HomeMy WebLinkAboutContract 44563/ ;
C1TY SECRETA� � � �
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COMMUNITY HOUSING DEVELOPMENT CONTRACT
This contract ("Contract") is made and entered into by and between the City of Fort
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") through 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;
VvFHEREAS, a portion of City's HOME funds are reserved for the use of cez-tain 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 funds 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 1307 Elmwood, 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 fot• an amount up to $114,900.00 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 further described in Exhibit "A" — Project Summary
and Scope of Work;
RE
CHDO Conti•act 1��ith TCHP for 1307 Elnna�ood
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VED J(1� 19 20i3
�F�'ICIAL �EC�RD
(�ITY SECRETARI(
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WHEREAS, City has determined that the development of quality, accessible, and
affordable housing is needed for moderate, low, and vely 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 individual 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 "complete" 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 Plus 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) shall 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 iirm;
(ii) The for-profit 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 Internal 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 full-time staff person
CHDO Conh�act ��ith TCHP for� 1307 Elnzwood
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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 backup 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, final 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 Sackup 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,�Uyu l �er� �c)+`-�.
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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Principai 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
particularly 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 funds), 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
specifically 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 Requirements 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 shall
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 certification of continued status as a CHDO by
January 30t�' of each year. The failure of Developer to maintain its status as a CHDO shall result
in reversion of assets as described as 8.5.1 and shail 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 Required Improvements. Developer shall 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 shali be an event of default. The City may, at its sole discretion, approve any changes
to the Project Schedule after Developer submits a written request for the modified 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 fulfillment 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 financing or file a lien without City's
written approval shall result in automatic termination of this Contract.
4.3 Use of HOME Funds.
4.3.1. Budget. 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
Exhibit "A" — Project Summary and Scope of Work, and the total amount of HOME Funds is
not increased.
4.3.2. Expenditures in Compliance 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 Requests. Funds wili 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 hold 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. The City will schedule a meeting to discuss the contractual requirements upon Contract
execution.
4.3.4. Withholding 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 under this
Contract or any other contract with Developer.
4.4 Construction and Prot�erty Standards
4.4.1 Construction to Conform to All Ap�licable Laws, Building Codes and
Ordinances. All plans, specifications and construction on the Required Improvements shall (i)
conform to all applicable Federal, state and local laws, ordinances, rules and regulations,
including HOME Regulations; (ii) meet all City building codes; (iii) be certified 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 Officials; 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 Department Minimum Acceptable 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 Property 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.
CHDO Contract with TCHP fot� 1307 Elr���a�ood
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4.4.4. Submission and Approval b�y of Plans and Specifications Not
Release of Responsibility or Liabilit� Developer shall submit plans and specifications to the
City. Approval of any plans and specifications 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 contractars, their respective officers, 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 specifications 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 subcontractors.
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.�, 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 Marketing
4.6.1. Affirmative Marlcetin�. 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,
CHDO Contract tivith TCHP for� 1307 Elmwood
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sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project.
4.6.2. City Ap rp oval• All Developer marlceting procedures related to the
Required Improvements, including but not limited to the affirmative marketing described in
Section 4.6.1 are subject to approval by City. Developer shall submit all marlceting plans for
City approval no later than 7 calendar days after the Effective Date.
4.6.3 Effective Marketin�. Developer will be solely responsible for the effective
marketing 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 Develoner Fee. Developer shall receive a fee of 10% of the total project-related
development costs as determined by EYhibit "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. Ali 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 ibg le Bu.� All homebuyers who purchase the Required
Improvements must also be a HOME Eligible Buyer who receives closing 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 complete 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 cei�tificate from a HUD Certified Housing Counseling
Agency only. A copy of the certification shall be provided to the City. Failure of Developer to
provide such certiiication 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 foliowing, and will incorporate definitions from this contract as
relevant:
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1. "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 seli or leave the home before the Affordability Period is
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 settlement
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 funds.
4.9.5. Timin� of Sale of Required Improvements. The Required Improvement must be
sold to an HOME Eligible Buyer within 4 months fi•om the date of Completion. If the Required
Improvements are not sold within 4 months from the date of Completion, 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 sell the Required Improvements within 4 months shall be an
event of default as described under Section 8.1.4.
4.10 Monitorin� 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
files 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 iive 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 offices and records
dealing with the use of the HOME Funds that are the basis of this Contract, and to its officers,
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 ensui•e that the affordability requirements are met, City requires
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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 from the City's HAP. Homebuyer
eligibility shall be determined by City in City's sole discretion using City HAP Eligibility
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 verification 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-keepin� 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 fulfillment of City's monitoring and evaluation
responsibilities and the reports and documents outlined below. Specifically Developer will keep
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 five 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
$ ��' �(� %n HOME Funds for eligible expenses (excluding the Developer Fee) related to
cons ruction of the Required Improvements, so long as such eligible expenses are in
conformance with the Budget and Project Schedule, and sufiiciently proved by Complete
Documentation.
7.1.2 Timing 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 Monitoring. City will monitor the activities and performance of
Developer and its contractors as necessary, but no less than annually as required by the HOME
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Regulations, 24 CFR Part 92.504. City will monitor the performance of Developer in regard to
compliance with completion of taslcs, duties and responsibilities as required under this Contract
with an advanced notice of no less than 24 hours.
7.2.2 In addition to other provisions of this Contract regarding frequency of
monitoring, City reserves the right to perform desk 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 findings. If the monitoring report notes
deficiencies in Developer's performance, the report shali include requirements for the timely
correction of said deficiencies by Developer. Failure by Developer to talce the action specified 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 wi11 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
all 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
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determined by City, City wiil 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
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 sold 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 convert 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. ali 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 specifically 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 shall not operate as a waiver of any subsequent default or
breach of the same or any other term, covenant or condition hereof.
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8.1.7 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.
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 all 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, including 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 notification to City, setting forth
the reasons for such termination, the effective date, and in the case of partial
termination, the portion to be terminated. However, if, in the case of a partial
termination, City determines that the remaining portion of the Contract to be
performed or HOME Funds to be expended will 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 including 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 automatically
transfer to City and this Contract shall terminate.
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8.5 Results of Termination
8.5. l. 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 plans, 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 shail be returned to City, and any approvals related to the Project that
is/are the subject of this Contract shall be immediately deemed revoked 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. Ri�hts 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 keeping 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. Developer Independent Contractor
Developer shall operate hereunder as an independent contractor and not as an officer,
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agent, servant or employee of City. Developer shall have exclusive control of, and the exclusive
right to control, the details of the work and services performed hereunder, and all persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, project participants, licensees or invitees.
11.2. Doctrine of Resnondeat Superior
The doctrine of respondeat superior shall not apply as between City and Developer, its
ofiicers, 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
taslcs performed hereunder by Developer, its officers, 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 property, pursuant
to The Fair Housing Act, Title VIII of the Civil 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 Federal 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
certified public accountant, be completed within six months following the end of the period
being audited and be submitted to City within 30 days of its completion. 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-profit 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 Right 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 all pertinent materials. If such audit reveals a
questioned practice or expenditure, such questions must be resolved 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
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DEVELOPER HAS MISUSED, MISAPPLIED OR MISAPPROPRIATED ALL OR ANY
PART OF THE HOME FUNDS, DEVELOPER AGREES TO REIMSURSE CITY THE
AMOUNT OF SUCH MONIES SO MISUSED, MISAPPLIED OR MISAPPROPRIATED,
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 Governin� 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 part 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. Paragraph 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 define 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 Civil 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
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• The Fair Housing Act, Title VIII of the Civii Rights Act of 1968 (42 U.S.C.
Sections 3601 etsey.)
• Executive Orders 11063, 11246 as amended by 11375 and 12086 and as
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 seq. ("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.)
speciiically 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, inciuding 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, Subpart 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 Projects and Employment and Other Economic Opportunities
(Section 3).
If the construction of the Required Improvements will cause the creation of new
employment, training, or contracting opportunities on a contractor or subcontractor level
resulting from the expenditure of the HOME Funds, Developer shall comply with the following
and will ensure that its contractois. 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
CHDO Cont��act with TCHP for 1307 El�r�wood
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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"):
Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
r^equirements of Section 3 of Hozrsing and Urban Development Act of 1968, as
amended, 12 U. S. C. section 1701 u(Section 3). The puJ pose of Section 3 is to
ensure that employment and other economic opportunities generated by HUD
assisted or HUD-assisted projects covered by Section 3, shall to the gr•eatest
extent feasible, be directed to low- and very-low income persons, particularly
persons who ar�e recipients of HUD assista�ce for housing.
B. The parties to this conh^act agree to comply with HUD's regulations in 24
CFR Part 135, which implement Section 3. As evidenced by their execution of
this contract, the parties to this contract certify that they are under no contractual
or othe�° impediment that would pi°event them from complying with the Part 135
Negulations.
C. The cont�°acto�� agrees to send to each labor organization or
representative of workers ��ith ��hich iz has a collective bai°gaining agreement or
other understandzng, if any, a notice udvisirtg the labor organization or u�orkers'
representatives of the conti°actor's commitments unde�° this Section 3 clause and
will post copies of the notice in conspicuous places at the work site where both
employees and applicarrts for t�°aining and employment positions can see the
notice. The notzce shall desc��ibe the Section 3 preference, shall set forth
minimum number and job titles subject to hire, availability of apprentice and
tNain�ing positions, the qualifications for each; and the name and location of the
pei�son(s) takzng applications for� each of the positions; and the anticipated date
the wor•k shall begin.
D. The contractor agrees th�at it will include this Section 3 clause in every
subcontract to comply with regzclation in 24 CFR Part 135, and agrees to take
appropriate actiora, as p��ovided in an applicable provision of the subcont�°act o�°
in this Section 3 clause, zrpon finding that the subcontractor is in violation of the
r•egulations in 24 CFR Pa1�t 135. The contr•actor will not szcbcontract with any
subcontractoN where it has notice or knowledge that the szrbcontr�actor has been
found in violcztion of regzilations in 24 CFR 135.
E. The contractor will ceT�tify that any vacant employment positions,
including t��azning positions that are filed: (1) after the contractor is selected but
before the contract is executed, and (2) with persons other than those to whom the
r•egulations of 24 CFR Pa��t 135. The contractor will not szrbcontract u�ith any
szrbcont��acto�° ��here it has rrotice o�° knowledge that the szrbcontractor° has been
found in violation of regz�lations in 24 CFR 135.
F. Noncomplr'ance with HUD's regulation in 24 CFR Part 135 may result in
sanctions, te��mination of this contract for defazclt, and debarment or suspension
from futur�e HUD assisted contracts.
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G. With respect to work perfor•med in connection with Section 3 covered
Indian hozrsing assistance, section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be
pe� formed under this Contract. Section 7(b) r�equiT�es that to the greatest extent
feasible (i) pi•efe�°ence and opportunities for training and employment shall be
given to Indians, and (ii) preference in the award of contracts and szrbcontracts
shall be given to Indian organizations and Indzan-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 and Section
79b) agree to comply with Section 3 to the maximum extent feasible, but not in
der°ogation of compliance with 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 specified by the grant agreement
through which Federal assistance is provided and to such sanctions as are specified by 24 CFR
Part 135.
1 l.l 1.1 Section 3 Reporting.
City and Developer understand and agree that compliance with the provisions of
Section 3, the regulations set forth in 24 CFR 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,
contractors and subcontractors. Failure to fulfill these requirements shall subject
Developer and its contractors and subcontractors and their respective successors and
assigns to those sanctions specified by the grant agreement through which Federal
assistance is provided and to such sanctions as are specified by 24 CFR Part 135. The
responsibilities include:
1. Implementing procedures to notify Section 3 residents and business
concerns about training, employment, and contracting opportunities generated by
Section 3 covered assistance;
2. Notifying potential contractors working 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 making
contractors and subcontractors comply;
6. Refraining from entering into contracts with contractors that are in violation
of Section 3 regulations;
7. Documenting actions talcen to comply with Section 3; and
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8. Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
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 report.
11.11.1.2 Notify available positions to the public for open
competition, and provide documentation to City with the
quarterly report that demonstrates such open advertisement,
in the form of printout of Texas Workforce 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 A�ainst 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
codiiied 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,
familial status, disability or perceived disability, sexual 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 specifically to the ordinances
codified at Chapter 17, Ai-ticle III, Division 3- Employment Practices of the City Code, and
Developer hereby covenants and agrees that Developer, its ofiicers, members, agents, employees
and contractors, have fully 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.
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During the performance of this Contract, Developer agrees that Developer will not
unlawfully discriminate against any employee or applicants 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 talce
affirmative 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: employment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for training, including apprenticeship.
Developer agrees to post in conspicuous places, a�ailable 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 ali 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 officers, members, agents, employees,
or contractors, while engaged in performing this Contract, shall, in connection with the
employment, advancement or discharge of employees 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 fide occupational
qualiiication, retirement plan or statutory requirement.
Developer further covenants that neither it nor its officers, members, agents, employees,
contractors, or persons acting on their behalf, shall 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 fide occupational qualification, 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 11246 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 will require the provisions of this Section 11.1 l.l 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
CHDO Coi�tract ��ith TCHP for 1307 Elmwood
Page 22 of 33
will take 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.
11.12.3. Developer's Contractors and ADA
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-REFERENCED LAWS CONCERNING DISABILITY
DISCRIMINATION IN THE PERFORMANCE 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 fi•om 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, officers 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 beneiit 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 all cases not governed by those sections, the provisions of 24 CFR Part
92.356 of the HOME Regulations shall apply.
11.14. Labor Standards
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11.14.1 As applicable, 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 Worlc Hours and Safety Standards Act (40
U.S.C. 3701 et seq.) and all other applicable Federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Kicic Back Act (18 U.S.C.
874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR
Part 3. Developer shali 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
Comptrolier 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 work financed 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 worlcers; 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 shall 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 Business
Enterprises and Labor Surplus Areas.
11.151 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 all 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"). Accordingly, affirmative 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
CHDO Corrt���act tivith TCHP for 1307 Elmtivood
Page 24 of 33
The failure to list any federal, state or city law, ordinance or regulation that is applicable
to Developer does not excuse or relieve Developer from 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 applicable.
11.17. Assignment
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 shall constitute a breach of this Contract.
11.18. Ri�ht to Inspect 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 Ma�eure
If Developer becomes unable, either in whole or part, to fulfill its obligations under this
Contract due to acts of God, strilces, locicouts, or other industrial 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 Event"), 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 will use commercially
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 funds to physical or choice limiting actions,
inciuding 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.
11.20.1.1 Developer must talce the mitigation actions outlined in
Exhibit "J" — Environmental Mitigation Action. Failure to complete the
required mitigation action is an event of default under this Contract.
CHDO Co��tract tit�ith TCHP fof• 1307 Eln���ood
Page 25 of 33
11.20.2 Contract Not Constituting 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.
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 payrolis, contractor
and subcontractor payrolls 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. Additional 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" — HUD 4010 Labor Standard Provisions; Exhibit "H-5 — Labor Relations Guide;
Exhibit "H-6" — Start of Construction Form; Exhibit "H-7" — Construction Complete Form;
Exhibit "H-8" — EEO Statement; Exhibit "H-9" — Payroll Deduction Authorization Form; and
Exhibit "H-10" — Officer 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.
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
CHDO Contract ��ith TCHP for 1307 Elnzwood
Page 26 of 33
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
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
CHDO Contract with TCHP for 1307 Elrnwood
Page 27 of 33
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME FORM AS ASOVE.
13. WAIVER OF IMMUNITY BY DEVELOPER
If Developer, as a charitable or nonprofit organization, has or claims an immunity or
exemption (statutory or otherwise) from and against liability for damages or injury, including
death, to persons or propei-ty, 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
$114,900.00 to insure against loss from the fraud, theft or dishonesty of any of Developer's
officers, 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, certificates of insurance as proof that it has secured and paid for policies of
commercial insurance as speciiied herein. If City has not received such certificates as set forth
herein, Developer shall be in default of the Contract and City may at its option, terminate the
Contract.
Such insurance shall cover all insurable risics incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract. Developer
shall maintain, or require its general contractor to maintain, the following coverage and limits
thereof:
Commercial General Liabilit�(CGL) Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$250,000 Property Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsed 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
CHDO CoJ�tract tinith TCHP for 1307 Elrnwood
Page 28 of 33
shall be the primary responding insurance policy versus a personal auto insurance policy if or
when in the course of Developer's business as contracted herein.
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 shali cover employees performing work 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
frequently 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 general contractor, has obtained
insurance cov.erage 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 parties shall include employees,
officers, 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 financial 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.
CHDO Contract lvith TCHP for 1307 Eln�wood
Page 29 of 33
In the event there are any local, federal or other regulatory insurance or bonding requirements for
the project, and such requirements exceed those speciiied herein, the former shall prevaiL
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 certificate(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 Officers Liability coverage shall be in force and may be provided on a claim made
basis. This coverage may also 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 shall protect not only the entity, but all
past, present and future directors, officers, trustees, employees, volunteers and committee
members.
Developer shall require its builder to maintain builders 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 malcing 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
certificate is a prerequisite for making or entei•ing into this Contract imposed by
31 U.S.C. Section 1352. Any person who fails to file the required certification
shall be subject to a civil penalty of not less than $10,000.00 and not more than
$100,000.00 for each such failure.
CHDO Contract tivith TCHP for 1307 Elmtivood
Page 30 of 33
Developer shall require that the language of this certification 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 shall 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 undei any banlcruptcy or financial insolvency provision
of law.
1'7. NOTICE
All 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, certiiied 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 Office
1000 Throckmorton Street
Fort Worth, TX 76102
Copy to:
City Attorney's Office
1000 Throckmorton Street
Fort Worth, TX 76102
Copy to:
Director of Housing and Economic Development
1000 Throckmorton Street
Fort Worth, TX 76102
President of Tarrant Countv Housing 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 official motion, resolution or action passed or talcen, to enter into this Contract
and to perform the responsibilities herein required.
CHDO Contract with TCHP foy° 1307 Elmwood
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 t�e Parties reto have executed this Contract in Fort
Worth, Tarrant County, Texas, this ���'�day of � , 2013.
„�j,p•i`1`aLLjy4 ; -
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ATTEST:
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APP OVED AS TO FORM AND LEGALITY:
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CHDO Contract lvith TCHP for 1307 Ebn��ood
Page 32 of 33
OF FORT WORTH
ndo Cost , As stant City Manager
T�3
OFFICIAd. REC6RD
CITY SECRE'�ARY
F7. VYORTH, TX
TARRANT COUNTY HOUSING
PARTNERSHIP,INC.
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" — HUD 4010 Labor Standard Provisions
Exhibit "H-5 — Labor Relations Guide
Exhibit "H-6" — Start of Construction Form
Exhibit "H-7" — Construction Complete Form
Exhibit "H-8" — EEO Statement
Exhibit "H-9" — Payroll Deduction Authorization Form
Exhibit "H-10" — Officer Appointment Form
Exhibit "I"- Deed of Trust Form
Exhibit "J"- Environmental Mitigation Action
Exhibit "K"- Section 3 Reporting Requirements
CHDO Contr•act with TCHP foi� 1307 Elmwood
Page 33 of 33
EXHIBIT "A"
PROJECT SUMMARY - SCOPE OF WORK
1307 ELMWOOD
DESCRIPTION:
Developer wili construct a 1376 square foot, 3 bedrooms and 2 bathroom single-family home on a lot
size of approximately 6,000 (range) 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:
• Ceiling Fan(s) in 3 BR, 1 LR.
� Washer and Dryer hoolcups
• Central Air Conditioning
• Stove
• 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 (back yard)
• Landscaping (front)
• Roofing Materials 3 TAB 25 YR
• Siding (percentage) 100%
• Foundation Type Post Tension
• HVAC 15 Seer Heat Pump
• (the "Project").
CHDO Funds - Exhibits
EXHIBIT "A-1"
FINAL ELEVATIONS AND PROPOSED PLANS AND SPECIFICATIONS
CHDO Funds - E�hibits
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EXHIBIT "A-2"
LEGAL DESCRIPTION
Highland Park Addition - Ft Wth Blk 54 Lot 24
CHDO Funds - E�hibits
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1307 Elmwood
Phase Activity Beginning Week — subject to
weather ermittin
PHASE I ACTIVITIES: Contract signed May 13
Lot Acquisition/ Preparation May 20
(Demolition)
August 12
Plumbing
August 19
Fom�dation
PHASE I DEADLINE:
Au ust 23 lsc Payment $34,300
PHASE II ACTIVIITES: Framing August 26
Roofing September 2
Insultation September 9
Siding / Brick September 16
Top-o�rt Piumbing, Electrical, HVAC September 23
PHASE II DEADLINE: 2n�i payment $38,500
October 4
PHASE III ACTIVIITES: Sheeh•ock, Tape/Bed/Texture/Trim-out October 7
Paint October 21
Cabinets, Countertops October 28
HVAC, Plumbing, Electrical, Finish- November 4
Out
PHASE III DEADLINE: 3r� Payment $28,500
November 8
PHASE IV ACTNIITES: Landscape, Paving November I 1
Flooring November 18
Appliances, Interior trim-out/finish November 25
PHASE N DEADLINE: Construction Final Payment $13,600
November 29
CONSTRUCTION TOTAL $114,300
DEVELOPER FEE paid at time of home sale to HOME $11,430
Eligible Buyer
*Developer will be reimbursed for eligible expenses only. The amounts are estimates and are subject to
change.
CHDO Funds - Exhibits
Exhibit C
Budget
BUDGET —1307 Elmwood
Total Cost: $ _114,900
Project HOME Funds Awarded: $_114,900
Operating Funds Awarded: $
TOTA� AWARDED FUNDS: $_114,900
* 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 OTHERFUNDS FUNDS
(1) (2) (Names) (1+2)
1. Market Study
2. Feasibility (ie: preliminary work
write-up, cost estimates, design)
3. Other
Total Predevelopment Cost (1+2=3)
Development Cost
4. Land and/or building acquisition
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 /
Developer Fee
13. Construction Loan Interest
14. Property Survey 500 500
15. Legal Fees 250 Proceeds of Sale 250
16. Real Estate Fees 4,6so Proceeds of Sale 4,680
17. Utility Hookup/Impact Fees 3,200 3,200
18. Title & Recording Fees 780 Proceeds of Sale 780
19. Program Related Expenses 6,250 CHDO Operating Funds 6,250
20. Construction Management
21, Bond Fees
Total Development Cost (Total of 114,900 12,435 127,335
items 4 — 21)
Total Project Cost 114,900 12,435 127,335
CHDO Funds - E�hibits
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 speciiic 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 shall be conducted by a certiiied 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
qualifications, independence, due professional care and quality control as required by Government Auditing
Standards, 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 Fort 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:
Gove�°nment 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-Profit Organizations
Receiving Federal Awards"
Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations
AICPA's Audit Risk Alert "State and Local Governmental Developments"
Gover�nment Auditing Staradards by the Texas Department of Housing and Community Affairs fo�° Properties
Receiving Low Income Housing Tax Credits
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 Worth who are not required to have an audit shall certify 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 Worth Housing and Economic Development
Department within the required timeframe:
Due 60 days after organization's fiscal year end in the year that the proiect 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 conjunction with the audit report
Two copies of management's comments on all findings, 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 stili be lcept 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 - �Yhibits
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
SINGLE AUDIT REPORT CHECKLIST
The Department developed this checklist to help organizations improve the quality and completeness of
audit reports.
General Purpose or Basic Financial Statements of the Organization Opinion/Report on Organization's Financial
Statements in accordance with Government Azsditing Standa��ds
Notes to the General Purpose or Basic Financial Statements of the Organization
A Schedule of Expenditures of Federal Awards, including the Department'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 Financial Reportin�Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards. (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 s�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 findings 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 reports 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 - E�hibits
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 ha�e 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 expenditure threshold required for a Single Audit or a Program
Specific Audit to be performed this fiscal year. (Fill out schedz�le belo��)
Must be frlled oirt if Single Audit o�� Program Audit is not ��equired.�
Federal Expenditure Disclosure
Federal Funds
Pass Through
Federal Grantor Grantor
Total Federal Expenditur�es for this Fiscal Year
Donna anNess
— ----- ------
Printed
A thor' ed ' re (Mu be CFO, C or equivalent)
Prograin Name & Contract
CFDA Number Number Expenditures
President
Title (Must be CFO, 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.
Sz�bn�it this form to the City of Fort Worth Hot�srng and Economic Denelopment Depai�tn�ent within 60 days after the end of yoz�r
Fiscal year
CHDO Funds - Exhibits
EYHIBIT "F"
STANllARD OF BACKUP I)OCUMENTATION
��� � ��
�.
�
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 HUD language
• Master Settlement Statement
• Appraisal or other document used to determine purchase price
• Proof of Payment (bank statement/cancelled checki
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,�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.
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 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 Sheet(s) Signed by Empioyee 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 CFI2 PART 92 SUI3PART F- PROJCCT REQUII2ENIEN'I'S
two-year match reduction periad in accordance �vith the provisions oFparagraph
(a)(3) of this section.
b. lZecluction of match for participating jiu•isdictions in disnster areas. [f a participating
jurisdiction is located in an area in which a declaration oPmajor disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act is m1de, it may request
a reduction of its matching reqliirement. For a local participating jurisdiction, the FiUD
�ield office may reduce the matching requirement specitied in � 92.213 by up to l00
percent for the tiscal year in which the declaration oF inajor disaster is made and the
following tiscal year. For a Stzte participating jurisdiction, the HUD Fieid oftice may
ceduce the matching requirement speci�ed in § 92.21 S, by up to 100 percent for the
fiscal year in �vhich the declaration of major disaster is m�de and the following fiscal
year with respect to any F{ONIE funds expended in an area to wf�ich the declaration of a
major disaster applies. At its discretion and upon request of the participating jurisdiction,
the FIUD Field Office may extend the reduction for an additional year.
SUBPART I' — PROJECT REQUIRENIENTS
§ 92.250 Maximum Per-unit Subsidy Amount and Subsidy �ayering
�1�(�Yirrtum per-unit siebsidy amount. The total amount oF HOME fi�nds and ADD[ Punds
that a participating jurisdiction may invest on a per-unit basis in affocdable housing may
not exceed the per-unit dollar limitations established undec section 22l(d)(3)(ii) of the
National f-[ousin�; Act ( l2 U.S.C. 1715 l(d)(3)(ii)) for elevator-type projects that apply to
the area in which the housing is (ocated. "Chese limits are available from the Mu(tifamily
Division in the HUD Field Office, [fthe participatingjurisdiction's per-unit subsidy
amount has already been increased to 2 I 0% as permitted under section 22 l(d)(3)(ii) of
the National E(ousing Act, upon request to the Field Office, E-(UD wil( allow the per-unit
subsidy amount to be increased on a program-wide basis to an �lmount, up to 2��0% of the
original per unit limits.
b. Srrb,sicly lcryerrn�;. Befo►•e committin� funcls to a project, the p�irticipatingjurisdiction
must evaluate the pcoject in accordance with guidelines that it has adopted tor this
purpose and wi(( not invest any more HOME f'unds, in combination with other
�;overnmental assistance, than is necessary to provicle affordable housing.
� 92.251 Property Standards
8.
(-lousin� that is constructed or ref��abilitated with HON1E funds must mcet all
applicable local codes, rehabilitation standards, orc�inances, arld zoning ordinanees
at the time �f project compl�tion, exccpt as provi�led in paragraph (b) of this
section. The participatir�g jurisdiction must have written standards for rehabilitation
that ensure that EI0�1�1E-assisted housing is decent, safe, and sanitary. fn the absence
of a local code for new construction or rehabilitation, EiOME-assisted new
construction or ref�abilitation must meet, as applicable: one uf thrce rnodel cocles
(Uniform t3uilding Cocle ((C�30), National E3uildinb Code ([30CA), Stanclard
45
(Southernj E3uilding Code (SE3CC1)); or the Council of American Building Ofticials
(CAE30) one or two tami(y code; or the Ntinimum Property Standards (MPS) in 2�
CFR 200925 or 200926. "I'o avoid duplicative inspections when FHA �inancing is
involved in a HOME-assisted property, a participating jurisdiction may rely on a
�tinimum Property Standards (i�1PS) inspection performed by n qualitied person.
Newly constructed housing must meet the current edition of the Model Energy Code
published by the Council of Arnerican Building Officials.
�\(I other HONtE-assisted housing (e.g., acquisition) must meet all applicable State
and 1oc11 housing quality standards and code requirements and iFthere are no such
standards or c�de requirements, the housing must meet the housing quality
standards in 24 CFR 982.�01,
The housing must meet the accessibility rcquirements at 2� CFR part 8, which
imp(ements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 79�) and
covered multifamily ciwel(ings, as detined at 24 CFR I00.201, must a(so meet the
design and construction cequirements at 24 CFR 100.205, which implement the Fair
�-fousing f\ct (42 U.S.C, 3601-3619).
4. Construction of all manufactured housing must meet the N[anufactured i tome
Construction and SaFety Standards established in 24 CFR Part 3280. These
standards pre-empt State and (ocal codes covering the same aspects oPperformance
For such housing. Participating jurisdictions providing f-iON1E assistance to install
manufactured housing units must comply with applicable State and local laws or
cocles. In the absence oFsuch (aws or codes, the participating jurisdiction must
comply with the manufacturer's written instructions for installation ot manufacturecl
housing units. t�(anufactured housing that is rehabilit�ited using HOME funds must
meet the requirements set out in paragraph (a)( I) of this section.
b. "I,he Followin�; requirc;ments appfy to housing For homeownership that is to be
rehabilitated after transfer of the ownership interest:
t3efore the transfer of the homeownership interest, the participating jiu•isdiction
must:
[r�spect the housing for any defects thaC pose a danger to hcalth; and
Notity the prospective purch�iser of the work needed to cuce the defects and the
time by �v{7ich deFects must be cured and applicable property stanclards mei.
�I�he housing mu5t be free f'rom all nok�;d health and safety defects before occupe��cy
ancl n�>t later than 6 months after tl��e h•anster.
I�he housing must meet the property standards in par�i�raph (a)( I) of this section not
later than 2 ye�rs aftcr transter of the o�vnership intc;rest.
��n owner of rental housing assisted tivith ({Oi�tE: funds must maint�in the f�ousing in
c�mpliance �vith all <ipplicable State ancl local housir�g quality standards and ec��1e
rcquirements ancl it�therc are i�o such standards or cocie reyuirements, the housing must
nieet the housin� yuality stanclarcis in 24 CFR 982.�t01.
46
d. All housing occupied by tenants receiving [-{OME tenant-based rental assistance must
meet the housing quality standards in 24 CFR 982.401.
§ 92.252 Qualification as Affordable Housing: Rental Housing
T}ie HOME-assisted units in a rental housing project must be occupied only by liouseholds
that are eligible as low-income families and must meet the following requirements to qualify
as at�£ordable housing. The affordability requirements also apply to the HOME-assisted non-
owner-occupied units in single-family housing purchased with HOME funds in accordance
with § 92.254.
Rent limitation. HUD provides the foP(owing ma:cimum EfOI�tE rent limits. The
ma:cimum E{OtitE rents are the lesser oP:
l. The Pair market rent for existing housing for comparable units in the area as
established by HUD under 24 CFR 388.11 l; or
2. A rent that does not erceed 30 percent of the adjusted income of a family whose
annual income equals 65 percent of the median income For the area, 1s determined
by E-[UD, with adjustments Por number of bedrooms in the unit. The HONtE cent
(imits provided by HUD wi(1 include average occupancy per unit and adjusted
income assumptions.
b. flclditional2ent limitations. [n rental projects with tive oc more F[OME-assisted rental
units, twenty (20) percent of the HOME-assisted units must be occupied by very (ow-
income families and meet one of Fo(lowing rent requirernents:
The rent does not exceed 30 percent of the annual income of a Family whose income
eqiials 50 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larber flmilies. EItJD provides the FIOME rent lirnits
which include average occupancy per unit and adjusted incame assurnptions.
However, 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. '('he rent does not exceed 30 percent of the family's adjusted income. [f the unit
receives Federal or State project-based rental subsidy and the ve►-y (ow-income
family pays as a contribution toward rent not more than 30 percent of the family's
adjusted income, then the ma�cimum rent (i.e., tena��t contribution plus project-
based rental subsidy) is the rent allo�v�ble under the Federal or State prc�ject-based
rental subsidy �rogram.
Irrrtic�! rent schech�le und «tility allo►vnnces. ��he participatinb jurisdiction rnust establish
masimum monthly al(owances tor utilities and services (excli�clin� telephone). The
participating jurisdiction must review and approve rents proposcd by the owner for units
subject to the maxirtium rent limitations in paragraphs (a) or (b) of this section. E'or al!
units subject to the maximurn rent liit�itations in paragraphs (a) or (b) of this section for
which the tenant is paying utilities and services, the participating jurisdiction must ensure
�17
that the rents do not exceed the maximum rent minus the monthly allowances for utilities
and services.
d. �Vondiscrimination cr�ninst rentnl crssist�nce strbsidy holclers. The owner cannot reE'iise to
lease HON(E-assisted units to a certiticate or voucher holder under 24 CFR part 982—
Section 8 Tenant-E3ased Assistance: Unified Rule for Tenant-Based Assistance under the
Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the
holder of a comparable docttment evidencing participation in 1 HOME tenant-based
rental assistance program because of the status of the prospective tenant as a holder of
such certiticate, voucher, or comparlble E(OME tenant-based assistance document.
e. Periods offiffordability. The E{OM&assisted units must rneet the affordability
requirements for r�ot (ess than the applicable period specitied in the following table,
beginning after project comp(etion. "1'he 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 land, or other mechanisms approved by
HUD, except that the lffordability restrictions may terminate upon forec(osure 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 foreclosure to preserve afPordability. The affordability restcictions 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 of foreclosuce, 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 property.
Rental Housing Activity Minimum period of affordability in years
Rehabilitation or acquisition of existing 5
housing per unit amount of f{OME funds:
Uncler $ ( 5,000
$ I 5,000 to $40,000 � p
Over $40,000 or rehlbilitation involving I S
retinancing
Ncw Construction or acquisition of newly Zp
constrlacted r�ousing
,S'ribseyt�ent i�ents cli�ring the crJf'or�labrliry perioct.
�fhe maximum HOME rent limits are recalculated on �� periodic basis af�er HUD
�letermines fair market rcnts and mediar� incomes. HUD then provides the new
rnaximum HOib1E rent limits to E�artici��ating jurisdictions. R�gardless of chan�es in
f<iir market rents and in rnediln income ovcr time, tNie E�{O�tE rents for 1 project are
not require�l to be lower than the E{OME rcnt limits For the project in �t'fcct at the
tiil�e ot� project commitm�nt.
dg
2. "Che participating jurisdiction must provide project owners with information on
updated HOME rent limits so that rents may be adjusted (not to eYceed the
maximum HONiE rent limits in paragraph (�(() of this section) in accordance with
the written agreement between the participating jurisdiction and the owner. O�vners
must annually provide the participating jurisdiction with information on rents and
occupancy of HON1E-�ssisted units to demonstrate compliance with this section.
3. Any increase in rents For EfON1E-assisted units is subject to the provisions of
outstanding (eases, and in any event, the owner must provide tenants of those units
not less than 30 d�iys prior written notice before implementing any increase in rents.
g. fIc! tisttnent of HO���E �•ent limits for a pnrtictilaj• project.
I. Changes in fair market rents and in median income over time should be sufticient to
maintain the financial viability of a project within the HONtE rent limits in this
section.
HUD may adjust the I-iOME rent limits for a project, on(y if EtUD �inds that an
adjustment is necessary to s��pport the continued tinancial viability of the project
and only by an �mount that E[UD cietermines is necessary to m�iintain continued
tinancial viability oF the project. HUD expects th�it this authority will be used
sparingly.
h. Tenant income. The income of each tenant must be determined initi�lly in accordance
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
tl�e options in � 92.203 selected by the participating jurisdiction. An owner of a
multifamily project �vith an afFordability period of 10 years or more who re-e�camines
tenant's annual income through a statement and certitication in accordance tivith
� 92.203(a)(l)(ii), must examine the income oFeach tenant, in accordance with
§ 92.203(a)(l)(i), every siYth year of the affordability period. Otherwise, an owner who
accepts the tenant's statement and certitication in accordance with � 92.203(a)(I)(ii) is
iiot required to examine the income of tenants in multifami(y or single-family projects
unless there is evidence that the tenant's �vritten statement failed to completely and
accurately state information about the Eamily's size or income.
Over-rncome tencmt,s.
E[OME-assisted units continue to qualify as aftordable housing ciespite a temporary
noncompliance caused by ii��ereases in the incomes ot'existing tenants if actions
satisFactory to HUD are being taken to ensure that all v�cancies ��re tilled in
accordance with this section until the noncompliance is corrected.
fcnants �vho no longer qu�ilify as low-income families must pay as rent the lesser of
the �mo�mt payable by the tenant under State or local (aw or 30 percent of the
fa►nily's acljustecl income, except that tenants of HOMF-r�ssisted units that have
been allocated low-income housing tax credits by a housing credit agency pursuant
to sectic�n �2 of the (nternal Revenue Code of ( 986 (26 U.S.C. �2) must pay rent
g�verned by section d2. fn addition, in projects ii� which the f{Oi�(E iu�its are
clesignated as tloating pucsuant to paragraph (j), tenants who nu (onger qualit'y as
49
fow-income are not required to pay as rent an amount that exceeds the market rent
for comparable, unassisted units in the neighborhood.
Fixed c�nd floating tlO�tilE units. (n a project containing HOME-assisted and other units,
the participating jurisdiction may designate tixed or tloating HONiE units. `l,his
ciesignation must be made at the time of project commitment. Fixed units remain the
same throughout the period of affordability. Floating units are changed to maintain
conformity with the requirements of this section cluring the period of affordability so that
the total number of housing units meeting the requirements of this section remains the
same, and each substituted unit is comparable in terms of size, features, and number of
bedrooms to the originally designated HON1E-assisted unit.
§ 92.253 Tenant and Participant Protections
I,ease. 'I'he lease between a tenant and an o�vner of rental housing assisted with HOME
funds must be for not less than one year, unless by mutual agreement between the ten�nt
and the owner.
b. Prohibited lecrse terms. "Che lease may not contain any of the following provisions:
flgreement to be suect Agreement by the tenant to be sued, to admit guilt, or to a
judgment in tavor of the owner in a lawsuit brought in connection with the (ease;
2. Treatment of property. Agreement by the tenant that the owner may take, hold, or
sell personal property of household members without notice to the tenant and a
court decision on the rights of the parties. "fhis prohibition, however, does not apply
to an agreement by the tenant concerning disposition of personal property rernaining
in the housing unit after the tenant has moved out of the unit. "I'he owner may
dispose of this personal property in accordance with State law;
L;.rctrsing otivrrer frorn responsibiliry. Agreement by the tenant not to hold the o�vner
or the owner's agents legal(y responsible for any action or failure to act, �vhether
intentional or negligent;
4. Waiver nf'riotice. A�reement of the tenant that the owner may institute a la�vsuit
�vithout notice to the tenant;
Wuiver oflegal proceedings. Agreement by the tenant that the owner may evict the
tenant or household members without instituting a civil court pt•oceeding in which
the tenant has the oppor-tunity to present a defense, or before a court decision on the
ri�hts of the �arties;
6. G�aiver v/�u j�rry ti�i�rl. �lgreement by lhe tenant to waive any right to a trial by jury;
4i�niver of i•ight lo uppea! cotu•t �lecision. Agreement by the tcnant to waive the
tenant'S right to appeal, or to otherwise challenge in court, a court decision in
connection with the (ease; and
I enurrt c{u�rge�rhle wrth cnst o/�legul nr[iorts regur�/le.ss of vu[cojrre, f�greement by
the tenar�t to pay attorncy's t'ees ��r other legal costs even if the tcnant wins in a
i0
;. _
court proceeding by the owner against the tenant. The tenant, however, may be
obligated to pay costs if the tenant loses.
c. Termination of tennncy. An o�vner may not terminate the tenancy or refUse to renew the
lease of a tenant of rental housing assisted with HOME tunds except for serious or
repeated violation of the terms and conditions of the lease; for violation of applicable
Federal, State, or local law; for completion of the tenancy period for transitional housing;
or for other good cause. To terminate or refuse to renew tenancy, the owner must serve
written notice upon the tenant specifying the grounds for the action at least 30 days
before the termination of tenancy.
d. Terrcrnt selection. An owner of rental housing assisted with E{OME f'unds must adopt
written tenant selection policies and criteria that:
Are consistent with the purpose of providing housing for very low-i►lcome and low-
income families;
2. nre reasonably related to program eligibility and the applicants' ability to perform
the obligations of the lease;
3. Provide for the selection of tenants from a written waiting list in the chronologicat
order of their app(ication, insofar as is practicab(e; and
�. Give prompt written notitication to any rejected applicant of the grounds for any
rejection.
§ 92.254 Qualification as Affordable Housing: Homeownership
a. �lcquisitlon tivith or without rehnbilitalion. Housing that is for acquisition by a family
must rt�eet the affordability requirements of this paragcaph (a).
The housing must be single-family housing.
`I'he housing must be modest housing as tol(ows:
[n the case of acquisition of newly constructed housing or standard housing,
lhe housing has a purchase price for the type oFsin�;le Family housing that does
not eYceed 95 percent of the rnedian purchase price For the area, as deseribec)
in paragraph (a)(2)(iii) of this section.
fn the case of acquisition with cehabilitation, the housing has an estimated
v�ilue atter rehabilitaCion that �loes r�ot exceed 95 percer�t of the median
purchase price for the area, described in paragraph (a)(2)(iii) of this sectic�n.
iii. If a participating jurisdiction intends to use HOME funds for homebuyer
assistance or for i•ehabilitation of owner-occupied single-fc�mily properties, the
participatin�; jurisdiction rTiay use the Single Pnmily Mortgage Limits under
Scction 203(b) of the National Housing Act (12 U.S.C. 1709(b)) (which may
be �bt��ined from the f�[UD Fielcl Off`ice) or it iY�ay determine 95 percent of the
ir�cclian area purchase price for single family housing in the jurisdiction, as
!i 1
tollo�vs. The participating jurisdiction must set forth the price for different
types of single tamily housing for the jurisdiction. "I'he 95 percent ot' median
area purchase price must be established in accordance �vith a market analysis
which ensured that a sufticient number of recent housing sa(es are included in
the survey. Sales must cover the requisite number of months based on volume:
For 500 or more sales per month, a one-month reporting period; for 250
through �99 sales per month, a two-month reporting period; for (ess than 250
sales per month, at least a three-month reporting period. "Che data must be
listed in asceneling order of sales price. "Che address of the liste�l properties
must include the loc�ition �vithin the participating jurisdiction. Lot, square and
subdivision data may be substituted for the street address. The housing sales
clata must retlect all, or ncar(y all, of the one-fami(y house sales in the entire
pacticipating jurisdiction. "I'o determine the median, take the middfe sale on the
list if an odd number of sales and if an even number, take the higher of the
mi�ldle numbers and consicler it the median. After iclentifying the median sales
price, the amount should be multiplied by .95 to cletermine the 95 percent of
the median area purchase price. This information must be submitted to the
HUD Field OFtice for review.
The housing must be acquired by a homebuyer whose fami(y qua(ities as a(ow-
income Family and the housing mi�st be the p�•incipal residence of tfle f'amily
througtlout the period described in paragraph (a)(4) of this section.
4. Periocl.s ofcifforclabiliry. "I'he E[ON1E-assisted housing must meet the af'fordabi(ity
requirements tor not less than the app(icable periocl specitied in the following table,
beginning after project completion, "['he per unit amount of HOfv(E f�u�ds and the
affordability period that they trigger are described more fully in paragraphs (a)(5)(i)
(resale) and (ii) (rec�ipture) of this secti�n.
Homeownership assistance HOME amount Minimum period of affordability in years
per-unit
Under $15,000 5
$ I 5,000 to `��0,000 I 0
Over `�40,000 I 5
Resale crrulre��uptrire. �(�o ensure at�fordability, the participating jurisclictiun must
impose either resale or recapture requiremcnts, at its uption. "[�he partici�ating
jurisdiction must e5tablish the resale or i-eca�ture reyuireir�ents that coi7�ply with thc
st�nclards ofthis section and set forth the requireit�ents in its consoliciated plan.
EIUD must cletermine that they are appropriate.
Rc�sale. Resale requirernents must ensure, iFthe housing cloes not cuntinue to
be the principal residence of thc f��mily for the duration of the period ot
at�Forclability, that the housing is macfe available For subsequent p�irchase only
tc� a buyer wh��se t��mily c�ualities as a lo�v-incc�me Family and will use the
52
pcoperty as its principa( residence. 'The resale requirement must also ensure
that the price at res�ile provides the original E[OME-assisted owner a fair return
on investment (including the homeowner's investment and any capital
improvcment) and ensure that the housing will remain afPordable to a
reasonable range of low-income homebuyers. The period of affordability is
based on the total amount of F{OME funds invested in the housing.
A. EYcept as provided in paragraph (a)(5)(i)(B) of this section, deed
restrictions, covenants running wid� the land, or other similar mechanisms
must be used as the mechanism to impose the cesale requirements. "Che
aFfordability restrictions may terminate upon occurrence of any of the
tollowing termin�ition events: foreclosure, transfer in lieu of foreclosure
or assignment of an FHA insured mortgage to HUD. The participating
jurisdiction may use purchase options, rights of first refusal or other
preemptive rights to purchase the housing before foreclosure to preserve
aFfordability. The �ftordability restrictions shall be revived according to
the original terms if, during the original 1Ffordabi(ity period, the owner of
record before the tecmination event, obtains an otivnership interest in the
housing.
B. Certain housing may be presumed to meet the resale restrictions (i.e., the
housing wifl be available and affordable to a reasonab(e 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 afforded a
Fair return on investment) during the period of affordability without the
imposition of e;nForcement mechanisms by the participating jurisdiction.
The presumption must be based upon a market ana(ysis of the
neighborhood in which the housing is located. The market anllysis must
include an evaluation of the (ocation and characteristics of the housing
�ind residents in the neighborhood (e.g., sa(e prices, age and amenities of
the housin�; stock, incomes of cesidents, percentage of owner-occupants)
in relation to housing and incomes in the housing market area. An
analysis oF the current �ind projected incomes of neighborhood residents
For an average period of aftordability for homebuyers ir� the neighborhood
must support the conclusion that a reasonab(e range of low-income
families will continue to quality for mort�;age tinancing. [�or example, an
analysis shows that the housing is modestly priced within the housing
market area and that f�milies with incomes of 65% to 30'% of area median
can afford monthly payments under average FHA terms without other
government assist�nce tuid housing will remain affordable at least during
the next tive to seven years compared to other housing in tht market area;
the size ar�d amenities of the housing are mo�lest and sut�stantial
rel����bilitation will not sig��iticantly increase the market value; the
neibhborhood has huusin� that is not current(y owned by the occupants,
but the participating juriscliction is encouraging homeownership in the
neighborhood by proviciing homeowncrship assistance and by making
iir�provements to the streets, sidewalks, and other public tacilities and
services. (f a participatingjurisdiction in preparing a nei�;hborhood
revitalization strategy uncler � 91.215(e)(2) of its consolidated plan or
Empowerment Zone or L;nterprise Cocnmunity applicatior� under 24 CFR
53
part 597 has incorpocated the type of rnarket data described above, that
submission may serve as the rec�uired analysis under this section. [f the
participating jurisdiction continues to provide homeownc;rship assistance
for housing in the neighborhood, it must periodically update the market
ana(ysis to verify the original presumption of continued affordability.
ii. Recapture. Recapture provisions must ensure that the participating jurisdiction
rccoups all or a portion of the HOME assistance to the homebuyers, if the
housing cioes �lot continue to be the principal residence of the family for the
cluration of the period of �iffordability. 'I�he participating jurisdiction may
structure its recapture provisions based on its program design and market
conditions. The period of affordability is based upon the total �mount of
HON1E funds subject to recnpture described in paragraph (a)(5)(ii)(A)(S) of
this section.
A. The following options for recapture requirements are �cceptable to HUD.
"i'he participating jurisdiction may adopt, modify or develop its own
recapture cequirements for fiUD approvaL [n establishing its recapture
requirements, the participating jurisdiction is subject to the (imitation 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 insufticient to repay the HOME investment due, the
participating jurisdiction can only recapture the net procceds, if any. The
net proceeds are the sales price rninus superior loan repayment (other than
f(OME funds) and any closing costs.
Recaptt�re entlre arnount. "['he participating jurisdiction rnay
recaphire the entire amount of the f-fONiE investment from the
homeo�vner.
2. 2edt�ctron durin,� c ffordubility period. "I'he participating jurisdiction
may reduce the [-[OME investment amount to be recaptured on a
prorata basis for the time the homeowner has owned and occupied
the housing measured against the reyuired affordability period.
Shar�ed net j�roceecfs. (f the net proceeds are not suf�icient to
recapCure the full HOME investment (or a reduced arnount as
provided for in paragraph (�)(5)(ii)(A)(2) of this section) plus enab(e
the I�omeowner to recover the amount of the homeowner's
downpayrnent 1nd any capital improvement investment made by the
owner since purch�se, the participating jurisdiction may share t��e net
procceds. "['he net proceeds are the sales price minus loan repayment
(other than E IOME funcls) an�i closinb costs. "I'he net proceeds may
be divi�led proportionally as set forth in the tollowin�; mathematical
ti�rrr�ulas:
54
HOME InvestmenUHOME Investment HOME amount to be
+ homeowner invesiment x Net Proceeds = recaptured
a u u a u a u a u m u a n m a a u�HOME invescmenc x Net Proceeds = amount to homeowner
+ homeowner investment
�. Owner investment returned first. The participating jurisdiction may
permit the hotnebuyer to recover the homebuyer's entire investment
(downpayment and capital improvements made by the owner since
purchase) before recapturing the HUN1E investment.
Arnoa�nt subject to recapture. "I'he HOME investment that is subject
to recapture is based on the amount of EfONtE assistance that enabled
the homebuyer to buy the dweiling unit. This includes any HOME
assistance that reduced the purchase price from fair market value to
an affordable price, but excludes the amount between the cost oE'
proclucing the unit and the market value of the property (i.e., the
development subsidy). 'Che recaptured funds must be used to carry
out FlON1E-eligib(e 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, Specinl considerations for single fumily properties with more than
one ��nit. If the [-tOME ft�nds are only used to assist a low-income
homebuyer to acquire one unit in single-family housing containing
more than one unit and the �ssisted unit wi(l be the principal
residence of the homebuyer, the affordability requirements of this
section apply onfy to the assisted unit. [f f{ONIE funds are also used
to assist the (ow-income homebuyer to acquire one or more of the
rental units in the single-fami(y housing, the affordabi(ity
requirements of � 92.252 apply to assisted rental units, except that
the participating jurisdiction may impose resale or recapture
restrictions on all ��ssisted u►�its (owner-occupiecl and rental units) in
the single family housing. [f resale restrictions are used, the
at'fordt�bility rec�uirerT�ents on all assisted units continue for the
period of affordability. (f recapture restrictior�s are used, the
ak�tordability requirements on the assistec! rental units may he
[errni��ated, �it the discretion ot� the participating jurisdiction, upon
recapture of the I�{ONtE investm�nt. ((f E(OME funds are used to
assist only the rental units in such a property then tlle requirements of
� 92.252 would apply and the owner-occupied unit �vould not be
subjcct to the incotne targeting or aftordability provisions oF
� 92.25�.)
55
Lense-purchase. HOME Funds may be used to assist homebuyers
through (ease-purchase probrams for existing housing and For
housing to be constructed. The housing must be purchased by a
homebuyer within 36 months of signing the (ease-purchase
agreement. The homebuyer must qualify as a low-income family at
the time the lease-purchase agreement is signed. [f HONtE funds are
used to acquire housing that will be resold ro a homebuyer through a
(ease-purchase program, the E-{ONtE aFfordability requirements For
rental housing in � 92.252 shall apply if the housing is not
tcansferred to a homebuyer within forty-two months after project
completion.
8. Cantract to purchase. [f HOME funds ��re used to assist a homebuyer
who has entered into a contc•act to purcll�se housing to be
constructed, the homebuyer must qualify as a(ow-income family at
the time the contract is signed.
9. Preserving �Jforclability.
(i) Notwithstanding �} 92.214 (a)(6), to preserve the afFordability of
housing that was previously assisted with HOME funds and subject
to the requirements of � 92.254(a), a participating jurisdiction may
use additional F{OME funds to �icquire the housing through a
purchase option, cight of tirst refusal, or other preemptive right before
foreclosure, or to acquire the housing at the foreclosure safe, to
undert�ike any necessary rehabilitation, and to provide assistance to
t1110tIteC homebuyer. "Che housing must be sold to a new eligible
homebuyer in accordance with the requirements of § 92.25�t(a).
Additional HOME funds �i�ay not be used if the mortgage in cietault
was funded with F[OME funds.
(ii) The total amount of original and additional E-iOfv1E assistance
may not exceed the maximum per-unit subsidy amount established
uncler § 92.250. Alternatively to charging the cost to the F{OME
program under � 92.206, the participating jurisdiction may charge the
cost to the HOME program under § 92.207, as a reasonable
administrative cost of its F{OM .F, program, so that the additional
t{OMF_, funds For the ho�ising are not subject to the maximum per-unit
subsidy ainourlt.
b, Rehu��ilitation j�ot involvir�i,� ucquisi�iorl. F{ousit�g that is currently owried by a tamily
��ualities as af�tordab(e housing or�ly it`.
�f'he estitl�ated value of the property, after reh��bilitution, cloes not exccecl 95 percent
of the �r�edian purchase price for the area, described in paragraph (a)(2)(iii) of this
section; anci
�I�he housing is the principal residence of an owner �vhose farnily qualities as a low-
income t�amily at the time f�{(,)�tE: f�iuxls are cornmitted to tf�e P�ousing.
56
c. Ownership interest. The ownership in the housing �issisted under this section must meet
the cieEinition of "homeownership" in � 92.2.
d. �Vew coiastruction without acquisition. Newly constructed housing that is built on
property eurrently owned by a Family which will occupy the housing upon completion,
qualiEes as affordable housing if it meets the requirements under pnragraph (a) of this
section.
§ 92.255 Converting Rental Units to Homeownership Units for Existing Tenants
"t'he participating jurisdiction may permit the owner of E[OME-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 hotneowners in accordance with the
requirements of � 92.254. [f no additional E[ONiE funds are used to enable the tenants to
become homeowners, the homeownership units are subject to a minimum period of
afford�bility equal to the remaining affordable period iPthe units continued as rental units. [f
�idciitional HOtiIE fiinds are used to direct(y assist the tenants to become homeowners, the
minimum period of affordability is the affordability period under � 92.254(1)(4), based on the
amount of direct homeownership assistance provided.
§ 92.256 Reserved
§ 92.257 Religious Organizations
a. Organizations that are religious or tiaith-based �ire eligible, on the same basis as any other
orbanization, to participate in the F[OME program. Neither the federal government nor a
state or local government receiving E'unds under HONtF_, programs sha(I discriminate
against an organiration on the basis of the ocganization's religious character or aftiliation.
Organizations that are dicectly funded under the E-fON(E program may not engage in
inhecently religious activities, such as �vorship, celigious instruction, or proselytization,
as part of the assistance tiinded under this part. [Fan organization conducts such
activities, the activities must be offered separately, in time or location, from the
assistance funded �inder this part, and participation rnust be voluntary for the
beneticiaries of the assistance provided.
f1 religious organiz�tion that participates in the HOME program will retain its
ir�dependence k�rom federal, state, and local governments, and may continue to cacry out
its mission, including the detinition, practice, �nd expression of its reli�ious beliefs,
provicled that it cioes not use ciirect FCOME fiinds to support any inherently religious
activiti�s, such as worship, reli�ious instruction, or proselytization. fliYtong otM��er thir�gs,
faith-based or�;anizations may use space in their facilities, without removir�g religious
art, icons, scriptures, or other religious syirt�bols. [n addition, a I IONtE-funded celigious
organiration retains its authority over its internal gov�;rnance, and it may retain religious
terrt�s in its or�;anization's name, select its board members on a religious basis, a�1d
include religious reterences in its organization's mission statements and other governing
clocuments.
57
d. An organization that participates in the EIOME program shall not, in providing program
�issistance, discriminate �gainst a program beneficiary or prospective pcogram
beneticiary on the basis of religion or religious belief.
e. ((OME funds may not be used for the acquisition, constcuction, or rehabilitation of
structures to the extent that those structures are used for inherently religious activities.
HOME fiinds may be used for the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used tor conducting eligible activities under
this part. Where a structure is used for both eligible and inherently religious activities,
E(ONtE funds may not exceed the cost of those portions of the acquisition, construction,
or rehabilitation that ace attributab(e to eligib(e activities in accordance with the cost
accounting requirements applicable to HOME funds in this part. Sanctuaries, chapels, or
other rooms that a F[ONtE-funded religious congregation uses as its principal place of
�vorship, however, are ineligible for HOIVIE-ftinded 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 regulations governing ceal property
disposition (see 24 CFR parts 8� and 85).
[f a state or local government voluntarily contributes its own futtds to supplement
federally funded lctivities, the state or local government has the option to seg►•egate the
Federal funds or commingle them. However, if the funds are commingled, this section
�ipplies to al( of the commingled funds.
§ 92.258 Elder Cottage Housing Opportunity (ECHO) Units
�i. Genercrl. FiOME funds may be used for the initial purchase and initial pfacement costs of
elcler cottage housing opportunity (ECF [O) units that meet the requirements of this
section, and that are small, Free-standing, blrrier-free, energy-eFficient, ��emovab(e, and
clesigned to be installecl adjacent to existing single-family dwellings.
b. Eligible owners. "i'he owner of a FIOME-assisted ECHO unit may be:
l. The owner-occupant of the single-family host property on which the ECF[O unit
wi(I be located;
A participating jurisdiction; or
A non-protit organiration.
/iligible tenahts. D�iring the ��Ffordability period, the tenant of a HONtE-assisted ECF(O
unit must be an clderly �r disabled tamily as detir�ed in 2�t CFR 5.�403 and must also be a
luw-income Fa�l�ily.
;Ippl�cable re�juirenrenl,s�. "i�he requirements of � 92.252 of this C�art apply to I{OME-
assistec! ECt{O units, with the tollowing rnodifications:
Only one ECFfO unit may be provided per host �roperty.
[�he EC► {O unit owner tT���y choose whether or not to charge the tenant of the ECE {O
unit rent, but if a rent is charged, it must meet the requirements ot' � 92.252.
5n
EYHIBIT "H"
DAV1S BACON REQUIRENtENTS
Federal �abor Standards Provisions u.3. Department of Housfitg
and Urban Development
Office of �abor Relations
Appllcebll�ly
The Project or Program to which lhe construclfon work
covered by lhia contract pertains is being essisted by the
Unitad States ot America and the foilowfng federal Labor
Standards Provisions are included in this Contract
pursuant to lhe provislons applicable to such Federal
assistance.
A. 1. (I) Minimum Wages. All laborers and mechanics
empioyed or working upon the site o! Ihe work, wiil be paid
unconditionally and nol less otten lhan once a week, and
withoul subsequent deductlon or rebate on any account
(Qxcepl such payroll deductions as are permilted by
regulations issued by the Secrelary of Labor under the
Copeland Act (29 CFR Part 3), the Iull amount of wages
and bona fide tringe bonefits (or cash equivale�ts thereot)
due al Ume of payment compuled at ralea nol less than
those contained in Ihe wage determination of lhe
Secretary of labor which is attached hereto and made a
parl hereo(, regardless of any contraclual relationsMp
which moy be alleged lo exlsl belween lhe contractor and
such laborers and mechanics. Contributfons made or
costs reasonably anticipatad for bona tide fringe benetits
under Section I(b)(2) ol lhe Davis-E3acon Act on behali of
laborers or mechanics are considered wages paid to such
iaborers or machanics, subject lo !he provisions oI 29 CFR
5 5(a)(t)(iv); also, regular contrfbutfons made or cosls
incurred tor more than a weekly period (bul not less often
than quarterly) under plans, funds, or programs, whlch
cover the particular weekly period, are deemed to be
constructively made or incurred durinq such weekly perlod.
Such laborers and mechanics shall be pald the appropriate
wage rate and fringe benetils on Ihe wage delerminalion
(or the classi(icallon ol work actually performed, wilhoul
re�ard to skill, except as provided in 29 CFR 5.5(a)(A).
Laborers or mechanics perlorrning work in more than one
classificaUon may be compensated at the rate speci(ied for
Qach classification (or the llme actually worked Iherein:
Provided, That ihe employer's payroli records accurately
set (orth the tirne spent in each ciassitication in which
work is pertormed The wage delerminallon (including a�y
additional classitfcalion and wage rales con(ormed under
29 CFR 5 5(a)(1)(ii) and the Davis-Bacon poster (WH-
1321) shall be posled at all limes by the contraclor and its
subconlraclors at !he site of lhe work in a prominent and
accossible. place where ii can be easily seen by the
tivorkers
(II) (a) Any class ot laborers or mechanics which is not
lialed In tiie wage delermination ,and whlch is to be
employed under Ihe coniracl shall be classi(ied in
conformance wilh lhe wage deletmination NUD shall
approve an add�lional classi(icatlon and wage rale and
fringo benefils therefor only when the fotiowing crileria
have been mel
(1) The work to be perlormed by the clasailication
requestod Is not performed by a classlllcatlon I� the wage
deiermination; and
(2) The classlficaUon is ulilized In the area by the
construcilo� industry; and
(3) The proposed wage ra1e, including any bona fide
fringe benefits, bears a reasonable relaUonship to lhe
wage ralea co�tained in the wage delerminafion.
(b) 1f the contractor and the laborera and mechanic8 to be
Qmployed in the classiiicalion (if known), or ihelr
representatives, and HUD or Its designee agree on the
classiffcation and wage rate (Including the amount
designaled tor fringe benelits whe�e approprfate), a rQport
ot Ihe actfon taken shall be senl by HUD ot its deaignee to
lhe Admi�istrator of the Wage and Hour Divfsion,
Employmen► Slandards Administration, U.S. Department of
Labor, Washinglon, D.C. 20210, The Adminfalrator, or an
authorized representaUve, will approve, modlly, or
disapprove every addilional classification actlo� within 30
days ot recelpt and ao advise HUD or its designee or wlll
noti(y HUD or its designee within the 30-day perlod thaf
addlUonal time Is necessary. (Approved by the Office o(
hlanagement and Budget under OMB control number 1215-
0140.)
(c) In the event lhe conUactor, tt�e leborers or mechanics
to be employed in the ciassillcnlion or their
ropresentalives, and NUD or its desfgnee do not agree on
lhe proposed classificatio� and wage rate (including the
amount desfgnated for fringe bene(its, where approprlate),
HUO or Its designee shall refer the questions, including
the views of all interested purtfes and the recommendatfon
ol NUD or its desfgnee, to the Adminfatrator For
determination. The Administralor, or an authorized
reprasentntive, will issue a dQterminallon within 30 deys of
receipt and so advise HUD or Its deslg�ee or will notify
HUD or its designee within the 30-day period that
addiUonal Ume is necessary. (Approved by the OHice ot
Manac�ement and E3udgot under OMB Conlroi Number
1215-0140.)
(d� The wage rate (including tringe benetlts where
appropriate) determined pursuant to subparagraphs
(i)(ii)(b) or (c) o( (his paragraph, shail be paid lo ail
workers performing work in the classification under Ihis
conlract from the first day on which work is pertormed in
Ihe classifiration.
(ill► Whenever Ihe minlmum wage rate prescribed in the
contract br a ciass ol laborers or mechanic5 includes a
Inn9e benetil which is not expressed as an hourly rate, lhe
conlractor shall elther pay lhe benafit as staled in �he
wage determination or shall pay another bona fide fringo
benefit or an hou�ly cash equivalent thereof.
(Iv) II ihe contraclor does nol make payments to a trustee
or other third person. Ihe contractor may consider as part
form NUO-d010 (06/2009)
Previous ediUons are obsolete Paye t of 5 reL Handbook 1344.1
of the wagea of any laborer or mechanic the amounl o} any
costs reasonably a�Uclpated �n providing bona flda fringe
bonetits under a plan or program, Provided, That the
Secretary of labor has lound, upon the wrltten requesl ot
►he contractor, thal the applfcabla standarda of tha Davis-
Bacon Act have been met. The Secretery of Labo� may
requlre the contracto� to set aalde In a seperate account
assets for lhe meeting oi obligationa under tne plan or
program. (Approved by the Otfica ol Management and
Budget undet OMB Control Number 1215-0140.)
2. Withholding. HUD ot Ita dealgnae shall upan ila own
action or upon written requeat ot an auihorized
representalNe of the Department ot labor withhold or
cause to ba withheld from the contractor under lhls
cont�act or any other Federal contract with the sema prime
contractor, or any other Federally-asaisted contraCt
subJact to Davis•Bacon prevaili�g wage requlrementa,
which Is held by lhe same prfine contractor so much of the
accrued payments or advances as may be considered
necessary to pay laborers and mechanfcs, including
apprenlices, tralnee8 and helpers, employed by tha
contraclor or any subconlraclor lhe full amounl of wages
requlred by lhe coniract in the evenl of fallure to pay any
laborer or mechanic, Including any apprentice, traUee or
heiper, employed or working on lhe sfte of the work, all or
parl oi the wages required by lhe contract, HUD or its
deslgnee may, alter w►itlen notice to the contractor,
sponsor, appllcant, or ownar, lake such action as may ba
nQcessary to cause the suspenslon of any further
paymeni, advance, or guaranlee oi funde untll such
violatlon� heve ceased. HUD or its deslgnee may, atter
wrftten notice to the contractor, disburse such emounts
wfthheld fo� and on accouni ot the contractor or
subcontractor lo ihe respective employeea lo whom they
are due. 7he Complroller General shall make such
dfsbursemenla in Ihe case ot dlrect Davis-Bacon Acl
conirecta.
J. (1) Payroils and baslc recorda. PAyrolis and basic
rocords relaUng Iherelo shail be maintalned by Ihe
contraclor durtng the courae of the work preserved for a
period of th�ee yeara thereafter (or all laborers and
mechanics working at Ihe site o( lhe work. Such recorda
shaU contafn the name, addreas, �nd soclal securify
nurnber of each such workor, hia or her correct
clesaificatlon, hourly rales of wages paid (Inctuding rales
of contributlone or costB anUclpaled tor bona (ide fringe
benetits or cash equivalenls Ihereot ot the lypes descrlbed
in SecUon I(b)(2)(B) of the Onvfa-bacon Acl) daily and
communicated in writing to the laborera or mechanica
affected, and recorda whfch show the costs antiClpated ar
the actual cost incurred in prov{ding such benetits.
Contractora employf�fl apprenticea or trefneea under
approve4 programs shail malntain writtan evidence ot the
registratfon ot apprenticeshlp programa end cer/H(cailon ot
trainee programs, the regfalretion ol the apptenticea and
traineet, and lhe ratlo� and wage rate� preacrYbed in the
appliceble programa. (Approved by the Office of
Management and Budgel under OMB CaMrol Numbere
1215•01�0 and t215-0017.)
(11) (a) The contracl�r ehall submit weekly for each week
in whfch any contract work le performed e copy ol ait
payrolis to HUD or ita deaignea if the agency is a parly lo
the contract, bul if the agency la not such a party, the
conlracior wiil submit the payrolla to the applicanl
sponaor, or owner, at the case may be, for transmisa(on to
HUD ot its dealgnee. The payrolls submitted shall sei out
accurately and Completely all of the iniormatfon requfred
to be mainisined under 29 CFR 5,5(a)(3)(i) except thal fuli
socfel aecurlly numbers and home addtessea ahall not be
included on weekiy tranamlttals, Instead the payrolis shali
oniy need to Includa an Indivldually idenllfying number fot
each employae (e.g., the �ast (aur digits of the employee's
soclal securily number). The requlred weekly payroll
informailon may be submitted fn any Io�m desired.
Oplional Form WH-347 Is aveilable for thia purpoae trom
lhe Wage and Hour Division Web sfte et
htto://www.dol.qov/ese/wh�j/(Qrms/wh3471nstr.htm or fls
successor site. The prime contractor Is rasponslble (or
the submisslon of copies of payrolis by ali subcontractors.
Contractora and subconttaclore shell maint�in the fuli
social secur�ty number and currenl addrass oi each
covered worker, and shall provide them upon request to
HUD or its dealgnee it the age�cy is a party to the
coMract, but It ihe agoncy Ia not such a party, the
conttactor will submft lhe payrolls to tha eppilcani
sponsor, or owner, as the case may be, tor transmiaslon to
NUD or its deaignee, ►he conlractor, or lhe Waga end Hour
Dlvision ol the Department of Labor for purpoaes of an
InveatigaHon or audit ot compliance wilh prevailing w�ge
requirementa. 11 is not a vlolalion of this subparagraph for
a prime cantractor to require a subcontractor lo provide
addresaea and social seCurily numbera lo the prime
cantractor for its own recorda, without weekly submfaslon
to NUD or fts designee. (Approved by the Oftice ol
Management and Budget under OMB Control Number
1215-0149.)
waekiy number of hours worked, deductions made and (b) Each payroi� submitted �hall be accomp�Ned by �
�ctuai wages peid. Whenev�r Ihe Secretary of Labor has "Slatem�nl of Compila�ce," signed by the contraclor or
lound under 29 CFR 5.5 (a)(1)(Iv) that tha wage� o( any subcontr�ctor or hia or her agent who pays or supervisee
laborer or mechenic include the amount o( any costs the paymnnt ol the person� employed under the contracl
reasonabty anUcipated in providing benetits undet a pian and shall certi(y th� Ioliowing:
or program described in Sectton I(b)(2)(B) ol the Davls- (�) Thal the payroll for the payroil period conteins ihe
E3acon Acl, the conitactor shell mainla►n reCorda whfch in(ormaUon required lo be provided undor 29 CFR 5.5
show Ihet lhe commitment (o provide such benelita is
enlorceable, that the plan or program is llnenclaliy �°��������� �he approprfate information is being mai�talned
undar 29 CFR 5.5(a)(3)(i), and that such informatlon la
responaible, and that Ihe pian or program has been correct and complete;
Prnvious adNlons are obsolete lorm HUR-4010 (Qfi12009)
Pr�ge 2 ot 5 re(. Handbook 1344.1
(2) That each laborer or mechanfc (Including each helper.
apprentice, a�d tralnee) employed on the conlract duNng
the payroll period has baen paid lhe fuil weekly wages
earned, without rebate, either directly or indlrectiy, and
Ihat no deductions have been made either directly or
indirectly from the Iuil wages earned, other than
permissible deductio�s as set lorth in 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less
than lhe applicable wage rates and Iringe benetits or cash
equivalents br the classificalion of work performed, as
specifled In the applicable wage determfnatlon
incorporated inlo the con►ract.
(c) The weekly submission of a properly executed
certificaUon set forth on the reverse side ol Optlonal Form
WH•347 shall sntisfy the requirement for submission of the
'Slatemenf of Compllance' required by subparagraph
A.3.(ii)(b).
(d) The lalsitfcatfon of any of the above certilicalions may
subject the contractor or subcontractor to civll or criminai
prosecution under Seclion /001 0( Tille id and Section
231 0l TiUe 31 of the United Slates Code.
(111) The conlractor or subcontractor shall make the
records required under subparngraph A.3.(i) available lor
i�specUon, copying, or transcription by aulhorized
represenlalives o( HUD or its designee or the �epariment
o( Labor, a�d shall permil such reprosentalives to
interview employees during working hours on the job. If
lhe contractor or subcontractor fa11s lo submit the required
records or to make lhem available, HUD or its designee
may, atter written nolice lo the contractor, sponsor,
applicant or owner, take such aclion as may be necessary
to cause the suspenaion of any Iurther payment, advance,
or guaranlee of tunds. Furthermore, (ailure lo submit the
required records upon raques! or lo make such records
available may be grounds for debarment action pursuant to
29 CFR 5.12.
4. Apprenticos and Traineea.
(I) Appronticos. ApprenUces will be permitted to work at
less than Ihe predetermined rale lor the work they
pertormed when they aro employed pursuant to and
individually registered in a bona lide apprenticeship
program regislered wilh the U S. Deparimont o( Labor,
Empioymenl and 7raining Administralion. Of(fce of
Apprenliceship Training, Employer and labor Services, or
with a Slate Appre�ticeship Agency recognfzed by the
Offir.e, or i( a person is employed in his or her first 90
days of probal�onary employment as an apprenlice in such
an apprenticeship program, who is nol individuali
is not registered or otherwlse empioyed as stated above.
shall be pafd not less than the appllcable wage rale on the
wage determinallon (or the classificatfon ot work actually
per(ormed. In additlon, any apprentice periorming work on
the job site In exceas ot the ratlo permitted undvt Ihe
reglste�ed program shall ba paid not less lhan the
appllcabie wage rale on the wage determinelion for the
work actually pertormed. Where a contraclor is performfng
conslrucUon on a project In a locality other than Ihat in
which its program fs reglstered, lhe ratlos and wage rates
(exprassed In percentages ot the journeyman's hourly
rate) specilled I� the contractor's or subconlraclor's
ragistered program shall be observed. Every apprentfce
must be paid al not less Ihan the rate specified in the
reglstered program for the apprendce's level of progresa,
exptessed as a percentage ol the journeymen hourty rate
specNied U lhe applicable wage dotermination.
Apprentices shall be paid Iringe benefits in accordance
with the provisions ot lhe apprenlfceship program. I( the
apprentfceship program does not specify fringe benefits,
apprentices must be paid the tu11 amount of frinc�e benefits
I(sled on lhe wage determination for the applicable
classification. If the Adminislrator determinea that a
dif(erent practice prevails lor lhe appiicable apprentice
ciassiiication, fringea shall be paid in accordance with that
determination. in the evenl Ihe Office of Apprenticeship
Tralning, Employer and Labor Servfces, or a Slate
Apprenliceship Ayency recognized by the Office,
withdraws approval ol an apprenticeship program, lhQ
coniractor wlll no longer be permitled to utlNze
apprentices at less than the applicable predetermined rate
Ior the work pertormod untfl an acceptable program is
approved.
(II) Trainoes. Except as provided in 29 CFR 5.16,
Irainees will not be permilted lo work at lesa than the
predetermfned rate tor the work performed unless they are
employed pursuant ',to and individually registered in a
program which has received prior approval, evidenced by
formal certification by Ihe U.S. Doparlment of Labor,
Employmanl and 7rainfng AdminlslraUon. 7he ratio of
trainees lo Journeymen on the job sile shall not be grealer
(han permitted under the plan approved by the
FmploymQnl and Training Adminisiration. Every lrainea
must be paid at not less than the rate specified in the
approved program for lhe trainee's level of progross,
expressed as a percentage of ihe joumeyman hourty rale
specified !n lhe applicable wage determination. Tratnees
,hall be paid (ringe benelils in accordance with the
y provisions of !he trainee progrAm If ihe traines program
req�stered in ihe program, bul who has been certifiQd by ����g �ot mention fringe benelits, ltainoes shall ba paid
ihe l�ifice o( Apprenticeship fraining, Employer and labor �he lult amounl of fringe benefils lisled on th� wa�e
Serv�r,es or a Slate Apprenticeship Agency (where delerminaUon unless Ihe Adminfslralor of the Wage and
appropnale) lo be eligibie for probationary employment as f�our Division delermines thal there is an appronticesh�p
an apprentice The allowable ralio ol apprentices !o P�ogram associated with the corresponding journeyman
�ourneymen on the �ob sile in any cralt classificalion shail �y�9e rate on lhe wage determinadon which provides for
not be grealer ihan ihe ratio permilted lo Ihe contractor as �ess (hnn fuit (ringe benefits lor apprentices. Any
lo Ihe ent�re work lorce under Ihe reglsiered proqram Any empioyee lisled on the payroll at a lrainee rale who is not
worker lisled o� a payroil at an apprenfice wage rate, who registered a�d parlicipating in a training pla� approved by
Pcevious editions are obsolete (oRn NUQ-4010 (06/2009)
Page 3 nl 5 ref. Handbook 1344 1
lhe Employment and Training Administration shali be pald
nol less than the appllcable wage rafe on lhe wage
delerminatlon tor the work actually perbrmed. In Additlon,
any trainee performing� work on the job site In excess oi
the ratio permlited under the regiatered program shall be
paid not less lhan the applicable wage rate on the wage
determination fot the work aclually perfo�med. in !he
event the Employment and Training Adminislratlon
withdraws approval ot a tralning program, the contraclot
will no longer be permitted to utillze trainees at less Ihen
the applicabte predetermfnod rate tor the work peiformed
unlil an accepteble program Is apptoved.
(II1) Equal employmant opportunily, The utllizalion of
apprenticea, frainees and journeymen under 29 CFR Parl 5
shall be in conformity with the equal employment
opportunity requirements of Execulive Order 11248, as
amended, and 29 CFR Part 30.
B. Compllance with Copeland Act roquirements. The
contraclor sheil comply with the requirements oi 29 CFR
Part 3 which are incorporated by reterence In Ihis conlract
8. Subcontracta. The contractor or subcontractor wlil
insert in any subconlracts ihe clauses contained fn
subparagraphs t ihrough 11 in lhia paragraph A and such
othor clauses as NUD or its designee may by appropriate
insirucUona requfre, and a copy ot the applicable
prevailing wage decislon, a�d nlso a ciause requiring the
subcontractora Io include these clausea in any lower fier
subcontracls. The prime contractor shall be responsible
for ihe compliance by a�y subcontractor or lower lier
subcontraclor with all the conlract clauses in Ihis
paragraph,
7. Contrdct torminatlon; dobarmont. A breach o( Ihe
contract clauses in 29 CFR 5.5 may be grounds for
termination ot the contrecl and for debarment as a
contractor and A subcontractor as provlded in 29 CFR
5.12.
8. Compliance wlth Dav�s•Bacon and Rolated Act Roqulromonta.
All rulinga and Interprelatiuna o1 lhe Oavis-Bacon and
Related Acta contalned in 29 CFR Parts 1, 3, and 5 are
hareln incorporated by reference in ihis conlract
fl. Dlsputea concerning labor standerde. Dispules
arising out of the iaboi stondards provisions of Ihis
conlracl shall not be subJect lo the general disputes
clause of ihls contrac(. Such dispufes shall be resolved in
accordance wilh tha procedures ol the Department of
labor sel forih in 29 CFR Parts 5, p, and 7 bispules
withfn Ihe meani�g o1 this cl��se include disputes belween
Ihe co�lraclor (or any oi i(s subcontractors) and HUD or
its designee, ihQ U.S �epartment ot Labor, or (he
employees or lheir represent�tives
10. (1) Cartlflcatlon ot EIIgIbIUty, E3y entering inio this
conUact Ihe conlractor certifies that neither it (no� he or
she) nor any parson or firm who has an inferest in the
contractot's hrm is a person or firm ineligible (o be
awarded Governmenl conlracts by vlifue of Section 3(a) of
the D�vis-E3acon Act or 29 CfR 5 12(a)(t) or to be
awarded HUD conlrects or particfpate in HUD programs
pursuaM to 24 CFR Part 24.
(11► No part ol this contract shall be subcontracted to any
person or firm ineligible for award of a Government
contract by virtue ot Section 3(a) of the Oavfa•Bacon Act
or 29 CFR 5.12(a)(1) or to be awarded HU� contracta or
particfpate in HUO programs pursuant to 24 CFR Part 24.
(ill) The penalty for making talse statements is prescribed
in the U.S. Criminal Code, 16 U.S.C. 1001. Additfonally,
U.S. Criminal Code, Sectfon 1 01 0, 71t1e 18, U.S.C.,
"Federal Housing Adminislration transactlons', provides in
part: 'Whoever, for the purpose of ... Influencfng In any
way the actlon of such Administratlon...., makes, utters or
pubiishes any statemant knowing the same to be false.....
shali be Ilned nol more lhan 55,000 or imprisoned not
more than two years, or both.'
11. Complalnts, Procoedings, or Teetimony by
Employoes. No leborer or mechanlc to whom Ihe wage,
salary, or other labor standards provislons o! this Contract
are appliceble shall be discharged or in 8ny other ma�ner
discriminated against by the Contraclor or any
subcontractor because such employee has flled any
complaint or instituled or caused ta be (nstituted any
proceeding or has tesUlied of is about to (eslify in any
proceeding undQr or relating to the labor standards
applicable under this Contract lo hfs employer.
B. Contract Work Hours and Satety Standards Act The
provislons o( this paragraph B are applicable where the amount of the
prime conlract exceeds $100,000. As used in lhis paragreph, the
terms "laborera" and "mechan(cs" inGude watchmen and guards.
(1) Ovo�Ume requlremonta. No contrador or subconlractor
contrading for any parl of Ihe conlract work which may require or
(nvolve tho empioyment ot laborers or mechanics shall require or
permit any such laborer or mechanlc in any workw�eek in which tha
individuai is emptoyed on such �+rork to woric (n excess ot 40 hours in
such workweek unless such laborer or mechaNc receives
compensation at a rate nol less than one and one-hali tlmes iha baslc
rale ol pay for all hours worked i� excesa of 40 hours in such
workweak.
(2) Violetlon; Ilability for unpald wapea; Ilryuldated
damages. In ihe evont ol any violation of the clause set
torth fn subparagraph (i) of lhis paragraph, the contractor
and any subconlractor responsiblo therefor shall be liable
►or the unpaid wagos. 1� addfHon, such conlractor and
subcontractor shall be lieble to lhe Unilad States (in lha
case of work done under coMract (or Ihe Disirict ol
Columbia or a terrilary, to such Diatrfct or to such
territory), tor liquidated damac�ea. Such liqui�iated
damages shall be computed with fespeCl to ttaCh irZAividu�l
labore� or mechanic, includfng w�tchmen and guards,
employQd in violation of the clausQ se1 torlh in
subparagraph (1) of this paragraph, in (he sum oi $10 for eacti
calendar dey on which such individual was required or permilted to
work in excass ol the standetd workweek of 40 hours vnlhpui payment
of Ihe overtime wac�es required by the clause set forlh fn sub
paragraph (1) ot this paragraph
Pravious ecfdions are obsolele
(crm NUD�d010 (08/2U09)
Page 4 0l 5 reL Handbook 1344 1
(3) Withholding fo► unpeld wegas and Ilquldated
damagc�. HUO or Ita deslgnea shall upon Ils own action
or upon wrltten requeat ot an authorized representative of
ihe Department oi Labor withhold or cauae lo be withheld,
(rom any moneys payable on account of work performed by
the conlractor or subcontrector under eny auch contract or
any other Federal contract with the �ame prime contract,
or any othet Federelly-assisted contrecl sub)ecl to Ihe
Cont►act Work Nours end Safety Standarda Act which Is
held by lhe 9ame prime coMraCtor such sums aa may be
determined lo be necesaary to satlafy any Iiabflllles of
such contractor or subcontractor (ot unpald wagea and
Ilquldated damagee as provided In the clause set forth in
subparagraph (2) ol ihia paragraph.
(4) 9ubcontracts. The contractor or subcontractor shall
fnsert In any subcontracta lhe clausea set lorth in
subparagreph (i) through (�) of this paragraph and also a
clauae requiring Ihe subcontractors to includa Ihese
clauaea In any lower tier su6conlracts. The prime
conlraclor shall be reaponsible for compllance by any
subcontractor or lower t�er subcontraclor wlth the clauses
set forth in subparagrapha (1) lhrough (4) ot this
peragraph.
C. Health and 9efaty. The prov(slons o( ihia paragraph C are
applfcable whero the amourri oi the prime contract exceeds 5100,000.
(1) No labore� or mechanic shall be raqulred to work In
surroundinga or under working condltiona which aro
unsanitary, hazardous, or dangeroua to hla heaith and
sa(oly as dettermfned undor conslruclion sa(ety and heailh
sta�darda promulgated by the Secretary oI Labor by
regulaUon.
(2) The Contractor shall comply with all reflulatfona
isaued by the Secretary ot Labor pursuant to Titlo 29 Part
1920 and (ailure to comply may resull in imposltlon of
sancllona pursuant to the Contracl Work Hours a�d Safety
Slandarda Act, (Publlc law 91•54, 83 Stat 98). ZO USC
3701 �ysea.
(3) Tha contractor shall Include the provislons o( thls
purngreph in overy subcontract so that such provlaiona wiii
be binding on each subconiractor. The conlractor shall
lake such ectlon with respect lo any subconiraclor as the
Secretary of Housing and Urban DevelopmeM ar tt�e
SecrQlary of Labor shall dlrect as a maans ol Qnforcing
such provislons.
Previous edttions ere obsolote foRn HUD�-44010 (0812W9)
Pege 5 of 5 rel. Hotxlbot�k 1349.1
EYHIBIT `�H-1"
WAGE DECISION
. I�a��.1 of�3
t��r►e�al. D��is�on �Tutt���t: 'T�4130Q�5� t?1lA�/2t}l� 'i'XX.�$,
Supers�ded Gener�l C?�aisiorr. Ntunbers `��42012n(125 ' .
St�t�i: T�xB�� '
Construetian `Cypet Et+��id�nti�i
C�unt�.�sz �7ohnaoa, �arker and Tar�ant C�3un�i�s i�s T�xa�.
R�sidentfa,� Pzoj�ct�t conaistinq of' sinqle fami.Ly hamera �nd
�patrtments; �p� trs `�nd inei,uding 4 �terrie�.
Modiiication Nwnber publi�ation 0at�
0 pl/04/2013
�' �U`TX1990�a2C�' 04/02/199(i
Rate� �ring�s
CARPLNTEtt S�xcsludinq drywal�
h�sn�ing;and fox�m sertinq).......$ 9.315
cEtwt�N'T taASONIC�NeRE`P�
E'INISHEFt {Ex�ludinq Parm
�e�:ti:n�}) . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.48
DFiYWALL HANG�R.. .................9 g.n0
ELECTFtYCIAlV......................5 10.�19
E'orm SetCer ......................5 9.199
HVAC wECHANIC (in�ludinq
duct, �xc�ludinq pipe work).......$ �3.337
4abor�r, common ..................3 7.25
P�inters:
��tush .......................$ 8.85
Sprcty .......................$ 10.a0
PLU;'�iF3E:R ( Including H�lAC ���c3RK) ....� 10. 087
:?��4e�Rr Zn�.Lt�dinq �3u�ir �Jpr
i:��r�or�i�icsn and Sinqir� �Ly
?r�r��� ............................5 �3.+i3�i
Sh��C °�!e�,�l 'raork�r (E�cludinc�
'r?VA�-<iuCt t�eork) . . . . . . . . . . . . . . . . . . S l4. lUJ
PTL� SETTER ......................5 11.5�
r�vcK C�EtI�rF�2 . . . . . . . . . . . . . . . . . . . . . a 7. z5
ri�LDEEtS - 2�ceive r��te prp9c�ri.t��d Eor cr�ft �Serfocmin�
��7�ratian to �,rhi<�h �.�el�:iinq is i�cidr�nt<al.
---I��tp�//�r�.�v�r.w�r�l.�a��l�v<i�all�agit��J�l�avi�abs.�ru"�rX2�.�ivb'1v-�1----------------------- �d/191�Zi1i3
P�ge 2 of 4
WELDERS - Receive rate prescribed for craft performfng
operation to which welding is incidental.
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Unlisted classifications needed for wark not included within
the scope of the classi�ications listed may be added after
award only as provided in the labor standards contract clauses
(29CER 5.5 (a) (1) (ii)).
----------------------------------------------------------------
The body of each wage determination lists the classification
and wage rates that have been Found to be prevailinq for the
cited type(s) of construction in the area covered by the waqe
determinatian. `I'he classiFications are listed in alphabetical
order of "identifiers" that indicate whether the particular
rate is union or non-union.
Union Tdentifiers
An identifier enclosed in dotted lines beginning with
characters other than "SU" denotes that the union
classification and rate iiave Found to be prevailinq for that
classiFication. Example: PLUM019B-005 07/O1/2011. The first
iour letters , PLUM, indicate the international union and the
Eour-ciigit number, 0198, that Pollows indicates the local union
number or district cauncil number where applicable , i.e.,
Plumbers Local 0198. The next number, 005 in the example, is
an internal number used in processinq the waqe determination.
The date, 07/01/2011, following these characters is the
effective date nf the most current negotiated rate/collective
barga.ining agreement which would be July L, 2011 in the above
example.
Union prevailing wage rates will be updated to rePlect any
chanqes .in the collective bargaining agreements governinq the
rates.
0�)00/3999: we.iqhted union waqe rates wi11 be published annually
each January.
N�.�n-Union Identi.C.ier.s
ClassiEications listed under an "SU" I.dentiEier were der.ived
Erom survey cjata by computinq averaqe rates and are not union
rates; however, r_he clata used in computinq these rates rnay
include both «n.ion and non-union data. Example: SULA2004-007
5/l3/?010. SU indirates the ratns are not union majority r-stes,
LA indicates r_he S�ate oE Louisiana; 2004 is rhe year oE the
:>iirvey; and 007 is an internal number ��sed in producinq the
w�qe cietermination. A 1993 or later date, �/13/2010, indicates
the r_1.assiEications and rates under that icientifier were issued
http://www.w�ol. ;ov/wcloi/sca#iles/d�visbacan/�'?C25.dvb?v-0 <�� � y�z� I 3
P�ge 3 of 4
as a General Waqe Determination on that date.
Survey wage rates will remain in ePfect and will not change
until a new survey is conducted.
__--------------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1.) Fias there been an initial decision in the matter? This can
be:
'' an existinq published wage determination
* a survey underlying a waqe determination
* a Wage and Hour Division letter settinq Porth a position on
a wage determination matter
" a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
Eor summaries of surveys, should be with Y.he 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. IP 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 Detecminations. Write to:
E3ranch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
�iVashington, DC 20210
2.) Tf the answer to the question in 1.) is yes, then an
inCerested party (those atiecCed by the act.ion) r,an request
review and recons.ideration Erom r_he Waqe and Hour Administrator
(See ?.9 CER Part 1.8 and 29 CER Part 7). �Ar.ite ro:
'rJaqe and Haur Administrator
U.S. Department oE Gaboc
?_00 Constitution Avenue, N.`rJ.
;9ashinqton, UC 20210
`Che requ�st should be accompanied by a Eul.l statement oE rhe
i_r�ter.�sted par�y'� posiCion and by any ink�rmation {�,�aqe
payment �:iat�a, projpct description, area pcactice material,
etc.) rhat rhe requestor consider:� relevant to the issile.
3.) tE !:he ciecision of the Administrator is not t,�vorable, an
interested p3rty may appeal direcCLy r_o the A<iministrative
Review 6oard (Eormerly the 'rlaqe Appeals f�oard). Write to:
Administra�ive ReviPw f3oard
U.S. Department oE Labor
7_00 �,onstitution Aveniie, N.`r�,
'rdashinqton, DC ?0"1_10
http:/l�vww.w�ic�Lgov/wdollscaFles/davisbawru"1'X25.dvb7v=0 4/I 9/2013
Paga 4 of 4
4,) Al.l decisions by the Administrative Review eoard are final.
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END OE GENERAL DECISION
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EYHIBIT "H-2"
CONTItACTOR INFORMATION FORI�I
Ctty of Fort �Vorth
Community Development Block Grunt (CDBG)
ConstrucNon Project�
CONTRACTOR INFORiV1ATION
Date:
Project:
Contractor:
Address:
City:
Telephone:
Federal I,D. i#:
Ot�icers of the Corporation:
President:
Vice President:
S ecretary:
Treasurer:
[f sole ownership or partnership, list owner(s):
Fax:
[ certify at the time of execution, hereof, neither my company nor rny corporate c�fhcers (if
incorporate,d) �re listed in the list �f Debarred, Suspended, �ind tne(igible Contractors maint��ined
by ti�e U,S Department oti Housing and Urban Devclopment (HUD).
Signature:
EXHIBIT "H-3"
SUI3CONTI2ACTOR INF'ORMATION FOR1�I
Clty of Fort Wurth
Communtty Development Block Grr�nt (CDBG)
Construction Project�
SUBCONTRACTOR INFORMA'TION
Date:
�'roject:
Subcontructor:
Address:
City:
Telephone: �
�'ederal t.D. #:
Otiicers of the Corporation:
Presi<ient:
Vice President:
SecretAry:
Treasurer:
Cf sole ownership or partnership, list owner(s):
Fax:
[ certify at the time of execution, hereot; neither my company nor nty corparate ot�icers (iF
i►icorpor�teci) are listed in the (ist of Debarred, Su.gp�,ynded, and [neligible Contractar� maintaineci
by the U.S Deplrtment of ([ousin� and Urban Deve(opment (HUD).
Si�nature:
EYHIBIT "H-4"
L��130R I2ELATIONS GUIDE
U.S. Department of Housing
and Urban Development
Labor Relations Desk Guide
LROI.DC3
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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 coniract 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. HUD's O�ce of l.abor 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 general administrative oversight of alt 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 first 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 HUD 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 Office of Labor l�elations on-line:
i�tt�://��r�vw.hud rlcav/offic��/olr
Obtain additional copies of this Guide and other publications at our website or by telephone
from HUD's Customer Service Center at (800)767-7468.
TABLE OF CONTIENTS
� -•. •�
CHAPTER 1 LAWS, REGULATIONS, CONTRACTS
APJD RESPONSIBILITIES .................................................................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 MOW TO COMPLY �lVITH LABOR ST,�NDARDS
AND PAYROLL REPORTItdG REQUIREMEN7S .............................2-1
SECTION - i THE BASICS
2-1
2-2
2-3
�
THE WAGE 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. HUD review ........................................................................................................2-3
d. DOL decision ...................................................................................................... 2-3
CERiIFIED 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 retentian .................................................................................................
2-5
f. Payroll inspection ...............................................................................................
2-5
DAVIS-E�ACON D�FINITIONS ................................................................................2-5
a. Labarer or mechanic ..........................................................................................2-5
b. Employee ...........................................................................................................
2-6
c. Apprentices and trainees ....................................................................................2-6
d. Prevailing wages or wage rates ......................................................................... 2-7
e. Fringe benefits .................................................................................................... -
27
f. Overtime .......................................................... ................................ . . .
........... . . ... 2-7
g. Deductions ......................................................................................................... -
2 Fi
h. Proper designation af tr�de ................................................................................2-8
i. Site of work ......................................................................................................... 2-8
�
SECTION - II REPORTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT ....................................................................2-9
a. Project and contractor/subcontractor 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. Statement of compliance ....................................................................................2-11
j. Signature ............................................................................................................2-11
SECTION III - PAYROLL 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 F�R 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
CHAPTER 3 LABOR STA{dDARDS DISPUTES, AD�AIMISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCRqVV
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
A�PENDICIES
ACRONYMS AND SYMBOLS ...........................................................................................A-1
DAVIS-BACON - RELATED WEB SITES* ........................................................................A-2
HUD-4720, ProJect Wage Rate Sheet .............................................................................. A-3
WH-347, Payroli Form/Statement of Compliance ..........................................................A-4
u
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The following paragraphs describe what the labor standards laws and regulations actualiy say
and what they mean to you on HUD projects:
1-1 DAVIS-BACON AND OTHER LABOR LAWS.
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 F'ederal 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 itself 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, the 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 of 1996. The Related Acts are
often referred to as the Davis-Bacon and Related Acts or DBRA.
..._
b. The Contract Work Hours and Safetv Standards Act (CWHSSA�, 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 contracts of $100,000 or less. In addition, same HUD
prajects are not covered by CWHSSA because some HUD programs only provide loan
gu�rantees or insurance. CWHSSA also does not �pp{y to canstruction or rehabilitation
contracts that are not subject to Federal prevailing wage rates (e.g., D�vis-�acon wage
rates, or HUD-determined rates for operation of public housing and tndian block grant-
assisted housing). However, even though CWHSSA overtime pay is not required, Fair
l.abor Standards Act (FLSA) overtime pay is probably still applicable. (See �Iso Labor
Relations Letter SL-95-01, CWHSSA Coverage threshold for overtime and health and
safety pravision, available on-line at the NUD Labor Relations Library at: www.hud.gov/
offices/olr/library.cfm)
t-1
c. The Coaeland Act (�ttti-Kickback Ar.t►_ The Copeland Act makes it a Federal crime
for anyone to require any laborer or mechanic (employed on a Federal or Federaliy-
assisted project) to kickback (i.e., give up or pay back) any pa�t 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 (FLSA�, 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 Tif/e 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 your 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 rtor 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/allcfr/Title 29,htm
�► ; •� �► -;� ';• •k
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
�vith 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 Contr�ct for Constructinn,
which is issued primarily for FHA multifamily housing and other construction projects
1-2
administered by HUD; the HUD-4010, Federal Labor Standards Provisions, which is used
for CDBG and NOME projects, and the HUD-5370, General Conditions of the Contract for
Construction or the HUD-5370-EZ (construction contracts <_$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
� �
. '•� • , ': ► '• •► '_ •�
The principal contractor (also referred to as the prime or general contractor) is responsible
for the full compliance of all employers (the contractor, subcontractors and any lower-tier
subcontractors) with the labor standards provisions applicable to khe praject. 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, betow.)
To make this �uide easier io understand, the ierm "prim� contractor" will mean the
principal contractor; "subconfractor" will mean all subcontractors incluciing lower-tier
subcontractors; and the term "employer" will mean all contractors as a group, including
the prime contractor and any subcontractors and lawer-tier subcontractors.
1-3
it�-��'•��LZL • . •► ': _'u � :: •:
The contract adminisfrator is responsible for the proper administration and enforcement
of the Federal labor standards provisions on contracts covered by Davis-Bacon
requirements. We use this term to represent the person (or persons) who wili 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 Decislon) 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 actians 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
CMAPTER 2 HO�! TO COMPLY �/IiFi LABOR STANDARD�
AND P�YROLL REPORTING REQUIRENtEiVTS
WHERE TO START? Now that you know you're on a Davis-Bacon project and you know
some of the legal and practicai implications, whaYs next?
SECTION i - THE BASICS
2-1 TN�WAGE DECISION.
Davis-Bacon tabor 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 staf� if you have
any trouble reading the wage decision or finding the work classification(s) you need.
To make reading lengthy wage decisions easier for you, the contract administrator may
prepare a Project Wage Rate Sheet (NUD-4720). ihis Sheet is a one-page transcript that
�Nill shaw only the classifications and wage rates for a particular project. A blank copy c�f
a Project Wage Rate Sheet is provideci For yeu in the appendix. Also, a fillable version of
this form is available on-line at HUDCIips (see web address in theAppendix). Contact the
contract administrator monitoring yaur project for assistance with a Project Wage Rate
Sheet.
?_-t
b. Posting 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 titled 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 praject and where the wage decision and poster won't be destroyed by
wind or rain, etc. The Employee Rights under the Davis-Bacon Act poster is available in
English and Spanish on-line at NUDCIips (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:
The requested 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 work that will be performed by the requested classification is not already
performed by another classification that is already on the wage decision. (In other
words, if there already is an Electrician classification and wage rate on the wage
decision you can't request another �lectrician classification and rate.)
3. The proposed wage rate for the requested classification "fits" with the other wage
rates already on the wage decision. (For example, the wage rate proposed far
a krade classification such as Electrician must be at least as much as the lowesi
wage rate far nther tr�de classifications alre�dy contained in the w�ge decision.)
And,
4. The workers that will be employed 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-�
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 local
agency, the agency will send the request to the HUD Labor Relations staff.) If you are a
subcontractor, your request should also go through the prime contractor. All 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 NUD 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 �nds 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 DOI..
If the HUD Labor 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 DO�.
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 instructions about
how to ask for DOL reconsideration if you still want to try to get your recommendation
approved.
It's always a goed idea to talk to the contract administrator before submitting an additiona!
classification and wage rate request. The contract administrator ran offer suggestions
and advice that may save you time and increase the likelihood that DOL will �pprove yaur
request. Usually, the contract administrator can give you an idea about what the DOL will
finally decide.
2-3
�=�:i-�T�CX�l7_1'T:��l�I�f���I:i��
You'il 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 �rm has
compieted its work. It's always a good idea to number the payroli 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. Pay,roll 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" �avrolls� "No work" payrolls may be submitted whenever there is a
temporary break in your work on the project, for example, if your firrn is not needed on
the project right now b�t 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 administra#or to let them know about the break in work and to c�ive
an approximate date when your firm will return to the project. If you number payrolls
c;onsecutively or if you send a note, you do not need to send "no work" payrolls.
/
If you number yaur payroll reports consecutively, you do not need to submit "no work"
payrolls!
� /
�-a
d. Pavroll review and submission. The prime contractorshould review each subcontractor's
payroll reports for compliance prior to submitting the reports to the contract administrator.
Remember, the prime contractor is responsible for the full compliance of all 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 repo�ts for any project must be
submitted to the contract administrator through the prime contractor.
An alert prime contractor that reviews subcontractor payrol! submissions can detect any
misunderstandings early, prevent costly underpayments and protect itself from financial
loss should underpayments occur.
e. Payrall 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. Payroll 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 ta complete the weekly payroll forms, we need to review a couple
of definitions. These definitions can help you understand what will be required of you:
a. Laborer 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.
VVorkina Far�m�n. For�men or suparvisors that regularly spend more than
20% of their iime performing construction work and do not meet the excl��sions
in paragraph 2 below are covered "laborers" and "mechanics" for labor stanclards
purposes for the time spent performing construction work.
2. Exclusion�. People whose duties are primarily administrative, executive or
clerical are not laborers or mechanics. Examples include superintendents, o�ce
staff, timek�epers, messengers, etc. (Contact the contract administrator if you
have any questions about whether a particular employee is excluded.)
2-5
b. Em I�oyee. Every person who performs the work of a laborer or mechanic is "employed"
regardiess of any contractual relationship which may be aileged to exist between a
contractor or subcontracto� 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-empioyed laborers and mechanics.
For more information about working subcontractors, ask the contract administrator or
your HUD Labor Relations Fieid Staff for a copy of Labor Relations Letter LR-96-01,
Labor standards compliance requirements for self-empioyed laborers and mechanics.
Labor Relations Letters and other helpful Labor Relations publications are availabie at
HUD's Labor Relations web site (see the list of web site addresses in the Appendix).
c. A�prentices and trainee�, 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. �'rabatign�a�prenkice 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.
2. Pre-aap�ntic�. A"pre-apprentice", that is, someone who is not registered in a
program and who hasn't been DOL- or SAC-certifled for probationary apprentic�ship
is not considered to be an "apprentice" and must be paid the full journeyman's rate
on the wage decision for the classificatian of work they perform.
3. Ratio of a�arentices and traineP4 to journ�yme" The maximum number of
apprentices or trainees that you can use on the job site cannot exceed the ratio of
�pprentices 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 hourly 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 classification, 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 su�cient 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 ar 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 for 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/hour) 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
d�cision, or you could pay �15 in base wage with no fringe benefits, or you could pay $12
basic plus $3 fring� benefits. You can also off-set the �mount of the base wag� if you pay
mare in fringe benefits such as by �aying or $9 basic plus $6 fringe benef�ts; as long as
you meet the total amount. The amount of the base wage that you may off-set with fringe
bene�ts is limited by certain IRS and FLSA requirements.
f. Overtimes Ove�time hours are defined as all hours worked on the contract in excess of
40 hours in any work week. Overtime hours must be paid at no less than one and one-
half times the regular rate of hasic pay plus the straight-time rate of any required fringe
benefits.
?_-7
g. Deductions. You may make payroll deductions as permitted by DOL Regulations 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, ta our example above where the wage decision requiring a$15 tatal
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. Prot�er 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.
1. Split-classification. If you have employees that perform work in rnore than
one trade during a work week, you can pay the wage rates speci�ed for each
classification in which work was performed only if you maintain accurate time
records showing the amount of time spent in each classification 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.
i. Site of 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 ather adjacent
or virtually adjacent property used by a contractor or subcontractor in the construction af
the praject, like a fabrication site that is dedicated exclusively, or nearly so, to the project.
2-£3
SECTION II - REPORTING REQUIREMENTS
E'��.�i�u' ► ;'_ :• :_'�.
What information has to be reported on the payroll form? The weekly payroll form doesn't
ask for any information that you don't aiready need to keep for wage payment and tax
purposes. For example, you need to know each empioyee's name; his or her work
ciassification (who is working 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.
a. Proiect and cvntractor/subcon#ractor 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. EmglQyee information Effective January 18, 2009, payrolls shall not report employee
addresses or full Social Security Numbers (SSNs). Instead, the 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 contractars and subcontractors) must maintain the current address
and fuil 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. DOI. has mndified form WH-
347, Payroll, to accommodate these reporting requirements.
c. �Nork cl�ssification Each employee must be classified in accordance with the wage
c�ecision based on the type of work they actually perform.
2-9
1. gg�rentices or trainees. The first payroll on which any apprentice or trainee
appears must be accompanied by a copy of that apprentice's ortrainee'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 shalt also accompany
the first payroll on which the first apprentice or trainee appears.
2. Split classifications, 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.
Piece-work. For any piece-work employees, the employer must
compute an effective hourly rate for each employee each week based
upon the ernployee's piece-work earnings for that week. To compute
the effective hourly rate, divide the piece-work 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
effective hourly rate changes from week-to-week, only that the rate is no less than
the rate on the wage decision for the classification of work performed.
F�emember, the overtime rate is computed at one and one-half tim�s the basic rate of pay
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%z) +$5 =$20/hour.
f. Grvss wac�es earn�dR Show the gross amount of wages earned for work performed on
this project. Note: For emptoyees with work hours and earnings on other projects, you
may show gross wages for this project over gross earnings all projects (for example,
$425.40/$76d.35) and base deductions and net pay on the "all projects" earnings.
2-10
g. Deductions. Show the amounts of any deductions from the gross earnings. "Other"
deductions shouid be identi�ed (for example, 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 compliance. 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 bene�t rate to the basic hourly rate of pay. If you are
paying a portion of the required fringe benefit to programs and the batance 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 employee data.
�
�
Sig,nature. 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 ather than a
principal) should be submitted with the iirst payroll signed by such an agent. Signatures
in pencil; signature stamps; xerox, pdf and other facsimiles are not acceptable.
2-11
SECTION III - PAYROLL REVIEWS AND CORRECTiONS
. •►�' _► : ►
The contract administrator or other inspector may visit the project site and interview
some of the workers concerning their empioyment on the project. The DOL may also
independently conduct its own reviews (see 1-5). In addition, the contract administratorwill
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 dis�uption
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. pLQjg�t �,�yrvll 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.
� � �� :• ::•: _�� • e � •;- •►
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. Inadeq,uate �a.y.�oll infiarm�tion. If an alternate payrotl format used by an employer (such
as �ome computer payrolls) is inadequate, e.g., dnes not contain all of the necessary
information khat would be an the optional forrn WN-347, the employer will be �sked to
resubmit the payrolls on an acceptable form.
b. Missing�entifiGatic�n numbe s If the first payrotl on which an emptoyee appears does
not contain the employee's individually identifying number, the employer will be asked
to supply Ihe missing information. This information can be reported on the next payroll
submitted by the employer if the employer is still working on the project. Otherwise, the
�mployer will be ask�d to submit a correction certified payrall.
2-12
c. Incomplete �ayrolls. If the information on the payroil is not compiete, for example, if
work classifications or rates of pay are missing, the employer will be asked to send a
correction certified payroll.
d. Classiflcations. If the payrolis show work ciassifications that da not appear on the wage
decision, the employer will be asked to reclassify the employees 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 employer 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.
Aaqrentices and trainees� If a copy of the employee's registration or the approved
program ratio and wage schedule are not submitted with the �rst payroll on which an
apprentice or trainee appears, the employer 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. O���ime. If the employees did not receive at least time and one-half for �ny overtime
hours 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 reskitution for alt overtime hours worked on the project. The
employer may also be liable to the United States 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
FL.SA overtime violations. Also, the contr�ct administrator may refer the matter to
the DC�L �or further review.
h. C�rnputatinn�. If the payrall computatic�ns (hours warked time� r�te of pay) or ext�nsions
(c�eductions, net pay) shaw frequent errors, the empbyer will be asked to take greater
r,are. Wage restitution may be required if underpayments resulted from the errors.
Dedu�tions. If there are any "Other" deductions that are not identified, or if employee
authorization isn't provided, or if lhere is any unusual (very high, or large number)
deduction activity, the employer will be asked ta identify the deductions, prnvide employee
authorization or explain unusual deductions, as necessary.
2-13
HUD does not enforce or attempt to provide advice on'empioyer 'obligations to make
deductions frorn empioyee earnings for taxes ar Social Security. However, HUD may
refer to the IRS or other responsible agency copies of certified payroll reports that show
wages paid in gross amounts (i.e., without tax deduction) for its review and appropriate
action.
_ _ - - -- _ - ---
_— _. _ ___/
j. Frinq� 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. Signature, 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 not 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 comaarisons. 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 certifi�d �ayroll. 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.
: • ► •: . � � :': ► � :
Where underpayments of wages have occurred, the employer will be required to pay
wage restitution to the affected employees. Wage restitution must be paid promptly in the
full amounts due, less p�rmissibl� and authorized deductions. All wages paid to labarers
and mechanics for work performed on the proj�ct, including wage restitution, must be
rPported on a certified payroll repart.
a. Notificatian to the Employer/Prime contractor. The contract administrator will notify the
employer and/or prime contractor in writing of any underpayments that are found cluring
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 ta the contract administrator for ensuring that restitution is paid. If
the employer is a subcontractnr, the subcontractor will usually make the computations and
r�stitution payments and furnish the required documentation through the prime contractor.
2-14
The contract' administrator may communicate directiy with a subcontractor when the
underpayments are plainly 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
cnrrective documentation.
b. Cam�uting v�a.ge restitution. 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 all 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 �ayralls. 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 (certified,
cashiers, canceled or other), or employee-signed receipts or waivers.
d. Rc�view of cQrrection CPRs The contract administrator will review the correction certifled
payroll to ensure that full restitution was paid. The prime cantractor shall be notified in
writing of any discrepancies and will be required to make additional payments, if needed,
documented on a correction certified payroll within 30 days.
e. �Jnfound worker�. Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be loca#ed. �fter 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)
pravidinc� fheir names, 5ocial Security Numbers, last known addresses and the gross
amount due. In such cases, at the end of the project ihe prime contractor 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 employee(s) could not be located. The
contract administrator wili 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 NUD.
2-16
CHAPTER 3 LABOR STANDARDS DI�PUTES, ADMIPVISTRATIVE
REVIEWS, �iVITHHOLDING, DEPOSITS AND ESCROW
ACCOUNiS, AND S�►IVCTtONS
, � -• � • li•►
�
��� •�
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.
' �11 ► '' l •\ l�: •i 1 � � �� •
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 DOI.
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. Additional classifications and wage rates. Additional classification and wage rate
requests are sometimes denied by the DO�. An employer that is dissatisfied 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.
1. Reconsideration. The DOL normally identifies the reasons for cienial in its
response to the request. Any interested person (for example, the contract
administrator, employer, representaiives of the �mployees) may request
reconsideration of the decisian on the additional classifcation request. The
request for reconsideration must be made in writing and must thoroughly
addr�ss the denial reasons identified by the DOL. Emplayer 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 th�ough the contract administrator or HUD
must be submitted through the HUI� Headquarters O�ce of Labor 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. Findinqs of under}�ayment. 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 fndings 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.
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 DOI.
Regulations 29 CFR 5.11 (b) and 29 CFR Part 6, Rules of Practice forAdministrative
Proceedings.)
2. Administrative ReviQyy Board. Contractors and/or subcontractors may request a
review by the Administrative Review Board of the decision(s) rendered by the DOL
ALJ in the administrative hearing process. See DOL regulations 29 CFR Part 7 for
more information about this proceeding.
. � �►
The cantract administrator shall cause withholding frnm 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. Withholding is considered to
be serious and is not taken unless warranted. If withholding is deemed necessary, you
will be notified in writing. On1y lhe amounts needed to meet the contractor's (and/or
subcontractors') liability shall be withheld.
3-2
� � = '_���iF�J►C�t��:��P►�E�
in every case, we attempt to complete compiiance actions and resolve any disputes
before the project is completed and final payments are made. Sometimes, corrective
actions or disputes continue after completion and provisions must be made to ensure
that funds a�e 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.
DeposiUescrow accounts are established for one or more of the following reasons:
Remember, the prime contractor is responsible andwill 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(fl 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 of wage 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 documenkatinn is provided to
the contract administrator, the gross amounts carresponding to the documented payments
are returned to the depositar.
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. 7he amounts withheld
from the workers For tax deduction will be returned to the employer as payments to
workers are made. 7he employer shall be responsible for reporting and transmitting
��vithholdings 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.
� �►t � '� � ► •
Contractors and/or subcontractors that violate the labor standards provisions may face
administrative sanctions imposed by HUD 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 DO�. Debarment
proceedings are described in DOL regulations 29 CFR 5.12.
b, FiUD sanctions. HUD sanctions may include Limited Denials of Participation (LDPs),
debarments and suspensions.
��it��nial of �'at�„�i��tion. 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 O�ce. HUD regulations cancerning LDP's are found at 24 CFR
24.700-24.714,
3-4
2. Debarment and suspensions. In certain circumstances, HUD 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 ce�tified 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 repo�ts, 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 have anyquestions or need assistance concerning 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
' • + � : •
° CDBG:= � '� Community Development 81ock Gran# '
�����.
CFR - Code of Federal Regulations
CPR - Certified Payroll: Report
CWHSSA - Contract Work Hours and Safety Standards Act
b8A - Davis-Bacon Act
DBRA - Davis-Bacon and Related Acts
,:., .�. � _
� , , ,. ,; .
DOI. - ` Department of Labor
FHA - Federal Housing Administration
FLSA - Fair Labor Standards Act '
HUD - Housing and Urban Development (Department ofi�
IHA - : Indian Housing Authority
LCA -
I.DP -
O/T -
PHA-
S/T -
SAC -
TDHE-
§-
11-
�-1
Local Contracting Agency
Limited Denial of Participation
Overtime
Public Housing Agency
Straight-time
State Appr�nticeship Gouncii/Ayency
Tribally-Designated Housing Entity
Section
Paragraph
� . i .� f � �� .� � � i
HUD O�ce of Labor Relations:
www. hud.gov/offices/olr
HUD 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.doi.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 �111age Rate Sheet and Urban Development
Offlce of Labor Relations
Project Name: Wage Decision Number/Modification Number:
Project Number: ProJect County:
Worl� �- ��� Basia . � � Frin��� e� , Total��� :� � � Laborers ���
� " ' Houriy .. � g �� Hourly: � � Frtnge~, $
Classiflcation Benefits
Rate.�BHR� Wage Rate 8enefits - '
Bricklayers $ Grqup #< 8HR Total Wage
Carpenters $ $
Cement Masons $ $
Drywall Hangers $ $
Electricians $ $
iron Workers $ $
Painters $ Operatora FNnge Bensfits:: $
Plumbers $ Group # BHR Total Wage
Roofers $ $
Sheet Metal Workers $ $
Soft Fiaor Workers $ $
Tapers $ $
Tile Setters $ Truck Drivors Fringe 8eneflts:= $
Other Classifications Group # 8HR Totai Wage
$
�
�
Aciditiana{ Clas�ifi�ation� (HUD Form 4230-A)
Work Basic Frin e �`Qtat Date of Date of
Ctassification Houriy �enefits Nourly NUD Submission DOL
Rate (BHR) Waye Rate to DOL Approval
$
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A-J
U.S. Department of Housing and Urban Development
Office of Departmental Operations and Coordination
Washington, OC 20410
Email: www.Of�ceofLaborRelations�hud.gov
Labor Relations Desk Guide
LR01.DG
. F�*tµENiOp��
;`�* ''���_',�� * °o �
L3. Il�il�) J� "'�•
�9�.,v oEVE�°v rtwu.irou3wo
OPPOHTUNITV
EYHIBIT "H-5"
5T��R'T OE' CONSTRUCTION FORNt
Clty of F'ort Worth
Community Development Block Grant (CDBG) Funded
Construction Project�
START OF CONSTRUCTION
(Date)
Project Name:
Location:
Project Number:
U.S. Department of Labor Wage Decision:
This is to inform you that the
of
(Address)
(Name of Company)
0
(City/Town)
, , has stfirted work on the above referenced project covered by our
(State) (Zip)
contract with y��u, as uf
(Date)
Respectfully yours,
(i+lame of Com�any)
f3 y
(Si�nature)
0
(Title)
EYHIBIT "H-6"
COi�STRUCTION COMPLETE FOI2itit
Ctty of Fort Worth
Community Development Eilock Grunt (CDBG) Funded
Cunstruction Projects
CONSTRUCTION COI�tPI.ET�
Dnte:
Project Ns�me:
Project I,ocation:
Project Ntunber:
U.S. Department of Labor Wage Decision:
This to inform you that the:
of
(Address)
,
(State) ("Lip)
by our contract witlt you, as of
(Nume ofCompany)
(C i ty/"1'o�vn)
has terminated work on the above referenced project covered
Respectfiilly yours,
�y
(Name of Company)
(Signature)
('Cit(e)
EYHIBIT "H-7"
cEo srt�,z'EvtENT
STATE11�fENT OF POLICY ON
EQUAL EMPLOYMENT OPPOR'I`UNITY
It �vill be the policy af this firm to not discrirninate against any applicant for emplo}nnent, or any
employee, bec:ause of race, creed, color, ag�, sex, or nahu�l origin. This firm will insure that this
policy is continually enforced with regard to employment, promotion, up�rading, demorion, transfer,
recruihnent, �nd recruitment advertising, lAy ot� and termination, compensation, training, and
working conditions. We will make it understood by all with whom we cieal, arid in all our
employment opportunity announcements that the foregoing is our policy. All applicants 1nd
emp(oyees will be judged solely on the bflsis of their skill, devotion loyalty, reliabi(ity and integrity.
Company Nume
S i�,mature
Date
EYHIBIT "H-8"
PAYROLL DEDUCTION AUTHORIZATION FORM
Payroll 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
Print�d or Typed Name:
Praject Name and Number:
7.
8.
9.
10.
11.
12.
Credit Union
Pro�t Sharing
Danations to Agencies
Insurance Premiums
Union Dues
� One time only
❑ Weekiy
❑ Bi-weekiy
� For weeks
�
Date;
* This
K P,�YROI1 UC UCCTIU4 �I:TlN)Ril � fI64 IXK'
EYHIBIT "H-9"
OFFICER �\YPO[NTNIENT FORi'�i
U. S. Department o�E{ousing and Urban Development
CERTTFICATE FROM CONTRACTOR APPOINTING OFFICER OR E1�IPLOYEE
TO SUPERVISE PAYMENT OF El�tPLOYEES
Project Name
Location
Date
Project No.
(I) (We) hereby cerrify that (I am) (we are) (the prime contractor) (a subcontractor) for
in connection with construction ofthe above-mentioned Project, and that (I) (�ve) have appointed
�vho�e sinnnhue annenrs below to sunervise the nAvment of (mY1 our) emvlo ees ebrin11ji1,�
, 20_; that he/she is in a position to have ft►ll knowledge of the facts
set Poi�th in the payroll documents and in the statement of complilnce required by the so-called
Kick-B�tck Statute which heJshe is to e:cecute with (my) (our) tult authority and approvzi until
5uch time as (n (we) submit to
a n�;w certificate appointing some other person for the purposes hereinabove stated.
Att�st (if required):
(Signature}
('Title)
�
(Title)
------------------------------------------------------------------------------------�---
NOTE: This certit�cate must be executed by an authorireci ot'ficer ot'a cor-pnration, by a member
of a partnership, oc the sole owncr <�nd si7all be executed pri�c to ar�d be s�abmitted tivith tlte tirst
payralL Shoulci the appointe� be chan�ed, a new certiticate mu�t accompany the tirst payroll for
�vhich the ncw ���pointce executes a statement of compliance requircd by the Kick-E3ack Statute.
DA [..�DAO- ( 3�t0.3/2
(6-79)
EYHIBIT "t"
DEED OF TRUST FORi�I
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:
I.1
Tarrant County Housing Partnership, Inc.
a Texas non-proiit corporation.
Grantor's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76107
Trustee: Vicici S. Ganslce or Leann Guzman
Trustee's Mailing Address:
C/O City Attorney's Ofiice
1000 Throcicmorton 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 Tluockmorton 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: $114,900.00
DEED OF TRUST — TCHP Page 1
CSC No. G24293 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 Properry; 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. lceep the Property in good repair and condition;
2. 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. 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;
b. contains an 80 percent coinsurance ciause;
DEED OF TRUST — TCHP Page 2
CSC No. C-24293 Rev. 5-17-13
c. provides all-rislc 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. corriply 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. lceep 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
l. 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. G24293 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 Boi�rower 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. C-24293 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 indemnified, 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 talcen against Trustee in that capacity.
D. General Provisions
1. 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 fi•om the Pi•operty. 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. C-24293 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 talcing 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 bankruptcy 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.
ll. The term Note includes all extensions, modifications, 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 G�antor 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. C-24293 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 Lende�° 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
control with Grantor. Lender shall not exercise 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 Propei�ty is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
This Deed of Trust has aiso been executed and delivered pursuant to the terms of the
DEED OF TRUST — TCHP Page 7
CSC No. G24293 Rev. 5-17-13
Contract. Grantor agrees to perform each and every obligation set forth therein and wili
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 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
DEED OF TRUST — TCHP Page 8
CSC No. C-24293 Rev. 5-17-13
EXHIBIT "A"
1307 Elmwood; Lot 24, Blocic 54, Highiand 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. G24293 Rev. 5-17-13
PROMISSORY NOTE
Date:
�
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 Throcicmorton St.
Fort Worth, Tarrant County, TX 76102
or at any other place that Lender may designate in writing
Principal Amount: ONE HIINDRED FOURTEEN THOUSAND DOLLARS AND NINE
HIJNDRED/100 DOLLARS ($114,900.00)
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 National
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. C-24293 rev. OS-17-13
The Principal Amount is due and payable on , 20_ and any interest is due
and payable 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 wiil 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 wiil 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. C-24293 rev. OS-17-13
if the Principai 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 piural.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
PROMISSORY NOTE — TCHP Page 3
CSC No. G24293 rev. OS-17-13
p � .
1307 Elmwood; Lot 24, Blocic 54, 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. C-24293 rev. OS-17-13
EXHIBIT "J"
ENVIRONMENTAL NIITIGATION ACTION
NOT APPLICAIiLE
CYHIBIT "I{"
SCCTION 3 REPORTING REQUIRE�IENTS
EXHIBIT "K"
Section 3 Summary Report
Economic Oppo�tunities for
Low — and Very Low-Income Persons
U.S. Department of Housing
and Urban Development
Office of Fair Housing
And Equal Oppo�tunity
OMB Approval No: 2529-0043
(exp. 11/30/2010)
HUD Field Office: �
Sectlon back ot page for Public Roporting 8urden stalement
1. RecipeN Name & Address: (sVeet, dry, stale, zip) 2. Federal Identification: (grant no.) 3. Total Amount of Awazd:
4. Contact Person 5. Phone: (InGude area code)
6. Length of Grant: 7. Reporting Period:
8. Dale Reporl Submit�ed: 9. Prograrn Code: (Use separate sheet 10. Pmgram Name:
for each program code)
Part I: Em lo ment and Tralnin " Col�mns 8, C and F are mandato fields. Include New Hires in E&F
A B C D E F
Number ot Number of New % of Aggregala Num6er % of Total Staft Hours Number ot Section 3
Job Category New Hires Hires Ihat are ot StaN Hours of Now Hires for Section 3 Employees Trainees
Sec. 3 Residenls that are Sec. 3 Residenls and Trainees
Professionals
Technicians
Office/Clerical
ConsUuction by Trade (�ist)
Trade
Trade
Trade
Trade
Trade
Other List
iotal
• Program Codes 3= Publidlndien Housing 4= Homeless Assistanca
1= F'exibis Subsidy A= OevelopmeN, 5= HOME
2= Sedion 202/811 0= Operation 6= HOME State �dministared
C= Malamization 7= CDBG Entitlement
Page 1 ot 2
8 = CD�G Slate Adminislered
9 = Other CD Programs
70 = Other Housing Pro9rams
form HUD 6C002 (6/2001)
Re1 2A CFR 1J5
Part II: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of ali contracts awarded on the project
B. Total doilar amount ot contracts awarded to Section 3 businesses
C. Percentage of the total dollar amount that was awarded to Section 3 businesses
D. Total number of SecUon 3 businesses receiving contracts
2. Non-Conslructio� Contracts:
A. Total dollar amount all non-consUuction contracts awarded on ihe projecf/activity
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses
C. Percentage of the lotal dollar amount that was awarded to Section 3 businesses
D. Total number of Section 3 businesses receiving �on-construction contracis
Part Iil: Summary
Indicate lhe efforts made to direct the employment and other economic opportunities generaied 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 recipienis of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area (or
nonmetropolitan county) in which the 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
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which lhe Section 3 covered project is located.
Other; describe betow.
Public reporiing 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 maintaininy the data needed, and completing and reviewing the collection of information.
This agency may not collect this information, and you are not required to complete this form, unless it displays a currentiy valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, mandates that lhe Depariment ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low- and very-low income persons, particulariy those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The infonnation will be used by the Department to monitor program recipienls' compliance with Section 3, to
assess the results of the Department's efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipienfs as self-rnoniloring tool. The data is entered into a database and will be analyzed and distributed. The coliection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Seclion 3. The
information will be collected annualiy to assist NUD in meefing its reporti�g requirements under Section H08(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not appiicabie 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 ideniitying
information is not included.
Page 2 of 2 lorm HUD 60002 (1 t12010)
Ra124 CFR iJ5
Fonn HUD-60002, Section 3 Summary Report, Economic Opportunitles Tor Low- and Very Low-income Persons.
inetructiona: This form is to be used to report annual
accompiishmenta regarding employment and other economic
opportunities provided to low- and very low-income persons under
Section 3 of the Housing and Urban Development Act of 1968. The
Section 3 regulations appiy to any publ/c and /ndlan housing
programs lhat receive: (t) development assfstance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Seclion 9 of lhe U.S. Housing Act o( 1937; or (3)
modemizalion grants pursuant to Section 14 of the U.S. Housing Act
of 1937 and to recipients of housing and community dovelopment
asalstance In exceas of;200,000 expended for. (1) housing
rehabilitation (inciuding reduction and abatement of lead-based paint
hazards); (2) housing construcdon; or (3) other pubiic conslruction
projects; and to confracts and subcontracts In excess ol 5100,000
awarded in connection with the Section-3covered activity.
Form HUD-G0002 has three parts, which are to be completed for
ail programs covered by SecUon 3. Part I relates to empfoyment
and tralning. The recipient has the option to determine numerical
employmenUtraining goais eifher on the 6asis of the number of hours
worked by new hires (columns B, D, E and F). Part II of the torm
relates to contracttng, and Part III summarizes recipients' eHorts to
comply with Section 3.
Recipients or contrectors subject to Section 3 requirements must
maintain appropriate documentation lo establish that HUD financial
assistance For housing and community development programs were
directed toward low- and very low-income persons.' A recipient of
Section 3 covered assistance shall submit one copy of this report to
HUD Headquarters, Office oF fair Housing and Equal Opportunity.
4Vhere the program providing assisiance requires an annual
performance report, lhis Section 3 report is to be submitted at the
same time the program performance report is submitted. Where an
annual pe�iormance 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 Pr/me Reclp(ents are
requlred to report to HUD. The roport must Jnclude
accomplishrnonts o/ a/1 roclplents and theli Sectlon 3 covered
confractors and subcontractors,
NUD Field Office: Enter the Field O�ce name .
1. Recipient: Enter the name and address of the recipient
submitting this report.
2. Federal Identification: Enter the numder that appears on the
award form (with dashes). The award may be a grant,
cooperetive agreement or coniract.
3. Doilar Amount of Award: Enter the dollar amount, rounded to fhe
nearest doilar, received by the recipient.
4& 5. Contact Person/Phone: Enter the name and telephone num6er
of the person with knowledge of the award and the recipienPs
implementation of Section 3.
6. Reporting Period: Indicate fhe time period (monlhs and year)
this report covers.
7. Date Report Submitted: Enter the appropriate date.
Program Code: Enter the appropriate progrem code as iisted at
the bottom of the page.
Program Name: Enter the name of HUD Proflram corresponding
wilh the "Program Code' in number 8.
Part 1: Employment and Training Opportunitlea
Column A: Coniains various job categories. Professionals are
defined as people who have speciai knowledge of an occupation (i.e.
supervisors, architects, surveyors, planners, and computer
programmers). For construction positions, list each trade and provide
data in columns B through F for each trade where persons were
employed. The category of "Othe�' includes occupaUons such as
service workers.
Column B: (Mandatory Fisld) Enter the number of new hires for
each category of workers identified in Column A in connection with
this award. New hire reters to a person who is not on the contractor's
or recipienYs payroil 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 ihe 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 contractor's or recipient's 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 D: Enter the percentage of ail the staff hours of new hires
(Section 3 residents) in connection with ihis award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 empioyees and trainees (including naw hires) connected
with this award. Include staff hours (or part-time and full-time
positions.
Column F: (Mandatory Field) Enter lhe number of Section 3
residents that were trained in connection with this award.
Part II: Contract Opportunities
Block 1: Conslruction Contracts
item A: Enter the total dollar amount of ail contracts awarded on the
projecVprogram.
Item B: Enter the total dollar amou�t of contracts connected with this
projecUprogram that were awarded to Section 3 businesses.
Itom C: Enter the percentage of the total dollar amount of contracts
connected with this projecUprogram awarded to Seclion 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
81ock 2: Non-Construction Contracts
item A; Enler the totai dollar amount of all contracts awarded on the
projecUprogram.
Item B: Enter the totai doliar amount of contrects connected with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this projecUprogram awarded to Section 3 businesses.
Itom D: E�ter the number of Seclion 3 businesses receiving awards.
Part III: Summary of E(fo�ts — Self -explanatory
Submit one (t) copy of this report to the HUD Headquarters Ofiice of
Fair Housing and Equai Opportunity, at the same time the
performance report is submitted to lhe program office. The Section 3
report is submitted by January 10. Include only contracts executed
during the period specified in item 8. PHAs/IHAs are to report al)
co n tra c ts/s u bcon lracts.
" The terms "Iow-inwme persons' a�d very low-income persons" have
the same meanings given the terms in section 3(b) (2) of lhe United
States Nousing Act of 1937. Low•income peisons mean families
(including singie persons) whose incomes do not exceed 80 percent of
the median income for the area, as determined by the Secretary, wilh
adjustmenls for smaller and Iarger families, except that
The Secretary may establish income ceilings higher or lower than 80 percent
of the median for the area on lhe basis of the Secretary's (indings such that
variations are necessary because of prevailing leveis of construction costs
or unusually high- or low-income families. Very low-lncome persons mean
low-income families (induding singie persons) whose incomes do not
exceed 50 percent of the median family income area, as determined by the
Secretary with adjustments or smailer and larger families, except that the
Secre(ary may establish income ceilings higher or lower than 50 percent of
Ihe median for the area on the basis of the Secretary's findings that such
variations are necessary because of unusually high or low (amily incomes.
Page i lorm NUD FA002 (11/2010)
Re124 CFR 135
M&C Review
. �� � _
Page 1 of 3
Official site of the City of Fort Worth, Texas
�'ORT�r'VORTiI
�-.,,.
COUNCIL ACTION: Approved on 6/22/2010
DATE: 6/22/2010 REFERENCE NO.: C-24293
CODE: C TYPE: NON-
CONSENT
LOG NAME:
PUB�IC
HEARING:
17TCHP-
1307ELMWOOD
NO
SUBJECT: Authorize a Change in Use and Expenditure of $145,000.00 of HOME Investment
Partnerships Program Grant Funds to Tarrant County Housing Partnerships, Inc., for the
Development of a Single Family House in the Hiliside-Morningside Neighborhood,
Authorize the Execution of Conditional Commitment and Contract, and Authorize a
Substantial Amendment to the City' s 2008-2009 and 2009-2010 Action Plans (COUNCIL
DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City' s 2008-2009 and 2009-2010 Action Plans;
2. Authorize the City Manager, or his designee, to substitute funding years in order to meet
commitment, disbursement, and expenditure deadlines for grant funds from the United States
Department of Housing and Urban Development;
3. Authorize a change in use and expenditure of $145,000.00 in HOME Investment Partnerships
Program Grant funds to Tarrant County Housing Partnerships, Inc., a certified Community Housing
Development Organization, for the development of a single family house in the Hillside-Morningside
neighborhood;
4. Authorize the City Manager, or his designee, to execute a conditional commitment with Tarrant
County Housing Partnerships, Inc., that conditions funding, among other things, on satisfactory
completion of HOME requirements;
5. Authorize the City Manager, or his designee, to execute a Contract with the Tarrant County
Housing Partnerships, Inc. for the project for a one year term beginning on the date of execution of
the contract;
6. Authorize the City Manager, or his designee, to extend or renew the conditional commitment or the
contract for up to one year if Tarrant County Housing Partnerships requests an extension and such
extension is necessary for completion of the project; and
7. Authorize the City Manager, or his designee, to amend the conditional commitment or the Contract
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.
DISCUSSION:
On October 6, 2009, the City issued a Request for Proposals (RFP) for certified Community Housing
Development Organizations (CHDO) to award and expend up to $1,600,000.00 of HOME Investment
Partnerships Program Grant funds by May 1, 2012. On November 5, 2009, the Tarrant County
http://apps.cfwnet.org/council�acket/mc_review.asp?ID=13564&councildate=6/22/2010 5/30/2013
M&C Review
Page 2 of 3
Housing Partnerships, Inc., (TCHP) submitted a response requesting $472,000.00 of the available
HOME funds to acquire three sites on which it proposed to construct three single family houses. The
request also included funds for related CHDO operating expenses.
City staff reviewed all RFP submissions and recommended the award to TCHP of $145,000.00 in
HOME funds to the Community Development Council (CDC) at its meeting held on June 9, 2010. The
COC agreed with staff s funding recommendation for the project. Up to $25,000.00 of the awarded
funds will be used for operating expenses and $120,000.00 for construction and other development
expenses.
TCHP plans to develop a single family house to be located at 1307 Elmwood Avenue that will be, at a
minimum, 1250 square feet with three bedrooms, two baths and a garage. The house 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. House must be sold to a HOME eligible buyer; and
iv. Proceeds from the sale of house to be used to construct an additional house for a HOME
eligible buyer.
The expenditure of HOME funds is conditioned upon the followinq:
i. Satisfactory completion of the environmental review per 24 CFR Part 58;
ii. Authorization to use grant funds from HUD; and
iii. Receipt of funding for the 2010-2011 HUD grant funding year.
City staff recommends the change in use and expenditure up to $145,000.00 in HOME funds for the
project to benefit low and very low income citizens by providing affordable housing. A public comment
period on the change in use of these HOME funds was held from May 6, 2010, to June 5, 2010. Any
comments are maintained by the Housing and Economic Development Department in accordance
with federal regulations.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers
GR76 539120 005206271110 $25,000.00
GR76 539120 017206351110 $74,205.00
GR76 539120 017206461110 $45,795.00
FROM Fund/Account/Centers
GR76 539120 005206271020 $25,000.00
GR76 539120 017206351040 $74,205.00
GR76 539120 017206461040 $45,795.00
Submitted for Citv Manaaer's Office bv:
Originating Department Head:
Thomas Higgins (6192)
Jay Chapa (5804)
Cynthia Garcia (8187)
http://apps.cfwnet.org/council�acket/mc_review.asp?ID=13564&councildate=6/22/2010 5/30/2013
M&C Review
Additional Information Contact: Avis F. Chaisson (6342)
ATTACHMENTS
1307EImwoodCouncilMap.pdf
Page 3 of 3
http://apps.cfwnet.org/council�acicet/mc_review.asp?ID=13564&councildate=6/22/2010 5/30/2013
City of Fort Worth, Texas
�VVlayor and Council Communication
COUNGL ACTION: Approved on 6/14/2011
DATE: Tuesday, June 14, 2011 REFERENCE NO.: **C-24954
LOG NAME: 17AMENDTCHP-1307ELMWOOD
SUBJECT:
Authorize Amendment to the Conditional Commitment and Contract for HOME Investment Partnerships
Program Grant Funds with Tarrant County Housing Partnership, Inc., for Property at 1307 Elmwood
Avenue to Comply with United States Department of Housing and Urban Development Requirements for
Developer Fees (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an amendment to the Conditional Commitment and Contract for HOME Investment
Partnerships Program Grant Funds with Tarrant County Housing Partnership, Inc., to remove Community
Housing Development Organization Proceeds and replace with a developer fee, and remove requirement
to build an additional house with Community Housing Development Organization Proceeds.
DISCUSSION:
On June 22, 2010, City Council approved the award of $145,000.00 in HOME Investment Partnerships
Program Grant Funds to Tarrant County Housing Partnership, Inc. (TCHP) for the development of a single
family house to be located at 1307 Elwood Avenue in the Hillside-Morningside neighborhood (C-
24293). Up to $25,000.00 of the awarded funds will be used for operating expenses and $120,000.00 for
construction and other development expenses
Staff recommends the following changes to the agreements based upon direction received from HUD:
. Remove the Community Housing Development Organization (CHDO) Proceeds terms in the
Conditional Commitment and Contract
. Replace the CHDO Proceeds with a 10 percent developer's fee based on the cost to construct the
house
. Remove requirement to build an additional house with CHDO Proceeds
The project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/AccounUCenters
FROM Fund/Account/Centers
Logname: 17AMENDTCHP-1307ELMWOOD
Page 1 of 2
Submitted for City Manager's Office b�
Oriqinatinq Department Head:
Additional Information Contact:
ATTACHMENTS
No attachments found.
Susan Alanis (8180)
Jay Chapa (5804)
Cynthia Garcia (8187)
Avis F. Chaisson (6342)
Logname: 17AMENDTCHP-1307ELMWOOD Page 2 of 2