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CON7RACT N0.
COMMUNITY HOUSING DEVELOPMENT CONTRACT
This contract ("ContracY') 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;
WHEREAS, a portion of City's HOME funds are reserved for the use of certain housing
development entities that qualify under the HOME Regulations as a Community Housing
Development Organization (CHDO);
WHEREAS, Developer, a Texas non-profit corporation managed by a volunteer Board of
Directors and qualified as a CHDO according to HOME Regulations, is working 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 1333 E. Jefferson, Fort Worth, TX 76104 in the City of Fort Worth and in
accordance with the HOME Regulations and Exhibit "A-1"- Final Elevations and Proposed
Plans and Specifications for an amount up to $117,043.00 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;
' RECEIVE
CHDO Contract with TCHPfor 1333 E. Je�ferson (t�FFICIAL REC�R�
Page 1 of 33 �ITY S�CRETARY
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WHEREAS, City has determined that the development of quality, accessible, and
affordable housing is needed for moderate, low, and very low-income citizens of Fort Worth;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
1. 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 benefit of any member, founder,
contributor, or individual of the CHDO;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-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 Contract witll TCHP for 1333 E. Je fferson
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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
checks 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 Backup 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 Jur�e /��2��
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means the deed of trust signed by Developer pursuant to Section 4.2.2. See form
in Exhibit "I"- Deed of Trust Form.
Director means the Director of the City's Housing and Economic Development Department.
Effective Date means the date this Contract is executed by the City's Assistant City Manager.
HAP means the City's Homebuyer Assistance Program.
HAP Deed of Trust means the deed of trust signed by a HOME Eligible Buyer to secure HAP
assistance.
HOME Eligible Buyer means: (1) a homebuyer whose annual income adjusted for family size
does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical
Guidance for Determining Income and Allowances. The definition of annual income to
determine homebuyer eligibility under this Contract shall be the definition contained in 24 CFR
Part 92.203(b)(1), as amended; and (2) a homebuyer who meets City HAP Eligibility
Requirements and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance.
HOME Funds means City's HOME funds supplied by City to the Developer under the terms of
this Contract.
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Principal Residence means the improved property that will be occupied by the HOME Eligible
Buyer for a majority of each year throughout the Affordability Period in accordance with the
HAP guidelines as further described in the written agreement between the HOME Eligible Buyer
and the City and the HAP loan documents to be executed by the HOME Eligible Buyer.
Property means the land on which the Required Improvements shall be constructed as more
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 Certi�ication
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 30`�' 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 shall be considered a default of Developer, which
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shall result in the termination of this Contract under Section 8.4 below.
4.2. Construction of Required Improvements.
4.2.1 Required Improvements. Developer shall complete the construction of the
Required Improvements as described in Exhibit "A" — Project Summary and Scope of Work
upon receiving written notice to proceed from City.
4.2.2. Lien on Pro�erty. 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. Proiect Schedule. Developer will construct the Required Improvements
by the Completion Deadline in accordance with the schedule set forth in the attached Exhibit
"B" — Project Schedule. Developer's failure to meet the Project Schedule or the Completion
Deadline shall be an event of default. The City may, at its sole discretion, approve any changes
to the Project Schedule after Developer submits a written request far 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 Financing. 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. Bu� HOME Funds will be spent in accordance with Exhibit "C" -
Budget. Developer may increase or decrease line-item amounts in the Budget with Director's
prior written approval so long as the expenses are in compliance with 4.3.2, comply with
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 Regulations. 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 will be disbursed as detailed in Exhibit
"B"- Project Schedule. In order to receive reimbursement for eligible expenses, Developer
must submit Complete Documentation to City within the Contract term. Additionally, PDF's of
site plans, drawings or designs must be included with the first request for reimbursement. City
shall not hold retainage. Instead, it shall make the final construction payment due Developer
contingent upon successful completion of the following: (1) Completion of the Required
Improvements by Developer; (2) receipt of a Housing and Economic Development Final
Inspection approval for the Required Improvements; (3) approval of Complete Documentation;
and (4) Developer is not in breach of this Contract or any other agreement Developer has with
the City. Developer Fee will be paid at closing of the sale of the house to a HOME Eligible
Buyer.
4.3.4. Withholding Payment. 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 Property Standards
4.4.1 Construction to Conform to All Applicable 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.
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4.4.4. Submission and Approval by Citv 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 contractors, 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, working 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, working
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 work 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. 7�,ov, 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 work on the Required Improvements and
Developer shall not be reimbursed for any work 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 Marketin�
4.6.1. Affirmative Marketin�. Developer must adopt affirmative marketing
procedures and requirements for the Required Improvements as required by 24 CFR 92.351 if
the project involves the construction of 5 or more houses. The procedures and requirements
must include methods for informing the public, owners and potential homebuyers about fair
housing laws and policies so as to ensure that all individuals, without regard for sex, age, race,
color, creed, nationality, national origin, religion, handicap status, disability, familial status,
sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project.
CHDO Contract with TCHP fo�• 1333 E. .Ie f erson
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4.6.2. City Approval. All Developer marketing 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 marketing 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 Developer Fee. Developer shall receive a fee of 10% of the total project-related
development costs as determined by Exhibit "C"- Budget ("Developer Fee"). The Developer
Fee shall be paid at the closing of the sale of the Required Improvements to a HOME Eligible
Buyer and receipt of documentation of all required inspections.
4.8 Sales Proceeds. All Sales Proceeds must be returned to the City.
4.9. Sale of Required Improvements to HOME Eli�ible 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 Eligible Buyer. All homebuyers who purchase the Required
Improvements must also be a HOME Eligible Buyer who receives closing cost and/or down
payrnent 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 certificate 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 certification shall be an event of default.
4.9.3 Contract. Developer shall provide City with a copy of a sales contract for
approval prior to execution for each HOME Eligible Buyer. The sales contract must contain
provisions regarding the following, and will incorporate definitions from this contract as
relevant:
l. "The home you are purchasing was constructed with federal funds that require
the home remain affordable for up to 5 years ("Affordability Period"). This
means that if you sell or leave the home before the Affordability Period is
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over, you will be required to repay the City the amount of federal funds used
to construct the home. Therefore, as a condition of sale, you will be required
to execute a Note and Deed of Trust in favor of the City for the amount of
federal funds that were used to construct the home to secure the Affordability
Period. The City agrees that the lien will be subordinate to any purchase
money loans.
4.9.4. Developer to Provide Settlement Statement. At least 5 business days before each
closing, Developer will provide to City the estimated settlement statement. The 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 from 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 Monitoring of Developer
4.10.1 Developer understands and agrees that it will be subject to monitoring by
City for compliance with the HOME Regulations for the duration of the Affordability Period
and until the project is closed in HUD's IDIS system. Developer will provide access to project
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 five years after
closeout of this Contract in HUD's IDIS system, and will meet all the reporting requirements set
out in this Contract. This Section shall survive the termination or expiration of this Contract.
4.10.2 City, HUD, the Comptroller General of the United States, and any of their
representatives shall have access at all reasonable hours to the Developer's 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 likewise monitor the effectiveness of the services and
work to be performed by its contractors and subcontractors.
5. HOMEBUYER ASSISTANCE.
5.1 HAP Participation. To ensure that the affordability requirements are met, City requires
that the HOME Eligible Buyer, at least 60 days prior to closing, apply for a minimum of
$1,000.00 of closing cost and/or down payment assistance from the City's HAP. Homebuyer
eligibility shall be determined by City in City's sole discretion using City HAP Eligibility
CHDO Contrczct witlz TCHPfor 1333 E. Jefferson
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Requirements. City shall enter into a written agreement with the homebuyer for the down
payment and/or closing cost assistance. If requested by the City, Developer shall timely provide
City with all documents and information necessary for City to process the homebuyer's HAP
application, especially the 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-keeping System. In the performance of this Contract, Developer shall
develop a record-keeping 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 kept an accurate record of all actions taken and all funds expended, with source
and back-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
$ �%% '� m HOME Funds for eligible expenses (excluding the Developer Fee) related to
construction of the Required Improvements, so long as such eligible expenses are in
conformance with the Budget and Project Schedule, and sufficiently proved by Complete
Documentation.
7.1.2 Timin� of Pa n�lent. 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
Regulations, 24 CFR Part 92.504. City will monitor the performance of Developer in regard to
compliance with completion of tasks, duties and responsibilities as required under this Contract
with an advanced notice of no less than 24 hours.
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7.2.2 In addition to other provisions of this Contract regarding frequency of
monitoring, City reserves the right to perform 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 shall include requirements for the timely
correction of said deficiencies by Developer. Failure by Developer to take 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 will be located, City will notify
Developer in writing and the Developer will have 30 calendar days from the date of
receipt of the written notice to begin construction. If property is owned by the Developer
at tiine 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
determined by City, City will notify Developer in writing and the Developer will have 30
calendar days from the date of receipt of the written notice to submit or resubmit any
such report or documentation to City. If the Developer fails to submit or resubmit any
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such report or documentation within such time, City shall have the right to terminate this
Contract with no penalty or liability to City effective immediately, and to demand
repayment of any HOME Funds already disbursed to Developer. Notwithstanding
anything to the contrary herein, City will not be required to reimburse any HOME Funds
to Developer unless Complete Documentation is received and approved by City within
the term of the Contract.
8.1.4 Failure to Sell Rec�uired 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. all HOME funds provided to the Developer by the City under this Contract
shall be repaid to the City within 30 days and this Contract shall be
terminated as described in Section in 8.5.
8.1.5 In General. In addition to the defaults described in Sections 8.1.1,
8.1.2, 8.1.3, and 8.1.4 and unless 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.
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.
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8.2. City Options in Event of Default. If Developer fails to cure the default within
the time stated in the notice, City at its sole option may elect any combination of the following
actions:
8.2.1. extend Developer's time to cure;
8.2.2 disallow all or part of the cost of the activity or action not in compliance;
8.2.3 pursue any other legal remedies available to City to ensure compliance
with this Contract and the Deed of Trust, including foreclosure; and/or
8.2.4 terminate this Contract.
8.3. No Funds Disbursed while in Default. Developer understands and agrees that
no HOME Funds will be paid to Developer until 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. Likewise,
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.
8.5 Results of Termination
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8.5.1. Reversion of Assets. In the event this Contract is terminated with or without
cause, all assets acquired with HOME Funds used in the development of the Required
Improvements including but not limited to 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 Develo�er 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 revoked, any HOME Funds
distributed to Developer shall be returned to City, and any approvals related to the Project that
is/are the subject of this Contract shall be immediately deemed revoked and canceled.
8.5.4 No Compensation After Date of Termination. In the event of termination,
Developer shall not receive any compensation for work undertaken after the date of the
termination.
8.5.5. Ri ts of Citv 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,
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,
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members, agents, servants, employees, contractors, project participants, licensees or invitees.
11.2. Doctrine of Respondeat Superior
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, contractors, project participants, licensees or
invitees, and nothing herein shall be construed as creating a partnership or joint enterprise
between City and Developer. It is expressly understood and agreed that no officer, member,
agent, employee, contractor, licensee or invitee of Developer, nor any project participant, is in
the paid service of City and that City does not have the legal right to control the details of the
tasks performed hereunder by Developer, its officers, members, agents, employees, contractors,
project participants, licensees or invitees.
11.3 Reli�ious 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 independ�nt
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 Office.
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
DEVELOPER HAS MISUSED, MISAPPLIED OR MISAPPROPRIATED ALL OR ANY
PART OF THE HOME FUNDS, DEVELOPER AGREES TO REIMBURSE CITY THE
AMOUNT OF SUCH MONIES SO MISUSED, MISAPPLIED OR MISAPPROPRIATED,
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PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE
LEVIED AGAINST CITY BY HUD BECAUSE OF SUCH MISUSE, MISAPPLICATION
OR MISAPPROPRIATION.
11.5. Venue
Venue for any action, whether real or asserted, at law or in equity, arising out of the
execution, performance, attempted performance or non-performance of this Contract, shall lie in
Tarrant County, Texas.
11.6 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 A�reement Entire Agreement.
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 work and services to be performed under this Contract. Any prior
or contemporaneous oral or written agreement, which purports to vary the terms of this Contract,
shall be void. Any amendments to the terms of this Contract must be in writing and must be
executed by each Party to this Contract.
11.9. Para�raph Headings 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
• The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
Sections 3601 et seq.)
• Executive Orders 11063, 11246 as amended by 11375 and 12086 and as
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supplemented by Department of Labor regulations 41 CFR, Part 60
• The Age Discrimination in Employment of 1967
• The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
• Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and
24 CFR Part 8 where applicable
• National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321
et 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.)
specifically including the provisions requiring employer verifcations of legal
status of its employees
• The American with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.),
the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et
seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix
A
• Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
• Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR
Part 23, 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 Proiects and Emplovment 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 contractors. If the work performed under this Contract is on a project
assisted under a program providing direct Federal financial assistance from HUD, Section 3 of
the Housing and Urban Development Act of 1968 as amended (12 U.S.C. Sections 1701 et seq.)
and its related regulations at 24 CFR Part 135, specifically 24 CFR 135.38 ("Section 3"),
requires that the following clause, shown in italics, be inserted in all covered contracts ("Section
3 Clause"):
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Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
requirements of Section 3 of Housing and Urban Development Act of 1968, as
amended, 12 U. S. C. section 1701 u(Section 3). The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by HUD
assisted or HUD-assisted projects coverecl by Section 3, shall to the greatest
extent feasible, be directed to low- and very-low income persons, particularly
persons who c�re recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD's regzclations in 24
CFR Part 135, which implement Section 3. As evidenced by their exectction of
this contract, the parties to this contract certify that they are ufzder no contractual
or other impediment that would prevent them from complying with the Part 135
t�egulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which it has a collective bargaining agreement or
other Zcnderstanding, if any, a notice advising the labor organization or worizers'
representatives of the contractor's commitments under this Section 3 clause and
will post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the
notice. The notice shall describe the Section 3 preference, shall set forth
minzmum nzimber and job titles subject to hire, availability of apprentice and
training positions, the qualifications for each; and the name and location of the
person(s) taking applications for each of the positions; and the anticipated date
the work shall begin.
D. The contractor agrees that it will ii2cluc�e this Section 3 claitse in every
szcbcontract to comply with regtclation in 24 CFR Part 135, and agrees to take
appropriate action, as provided in an applicable provision of the subcontract or
in this Section 3 clause, zcpon finding that the subcontractor is in violation of the
regulations in 24 CFR Part 135. The contractor will not subcontract with any
subcontractor where it has notice or knowledge that the subcontractor has been
found in violation of regulations in 24 CFR 135.
E. The contractor will certify that any vacant employment positions,
including training 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
�°egulations of 24 CFR Part 135. Tlae contractor will not subcontract with any
subcontractor where it has notice or knowledge that the subcontractor has been
found in violation of reg�ulations in 24 CFR 135.
F. Noncompliance with HUD's regulation in 24 CFR Part 135 may result in
sanctions, termination of this contract for default, and clebarment or suspension
from fictacre HUD assisted contracts.
G. With respect to work performed zn connection with Section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination c�nd
Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be
pef formed under this Contract. Section 7(b) requires that to the greatest extent
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feasible (i) preference and opportunities for tf�aining and employment shall be
given to Indians, and (ii) preference in the awc�rd of contracts and subcontracts
shall be given to Indian organizations and Indian-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
derogation 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.
11.1 l.l 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 taken to comply with Section 3; and
8. Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
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In order to comply with the Section 3 requirements, Developer must submit the
Section 3 Reporting Forms attached hereto as Exhibit "K" - Section 3 Reporting
Requirements.
11.11.1.1 Report to the City on a quarterly basis, all applicants far
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 like.
11.11.1.3 Report to the City on a quarterly basis, all contracts
awarded by contractors and any subcontractors. This shall
include name of contractor and/or subcontractor, address,
zip code, and amount of award as of the date of the report.
11.12. Prohibition Against Discrimination
Developer, in the execution, performance or attempted performance of this Contract,
shall comply with all non-discrimination requirements of 24 CFR 92.350 and the ordinances
codified at Chapter 17, Article III, Division 4— Fair Housing of the City Code. Developer may
not discriminate against any person because of race, color, sex, gender, religion, national origin,
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, Article III, Division 3- Employment Practices of the City Code, and
Developer hereby covenants and agrees that Developer, its officers, members, agents, employees
and contractors, have 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.
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 take
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Page 21 of 33
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, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination clause.
Developer will, in all solicitations or advertisements for employees placed by or on
behalf of Developer, state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or transgender.
Developer covenants that neither it nor any of its 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
qualification, 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 work 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 invoked 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 11.11.1 to be included in each of its
subcontracts for work performed on the project unless exempted by rules, regulations or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September
24, 1965, so that such provisions will be binding upon each subcontractor or vendor. Developer
will 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
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Under the provisions of the Americans With Disabilities Act of 1990 ("ADA"),
Developer warrants that it and any of its contractors will not unlawfully discriminate on the basis
of disability in the provision of services to the general public, nor in the availability, terms and/or
conditions of employment for applicants for employment with, or employees of Developer or
any of its contractors. DEVELOPER WARRANTS IT WILL FULLY COMPLY WITH
ADA'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND
LOCAL LAWS CONCERNING DISABILITY AND WILL DEFEND, INDEMNIFY AND
HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED
BY THIRD PARTIES OR CONTRACTORS AGAINST CITY ARISING OUT OF
DEVELOPER'S AND/OR ITS CONTRACTORS' ALLEGED FAILURE TO COMPLY
WITH THE ABOVE-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 from using positions for a purpose that is or gives the
appearance of being motivated by a desire for private gain for themselves or others,
particularly those with whom they have family, business or other ties. Developer shall
disclose to City any conflict of interest or potential conflict of interest described above,
immediately upon discovery of such.
11.13.2 No persons who are employees, agents, consultants, 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-making process or gain inside
information with regard to these activities, may obtain a financial interest or benefit from
a HOME-assisted activity or have an interest in any contract, subcontract or agreement
with respect thereto, or the proceeds thereunder, either for themselves or those with
whom they have family or business ties, during their tenure or for one year thereafter,
unless they are accepted under the procedures set forth at 24 C.F.R. § 92.356.
11.13.3 Developer affirms that it will adhere to Chapter 36 of the Texas
Penal Code, which prohibits bribery and undue influence of public servants.
1 L 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
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 Work Hours and Safety Standards Act (40
U.S.C. 3701 et seq.) and all other applicable Federal, state and local laws and regulations
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pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Kick 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 shall maintain documentation that demonstrates compliance with hour
and wage requirements of this Contract and HOME Regulations. Such documentation
shall be made available promptly to City, HUD, U.S. Department of Labor, the
Comptroller General of the United States, and any of their representatives for review
upon request.
11.14.2 Developer agrees that all contractors engaged under contract for
construction, renovation or repair 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 1, 3, 5 and 7 governing the payment of wages
and ratio of apprentices and trainees to journey workers; provided that, if wage rates
higher than those required under these regulations are imposed by state or local law,
nothing hereunder is intended to relieve Developer of its obligation, if any, to require
payment of the higher wage. Developer 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 Minority Firms, Women's Business
Enterprises and Labor Surplus Areas.
11.15.1 For procurement contracts $50,000.00 or larger, Developer
agrees to document a good faith effort to involve Minority Business Enterprises
and Small Business Enterprises and to provide them equal opportunity to compete
for contracts for construction, provision of professional services, purchase of
equipment and supplies and provision of other services required by City.
Developer agrees to incorporate the City's BDE Ordinance, and all amendments
or successor policies or ordinances thereto, into 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 taken to assure
that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of
supplies, equipment, construction and services.
11.16. Other Laws
The failure to list any federal, state or city law, ordinance or regulation that is 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.
CHDO Contract with TCHPfor 1333 E. .Iefferson
Page 24 of 33
11.17. Assi�nment
Developer shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and 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 Maieure
If Developer becomes unable, either in whole or part, to fulfill its obligations under this
Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public
enemies, wars, blockades, insurrections, riots, epidemics, earthquakes, 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 undertake or commit any funds to physical or choice limiting actions,
including property acquisition, demolition, movement, rehabilitation, conversion, repair
or construction prior to the environmental clearance, and any violation of this provision
will result in the denial of any funds under this Contract.
11.20.2 Contract Not Constituting Commitment of Funds or Site Approval.
Notwithstanding any provision of this Contract, the Parties agree and acknowledge that
this Contract does not constitute a commitment of funds or site approval, and that such
commitment of funds or approval may occur only upon satisfactory completion of
environmental review and receipt by City of an authorization to use grant funds from
HUD under 24 CFR Part 58.
CHDO Contract with TCHP for 1333 E. ,7e�erson
Page 25 of 33
11.20.3 Compliance with the Uniform Relocation Act. Developer shall
comply with the relocation requirements of 24 CFR Part 92.353 and all other applicable
Federal and state laws and city ordinances and requirements.
11.20.4 Compliance with Davis-Bacon. Developer will comply with the
Davis-Bacon Act as described on Exhibit "H" — Davis Bacon Requirements of this
Contract. In order to monitor for compliance, Developer shall provide City access to
employee payrolls, contractor and subcontractor 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 —
Labor Relations Guide; Exhibit "H-5" — Start of Construction Form; Exhibit "H-6" —
Construction Complete Form; Exhibit "H-7" — EEO Statement; Exhibit "H-8" — Payroll
Deduction Authorization Form; and Exhibit "H-9" — 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.
11.20.7 Developer must take 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.
12. INDEMNIFICATION AND RELEASE
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
CHDO Cof�tract tivith TCHP for 1333 E. Je�{'ferson
Page 26 of 33
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY; AND DEVELOPER HEREBY
ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS,
AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS
FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE
PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN
PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER
LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND
HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE
OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN
CONNECTION WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS,
MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDE5
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS AND
SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME FORM AS ABOVE.
CHDO Contract with TCHP for 1333 E. Je„f erson
Pc�ge 27 of 33
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 property, Developer hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
14. INSURANCE AND BONDING
Developer will maintain coverage in the form of insurance or bond in the amount of
$117,043.00 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 specified 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 risks 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
thereo£
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" de�ned as autos owned, hired and
non-owned. Pending availability of the above coverage and at the discretion of City, the policy
shall be the primary responding insurance policy versus a personal auto insurance policy if or
when in the course of Developer's business as contracted herein.
CHDO Corztract with TCHPfor 1333 E. Je�'ferson
Page 28 of 33
Workers' 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 shall 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 coverage and has executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include employees,
officers, agents, and volunteers of City.
The Workers' 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.
In the event there are any local, federal or other regulatory insurance or bonding requirements for
the project, and such requirements exceed those specified herein, the former shall prevail.
CHDO Contract with TCHP for 1333 E. Je�'ferson
Page 29 of 33
Developer shall require its contractors to maintain applicable insurance coverage, limits, and
other insurance requirements as those specified herein; and, Developer shall require its
contractors to provide Developer with 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 risk 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
knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on behalf of
Developer, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan or cooperative agreement.
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 certification 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 entering 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 with TCHP for 1333 E. Je f ersorl
Pc�ge 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 under any bankruptcy or financial insolvency provision
of law.
17. 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, certified mail
return receipt requested; and (iii) addressed to the other Party at the address set out below or at
such other address as the receiving Party designates by proper notice to the sending Party.
Citv:
City Manager's 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 County Housin� Partnership, Inc.
3204 Collinsworth Street
Fort Worth, TX 76107
18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motion, resolution or action passed or taken, to enter into this Contract
and to perform the responsibilities herein required.
CHDO Contract with TCHP for 1333 E. Jefferson
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
Worth, Tarrant County, Texas, this �--'
c:ity 5ecretary +�-�- �a v' y o0
M&C: ' ���1 �"°p°000�°�° `�
Date: ���'�(},,t�lQ .�'�p,'O�
C-a� 3 / ���..� : 3/a�/�/a-
AP�ROVED AS TO FORM AND LEGALITY:
1 /�I i � �`, �/ � ,�
=Assistant City Attor � ey
CHDO Contract with TCHP for 1333 E. Je f erson
Page 32 of 33
�eto have executed this Contract in Fort
G�'G �� 1�- '�--% , 2� 13 .
Parties
-�i of
�� �4.: \
OF FORT WORTH
City Manager
�FFICI�AL RECORD
�I'�'Y S�CRi�TAF81�
�'% �10�'Y�,1'�(
TARRANT COUNTY HOUSING
PARTTTFRCNTP TN("
Exhibits:
Exhibit "A" — Project Summary / Scope of Work
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 Backup Documentation
Exhibit "G" — 24 CFR Part 92 Subpart F— Project Requirements
Exhibit "H" — Davis Bacon Requirements
Exhibit "H-1"- Wage Decision
Exhibit "H-2"- Contractor Information Form
Exhibit "H-3 - Subcontractor Information Form
Exhibit "H-4 — Labor Relations Guide
Exhibit "H-5" — Start of Construction Form
Exhibit "H-6" — Construction Complete Form
Exhibit "H-7" — EEO Statement
Exhibit "H-8" — Payroll Deduction Authorization Form
Exhibit "H-9" — Officer Appointment Form
Exhibit "I"- Deed of Trust Form
Exhibit "J"- Environmental Mitigation Action (Not Applicable)
Exhibit "K"- Section 3 Reporting Requirements
CHDO Contract with TCHP.for 1333 E. Jefferson
Pcrge 33 of 33
EXHIBIT "A"
PROJECT SUMMARY - SCOPE OF WORK
1333 E. JEFFERSON
DESCRIPTION:
Developer will construct a 1535 square foot, 3 bedroom and 2 bathroom single-family home on a lot
size of approximately 6,000 square feet. Construction will include a one car detached garage. Fencing
will be located at the rear and side yards. Landscaping will include front yard.
The construction shall contain the following accessibility requirements
The following appliances and related amenities will be included in the sale of the house:
• Ceiling Fan(s) in 3 BR, 1 LR.
• Washer and Dryer hookups
• 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").
(`t1Tl(1 F�mrlc _ Fvhihitc
EXHIBIT "A-1"
FINAL ELEVATION AND PROPOSED PLANS AND SPECIFICATIONS
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EXHIBIT "A-2"
LEGAL DESCRIPTION
Highland Park Addition - Ft Wth Blk 53 Lot 18
('FITI(1 Fnnric _ Fvhihitc
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1333 E. Jefferson
Phase Activity Beginning Week — subject to
weather ermittin
PHASE I ACTNITIES: Contract signed May 13
Lot Acquisition/ Preparation May 20
(Demolition)
August 12
Plumbing
August 19
Foundation
PHASE I DEADLINE:
Au ust 23 lst Payment $36,443
PHASE II ACTIVIITES: Framing August 26
Roofing September 2
Insultation September 9
Siding / Brick September 16
Top-out Plumbing, Electrical, HVAC September 23
PHASE II DEADLINE: 2�d payment $38,500
October 4
PHASE III ACTIVIITES: Sheetrock, Tape/Bed/Texture/Trim-out October 7
Paint October 21
Cabinets, Countertops October 28
HVAC, Plumbing, Electrical, Finish- November 4
Out
PHASE III DEADLINE: 3ra payment $28,500
November 8
PHASE IV ACTIVIITES: Landscape, Paving November 11
Flooring November 18
Appliances, Interiar trim-out/finish November 25
PHASE IV DEADLINE: Construction Final Payment $13,600
November 29
CONSTRUCTION TOTAL $117,043
DEVELOPER FEE Paid at time of home sale to HOME $11,704
Eligible Buyer
*Developer will be reimbursed for eligible expenses only. The amounts are estimates and are subject to
change.
i': �IT�(.) Fli�l�is - T�.�tut�i�s
Exhibit C
Budget
BUDGET — [1333 E. Jefferson]
Total Cost: $ _117,043,
Project HOME Funds Awarded: $_117,043
Operating Funds Awarded: $
TOTAL AWARDED FUNDS: $_117,043
* 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 Stud
2. Feasibility (ie: preliminary work
write-up, cost estimates, desi n
3. Other
Total Predevelopment Cost (1+2=3)
Development Cost
4. Land and/or building acquisition 2,143 2,143
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 z,5o0
12. Construction Management Fee
13. Construction Loan Interest
14. Property Survey 500 500
15. Legal Fees 250 Proceeds of Sale 250
16. Rea) Estate Fees 4,680 Proceeds of Sale 4,680
17. Utility Hookup/Impact Fees 3,200 3,200
18. Title & Recording Fees 78o Proceeds of Sale 780
19. Program Related Expenses 6,25o CHDO Operating Funds 6,250
20. Construction Management
21, Bond Fees
Total Development Cost (Total of 117,043 129,478
items 4 — 21)
Total Project Cost 117,043 12,435 129,478
('NTl(1 F�mflc _ Fvhihitc
EXHIBIT "D"
AUDIT REQUIREMENTS
Pages 1-2: Summary of Audit Requirements
• Page 3: Single Audit Report Checklist
• Page 4: Audit Certification Form
runn F,,,,rl� _ Fvh;h;r�
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards (from City of Fort Worth and other funding
sources) during their fiscal years shall obtain either an annual single audit or a program specific audit.
Organizations may have a program specific audit in accordance with OMB Circular A-133, or other standard
set forth in the Contract if applicable, if they expended funds for only one federal program as listed in the
Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than one federal program, a
single audit is required. The audited time period is the organization's fiscal year, and not the City of Fort
Worth's funding period.
The audit shall be conducted by a certified public accountant (CPA) that is licensed at the time of the audit
by the appropriate regulatory body. The CPA shall meet all of the general standards concerning
qualifications, independence, due professional care and quality control as required by Government ALcditing
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
Checklist." Additional guidance on the conduct and reporting of these audits is contained in the latest issuance
of the following publications:
Government Auditing Standards issued by the Comptroller General of the United States, 2003
OMB Circular A-133 as revised 6/30/97 and amended June 2003
OMB Circular A-133 Compliance Supplement
AICPA's Statement of Position 98-3, "Audits of States, Local Governments, and Not-for-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"
Government Auditing Standards by the Texas Department of Housing and Commzcnity Affairs for Properties
Receiving Low Income Housifzg 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 make 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 or�anization's fiscal year end in the �ear that the project was completed: (required for all
subreci�ients)
Completed Audit Certification Form
runn F,,,,�i� _ Fvh;h;r�
Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit
ep nod•
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 still be kept available for review or audit by City of Fort Worth staff (OMB A-133 Subpart B Sec 200(d).
If additional information is needed concerning the audit requirements, please call (817) 392-6141.
runn F,,,,�� _ Fvh;h;r�
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 Auditing Standards
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 GovernmentAacditing 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 findings 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.
(`NTl(1 Fnnilc _ Fvhihitc
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
Audit Certification Form
Subrecipient: _Tarrant County Housing Partnership, Inc. Fiscal Year Ending: _9_/30 /13
Month Day Year
� We have exceeded the federal expenditure threshold of $500,000. We will have our Single Audit or
Program Specific Audit completed and will submit the audit report within nine (9) months after the end of the
audited iiscal year.
❑ We did not exceed the $500,000 federal expenditure threshold required for a Single Audit or a Program
Speciiic Audit to be performed this fiscal year. (Fill out schedi�le below)
Must be filled otct if Single Audit or Program Audit is not required:
Federal Expenditure Disclosure
Federal Funds
Pass Through
Federal Grantor Grantor
Program Name & Contract
CFDA Number Number
Expenditures
Total Federal Expenditi�res.for this Fiscal Year
Donna VanNess
Printe
utho ' e ature ( st be CF , EO or equivalent)
�
President
Title (Must be CFO, CEO or equivalent)
817-924-5091
Phone Nuinber
5/10/13
Date
Failure to submit this or a similar statement or failure to submit a completed single audit package as
described in the audit requirements by the required due date will result in suspension of funding and will affect
eligibility for future funding.
Submit this form to the City of Fort Wortli Ho��sing and Economic Development Departinent within 60 days after the end of yoi�r
Fiscal year
runn F,�n.�� _ F„h;h;r�
Exhibit E-1
INVOICE
CHDO:
Project Site Address:
Period of Service:
Tarrant County Housing Partnership, Inc.
1333 E. Jefferson Ave., Fort Worth, TX 76104
CHDO Certification: I certify that the costs incurred are valid and
consistent with the terms and conditions of the contract between City and
CHDO By signing this invoice, I certify that to the best of my knowledge
and belief the data included in this report, Exhibit G, and in all backup
documentation is true and accurate. It is acknowledged that the provision
of false information could leave the certifying official subject to the
penalties of federal, state, and local law.
Signature and Date:
Name:
Title:
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EXHIBIT "F"
STANDARD OF BACKUP DOCUMENTATION
FORTWURTHo
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 check)
Soft Costs (Architect, Engineer, • Invoice
Landscaping, Surveys, Appraisals, - Invoice should include:
Environmental, Legal Fees, Other date;
Consultants, Etc.) company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (ie. bank statement or cancelled check)
• If applicable, fully executed contract/service agreements and applicable
amendments
- Provide printout from www.sam.�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
FORTWORTH��
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 Employee and Supervisor
- Pay Period Dates Should be Reflected
� Copy of applicable inspection report(s) conducted by HED Inspector
• Copy of executed agreements
- Provide printout from www.sam.�ov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
• For retainage for the prime contractor, lien waivers for the prime and all
subcontractors.
Materials Purchased by Developer • Invoice
- Invoice should include:
date;
company's letterhead;
address where materials will be used;
description of service(s) and item(s);
cost by quantity; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
Developer Fee • Final Invoice Reflecting Total Development Cost
• Proof of payment for any other entity contributing to development costs.
• Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation required in contract for home/unit produced
(i.e. income docs for eligible homebuyer, sales contract between
developer/homebuyer, HAP Deed of Trust w/ required affordability period
language, etc)
Housing and Economic Development
FINAL as of 4/24/2013 Page 2
EXHIBIT "G"
24 CFR PART 92 SUBPART F- PROJECT REQUIREMENTS
two-year match reduction period in accordance with the provisions of paragraph
(a)(3) of this section.
b. Reduction of match for participating jurisdictions in disaster areas. If a participating
jurisdiction is located in an area in which a declaration of major disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, it may request
a reduction of its matching requirement. For a local participating jurisdiction, the HUD
Field office may reduce the matching requirement speciiied in § 92.218 by up to 100
percent for the fiscal year in which the declaration of major disaster is made and the
following fiscal year. For a State participating jurisdiction, the HUD Field office may
ceduce the matching requirement specified in § 92.218, by up to 100 percent for the
iiscal year in which the declaration of major disaster is made and the following fiscal
year with respect to any HOME funds expended in an area to which the declaration of a
major disaster applies. At its discretion and upon request of the participating jurisdiction,
the HUD Field Of�ice may extend the reduction for an additional year.
SUBPART F — PROJECT REQUIREMENTS
§ 92.250 Maximum Per-unit Subsidy Amount and Subsidy Layering
a. �Ltaximum per-ernit subsidy amoasnt. The total amount of HOME fiinds and ADDI fiinds
that a participating jurisdiction may invest on a per-unit basis in affordable housing may
not exceed the per-unit dollar limitations established under section 221(d)(3)(ii) of the
National Housing Act (12 U.S.C. 1'7151(d)(3)(ii)) for elevator-type projects that apply to
the area in which the housing is located. These limits are available from the Multifamily
Division in the HUD Field Ofiice. If the participating jurisdiction's per-unit subsidy
amount has already been increased to 210% as permitted under section 221(d)(3)(ii) of
the National Housing Act, upon request to the Field Office, HUD will allow the per-unit
subsidy amount to be increased on a program-wide basis to an amount, up to 240% of the
original per unit limits.
Sarbsidy layering. Before committing funds to a project, the participating jurisdiction
must evaluate the project in accordance with guidelines that it has adopted for this
purpose and will not invest any more HOME funds, in combination with other
governmental assistance, than is necessary to provide affordable housing.
§ 92.251 Property Standards
a.
1. Housing that is constructed or rehabilitated with HOME funds must meet a(1
applicable tocal codes, rehabilitation standards, ordinances, and zoning ordinances
at the time of project completion, except as provided in paragraph (b) of this
section. The participating jurisdiction must have written standards for rehabilitation
that ensure that HOME-assisted housing is decent, safe, and sanitary. In the absence
of a local code for new construction or rehabilitation, HOME-assisted new
construction or rehabilitation must meet, as applicable: one of three model codes
(Uniform Building Code (ICBO), National Building Code (BOCA), Standard
45
(Southern) Building Code (SBCCI)); or the Council of American Building Officials
(CABO) one or two family code; or the Minimum Property Standards (MPS) in 24
CFR 200.925 or 200.926. To avoid duplicative inspections when FHA financing is
involved in a HOME-assisted property, a participating jurisdiction may rely on a
Minimum Property Standards (MPS) inspection performed by a qualified person.
Newly constructed housing must meet the current edition of the Model Energy Code
published by the Council of American Building Officials.
2. All other HOME-assisted housing (e.g., acquisition) must meet all applicable State
and loca( housing quality standards and code requirements and if there are no such
standards or code requirements, the housing must meet the housing qua(ity
standards in 24 CFR 982.401.
The housing must meet the accessibility requirements at 24 CFR part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
covered multifamily dwellings, as de�ned at 24 CFR 100.201, must also meet the
design and construction requirements at 24 CFR 100.205, which implement the Fair
Housing Act (42 U.S.C. 3601-3619).
4. Construction of all manufactured housing must meet the Manufactured Home
Construction and Safety Standards established in 24 CFR Part 3280. These
standards pre-empt State and local codes covering the same aspects of performance
for such housing. Participating jurisdictions providing HOME assistance to install
manufactured housing units must comply with applicable State and local laws or
codes. In the absence of such laws or codes, the participating jurisdiction must
comply with the manufacturer's written instructions for installation of manufactured
housing units. Manufactured housing that is rehabilitated using HOME funds must
meet the requirements set out in paragraph (a)(1) of this section.
b. The following requirements apply to housing for homeownership that is to be
rehabilitated after transfer of the ownership interest:
l. Before the transfer of the homeownership interest, the participating jurisdiction
must:
Inspect the housing for any defects that pose a danger to health; and
ii. Notify the prospective purchaser of the work needed to cure the defects and the
time by which defects must be cured and applicable property standards met.
2. The housing must be free from all noted health and safety defects before occupancy
and not later than 6 months after the transfer.
3. The housing must meet the property standards in paragraph (a)(1) of this section not
later than 2 years after transfer of the ownership interest.
An owner of rental housing assisted with HOME funds must maintain the housing in
compliance with al( applicable State and local housing qua(ity standards and code
requirements and if there are no such standards or code requirements, the housing must
meet the housing quality standards in 24 CFR 982.401.
46
d. All housing occupied by tenants receiving HOME tenant-based rental assistance must
meet the housing quality standards in 24 CFR 982.401.
§ 92.252 Qualification as Affordable Housing: Rental Housing
The HOME-assisted units in a rental housing project must be occupied only by households
that are eligible as low-income famities and must meet the following requirements to qualify
as affordable housing. The affordability requirements also apply to the HOME-assisted non-
owner-occupied units in single-family housing purchased with HOME fi�nds in accordance
with § 92.254.
a. Rent limitcrtion. HUD provides the following maximum HOME rent limits. The
maximum HOME rents are the lesser of:
The fair market rent for existing housing for comparable units in the area as
established by HUD under 24 CFR 888.111; or
2. A rent that does not exceed 30 percent of the adjusted income of a family whose
annua( income equals 65 percent of the median income for the area, as determined
by HUD, with adjustments for number of bedrooms in the unit. The HOME rent
(imits provided by HUD will include average occupancy per unit and adjusted
income assumptions.
b. Additional Rent limitations. In rental projects with iive or more HOME-assisted rental
units, twenty (20) percent of the HOME-assisted units must be occupied by veiy low-
income families and meet one of following rent requirements:
1. The rent does not exceed 30 percent of the annua( income of a family whose income
equals 50 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larger families. HUD provides the HOME rent limits
which include average occupancy per unit and adjusted income assumptions.
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. The rent does not exceed 30 percent of the family's adjusted income. If the unit
receives Federal or State project-based rental subsidy and the very low-income
family pays as a contribution toward rent not more than 30 percent of the family's
adjusted income, then the maximum rent (i.e., tenant contribution plus project-
based rental subsidy) is the rent allowable under the Federal or State project-based
rental subsidy program.
Initial rent schedule and astiliry allowances. The participating jurisdiction must establish
maximum monthly allowances for utilities and services (excluding telephone). The
participating jurisdiction must review and approve rents proposed by the owner for units
subject to the maximum rent (imitations in paragraphs (a) or (b) of this section. For all
units subject to the maximum rent limitations in paragraphs (a) or (b) of this section for
which the tenant is paying utilities and services, the participating jurisdiction must ensure
47
that the rents do not exceed the maximum rent minus the monthly allowances for utilities
and services.
d. Nondiscrimination against rental assistance sirbsidy holders. The owner cannot refuse to
lease HOME-assisted units to a certificate or voucher holder under 24 CFR part 982—
Section 8 Tenant-Based 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 document evidencing participation in a HOME tenant-based
rental assistance program because of the status of the prospective tenant as a holder of
such certi�icate, voucher, or comparable HOME tenant-based assistance document.
e. Periods ofAffordability. The HOME-assisted units must meet the affordability
requirements for not (ess than the applicable period specified in the following table,
beginning after project completion. The affordability requirements apply without regard
to the term of any loan or mortgage or the transfer of ownership. They must be imposed
by deed restrictions, covenants running with the land, or other mechanisms approved by
HUD, except that the affordability restrictions may terminate upon foreclosure or transfer
in lieu of foreclosure. The participating jurisdiction may use purchase options, rights of
tirst refusal or other preemptive rights to purchase the housing before foreclosure or deed
in lieu of foreclosure to preserve affordability. The affordability restrictions shall be
revived according to the original terms if, during the original affordability period, the
owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that
includes the former owner or those with whom the former owner has or had family or
business ties, obtains an ownership interest in the project or property.
Rental Housing Activity Minimum period of affordability in years
Rehabilitation or acquisition of existing 5
housing per unit amount of HOME funds:
Under $15,000
$15,000 to $40,000 10
Over $40,000 or rehabilitation involving 15
cefinancing
New Construction or acquisition of newly 20
constructed housing
f. Subsequent rents during the affordabiliry periocl.
The maximum HOME rent limits are recalculated on a periodic basis after HUD
determines fair market rents and median incomes. HUD then provides the new
maximum HOME rent timits to participating jurisdictions. Regardless of changes in
fair market rents and in median income over time, the HOME rents for a project are
not required to be lower than the HOME rent limits for the project in effect at the
time of project commitment.
48
2. The participating jurisdiction must provide project owners with information on
updated HOME rent limits so that rents may be adjusted (not to exceed the
maximum HOME rent limits in paragraph (t)(1) of this section) in accordance with
the written agreement between the participating jurisdiction and the owner. Owners
must annually provide the participating jurisdiction with information on rents and
occupancy of HOME-assisted units to demonstrate compliance with this section.
Any increase in rents for HOME-assisted units is subject to the provisions of
outstanding leases, and in any event, the owner must provide tenants of those units
not less than 30 days prior written notice before implementing any increase in rents.
g. A�� ustment of HOME rent limits for u particarlar project.
L Changes in fair market rents and in median income over time should be sufficient to
maintain the financial viability of a project within the HOME rent limits in this
section.
2. HUD may adjust the HOME rent limits for a project, only if HUD finds that an
adjustment is necessary to support the continued financial viability of the project
and on(y by an amount that HUD determines is necessary to maintain continued
financial viability of the project. HUD expects that this authority will be used
sparingly.
h. Tenant income. The income of each tenant must be determined initially in accordance
with § 92.203(a)(1)(i). In addition, each year during the period of affordability the
project owner must re-examine each tenant's annual income in accordance with one of
the options in § 92.203 selected by the participating jurisdiction. An owner of a
multifamily project with an affordability period of 10 years or more who re-examines
tenant's annual income through a statement and certification in accordance with
� 92.203(a)(1)(ii), must examine the income of each tenant, in accordance with
� 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who
accepts the tenant's statement and certification in accordance with � 92.203(a)(1)(ii) is
not required to examine the income of tenants in multifami(y or single-family projects
unless there is evidence that the tenant's written statement failed to completely and
accurately state information about the family's size or income.
Over-income tenants.
HOME-assisted units continue to qualify as affordable housing despite a temporary
noncompliance caused by increases in the incomes of existing tenants if actions
satisfactory to HUD are being taken to ensure that all vacancies are �lled in
accordance with this section until the noncompliance is corrected.
2. Tenants who no longer qualify as low-income families must pay as rent the lesser of
the amount payable by the tenant under State or local (aw or 30 percent of the
family's adjusted income, except that tenants of HOME-assisted units that have
been allocated low-income housing tax credits by a housing credit agency pursuant
to section 42 of the [nternal Revenue Code of 1986 (26 U.S.C. 42) must pay rent
governed by section 42. In addition, in projects in which the HOME units are
designated as floating pursuant to paragraph (j), tenants who no tonger qualify as
49
low-income are not required to pay as rent an amount that exceeds the market rent
for comparable, unassisted units in the neighborhood.
Fixed and floating HOME units. In a project containing HOME-assisted and other units,
the participating jurisdiction may designate fixed or floating HOME units. This
designation 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 during 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 HOME-assisted unit.
§ 92.253 Tenant and Participant Protections
a. Lease. The lease between a tenant and an owner of rental housing assisted with HOME
funds must be for not less than one year, unless by mutual agreement between the tenant
and the owner.
Prohibited lease terms. The lease may not contain any of the following provisions:
Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of the owner in a lawsuit brought in connection with the lease;
2. Tr•eatment of properry. 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. This prohibition, however, does not apply
to an agreement by the tenant concerning disposition of personal property remaining
in the housing unit after the tenant has moved out of the unit. The owner may
dispose of this personal property in accordance with State law;
Excusing owner from responsibiliry. Agreement by the tenant not to hold the owner
or the owner's agents legally responsible for any action or failuce to act, whether
intentional or negligent;
4. GVaiver of notice. Agreement of the tenant that the owner may institute a lawsuit
without notice to the tenant;
Waiver of legal proceedings. Agreement by the tenant that the owner may evict the
tenant or household members without instituting a civil court proceeding in which
the tenant has the opportunity to present a defense, or before a court decision on the
rights of the parties;
Waiver of a jasry trial. Agreement by the tenant to waive any right to a trial by jury;
7. YVaiver of right to appeal court decision. Agreement by the tenant to waive the
tenanYs right to appeal, or to otherwise challenge in court, a court decision in
connection with the lease; and
Tenant chargeable with cost of legal actions regardless of oartcome. Agreement by
the tenant to pay attorney's fees or other legal costs even if the tenant wins in a
50
court proceeding by the owner against the tenant. The tenant, however, may be
obligated to pay costs if the tenant loses.
c. Termination of terrancy. An owner may not terminate the tenancy or refuse to renew the
lease of a tenant of rental housing assisted with HOME titnds 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 (east 30 days
before the termination of tenancy.
d. Tenant selectzon. An owner of rental housing assisted with HOME funds must adopt
written tenant selection policies and criteria that:
l. Are consistent with the purpose of providing housing for very low-income and low-
income fami(ies;
2. Are reasonably related to program eligibility and the applicants' ability to pecform
the ob(igations of the lease;
3. Provide for the se(ection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicabte; and
4. Give prompt written notification to any rejected app(icant of the grounds for any
cejection.
§ 92.254 Qualification as Affordable Housing: Homeownership
a. Acqa�isition with or without rehabilitafion. Housing that is for acquisition by a family
must meet the affordability reauirements of this paragraph (a).
The housing must be single-family housing.
2. The housing must be modest housing as follows:
In the case of acquisition of newly constructed housing or standard housing,
the housing has a purchase price for the type of sing(e family housing that does
not exceed 95 percent of the median purchase price for the area, as described
in paragraph (a)(2)(iii) of this section.
[n the case of acquisition with rehabilitation, the housing has an estimated
value after rehabilitation that does not exceed 95 percent of the median
purchase price for the area, described in paragraph (a)(2)(iii) of this section.
iii. If a participating jurisdiction intends to use HOME funds for homebuyer
assistance or for rehabilitation of owner-occupied single-family properties, the
participating jurisdiction may use the Single Family Mortgage Limits under
Section 203(b) of the National Housing Act ( l2 U.S.C. 1'709(b)) (which may
be obtained from the HUD Field Of�ice) or it may determine 95 percent of the
median area purchase price for single family housing in the jurisdiction, as
51
follows. The participating jurisdiction must set forth the price for different
types of single family housing for the jurisdiction. The 95 percent of inedian
area purchase price must be established in accordance with a market analysis
tivhich ensured that a sufiicient number of recent housing sales 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
th►•ough 499 sales per month, a two-month reporting period; for less than 250
sales per month, at least a three-month reporting period. The data must be
listed in ascending order of sales price. The address of the listed properties
must include the location within the participating jurisdiction. Lot, square and
subdivision data may be substituted for the street address. The housing sales
data must reflect all, or nearly all, of the one-family house sales in the entire
participating jurisdiction. To determine the median, take the middle sale on the
list if an odd number of sales and if an even number, take the higher of the
middle numbers and consider it the median. After identifying the median sales
price, the amount should be multiplied by .95 to determine the 95 percent of
the median area purchase price. This information must be submitted to the
HUD Field Ofiice for review.
The housing must be acquired by a homebuyer whose family quali�ies as a low-
income family and the housing must be the principal residence of the family
throughout the period described in paragraph (a)(4) of this section.
4. Periods of affordability. The HOME-assisted housing must meet the affordability
requirements for not less than the applicable period speciiied in the following tab(e,
beginning after project completion. The per unit amount of HOME funds and the
affordability period that they trigger are described more fully in paragraphs (a)(5)(i)
(resale) and (ii) (recapture) of this section.
Homeownership assistance HOME amount Minimum period of affordability in years
per-unit
Under $15,000 5
$15,000 to $40,000 10
Over $40,000 15
5. Resale and recapture. To ensure affordability, the pai�ticipating jurisdiction must
impose either resale or recapture requirements, at its option. The participating
jurisdiction must establish the resale or recapture cequirements that comply with the
standards of this section and set forth the requirements in its consolidated plan.
HUD must determine that they are appropriate.
i. Resale. Resale requirements must ensure, if the housing does not continue to
be the principal residence of the family for the duration of the period of
affordability, that the housing is made available for subsequent purchase only
to a buyer whose family qualifies as a low-income family and will use the
52
property as its principal residence. The resale requirement must also ensure
that the price at resale provides the original HOME-assisted owner a fair return
on investment (including the homeowner's investment and any capital
improvement) and ensure that the housing will remain affordable to a
►•easonable range of low-income homebuyers. The period of affordability is
based on the total amount of HOME funds invested in the housing.
A. EYcept as provided in paragraph (a)(5)(i)(B) of this section, deed
restrictions, covenants running with the land, or other similar mechanisms
must be used as the mechanism to impose the resale requirements. The
affordability restrictions may terminate upon occurrence of any of the
following termination events: foreclosure, transfer in lieu of foreclosure
or assignment of an FHA insured mo��tgage to HUD. The participating
jurisdiction may use purchase options, rights of iirst refusal or other
preemptive rights to purchase the housing before foreclosure to preserve
affordability. The affordability restrictions shall be revived according to
the original terms if, during the original affordabiliiy peciod, the owner of
record before the termination event, obtains an ownership interest in the
housing.
B. Certain housing may be presumed to meet the resa(e restrictions (i.e., the
housing will be available and affordable to a reasonable range of low-
income homebuyers; a tow-income homebuyer will 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 enforcement mechanisms by the participating jurisdiction.
The presumption must be based upon a market analysis of the
neighborhood in which the housing is located. The market analysis must
include an evaluation of the (ocation and characteristics of the housing
and residents in the neighborhood (e.g., sale prices, age and amenities of
the housing stock, incomes of residents, percentage of owner-occupants)
in relation to housing and incomes in the housing market area. An
analysis of the current and projected incomes of neighborhood residents
for an average period of affordability for homebuyers in the neighborhood
must support the conclusion that a reasonable ►•ange of low-income
families wi(I continue to qualify for mortgage financing. For example, an
analysis shows that the housing is modestly priced within the housing
market area and that families with incomes of 65% to 80% of area median
can afford monthly payments t�nder average FHA terms without other
government assistance and housing will remain affordable at least during
the next five to seven years compared to other housing in the market area;
the size and amenities of the housing are modest and substantial
rehabilitation will not significantly increase the market value; the
neighborhood has housing that is not currently owned by the occupants,
but the participating jurisdiction is encouraging homeowttership in the
neighborhood by providing homeownership assistance and by making
improvements to the streets, sidewalks, and other public facilities and
services. If a participating jurisdiction in preparing a neighborhood
revitalization strategy under § 91.215(e)(2) of its consolidated plan or
Empowerment Zone or Enterprise Community application under 24 CFR
53
part 597 has incorporated the type of market data described above, that
submission may serve as the required analysis under this section. If the
participating jurisdiction continues to provide homeownership assistance
for housing in the neighborhood, it must periodically update the market
analysis to verify the original presumption of continued affordability.
ii. Recapture. Recapture provisions must ensure that the participating jurisdiction
recoups all or a portion of the HOME assistance to the homebuyers, if the
housing does not continue to be the principal residence of the family for the
duration of the period of affordability. The participating jurisdiction may
structure its recapture provisions based on its program design and market
conditions. The period of affordability is based upon the total amount of
HOME funds subject to recapture described in paragrlph (a)(5)(ii)(A)(5) of
this section.
A. The following options for recapture requirements are acceptable to HUD.
The participating jurisdiction may adopt, modify or develop its own
recapture requirements for HUD approval. In establishing its recapture
cequirements, the participating jurisdiction is subject to the limitation that
when the recapture requirement is triggered by a sale (voluntary or
involuntary) of the housing unit, and there are no net proceeds oc the net
proceeds are insufficient to repay the HOME investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The
net proceeds are the sales price minus superior loan repayment (other than
HOME funds) and any closing costs.
Recaptcrre entire amount. The participating jurisdiction may
recapture the entire amount of the HOME investment from the
homeowner.
2. Reduction during affordability period. The participating jurisdiction
may reduce the HOME investment amount to be recaptured on a
prorata basis for the time the homeowner has owned and occupied
the housing measured against the required affordability period.
Shared net proceeds. If the net proceeds are not sufficient to
recapture the fiill HOME investment (or a reduced amount as
provided for in paragraph (a)(5)(ii)(A)(2) of this section) plus enable
the homeowner to recover the amount of the homeowner's
downpayment and any capital improvement investment made by the
owner since purchase, the participating jurisdiction may share the net
proceeds. The net proceeds are the sales price minus loan repayment
(other than HOME funds) and closing costs. The net proceeds may
be divided proportionally as set forth in the following mathematical
formulas:
54
HOME InvestmendHOME Investment HOME amount to be
+ homeowner investment x Net Proceeds = recaptured
0 � � � � � � � � m � � � i� 0 0 �IHOME Investment x Net Proceeds = amount to homeowner
+ homeowner investment
4. Owner investment retz�rned frrst. The participating jurisdiction may
permit the homebuyer to recover the homebuyer's entire investment
(downpayment and capital improvements made by the owner since
purchase) before recapturing the HOME investment.
Amount subject to recapture. The HOME investment that is subject
to recapture is based on the amount of HOME assistance that enabled
the homebuyer to buy the dwelling unit. This includes any HOME
assistance that reduced the purchase price from fair market value to
an affordable price, but excludes the amount between the cost of
producing the unit and the market value of the property (i.e., the
development subsidy). The recaptured fiinds must be used to carry
out HOME-eligible activities in accordance with the requirements of
this part. If the HOME assistance is only used for the development
subsidy and therefore not subject to recapture, the resale option must
be used.
Special considerations for single family properties with more than
one arnit. If the HOME funds are only used to assist a low-income
homebuyer to acquire one unit in single-family housing containing
more than one unit and the assisted unit will be the principal
residence of the homebuyer, the affordability requirements of this
section apply only to the assisted unit. If HOME funds are also used
to assist the low-income homebuyer to acquire one or more of the
rental units in the single-family housing, the affordability
requirements of § 92.252 1pply to assisted rental units, except that
the participating jurisdiction may impose resale or recapture
restrictions on all assisted units (owner-occupied and rental units) in
the single family housing. If resale restrictions are used, the
affordability requirements on all assisted units continue for the
period of affordability. If recapture restrictions are used, the
affordability requirements on the assisted rental units may be
terminated, at the discretion of the participating jurisdiction, upon
recapture of the HOME investment. (If HOME funds are used to
assist only the rental units in such a property then the requirements of
§ 92.252 would apply and the owner-occupied unit would not be
subject to the income targeting or affordability provisions of
§ 92.254.)
55
Lease-pzrrchase. HOME funds may be used to assist homebuyers
through lease-purchase programs for existing housing and for
housing to be constructed. The housing must be purchased by a
homebuyer within 36 months of signing the lease-purchase
agreement. The homebuyer must qualify as a low-income family at
the time the lease-purchase agreement is signed. If HOME funds are
used to acquire housing that will be resold to a homebuyer through a
lease-purchase program, the HOME affordability requirements for
rental housing in § 92.252 shall apply if the housing is not
transferred to a homebt�yer within forty-two months after project
completion.
8. Contract to patrchase. If HOME fiinds are used to assist a homebuyer
who has entered into a contract to purchase housing to be
constructed, the homebuyer must qualify as a low-income family at
the time the contract is signed.
9. Pr•eserving affordabiliry.
(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 HOME fimds to acauire the housing through a
purchase option, right of �irst refusal, or other preemptive right before
foreclosure, or to acquire the housing at the foreclosure sale, to
undertake any necessary rehabilitation, and to provide assistance to
another homebuyer. The housing must be sold to a new eligible
homebuyer in accordance with the requirements of § 92.254(a).
Additional HOME funds may not be used if the mortgage in default
was funded with HOME funds.
(ii) The total amount of original and additional HOME assistance
may not exceed the maximum per-unit subsidy amount established
under § 92.250. Alternatively to charging the cost to the HOME
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 HOME program, so that the additional
HOME funds for the housing are not subject to the maximum per-unit
subsidy amount.
b. Rehabilitation not involving acquisition. Housing that is currently owned by a family
qualifies as affordable housing only if:
i. The estimated value of the property, after rehabilitation, does not exceed 95 percent
of the median purchase price for the area, described in paragraph (a)(2)(iii) of this
section; and
2. The housing is the principal residence of an owner whose family qualifies as a low-
income family at the time HOME fiinds are committed to the housing.
56
c. Otivnership interest. The ownership in the housing assisted under this section must meet
the de�inition of "homeownership" in � 92.2.
d. New co»struction without acqasisition. Newly constructed housing that is built on
property currently owned by a family which will occupy the housing upon completion,
qualifies as affordable housing if it meets the requirements under paragraph (a) of this
section.
§ 92.255 Converting Rental Units to Homeownership Units for Existing Tenants
The participating jurisdiction may permit the owner of HOME-assisted rental units to convert
the rental tmits to homeownership units by selling, donating, or otherwise conveying the units
to the existing tenants to enable the tenants to become homeowners in accordance with the
requirements of § 92.254. If no additiona( HOME fi�nds are used to enable the tenants to
become homeowners, the homeownership units are subject to a minimum period of
affordability equal to the remaining affordable period if the units continued as rental units. If
additional HOME fiinds are used to directly assist the tenants to become homeowners, the
minimum period of affordability is the affordability period under § 92.254(a)(4), based on the
amount of direct homeownership assistance provided.
§ 92.256 Reserved
§ 92.257 Religious Organizations
a. Organizations that are religious or faith-based are eligible, on the same basis as any other
ocganization, to participate in the HOME program. Neither the federal government nor a
state or (ocal government receiving funds under HOME programs shall discriminate
against an organization on the basis of the organization's religious character or affiliation.
b. Organizations that are directly fimded under the HOME program may not engage in
inherently religious activities, such as worship, religious instruction, or prose(ytization,
as part of the assistance funded under this part. If an organization conducts such
activities, the activities must be offered separately, in time or location, from the
assistance fiinded under this part, and participation must be voluntary for the
bene�iciaries of the assistance provided.
c. A religious organization that participates in the HOME program will retain its
independence from federal, state, and local governments, and may continue to carry out
its mission, including the definition, practice, and expression of its religious beliefs,
provided that it does not use direct HOME funds to support any inherently religious
activities, such as worship, religious instruction, or proselytization. Among other things,
faith-based ocganizations may use space in their facilities, without removing religious
art, icons, scriptures, or other religious symbols. In addition, a HOME-funded religious
o►•ganization retains its authority over its internal governance, and it may retain religious
terms in its oeganization's name, se(ect its board members on a religious basis, and
include religious references in its organization's mission statements and other governing
documents.
Fil
d. An organization that participates in the HOME program shall not, in providing program
assistance, discriminate against a program beneiiciary or prospective program
beneficiary on the basis of religion or religious belief.
e. HOME funds may not be used for the acquisition, construction, or rehabilitation of
structures to the extent that those structures are used for inherently religious activities.
HOME funds may be used for the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used for conducting eligible activities under
this part. Where a structure is used for both eligible and inherently religious activities,
HOME funds may not exceed the cost of those portions of the acquisition, construction,
or rehabilitation that are attributable to eligible activities in accordance with the cost
accounting requirements applicable to E-IOME funds in this part. Sanctuaries, chapels, or
other rooms that a HOME-funded religious congregation uses as its principal place of
worship, however, are ineligible for HOME-funded improvements. Disposition of real
property after the term of the grant, or any change in use of the property during the term
of the grant, is subject to government-wide regulations governing real property
disposition (see 24 CFR parts 84 and 85).
If a state or local government voluntarily contributes its own fimds to supplement
Federally funded activities, the state or local government has the option to segregate the
federal funds or commingle them. However, if the funds are commingled, this section
applies to all of the commingled funds.
§ 92.258 Elder Cottage Housing Opportunity (ECHO) Units
a. General. HOME funds may be used for the initial purchase and initial placement costs of
elder cottage housing opportunity (ECHO) units that meet the requirements of this
section, and that are small, free-standing, barrier-free, energy-efiicient, removab(e, and
designed to be installed adjacent to existing single-family dwellings.
b. Eligible owners. The owner of a HOME-assisted ECHO unit may be:
1. The owner-occupant of the single-family host property on which the ECHO unit
will be located;
2. A participating jurisdiction; or
A non-profit organization.
Eligible terrants. During the affordability period, the tenant of a HOME-assisted ECHO
unit must be an elderly or disabled family as defined in 24 CFR 5.403 and must also be a
low-income family.
d. Applicable reqasirements. The requirements of § 92.252 of this part apply to HOME-
assisted ECHO units, with the following modifications:
Only one ECHO unit may be provided per host property.
2. The ECHO unit owner may choose whether or not to charge the tenant of the ECHO
unit rent, but if a rent is charged, it must meet the requirements of § 92.252.
58
EXHIBIT "H"
DAVIS BACON REQUIREMENTS
Federal Labor Standards Provisions u.s. Department of Housing
and Urban Development
Office of �abor Relations
Appllcablllty
The Project or Program to which the construction work
covered by this conlract pertains is being assisted by the
United States of America and lhe following Federal Labor
Standards Provisions are included in this Contracl
pursuant to the provisions applicable to such Federal
assistance.
A. 1. (I) Minimum Wages. Ali laborers and mechanics
employed or working upon the site of the work, will be paid
unconditionally and not less oiten than once a week, and
without subsequent deductlon or rebate on any account
(except such payroll deduclions as are permitted by
regulations issued by the Secretary of labor under the
Copeland Act (29 CFR Part 3), the full amounl of wages
and bona fide fringe benefits (or cash equivalents thereof)
due al time of payment computed at rates not less than
those contained in the wage delermination of the
Secretary of Labor which is attached hereto and made a
part hereof, regardless of any contractual reiationship
which may be alieged to exist between ►he contractor and
such laborers and mechanics. Contributions made or
costs reasonabiy anticipated for bona fide frfnge benefits
under Section I(b)(2) ot the Davis-Bacon Act on behalf of
laborers or mechanics are considered wages pafd to such
laborers or mechanics, subjecl to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less otten
than quarterly) under plans, fu�ds, or programs, which
cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period.
Such laborers a�d mechanics shall be paid the appropriate
wage rate and fringe benefits on the wage determination
for the classification of work actually performed, wilhout
regard to skili, except as provided in 29 CFR 5.5(a)(4).
Laborers or meChanics performing work in more than one
classificalion may be compensated at the rate specified for
each classification for the time actuaily worked therein:
Provided, Thal the employer's payroll records accurately
set forth the time spent in each classification in which
work is performed. The wage determinatfon (including any
additionai classification and wage rates conformed under
29 CFR 5.5(a)(1)(ii) and the Davis-Bacon posler (WH-
1321) shall be posted al ail times by the contractor and its
subcontractors at fhe site of the work in a promineM and
accessible, place where it can be easily seen by the
workers.
(II) (a) Any class of laborers or mechanics which is not
lisled in the wage determination and which is to be
employed under the contract shall be classified in
conformance with the wage determination. HUD shall
approve an additionai classiTicalion and wage rate and
fringe benefits therefor only when the foilowing criteria
have been met:
(1) The work to be performed by the classificatlon
requested is not per(ormed by a classification In lhe wage
determination; and
(2) The classification is utilfzed in the area by ihe
construction industry; and
(3) 7he proposed wage rate, including any bona fide
fringe benefits, bears a reasonable relationship lo the
wage rates contained in the wage determination.
(b) If the contractor and the laborers and mechanics to be
employed in lhe classiffcation (if known), or their
representatives, and HUD or ils designee agree on the
classificalion and wage rate (inciuding the amount
designated for fringe benefits where appropriate), a report
of the action taken shall be sent by HUD or its designee to
the Administrator of the Wage and Hour Division,
Employment Standards Administration, U.S. Department of
Labor, Washington, D.C. 20210. The Administrator, or an
authorized representalive, wiil approve, modity, or
disapprove every additional classificalion action wilhin 30
days ot receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30•day period ihat
additfonal lime is necessary. (Approved by the Oitice of
Management and Budget under OMB controi number 1215-
0140.)
(c) In the event the contractor, the laborers or mechaniCs
to be employed in the classiflcation or their
representatives, and HUD or its designee do not agree on
the proposed classificalion and wage rate (including the
amount designated for iringe bene(its, where approprfate),
HUD or its designee shall refer the questions, including
the v(ews oi ail interested patties and Ihe recommendation
of HUD or its designee, to the Administrator for
determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of
receipt and so advise NUD or its designee or will notify
HUD or its designee within the 30-day period that
additlonal time is necessary. (Approved by lhe Oftice of
Managemenl and Budget under OMB Conlrol Number
1215-0140.)
(d) The wage rate (including fringe benefits where
appropriate) determfned putsuant to subparagrephs
(t)(ii)(b) or (c) of this paragraph, shall be pafd to all
workers periorming work in the classitication under lhis
contract from the first day on which work is performed in
the classificalion.
(111) Whenever Ihe minimum wage rate prescribed in the
conlract for a class of laborers or mechanics includes a
tringe benefit which is not expressed as an houriy rate, lhe
contractor shall either pay the benefit as stated in the
wage determination or shall pay anolher bona fide fringe
benefit or an hourly cash equivalent thereof.
(iv) If the contraclor does not make payments to a trustee
or other third person, the contractor may consider as parl
form HUD-4010 (06/2009)
Previous edilions are obsolete Page 1 of 5 ref. Handbook 1344.1
of the wages of any laborer or meChanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anlicipated in providing bona fide fringe affected, and records whfch show the costs anifcipated or
benefits under a plan or program. Provided, That the the actual cost incurred in providing such benefita.
Secretary ot l.abor has found, upon the written req�est of Contractors employing apprentices or trafnees under
the coniractor, that the applicable slandatds of the Davis- approved programs shall mai�tain written evidenCe of the
Bacon Act have been met. The Secretary of Labor may registration ot apprenticeship programs and certification ot
require the contractor to set aside in a separate account trainee programs, the registration of lhe apprentices and
assets for the meeting of obligations under the plan or trainees, and the ratios and wage rates prescribed in the
p�ogram. (Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withhoiding. HUO or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request ot an authorized (II) (a) The contractor shail submlt weekly for each week
representative of the Department o( Labor withhold or in which any contract work is performed a copy oi all
cause to be withheld irom the conlractor u�der this payrolls to HUD or its designee if the agency ia a parly to
contract or any other Federal coMract with the same prime the contract, but ii ihe agency is not such a party, lhe
contractor, or any other Federally-assisted conlract contractor wili submit the payrolis to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor, or owner, as the case may be, for iransmisston to
which is held by the same prime contractor so much of the HUD or its designee. The payrolis submitted shall set out
accrued payments or advances as may be considered accurately and completely all of ihe information required
necessary to pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(f) except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shafl not be
contractor or any subcontractor ihe full amounl of wages included on weekly transmitlals. Instead the payrolls shali
required by the contract In the event of faflure to pay any only need to include an individuaily identifying number for
laborer or mechanic, including any apprentice, trainee or each employee (e.g., the last four digits of Ihe employes's
helper, employed or working on the site of the work, ail or social security number). The required weekly payroll
parl of lhe wages required by the conlract, HUO or its information may be submftted in any form desired.
designee may, aHer written notice to the contractor, Optional Form WH-347 is avaiiable for this purpose from
sponsor, applicant, or owner, lake such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any (urther http�//www dol aov/esa/wh,4t/forms/wh347instr htm or fts
payment, advance, or guarantee ot funds untii such successor site. The prime contractor is responsible for
violatfons have ceased. HUD or its designee may, after the submission of copies of payrolls by ail subcontractors.
written notice to lhe contractor, disburse such amounts Contractors and subcontractors shall maintain the fuil
withheid for and on account of the contractor or sociai security number and current address of each
subcontractor to the respective empioyees to whom they covered worker, and shall provide them upon requesl to
are due. The Comptroller General shall make such HUD or its dealgnee It the agency is a party to lhe
disbursements in lhe case of direct Davis-Bacon Act contracl, but i( the agency is not such a parly, the
coMracts. contractor will submil the
payrolis to the applicant
3. (I) Payrolis and basic records. Payrolis and basic sponsor, or owner, as the case may be, for transmiasfon to
records relating thereto shali be maintained by the HUD or iis designee, the contractor, or lhe Wage and Hour
co�lractor during the course of the work preserved (or a Division of the Department ot Labor for purposes of an
period of three years thereaiter for all laborers and investigation or audit of compliance wilh prevailing wage
mechanics working at the site of the work. Such records requlrements. It is not a violation of this subparagraph for
shali contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, h(s or her correct addresses and socia) security numbers lo the prime
classification, houriy rales of wages paid (including rates contractor for Its own records, without weekly subm(ssfon
of contributions or costs aniicipated for bona tide fringe to HUD or its designee. (Approved by lhe Otfice of
benefits or cash equivaients lhereof ot the types described Management and Budget under OMB Control Number
in Section I(b)(2)(8) of the Davis-bacon Act), daily and 1215-0149.)
weekly number of hours worked, deductions made and (b) Each payroll submitted shail be accompanfed by a
actual wages paid. Whenever the Secrelary oi Labor has "Statement of Compliance," signed by the contraclor or
found under 29 CFR 5.5 (a)(1)(Iv) lhat the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount ot any cosls the payment of the persons employed under the Conlract
reasonably anticipated in providing benefils under a plan and shall certify ihe following:
or program described in Section i(b)(2)(B) of the Davis- (�) That the payroll for the payroil period contains the
eacon Act, the conl�ector shali maintain records which information required lo be provided under 29 CFR 5.5
show thal the commilment to provide such benefils is
enforceable, that the (a)(3)(ii), the appropriate information is being maintained
plan or program is financially under 29 CFR 5.5(a)(3)(i), and that such information is
responsibie, and that lhe plan or program has been correct a�d complete;
Previous editlons are obsolete form HUD-t010 (O6I2009)
Page 2 of 5 ref. Handbook 1344.1
(2) That each labo►er or mechanic (inciuding each helper,
apprentice, and trainee) employed on the contracl during
the payroll period has been paid the tuil weekly wages
earned, without rebate, either directly or indirecUy, and
that no deductions have been made either directly or
indirecUy from the full wages earned, other than
permissible deductlons as set forth in 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less
lhan the applicabie wage rates and fringe benefits or cash
equivalenls for the classification of work performed, as
specified in the applicabie wage determfnation
incorporated into the contract.
(c) The weekly submission of a properly execuied
cerfification set (o�th on the reverse side oi Optionai Form
WH-347 shail satisfy the requiremeni for submission of the
"Statement of Compliance" required by subparagraph
A.3.(ii)(b).
(d) The (alsificalion of any of the above certifications may
subject the contractor or subcontractor to civil or criminal
proseculion under Section tOQ1 of Title 18 and Section
231 of Title 31 of the United States Code.
(III) The contractor or subcontractor shall make the
records requtred under subparagraph A.3.(i) availabie for
inspection, copying, or transcription by authorized
representatfves of HUD or its designee or the Department
of labor, and shali permil such representatives io
interview employees during working hours on the job. If
the conUactor or subcontractor lails to submit lhe required
records or to make them available, HUD or its designee
may, after written notice to the contractor, sponsor,
applicant or owner, take such action as may be necessary
to cause the suspension of any furlher payment, advance,
or guarantee of funds. Furthermore, failure to submit the
required records upon request or (o make such records
available may be grou�ds tor debarment action pursuant to
29 CFR 5.12.
4. Apprentices and Tralnees.
is not registered or otherwise employed as stated above,
shall be pafd not less than the applicable wage rate on the
wage determination for the ciassificalion of work actually
pertormed. In addition, any apprentice performing work on
the job site in excess ot the ralio permitted under the
regisiered program shail be paid not less than the
applicable wage rate on the wage determi�ation for the
work actually performed. Where a contractor is performing
conslruction on a project in a locality other than that in
which its program is registered, the ratios and wage rates
(expressed in percentages ot the journeyman's hourly
rate) specified fn the contractor's or subcontractor's
regislered program shall be observed. Every apprentice
must be paid at not less lhan the rate specitied in the
registered program for the apprentice's level of progress,
expressed as a percentage oi the journeymen hourly rate
specified in lhe applicable wage determination.
Apprentices shall be paid fringe benefits in accordance
with the provisions of the apprenliceship program. if the
apprenticeship program does not specify fringe benefits,
apprentices must be paid the full amounl of fringe benefits
listed on the wage determination for the applicabie
classification. If the Administrator determines that a
different practice prevails for the applicable apprentice
classificalion, fringes shall be paid in accordance with that
determination. In the event the Oftice of Apprenticeship
Training, Employer and Labor Services, or a State
Apprenticeship Agency recognized by the Office,
withdraws approval oi an apprenticeship program, lhe
contractor will no longer be permltted to utilize
apprentices at less than the applicable predetermined rate
Tor the work pertormed unlil an acceptable program is
approved.
(II) 7ralnees. Excepl as pravided in 29 CFR 5.16,
trainees will not be permitled to work at less than the
predetermined rate for the work performed unless they are
employed pursuant ',to and individuaily regislered in a
program which has received prior approval, evidenced by
formal certi(ication by lhe U.S. Department of Labor,
Employment and Training Administration. The ratio of
trainees to journeymen on lhe job site shail not be greater
than parmitted under the plan approved by the
Employmenl and Training Administration. Every irainee
must be paid at not less than the rate specified in the
approved program for the lrainee's level of progress,
expressed as a percentage ofthe journeyman hou�ly �ate
specifled In the applicable wage determi�ation. Trainees
shall be paid fringe benefits in accordance wilh the
provisions of the tralnee program. Ii the trainee program
does not mention fringe bene(its, trainees shall be paid
the full amount of fringe benefits listed on the wage
determination unless the Administrator of the Wage and
Hour Division determines that there is an apprenttceship
program associated wilh the corresponding journeyman
wage rate on the wage determination which provides for
less than fuli fringe benetits for apprentices. Any
employee listad on the payroll at a trainee rate who is not
registered and participating in a training plan approved by
(i) Apprentices. Apprentices will be permilted to work at
less Ihan the predetermined rate for the work they
performed when lhey are employed pursuant to and
individualiy registered in a bona fide apprenticeship
program regislered with the U.S. Departmen! of Labor,
Employment and Training Administration, OFfice of
Apprenticeship Training, Employer and Labor Services, or
with a State Appreniiceship AgenCy recognized by the
Office, or if a person is employed in his or her first 90
days of probationary employment as an apprentice in such
an apprenticeship program, who is not individually
registered in the program, but who has been certiNed by
the O(Iice of Apprenticeship Training, Employer and Labor
Services or a State App�enticeship Agency (where
appropriale) to be eligible for probationary employment as
an apprentice. The ailowable ratio of apprentices to
journeymen on the job site ln any cratt classification shall
not be greater than the ralio permitted to Ihe co�tractor as
to the entire work force under the registered program. Any
worker listed on a payroll at an apprentice wage rate, who
Previous editfons are obsolete form HUD-4010 (06/2009)
Page 3 oi 5 ref. Handbook 1344.1
the Employment and Training Administration shall be paid
not less lhan the appiicable wage rate on the wage
determination for the work actually periormed. In additfon,
any trainee performing work on the Job site in excess of
the ratio permitted under the registered program shall be
paid not less than the applicable wage rate on lhe wage
determination for lhe work actuaily per(ormed. In the
event the Empioyment and Training Adminisiration
withdraws approval of a lraining program, lhe contractor
will no longer be permitted to utilize trainees at less than
the appUcable predetermined rate tor the work performed
untii an acceptable program is approved.
(I11) Equai empioymont opportunity. The utilization of
apprentices, trainees and journeymen under 29 CFR Part 5
shall be in conformity with the equal employment
opporlunity requirements of Executive Order 11246, as
amended, and 29 CFR Part 30.
5. Compllance wHh Copeland Act requirements, The
coniractor shall comply with the requirements of 29 CFR
Part 3 which are inCorporated by reterence in ihis contract
6. Subcontracts. The co�traclor or subcontractor will
insert in any subcontracts the ciauses contained fn
subparagraphs t through 11 in this paragraph A and such
other ciauses as HUD or its designee may by appropriale
instructions require, and a copy of the appiicable
prevailing wage decision, and also a clause requiring the
subcontractors to include these clauses in any Iower tier
subcontracts. The p�ime contraCtor shall be responsible
for the compiiance by any subcontraclor or lower tier
subcontractor w(lh all the contract ciauses in this
paragraph.
7. Contract terminatlon; debarment, A breach of the
contracl clauses in 29 CFR 5.5 may be grounds for
terminatlon of the contract and for debarment as a
contractor and a subcontractor as provided in 29 CFR
5.12.
8. Compllance wlth Davis-Bacon and Related Act Requlrements.
All rulings and interpretalions of the Davis-Bacon and
Related Acts contained in 29 CFR Parts 1, 3, and 5 are
herein incorporated by reference in this contract
9. Disputea concerning labor standards. Disputes
arising out of lhe Iabor siandards provisions of this
contract shall not be subjecl lo lhe general disputes
clause of this contract. Such dispules shall be resolved in
accordance with the procedures of the Department of
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes
within the meaning of lhis clause include disputes belween
Ihe contractor (or any ot its subcontractors) and HUD or
its designee, the U.S. Department of Labor, or the
employees or their representatives.
10. (1) Certlflcatlo� of Eligibillty. By entering into this
conlract the conlractor certifies that neither it (nor he or
she) nor any person or firm who has an inlerest in lhe
contractor's firm is a person or firm ineligible to be
awarded Government contracts by virlue of Section 3(a) ot
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR Pari 24.
(II) No part of this contract shall be subcontracted to any
person or firm ineligible for award of a Government
contract by virtue oi Section 3(a) oi the Davis-Bacon Act
or 29 CFR 5.12(a)(1) or to be awarded NUD co�tracts or
parlicipate in HUD programs pursuant to 24 CFR Part 24.
(III) The penalty for making false statements is prescribed
in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally,
U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
"Federal Housing Administration lransactions", provides in
parl: "Whoever, for the purpose oi ... InfluenCing in any
way the action oi such Administration..... makes, utters or
publishes any stalement knowing the same to be false.....
shall be fined nol more than $5,000 or imprisoned not
more than lwo years, or both."
11. Complalnta, Proceedings, or Testlmony by
Employeea. No laborer or mechanic to whom the wage,
salary, or other labor standards provisions of this Contract
are applicable shall be discharged or in any other manner
discriminated against by the Contractor or any
subcontractor because such employee has fiied any
complaint or instituted or caused to be insliluted any
proceeding or has testified or is about to testify in any
proceeding under or relating to the labor standards
applicable under this Contract to his employer.
B. Contract Work Hours and Safety Standards Act The
provisions of this paragraph B are applicable where the amount ot the
prime contract exceeds $100,000. As used in lhis paragraph, the
tertns "Iaborers" and "mechanics" include watchmen and guards.
(1) Overtime requlreme�ts, No coniractor or subcontractor
contracting for any part of the contraCt work which may require or
involve the employment of laborers or mechanics shall require or
pe�mit any such laborer or mechanic in any workweek in which ihe
individual is employed on such woric to woric in excess oi 40 hours in
such workweek unless such laborer or mechanic receives
compensation at a rale not less lhan one and one-haif times lhe basic
rate of pay for all hours worked in excess ot 40 hours in such
workvreek.
(2) Vlolatfon; Ilabllity for unpald waqes; Ilquldated
damages. In the event of any violation of lhe ciause sel
forth in subparagraph (1) of this paragraph, the contractor
and any subcontractor responsible therefor shail be liable
for the u�paid wages. In addition, such contractor and
subcontractor shall be liable to the United States (in lhe
case ot work done under contract for the District of
Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated
damages shail be computed with respect to each individual
labore� or mechanic, inciudfng walchmen and guards,
employed in violation of the ciause set forth in
subparagraph (1) of this paragraph, in the sum of $10 for each
calendar day on which such individual was required or permitted to
work in excess of the standard workweek oi 40 hours without paymenl
of the overtime wages required by the clause set forth in sub
paragraph (1) of this paragraph.
Previous editions are obsolete fortn HUD-4010 (O6l2009)
Page 4 of 5 ref. Handbook 1344. t
(3) Withholding for unpaid wages and Ilquidated
damagea. HUD or ita desfgnee shall upon its own action
or upon written requeat of an authorized representative ot
the Department of Labor wlthhoid or cause to be withheld,
from any moneys payabis on account of work performed by
the confracta� or subcontractor under any suCh conlract or
any other Federal contraot with the same prime contraGt,
or any other Federally-assisted contract subJect to the
Contracl Work Nours a�d Safety Standards Act which Is
held by the same prEme contractor auch sums as may be
determined to be necessary to satisfy any Ilabflittes of
such contractor or subcontractor for unpaid wages and
Ilquidated damages as provided in the clause set fo�th in
aubpatagraph (2) of this paragraph.
(4) Subcontracta. The contractor or subconlractor shall
fnsert in any subContracts the clausas set forlh in
subparagraph (1) through (4) of this paragraph and also a
clause requiring the subcontractors to include these
clausea in any lower Uer subconlracts. 7he prime
contractor shall be responsible for compliance by any
subcontractor or lower lier subcontractor with the clauses
set to�ih in subparagraphs (1) lhrough (4) of this
paragraph.
C. Health and Sefety. The provisions of this paragraph C are
applicable where the amount of the prima contract exceeds $100,000.
(1) No laborer or meohanic sha�l be required to wotk in
surroundings o� under working condit(ons which are
unsanitary, hazardous, or dangerous lo his health and
safety as determined under construction safety and healih
standarda promulgated by the Secretary of Labor by
regulatlon.
(2) 7he Contractor shal� comply with all regulations
issued by lhe Secretary of Labor pursuant to Title 29 Part
1926 and fallure to comply may resuit In imposition of
sanctlons pursuant to the Confract Work Hou�s a�d Safety
Standarda Act, (Public Law 91-54, 83 Slat 98). 40 USC
3�1a et sea.
(3) The contracior shali include the provisions of this
paragraph In every subcontracl so that such provisions wiil
ba binding on each subContractor. The contraCtor shall
lake such action wfth respect to any subcontractor as the
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provislans.
Previoua editions are obsolete form HUD�401Q (OS/2W9)
Page 5 of 5 ret. Wandbook 1344.1
EXHIBIT "H-1"
WAGE DECISION
Pa�e l af 4
G�neral Decision Number: TX1300�5 C11f0�i/Z013 TX25
5uperseded General D�aision Numb�r: `PX2U12tl025
5tate: Ts,ea�
Cor�s.tructian '�ype: t2esiciential
C+�untie�: �7ohnson, P�rker �nc� "�az�ant ��iun�ies in T�xa�.
Residential Prcrjects c:onsi.��ing of s�:nc�le f�mily homes and
apartments up t�s and in�luding 4�te�r�.es.
Modification Numb�r Publication Dat�
0 Ol/09/2013
* SUTX3�9Q-020'09/O1t199d
Rat"es E"ringes
�AEtPEN2ER {excludiriq drywall
hanging ane! form sa�tting).......5 9.315
CGI�3ENT P4ASONlCON�RET�
FINiSHER tGxcludtng form
se�tinq) ........................$ 9.48
DRYW�iLL HANGEf2 ...................5 9.00
�'LECTRtCIAi� ......................5 10.219
Earm Setter ......................5 �.194
HVAC MECHANIC (ineludinq
duct, excluding Fi�e work).......5 �.337
C.abarer, common ..................5 `1.25
Painters:
Brush .......................5 8.85
:�pxay .......................$ lO.aCi
I�LUMB�it f includinq HVAC `�70RK} . . . . $ itl . �8'7
:it7t�FER, Tncluding 8uilt U�,
!��mpasit ion and �inqle� C�ly
�rc�ofs ............................$ t3.ei�(�
;i1��t t•9et31 1da=ker t r��xcluding
i{CIAC-ciUCC atbCiC) . . . . . . . . . . . . . . . . . . J 1'S . 1i�3
"TL� 5�TT�R ......................5 1.1.5q
YRtJCK GRIVEft .....................� 7.25
;�F�LDE�iS -�ecei*�e rate prescriberi for �rafG performin�
;cerat.ion tca •�h.ich ��reLciinq is inei�ienfial.
--....___W_�.___�.....W__________..__�..�._____�._____..�..�____.���._..��.__..__
.__.htip.11wwur.wciot.t�dvlwdoll�catile�lc�s�visbac;c�tv"C�CZS.clvb?v� tl....__.._._.__.�_._._.., . ,w..._._......v..__.. 3! 19/2U13 _. ,,.__-------n
Page 2 of 4
WELDERS - Iteceive rate prescribed for craEt performing
operation to which welding is incidental.
_���__=_=�=���s======_===__�����______________________��=��_��==
Unlisted classifications neetied Eor work not included within
the scope o£ the classificatians listed may be added after
award only as provided in the labor standards contract clauses
(29CFR 5.5 (a} (1) (ii)).
---------------------------------------------_--_---------------
The body of each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The cl.assifications are listed in alphabetical
order of "identifiers" that indicate whether the particular
rate is union or non-union.
Union Tdentifie�s
An identifier enclosed in do�ted lines beginning with
characters other than "SU" denotes that the union
classification and rate have found to be prevailing for that
classification. �xample: PLUM0198-005 07/Ol/2011. The first
four letters , PLUM, indic�te the international union and the
Pour-digit number, 0198, that follows indicates the local union
number or district council number where applicable , i.e.,
Plumbers Local 0198. The.next number, 005 in the example, is
an internal number used in processing the wage determination.
The date, 07/O1/2011, following these char�cters is the
effective date of the most current negotiiated rate/collective
bargaining aqreement which would be July 1, 2011 in the above
example.
Union prevailing wage rates will be updated to reflect any
changes in the collective bargaining agreements governing the
rates.
0000/9999: weighted union wage rates will be published annually
each January.
�Ion-Union Identifiers
Classifications listed under an "SU" identifier were derived
from survey data by computing average rates and are not union
rates; however, the data used in computing these rates may
include both union and non-union data. Example: SULA2004-007
5/13/?_010. SU indicates the rates are not union majority rates,
LA indicates the State of Louisiana; 2004 is rhe year of the
survey; and 00'l is an internal number used in producing the
wage determination. A 1993 or later date, 5/13/2010, indicat�s
the classifications and rates under that identifier were issued
http://www.wdol.gov/wdol/sca%les/davisbacDn/TX25.dvb?v=0 4/ 19/2013
Page 3 of 4
as a General Wage Determination on that date.
Survey wage rates will remain in effect and will not change
until a new survey is conducted.
----------------------------------------------------------------
WAGE DETERMINATiON APPEALS PROCESS
1.} Has there been an initial decision in the matter? This can
be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setCing forth a position on
a waqe determination matter
* a conformance (additional cLassification and rate) ruling
On survey related matters, initial contact, including requests
Eor summaries of su�veys, should be with the Wage and Hour
Reqional Office for the area in which the survey was conducted
because those Regional Offices have responsibility for tihe
Davis-Bacon survey program. I� the response from this initial
contact is not satisfactory, then the process described in 2.)
and 3.) should be followed.
With regard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Divieion
U.S. Department of Labor
200 Constitution Avenue, N.W.
�riashington, DC 20210
2.) If the answer to the question in 1.) is yes, then an
interested party (those affected by the action) can request
review and reconsideration from the Wage and Hour Administrator
(See 29 CER Part 1.8 and 29 CFR Part 7). Write tio:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
'Phe request should be accompanied by a full statement of the
interested party's position and by any information (waqe
payment data, project description, area practice material,
eCc.) that the requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an
interested party may appeal directly to the Administrative
Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitutian Avenue, N.W.
�rlashington, DC 20210
http://wwu�.wdol.gov/wdoUscafiles/davisbacc�n/TX25.dvb7v=Q �/ 19/2013
Page 4 of 4
4.) A1]. decisions by the Administrative Review Board are final.
-____________________�_�,�____=���_��===�_��_�_��_��W�_��������
END OE GENERAL DECISION
http:/lwww.wdol.gov/wdQUscafiles/davisbacon/TX25.dvb?u=0. 4/ 1.9�2D 1-3
EXHIBIT "H-2"
CONTRACTOR INFORMATION FORM
City af Fort Worth
Community Developrnent Block Grant (CDBG)
Construction Projects
CONTRACTOR INFORMATION
Date:
Project:
Contractor:
Address:
City:
Telephone:
Federal I,D. #:
Officers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
If sole ownership or partnership, list owner(s):
Fax:
I certify at the time of execution, hereof, neither my cornpany nor my corporate officers (if
incorporated) are listed in the list of Debarred, Suspended, and Ineligible Contractors maintained
by the U.S Department of Housing and Urban Development (HUD},
Signature:
EXHIBIT "H-3"
SUBCONTRACTOR INFORMATION FORM
City of Fort Worth
Community Development Block Grant (CDBG)
Constraction Projects
SUBCONTRACTOR INFORMATION
Date:
Project:
Subcontractor:
Address:
City:
Telephone:
Federal I.D. #:
Officers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
Fax:
If sole ownership or partnership, list owner(s):
I certify at the time of execution, hereof, neither my cornpany nor rny corporate officers (if
incorporated) are listed in the list of Debarred, Suspended, and Tneligible Contractors maintained
by the U.S Department of Housing and Urban Development (HUD).
Signature:
EXHIBIT "H-4"
LABOR RELATIONS GUIDE
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U.S. Department of Housing
and Urban Development
Labor Relations Desk Guide
LA01.DG
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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 contract for the Federal agency.
Our objective here is to provide you with a guide which is simple and non-bureaucratic yet
comprehensive and which will help you better understand and comply with Davis-Bacon labor
standards. HUD's Office of Labor Relations worked closely with the Department of Labor's
Wage and Hour Division to make sure that the labor standards provisions in your contract and
the specifics of complying with them represent the latest information. It is the Department of
Labor which has general administrative oversight of all Federal contracting agencies, such as
HUD, which administer the day-to-day responsibilities of enforcing Davis-Bacon provisions in
construction contracts they either fund or assist in funding.
There are three chapters in this Guide. The 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 Relations on-line:
ntfp://www.hud. c�ov/offic�s/olr
Obtain additional copies of this Guide and other publications at our website or by telephone
firom HUD's Customer Service Center at (800)767-7468.
�� �, � . � � : , .
INiRODUCiION................................................................................................................ I
, . . �, � � : �
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1-1
DAVIS-BACON AND OTHER LABOR LAWS . .......................................................
a. The Davis-Bacon Act (DBA) ...............................................................................
b. The Contract Work Hours and Safety Standards Act (CWNSSA) ......................
c. The Copeland Act (Anti-Kickback Act) ................................................................
d. The Fair Labor Standards Act (FLSA) ................................................................
DAVIS-BACON REGU�ATIONS .............................................................................
CONSTRUCTION CONTRACT PROVISIONS .......................................................
RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR ......................................
1-1
1-1
1-1
1-2
1-2
1-2
1-2
1-3
1-2
1-3
1-4
1-5
RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR .................................1-4
:. � � � � - x ��•� � �+-�
., � •� *�� • - 11 -
SECTION - I THE BASICS
2-1
�
2-3
2-4
THEWAGE DECISION ...........................................................................................2-1
a. The work classifications and wage rates ............................................................2-1
b. Posting the wage decision ..................................................................................2-2
ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES .......................2-2
a. Additional classification rules .............................................................................2-2
b. Making the request .............................................................................................2-3
c. H U D review ........................................................................................................ 2-3
d. DOL decision ...................................................................................................... 2-3
CERTIFIED PAYROLL REPORTS ..........................................................................2-4
a. Payroll formats ...................................................................................................2-4
b. Payroll certifications ...........................................................................................2-4
c. "No work" payrolls ..............................................................................................2-4
d. Payroll review and submission ...........................................................................2-5
e. Payroll retention .................................................................................................2-5
f. Payroll inspection ...............................................................................................2-5
DAVIS-BACON DEFINITIONS .................................................�---------- -- - �-5
a. Laborer 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 ....................................................................................................2-7
f. Overtime ............................................................................................................. 2-7
g. Deductions .........................................................................................................2-8
h. Proper designation of trade ................................................................................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. Ove rti me .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . 2-13
h. Computations .....................................................................................................2-13
i. Deductions .........................................................................................................2-13
j. Fringe benefits ....................................................................................................2-14
k. Signature ............................................................................................................2-14
I. On-site interview comparisons ........................................................................... 2-14
m. Correction certified payroll ..................................................................................2-14
2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES .............................................2-14
a. Notification ..........................................................................................................2-14
b. Computing wage restitution ................................................................................2-15
c. Correction certified payrolls ................................................................................2-15
d. Review of correction CPR ..................................................................................2-15
e. Unfound workers ................................................................................................2-15
iv
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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
„-.
ACRONYMS AND SYMBOLS ...........................................................................................A-1
DAVIS-BACON - RELATED WEB SITES* ........................................................................ A-2
HUD-4720, Project Wage Rate Sheet ..............................................................................A-3
WH-347, Payroll Form/Statement of Compliance ..........................................................A-4
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The following paragraphs describe what the labor standards laws and regulations actually say
and what they mean to you on HUD projects:
1-1 DAVIS-BACON AND OTHER LABOR LAWS.
a. ihe Davis-Bacon Act �DBAL The Davis-Bacon Act requires the payment of prevailing
wage rates (which are determined by the U.S. Department of Labor) to all laborers and
mechanics on Federal government and District of Columbia construction projects in
excess of $2,000. Construction includes alteration and/or repair, including painting and
decorating, of public buildings or public works.
\
Most HUD construction work is'not covered by the DBA 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.
_ J
b. The Contract Work Hours and Safety 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, some HUD
projects are not covered by CWHSSA because some HUD programs only provide loan
guarantees or insurance. CWHSSA also does not apply to construction or rehabilitation
contracts that are not subject to Federal prevailing wage rates (e.g., Davis-Bacon wage
rates, or HUD-determined rates for operation of public housing and Indian block grant-
assisted housing). However, even though CWHSSA overtime pay is not required, Fair
Labor Standards Act (FLSA) overtime pay is probably still applicable. (See also Labor
Relations Letter SL-95-01, CWHSSA Coverage threshold for overtime and health and
safety provision, available on-line at the HUD Labor Relations Library at: www.hud.gov/
o�ces/olr/library.cfm)
1-1
c. The Copeland Act (Anti-Kickback Act�, The Copeland Act makes it a Federal crime
for anyone to require any laborer or mechanic (employed on a Federal or Federally-
assisted project) to kickback (i.e., give up or pay back) any part of their wages. The
Copeland Act requires every employer (contractors and subcontractors) to submit
weekly certified payroll reports (CPRs) and regulates permissible payroll deductions.
d. The Fair Labor Standards Act (FLSAL 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.
1-2 DAVIS-BACON REGULATIONS.
The Department of Labor (DOL) has published rules and instructions concerning
Davis-Bacon and other labor laws in the Code of Federal Regulations (CFR). These
regulations can be found in Title 29 CFR Parts 1, 3, 5, 6 and 7. Part 1 explains how
the DOL establishes and publishes DBA wage determinations (aka wage decisions) and
provides instructions on how to use the determinations. Part 3 describes Copeland Act
requirements for payroll deductions and the submission of weekly certified payroll reports.
Part 5 covers the labor standards provisions that are in 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 for practice before the Administrative Review Board. These regulations
are used as the basis for administering and enforcing the laws.
DOL Regulations are available on-line on the World Wide Web:
http://www.dol.gov/dol/allcfr/Title_29. htm
� �
1-3 CONSTRUCTION CONTRACT PROVISIONS
Each contract subject to Davis-Bacon labor standards requirements must contain labor
standards clauses and a Davis-Bacon wage decision. These documents are normally
bound into the contract specifications.
a. The labor standards clauses. The labor standards clauses describe the responsibilities
of the contractor concerning Davis-Bacon wages and obligate the contractor to comply
with the labor requirements. The labor standards clauses also provide for remedies in
the event of violations, including withholding from payments due to the contractor to
ensure the payment of wages or liquidated damages which may be found due. These
contract clauses enable the contract administrator to enforce the Federal labor standards
applicable to the project. HUD has standard forms that contain contract clauses. For
example, the HUD-2554, Supplementary Conditions to the Contract for Construction,
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 HOME 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
1-4 RESPONSIBILITY OF THE PRINCIPAL CONT CTOR
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 the project. Because
of the contractual relationship between a prime contractor and his/her subcontractors,
subcontractors generally should communicate with the contract administrator only through
the prime contractor. (See Contract Administrator, below.)
To make this Guide easier to understand, the term "prime contractor" will mean the
principal contractor; "subcontractor" will mean all subcontractors including lower-tier
subcontractors; and the term "employer" will mean all contractors as a group, including
the prime contractor and any subcontractors and lower-tier subcontractors.
1-3
1-5 RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR
The contract administrator 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 will provide
labor standards advice and support to you and other project principals (e.g., the owner,
sponsor, architect), including providing the proper Davis-Bacon wage decision
(see 2-1, The Wage Decision) and ensuring that the wage decision and contract clauses
are incorporated into the contract for construction. The contract administrator also monitors
labor standards compliance (see 2-6, Compliance Reviews) by conducting interviews
with construction workers at the job site and reviewing payroll reports, and oversees any
enforcement actions that may be required.
The contract administrator could be an employee or agent of HUD, or of a city or county or
public housing agency. For HUD projects administered directly by HUD staff, usually FHA-
insured multifamily projects, the contract administrator will be the HUD Labor Relations
field staff. But many HUD-assisted projects are administered by local contracting agencies
such as Public Housing Agencies (PHAs), Indian tribes and tribally-designated housing
entities (TDHEs), and States, cities and counties under HUD's Community Development
Block Grant (CDBG) and HOME programs. In these cases, the contract administrator
will likely be local agency staff. In either case, the guidance for you remains essentially
the same.
The DOL also has a role in monitoring Davis-Bacon administration and enforcement. In
addition, DOL has independent authority to conduct investigations. A DOL investigator
or other DOL representative may visit Davis-Bacon construction sites to interview
construction workers or review payroll information.
1-4
��i,��i�� 2 ��� 1'� ��MPLY �I`TH Lla��R �TANDA�DS
��1D Pp►YROLL REP��I'ING R�QUIR�I�ENiS
WHERE TO START? Now that you know you're on a Davis-Bacon project and you know
some of the legal and practical implications, what's next?
SECTION I - THE BASICS
2-1 THE WAGE DECISION.
Davis-Bacon labor standards stipulate the wage payment requirements for Carpenters,
Electricians, Plumbers, Roofers, Laborers, and other construction work classifications
that may be needed for the project. The Davis-Bacon wage decision that applies to the
project contains a schedule of work classifications and wage rates that must be followed.
If you don't have it already (and by now you should), you'll want to get a copy of the
applicable Davis-Bacon wage decision.
Remember, the wage decision is contained in the contract specifications along with the
labor standards clauses. See 1-3, Construction Contract Provisions.
a. The work classifications and wage rates. A Davis-Bacon wage decision is simply a
listing of different work classifications and the minimum wage rates that must be paid
to anyone performing work in those classifications. You'll want to make sure that the
work classification(s) you need are contained in the wage decision and make certain
you know exactly what wage rate(s) you will need to pay. Some wage decisions
cover several counties and/or types of construction work (for example, residential
and commercial work) and can be lengthy and difficult to read. Contact the contract
administrator (HUD Labor Relations field staff or local agency 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 (HUD-4720). This Sheet is a one-page transcript that
will show only the classifications and wage rates for a particular project. A blank copy of
a Project Wage Rate Sheet is provided for you in the appendix. Also, a fillable version of
this form is available on-line at HUDCIips (see web address in the Appendix). Contact the
contract administrator monitoring your project for assistance with a Project Wage Rate
Sheet.
__—�
2-1
b. 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 project 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 HUDCIips (see address in the Appendix).
The Employee Rights under the Davis-Bacon Act poster (WH-1321) replaces the Notice
to all Employees. The new poster is available in English and Spanish on-line at HUDCIips
(see address in the Appendix).
i
�-2 ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES.
What if the work classification you need isn't on the wage decision? If the work
classification(s) that you need doesn't appear on the wage decision, you will need to
request an additional classification and wage rate. This process is usually very simple
and you'll want to start the request right away. Basically, you identify the classification
you need and recommend a wage rate for DOL to approve for the project. There are a
few rules about additional classifications; you'll find these rules in the DOL regulations,
Part 5, and in the labor clauses in your contract. The rules are summarized for you here:
a. Additional classification rules. Additional classifications and wage rates can be
approved if:
1. The 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 Electrician 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 for
a trade classification such as Electrician must be at least as much as the lowest
wage rate for other trade classifications already contained in the wage 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.
2-2
b. Making the request. A request for additionai 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 HUD Labor Relations field staff will review the requested classification
and wage rate to determine whether the request meets the DOL rules outlined in paragraph
2-2(a), above. If additional information or clarification is needed, the staff will contact the
prime contractor (or contract administrator for local agency projects) for more information,
etc. If the Labor Relations review finds that the request meets the rules, the staff will give
preliminary approval on the request and refer it to the DOL for final approval. The staff
will send to you a copy of the preliminary approval/referral letter to the DOL.
If the HUD 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 DOL.
d. DOL decision. The DOL will respond to HUD Labor Relations in writing about the
additional classification and wage rate request. HUD Labor Relations will notify you of
the DOL decision in writing. If the DOL approves the request, the prime contractor must
post the approval notice on the job site with the wage decision.
If the DOL does not approve the request, you will be notified about what classification and
wage rate should be used for the work in question. You will also receive instructions about
how to ask for DOL reconsideration if you still want to try to get your recommendation
approved.
It's always a good idea to talkto the contract administrator before submitting an additional
classification and wage rate request. The contract administrator can offer suggestions
and advice that may save you time and increase the likelihood that DOL will approve your
request. Usually, the contract administrator can give you an idea about what the DOL will
finally decide.
2-3
2-3 CERTIFIED PAYROLL REPORTS.
You'll need to submit a weekly certified payroll report (CPR) beginning with the first week
that your company works on the project and for every week afterward until your firm has
completed its work. It's always a good idea to number the payroll reports beginning with
#1 and to clearly mark your last payroll for the project "Final."
a. Payroll formats. The easiest form to use is DOL's WH-347, Payroll. A sample copy of
the WH-347 is included in the back of this Guide. You may access a fillable version of
the WH-347 on-line at HUDCIips (see web address in the Appendix). Also, the contract
administrator can provide a few copies of the WH-347 that you can reproduce.
You are not required to use Payroll form WH-347. You are welcome to use any other type
of payroll, such as computerized formats, as long as it contains all of the information that
is required on the WH-347.
b. Payroll certifications. The weekly payrolls are called certified because each payroll
is signed and contains language certifying that the information is true and correct. The
payroll certification language is on the reverse side of the WH-347. If you are using
another type of payroll format you may attach the certification from the back of the WH-
347, or any other format which contains the same certification language on the WH-347
(reverse).
DOL's website has Payroll Instructions and the Payroll form WH-347 in a"fillable" PDF
format at this address:
www. dol.gov/whd/forms/wh347. pdf
c. "No work" payrolls. "No work" payrolls may be submitted whenever there is a
temporaty break in your work on the project, for example, if your firm is not needed on
the project right now but you will be returning to the job in a couple of weeks. (See tip
box, for "no work" payroll exemption!) However, if you know that your firm will not be
working on the project for an extended period of time, you may wish to send a short
note to the contract administrator to let them know about the break in work and to give
an approximate date when your firm will return to the project. If you number payrolls
consecutively or if you send a note, you do not need to send "no work" payrolls.
;
If you number your payroll reports consecutively, you do not need to submit "no work"
payrolls!
��,. /
2-4
d. Payrollreviewandsubmission.Theprimecontractorshouldrevieweachsubcontractor'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 reports for any project must be
submitted to the contract administrator through the prime contractor.
An alert prime contractor that reviews subcontractor payroll submissions can detect any
misunderstandings early, prevent costly underpayments and protect itself from financial
loss should underpayments occur.
e. Payroll retention. Every contractor (including every subcontractor) must keep a complete
set of their own payrolls and other basic records such as employee addresses and full
SSNs, time cards, tax records, evidence of fringe benefit payments, for a Davis-Bacon
project for at least 3 years after the project is completed. The prime contractor must keep
a complete set of all of the payrolls for every contractor (including subcontractors) for at
least 3 years after completion of the project.
f. Payroll insaection. 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.
2-4 DAVIS-BACON DEFINITIONS.
Before we discuss how to complete the weekly payroll forms, we need to review a couple
of definitions. These definitions can help you understand what 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.
1. Working foremen. Foremen or supervisors that regularly spend more than
20% of their time performing construction work and do not meet the exclusions
in paragraph 2 below are covered "laborers" and "mechanics" for labor standards
purposes for the time spent performing construction work.
2. Exclusions. People whose duties are primarily administrative, executive or
clerical are not laborers or mechanics. Examples include superintendents, office
staff, timekeepers, messengers, etc. (Contact the contract administrator if you
have any questions about whether a particular employee is excluded.)
2-5
b. Employee. Every person who perForms the work of a laborer or mechanic is "employed"
regardless of any contractual relationship which may be alleged to exist between a
contractor or subcontractor and such person. This means that even if there is a contract
between a contractor and a worker, the contractor must make sure that the worker is
paid at least as much as the wage rate on the wage decision for the classification of work
they perform. Note that there are no exceptions to the prevailing wage requirements for
relatives or for self-employed laborers and mechanics.
For more information about working subcontractors, ask the contract administrator or
your HUD Labor Relations Field Staff for a copy of Labor Relations Letter LR-96-01,
Labor standards compliance requirements for self-employed laborers and mechanics.
Labor Relations Letters and other helpful Labor Relations publications are available at
HUD's Labor Relations web site (see the list of web site addresses in the Appendix).
� /
c. Apprentices and trainees. The only workers who can be paid less than the wage rate on
the wage decision fortheirwork 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. j
_ /
1. Probationary apprentice. 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-apprentice. A"pre-apprentice", that is, someone who is not registered in a
program and who hasn't been DOL- or SAC-certified for probationary apprenticeship
is not considered to be an "apprentice" and must be paid the full journeyman's rate
on the wage decision for the classification of work they perform.
3. Ratio of aparentices and trainees to journeymen The maximum number of
apprentices or trainees that you can use on the job site cannot exceed the ratio of
apprentices or trainees to journeymen allowed in the approved program.
�
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 sufficient to satisfy the wage
rate requirement based upon actual hours, including any overtime, worked.
Accurate time records must be maintained for any piece-work employees.
If the weekly piece rate earnings are not sufficient, the employer must
recompute weekly earnings based upon the actual hours worked and
the rate on the wage decision for the work classification(s) involved.
e. Fringe benefits 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 to any laborer or mechanic (basic wage or basic
wage plus fringe benefits)' may be no less than the total wage rate (basic wage or basic
wage plus fringe benefits) on the wage decision 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 benefit 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
decision, or you could pay $15 in base wage with no fringe benefits, or you could pay $12
basic plus $3 fringe benefits. You can also off-set the amount of the base wage if you pay
more in fringe benefits such as by paying or $9 basic plus $6 fringe benefits; as long as
you meet the total amount. The amount of the base wage that you may off-set with fringe
benefits is limited by certain IRS and F�SA requirements.
f. Overtime. Overtime 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 basic pay plus the straight-time rate of any required fringe
benefits.
2-7
g. Deductions. You may make payroll deductions as permitted by DOL 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, to our example above where the wage decision requiring a$15 total
wage obligation ($10 basic wage plus $5 fringe benefits) was met by paying $9 base
wage plus $6 fringe benefits: Note that overtime rates must be based on one and one-half
times the basic rate as stated on the wage decision. In the above example, the employer
must pay for overtime: $15/hr ($9 basic +$6 fringe) plus $5 (one-half of $10, the wage
decision basic rate) for a total of $20 per hour.
�
h. Pro�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 more than
one trade during a work week, you can pay the wage rates specified 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.
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 other adjacent
or virtually adjacent property used by a contractor or subcontractor in the construction of
the project, like a fabrication site that is dedicated exclusively, or nearly so, to the project.
:
SECTION II - REPORTING REQUIREMENTS
2-5 COMPLETING A PAYROLL REPORT.
What information has to be reported on the payroll form? The weekly payroll form doesn't
ask for any information that you don't already need to keep for wage payment and tax
purposes. For example, you need to know each employee's name; his or her work
classification (who is 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.
r
.
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
compliedwiththeprevailingwagerequirements. Thepurposeofthecontractadministrator'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. Project and contractor/subcontractor information. Each payroll must identify the
contractor or subcontractor's name and address, the project name and number, and the
week ending date. Indicate the week dates in the spaces provided. Numbering payrolls
is optional but strongly recommended.
b. Employee 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 necessaty to distinguish between employees,
e.g., if two employees have the same name.
Employers (prime contractors and subcontractors) must maintain the current address
and full SSN for each employee and must provide this information upon request to the
contracting agency or other authorized representative responsible for federal labor
standards compliance monitoring. Prime contractors may require a subcontractor(s) to
provide this information for the prime contractor's records. DOL has modified form WH-
347, Payroll, to accommodate these reporting requirements.
c. Work classification. Each employee must be classified in accordance with the wage
decision based on the type of work they actually perform.
2-9
1. A�,arentices 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 shall 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 otherthan the project forwhich 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 pay. Show the basic hourly rate of pay for each employee for this project. If
the wage decision includes a fringe benefit and you do not participate in approved fringe
benefit programs, add the fringe benefit rate to the basic hourly rate of pay. Also list the
overtime rate if overtime hours were worked.
1. Piece-work. For any piece-work employees, the employer must
compute an effective hourfy rate for each� employee each week based
upon the employee's piece-work earnings for that week. To compute
the effective hourly rate, divide the piece-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.
Remember, the overtime rate is computed at one and one-half times the basic rate of pay
plus any fringe benefits. For example, if the wage decision requires $10/hour basic plus
$5/hour fringe benefits, the overtime rate would be: ($10 x 1'/2) +$5 =$20/hour.
f. Gross waqes earned. Show the gross amount of wages earned for work performed on
this project. Note: For employees with work hours and earnings on other projects, you
may show gross wages for this project over gross earnings all projects (for example,
$425.40/$764.85) 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 should be identified (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. Net 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 benefit rate to the basic hourly rate of pay. If you are
paying a portion of the required fringe benefit to programs and the balance directly to the
employee, explain those differences in box 4(c).
Only one Statement of Compliance is required for each employer's weekly payroll no
matter how many pages are needed to report the employee data.
�
Signature. Make sure the payroll is signed with an original signature in ink. The payroll
must be signed by a principal of the firm (owner or officer such as the president, treasurer
or payroll administrator) or by an authorized agent (a person authorized by a principal
in writing to sign the payroll reports). Signature authorization (for persons other than a
principal) should be submitted with the first payroll signed by such an agent. Signatures
in pencil; signature stamps; xerox, pdf and other facsimiles are not acceptable.
2-11
SECTION III - PAYROLL REVIEWS AND CORRECTIONS
2-6 COMPLIANCE REVIEWS
The contract administrator or other inspector may visit the project site and interview
some of the workers concerning their employment on the project. The DOL may also
independently conduct its own reviews (see 1-5). In addition, the contract 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 disruption
as possible to the on-going work. The interviewer will record the interview information,
usually on a form HUD-11, Record of Employee Interview, and forward the interviews to
the contract administrator.
b. Project payroll 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.
2-7 TYPICAL. PAYROLL ERRORS AND REQUIRED CORRECTIONS.
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. Inadequate payroll information. If an alternate payroll format used by an employer (such
as some computer payrolls) is inadequate, e.g., does not contain all of the necessary
information that would be on the optional form WH-347, the employer will be asked to
resubmit the payrolls on an acceptable form.
b. Missing identification numbers. If the first payroll on which an employee appears does
not contain the employee's individually identifying number, the employer will be asked
to supply the missing information. This information can be reported on the next payroll
submitted by the employer if the employer is still working on the project. Otherwise, the
employer will be asked to submit a correction certified payroll.
2-12
c. Incom Ip ete payrolis. If the information on the payroil is not complete, for example, if
work classifications or rates of pay are missing, the employer will be asked to send a
correction certified payroll.
d. Classifications. If the payrolls show work classifications that do not appear on the wage
decision, the 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 reclassi�ed employees. (see 2-8 for instructions
about wage restitution.)
e. Wage rates. If the wage rates on the payroll are less than the wage rates on the wage
decision for the work classifications reported, the employer will be asked to pay wage
restitution to all affected employees.
f. Aaarentices and trainees. If a copy of the employee's registration or the approved
program ratio and wage schedule are not submitted with the first payroll on which an
apprentice or trainee appears, the 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 ctassification of
work they performed.
g. Overtime. If the employees did not receive at least time and one-half for any overtime
hours worked on the project, the following will occur:
1. If the project is subject to CWHSSA overtime requirements, the employer will be
asked to pay wage restitution for all 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
FLSA overtime violations. Also, the contract administrator may refer the matter to
the DOL for further review.
h. Computations. If the payroll computations (hours worked times rate of pay) or extensions
(deductions, net pay) show frequent errors, the employer will be asked to take greater
care. Wage restitution may be required if underpayments resulted from the errors.
i. Deductions. If there are any "Other" deductions that are not identified, or if employee
authorization isn't provided, or if there is any unusual (very high, or large number)
deduction activity, the employer will be asked to identify the deductions, provide employee
authorization or explain unusual deductions, as necessary.
2-13
HUD does not enforce or attempt to provide advice on employer obligations to make
deductions from employee earnings for taxes or 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.
Frinqe 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 Compliance], 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. Ifthe 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.
On-site interview comparisons. If the comparison of on-site interviews to the payrolls
indicates any discrepancies (for example, the employee does not appear on the payroll
for the date of the interview), the employer will be asked to submit a correction certified
payroll report.
m. Correction certified payroll. 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.
2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES.
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 permissible and authorized deductions. All wages paid to laborers
and mechanics for work performed on the project, including wage restitution, must be
reported on a certified payroll report.
a. Notification to the Employer/Prime contractor. The contract administrator will notify the
employer and/or prime contractor in writing of any underpayments that are found during
payroll or other reviews. The contract administrator will describe the underpayments and
provide instructions forcomputing and documenting the restitution to be paid. The employer/
prime contractor is allowed 30 days to correct the underpayments. Note that the prime
contractor is responsible to the contract administrator for ensuring that restitution is paid. If
the employer is a subcontractor, the subcontractor will usually make the computations and
restitution payments and furnish the required documentation through the prime contractor.
2-14
`
The contract administrator may communicate directly 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 all cases,
the subcontractor must ensure that the prime contractor receives a copy of the required
corrective documentation.
b. Computing wage 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 �ayrolls. The employer will be required to report the restitution
paid on a correction certified payroll. The correction payroll will reflect the period of time
for which restitution is due (for example, Payrolls #1 through #6; or a beginning date and
ending date). The correction payroll will list each employee to whom restitution is due and
their work classification; the total number of work hours involved (daily hours are usually
not applicable for wage restitution); the adjustment wage rate (the difference between
the required wage rate and the wage rate paid); the gross amount of restitution due;
deductions and the net amount actually paid. A properly signed Statement of Compliance
must accompany the correction payroll.
a
HUD no longer requires the signature of the employee on the correction payroll to evidence
employee receipt of restitution payment. In addition, 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.
i
d. Review of correction CPR. The contract administrator will review the correction certified
payroll to ensure that full restitution was paid. The prime contractor 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. Unfound workers. Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be located. After wage
restitution has been paid to all of the workers who could be located, the employer must
submit a list of any workers who could not be found and paid (i.e., unfound workers)
providing their names, Social Security Numbers, last known addresses and the gross
amount due. In such cases, at the end of the project the 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 will continue attempts to locate the unfound workers for 3 years
after the completion of the project. After 3 years, any amount remaining in the account for
unfound workers will be credited and/or forwarded by the contract administrator to HUD.
2-16
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�. • � �� �� N =�' • � � �N � � ' � ��:
• � ! �, �
WHAT HAPPENS WHEN THINGS GO WRONG?
3-1 INTRODUCTION.
Even in the best of circumstances, things can go wrong. In a Davis-Bacon context,
"things going wrong" usually means there's a difference of opinion or a dispute about
whether and to what extent underpayments have occurred. These disputes are usually
between the contract administrator and one or more employers (the prime contractor and/
or a subcontractor). The dispute may involve something simple such as an additional
classification request that is pending before the DOL; or something as significant as
investigative findings following a complaint of underpayment. This chapter discusses
some of what you may expect and what you can do to make your views known and to
lessen any delays in resolving the problem or issue.
3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES.
As mentioned in the Introduction above, a dispute about labor standards and compliance
can arise for a number of reasons. The labor standards clauses in your contract and DOL
regulations provide for administrative review of issues where there is a difference of views
between the contract administrator and any employer. The most common circumstances
include:
a. Additional classifications and wage rates. Additional classification and wage rate
requests are sometimes denied by the DOL. 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 denial in its
response to the request. Any interested person (for example, the contract
administrator, employer, representatives of the employees) may request
reconsideration of the decision on the additional classification request. The
request for reconsideration must be made in writing and must thoroughly
address the denial reasons identified by the DOL. Employer requests for
reconsideration should be made through the contract administrator but may
be made directly to the DOL. (See 2-2(d), and also DOL Regulations 29 CFR
1.8.) All requests initiated by or made through the contract administrator or HUD
must be submitted through the HUD Headquarters Office of 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. Findings of underpayment. 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 findings are in dispute and the reasons. In such cases, HUD is
required to submit a report to DOL for review and further consideration. All requests for
DOL hearing must be submitted through the HUD Headquarters Office of Labor Relations.
1. DOL review. The DOL will review the contract administrator's report and the
arguments against the findings presented in the hearing request. The DOL may
affirm or modify the findings based upon the materials presented. You will be notified
in writing by the DOL of the results of its review. If DOL concludes that violations
have occurred, you will be given an opportunity to correct any underpayments or
to request a hearing before a DOL Administrative Law Judge (ALJ). (See DOL
Regulations 29 CFR 5.11 (b) and 29 CFR Part 6, Rules of Practice forAdministrative
Proceedings.)
2. Administrative Review 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.
3-3 WITHHOLDING.
The contract administrator shall cause withholding from payments due to the prime
contractor to ensure the payment of wages which are believed to be due and unpaid,
for example, if wage underpayments or other violations are not corrected within 30 days
after written notification to the prime contractor. DOL may also direct the withholding
of contract payments for alleged wage underpayments. Withholding is considered to
be serious and is not taken unless warranted. If withholding is deemed necessary, you
will be notified in writing. Only the amounts needed to meet the contractor's (and/or
subcontractors') liability shall be withheld.
3-2
3-4 DEPOSITS AND ESCROWS.
In every case, we attempt to complete compliance 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 are available to pay any wage restitution that is ultimately found due. In these
cases, we allow projects to proceed to final closing and final payments provided the prime
contractor deposits an amount equal to the potential liability for wage restitution and
liquidated damages, if necessary, in a special account. The deposit or escrow account is
controlled by the contract administrator. When a final decision is rendered, the contract
administrator makes disbursements from the account in accordance with the decision.
Deposit/escrow accounts are established for one or more of the following reasons:
1
Remember, the prime contractor is responsible and will be held liable foranywage 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 documentation is provided to
the contract administrator, the gross amounts corresponding to the documented payments
are returned to the depositor.
1. If the employer is unable to make the payments to the workers, e.g., lacks the
funds necessary, the contract administrator may make disbursements directly to
the workers in the net amounts calculated by the employer. The amounts withheld
from the workers for tax deduction will be returned to the employer as payments to
workers are made. The employer shall be responsible for reporting and transmitting
withholdings to the appropriate agencies.
3-3
2. If the employer is not cooperating in the resolution, the contract administrator shall
make disbursements to the workers in accordance with the schedule of wages
due. Amounts for unfound workers will be retained as described above (See 2-8(fl
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.
3-5 ADMINISTRATIVE SANCTIONS.
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 DOL. Debarment
proceedings are described in DOL regulations 29 CFR 5.12.
b. HUD sanctions. HUD sanctions may include Limited Denials of Participation (LDPs),
debarments and suspensions.
Limited Denial of Partici atp ion• 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 concerning LDP's are found at 24 CFR
24.700-24.714.
3-4
2. Debarment and susaensions. 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 certified payrolls or other
prevailing wage certifications) or may initiate suspension where a contractor has
been indicted for making false statements. HUD regulations concerning debarment
and suspension are found at 24 CFR Part 24.
3-6 FALSIFICATION OF CERTIFIED PAYROLL REPORTS.
Contractors and/or subcontractors that are found to have willfully falsified payroll reports
(Statements of Compliance), including correction certified payroll reports, may be subject
to civil or criminal prosecution. Penalties may be imposed of $1,000 and/or one year in
prison for each false statement (see Section 1001 of Title 18 and Section 231 of Title 31
of the United States Code).
Remember, ifyou haveanyquestionsorneed assistanceconcerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
3-5
` w , i; � : �
'CDBG - Community Development Block Grant
CFR - Code of Federal Regulations
I
CPR - Certified Payroll Report
CWHSSA - Contract Work Hours and Safety Standards Act
DBA - Davis-Bacon Act
DBRA - Davis-Bacon and Related Acts
' DO� - Department of Labor
O/T - Overtime
PHA - Public Housing Agency
S/T - Straight-time
` SAC - State Apprenticeship Council/Agency
TDHE - Tribally-Designated Housing Entity
§ '- Section
� - Paragraph
A-1
FHA-
FLSA -
HUD-
IHA -
LCA -
Federal Housing Administration
Fair �abor StandardsAct
Housing and Urban Development (Department ofl
Local Contracting Agency
'� � • m � : `
HUD Office 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.dol.gov/whd/contracts/dbra.htm
DOL Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
Davis-Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www.dol.gov/whd/programs/dbra/forms.htm
*Web addresses active as of January 2012
A-2
U.S. Department of Housing
�r�ject V11a�e �ate �heet and Urban Development
Office of Labor Relations
Project Name: Wage Decision Number/Modification Number:
Project Number: Project County:
Work Basic prin e Total ; ` Laborers
Hourly g ' Hourly ' Fringe $
Classification Benefits
Rate, (BHR) Wage Rate Benefits
Brickiayers $ Group # BHR Total Wage
Carpenters $ $
Cement Masons $ $
Drywall Hangers $ $
Electricians $ $
Iron Workers $ $
Painters $ Operators Fringe Beneflts: $
Plumbers $ Group # BHR Total Wage
Roofers $ $
Sheet Metal Workers $ $
Soft Floor Workers $ $
Tapers $ $
Tile Setters � Truck Drlvers Fringe Beneflts: ` $
Other Classifications ' Group # BHR Total Wage
$
$
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A-5
U,S. Department of Housing and Urban Development
Office of Departmental Operations and Coordination
Washington, DC 20410
Email: www.OfficeofLaborRelations�hud.gov
Labor Relations Desk Guide
LROI.DG
P�MENiOF
��e* O� �� *`� �
9y�� II II�I ���
9 pQ EQVALHOUSINa
AqN DEVE�' OPPORTUNITY
EYHIBIT "H-5"
START OF CONSTRUCTION FOItM
Clty of Fort Worth
Community Development Block Grant (CDBG) Funded
Construction Projects
START C1F CONSTRUCTION
(Date)
Project Name:
Location:
Project Number:
U.S. Deparhnent of Labar Wage Decision:
This is to inform you that
of
(Address)
(Name of Company)
�
(City/Town)
, , has started work on the above referenced project covered by our
(State) (Zip}
contract with you, as of
(Date)
Respectfully yours,
(Name of Company)
:
(Signature)
�
(Title)
EXHIBIT "H-6"
CONSTRUCTION COMPLETE FORM
City of Fort Worth
Community Development Block Grant (CDBG) Funded
Construction Projects
CONSTI2UCTION C�MPLETE
Date:
Project Name:
Project Locatinn:
Project Number:
U.S. Department of Labor Wage Decision:
This to inform you that the:
of
(Address)
(Name of Company)
(CitylTown)
, has terminated work on the above referenced project covered
(State) (Zip)
by our contract with you, as of
Respectfully yours,
I:
(Narne of Company)
(Signature)
(Titte)
EXHIBIT "H-7"
EEO STATEMENT
STATEMENT OF POLICY ON
EQUAL EMPLOYMENT OPPORTUNITY
It will be the policy of this firm to not discrirninate against any applicant for employment, or any
employee, because of race, creed, color, age, sex, or natural origin. This firm will insure that this
policy is continually enforced with regard to employment, promotion, up�rading, demotion, transfer,
recruitment, and recruitrnent advertising, lay off and termination, compensation, training, and
working conditions. We will make it understood by all with whom we deal, and in all our
employrnent opportunity announcements that the foregoing is our policy. All applicants and
employees will be judged solely on the basis of their skill, devotion loyalty, reliability and integrity.
Company Name
Signature
Date
EXHIBIT "H-8"
PAYROLL DEDUCTION AUTHORIZATION FORM
Pavroll Deduction Au#horization
This is the authorization to the
to deduct fram my paycheck $
is for item number:
REPAYMENT OF:
1.
2.
3.
4.
5.
6.
�oan
Retirement
Advance on Wages
Savings
Savings Bonds
Uniforms
*This deduction is to be made:
CHECK APPROPRIATE BOX
Employee's Signature
Printed or Typed Name:
Project Name and Number:
7.
8.
9.
10.
11.
12.
Credit Univn
Profit Sharing
Donations to Agencies
Insurance Premiums
Union Dues
❑ One time only
❑ Weekly
❑ Bi-weekly
❑ For weeks
❑
Date:
.* This
K PAYROLL DEOUCT(ON AUTHORIZATION.00C
EXHIBIT "H-9"
OFFICER APPOINTMENT FORM
U. S. Department of Housing and Urban Development
CERTIFICATE FROM �ONTR.ACTOR APPOINTING OFFICER OR ENiPLOYEE
TO SUPERVISE PAYMENT OF EMPLOYEES
in connection with construetion of the above-mentioned I'roject, and that (I) (we} have appointed
whose si�nature �nvears below to sunervise the payment of (my our) emplovees beginnin�
, 20�; that he/she is in a position to have futl knowledge of the facts
set forth in the payroll documents and in the statement of compliance required by the so-called
Kick-Back Statute which he/she is to execute with (my) (our) full authority and approval until
such time as (I) (we) submit to
a new certificate appointing some other person for the purposes hereinabove stated.
Attest (if required):
(Signature}
(Titte)
�:
(Title)
------------------------------------------------------------------------�--------------------------------------
NOTE: This certificate must be executed by an authorized ot�'tcer of a corporation, by a member
of a partnership, or the sole owner and shall be executed priar to and be submitted with the first
payroll. Shnuld the appointee be changed, a new certificate must accompany the first payroll for
which the new appointee executes a statement of compliance required by the Kick-Back Statute.
DALDAO- [ 340.3/2
(6-79)
(I) (We) hereby certify that (I �m) (we are) (the prime contractor) (a subcantractor) for
EXHIBIT "I"
DEED OF TRUST FORM
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT SEFORE 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:
m
Tarrant County Housing Partnership, Inc.
a Texas non-proiit corporation.
Grantor's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76107
Trustee: Vicki S. Ganske or Leann Guzman
Trustee's Mailing Address:
GO City Attorney's Office
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 Throcicmorton St.
Fort Worth, Tarrant County, TX 76102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq.
(the "HOME Program") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Obligation
Note
Sorrower: Tarrant County Housing Partnership, Inc., a Texas non-proiit
corporation
Date: , 20
Original principal amount: $117,043.00
DEED OF TRUST — TCHP Page 1
CSC No. C-24714 Rev. 5-17-13
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Maturity Date: , 20
Property (including any improvements):
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive rights, whether of record or not; all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of the Obligation, Grantor conveys the Propei�ty
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. keep 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 clause;
DEED OF TRUST — TCHP Page 2
CSC No. C-24714 Rev. 5-17-13
c. provides all-risk coverage;
d. protects Lender with a standard mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender may reasonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. 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. C-24714 Rev. 5-17-13
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may—
a. deciare 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 Bor�ower 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-
1. 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 ali or part of the Property "AS IS" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to
Conveyance and Warranty and without representation or warranty, express or implied, by
Trustee;
3. from the proceeds of the sale, pay, in this order—
a. expenses of foreclosure, including a reasonable commission to Trustee;
DEED OF TRUST — TCHP Page 4
CSC No. G24714 Rev. 5-17-13
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
c. any amounts required by law to be paid before payment to Grantor; and
d. to Grantor, any balance; and
4. be 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 taken 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, subj ect 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 wili 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 poi-tion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. Grantor assigns to Lender all amounts payable to or received by Grantor from
condemnation of all or part of the Property, from private sale in lieu of condemnation, and from
damages caused by public worlcs or construction on or near the Property. After deducting any
expenses incurred, including attorney's fees and court and other costs, Lender will either release
any remaining amounts to Grantor or apply such amounts to reduce the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and receipts from the Property. Grantor warrants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of
Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and
DEED OF TRUST — TCHP Page 5
CSC No. C-24714 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 Obiigation 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 banicruptcy 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.
1l. 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 Gr•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-24714 Rev. 5-17-13
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
unenforceable, the validity or enforceability of any other provision will not be affected.
17. The term Lender includes any mortgage servicer for Lender.
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property; the debt is secured both by the Deed of Trust and by a vendor's lien on
the Property, which is expressly retained in a deed to Grantor of even date. This
Deed of Trust does not waive the vendor's lien, and the two liens and the rights
created by this Deed of Trust are cumulative. Lender may elect to enforce either
of the liens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the transferee will acquire title to all
insurance policies on the Property including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and involce any remedies provided in this Deed of Trust for default if Grantor transfers any of the
Property to a person who is not a permitted transferee without Lender's prior written consent.
"Permitted transferee" means any other person controlling, controlled by, or under common
control with Grantor. Lendei• 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 Property is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
This Deed of Trust has also been executed and delivered pursuant to the terms of the
DEED OF TRUST — TCHP Page 7
CSC No. G24714 Rev. 5-17-13
Contract. Grantor agrees to perform each and every obiigation set forth therein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contract or the HOME Program or HOME Regulations
shail 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 SY
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 acknowledged before me on , 20_ by Donna
VanNess, the President of Tarrant County Housing Partnership, Inc., a Texas non-profit
corporation, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Fort Worth
C/O Housing and Economic Development Department
1000 Throcicmorton St.
Fort Worth, Tarrant County, TX 76102
DEED OF TRUST — TCHP Page 8
CSC No. G24714 Rev. 5-17-13
I� i �
1333 E. Jefferson Avenue; Lot 18, Blocic 53, Highland Parlc Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat
recorded in Volume , Page _, Plat Records, Tarrant County, Texas.
DEED OF TRUST — TCHP Page 9
CSC No. G24714 Rev. 5-17-13
PROMISSORY NOTE
Date:
►31�
Borrower: Tarrant County Housing Partnership, Inc.
a Texas non-profit corporation
Borrower's Mailing Address:
3204 Collinsworth Street, For�t 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 HiJNDRED SEVENTEEN THOUSAND AND FORTY
THREE/100 DOLLARS ($117,043.00)
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. 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 fi�om Borrower to Vicici S. Ganslce
or Leann Guzman, Trustee, both of which cover the following real property:
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Other Security for Payment:
Other real property acquired by Borrower pursuant to the terms of the Contract to
construct a total of one (1) residential home for sale to an eligible low-income
homebuyer.
Borrower promises to pay to the order of Lender the Principal Amount. This Note is
payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts
are due by the Maturity Date. After maturity, Borrower promises to pay any unpaid principal
balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts.
If Borrower defaults in the payment of this Note or in the performance of its obligations
under the Contract or the HOME Program or the HOME Regulations or any other obligation in
any instrument securing or collateral to this Note, Lender may declare the unpaid principal
balance, earned interest, and any other amounts owed on the Note immediately due. Borrower
and each surety, endorser, and guarantor waive all demand for payment, presentation for
payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest,
and notice of protest, to the extent permitted by law.
Borrower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. These expenses will
bear interest from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts.
Borrower will pay Lender these expenses and interest on demand at the Place for Payment.
These expenses and interest will become part of the debt evidenced by the Note and will be
secured by any security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the residential housing located on the Property and any other real property
acquired by Borrower pursuant to the terms of the Contract and constructed with a portion of the
HOME funds qualifies and remains affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Contract.
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of nonusurious interest that may be contracted for, taken, reserved, charged, or received under
law. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principai Amount has been paid, refunded. On any acceleration or 2•equired or permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if the excess interest has already been paid, credited on the Principal Amount or,
PROMISSORY NOTE — TCHP Page 2
CSC No. rev. OS-17-13
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this Note and all other instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note. When the
context requires, singular nouns and pronouns include the plural.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
PROMISSORY NOTE — TCHP Page 3
CSC No. rev. OS-17-13
1333 E. Jefferson Avenue; Lot 18, Blocic 53, Highland Parlc Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat
recorded in Volume , Page _, Plat Records, Tarrant County, Texas.
PROMISSORY NOTE — TCHP Page 4
CSC No. rev. OS-17-13
EXHIBIT "J"
ENVIRONMENTAL MITIGATION ACTION
NOT APPLICABLE
EXHIBIT "K"
SECTION 3 REPORTING REQUIREMENTS
EXHIBIT "K"
�ection 3 Summary lteport
Economic Opportunities for
Low — and Very Low-Income Persons
Section back of page (or Pub�ic Repoding Burden statement
U.S. Department of Housing
and Urban Development
Office of Fair Housing
And Equal Opportunity
OMB Approval No: 2529-0043
(exp. 11/30/2010)
NUD Field Office:
1. Redpienl Name & Address: (street, city, state, zip) 2. Federal IdentiBcation: (granl no.) 3. Tota� Amount of Award:
4. Contact Person 5. Phone: (InGude area code)
6. Lenglh of Grant: 7. Reporting Period:
8. Date Report Submilted: 9. Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part I: Em lo ment and Trainin *` Columns B, C and F are mandato fields. Include New Hires in E&F
A B C D E F
Number of Number of New % of Aggregate Number % of Totai Staff Hours Number of Section 3
Job Category New Hires Hires lhat are of Staff Hours of New Hires for Sectlon 3 Employees Trainees
Sec. 3 Residents thal are Sec. 3 Residenls and Tralnees
Professionals
Technicians
OfficelClerical
Construction by Trade (List)
Trade
Trade
Trade
Trade
Trade
Other List
Total
' Program Codes
1 = FlexiWe Subsidy
2 = Section 202/811
3 = Publi�llndian Housing
A = Development,
e = Operadon
C = Modemization
Page t of 2
4 = Home�ess Assislance
5=HOME
6 = HOME Slate Administered
7 = CDBG Entitlement
8 = CDBG State Administered
9 = Other CD Programs
10 = Olher Housing Programs
tartn HUD 60002 (6/2001)
Ref 24 CPR 135
Part II: Contracts Awarded
1. Construction Contracts:
A. Totai doliar amount of all contracts awarded on the project
B. Totai dollar amount of contracts awarded to Section 3 businesses
C. Percentage of the total dollar amount that was awarded to SecBon 3 businesses
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount all non-construction contracts awarded on the projectlactivity
8. Total dollar amount of non-construction contracts awarded to Section 3 businesses
C. Percentage of the total doilar amount that was awarded to Section 3 businesses
D. Toial number of Section 3 businesses receiving non-construction contracts
Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and communiry development programs, to the greatest extent feasible, toward low-and very low-income persons, particularly those who
are recipients of government assistance for housing. (Check all that appiy.)
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 ihe 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 the Section 3 covered project is located.
Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the coliection of information.
This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, mandates that the Department ensures ihat
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 information will be used by the Department to monitor program recipients' compliance with Section 3, to
assess the results of the DepartmenPs efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipients as self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information wili be coliected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicabfe. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying
information is not included.
Page 2 of 2 (omt HUD 60002 (11/2010)
Ref 24 CFR 135
Form HUD-60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low•Income Persons.
Instructiona: This form is to be used to report annuai
accomplishmenls 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 pub/lc and Ind/an housing
programs that receive: (1) development assistance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Section 9 of the U.S. Housing Act of 1937; or (3)
modernization grents pursuant to Section 14 of the U.S. Housing Act
of 1937 and to reciplents of hous(ng and community development
assistance In exceas of 5200,000 expended for: (1) housing
rehabilitation (including reduclion and abatement of lead-based paint
hazards); (2) housing construcUon; or (3) other public construction
projects; and to contracts and subcontracts in excess of $100,000
awarded in connecqon with the Section-3-covered activity.
Form HUD-60002 has three parts, which are to be completed for
all programs covered by Section 3. Part I relates to employment
and tratning. The recipient has the option to determine numerical
employmenUtraining goals either on the basis of the number of hours
worked by new hires (columns 8, D, E and F). PaR II of the form
reiates to contracting, and Part III summarizes recipients' eHoris to
compiy with Section 3.
Recipients or contractors subject to Section 3 requirements must
maintain appropriate documentation to establish that NUD flnancial
assistance for housing and community development programs were
directed toward low- and very Iow-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.
Where the program providing assistance requires an annual
performance report, this Section 3 report is to be submitted at the
same time the program performance report is submitted. Where an
annual performance report is not required, this Section 3 report is to be
submitted by January 10 and, if the project ends before December 31,
within 10 days of project completion. Only Prlme Recfpients are
requJred to report to HUD. The report must include
accomplishments o/ all reciplents and fhe/r Sectlon 3 covered
contractors and subcontracfors.
HUD Field Office: Enter the Field Office name .
1. Recipient: Enter the name and address of the recipient
submitting this report.
2. Federal Identification: Enter the number that appears on the
award form (with dashes). The award may be a grant,
cooperative agreement or contract.
3. Doliar Amount of Award: Enter the doilar amount, rounded to the
nearest dollar, received by ihe recipient.
4& 5. Contact Person/Phone: Enter the name and telephone number
of the person with knowledge of the award and the recipienPs
implementatio� of Section 3.
6. Reporting Period: Indicate the time period (months and year)
this report covers.
7. Date RepoR Submitted: Enter the appropriate date.
8. Program Code: Enter the appropriate program code as listed at
the bottom of the page.
9. Program Name: Enter the name of HUD Program corresponding
with the "Program Code° in number 8.
Part I: Employment and Training Oppo►tunitiea
Column A: Contains various job categories. Professionals are
detined as people who have special knowiedge of an occupation (i.e.
supervisors, architects, surveyors, planners, and computer
programmers). For construction positions, list each trade and provide
data in coiumns 8 through F for each irade where persons were
employed. The category of "OtheT includes occupations such as
service workers.
Column B: (Mandatory Field) Enter the number of new hires for
each category of woricers identified in Column A in connection wilh
this award. New hire re(ers to a person who is not on the contractor's
or recipienYs payroll for employment at the time of selection for the
Section 3 covered award or at the time of receipt of Section 3 covered
assistance.
Column C: (Mandatory Pieid) Enter the number of Seciion 3 new
hires for each category of workers identi/ied in Column A in
connection with this award. Section 3 new hire refers to a Section 3
resident who is not on the contractor's or recipienPs 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 lhe percentage of all tha staff hours of new hires
(Section 3 residents) in connection wiih this award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 employees and trainees (including new hires) connected
with this award. Inciude staff hours for part-time and full-time
positions.
Column F: (Mandatory Pield) Enter ihe number of Section 3
residents that were trained in connection wiih this award.
Part II: Contract OppoKunities
Biock 1: Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
projecflprogram.
Item B: Enter the total dollar amount of contracts connected with this
projecUprogram that were awarded to Section 3 businesses.
Item C: Enter the percentage of the total doliar amount of contracts
connected with this projecf/program awarded to Section 3 businesses.
item D: Enter ihe number of Section 3 businesses receiving awarcis.
Black 2: Non-Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on ihe
projecUprogram.
Item B: Enter the total dollar amount of contracts connected with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total doilar amount of contracts
connected with this projecUprogram awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receivi�g awards.
Part III: Summary of Efforts — Self -explanatory
Submit one (1) copy of ihis repoR to ihe HUD Headquarters Office of
Fair Housing and Equal Opportu�ity, at the same time the
performance report is submitted to the program office. The Section 3
report is submitted by January 10. Include only contracts executed
during the period specified in item 8. PHAsIIHAs are to report all
c o n tra cts/s u b co n t racts.
' The terms "low-income persons" and very low-income persons" have
the same meanings given the terms in section 3(b) (2) of the United
States Housing Act of 1937. Low•income persons mean families
(including single persons) whose incomes do not exceed 80 percent of
the median income for the area, as determined by the Secretary, with
adjustments for smaller and larger families, except that
The Secretary may estabiish income ceilings higher or lower ihan 80 percent
of the media� for the area on the basis of the Secretary's findings such that
variations are necessary because of prevailing levals of construction costs
or unusually high- or low-income families. Very low•income persons mean
low-income families (including single persons) whose incomes do not
exceed 50 percent of the median family income area, as determined by the
Secretary with adjustments or smaller and larger families, except that the
Secretary may establish income ceilings higher or lower than 50 percent of
the median for ihe area on the basis of the Secretary's findings that such
variations are necessary because of unusuaily high or low family incomes.
Page i form HUD 60002 (11/2010)
Ref 24 CFR 135
M&C - Council Agenda
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL. ACTIQN: Appraved on 3l27/2012
DATE: Tuesday, March 27, 2012
LOG NAME: 17TCHP HILLSIDE\MORNINGSIDE 10
SUBJECT:
REFERENCE NO.: C-25531
Authorize Expenditure in the Amount of $1,115,000.00 of HOME Investment Partnerships Program
Grant Funds to Tarrant County Housing Partnership, Inc., for the Development of Ten Single Family
Houses in the Hillside-Morningside Neighborhood, Authorize Execution of Conditional Commitments
and Contracts (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize substitution of funding years in order to meet commitment, disbursement and expenditure
deadlines for grant funds from the United States Department of Housing and Urban Development;
2. Authorize expenditure of $1,115,000.00 in HOME Investment Partnerships Program Grant funds as
allocated in the 2011-2012 Action Plan to Tarrant County Housing Partnership, Inc., a certified
Community Housing Development Organization, for the development of up to ten single family houses
in the Hillside-Morningside neighborhood;
3. Authorize execution of conditional commitments with Tarrant County Housing Partnership, Inc., that
conditions funding, among other things, on satisfactory completion of HOME Investment Partnerships
Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the project
for a three year term beginning on the date of execution of the contract;
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M&C - Council Agenda
5. Authorize extension or renewal of the conditional commitment(s) or the contract(s) if Tarrant County
Housing Partnership, Inc., requests an extension and such extension is necessary for completion of
the project; and
6. Authorize amendment of the conditional commitment(s) or the contract(s) if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with
City policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
On May 14, 2011, the City issued a Request for Proposals (RFP) for certified Community Housing
Development Organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment
Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing Partnership,
Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds to acquire 17
sites on which it proposed to construct single family houses. The request also included funds for
CHDO operating expenses.
Staff reviewed all RFP submissions and recommended the award to TCHP of $1,115,000.00 in HOME
funds to the Community Development Council (CDC) at its meeting held on May 25, 2011. The CDC
agreed with Staff s funding recommendation for the Project. Up to $100,000.00 of the awarded funds
will be used for operating expenses and $1,008,943.10 for construction of 10 houses and other
development expenses including the developer fee, which is based on the cost of construction.
TCHP plans to develop up to 10 single family houses to be located in the Hillside-Morningside
neighborhood. There are three floor plan options available varying in square footage from
approximately 1300 to 1600 square feet with three bedrooms, two baths and a rear detached garage.
The houses will be sold to an individual or family that earns 80 percent or less of Area Median Income
as determined by the United States Department of Housing and Urban Development (HUD). Buyers
must meet all HOME Program requirements, including applying for and receiving at least $1,000.00 in
down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and
occupying the house as their primary residence for five years.
City Staff recommends the following Contract terms:
i. Construction must begin within six months of date of contract execution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a recorded
Deed of Trust;
iii. Houses must be sold to a HOME eligible buyer; and
iv. TCHP will be allowed a 10 percent developer's fee based on the cost to construct the houses.
The exr�enditure of HOME funds is conditioned u�on the following:
i. Satisfactory completion of the environmental review per 24 CFR Part 58; and
ii. Authorization to use grant funds from HUD.
The Action Plan's funding years for federal funds selected may vary and be substituted based on the
principle of First In, First Out (FIFO) in order to expend oldest grant funds first. The HOME funds may
be used for any eligible costs related to the development.
Staff recommends the expenditure up to $1,115,000.00 in HOME funds for the Project to benefit low
and very low income citizens by providing affordable housing. A public comment period on the
expenditure of these HOME funds was held from June 28, 2011 to July 27, 2011. Any comments are
maintained by the Housing and Economic Development Department in accordance with federal
regulations.
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M&C - Council Agenda
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
FUND CENTERS;
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 017206531090 $100.000.00 GR76 539120 017206531030 $100.000.00
GR76 539120 017206531100 $1.008.943.10 GR76 539120 017206531040 �1.008.943.10
GR76 539120 005206123100 $6.056.90 GR76 539120 005206123970 �6.056.90
: ' •►
•u -. . 1���-.- • � - .
• . . . - . . :L��I
Additional Information Contact:
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Fabiola Suarez (6811)
ATTACHMENTS
1. 17TCHP.MAP.pdf (Public)
2. Additional Available Funds.�,r1f (CFw Interna�)
3. Available Funds.PDF (CFW Internal)
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