchased by a
homebuyer within 36 months of signing the lease-purchase
�igreement. The homebuyer must qualify as a low-income family at
the time the lease-purchase agreement is signed. If HOME funds are
used to acquire housing that will be resold to a homebuyer through a
(ease-purchase program, the [-(ONtE affordability requirements for
rental housing in § 92.252 shall apply if the housing is not
transferred to a homebuyer �vithin forty-two months after project
completion.
8. Contract to ptirchase. [f E-tON1E funds are used to assist a homebuyer
who has entered into a contract to purchase housing to be
constructed, the homebuyer must qualify as a low-income family at
the time the contract is si�;ned.
9. Preservingnff'ordability.
(i) Nohvithstanding § 92.214 (a)(6), to preserve the affordability of
housing that was previously assisted with FiOME funds and subject
to the requirements of § 92.254(a), a participating jurisdiction may
use additional HOME tunds to acquire the housing through a
p�irchase option, right of first refusal, or other preemptive right before
foreclosure, or to acquire the housing at the foreclosure sale, to
undertake any necessary eehabilitation, and to provide assistance to
another homebuyer. "Che housing must be sold to a new eligible
homebuyer in accordance with the requirements of � 92.254(a).
Additional E{OME funds may not be used if the mortgage in detault
was funded with f-[ONIE funds,
(ii) The tofal amount of original and additional HOME assistance
may not exceed the maximum per-unit subsidy amount established
under � 92.250. Alternatively to charging the cost to the F{OME
program under $ 92.206, the participating jurisdiction may charge the
cost to the [{OIvtE �rogram under � 92.207, as a reasonable
administrative cost of its F[OME program, so that the additional
F{OME funds for the housing are not subject to the maximum per-unit
subsicly amount.
b. Kehnhilit�rtion not rnvolvirig ncquisitron. F{ousing that is currently owned by a tarnily
yualities as aftordable housing on(y if:
�f�he estim�ited value of the property, after rehabilitation, �loes not exceed 95 percent
of the median purchase price tor the ��rea, described in paragraph (a)(2)(iii) ot�this
section; and
�I�he housing is the principal residence of an owner 4vhuse family qualities as a low-
i�ico�Y�e t�amily at the time HOME funds are committed to the housing.
56
c. Owrrershrp intere,rt. The ownership in the housing assisted under this section must meet
the definition of "homeownership" in � 92.2.
d. N61V CO!?Sh�uction without acquisitivn. Newly constructed housing that is built on
property currently owned by a fami(y which will occupy the housing upon completion,
qualifies as affordab(e housing if it meets the requirements under paragraph (a) of this
section.
§ 92.255 Converting Renta) Units to Homeownership Units for Existing Tenants
`l�he participating jurisdiction may permit the owner of �{ONtE-assisted rental units to convert
the rental units to homeownership units by selling, donating, or otherwise conveying the units
to the existing tenants to enable the tenants to become homeowners in accordance with the
requirements of § 92.254. [f no additional f-[ONtE fiinds are used to enable the tenants to
become ho►neowners, the homeownership units are subject to a minimum period of
affordability equal to the remaining affordable period if the units continued as rental units. If
additional HON1E fi�nds are used to directly assist the tenlnts to become homeo�vners, the
minimum period of affordability is the affordability period under � 92.254(a)(4), based on the
amount of direct homeownership assistance provided.
§ 92.256 Reserved
§ 92,257 Religious Organizations
a. Organizations that are religious or taith-based are eligible, on the same basis as any other
organizatian, to participate in the Ef0[VtE program. Neither the fed�;ral government nor a
state or local government receiving furlds under f{ONtE programs shall discriminate
against an organization on the basis of the org�nization's re(igious character or af'tili<ition.
b. Organizations that are directly funded uncler the HOME program may not engage in
inherently religious activities, such as worship, religious instruction, or pcoselytization,
as part of the assistance funded under this part. [f an organization conducts such
activities, the activities must be offered separately, in time or location, from the
assistance funded under this part, and participation must be volw�tary for the
beneFiciaries of the �issistance provided.
A religious organization that participates in the E{OME program will retain its
independence from federa(, state, and local governments, and may continue to carry out
its mission, including the definition, practice, and expression of its religious beliefs,
provided that it does not use direct HOt�tE funds to support any inherently r•eligious
�►ctivities, such as �vorsfiip, religious instruction, or proselytiration. Among other things,
f<lith-based organizatioiis may use space in their facilities, without removing religious
art, icons, scriptures, or other religious symbols. ln addition, a( fOME-funded religious
organization retains its authority over its internal governance, and it may retain rcligious
tcrms in its or�;anization's name, select its board mernbers on a religious basis, and
inc(ude religious references in its organization's mission state►nents and ather �overning
clocuments.
57
d. An organization that participates in the E-{OME progr�m shall not, in providing program
assistance, discriminate against a program beneticiary or prospective program
beneficiary on the basis of religion or religious belief.
e. FIOME funds may not be used for the acquisition, construction, or rehabilitation of
structures to the extent that those structures are used for inherently re(igious activities.
HONtE funds may be used For the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used for conducting eligible activities under
this p�irt. Where a structure is used for both eligible and inherently religious activities,
E[OME funds may not e:cceed the cost of those portions of the acquisition, construction,
or rehabilitation that are attributable to eligible activities in accordance with the cost
accounting requirements app(icable to HONtE funds in this part. Sanctu�iries, chapels, or
other rooms that a HONIE-funcled religious congregation uses as its principal place of
worship, however, are ineligible for HOME-funded improvements. Disposition of real
property after the term of the grant, or any change in use of the property during the term
of the grant, is subject to government-wide regul�tions governing real property
disposition (see 24 CFR parts 84 and 35).
[f a state or (ocal government voluntarily contributes its own fiinds to supplement
federally f'unded activities, the state or local government has the option to segregate the
federal funds or commingle them. F{owever, if the funds are commingled, this section
applies to al( of the commingled tiinds.
§ 92.258 Elder Cottage Housing Opportunity (ECHO) Units
a. Ceneral. HOME ftinds may be used for the initial purchase and initial p(acement costs of
e(der cottage housing opporhinity (ECHO) units that meet the requirements of this
section, and that are small, Fcee-standing, barrier-free, energy-efficient, removable, and
designed to be installed adjacent to existing single-family dwe(lings.
b. Eligihle owners. 'I'he owner of a FtOME-assisted ECHO unit may be:
l. "Che owner-occupant of the single-family host property on which the ECF[O unit
will be located;
2. A participating jurisdiction; or
A non-protit organiration.
L'li�iblc� te�rnnts. During the aFfordability period, the tenant of a HOME-assisted ECH4
unit must be an elderly or disabled family as detined in 2� CFR 5.403 and must also be a
low-income family.
d. ;1�plic�ible reyuirernents. "C�f�e requirements of � 92.252 of tflis part apply to E�OME-
assisted ECE{� units, with the tollowing modifications:
Only une ECEfO unit may be provided per host property.
['he ECt{O unit owner may choose whether or not to chargc the tenant of thc ECf {O
unit rent, but if a rent is ch�rged, it must meet the requirements of � 92.252.
58
EYHIBIT "H"
UAVI5 I3ACON REQUIRENIENTS
Federal Labor Standards Provistons u.s. Department of Housing
and Urban Development
Office of Labor Relations
AppliCabllity
The Project or Program to which lhe conslruction work
covered by Ihia contracl pertafns is being assisted by Ihe
United Slates of America and the foliowing Federal Labor
Standards Provisions are (nciuded in this Contract
pursuant lo the provisions appllcable to such Federal
asslslance.
A. 1. (1) Mtnlmum Wegoe. All IaDorers and mechanics
employed or working upon the site o( the work, will be pafd
unconditionally and not less olten than once a week, and
withoul subsequent deduction or rebate on any account
(oxcepl such payroll deductlons as are permitted by
regulatlons Isaued by lhe Secretary of Labor under the
Copeland Act (29 CFR Par► �), lhe lull amount of wages
and bona (ide tringQ beneflts (or cash equivalents therao�)
due at lime o( payment comp�ted at rales not less than
those contained in the wage determination of the
Secretary of Labor which is altached herelo and made a
part hereot, regardless of any coniraclual relationshlp
which may be alleged lo ex(st befween the contractor and
such laborers and mechanics. Contributlons made or
costs reasonably anlicipalad for bona fide fringe benefils
under SecUon I(b)(2) ol the Davis-Bacon Act on behaif of
iaborers or mechanics are considered wages pald to such
laborers or machanics, subject to the provisiona of 29 CFR
5 5(a)(t)(iv); also, regular contributions made or cosls
incurred lor more Ihan a weekly period (but not less o(ten
than quarterly) under plans, funds, or programs, which
covor the particular weekiy period, are deemed to be
constructively made or incurred during such weekly period.
Such laborers and mechanics shall be paid tne appropriate
wage rale and Iringe benefils on ihe wage determination
for the classi(IcaUon ot work actually perfoimed, without
regard to skill, excepl as provided in 29 CFR 5.5(a)(A).
Laborers or mechanics per(orming work in more than one
classiticalion may be compensated at the rate specified br
each classiflcation Ior Ihe time aclualiy worked therein:
Provided, That the employer's payrol� records accuralely
set lorlh the lime spenl in each clasaiticalion in which
work is performed. The wage delermination (including any
additional classi(icetion and wage rates conformed under
29 CFR 5.5(a)(1)(il) and the Davis•Bacon posler (WH-
1321) shall be posted at all times by t�e contractor and its
subconlractors at lhe sile of ihe work in a promfnent and
accessible, place where it can be oasily sesn by the
workers
(II) (�) Any class of laborers or mechanics whlCh is not
listed in tYio wage determination and which is to be
empioyed under the conlracl shali be classi(led in
conformance with !he wage determinaUon. HUD shail
approve an additiona) classlficalion and wage rale and
tringQ benefits Ihere(or only when Ihe following criteria
have been met
(1) The work lo be performed by the clessificatlon
requested le nol pertormed by a classlficatlon In Ihe wage
determination; and
(2) The classlflcalion is utilized In Ihe area by the
construclfon industry; and
(J) The proposed wage rate, including any bona fide
frtnge benefita, bears a reasonable relationahip to the
wage ralea contained in the wage determination.
(b) If the contractor and the laborera and mechanics tp be
ompioyed in the classificalion (ii known), or their
rapresentatives, and HUO or Its designee agree on the
classiftcalion and wage rale (inciuding lhe amount
designated for tringe benefits where appropriate), e report
of the actfon taken shall be sent by HUD or its deaignee to
lhe Adminisiralor of the Wage and Hour Dfvislon,
Employmenf Standards Administratlon, U.S. Deparlment o/
Labor, WasMngton, D.C. 20210. 7he Adminislralor, or an
authorized represenlative, wlll approve, modi(y, or
disapprove eve�y additional classi►ication actfon wflhfn 30
days of receipt and so advise HUO or its designee or w�il
nolify HUO or its desfgnee within the �0-day period lhaf
additlonal time is necessary. (Approved by lhe O(fice ol
Management and Budget under OMB control number 1215-
0140.)
(c) In the evenl lhe contractor, the laborers or mechanics
to be employed in lhe classilfcat(on or Iheir
representatives, and HUD or Its designee do not agree on
the proposed classitication and wage rate (including ttie
amount dosignaled tor fringe benelits, where approprlate),
HUD or Ils designee ahail reter the quesUons, includfng
the views ol ali fnleresled parties and the recommendatfon
ol HUD or its designee, to the Adminislrator for
determination. The Administrator, or an authorized
reprQsentaliva, will issue a delerminAtion within 30 days ot
receipt and so advise HUO or fts deafgnee or wlll notify
HUD or ifs desiflnQe within the 30-day period that
addlUonal Ume is necessary. (Approved by the Olilce of
Management and Budget undet OMB Controi Number
1215-0140.)
(d) The wage rate (Inciuding fringe benefits where
appropriate) delermined pursuant lo subparagraphs
(i)(if)(b) or (c) of this paragraph, shall ba pald to all
workers per(orming work in the classification under this
conlract from the lirst day on which work is performed In
the classification.
(I11) Whenever the minimum wage rate prescribed in Ihe
c��ntract for a class ot laborers or meehanics inciudes a
frmge bene(it which is not expressed as an hourly rala, lhe
conlractor shall elther pay !he benefit as staled in lhe
wage determinalion or shall pay another bona fide fringe
benefil or an hourly cash equivalent thereof.
(iv) It lhe contiactor does nol make paymanta to a truslae
or other third person, the coniraclor may consider as pari
form HUD-d010 (OSl2009)
Previous ediUons are obsolele Page 1 of 5 rel_ Handbook 13�a4.1
of the wagea of any iaborer or mechanic lhe amount of any commun{ceted In writing to tha laborera or mechanics
costs reanonabiy anticipated In providfng bona fide Iringe affacled, and records which show the cosls antlCipated Of
banetits under a plan or program, Provided, That the the actual coat incur�ed in providing such benelits.
Secretary ol Labor ha� lound, upon lhe wNtten requeai of Contractors empioylnq apprentices ot trafnees undet
the contractor, that Ihe applicable sfandarda o( Ihe Davla- approved progrems shall maintain written evidence ot the
Bacon Act have been met. The Secretary of Labo� may regiatratlo� ot apprenticeahip programa and certHicetlon of
requlre ihe co�trocto� to set aside in a separate account trainee programs, tha regiatratlon o( ths apprenUcea and
assets for lhe meeting of obitgationa under the plan or trainees, a�d the rattos and waga rate• preacrfbed in the
program. (Approved by the Of11ce o( Management and appUceble programe. (Approved by the Otfice ot
Budget under OMB Contro! Number 1215•OtAO.) Management and Budgel under OMB Control Numbera
2. Withholdlnq. NUD ot ita deaignee shall upon ita own 1215-0140 and 1215-0017.)
action or upon written �equeat of an auihorixed (II) �a) 7he cont�actor ahall aubmlt weekly for each week
repreaentative of the Deperlment of Labor wlthhold or in whlch any contracl work is pe�(ormed a copy ot all
cause to be withheld irom the contracto� undet thia payrolis to HUD or ita deaignee if the agency Is a party to
coMracl or any other Federal conlract with the same prime the contract, but It the agency (s not such a party, lhe
contractor, or any other Federally-assisled contract contracior will submit the payrolla to the applicant
subJect to Davls•Bacon prevailing wage requlremente, sponsor, or owner, ae Ihe cese may be, lor transmisaton to
which is held by the same prime contracto► so much ot the NUQ or its designee. The payroll• submitted shall sei out
eccrued peyments or advancea as may be conaldered accuralely and compietely all ot fha intormalfon requfred
neces�ary to pay laborera and mecha�fca, including to be mal�talned under 29 CFR 5,5(a)(3)(i) except lhat tull
apprenficee, lrainees and helpere, employad by the socfa! aecurity numbers and home addressea ahali not be
contractor or any subcontractor lhe full amount oi wagee Included on weekly transmitlals, Instead the payrolis shail
requfred by the conlract in the evenl of failu�b to pay any only need to Include an Individually Ideniifying number for
�aborer or mechanic, inctudl�g any apprentice, tralnee ot each employee (e.g., the last (our dlgits o( the amployea'a
heiper, employed or working on Ihe site ot the work, ail or soafal security number). The requlred weekly payroli
part of the wagea required by the contract. HUO or ils information may be submitted in any Iorm desirad.
designee may, aller written noUce to the conlractor, Optionat Form WH-347 la availeble tor Ihia purpose trom
sponsor, applicant, or ownar, tuke such action aa may be the Wage and Nour Oiviaion Web site at
necessary to cause lhe suspenslon ot any turther http://�yw.dol.qov/esa/whd/lorms/wh347Jnstr.htm or Ils
payment, advance, or guarantee ol funds untll such successor site, The prlme contractor Ia reaponalble for
violalione have ceaaed. HUD or it� deslgnee mey, atter lha submisaio� ol coplea of payrotis by all subcontractors.
wrflten notice to the coniraclor, dlsburse such amounte Cont�actora and subcontraclora shali malntafn the fuil
wlthheld lor and on account of the contractor or social security number and current addreas o1 oech
subcontrector lo ihe reapective empioyees lo whom they covered worker, and shall provide them upon request to
are due. The Complroller General shall make such HUD or fts designea It the agenCy la a parly lo lhe
dfsburaementa in the case ot dlrect Dovis-Bacon Act contract, but it ihe agancy Is not such a perty, the
co�tracta. contractor wili submlt the payrolis to Ihe eppliCant
3. (I) Peyroils end baslc records. Payrolls and basic sponsor, or owne�, as the case may be, lor transmlaslon to
recorda reletl�g thereto ahail be maintained by ihe HUD or Its des(gnee, Ihe contractor, or the Wage and Hour
conlrector duNng lhe course of lhe work preserved tor a Divislon o/ the Department ot labor for purposes ot an
pertod of inree yeara therealter (or ali laboresrs and InvBatigalio� or eudit ol compllance with prevailinfl wage
mechanics working at Ihe sile n( Ihe work. Such recorda �equirementa. It is not a vloleiion of thie subparagraph for
shali conlain the name, addreas. and soclal securily a prime contraclor to requfre a subcontractor to provide
number ot oach such worker, his or her correct addreases and social securiiy numbers to the prime
clasaificalion, hourly rates of wages paid (fncluding ratea contractor for Ita own reCorde, without weekly submisalon
of contributions or cosis anticlpatQd for bona tide (ringe to HUO or ita designee. (Approved by the Oifice ot
beneflla or cash equivalenta lhereol ot the lypea described Management and Budget under OMB Control Numbe�
In Seclfon I(b)(2)(8} ot the Davls-bacon Acf), deily and 1215•Oi49,)
weekly number of hou�s worked, daductlona made and (b) Each payroll submitted ehall be accomp�nied by �
actual wagea paid. Whenever Ihe Secrefary of Labor has "5iatemenl ol Compilance," slgned by the contrector or
tound under 29 CFR 5.5 (a)(1)(Iv) lhal the wages ot any subcontractor or hie or hsr agent who pays or supervisea
laborer or rnecha�ic include the amount of any costa the payment ot ihe persons amployed under the contract
reasonably anUcipated in providing benefits under a plen and shall certify the foliowing:
or program deacrfbed in Section I(b)(2)(8) of fhe Oavis- (�) That the payroll �or the payroll perlod conteinS the
eacon Act, ►he conlractor shall maintain racords which intorrnation required to be provided under 29 CFR 5.5
show thal Ihe commitmenl to provlde such benelila is
en(orceable, that Ihe plen or program is Iina�cially �°��3������ �he approprfate Informalion is being mafntalned
under 29 CFR 5.5(a)(3)(I), and ihat auch information {a
responelbie, and that the plan or program has been correct and complete;
Previoua adftiong are obsolete tonn NUD-4010 (0812009)
Page 2 W 5 ret. Ha�dbook 13M.1
(2) That each laborer or meChanic (InCluding each helper,
appranUce, and tralneej employed on the conlract during
the payroli period has been paid the (ull weekly wages
earned, without rebate, either dfrectiy or indireClly, and
Ihal no deductiona have been made either directly or
indirectly from the tuU wages earned, olher than
permissible deductions as set lorth in 29 CFR Part 3;
(3) That each laborer or mechanic has been pafd not less
than the applicable wage rates and fringe benetits or cash
equivalents for Ihe ciassiffcalion of work performed, as
specified In Ihe appilcable wage determinallon
incorporaled inlo the conlracl.
(c) The weekly submission ot a properly executed
certificalion set forth on the reverse side of OpUonal Form
WH-347 shall satisly the requiremeM for submission ot the
"Stalement ot Compllance' raquired by subparagraph
A.3.(ii)(b).
(d) The talsificatfon ot any of the above certitications may
subject the contractor or subcontractor lo clvll or criminal
prosecution under Seclion 1001 0l Tifle td and Section
231 of TiUe 31 of the Unfled States Code.
(Iil) The contractor or subcontractor shall make lhe
records required under subpurugraph A.3.(i) avpilable tor
inspecUon, copying, or Iranscrfption by aulhorized
representatives oi HUD or its designee or the Department
o! Labor, and shall permil such representatives to
interview employees during working hours on the job. If
lhe conlractor or subcontractor fails to submit the required
records or to make Ihem available, HUD or its designee
may, after writlen notice to the conlractor, sponsor,
applicant or owner, ►ake such aCtion as may be �ecessary
lo cause the suspension of any Iurther paymenl, advance,
or guarantee ol tu�ds. Furlhermore, Iailure lo submil lhe
required records upon roquest or to make such records
avallable may be grounds br debarment action pursuant to
29 CF'R 5.12.
4. Apprentices and Tralnsea.
(I) Apprantices. ApprenUces will be permitted lo work at
less than the predetermined rale for the work they
performed when Iney aro employed pursuant to and
individually regislored in a bona fide apprenticeship
program registered with the U S Departmenl ot l.abor,
Empioyment and Training Administralion. Office of
Apprenliceship Training. Employer and Labor Sarvices, or
with a Stale ApprenUceship Agency recogNzed by lhe
Office, or if a person is employed in his or her firs! 90
days ol probationary employment as an apprentice in such
an apprenticeshlp program, who is not individualiy
rr.gistered in the program, but who has been certified by
the Offfce of Apprenticeship 1'rainmg, Employer and Labor
Serv�ces or a Slate Apprenticeship Agency (where
appropriate) fo be eilgible tor probationar em lo t
is not reglstered or otherwlse employed as staled above,
shali be paid not less lhan the applicable wage rate on the
wage determination lor the classllication ot work aclually
per(ormed. In addillon, any apprentice perlorming work on
the job site in exceas ot lhe ratio permitled under Ihe
registered program shall be pald �ol less than Ihe
applicable wage rata on the wage determfnalion br the
work actually periormed. Where a contractor is performing
construction on a project in a locality other than that (n
whfch its progrem Is reglstered, the �atios and wage rates
(expressed in percentagea ot the journeyman's hourly
rate) speCltled in the coniraClor's or subcontraclor's
rogistered program shall be observed. Every apprenUce
musl be paid at not less lhan ihe rate specified in the
regislered program lor the apprenUce's level of progresa,
expressed as a percentaga ot the )ourneymen hourly rate
specifled In the appilcable wage determfnation.
Apprenttces shall be pafd fri�ge benetiis in accordance
with the provisions of the apprenifceship program. If the
apprenticeship program does not specify ►rfnge be�efits,
apprenlices must be paid the /ull amou�t o1 /ringe benelits
Iisted on the wage determination for the applicable
classitication. it the Administrator determinoa that a
different practice prevails for the applicable apprentice
classificalion, fringes shall be paid I� accordance with that
determination. In the csvenl the Office oi Apprentfceship
Training, Employer and Labor Services, or a State
Apprenliceship Agency recognized by the ONfce,
wilhdraws approval of an apprenticeshfp program, the
coniractor will no lo�ger be permllted to utllize
apprentices at less than the appiicable predefermined rate
for the work performed untfl an accaplable program is
approved.
(II) Tralnoea. Excepl as provided in 29 CFR 5.16,
Irainees will nol be permflted lo work at less than lhe
predetermfned rate lor the work pertormed unless lhey are
employed pursuant ',to and individually registered in a
program which has received prior approval, evidenced by
Iormal certification by the U.S. Oepartment of Labor,
Emptoyment and Training Administration. The ratio of
lrninees !o journeymen on the job sile shell not be grealei
lhan permitted under lhe plen approved by the
Employmenf and Training AdmiMstration. Every irainee
must be paid at nol less lhan Ihe rate specified in the
approved program for the trainee's level ot prograss,
expressed as a percenlage ol ihe �ourneyman hourly rate
spociflad In lhe appiicable wage determinalion Trainees
shall be paid frinye beneiits in accordance with lhe
provisions of lhe trainee program II the irainee proflram
does not me�tion fringe benefits, traineea shail be paid
Ihe full amounl ol fringe benefits Iisied on Ihe wage
determinaUon unless Ihe Administralor o( the Wage and
y p ymen as Hour Division delermines that lhere is a� apprenliceship
an apprentice The allowable ratio ot apprenlices to P�og�am associated wilh the corrasponding Journeyman
�our�eymen on lhe �ob site fn any cralt classificalion shall �vage rate on the wago delerminatlon whfch provides for
not be greator Ihan ihe ralio permitted lo Ihe contractor as �ess ihan luii fringe benetits Ior apprentices. Any
lo lhe enlire work lorce under Ihe reglstered program Any employee listed o� ihe payroll al a lraince rate who is nol
worker listed on a payroll al an apprenUce wage ra1e, who fe9�slered and participaling in a trai�ing plan approved by
Previous eddtons are obsolete form NUQ-t010 (0612�9)
Page 3 0( 5 rel. NarWbook 1344 1
the Employment and Training Administration shall be pald
not iess than the appllcable wage rate on lhe wage
determinatlon tor Ihe work actualiy pertormed. In addition,
any trainee performing• work on the Job sile In excesa ot
the raUo pe�mitted under the registered program shall be
paid not less than the appiicable wage rate on the wage
determinaUon br the work actuaily performed. In the
event the Employment and Tralning AdminisiraUon
withdraws approval ot a tralning program, the contractor
will no longer be permitted to utilfze traineea at less than
the applicabte p�edetermined rale /or the work performed
until an acceptAble program ia approved.
(II1) Equal employment oppottunity. The utllizallon o(
appren►fces, Irainees and journeymen under 29 CFR Par1 5
shall be In conlormity with the equai employment
opportunity requirements ot Execulive Order 11248, as
amended, and 29 CFR Part 30.
6, Compiisnca wlth Copeland Act roquiroments. The
contractor shatl compiy with the requirements of 29 CFR
Part 3 whfch are incorporated by reference in this contracf
8. 3ubcontracts. The contractor or subcontraclor will
insert In any subconlracts lhe clauses contalned in
subparagraphs / Ihrough 11 in Ihls paragraph A and such
other clausea as HUD or its designee may by approprfate
instructlona re,qulre, and a copy of Ihe appllcable
prevaliing waga decislon, and olso a clause requlring the
subcontractors to include lhese clauses in any lower tier
subcontracts. The prime contraClor shali be responsibie
for the compliance by any subcontractor o� lower tier
subcontractor wlth all (he contract Clauses fn this
paragraph.
7. Contract torminatlon; dobarmont. A breach of the
contract ctouses in 29 CFR 5.5 may be grounda tor
IerminaUon of lhe coMracl and for debarment as a
contractor and a subcontractor as provlded in 29 CFR
5.12.
8. Compllance wlth Dav�e•Bacon and Rolated Act Roqulroments.
All rulfngs and InlerpretaUons of lhe Davis•Bacon and
Related Acls contafned in 29 CFR Parts t, 3, and 5 are
heroln Incorporated by reference in ihis contract
8• Dtaputes concerning labor standarda. Disputes
aris�ng out of the labo► standards provisions ot this
coMract shall not be subJect to the general dtsputes
r.lause of Ihis contracl. Such dispules shall be resolved in
accordance wilh lhe procedures of the Deparlment nf
Labor sel forth in 29 CFR Parts 5, 6, and 7. Oisputes
within lhe meaning of lhis clause include disputes between
Ihe contractor (or any o( its subcontraclors) and HUO or
its designQe, the U.S Deparfmonl of Labor, or the
employeos or iheir representaUvas.
10. (I) Curtllicatlon of Ellgiblllty, 8y entering into this
contract the contractor certifles Ihat neither il (nor he or
she) �or any porson or firm who has an i�terest in ihe
conlraclor's (irm is a perspn or tirm ineligible to be
awarded Governmenl contracts by virlue ol SeCtion 3(a) ol
the Devis-0acon Act or 29 CFR 5 12(a)(1) or to be
awarded NUD coniracts or participate in HUD programs
pursuant to 24 CFR Part 24.
(Il) No part ol this contract shall be subconlracted to any
person or tlrm tnellgible for award oi a Government
conlract by virtue of Section 3(a) of the Oavla•Bacon Act
or 28 CFR 5.12(a)(1) or to be awarded HUD contracta or
particlpate In HUD programs pursuant to 24 CFR Part 24.
(III) The penalty for making fafse statementa is prescribed
In the U.S. Cr(minal Code, 18 U.S.C. 10U1. Additlonaily,
U.S, C�iminal Code, SecUon 1 O1 0, Tltle 18, U.S.C.,
"Federal Housing Adminlslration ira�saclfo�s', providas in
pa►t: 'Whoever, tor the purpose ot ... influencing In any
way the action ot such AdministraUon..... makes, utte�s or
publishea any statement knowing the same to be false.....
shali be lined no! more lhan 35,000 or (mprisoned not
more lhan lwo years, or both.'
11. Complalnts, Procoedings, or Teetimony by
Employees. No laborer or mechanic to whom the wage,
salary, or other labor standards provlslona of this Conhact
are appifcable shall be discharged or in any other manner
discrlminated agafnst by lhe Contractor or any
subcontractor because such employee has filed any
complain! or insUtuted or caused to be instituled any
proceeding or has tesUfied or is about to testi(y in any
proceeding under or ielating to the labor standards
appllcabie under this Contract to his empioyer,
8. ConUact Work Hours and 3atety 3tandards Act The
proviaions of thia paragraph B are applicable where the amount of Ihe
prime contract exceeds $100,000. As used in lhis paragraph, Ihe
terma "laborers' and "mechanics" include watchmen and guards,
(t) Ovortlme requlremants. No contractor or subcontractor
coniracting tor any part ol the contract work which may requfre or
Involve lhe employment ot laborers or mechanics shall require or
pe�mit any such laborer or mechanic in any worfcweek in which lhe
individual is employed on such work to work in excess o( 40 hours in
such workweek unless such laborer or mechanic receives
compensalion at a rate not less Ihan one and one-halt times the basic
rate of pay ►ot ell houra worked in exchssa ot 40 hours In such
worlcweek.
(2) Vlolatlon; Ilablllty }or unpeld wages; Ilquldatad
damages. In (he eveni of any violatlon ot the clause set
forlh in subparagraph (1) ot this paragraph, ihe contractor
and any subconlraclor responsible therofor shall be liable
br the unpaid wages, in addlUon, such contractor and
subconfractor shall be liable lo the United States (in the
case of work done under coniract for the District of
Columbia or a terrilory, to such District or to such
lerrilory), for liquidated damac�es. Such liquidated
damages shali b� computed wi(h respecl to Qach Indivldual
laborer or mechanic, including watchmen and guards,
employod in violalion of the clause set forth in
subparagraph ( t) ol this pe�agraph, in lhe sum of S10 for each
calQndar dey on which such individual was required ot pertnilled to
work in excess of Ihe slandard workweek o140 hours wilhout payment
ol lhe overtime wages required by ihe clause set lorih fn sub
paragraph (1) ot this paragroph.
Previous ed�tfons are obsolet�
form HUD-4010 (08l200g)
H'age 4 oI 5 reL Nandbook 13A4 1
(3) Withholdlny for u�peld wagos and Ilquldated
dam�ga�, HUD or Its deelgnee shail upon Ita own actlon
or upon wrlitan reQuest ot an authorizad representative ot
the Oepertment ol Labor withhold or causa to be wlthheld,
from any moneya payabie on account ol work performed by
the conlractot or subcontractor under any auch Contract or
any other Federal coMract wlth the seme p�irne contract,
or any other Federelly•assfsled contract subJec! to Ihe
Contract Work Houry and Safety Slandards Act which la
held by lha aeme prime contrector auch auma ae may be
determined lo be necessary to satisly any Ilabilillea of
such contraclor or subcontractor tor unpald wegea and
ilquidated damages aa provided In the clause set forth In
subparegraph (2) of thia paragraph.
(4) 9ubcontracb. The contractor or subcontraclor shali
Insert in any subcontracta the clauaea se! forth In
subparagreph (1) through (�) of lhia paragraph and also a
ctause requlring the subcontractors to Include thesa
ciauaea In any lower tler subcontracls. The prime
contractor shall be reaponslDle tor compllance by any
aubcontreclor or lower tler subcontractor with the ciauses
set forlh in subparagrapha (1) through (4) o} this
paragraph.
C. Heelth and 3efaty. The provislona ol Ihis paragraph C are
eppl(cable where the amoum o} ihe prime contrect exceeda 5100,000.
(1) No laborer or mechanic shall be required to work In
surroundinga or under working cqndltlons which are
unsanitary, hazardoue, or danfleroua to hla heallh and
safely as determined undar constructlon safety and health
standarde promulgaled by the Secretary of Lebor by
rec�ulatlon.
(2} The Coniractor shall comply with all rec�ulatlons
issued by the Secrelary of Labor pursuant to Tltle 29 Pnrt
1928 and fallure to comply may resull in irnposllion o!
sanctiona purauanl lo the Contracl Work Hours and Sa(ely
Stendarda Act, (Pubiic Law 91-54, 83 Stat 98). 40 USC
�701 el BeO.
(3) Tha contractor shall Inciude the proviaiona ot thls
paragroph in every aubcontract so lhat such provislons will
be binding on oach subcontractor. The contraClor shall
lake such action wllh raspect lo any subcontractor as the
Secretary ot Noueing and Urban Development or Ihe
Secratary ot Labor shall dlrect as a means o/ anforcing
such ptovislons.
Previoua editions are ob�olete
fortn NUQ-4010 (06/2009)
Page 5 of 5 re(. Nancf600k 1J44.1
EYHIBIT `�H-1"
WAGE DCCISION
P;��� l of4
G�n�rs�. Oa+�ision Atumkse�cc' '��230U2� 01/0�%2413� TX28, _
5uparsedeci- G+�nerai o��l.siorr Numbers `��4�01200�5:
Sta�e; T�x�B.
Construic�ioa Type. Eteafdet►tial'' -
�ountii�at �'ahn�ot��w Pa�k�r' and; Tarr�nt Coun�ie� in� `�exa�.
Resident,ta� Praj�ct�; conai�ttng ol� :sinqla ;fanti:].x h�a�e� and
apartmer��s up� tc� `anri inoludirig 4 stories.
ModiEication Numl�er publication Date�
0, O1/04/2013
"' 5C]'P7f199t�-�20' 04/01:/199t�
Eta�ea; N"ringes
CARP�NTEtt ( �xcrludinq dr,�wal]�
hanginr� anci f'czca� se�ttng) ...... .$ 9. 315
CEM�t�'I` MA,SON/Ct7NCRE`f�: '
EiNI3HEFt (Exaluding Eorm
��tti.nq) .........................3 9.98
DRYWAI,L HANG�R ...................5 9.00J
c^.LFCTRICIAN ......................5 10.214
Form Setter ......................5 9.194
HVAC MECHAN.IC �including
duct, r�xdl.uding pipe wark) . . . . . . . �$ s3. 337
Laborer, �ocnman ..................5 7.25
�ainr.e�rss
E3Yush .......................5 8�95
Sprsy .......................$ lO.UQ
PLU;�t3�R (Includinc� �iVAC �d�RK) ....$ iQ.687
Lic�Cih �R, inr.luriinq �uil� Upr
�"�r��so�ition <�nci �inql� pl��
:tr3of�.......� ....................5 �3.�i9�i
�h�s�t '.q���l ';��ork�r (Ertr_Ludin<�
�f�I7�C-cidxct �ork) . . . . . . . . . . . . . . . . . . � l �! . 1t)3
PILE SE'TTER ......................S 11.Sa
TRUCK ORIVER .....................5 7.25
i��LD�:ftS -- Recaiv� cate pr�scrib�d Eor craft p�rforminq
-�peration r_<� ;�hi<:h •.���1�iinq is incici�antal.
---------------------------..__---------_____.._,___________.._____
-----I�itp://�,uww.t�a�i��l.�uvl�vctull�:atil= c1�vi,�bs�c�rtt"C�CZS.�lvt�'Iv�Q--------_._._._�__.—._______..___ �lt�121J1�
Puge 2 of4
WELDERS - Receive rate prescrfbed for craft performinq
operation to which welding is incidental.
� oso xama�aasaaoma maaa:aa�a��smaQaav�taaaaamaam aaaaaa�aaaaseammav=aa�
Unlisted classifications needed ior work not included within
the scope of the classifications listed may be added aFter
award only as provided in the labor standards contract clauses
(29CF'R 5.5 (a) (1) (ii)).
----------------------------------------------------------------
The body oF each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The classifications are listed in alphabetical
order of "identifiers" that indicate whether the particular
rate is union or non-union.
Union identifiers
An idenCifier enclosed .in dotted lines beginning with
characters other than "SU" denotes that the union
classiFication and rate ilave found to be prevailing for that
classification. Example: PLUM0198-005 07/O1/2011. The first
four letters , PLUM, indicate the international union and the
four-digit number, 0198, that follows indicates the local union
number or district council number where applicable , i.e.,
PLumbers Local 0198. The next number, 005 in the example, is
an ineernal number used in processing the waqe determination.
The date, 07/O1/?011, following these characters is the
eFfective <9ate of the most current negotiated rate/collectiv�
bargaining aqreement which would be July l, 2011 in the above
example.
Union prevailing wage rates will be updated to reflect any
chanqes in the collective bargaining aqreements governing the
rates.
UQ00/9999: weiqhted union waqe rates will be published annually
each January.
Non-Union identifiers
Classifications listed under an "SU" identifier were derived
from survey data by computinq averaye rates vI1C� are not union
rates; however, r_he data used in computinq these rates may
include bot.h union and non-union data. Example: StJLA2004-007
5/13/2U10. S(l indicares the rar_es are not union majority rates,
LA indicates rhe State oE Louisiana; 2004 is r_he year of the
survey; and 007 is an internal number used in producinq the
waqe determination. A 1993 or later dar_e, 5/13/2010, indic�tes
the classiEications and rates �.inder that i�ientifier �,.�ere issued
http://www.wdol.�ov/wdoU�catiles/ciavisbacon/TX25.clvb?v=0 ��/ 19/2013
Pttge 3 of 4
as a General Wage Determination on that date.
Survey wage rates will remain in effect and wi11 not change
until a new survey is conducted.
----------------------------------------------------------------
WAGE DETEEtMINATION APPEALS PROCESS
1.) Fias there been an initial decision in the matter? This can
be:
* an existing published wage determination
* a survey underlying a waqe determination
� a Wage and Hour Division letter settinq Forth a position on
a wage determination matter
* a conformance (additional classiPication and rate) ruling
On survey related matters, initial contact, including requests
for summaries of surveys, should be with the Wage and Hour
Regional Office for the area in which the survey was conducted
because those Reqional Offices have responsibility for Che
Davis-Bacon survey program. IE the response from this initial
contact is not satisfactory, then the process described in 2.)
and 3.) should be Followed.
With reqard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department oE Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
?_.) IE the answer to the question i.n 1.) is yes, then an
inY_erested party (those affected by the action) can rec�iest
review and reconsideration £rom the Wage and Hour Administrator
(See 29 CER Part 1.8 and 7_9 CFR Part 7). Write Co:
rlaqe and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
��ashinqton, DC ?_0210
The request should be accompanied by a fu11 statement oE the
intecested party's position and by any inEormation (waqe
payment dar_a, project desr.ription, area pr�ict.ice matetial,
eY,c.) that the requestor r_onsider.:� relevant to the issue.
3.) IE �he decision of the Administrator is not favorable, an
interested party may appeal directly r_o the Administrative
Review Hoard (formerly the `rlaqe AppeaLs E3oard). r�rite to:
Acimi.nistrative Review �oard
U.5. Department of Labor
200 Constitution rlvenue, N,W.
'rlashinqton, OC 20210
http://www.wdal.govlwdoUscatiles/ciavisbaconlTX25.dvb?v=0 R�/� q/�p� 3
P�ge 4 of 4
4.) All decisions by the Administrative Review eoard are final.
� ��.sa��m�mm�s� s��.���s�.».a��.���.—__�,���a�. ��,��,��.�mffi���.��,.
END OF GENERAL DECISION
http://�v�vw.w�loLgov/�vdoUscatiles/davisbaconl"T`X25.dvb?v=0 ���) y��p � 3
EYHIBIT "H-2"
CON'I'RACTOR INFOI2MATION rOR1�1
Clty of Fort �Vorth
Community Development Block Grant (CDBG)
ConstrucNon Projects
CONTRACTOR INFORIVIATION
Date:
Project:
C�ntractor:
Address:
City:
Telephone:
Federal I.D. �#:
Officers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
If sole ownership or partnership, list owner(s);
Fax:
[ certify at the time c�f execution, hereof, neither my company nor my corpor�ite ofEicers (if
ineorporatecl) are (istecl in the list of Debarred, 5uspended, and Ineligible Contraetors maint<iined
by the U.S Department af Housing and Urban Development (HUD).
Si�,nature:
EYHIBIT `�H-3"
SUBCONTRACTOR INFORNIATION FORIVI
City af Fort Warth
Community Develvpment Block CrAnt (CDBG)
Construction Projects
SUBCON'I'RACTOR I�'VFORMATION
Date:
Project:
Subcontractor:
Adciress:
City:
Telephone:
Federtil I.D. #:
Ofticers of the Corporallon:
President:
Vice President:
Secretary:
`Creusurer:
If sole ownership or pa�-tnership, list owner(s):
Fax:
[ certify at the time of execution, hereof, neither my company nor my c�rp�rate officers (iF
incorporated) are listed in the list of Debarred, Su.gpended, and [nelig,ible Contractors maintained
by the U.S D�pt�rtment of Fiousing and C1rban Development (E{UD),
S i�;nature:
EYHIBIT "H-4"
LA130R RELATIONS GUIDE
U.S. Department of Housing
and Urban Development
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INTRODUCTION
This Guide has been prepared for you as a contractor performing work on construction projects
that are assisted by the Department of Housing and Urban Development and subject to Davis-
Bacon prevailing wage requirements. This Guide does not address contractor requirements
involved in direct Federal contracting where HUD or another Federal agency enters into a
procurement contract. In this latter case, the Federal Acquisition Regulations (FAR) are appli-
cable. While the guidance contained in this Guide is generally applicable to any Davis-Bacon
covered project, specific questions pertaining to direct Federal contracts should be addressed
to the Contracting Officer who signed the contract for the Federal agency.
Our objective here is to provide you with a guide which is simple and non-bureaucratic yet
comprehensive and which will help you better understand and comply with Davis-Bacon labor
standards. NUD's Office of Labor Relations worked closely with the Department of Labor's
Wage and Hour Division to make sure that the labor standards provisions in your contract and
the specifics of complying with them represent the latest information. It is the Department of
Labor which has generat administrative oversight of all Federal contracting agencies, such as
HUD, which administer the day-to-day responsibilities of enforcing Davis-Bacon provisions in
construction contracts they either fund or assist in funding.
There are three chapters in this Guide. The flrst chapter offers a brief description of the laws
and regulations associated with Federal labor standards administration and enforcement and
discusses both what's in your contract that requires Davis-Bacon compliance and your respon-
sibilities. The second chapter deals with labor standards and payroll reporting requirements.
The third chapter discusses what can happen in the event there is a dispute about the wage
rates that should be (or have been) paid and any back wages that may be due.
Finally, not all HUD construction projects are covered by Davis-Bacon wage rates. For the pur-
pose of this Guide, we are assuming that a determination has already been made that Davis-
Bacon wage rates are applicable. Should you wish assistance in determining whether Davis-
Bacon wage rates apply to a particular project or if you need other related technical assistance,
please consult with the NUD Labor Relations Field staff for your area. If you don't know which
staff to contact, a list of Labor Relations field offices and their geographic areas and telephone
numbers can be found on HUD's Home Page at the address below.
Visit the Offica of Labor Relations on-line:
��p //www i�s�d c1r�v/oifices/vlr
Obtain additional copies of this Guide and other publications at our website or by telephone
from HUD's Customer Service Center at (800)76i-7468.
TABLE OF CONTENTS
INTRODUCTION................................................................................................................ i
CHAPTER 1 LAWS, REGULATIONS, CONTRACTS
AND RESPONSIBIL.ITIES .................................................................1-1
1-1
1-2
1-3
1-4
1-5
DAVIS-BACON AND OTHER LABOR LAWS. -
.......................................................1 1
a. The Davis-Bacon Act (DBA) ...............................................................................1-1
b. The Contract Work Hours and Safety Standards Act (CWHSSA) ......................1-1
c. The Copeland Act (Anti-Kickback Act) ................................................................1-2
d. The Fair Labor Standards Act (FLSA) -
...............................................................1 2
DAVIS-BACON REGULATIONS .............................................................................1-2
CONSTRUCTION CONTRACT PROVISIONS .......................................................1-2
RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR ......................................1-3
RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR .................................1-4
CHAPTER 2 HOW TO COMPLY VVITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS .............................2-1
SECTION - I THE BASICS
2-1
2-2
�
�
THEWAGE DECISION ...........................................................................................2-1
a. The work classifications and wage rates ............................................................2-1
b. Posting the wage decision ..................................................................................2-2
ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES ....................... 2-2
a. Additional classification rules .............................................................................2-2
b. Making the request .............................................................................................2-3
c. H U D review ................................................................................................ .. 2-3
......
d. DOL decision ...................................................................................................... 2-3
CERTIFIED PAYROLL REPORTS ..........................................................................2-4
a. Payroll formats ...................................................................................................2-4
b. Payroll certifications ...........................................................................................2-4
c. "No work" payrolls ..............................................................................................2-4
d. Payroll review and submission ........................................................................... 2-5
e. Payroll retention ................................................................................. ........2-5
f. Payrotl inspection ............................................................................................... -
25
DAVIS-��4CON DEFINITIOPVS ................................................................................2-5
a. Laborer or mechanic .......................................................................................... 2-5
b. Employee ........................................................................................................... -
26
c. Apprentices and trainees .................................................................................... -
26
d. Prevailing wages or wage rates ................................ .2-7
........................................
e. Fringe benefits ......................................................................................... ......... -
.. 2 7
f. Overtime ............................................................................................................. -
27
g. Deductions ......................................................................................................... -
28
h. Proper designation of trade ................................................................................2-8
i. Site of work .........................................................................................................2-8
�C
SECTION - II REPORTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT ....................................................................2-9
a. Project and contractor/subcontracto� information ...............................................2-9
b. Employee information .........................................................................................2-9
c. Work classification ..............................................................................................2-9
d. Hours worked .....................................................................................................2-10
e. Rate of pay .........................................................................................................2-10
f. Gross wages earned .......................................................................................... 2-10
g. Deductions .........................................................................................................2-11
h. Net pay ...............................................................................................................2-11
i. 5tatement of compliance ....................................................................................2-11
j. Signature ............................................................................................................2-11
SECTION III - PAYRO�L REVIEWS AND CORRECTIONS
2-6 COMPLIANCE REVIEWS .......................................................................................2-12
a, On-site interviews ...............................................................................................2-12
b. Project payroll reviews .......................................................................................2-12
2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS .......................2-12
a. Inadequate payroll information ...........................................................................2-12
b. Missing identification numbers ...........................................................................2-12
c. Incomplete payrolls ............................................................................................2-13
d. Classifications ....................................................................................................2-13
e. Wage Rates ........................................................................................................2-13
f. Apprentices and trainees ....................................................................................2-13
g. Overtime ............................................................................................................. 2-13
h. Computations .....................................................................................................2-13
i. Deductions .........................................................................................................2-13
j. Fringe benefits ....................................................................................................2-14
k. Signature ............................................................................................................2-14
I. On-site interview comparisons ........................................................................... 2-14
m. Correction certified payroll ..................................................................................2-14
2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES ............................................. 2-14
a. Notification ..........................................................................................................2-14
b. Computing wage restitution ................................................................................2-15
c. Correction certified payrolls ................................................................................2-15
d. Review of correction CPR ..................................................................................2-15
e. Unfound workers ................................................................................................ 2-15
iv
CNAPTER 3 L�4BOR STANDARDS DISPUTES, ADMI(diSTRATIVE
REVIEWS, WITHHOLDING, DEPO5ITS AND ESCROW
ACCOUNTS, AND SANCTIONS .......................................................3-1
3-1 INTRODUCTION ..................................................................................................... 3-1
3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES .....................3-1
a. Additional classifications and wage rates ........................................................... 3-1
b. Findings of underpayment ..................................................................................3-2
3-3 WITHHOLDING .......................................................................................................3-2
3-4 DEPOSITS AND ESCROWS .................................................................................. 3-3
3-5 ADMINISTRATIVE SANCTIONS ............................................................................ 3-4
a. DOL debarment ..................................................................................................3-4
b. HUD sanctions ...................................................................................................3-4
3-6 FALSIFICATION OF CERTIFIED PAYROLL REPORTS ........................................3-5
APPENDICIES
ACRONYMS AND SYMBOLS ...........................................................................................A-1
DAVIS-BACON - RELATED WEB SITES* ........................................................................A-2
HUD-4720, Project Wage Rate Sheet ..............................................................................A-3
WH-347, Payroll Form/Statement of Compliance ..........................................................A-4
v
CHAPTER 1 LAWS, REGULA710N5, CONTRACTS
A�JD RESP4iVSI�ILITiES
The following paragraphs describe what the labor standards laws and regulations actually say
and what they mean to you on HUD projects:
�� •1 � � • ; �:•; ,
a. The Davis-Bacon Act (DBA� The Davis-Bacon Act requires the payment of prevailing
wage rates (which are determined by the U.S. Department of Labor) to all laborers and
mechanics on Federal government and District of Columbia construction projects in
excess of $2,000. Construction includes alteration and/or repair, including painting and
decorating, of public buildings or public works.
Most HUD construction work is not covered by the DBA itseli since HUD seldom contracts
directly for construction services. Most often, if Davis-Bacon wage rates apply to a HUD
project it is because of a labor provision contained in one of HUD's "Related Acts" such
as the U. S. Housing Act of 1937, khe National Housing Act, the Housing and Community
Development Act of 1974, the National Affordable Housing Act of 1990, and the Native
American Housing Assistance and Self-Determination Act af 1996. The Related Acts are
often referred to as the Davis-Bacon and Related Acts o� DBRA.
b. The Contract Work Hours and Safe�,y Standards Act jCWHSSA�, CWHSSA
requires time and one-half pay for overtime (O/T) hours (over 40 in any workweek)
worked on the covered project. The CWHSSA applies to both direct Federal
contracts and to indirect Federally-assisted contracts except where the assistance
is solely in the nature of a loan guarantee or insurance. CWHSSA violations
carry a liquidated damages penalty ($10/day per violation). Intentional violations
of CWHSSA standards can be considered for Federal criminal prosecution.
CWHSSA does not apply to prime cantracts of $100,000 or I�ss. In addition, some HUD
projects are not covered by CWHSSA because some HUD programs only provide loan
guarantees nr insurance. CWNSSA also does not apply to construction or rehabilitation
contracts that are not subject to Fed�ral prevailing wage rates (e.g., Davis-�acon wage
rates, or NUD-determined rates for operation of public hnusing and Indian block grant-
assisted housing). However, even though CWHSSA overtime pay is not required, Fair
Labor Standards Act (FLSA) avertime pay is probably still applicable. (See also Labor
Relations Letter SL-95-01, CWHSSA Coverage threshold for overtime and health and
safety provision, available on-line at the HUD Labor Relations Library at: www.hud.gov/
offices/olr/library.cfm)
1-1
c. The Coaeland Act (Anti-KlGkhar.k Act1 The Copeland Act makes it a Federal crime
for anyone to require any laborer or mechanic (employed on a Federal or Federally-
assisted project) to kickback (i.e., give up or pay back) any part of their wages. The
Copeland Act requires every employer (contractors and subcontractors) to submit
weekly certified payroll reports (CPRs) and regulates permissible payroll deductions.
d. The Fair Labor Standards Act ( LF SA1 The FLSA contains Federal minimum wage
rates, overtime (O/T), and child labor requirements. These requirements generally apply
to any labor performed. The DOL has the authority to administer and enforce FLSA.
HUD will refer to the DOL any possible FLSA violations that are found on HUD projects.
'' =: •► ' : •�
The Department of Labor (DOL) has published rules and instructions concerning
Davis-Bacon and other labor laws in the Code of Federal Regulations (CFR). These
regulations can be found in Title 29 CFR Parts 1, 3, 5, 6 and 7. Part 1 explains how
the DOL establishes and publishes DBA wage determinations (aka wage decisions) and
provides instructions on how to use the determinations. Part 3 describes Copeland Act
requirements for payroll deductions and the submission of weekly certified payroll reports.
Part 5 covers the labor standards provisions that are in you� contract relating to Davis-
Bacon Act wage rates and the responsibilities of contractors and contracting agencies to
administer and enforce the provisions. Part 6 provides for administrative proceedings
enforcing Federal labor standards on construction and service contracts. Last, Part 7
sets parameters for practice before the Administrative Review Board. These regulations
are used as the basis for administering and enforcing the laws.
DOL Regulations are available on-line on the World Wide Web:
http://www.dol.gov/dol/allcfrlTitle_29. htm
•► : , •► •► :: •:• �. ,
Each contract subject to Davis-Bacon labor standards requirements must contain labor
standards clauses and a Davis-Bacon wage decision. These documents are normally
bound into the contract specifications.
a. The labor standards clauses. The labor standards clauses describe the responsibilities
of the contractor concerning Davis-Bacon wages and obligate the contractor to comply
with the labor requirements. The labor standards clauses also provide for remedies in
the event of violations, including withholding from payments due to the contractor to
ensure khe payment of wages or liquidated damages which may be found due. These
contract clauses enable the contract administrator to enforce the Federal labor standards
applicable to the project. HUD has standard forms that contain contract clauses. For
example, the HUD-2554, Supplementary Conditions to the Contract for Construction,
�nrhich is issued primarily for FHA rnultifamily housing and other construction projects
1-2
administered by HUD; the HUD-4010, Federal �abor Standards Provisions, which is used
for CDBG and HOME projects, and the HUD-5370, General Conditions of the Contract for
Construction or the HUD-5370-EZ (construction contracts s$100,000) which are used for
Public and Indian Housing projects.
HUD program labor standards forms are available on-line at:
www.hud.gov/offices/adm/hudclips/index.cfm
� �
b. Davis-Bacon Wage Decisions. The Davis-Bacon wage decision (or wage determination)
is a listing of various construction work classifications, such as Carpenter, Electrician,
Plumber and Laborer, and the minimum wage rates (and fringe benefits, where prevailing)
that people performing work in those classifications must be paid.
Davis-Bacon wage decisions are established by the DOL for various types of construction
(e.g., residential, heavy, highway) and apply to specific geographic areas, usually a
county or group of counties. Wage decisions are modified from time to time to keep them
current. In most cases, when the contract is awarded or when construction begins, the
wage decision is "locked-in" and no future modifications are applicable to the contract or
project involved.
All current Davis-Bacon wage decisions can be accessed on-line at no cost at:
http://www.wdol.gov
� /
, ' '•► ,; • � " 1 '_- •� ',: •:
The principal contractor (also referred to as the prime or general confracfor) is responsible
for the full compliance of all employers (the contractor, subcontractors and any lower-tier
subcontractors) with the tabor standards provisions applicable to the project. Because
of the contractual relationship between a prime contractor and his/her subcontractors,
subcontractors generally should communicate with the contract administrator only through
the prime contractor. (See Contract Administrator, below.)
To make this Guide easier to understand, the term "prime contractor" will mean the
principal contractor; "subcontractor" will mean all subcontractors including lower-tier
subcontractors; and the term "employer" will mean all contractors as a group, including
the prime contractor and any subcontractors and lower-tier subcontractors.
1-3
i ��► � ■- �► � ��ll l i� �►
The contract administrator is responsible for the proper administration and enforcement
of the Federai labor standards provisions on contracts covered by Davis-Bacon
requirements. We use this term to represent the person (or persons) who will provide
labor standards advice and support to you and other project principals (e.g., the owner,
sponsor, architect), including providing the proper Davis-Bacon wage decision
(see 2-1, The Wage Decision) and ensuring that the wage decision and contract clauses
are incorporated into the contract for construction. The contract administrator also monitors
labor standards compliance (see 2-6, Compllance Reviews) by conducting interviews
with construction workers at the job site and reviewing payroll reports, and oversees any
enforcement actions that may be required.
The contract administrator could be an employee or agent of HUD, or of a city or county or
public housing agency. For HUD projects administered directly by HUD staff, usually FHA-
insured multifamily projects, the contract administrator will be the HUD Labor Relations
field staff. But many HUD-assisted projects are administered by local contracting agencies
such as Public Housing Agencies (PHAs), Indian tribes and tribally-designated housing
entities (TDHEs), and States, cities and counties under HUD's Community Development
Block Grant (CDBG) and HOME programs. In these cases, the contract administrator
will likely be local agency staff. In either case, the guidance for you remains essentially
the same.
The DOL also has a role in monitoring Davis-Bacon administration and enforcement. In
addition, DOL has independent authority to conduct investigations. A DOL investigator
or other DOL representative may visit Davis-Bacon construction sites to interview
construction workers or review payroll information.
1_4
CNAPT�R 2 FiOW TO COMPLY WITH L�1BOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
WHERE TO START? Now that you know you're on a Davis-Bacon project and you know
some of the legal and practicai implications, what's next?
SECTION I - THE BASICS
2-1 THE WAGE DECISION.
Davis-Bacon labor standards stipulate the wage payment requirements for Carpenters,
Electricians, Plumbers, Roofers, Laborers, and other construction work classifications
that may be needed for the project. The Davis-Bacon wage decision that applies to the
project contains a schedule of work classifications and wage rates that must be followed.
If you don't have it already (and by now you should), you'll want to get a copy of the
applicable Davis-Bacon wage decision.
Remember, the wage decision is contained in the contract specifications along with the
labor standards clauses. See 1-3, Construction Contract Provisions.
\ /
a. The work classifications and wage rates� A Davis-Bacon wage decision is simply a
listing of different work classifications and the minimum wage rates that must be paid
to anyone performing work in those classifications. You'll want to make sure that the
work classification(s) you need are contained in the wage decision and make certain
you know exactly what wage rate(s) you will need to pay. Some wage decisions
cover several counties and/or types of construction work (for example, residential
and commercial work) and can be lengthy and difficult to read. Contact the contract
administrator (HUD Labor Relations field staff or local agency staffl if you have
any trouble reading the wage decision or finding the work classification(s) you need.
To mak� reading leng#hy wage decisions easier for you, the cnntract administrator may
prepare a Project Wage Rate Sheet (HUD-4720). This Sheet is a one-page transcript that
will show only the classifications and wage rates for a particular project. A blank capy of
a Project Wage Rate Sheet is provided for you in the appendix. Also, a fillable version of
this form is available on-line at HUDCIips (see web address in the Appendix). Contact the
contract administrator monitoring your project for assistance with a Project Wage Rate
Sheet.
2-1
b. Postinq the wage decision. If you are the prime contractor, you will be responsible for
posting a copy of the wage decision (or the Project Wage Rate Sheet) and a copy of the
DOL Davis-Bacon poster titied Employee Rights under the Davis-Bacon Act (Form WH-
1321 } at the job site in a place that is easily accessible to all of the construction workers
employed at the project and where the wage decision and poster won't be destroyed by
wind or rain, etc. The Employee Rights under the Davis-8acon Act poster is available in
English and Spanish on-line at HUDCIips (see address in the Appendix).
The Employee Rights under the Davis-Bacon Act poster (WH-1321) replaces the Notice
to all Employees. The new poster is available in English and Spanish on-line at HUDCIips
(see address in the Appendix).
2-2 ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES.
What if the work classification you need isn't on the wage decision? If the work
classification(s) that you need doesn't appear on the wage decision, you will need to
request an additional classification and wage rate. This process is usually very simple
and you'll want to start the request right away. Basically, you identify the classification
you need and recommend a wage rate for DOL to approve for the project. There are a
few rules about additional classifications; you'll find these rules in the DOL regulations,
Part 5, and in the labor clauses in your contract. The rules are summarized for you here:
a. Additional classification rules. Additional classifications and wage rates can be
approved if:
1. The requssted classification is used by construction contractors in the area of the
project. (The area is usually defined as the county where the project is located).
2. The wark that will be performed by the requested classification is not already
performed by another classification that is already on the wage decisian. (In other
words, if there already is an Electrician classification and wage rate on the wage
decision you can't request another Electrician classification and rate.)
3. The proposed wage rate fvr the requested classification "fits" with the other wage
rates already on ih� wage decision. (�or example, the wage rate propased for
a trade classi�cation such as Electrician must be at least as much as the lowest
wage rate for oiher trade classific�tions �Iready contained in the wage decision.)
And,
4. The warkers that wiil be emplayed in the added classification (if it is known who the
workers are/will be), or the workers' representatives, must agree with the proposed
wage rate.
2-2
b. Making the reauest. A request for additional classification and wage rate must be made
in writing through the contract administrator. (If the contract administrator is a locai
agency, the agency will send the request to the HUD Labor Relations staff.) If you are a
subcontractor, your request shouid aiso go through the prime contractor. Ali you need to
do is identify the work classification that is missing and recommend a wage rate (usually
the rate that employer is already paying to the employees performing the work) for that
classification. You may also need to describe the work that the new classification will
perform.
c. HUD review. The HUD Labor Relations field staffwill review the requested classification
and wage rate to determine whether the request meets the DOL rules outlined in paragraph
2-2(a), above. If additional information or clarification is needed, the staff will contact the
prime contractor (or contract administrator for local agency projects) for more information,
etc. If the Labor Relations review finds that the request meets the rules, the staff will give
preliminary approval on the request and refer it to the DOL for final approval. The staff
will send to you a copy of the preliminary approval/referral letter to the DOL.
If the HUD �abor Relations staff doesn't think the request meets the rules and if agreement
can't be reached on the proper classification or wage rate for the work described, the
HUD Labor Relations staff will not approve the request. In this case, the staff will send
your request to the DOL with an explanation why HUD believes that the request shouldn't
be approved. The DOL still has final decision authority. You will receive a copy of the
disapproval/referral letter to the DOL.
d. DOL decision. The DOL will respond to HUD Labor Relations in writing about the
additional classification and wage rate request. HUD Labor Relations will notify you of
the DOL decision in writing. If the DOL approves the request, the prime contractor must
post the approval notice on the job site with the wage decision.
If the DOL does not approve the request, you will be notified about what classification and
wage rate should be used for the work in question. You will also receive instructians about
how to ask for DOL reconsideration if you still want to try to get your recommendation
approved.
It's always a good idea to talk to the contract administrator before submitting an additional
classification and wage rate request. The contract administratnr can offer suggestions
and advice that rnay save you time and increase the likelihood ihat DOL will apprnve your
request. Usually, the contract administrator can give you an idea about what the DOL will
finally decide.
2-3
�- c�ii I� � ' _\'T:Z�I_��f:� '�1•J:i��l
You'li need to submit a weekly certified payroll report (CPR) beginning with the first week
that your company works on the project and for every week afterward until your firm has
completed its work. It's always a good idea to number the payroll reports beginning with
#1 and to clearly mark your last payroll for the project "Final."
a. Payroll formats. The easiest form to use is DOL's WH-347, Payroll. A sample copy of
the WH-347 is included in the back of this Guide. You may access a fillable version of
the WH-347 on-line at HUDCIips (see web address in the Appendix). Also, the contract
administrator can provide a few copies of the WH-347 that you can reproduce.
You are not required to use Payroll form WH-347: You are welcome to use any other type
of payroll, such as computerized formats, as long as it contains all of the information that
is required on the WH-347.
b. Payroll certifications. The weekly payrolls are called certified because each payroll
is signed and contains language certifying that the information is true and correct, The
payroll certification language is on the reverse side of the WH-347. If you are using
another type of payroll format you may attach the certification from the back of the WH-
347, or any other format which contains the same certification language on the WH-347
(reverse).
DOL's website has Payroll Instructions and the Payroll form WH-347 in a"fillable" PDF
format at this address:
www.dol.gov/whd/forms/wh347. pdf
c. "No work" �yrolls. "No work" payrolls may be submitted whenever there is a
temporary break in your work on the project, for example, if your firm is not needed on
the project right now but you will be returning to the job in a couple of weeks. (See tip
box, for "no work" payroll exemption!) However, if you know that your firm will not be
working on the project for an extended period of time, you rnay wish to send a short
note to the contract administrator to let them know about ihe break in work and to give
an approximate d�te when your firm will return to the project. If you number payrolls
consecutively or if you send a note, you do not need to send "no work" payrolls.
/
If you number your payroll reports consecutively, you do not need ta submit "no work"
payrolls!
� /
2-4
d. Payrolireviewandsubmission Theprimecontractorshouldrevieweachsubcontractor's
payroil reports for compliance prior to submitting the reports to the contract administrator.
Remember, the prime contractor is responsibie for the full compliance of ali subcontractors
on the contract and will be held accountable for any wage restitution that may be found
due to any laborer or mechanic that is underpaid and for any liquidated damages that
may be assessed for overtime violations. All of the payroll reports for any project must be
submitted to the contract administrator through the prime contractor.
An alert prime contractor that reviews subcontractor payroll submissions can detect any
misunderstandings early, prevent costly underpayments and protect itself from financial
loss should underpayments occur.
e. Payroll retention. Every contractor (including every subcontractor) must keep a complete
set of their own payrolls and other basic records such as employee addresses and full
SSNs, time cards, tax records, evidence of fringe benefit payments, for a Davis-Bacon
project for at least 3 years after the project is completed. The prime contractor must keep
a complete set of all of the payrolls for every contractor (including subcontractors) for at
least 3 years after completion of the project.
f. Pavroll inspection. In addition to submitting payrolls to the contract administrator, every
contractor (including subcontractors) must make their own copy of the payrolls and
other basic records available for review or copying to any authorized representative from
HUD or from DOL.
� �_ -_ •► � ► •►
Before we discuss how to complete the weekly payroll forms, we need to review a couple
of definitions. These definitions can help you understand what wilt be required of you:
a. �.aborer or mechanic. "Laborers" and "mechanics" mean anyone who is performing
construction work on the project, including trade journeymen (carpenters, plumbers, sheet
metal workers, etc.), apprentices, and trainees and, for CWHSSA purposes, watchmen
and guards. "Laborers" and "mechanics" are the two groups of workers that must be paid
not less than Davis-Bacon wage rates.
1. Working for�men. Foremen or supervisors that rPgularly spend rnore than
20% of their time performing construction work and do not meet the exclusions
in paragraph 2 below are covered "laborers" and "mechanics" for labor standards
purposes for the time spent performing construction work.
2. Exclusions. People whose duties are primarily administrative, executive or
clerical are not laborers or mechanics. Examples include superintendents, o�ce
staff, timekeepers, messengers, etc. (Contact the contract administrator if ynu
have any questions about whether a particular employee is excluded.)
2-5
b. Emgloyee. Every person who performs the work of a laborer or mechanic is "employed"
regardiess of any contractual relationship which may be alleged to exist between a
contractor or subcontractor and such person. This means that even if there is a contract
between a contractor and a worker, the contractor must make sure that the worker is
paid at least as much as the wage rate on the wage decision for the classification of work
they perform. Note that there are no exceptions to the prevailing wage requirements for
relatives or for self-employed laborers and mechanics.
For more information about working subcontractors, ask the contract administrator or
your HUD Labor Relations Field Staff for a copy of Labor Relations Letter LR-96-01,
Labor standards compliance requirements for self-employed laborers and mechanics.
Labor Relations Letters and other helpful Labor Relations publications are available at
HUD's Labor Relations web site (see the list of web site addresses in the Appendix).
Apprentices and trainees. The only workers who can be paid less than the wage rate on
the wage decision for their work classification are "apprentices" and "trainees" registered in
approved apprenticeship or training programs. Approved programs are those which have
been registered with the DOL or a DOL-recognized State Apprenticeship Council (SAC).
Apprentices and trainees are paid wage rates in accordance with the wage schedule in
the approved program.
Most often, the apprentice/trainee wage rate is expressed as a series of percentages tied
to the amount of time spent in the program. For example, 0-6 months: 65%; 6 months
- 1 year: 70%; etc. The percentage is applied to the journeyman's wage rate. On Davis-
Bacon projects, the percentage must be applied to the journeyman's wage rate on the
applicable wage decision for that craft.
1. Prabationary a�prentice A"probationary apprentice" can be paid as an apprentice
(less than the rate on the wage decision) if the DOL or SAC has certified that the
person is eligible for probationary employment as an apprentice.
Z. Pr„ e-a��arentice A"pre-apprentice", that is, someone who is not registered in a
program and who hasn't been DOL- or SAC-certi�ed for probationary apprenticeship
is not considered to be an "apprentice" and must be paid the full journeyman's rate
on the wage decision for the classification of work they perform.
3. �atio of aaarentices and traineA_ to journ�Ymen The maximum number of
apprentices or trainees that you can use on the job site cannot exceed the ratio of
apprentices or trainees to journeymen allowed in the approved program.
2-6
d. Prevailing wages or wage rates. Prevailing wage rates are the wage rates listed on the
wage decision for the project. The wage decision will list a minimum basic hourty rate
of pay for each work classification. Some wage decisions include fringe benefits which
are usually listed as an hourly fringe rate. If the wage decision includes a fringe benefit
rate for a classi�cation, you will need to add the fringe benefit rate to the basic hourly rate
unless you provide bona fide fringe benefits for your employees.
1. Piece-work. Some employees are hired on a piece-work basis, that is, the
employee's earnings are determined by a factor of work produced. For example,
a Drywall Hanger's earnings may be calculated based upon the square feet of
sheetrock actually hung, a Painter's earnings may be based upon the number
of units painted. Employers may calculate weekly earnings based upon
piece rates provided the weekly earnings are sufficient to satisfy the wage
rate requirement based upon actual hours, including any overtime, worked.
Accurate time records must be maintained for any piece-work employees.
If the weekly piece rate earnings are not sufficient, the employer must
recompute weekly earnings based upon the actual hours worked and
the rate on the wage decision for the work classification(s) involved.
e. Fringe benefit� Fringe benefits can include health insurance premiums, retirement
contributions, life insurance, vacation and other paid leave as well as some contributions
to training funds. Fringe benefits do not include employer payments or contributions
required by other Federal, State or local laws, such as the employer's contribution to
Social Security or some disability insurance payments.
Note that the total hourly wage rate paid ta any laborer or mechanic (basic wage or basic
wage plus fringe benefits} may be no less than the total wage rate (basic wage or basic
wage plus fringe benefits) on the wage decision far their craft. If the value of the fringe
benefit(s) you provide is less than the fringe benefit rate on the wage decision, you will
need to add the balance of the wage decision fringe bene�t rate to the basic rate paid to
the employee. For example, if the wage decision requires $10/hour basic rate plus $5/
hour fringe benefits, you must pay no less than that total ($15/haur) in the basic rate or
basic rate plus whatever fringe benefit you may provide. You can meet this obligation
in several ways: you could pay the base wage and fringe benefits as stated in the wage
decision, or you could pay $15 in base wage with no fringe benefits, or you could pay $12
basic plus $3 fringe benefits. You can also off-set the amaunt of the base wage if you pay
rnnre in fringe bene�ts such as by paying nr �9 basic plus $6 fringe benefits; as long as
you meet the total amaunt. The amount of the base wage that you may off-set with fringe
bene�ts is limited by certain IRS and FLSA requirements.
f. Overtime Overtime hours are defined as all hours worked on the contract in excess of
40 hour� in any work week. Overtime hours must be paid at no less than one and one-
half times the regular rate of basic pay plus the straight-time rate of any required fringe
benefits.
2-7
g. Deductions. You may make payroll deductions as permitted by DOL Regulatians 29 CFR
Part 3. These regulations prohibit the employer from requiring employees to "kick-back"
(i.e., give up) any of their earnings. Allowable deductions which do not require prior DOL
permission include employee obligations for income taxes, Social Security payments,
insurance premiums, retirement, savings accounts, and any other legally-permissible
deduction authorized by the employee. Deductions may also be made for payments on
judgments and other financial obligations legally imposed against the employee.
Referring, again, to our example above where the wage decisian requiring a$15 total
wage obligation ($10 basic wage plus $5 fringe benefits) was met by paying $9 base
wage plus $6 fringe benefits: Note that overtime rates must be based on one and one-half
times the basic rate as stated on the wage decision. In the above example, the employer
must pay for overtime: $15/hr ($9 basic +$6 fringe) plus $5 (one-half of $10, the wage
decision basic rate) for a total of $20 per hour.
h. Proaer designation of trade. You must select a work classification on the wage decision
for each worker based on the actual type of work he/she performed and you must pay each
worker no less than the wage rate on the wage decision for that classification regardless
of their level of skill. In other words, if someone is performing carpentry work on the
project, they must be paid no less than the wage rate on the wage decision for Carpenters
even if they aren't considered by you to be fully trained as a Carpenter. Remember, the
only people who can be paid less than the rate for their craft are apprentices and trainees
registered in approved programs,
Salit-classification. If you have employees that perform work in more than
one trade during a work week, you can pay the wage rates specified far each
classification in which work was performed only if you maintain accurate time
records showing the amount of time spent in each classi�cation of work. If you do
not maintain accurate time records, you must pay these employees the highest
wage rate of all of the classifications of work performed.
Site vf work, The "site of work" is where the Davis-Bacon wage rates apply. Usually,
this means the boundaries of the project. "Site of work" can also include other adjacent
or vi�#ually adjacent property used by a contractor or subcontractor in the construction of
the project, like a fabrication site that is dedicated exclusively, or nearly so, to the project.
:
SECTION II - REPORTING REQUIREMENTS
•i�' ► : '_ :� _ : _'•:
What information has to be reported on the payroli form? The weekly payrol) form doesn't
ask for any information that you don't already need to keep for wage payment and tax
purposes. For example, you need to know each employee's name; his or her work
classification (who is warking for you and what do they do?), the hours worked during the
week, his or her rate of pay, the gross amount earned (how much did they earn?), the
amounts of any deductions for taxes, etc., and the net amount paid (how much should
the paycheck be made out for?). No more information than you need to know in order to
manage your work crew and make certain they are paid properly. And, certainly, no more
information than you need to keep for IRS, Social Security and other tax and employment
purposes.
For many contractors, the Weekly Certified Payroll is the only Davis-Bacon paperwork
you need to submit(
� �
You are required to submit certified payrolls to illustrate and document that you have
complied with the prevailing wage requirements. The purpose of the contract administrator's
review of your payrolls is to verify your compliance. Clearer and complete payroll reports
will permit the contract administrator to complete reviews of your payroll reports quickly.
0
Proiect and contractor/subcontractor information Each payroll must identify the
contractor or subcontractor's name and address, the project name and number, and the
week ending date. Indicate the week dates in the spaces provided. Numbering payrolls
is optional but strongly recommended.
b. Emp�QYee information. Effective January 18, 2009, payrolls shall not report employee
addresses or full Social Security Numbers (SSNs). Instead, #he first payroll on which
each employee appears shall include the employee's name and an individually identifying
number, usually the last 4 digits of the employee's SSN. Afterward, the identifying number
does not need to be reported unless it is necessary to distinguish between employees,
e.g., if two employees have the same name.
Employers (prime contractors and subcontractors) must maintain the current address
and full SSN for each employee and must provide this information upon request to the
contracting agency or other authorized representative responsible for federal labor
standards compliance monitoring. Prime contractors may require a subcontractor(s) to
provide this information for the prime contractor's records. DOL has modified form WN-
347, Payroll, to accommodate these reporting requirements.
Wark classification. Each employee must be ctassified in accordance with the wage
decision based on the type of work they actually perform.
2-9
1. Aggrentices or trainees. The first payroll on which any apprentice or trainee
appears must be accompanied by a copy of that apprentice's or trainee's registration
in a registered or approved program. A copy of the portions of the registered or
approved program pertaining to the wage rates and ratios shall also accompany
the first payroll on which the first apprentice or trainee appears.
2. Split classi�cations. For an employee that worked in a split classification, make
a separate entry for each classification of work performed distributing the hours of
work to each classification, accordingly, and reflecting the rate of pay and gross
earnings for each classification. Deductions and net pay may be based upon the
total gross amount earned for all classifications.
d. Hours worked. The payroll should show ONLY the regular and overtime hours worked
on this project. Show both the daily and total weekly hours for each employee. If an
employee performs work at job sites other than the project for which the payroll is prepared,
those "other job" hours should not be reported on the payroll. In these cases, you should
list the employee's name, classification, hours for this project only, the rate of pay and
gross earnings for this project, and the gross earned for all projects. Deductions and net
pay may be based upon the employee's total earnings (for all projects) for the week.
e. Rate of �av_. Show the basic hourly rate of pay for each employee for this project. If
the wage decision includes a fringe benefit and you do not participate in approved fringe
benefit programs, add the fringe benefit rate to the basic hourly rate of pay. Also list the
overtime rate if overtime hours were worked.
1. Piece-work. For any piece-work employees, the employer must
compute an effective hourly rate for each employee each week based
upon the employee's piece-work earnings for that week. To compute
the effective hourly rate, divide the piece-wnrk earnings by the total
number of hours worked, including consideration for any overtime hours.
The effective hourly rate must be reflected on the certified payroll and this hourly
rate may be no less than the wage rate (including fringe benefits, if any) on the
wage decision for the classification of work performed. It does not matter that the
Pffective hourly rate changes from week-to-week, only khat the rate is no less than
the rate on the wage decision for the classification of work performed.
f�emember, the nvertime rate is computed at nne and ane-half times the basic rate of p�y
plus any fringe benefits. �or example, if the wage decision requires $10/hour basic plus
$5/hour fringe benefits, the overtime rate would be: ($10 x 1'/2) +$5 =$20/hour.
f. Grass wages earned, Show the gross amount of wages earned for work performed on
this project. Note: For employees with work hours and earnings on other projects, you
may show gross wages for this project over gross earnings all projects (for example,
$425.�0/$764.85) and base deductions and net pay on the "all projec4s° earnings.
2-10
g. Deductions. Show the amounts of any deductions from the gross earnings. "Othe�"
deductions should be identified (for exampie, Savings Account or Loan Repayment). Any
voluntary deduction (that is, not required by law or by an order of a proper authority)
must be authorized in writing by the employee or provided for in a collective bargaining
(union) agreement. A short note signed by the employee is all that is needed and should
accompany the first payroll on which the other deduction appears.
Only one employee authorization is needed for recurring (e.g., weekly) other deductions.
Written employee authorization is not required for income tax and Social Security
deductions.
h. Ne a Show the net amount of wages paid.
i. Statement of com�liance. The Statement of Compliance is the certification. It is
located on the reverse side of a standard payroll form (WH-347). Be sure to complete
the identifying information at the top, particularly if you are attaching the Statement of
Compliance to an alternate payroll form such as a computer payroll. Also, you must
check either 4(a) or 4(b) if the wage decision contains a fringe benefit. Checking 4(a)
indicates that you are paying required fringe benefits to approved plans or programs;
and 4(b) indicates that you are paying any required fringe benefit amounts directly to
the employee by adding the fringe benefit rate to the basic hourly rate of pay, If you are
paying a portion of the required fringe benefit to programs and the balance directly to the
employee, explain those differences in box 4(c).
Only one Statement of Compliance is required for each employer's weekly payroll no
matter how many pages are needed to report the emplayee data.
�janature. Make sure the payroll is signed with an original signature in ink. The payroll
must be signed by a principal of the firm (owner or officer such as the president, treasurer
or payroll administrator) or by an authorized agent (a person authorized by a principal
in writing to sign the payroll reports). Signature authorization (for persons other than a
principal) should be submitted with the first payroll signed by such �n agent. Signatures
in pencil; signature stamps; xerox, pdf and other facsimiles are not acceptable.
2-11
SECTION I11 - PAYROLL REVIEWS AND CORRECTIONS
r . •i�' • ► 5'E�
The contract administrator or other inspecto� may visit the project site and interview
some of the workers concerning their employment on the project. The DOL may also
independently conduct its own reviews (see 1-5). In addition, the contract administrator will
periodically review payrolls and related submissions, comparing the interview information
to the payrolls, to ensure that the labor standards requirements have been met. You will
be notified by the contract administrator if these reviews find any discrepancies or errors.
You will be given instructions about what steps must be taken to correct any problems.
a. On-site interviews. Every employer (contractor, subcontractor, etc.) must make their
employees available for interview at the job site with the contract administrator or other
agency representative, or HUD or DOL representative. The interviews are confidential
and the employee will be asked about the kind of work they perform and their rate of
pay. Every effort will be made to ensure that these interviews cause as little disruption
as possible to the on-going work. The interviewer will record the interview information,
usually on a form HUD-11, Record of Employee Interview, and forward the interviews to
the contract administrator.
b. Project gayroll reviews. The contract administrator will compare the information on
the interview forms to the corresponding payrolls to ensure that the workers are properly
listed on the payrolls for the days and hours worked on the job site, work classification
and rate of pay. The contract administrator will also review the payroll submissions to
make certain that the payrolls are complete and signed; that employees are paid no less
than the wage rate for the work classification shown; apprentice and trainee certifications
are submitted (where needed); employee or other authorizations for other deductions are
submitted (where needed); etc.
► ' 1 '� :• 'i•i �l� : � i► � •i' •l
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. Ir a�auate �ayr411 information, If an alternate payroll format used by an empfoyer (such
as some computer payrolls) is inadequ�te, e.g., does not contain all of the necessary
information that would be on the optional form WH-3�t7, the employer will be asked to
resubmit the payrolls on an acceptable form.
b. Missinq identitication numbers. If the first payroll on which an employee appears does
not contain the employee's individua�ly identifying number, the employer will be asked
to supply the missing information. This information can be reported on the next payroll
submitted by the employer if the employe� is still working on the project. Otherwise, the
emptoyer will be asked to submit a correction certified payroll.
?_-12
c. Incom Ip ete ga_yrolis. If the information on the payroll is not complete, for example, if
work classifications or rates of pay are missing, the employer wili be asked to send a
correction certified payroll.
d, Classifications. If the payrolls show work classifications that do not appear on the wage
decision, the empioyer will be asked to reclassify the empioyees in accordance with the
wage decision or the employer may request an additional classification and wage rate
(see 2-2). If reclassification results in underpayment (i.e., the wage rate reported on the
payroll is less than the rate required for the new classification), the employe� will be asked
to pay wage restitution to all affected reclassified employees. (see 2-8 for instructions
about wage restitution.)
e. Wage rates. If the wage rates on the payroll are less than the wage rates on the wage
decision for the work classifications reported, the employer will be asked to pay wage
restitution to all affected employees.
f. Apprentices and trainees. If a copy of the employee's registration or the approved
program ratio and wage schedule are not submitted with the first payroll on which an
apprentice or trainee appears, the smployer will be asked to submit a copy of each
apprentice's or trainee's registration and/or the approved program ratio and wage
schedule. If the ratio of apprentices or trainees to journeymen on the payroll is greater
than the ratio in the approved program, the employer will be asked to pay wage restitution
to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered
in an approved program must receive the journeyman's wage rate for the classification of
work they performed.
g. Overtime. If the employees did not receive at least time and one-half for any overtime
i�ours worked on the project, the following will occur:
If the project is subject to CWHSSA overtime requirements, the employer will be
asked to pay wage restitution for all overtime hours warked on the project. The
employer may also be liable to the United Sta#es for liquidated damages computed
at $10 per day per violation. Or,
2. If the project is not subject to CWHSSA, the employer will be notified of the possible
�I.SA overtime violations. Also, the contract administrator may refer the matter to
the DOL. for further review.
h. C�vm�utati�s. If the payroll computations (hours worked times rate of pay) or extensions
(deductions, net pay) shaw frequent errors, the employer will be asked to take greater
care. V�lage restitution may be required if underpayments resulted from the errors.
f�edu�tic,2,ns� If there are any "Other" deductions that are not identified, or if employee
authorization isn't provided, or if there is any unusual (very high, or large number)
deduction activity, the employer will be asked to identif�j the deductions, provide employee
authorization or explain unusual deductions, as necessary,
�-13
HUD does not enforce or attempt to provide advice on emplayer obligations to'make
deductions frorn empioyee earnings for taxes or Social Security. Nowever, HUD may
refer to the IRS or other responsible agency copies of certified payroli reports that show
wages paid in gross amounts (i.e., without tax deduction) for its review and appropriate
action.
j. Frinae benefits. If the wage decision contains fringe benefits but the payroll does not
indicate how fringe benefits were paid [neither 4(a) nor 4(b) is marked on the Statement
of ComplianceJ, the employer may be asked to submit correction certified payrolls and
will be required to pay wage restitution if underpayments occurred. However, if the basic
hourly rates for the employees are at least as much as the total wage rate on the wage
decision (basic hourly rate plus the fringe benefit rate), no correction is necessary.
k. Siqnature. If the payroll Statement of Compliance is not signed or is missing, the employer
will be asked to submit a signed Statement of Compliance for each payroll affected. If the
Statement of Compliance is signed by a person who is not a principle of the firm and that
person has nat been authorized by principle to sign, the employer will be asked to provide
an authorization or to resubmit the Statement(s) of Compliance bearing the signature of
a principle or other authorized signatory.
Qn-site interview com�arisons. If the comparison of on-site interviews to the payrolls
indicates any discrepancies (for example, the employee does not appear on the payroll
for the date of the interview), the employer will be asked to submit a correction certified
payroll report.
m. Correction certified �avroll. Any and all changes to data on a submitted payroll report
must be reported on a certified correction payroll. In no case will a payroll report be
returned to the prime contractor or employer for revision.
s , •► •: ��_;.'� t ► • �
Where underpayments of wages have occurred, the employer will be required to pay
wage restitution to the affected �mployees. Wage restitution must be paid promptly in the
full amounts due, less permissible �nd authorized deductions. All wages paid to laborers
and mechanics for work performed on the project, including wage restitution, must be
reported on a certified payrofl report.
1Votifi� ka ion to the Employer/Prime contractor. The contract administrator will natify the
employer and/or prime contractor in writing of any underpayments that are found during
payroll or other reviews. The contract administrator will describe the underpayments and
provide instructions forcomputing and documenting the restitution to be paid. The employer/
prime contractor is allowed 30 days to correct the underpayments. Note that the prime
contractor is responsible to the contract administrator for ensuring that restitution is paid. If
the employer is a subcontractor, the subcontractorwill usually make the computations and
restitution payments and furnish the required docurnentation through the prime contractor.
?_ -14
�
The contract administrator may communicate directiy with a subcontractor when the
underpayments are plainiy evident and the subcontractor is cooperative, It is best
to work through the prime contractor when the issues are complex, when there are
significant underpayments and/or the subcontractor is not cooperative. In ali cases,
the subcontractor must ensure that the prime contractor receives a copy of the required
corrective documentation.
b. Com�uting waqe restittation. Wage restitution is simply the difference between the wage
rate paid to each affected employee and the wage rate required on the wage decision
for atl hours worked where underpayments occurred. The difference in the wage rates
is called the adjustment rate. The adjustment rate times the number of hours involved
equals the gross amount of restitution due. You may also compute wage restitution by
calculating the total amount of Davis-Bacon wages earned and subtracting the total
amount of wages paid. The difference is the amount of back wages due.
c. Correction certified �ayrolls. The employer will be required to report the restitution
paid on a correction certified payroll. The correction payroll will reflect the period of time
for which restitution is due (for example, Payrolls #1 through #6; or a beginning date and
ending date). The correction payroll will list each employee to whom restitution is due and
their work classification; the total number of work hours involved (daily hours are usually
not applicable for wage restitution); the adjustment wage rate (the difference between
the required wage rate and the wage rate paid); the gross amount of restitution due;
deductions and the net amount actually paid. A properly signed Statement of Compliance
must accompany the correction payroll.
HUD no longer requires the signature of the employee on the correction payroll to evidence
employee receipt of restitution payment. In additinn, except in the most extraordinary
cases, HUD no longer requires employers to submit copies of restitution checks (ce�tified,
cashiers, canceled or other), or employee-signed receipts or waivers.
d. Review of correction CPR. The contract administrator will review the correction c,ertified
payroll to ensure that full restitution was paid. The prime cantractor shall be notified in
writing of any discrepancies and will be r�quired to make additional payments, if needed,
documented on a correction certified payroll within 30 days.
e. l)�fQund workers. Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be located. After wage
restitution has been paid to all of the workers who could be located, the employer must
submit a list of any workers who could not be found and paid (i.e., unfound workers)
providing (heir names, Social Security Numbers, last known addresses and the gross
amount due. In such cases, at the end of the project the prime contract�r will be required
2-15
to place in a deposit or escrow account an amount equal to the total gross amount of
restitution that could not be paid because the empioyee(s) could not be located. The
contract administrator wiil continue attempts to locate the unfound workers for 3 years
after the completion of the project. After 3 years, any amount remaining in the account for
unfound workers will be credited and/or forwarded by the contract administrator to HUD.
2-16
CMAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
�EVIEWS, �/ITHHOLC?ING, DEPOSITS AND ESCROW
ACCOUNTS, AND SAIVCTIONS
r, _ : � s ' • i 3r►'1�L�►�1�.IL�C�%��ITi'i:��I►�1i
3-1 INTRODUCTION.
Even in the best of circumstances, things can go wrong. in a Davis-Bacon context,
"things going wrong" usually means there's a difference of opinion or a dispute about
whether and to what extent underpayments have occurred. These disputes are usually
between the contract administrator and one or more employers (the prime contractor and/
or a subcontractor). The dispute may involve something simple such as an additional
classification request that is pending before the DOL; or something as significant as
investigative findings following a complaint of underpayment. This chapter discusses
some of what you may expect and what you can do to make your views known and to
lessen any delays in resolving the problem or issue.
• �ii IIE��3_ � ► •� :=•:. � ���;� �
As mentioned in the Introduction above, a dispute about labor standards and compliance
can arise for a number of reasons. The labor standards clauses in your contract and DOL
regulations provide for administrative review of issues where there is a difference of views
between the contract administrator and any employer. The most common circumstances
include:
a. Additianal classifications and waqe rates. Additional classification and wage rate
requests are sometimes denied by the DOL. An employer that is dissatis�ed with the denial
can request reconsideration by the DOL Wage and Hour Administrator. The employer
may continue to pay the wage rate, as requested, until a final decision is rendered on
the matter. When the final decision is known, the employer will be required to pay any
additional wages that may be necessary to satisfy the wage rate that is established.
Reconsidera ion, The DOI. normally identifies the reasons for denial in its
response to the request. Any interested person (for example, the contract
�dministrator, employer, representatives of the employees) may request
reconsideration of the decision on the additional classification request. The
request for reconsideration must be made in w�iting and must thoroughly
address the denial reasons identified by the DOL. Employer requests for
reconsideration should be made through the contract administrator but may
be made directly to the DOL. (See 2-2(d), and also DOL Regulations 29 CFR
1.8.) All requests initiated by or made through the contract administrator or HUD
must be submitted through the HUD Headquarters Office of �abor Relations.
3-1
2. Administrative Review Board. Any interested party may request a review of the
Administrator's decision on reconsideration by the DOL's Administrative Review
Board. DOL regulations 29 CFR Part 7 explain the procedures for such reviews.
(See also 29 CFR 1.9.)
b. Findings of undergayment. Compliance reviews and other follow-up enforcement
actions may result in findings of underpayment. The primary goal in every case and at
every step in this process is to reach agreements about who may have been underpaid
and how much wage restitution may be due and, of course, to promptly deliver restitution
to any underpaid workers. The contract administrator will usually work informally with you
to reach such agreements. You will have an opportunity to provide additional information
to the contract administrator that may explain apparent inconsistencies and/or resolve the
discrepancies.
If informal exchanges do not result in agreement, the final determination and schedule
of back wages due will be presented to you in writing and you will be permitted 30 days
in which to correct the underpayment(s) or to request a hearing on the matter before the
DOL. The request for hearing must be made in writing through the contract administrator
and must explain what �ndings are in dispute and the reasons. In such cases, HUD is
required to submit a report to DOL for review and further consideration. All requests for
DOL hearing must be submitted through the HUD Headquarters Office of Labor Relations.
1. DOL review. The DOL will review the contract administrator's report and the
arguments against the findings presented in the hearing request. The DOL may
affirm or modify the findings based upon the materials presented. You will be notified
in writing by the DOL of the results of its review. If DOL concludes that violations
have occurred, you will be given an opportunity to correct any underpayments or
to request a hearing before a DOL Administrative Law Judge (ALJ). (See DOL
Regulations 29 CFR 5.11 (b) and 29 CFR Part 6, Rules of Practice forAdministrative
Proceedings.)
2. Administrative Revi�w Bc�ard. Contractors and/or subcontractors may request a
review by the Administrative Review Board of the decision(s) rendered by the DO�
ALJ in the administrative hearing process. See DOL regulations 29 CFR Part 7 for
more information about this proceeding.
,�• �r
The cnntract administraiar shall cause withholding from payments due to the prime
contractor to ensure the payment of wages which are believed to be due and unpaid,
for example, if wage underpayments or other violations are not corrected within 30 days
after written notification to the prime contractor. DOL may also direct the withholding
of contract payments for alleged wage underpayments. �thholding is considered to
be serinus and is not taken unless warranted. If withholding is deemed necessary, you
will be notified in writing. Only the amounts needed to meet the contractor's (and/or
subcontractors') liability shall be withheld.
3-2
� � ������J�L�l���:Z�l�►�F�
In every case, we attempt to complete compliance actions and resolve any disputes
before the project is compieted and final payments are made. Sometimes, corrective
actions or disputes continue after compietion and provisions must be made to ensure
that funds are available to pay any wage restitution that is ultimately found due. In these
cases, we allow projects to proceed to final closing and final payments provided the prime
contractor deposits an amount equal to the potential liability for wage restitution and
liquidated damages, if necessary, in a special account. The deposit or escrow account is
controlled by the contract administrator. When a final decision is rendered, the contract
administrator makes disbursements from the account in accordance with the decision.
Deposit/escrow accounts are established for one or more of the following reasons:
Remember, the prime contractor is responsible and will be held liable for anywage restitution
that is due to any worker employed in the construction of the project, including workers
employed by subcontractors and any lower-tier subcontractors. See 1-4, Responsibility
of the Principal Contractor, and 2-8, Restitution for Underpayment of Wages.
a. Where the parties have agreed to amounts of wage restitution that are due but the
employer hasn't furnished evidence yet that all of the underpaid workers have received
their back wages, e.g., some of the workers have moved and could not be located. The
amount of the deposit is equal to the total gross amount of restitution due to workers lacking
payment evidence. As these workers are paid and proper documentation is provided
to the contract administrator, amounts corresponding to the documented payments are
returned to the depositor. Amounts for any workers who cannot be located are held in the
deposit/escrow account for three years and disposed as described in 2-8(� of this Guide.
b. Where underpayments are suspected or alleged and an investigation has not yet
been completed. The deposit is equal to the amount ofwage restitution and any liquidated
damages, if applicable, that are estimated to be due. If the final determination of wages
due is less than the amount estimated and placed in the escrow account, the escrow will
be reduced to the final amount and the difference will be returned to the depositor.
If the parties agree to the investigative findings, the amounts due to the workers will be
paid by the employer. As these workers are paid and proper documentation is provided to
the contract administrator, the gross amounts corresponding to the documented payments
are returned to the depositdr.
If the employer is unable to make the payments to the workers, e.g., lacks the
funds necessary, the contract administrator may make disbursements directly to
the workers in the net amounts calculated by the employer. The amounts withheld
frorn the workers for tax deduction will be returned to the employer as payments to
workers are made. The employer shall be resp�nsible for reporting and transmitting
withholdings to the appropriate agencies.
3-3
2. If the employer is not cooperating in the resolution, the contract administrator shall
make disbursements to the workers in accordance with the schedule of wages
due. Amounts for unfound workers will be retained as described above (See 2-8(�
and 3-4(a)).
If the parties do not agree and an administrative hearing is requested, the escrow will be
maintained as explained in 3-4(c), below.
Remember, ifyou haveanyquestionsorneed assistanceconcerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
c. Where the parties are waiting for the outcome of an administrative hearing that has
been or will be requested contesting a final determination of wages due. The deposit
shall be equal to the amount of wage restitution and liquidated damages, if applicable,
that have been determined due. Once a final decision is rendered, disbursements from
the escrow account are made in accordance with the decision.
� �i� � '� _► L�1►E�
Contractors and/or subcontractors that violate the labor standards provisions may face
administrative sanctions imposed by NUD and/or DOL.
a. DOL debarment. Contractors and/or subcontractors that are found by the Secretary
of Labor to be in aggravated or willful violation of the labor standards provisions of the
Davis-Bacon and Related Acts (DBRA) will be ineligible (debarred) to participate in any
DBRA or Davis-Bacon Act contracts for up to 3 years. Debarment includes the contractor
or subcontractor and any firm, corporation, partnership or association in which the
contractor or subcontractor has a substantial interest. Debarment proceedings can be
recommended by the contract administrator or can be initiated by the DOL. Debarment
proceedings are described in DOL regulations 29 CFR 5.12.
b. NUD sanc ity�ns, HUD sanctions may include Limited Denials of Participation (LDPs),
debarments and suspensions.
1. �imited Denial �f P�rticiaati�n. HUD may issue to the employer a limited denial
of participation (LDP) which prohibits the employer from further participation in
HUD programs for a period up to one year. The LDP is usually effective for the
HUD program in which the violation occurred and for the geographic jurisdiction of
the issuing HUD ��ce. HUD regulations concerning LDP's are found at 24 CFR
24.700-24.714.
3-4
2. Debarment and susaensions. In certain circumstances, NUD may initiate its own
debarment or suspension proceedings against a contractor and/or subcontractor
in connection with improper actions regarding Davis-Bacon obligations. For
example, HUD may initiate debarment where a contractor has been convicted for
making false statements (such as false statements on certified payrolls or other
prevailing wage certifications) or may initiate suspension where a contractor has
been indicted for making false statements. HUD regulations concerning debarment
and suspension are found at 24 CFR Part 24.
• � � •► • ;. � ': :• '•:
-- -
Contractors and/or subcontractors that are found to have willfully falsified payroll reports
(Statements of Compliance), including correction certified payroll reports, may be subject
to civil or criminal prosecution. Penalties may be imposed of $1,000 and/or one year in
prison for each false statement (see Section 1001 of Title 18 and Section 231 of Title 31
of the United States Code).
Remember, ifyou haveanyquestionsorneed assistanceconcerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
3-5
�:. : • ►��(►T �"�_\ �(NI+'3'l� : • �
` CDBG ;- , Community Development Block Grant :.
CFR - Code of Federal Regulations
� �. � CPR�- � �� ��Certified.Payroil Report ' � �
CWHSSA - Contract Work Hours and Safety Standards Act
`DBA- Dauis=Bacan Act ;
DBRA - Davis-Bacon and Related Acts
DOL - Department of Labor `
FHA - Federal Housing Administration
FLSA- Fair Labor Standards Act
HUD - Housing and Urban Development (Department o�
IHA - Indian Housing Authority
LCA - Local Contracting Agency
LDP - Limited Denial of Participation
O/T -
PHA-
S/T -
SAC -
TDHE-
§-
��
A-1
Overtime
Public Housing Agency
5traight-time
State Apprenticeship Council/Agency
Tribally-Designated Housing Entity
Section
Paragraph
r .1 . i ► � ,� � � 1 i -
HUD Office of Labor Relations:
www.hud.gov/offices/olr
NUD Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
HUDCIips (HUD Forms and Publications):
www. hud.gov/offices/adm/hudclips/index.cfm
DOL Davis-Bacon and Related Acts Homepage:
http://www.dol.gov/whd/contracts/dbra.htm
DOL Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
Davis-Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www.dol.gov/whd/programs/dbra/forms.htm
*Web addresses active as of January 2012
A-2
U.S. Department of Housing
Project Wage Rate �heet and Urban Development
Office of Labor Relations
Project Name: Wage Decision NumberlModification Number:
Project Number: ProJect County:
Basic ' TotaM Laborers :
Work �;' Frtnge
Houriy Houriy = . Fringe $
Cla�sification� ��� , " �� Benefits�, � � �� � �: -� �
Rate (8HR) Wage Rate Benefits
Bricklayers $ Group # 8HR° Totai Wage
Carpenters $ $
Cement Masons $ $
Drywall Hangers $ $
Electricians $ $
iron Workers $ $
Painters $ Ope�atora Fringe Beneftta: $
Plumbers $ Group # BHR Totai Wage
Roofers $ $
Sheet Metai Workers $ $
Soft Floor Workers $ $
Tapers $ $
Tile Setters $ T�uck Drtvare Fringe eunntits: $
Other Classificatlons` Group # BHR Totai Wage
$
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Aclditianat Ctassifications (HUD Form �230-A)
Wark ��s�� Frin e 7otat Da#e of Date of
Classificatfon Houriy 8enefits- Nourly HUD Submissiarr DOL
Rate (BNR) Wage Rate ta DOL Approval
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U.S. Department of Housing and Urban Development
Office of Departmental Operations and Coordination
Washington, DC 20410
Email: www.OfficeofLaborRelations�hud.gov
Labor Relations Desk Guide
LR01.DG
r�µ�NroF
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:y * ,f� I * a �
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��N pEVE�'V OpPORTUNITY
EYHIBIT "H-5"
sT��a�r oF coNSTauc'TION FOR1�1
Clty of �'ort Worth
Community Development Block Grant (CDBG) Funded
Construction Pro jects
START O�' CONSTRUCTION
(Date)
Project Name:
Location;
Projc,�ct Nutnber:
U.S. Department of Labor Wage Decision:
This is to inform you that
(N�ime of Company)
c� f
(Address)
, ,
(City/Town)
, has stlrted work on the above referenced project covered by our
,
(State) (Zip)
contract with yuu, as of
(Date)
[tespecttully yours,
(�larne of Company)
E3 y
(Signature)
(Title)
EYHIBIT `�H-6"
CONSTRUC'TION COI�IPLETE FORM
" ' City of �'ort Worth
Community Development Btock Grunt (CDBG) Funded
Cunstruction Project�
CONSTRUCTION COIViPLETE
D�te:
Pmject Name:
Project T,ocation:
l'roject Niimber:
U.S. Department of LAbor Wage Decision:
This to inform you that the:
of
(Address)
(State) (Zip)
by our contract with you, as of _
(Name of Company)
(City/"t'o�vn)
has terminated work on the above referenced project covered
Respectfully yours,
�y
(Name of Company)
(si�nature)
("t'itle}
EYHIBIT "H-7"
CCO STATEi�tENT
STATENIENT OF POLICY ON
EQUAL EMPLOYMENT OPPORTUNITY
It will be the policy af this hrm to not discriminate agttinst any �pplictint for employment, ar any
employee, because of race, creed, color, age, sex, or natural origin. This firm will insure thnt this
policy is continually enforced with regard to employment, promotion, upgrading, demotion, transfer,
recruitment, and recruitment �uivertising, loy off and termination, compensation, training, and
working conditions. We will make it understood by all with whom we deal, and in all our
employment apportunity announcements that the foreboing is our policy. All applicants and
employees will be judged solely on the basis of their skill, devotion loyalty, reliability and integrity.
Company Name
Si�nature
Date
CYHIBIT "H-8"
P��YROLL DCDUCTION AUTHORIZATION FORNt
Pavroll Deduction Authorization
This is the authorization to the
to deduct from my paycheck $
is for item number:
REPAYMENT OF:
1.
2.
3.
4.
5.
6.
Loan
Retirement
Advance on Wages
Savings
Savings Bonds
Uniforms
*This deduction is to be made:
CHECK APPROPRIATE BOX
Employee's Signature
Printed �r Typed Name:
Project Name and Number:
7.
8.
9.
10.
11.
12.
Credit Union
Profit Sharing
Donations to Agencies
Insurance Premiums
Union Dues
❑ One time only
❑ Weekiy
❑ Bi-weekly
� For weeks
�
Date:
* This
k PAYRUiL UFOI;C"lIUN Al. �IH)NIU� fION lXX'
EYHIBIT "H-9"
OFFICER ��PPOINTi4IENT FORIVI
U. S. Department af Housing and Urbun D�velopment
CER'I'IFICATE FROM CONTRACTOR APPOINTING OF�ICER OR ENiPLOYEE
'1'O SUPERVISE PAYMENT OF ENiPLOYEES
in connection with construction of the above-mentioned Project, and that (t} (�ve} have appointed
�vhose si�nuhi�e appenrs b�;law to sunervise the p�tvmenk of (m our) empl� e�s beg' ing_
, 20�; thnt he/she is in a position to have futl knowledge of the Facts
set farth in the payroll documents and in the statement ofcompliance required by the so-called
Kick-Bfick Stfltute which he/she is to erecute with (my) (our) tull authority and approva! until
such time as (I) (we) submit to
a new certificate appointing some other person for the purposes hereinabove stated.
Attest (ifrequired):
(Signature)
:
(Title)
_ _------------------------- --------------------------
(Title)
NOTE: This certific:ate must be �xecuted by an authorirec� office,�r of a corporation, by a member
of a partnership, or the sole owner and sha() be executtYci prior to anJ be �ubmitteci with ttte hrst
�a�roll. Should the appointce be chan�;ee1, a r�ew certificate must accc7mpany the tirst payroll for
wr�ich the new appointee executes a statement of compliance required by the Kick-Back Statut�.
DAUDAO- f 3�0.3/2
(6-79)
(I) (We) hereby certify that (I am) (we ��re) (the prime contractor) (a subcontructor) for
EYHIBIT "I"
DCED OF TRUS'I' FORiti1
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER
DEED OF TRUST
Terms
Date:
Grantor
20
Tarrant County Housing Partnership, Inc.
a Texas non-profit corporation.
Grantor's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76107
Trustee: Vicki S. Ganslce or Leann Guzman
Trustee's Mailing Address:
C/O City Attorney's Office
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Lender's Mailing Address:
C/O Housing Department
1000 Throcicmorton St.
Fort Worth, Tarrant County, TX 76102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq.
(the "HOME Program") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Obligation
Note
Borrower: Tarrant County Housing Partnership, Inc., a Texas non-profit
corporation
Date: , 20_
Original principal amount: $117,000.00
DEED OF TRUST — TCHP Page 1
CSC No. G24714 Rev. 5-17-13
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Maturity Date: , 20_
Property (including any improvements):
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive rights, whether of record or not; all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of the Obligation, Grantor conveys the Property
to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other
amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender
will release it at Grantor's expense.
Clauses and Covenants
A. Grantor's Obligations
Grantor agrees to-
1
F�
keep the Property in good repair and condition;
pay all taxes and assessments on the Property before delinquency and provide proof
of payment of same upon request by Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a form acceptable to Lender, an insurance policy that—
�a
Q
covers all improvements for their full insurable value as determined when
the policy is issued and renewed, unless Lender approves a smaller amount
in writing;
contains an 80 percent coinsurance clause;
DEED OF TRUST — TCHP Page 2
CSC No. C-24714 Rev. 5-17-13
c. provides all-risk coverage;
d. protects Lender with a standard mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender may reasonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. iceep any buildings occupied as required by the insurance policy;
9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior
lien notes and abide by or cause to be abided by all prior lien instruments; and,
10. notify Lender of any change of address.
B. Lender's Rights
1. Lender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
2. If the proceeds of the Obligation are used to pay any debt secured by prior liens,
Lender is subrogated to all the rights and liens of the holders of any debt so paid.
3. Lender may apply any proceeds received under the insurance policy either to reduce
the Obligation or to repair or replace damaged or destroyed improvements covered by the policy.
If the Property is Grantor's primary residence and Lender reasonably determines that repairs to
the improvements are economically feasible, Lender will malce the insurance proceeds available
to Grantor for repairs.
4. Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the Obligation or this
Deed of Trust may, at Lender's discretion, be applied first to amounts payable under this Deed of
Trust and then to amounts due and payable to Lender with respect to the Obligation, to be applied
to late charges, principal, or interest in the order Lender in its discretion determines.
5. If Grantor fails to perform any of Grantor's obligations, Lender may perform those
obligations and be reimbursed by Grantor on demand for any amounts so paid, including
attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in the
DEED OF TRUST — TCHP Page 3
CSC No. C-24714 Rev. 5-17-13
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may—
a. declare the unpaid principal balance and earned interest on the Obligation
immediately due;
b. direct Trustee to foreclose this lien, in which case Lender or Lender's
agent will cause notice of the foreclosure sale to be given as provided by
the Texas Property Code as then in effect; and
c. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the Obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default.
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting from damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender or its agents may malce reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection giving
reasonable cause for the inspection.
C. Trustee's Rights and Duties
If directed by Lender to foreclose this lien, Trustee will—
l. either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect;
2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to
Conveyance and Warranty and without representation or warranty, express or implied, by
Trustee;
3. from the proceeds of the sale, pay, in this order—
a. expenses of foreclosure, including a reasonable commission to Trustee;
DEED OF TRUST — TCHP Page 4
CSC No. G24714 Rev. 5-17-13
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
c. any amounts required by law to be paid before payment to Grantor; and
d. to Grantor, any balance; and
4. be indemniiied, held harmless, and defended by Lender against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created
by this deed of trust, which includes all court and other costs, including attorney's fees, incurred
by Trustee in defense of any action or proceeding taken against Trustee in that capacity.
D. General Provisions
l. If any of the Property is sold under this Deed of Trust, Grantor must immediately
surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any trustee's deed conveying the Property will be presumed to be true.
3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any
other remedy will not constitute an election of remedies.
4. This lien will remain superior to liens later created even if the time of payment of
all or part of the Obligation is extended or part of the Property is released.
5. If any portion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. Grantor assigns to Lender all amounts payable to or received by Grantor from
condemnation of all or part of the Property, from private sale in lieu of condemnation, and from
damages caused by public worlcs or construction on or near the Property. After deducting any
expenses incurred, including attorney's fees and court and other costs, Lender will either release
any remaining amounts to Grantor or apply such amounts to reduce the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and receipts from the Property. Grantor warrants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of
Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and
DEED OF TRUST — TCHP Page 5
CSC No. G24714 Rev. 5-17-13
performance of this Deed of Trust, but if the rent and other income and receipts exceed the
amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess. If
Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender may
terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent
the Property and collect all rent and other income and receipts. Lender neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the Property, Lender may
exercise Lender's rights and remedies under this paragraph without taking possession of the
Property. Lender will apply all rent and other income and receipts collected under this paragraph
first to expenses incurred in exercising Lender's rights and remedies and then to Grantor's
obligations with respect to the Obligation and this Deed of Trust in the order determined by
Lender. Lender is not required to act under this paragraph, and acting under this paragraph does
not waive any of Lender's other rights or remedies. If Grantor becomes a voluntary or
involuntary debtor in banlcruptcy, Lender's filing a proof of claim in banlcruptcy will be deemed
equivalent to the appointment of a receiver under Texas law.
8. Interest on the debt secured by this Deed of Trust will not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received
under law. Any interest in excess of that maximum amount will 'be credited on the principal of
the debt or, if that has been paid, refunded. On any acceleration or required or permitted
prepayment, any such excess will be canceled automatically as of the acceleration or prepayment
or, if already paid, credited on the principal of the debt or, if the principal of the debt has been
paid, refunded. This provision overrides any conflicting provisions in this and all other
instruments concerning the debt.
9. In no event may this Deed of Trust secure payment of any debt that may not
lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law.
10. When the context requires, singular nouns and pronouns include the plural.
11. The term Note includes all extensions, modiiications, and renewals of the Note
and all amounts secured by this Deed of Trust.
12. This Deed of Trust binds, benefits, and may be enforced by the successors in
interest of all parties.
13. If Grantor and Borrower are not the same person, the term Grantor includes
Borrower.
14. Grantor and each surety, endorser, and guarantor of the Obligation waive all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice
of acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
15. Grantor agrees to pay reasonable attorney's fees, trustee's fees, and court and
DEED OF TRUST — TCHP Page 6
CSC No. G24714 Rev. 5-17-13
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
unenforceable, the validity or enforceability of any other provision will not be affected:
17. The term Lender includes any mortgage servicer for Lender.
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property; the debt is secured both by the Deed of Trust and by a vendor's lien on
the Property, which is expressly retained in a deed to Grantor of even date. This
Deed of Trust does not waive the vendor's lien, and the two liens and the rights
created by this Deed of Trust are cumulative. Lender may elect to enforce either
of the liens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the transferee will acquire title to all
insurance policies on the Property including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and involce any remedies provided in this Deed of Trust for default if Grantor transfers any of the
Property to a person who is not a permitted transferee without Lender's prior written consent.
"Permitted transferee" means any other person controlling, controlled by, or under common
controi with Grantor. Lender shall not e�ercise this option if federal law as of the date of this
Deed of Trust prohibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTIONS:
The Note is the Note required in City Secretary Contract No. between Grantor
and Lender dated , 20 and has been executed and delivered in accordance
with that contract (the "Contract"). The funds advanced by Lender are HOME funds and
the Contract requires that the residential housing located on the Property and constructed
with a portion of the HOME funds must qualify and remain affordable housing in
accordance with the HOME Program and the HOME Regulations for a specified time
period as more particularly described in the Contract (the "Affordability Period"). The
loan evidenced by the Note and secured by this Deed of Trust will be in default and the
Principal Amount and any other sums due thereunder may be declared immediately
payable if all of the residential housing located on the Property is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
This Deed of Trust has also been executed and delivered pursuant to the terms of the
DEED OF TRUST — TCHP Page 7
CSC No. G24714 Rev. 5-17-13
Contract. Grantor agrees to perform each and every obligation set forth therein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contract or the HOME Program or HOME Regulations
shall be deemed a default in the terms of the Note and Lender may declare the debt
secured by this Deed of Trust immediately payable and involce any remedies provided
herein for default.
22. Provided that Grantor is not in default under any of the terms and conditions of
this Deed of Trust, the Note, or the Contract, and provided no event has occurred that, with
notice, passage of time, or both, will become an event of default, Grantor is entitled to partial
releases of the lien of this Deed of Trust.
23. THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL
AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
STATE OF TEXAS
COUNTY OF TARRANT
This instrument was acicnowledged before me on , 20_ by Donna
VanNess, the President of Tarrant County Housing Partnership, Inc., a Texas non-profit
corporation, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Fort Worth
C/O Housing and Economic Development Department
1000 Throcicmorton St.
Fort Worth, Tarrant County, TX 76102
DEED OF TRUST — TCHP Page 8
CSC No. G24714 Rev. 5-17-13
EXHIBIT "A"
1246 E. Jefferson Avenue; Lot 12, Blocic 47, Highland Parlc Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat
recorded in Volume , Page _, Plat Records, Tarrant County, Texas.
DEED OF TRUST — TCHP Page 9
CSC No. G24714 Rev. 5-1'7-13
PROMISSORY NOTE
Date:
20
Borrower: Tarrant County Housing Partnership, Inc.
a Texas non-profit corporation
Borrower's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76107
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Place for Payment:
C/O Director of Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
or at any other place that Lender may designate in writing
Principal Amount: ONE HLTNDRED SEVENTEEN THOUSAND DOLLARS AND /100
DOLLARS ($117,000.00)
Loan Authority:
The loan evidenced by this Note is being made pursuant to the HOME Investment
Partnerships Program authorized under Title II of the Cranston-Gonzalez Nationai
Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. ("HOME Program")
and the HOME Investment Partnerships Program Final Rule, as amended, 24 CFR Part
92 et seq. (the "HOME Regulations") with HOME funds.
Annual Interest Rate: Zero Percent (0%)
Maturity Date: , 20_
Annual Interest Rate on Matured, Unpaid Amounts: Six Percent (6%)
Terms of Payment (principal and interest):
This Note is the Note required in City Secretary Contract No. between
Borrower and Lender dated , 20 and has been executed and delivered in
accordance with that contract (the "Contract"). The funds advanced by Lender are
HOME funds and the Contract requires that the residential housing located on the
Property and constructed with a portion of the HOME funds must qualify and remain
affordable housing in accordance with the HOME Program and the HOME Regulations
for a specified time period as more particularly described in the Contract (the
"Affordability Period"). The loan evidenced by this Note will be in default and the
Principal Amount and any other sums due hereunder may be declared immediately
payable if all of the residential housing located on the Property is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
PROMISSORY NOTE — TCHP Page 1
CSC No. rev. OS-17-13
The Principal Amount is due and payable on , 20_ and any interest is due
and payabie at maturity. Payments will be applied first to accrued interest and the
remainder to reduction of the Principal Amount.
Security for Payment:
This Note is secured by a Deed of Trust of even date from Borrower to Vicici S. Ganslce
or Leann Guzman, Trustee, both of which cover the following real property:
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Other Security for Payment:
Other real property acquired by Borrower pursuant to the terms of the Contract to
construct a total of one (1) residential home for sale to an eligible low-income
homebuyer.
Borrower promises to pay to the order of Lender the Principal Amount. This Note is
payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts
are due by the Maturity Date. After maturity, Borrower promises to pay any unpaid principal
balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts.
If Borrower defaults in the payment of this Note or in the performance of its obligations
under the Contract or the HOME Program or the HOME Regulations or any other obligation in
any instrument securing or collateral to this Note, Lender may declare the unpaid principal
balance, earned interest, and any other amounts owed on the Note immediately due. Borrower
and each surety, endorser, and guarantor waive all demand for payment, presentation for
payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest,
and notice of protest, to the extent permitted by law.
Borrower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. These expenses will
bear interest from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts.
Borrower will pay Lender these expenses and interest on demand at the Place for Payment.
These expenses and interest will become part of the debt evidenced by the Note and will be
secured by any security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the residential housing located on the Property and any other real property
acquired by Borrower pursuant to the terms of the Contract and constructed with a portion of the
HOME funds qualifies and remains affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Contract.
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of nonusurious interest that may be contracted for, talcen, reserved, charged, or received under
law. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principal Amount has been paid, refunded. On any acceleration or required or permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if the excess interest has already been paid, credited on the Principal Amount or,
PROMISSORY NOTE — TCHP Page 2
CSC No. rev. OS-17-13
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this Note and all other instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note. When the
context requires, singular nouns and pronouns include the plural.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
PROMISSORY NOTE — TCHP Page 3
CSC No. rev. OS-17-13
1246 E. Jefferson Avenue; Lot 12, Blocic 47, Highland Parlc Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat
recorded in Volume , Page _, Plat Records, Tarrant County, Texas.
PROMISSORY NOTE — TCHP Page 4
CSC No. rev. OS-17-13
EYHIBIT "J"
ENVIRONMENTAL 1VIITIGATION ACTION
NOT APPLICAFiLE
EYHIBtT "I{"
SECTION 3 REPORTING REQUIRE�[ENTS
EXHIBIT "K"
Section 3 Summary Report
Economic Opportunities for
Low — and Very Low-Income Persons
U.S. Deparlment of Housing
and Urban Development
Oftice of Fair Housing
And Equal Opportunity
OMB Approval No: 2529-0043
(exp. 11/30/2010)
Section back of page for Public Reporting Burden slatement
HUD Field Office:
7. Recipient Name & Address: (sUeet, dry, slate, zip) 2. Federel Idontificatlon: (grant no.) 3. Total Amount of Award:
4. Contact Person 5. Phone: QnGude area code)
6. length ot Grant: 7. Reporting Period:
8. Dato Report Submitted: 9. Program Code: (Use separate sheet 10. Program Name:
!or each program code)
Part I: Em lo ment and Tralnin '* Columns B, C and F are mandato fields. Include New Hires in E 8F
A B C D E F
Number of Number of New % of Aggrogate Number % of Total Staff Hours Number of Section 3
Job Cate9ory New Hires Nires that are of Slaff Hours of New Hires for Secdon 3 Emp�oyees Trainees
Sec. 3 Residents lhat are Sec. 3 Residents and Treiness
Professionals
Technicians
Office/Clerical
Construction by Trade (List)
Trade
Trade
Trade
Trade
Trade
Other List
Total
' Program Codes 3= PubliGlndian Housing 4= Homeless Assislance
1= FlexiWe Subsidy A= Uevelopmant, 5= NOME
2= Section 202/811 B= Operation 6= HOME Stata Administered
C= Maiemization 7= CDBG Fntif�emont
Page I of 2
8 = CDBG Slate Administered
9 = Other CD programs
10 = O�her Housing Programs
fonn HU080002 (612601)
f2e( 24 CFR 135
Part II: Contracts Awarded
1. Construction Contracls:
A. Total dollar amount of all contracts awarded on the project
B. Total doilar amount of contracts awarded to Section 3 businesses
C. Percentage of the total dollar amount that was awarded to SecGon 3 businesses
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Tolal dollar amount aIl nornconstructlon contracts awarded on the projecVacfivity
E3. Total dollar amount of non-construction contracts awarded to Section 3 businesses
C. Percentage of the total doilar amount thatwas awarded to Section 3 businesses
D. Total number of Section 3 businesses receiving non-conslruction contracts
Part ill: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs, to the greatest extent feasible, toward low-and very low-income persons, particularly those who
are recipients of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising rnedia, signs prominently displayed at the project site,
contracts with the community organizaiions and public or private agencies operating within the metropolitan area (or
nonmetropolitan county) in which lhe Section 3 covered program or project is located, or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definiiion of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in lhe metropolitan area in which the Section 3 covered project is located.
Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the coileclion of information.
This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, mandates that the Department ensures that
employment and other economic opportunities generated by its housing and cornmunity developrnent assistance programs are directed
toward low- and very-low income persons, pariicularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information wili be used by lhe Department to rnonitor program recipients' compliance with Section 3, to
assess the resuits of the Department's efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipients as self-moniioring tool. The data is entered into a database and will be analyzed and disfributed. The collection of information
involves recipients receiving Federal financiai assistance for housing and community development programs covered by Section 3. The
information will be coilected a�nually to assist HUD in meeting its reporiing requirements under Section 808(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying
information is not induded.
Paga 2 of 2 Ponn HUD 60002 (t tY2010)
Ro1 24 Cf=R 135
Form HUD-G0002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons.
Instructlona: This form is to be used io report annual
accomplishments regarding employment and other economic
opportunities provided to low- and very low-income persons under
Section 3 of the Housing and Urban Development Act ot 1968. The
Section 3 regulaUons appiy to any publlc and Ind/an housing
programs that receive: (1) davelopment assistance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Section 9 of the U.S. Housing Act of 1937; or (3)
modernization grants pursuant to Section 14 of the U.S. Housing Act
of 1937 and to recipienta of housing and community development
assistance In excesa of;200,000 expended for: (1) housing
rehabilitatfon (including reduction and abatement of lead-based paint
hazards); (2) housing construction; or (3) olher p�blic construction
projects; and to contracts and subcontracts in excess of $100,000
awarded in connection wifh the Sectlon-3-covered activiry.
Form NUD-60002 has ihree parts, which are to be completed for
all programs covered by Section 3. Part I relates to employment
and training. The recipient has the option to determine numerical
employmenUtraining goals either on the basis of lhe number of hours
worked by new hires (columns B, D, E and F). Part II of the form
relates to contracHng, and Part III summarizes recipients' eNorts to
comply with Section 3.
Recipients or contractors subject to Section 3 requirements must
maintain appropriate documentation to eslablish that HUD flnancial
assistance for housing and community development programs were
directed toward low- and very low-income parsons.' A recipient of
Section 3 covered assistance shall submit one copy of lhis report to
HUD Headquarters, Office of Fair Housing and Equal Opportunity.
Where the program providing assistance requires an annual
performance report, this Section 3 report is to be submiited at the
same time the program performance report is submitted. Where an
annual performance report is not required, lhis Section 3 report is to be
submitted by January 10 and, if the project ends before December 31,
within 10 days of project completion. Only Prlme Reclplenfs aie
required to report to HUD. The report must include
accompllshments o/ all iecJplents and tholr SecHon 3 covered
confractors and subcontracrors.
HUD Field OHice: Enter the Field Office name .
1. Recipient: Enter the �ame and address of the recipient
submitting this report.
2. Federal Identitication: Enter the number that appears on the
award form (wilh dashes). The award may be a grant,
cooperative agreement or contract.
3. Dollar Amount of Award: Enter the dollar amount, rounded lo the
nearest dollar, received by the recipient.
4& 5. Contact Person/Phone: Enter the name and telephone number
of the person wilh knowledge of the award and the recipienPs
implementation of Section 3.
6. Reporting Period: indicate the time period (months and year)
this report covers.
7. Date Report Submitted: Enter ihe appropriate date.
Program Code: Enter the appropriate program code as listed at
the bottom of the page.
Program Name: Enter tha name of HUD Program corresponding
with lhe "Program Code" In number 8.
Part 1: Employment and Tral�ing Opportunttlos
Column A: Contains various job categories. Professionais are
de(ined as people who have special knowledge of an occupation (i.e.
supervisors, architects, surveyors, plan�ers, and wmputer
progremmers). For construciion positions, list each trade and provide
data in columns B through F(or each trade where persons were
employed. The category of "Other inciudes occupations such as
service workers.
Column B: (Mandatory Fieid) Enter the number of new hires for
each category of worlcers identified in Column A in connection with
this award. New hire refers to a person who is not on the contractors
or recipienCs payroll for employment at the time of selection for the
Section 3 covered award or at the time of receipt of Section 3 covered
assistance.
Column C: (Mandatory Fleld) Enter the number of Section 3 new
hires for each category of workers identified in Column A in
connection wilh this award. Section 3 new hire refers to a Section 3
resident who is not on the contractors or recipienPs payroll for
employment at the iime of selection for the Section 3 covered award or
at the time of receipt of Section 3 covered assistance.
Column D: Enter the percentage of all the staff hours of new hires
(Section 3 residents) in connection with this award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 employees and trainees (including new hires) connected
with lhis award. include staff hours for part-time and full-time
positions.
Column P: (Mandatory Field) Enter the number of Section 3
residents that were trained in connection with this award.
Part II: Contract Opportunities
Block 1: Construction Contracts
Item A: Enter the total doilar amount of all contracts awarded on the
project/progrem.
Item B: Enter lhe total dollar amount of contracts connected with lhis
projecUprogram that were awarded to Section 3 businesses.
Item C: Enter the percentage of the totai doliar amount of contracts
connected with this projecUprogram awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Block 2: Non-Construction Confracts
Itom A: Enter the total dollar amount of all contracts awarded on the
project/program.
item B: Enter the total doliar amount of contracts connecled with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total doliar amount of contracts
connected wilh this projecVprogram awarded to Section 3 businesses.
Itom D: Enter the number of Sectio� 3 businesses receiving awards.
Part ill: Summary of EHorts — Self -expianatory
Submit one (1) copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity, at the same time tha
periormance report is submitted to lhe program otfice. The Section 3
report is submitted by January 10. Include only contracls executed
during the period specified in item 0. PHAs/1HAs are to report all
contracts/su bcontracts.
' The terms "low-income persons" and very low-income persons" have
the same meanings given the terms in section 3(b) (2) of Ihe United
States Housing Act of 1937. Low-Income persons mean families
(including singie persons) whose incomes do not exceed 80 percent of
lho median income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that
The Secrelary may establish income ceilings higher or lower than 80 percent
of the median for the area on the basis of the Secretary's tindings such that
variations are necessary because of prevailing Ievels of consUuction costs
or unusually high- or low-income families. Very low-Income peisons mean
low-income families (including singie persons) whose incomes do not
exceed 50 percent of the median family income area, as determined by the
Secretary with adjustments or smaller and larger families, except that Ihe
Secretary may establish income ceilings higher or lower than 50 percent of
the median for the area on the basis of the Secretary's findings that such
varialions are necessary because of unusually high or low family incomes.
Paye i lorm HUD 60002 (11/2010)
Re12A CFR 135
M&C - Council Agenda
City of Fort Worth, Texas
Mayor and Council Communication
�.
COUNCIL ACTIGIN: Approued on 3/27/2012 `
DATE: Tuesday, March 27, 2012 REFERENCE NO.: C-25531
LOG NAME: 17TCHP HILLSIDE\MORNINGSIDE 10
SUBJECT:
Authorize Expenditure in the Amount of $1,115,000.00 of HOME Investment Partnerships Program .
Grant Funds to Tarrant County Housing Partnership, Inc., for the Development of Ten Single Family
Houses in the Hillside-Morningside Neighborhood, Authorize Execution of Conditional Commitments
and Contracts (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize substitution of funding years in order to meet commitment, disbursement and expenditure
deadlines for grant funds from the United States Department of Housing and Urban Development;
2. Authorize expenditure of $1,115,000.00 in HOME Investment Partnerships Program Grant funds as
allocated in the 2011-2012 Action Plan to Tarrant County Housing Partnership, Inc., a certified
Community Housing Development Organization, for the development of up to ten single family houses
in the Hillside-Morningside neighborhood;
3. Authorize execution of conditional commitments with Tarrant County Housing Partnership, Inc., that
conditions funding, among other things, on satisfactory completion of HOME Investment Partnerships
Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the project
for a three year term beginning on the date of execution of the contract;
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5. Authorize extension or renewal of the conditional commitment(s) or the contract(s) if Tarrant County
Housing Partnership, Inc., requests an extension and such extension is necessary for completion of
the project; and
6. Authorize amendment of the conditional commitment(s) or the contract(s) if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with
City policies and applicable laws and regulations governing the use of federal grant funds.
������C�1�
On May 14, 2011, the City issued a Request for Proposals (RFP) for certified Community Housing
Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment
Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing Partnership,
Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds to acquire 17
sites on which it proposed to construct single family houses. The request also included funds for
CHDO operating expenses.
Staff reviewed all RFP submissions and recommended the award to TCHP of $1,115,000.00 in HOME
funds to the Community Development Council (CDC) at its meeting held on May 25, 2011. The CDC
agreed with Staff s funding recommendation for the Project. Up to $100,000.00 of the awarded funds
will be used for operating expenses and $1,008,943.10 for construction of 10 houses and other
development expenses including the developer fee, which is based on the cost of construction.
TCHP plans to develop up to 10 single family houses to be located in the Hillside-Morningside
neighborhood. There are three floor plan options available varying in square footage from
approximately 1300 to 1600 square feet with three bedrooms, two baths and a rear detached garage.
The houses will be sold to an individual or family that earns 80 percent or less of Area Median Income
as determined by the United States Department of Housing and Urban Development (HUD). Buyers
must meet all HOME Program requirements, including applying for and receiving at least $1,000.00 in
down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and
occupying the house as their primary residence for five years.
City Staff recommends the following Contract terms:
i. Construction must begin within six months of date of contract execution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a recorded
Deed of Trust;
iii. Houses must be sold to a HOME eligible buyer; and
iv. TCHP will be allowed a 10 percent developer's fee based on the cost to construct the houses.
The exaenditure of HOME funds is conditioned upon the followinq:
i. Satisfactory completion of the environmental review per 24 CFR Part 58; and
ii. Authorization to use grant funds from HUD.
The Action Plan's funding years for federal funds selected may vary and be substituted based on the
principle of First In, First Out (FIFO) in order to expend oldest grant funds first. The HOME funds may
be used for any eligible costs related to the development.
Staff recommends the expenditure up to $1,115,000.00 in HOME funds for the Project to benefit low
and very low income citizens by providing affordable housing. A public comment period on the
expenditure of these HOME funds was held from June 28, 2011 to July 27, 2011. Any comments are
maintained by the Housing and Economic Development Department in accordance with federal
regulations.
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M&C - Council Agenda
This project is located in COUNCIL DISTRICT 8.
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Originating De�artment Head:
Additional Information Contact:
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Fabiola Suarez (6811)
ATTACHMENTS
1. 17TCHP.MAP.�df (Public)
2. Additional Available Funds.}zdf (CFW Internal)
3. Available Funds.PDF (CFW Internal)
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