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HomeMy WebLinkAboutContract 44564 CITY CONTRACT NO, COMMUNITY HOUSING DEVELOPMENT CONTRACT This contract ("Contract") is made and entered into b and between the Cit« y y o f Fort Worth (hereafter City ) and Tarrant County Housing Partnership, Inc. (hereafter "D "p� "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 ng 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. g p of partnerships among City, local governments, local lenders, private industry,, and neighborhood- based hb . p ry, g orhood- based non-profit housing organizations; WHEREAS, the primary purpose of the HOME program pursuant to the HOME I nvestment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing Act of 1990, as amended 42 U.S.C. s 2 12701 et seq. and the HOME Investment Partnerships Program Final Rule as amended p 4 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 ' g munity Housing Development Organization(CHDO); WHEREAS, Developer, a Texas non-profit corporation managed b a volunteer Boar Di g y d of Directors and qualified as a CHDO according to HOME Regulations, is working o increase the e number of quality, accessible, and affordable housing nits available to low and nd moderate income persons; WHEREAS, Developer requested HOME CHDO funds for an eligible ro'ect for g p 1 construction of single family houses; WHEREAS, under this Contract, the Developer agrees to construct one single family amlly house located at 1246 E. Jefferson Fort Worth TX 76104 in the City of Fort. y Worth and in accordance with the HOME Regulations and Exhibit "A-1"- Final Elevations and Proposed Plans and Specifications for an amount up to $117,000.00 in HOME funds; WHEREAS, the Developer shall sell the single family house to a HOME Eligible Buyer who will use the house as his or her Principal Residence during the Affordability Period the "Required Improvements" or project), as further described in Exhibit "A" — Project Summary and Scope of Work; (71D0[ OntI act with R 71 OFFICIAL. RECORD .fc r 1Z�6 �,. Je_ffers�rr Page I c?f 33 RECEIVE D J U fFMIECRETARY FT. WO RTN TX WHEREAS, City has determined that the development of ualit accessible and affordable • q Y' ' housing i s needed for moderate, low, and very low-income citizens of Fort North' 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 followin g terms shall have the definitions ascribed to them as follows: Affordable House means a house for which the homebu er's monthly a of principal, Y Y ment p Y p ncipal, interest, property taxes, and insurance does not exceed 30% of the homebu er's monthly gross income nor is � � Y .y g lower than 15/v of the homebuyer s monthly gross income, for an individual or family with an income at or J below 80% of Area Median Income, adjusted for family size.e. In the case of new-house construction, the percentage of the homebu er's monthly gross income u Y y g a shall not exceed 32/v of the homebuyer�s monthly gross income. Affordability Period means the period of time that a house purchased or constructed . p with HOME Funds must remain affordable and subject to recapture provisions for the affordability . p p ability periods described in 24 CFR Part 92.254 of the HOME Regulations. The Affordability y P eriod begins on the date the Project status is changed to "complete" in HUD's Integrated Disbursement . p g Information System ("IDIS"). Required Improvements must remain affordable for the following 1 owing 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 . Y lington metropolitan statistical area as established annually by HUD. Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity sity Ordinance, Ordinance No. 20020-12-2011. City Final Inspection means a HUD Compliance Inspection Report ("Report") completed. p by the City. The Report will not be performed until after the City's Permits Plus system s Y y taxes that CH DO C"ontruct with TC'11P for 1246 E. Jepson Page 2 of 33 the Required Improvements have passed a final inspection by the Planning and Development D epartment. City HAP Eligibility Requirements means the eligibility of a homebu er for closing g co st and/or down payment assistance under City HAP guidelines as adopted b City Council. p Y Y 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 seekin g to derive profit or gain from the organization. A CHDO may be sponsored or created b . p Y a for-profit entity, but: (1) The for-profit entity may not be an entity whose rimar purpose is the p Y p� 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 b the pp Y for-profit entity may not appoint the remaining two-thirds of the board members; and (111) 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)—I); (S) Is not a public body (including the City) or an affiliate of a ublic bod p Y,• (6) Has among its purposes the provision of decent housing that is affordable to low- income 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 b . :Y (1) Maintaining at least one-third of its governing board's membershi p 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 g 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 g 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 housin g to be assisted with HOME funds is to be located; and (10) Has at least one full-time staff person (71DO Contract with TC.Y1P for 1246 E. Je erson Page 3 of 33 Complete Documentation means (i) Exhibit "E-1" — Invoice signed by an authorized signatory of CHDO, stating the amount of funds requested for reimbursement; and 11 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, aloe with an explanation of h . g p ow 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 actual/ aid Y 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, . Y p ante, permits, detailed subcontractor reports, etc. The final reimbursement shall not be disbursed until all liens are released to City's satisfaction as evidenced b a title report or affidavit • �� Y p 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 p p Inspection Report, and any other applicable final inspection approval from the City.. Completion Deadline means K t DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26. Deed of Trust means the deed of trust signed by Developer ursuant to Section 4.2.2. See form rm in Exhibit "I"-Deed of Trust Form, Director means the Director of the City's Housing and Economic Development Department. p p Effective Date means the date this Contract is executed by the City's Assistant City Manager. Y Y g 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 H g y AP assistance. HOME Eligible Buyer means: (1) a homebuyer whose annual income ad'usted for family i .] y s ze 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 AP Eligibility Y g ty Requirements and receives a minimum of $1,000.00 of down a ment and/or closing p Y g cost assistance. HOME Funds means City's HOME funds supplied by City to the Developer under the terms p of this Contract. [ 11D0 Comma with 71C7ff'for 1246„E. Jefferson Page 4 of 33 Principal Residence means the improved property that will be occupied by the HOME Eligible e 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 Buyer Eligible Bu g Y and the City and the HAP loan documents to be executed by the HOME Buyer. Eligible Bu g Y 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". � g Y Sales Proceeds means the sales price of a property, minus construction loan repayment a re (other py than HOME Program funds), Developer Fee and any closing costs, or as otherwise defined i . n 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 p p g 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 • g g explanation as to why additional time is needed, and a ro ro osed project timeline. It i p p p J s specifically understood that it is within City's sole discretion to a Developer's request for an additional rove or deny Develo onal term. Any such extension must be in writing as an amendment to this Contract. 4. DEVELOPER OBLIGATIONS. 4.1 CHDO,Certificates 4.1.1 Recluirements Met. By the execution of this Contract, Developer certifies that it meets all requirements set forth in 24 CFR 92.2 for bein g a CHDO. 4.1.2 Status Reports. Developer has a continuing, ongoing City g dut Y to p rovid y with any documentation or information in regard to its status as a CHDO. Developer shall hall provide City with any information and documentation regarding n change in its status as CH g Y g a DO or as a 501(c)(3) tax exempt entity within ten business day of said change. Developer • Y g p shall provide to City an annual board roster and certification of continued status as a CHDO O by January 30 h 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 (71DO L'ontruct with TC11P for 1246E' Jefferson Page S of 33 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 "All -- Project Summary and Scope of Work upon receiving written notice to proceed from City. 4.2.2. Lien on Pro ert To secure City's HOME Funds in the Required Improvements, Developer shall execute and provide to the City a romisso note and the p ry recorded Deed of Trust in favor of City as of the later of(i) the Effective Date or (ii) Develo er . p 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 Buyers). 4.2.4. I!roject Schedule. Developer will construct the Required Improvements b the Co p y 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 pp an changes es g to the Project Schedule after Developer submits a written request for the modified Project Schedule. If approved by the Director, the Parties shall execute a letter agreement memorializing g the change to the Contract. 4.2.5 Interim Financing,. Developer shall not obtain any third art financing p y g for the fulfillment of its obligations in this Contract or place an liens on the Property without y p y 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. Bud izet. HOME Funds will be spent in accordance with Exhibit "C" - Budget. Developer may increase or decrease line-item amounts in the Budget with Director's prior written approval so long as the expenses are in compliance with 4.3.2 comply with Exhibit"A" -- Project Summary and Scope of Work, and the total amount of HOME Funds is not increased. 4.3.2. Expenditures in Compliance with HOME Re ulations. Developer shall be reimbursed for the construction of the Required Improvements with HOME Funds onl y if Developer provides Complete Documentation showing that the costs are eligible expenditures g p under HOME Regulations and in compliance with the Budget and Project Schedule. Further J , Developer must comply with project requirements in 24 CFR Part 92 Subpart F -- Project P C11DO[ Ontruct with R'f if for 1246 ,V Jefferson i Requirements, attached hereto as Exhibit "O"—Subpart F Project Requirements. p � q ts. 4.3.3. Reimbursement Requests. Funds will be disbursed as detailed in Exhibit "B' - Project Schedule. In order to receive reimbursement for eligible• g expenses, Developer must submit Complete Documentation to City within the Contract term. Addition ' Additionally, PDF s of site plans, drawings or designs must be included with the first request for reimbursement.ursement. City shall not hold retainage. Instead, it shall make the final construction a p yment due Developer contingent upon successful completion of the following: Com of g Completion p the Required Improvements by Developer, (2) receipt of a Housing and Economic Development Final Inspection approval for the Required Improvements; (3)(3) approval of Complete Documentation- and (4) Developer is not in breach of this Contract or any other agreement D eveloper has with th the City. Developer Fee will be paid at closing f the sale of the house ' Buyer. g to a HOME Eligible 4.3.4. Nithholding Payment. IF COMPLETE DOCUMENTATION IS NOT RECEIVED, CITY SHALL WITHHOLD PAYMENTS REQUESTED� UNDER THIS CONTRACT. Further, if Developer is in default of an other HOME y contract with the City, City may choose, in its sole discretion, to withhold payments requested under this s Con tract or any other contract with Developer. 4.4 Construction and Pro a Standards 4.4.1 Construction to Conform to All Applicable Laws Building Codes and ordinances. All plans, specifications and construction on the Required Improvements conform to all applicable Federal, state and local laws, ordinances rules a ' and regulations, including HOME Regulations, (ii} meet all City building codes' (iii) be certi. g , fled 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 c ' urrent edition of the Model Energy Code, published by the Council of American Building Officials; . g and (v) pass the Final Inspection by the City. 4.4.2 Construction Inspections. The construction of the Required Improvements q p meats described in Section 4.2 must pass RED Department Minimum Acceptable p e Standard Inspection report, a HUD Compliance Inspection Report along with any other a pp licable final inspection approval from the City and any other applicable HUD-required inspections q during the construction period and at the completion of the construction of the Development. 4.4.3 Proverty Standards and Lead Paint Requirements. Developer shall� p .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 Standard ' p y sand 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. (711)0 Contract with ZZ-71P for 1246 E. Jefferson Page 7 of 33 4.4.4. Submission and Approval by CitV of Plans and Specifications Not Release of Responsibilitv or Liabilit Developer shall submit plans and specifications to the City. Approval of any plans and specifications relating to the Required Improvements ements by City shall not constitute or be deemed (i) to be a release of the responsibility or liability . p y 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, not limited t g� o, 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, wor • drawings y , g king wings and specifications or other documents by Developer or an of its contractors and th • Y their respective officers, agents, employees and subcontractors. 4,5 Subcontractors. 4.5.1 Re ortin . Developer shall submit proof of the following information in writing regarding all subcontractors utilized in the construction of the Improvements: Required Im • q 4.5.1.1 Licensing-- of Contractors and Subcontractors. Developer shall ensure that all contractors a p and subcontractors utilized in the construction of the Required Improvements areappropriately lic q ensed 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 ' ers Develo general contractor ar Developer's e 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.gov, 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 p p general contractor shall immediately cause such subcontractor to stop work on the Required ed Improvements and Developer shall not be reimbursed for any work performed b such subcontractor. ' . Y . However, this Section shall not be construed to be an assumption of any responsibility or li ability by Cl ty to determine the legitimacy, quality, ability, or good standing of any subcontractor. r. 4.6 Marketin 4.6.1. Affirmative MarketiII& Developer must adopt affirmative marketing ng procedures and requirements for the Required Improvements as required b 24 q y CFR 92.351 if the project involves the construction of 5 or more houses. The procedures . p es and requirements must include methods for informing the public, owners and potential homebu r 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, ' . p y, familial status, sexual orientation, gender identity, gender expression or trans ender iv g are given an equal opportunity to participate in the project. C"11DO Contract with T'C.71P for 1246 E. Jefferson Page 8 of 33 4.6.2. City A roval. All Developer marketing rocedures related to the e Required Improvements, including but not limited to the affirmative marketing ng described in Section 4.6.1 are subject to approval by City. Developer shall submit all marketing p a keting plans for City approval no later than 7 calendar days after the Effective Date. 4.6.3 Effective MarketiLn& Developer will be solely responsible for the effective Y p e marketing responsibilities necessary to achieve requirements described in q Section 4.9.5. Documentation supporting these efforts shall be submitted to the City Y on p request and shall include, but not be limited to, brochures, sign-in sheets for en o houses i p listings, and advertisements. 4.7 Developer Fee. Developer shall receive a fee of 10% of the total ro'ec p � t related development costs as determined by Exhibit "C"- Budget ("Developer Fee"g ). The Developer Fee shall be paid at the closing of the sale of the Required Improvements to a H ' q p HOME Eligible Buyer and receipt of documentation of all required inspections. p ons. 4.8 Sales Proceeds. All Sales Proceeds must be returned to the City. Y 4.9. Sale of Recluired Improvements to HOME Eligible Bu er 4.9.1 Sale Price of Required Improvements. The sales rice of the Required rov o p q ed Improvements ements shall not exceed 95/o of the median sales price of the same type of single-family Yp g Y housing located within City as determined by HUD. 4.9.2 HOME Elilzible Bu er. All homebu ers who purchase the Y p Required Improvements must also be a HOME Eligible Buyer who receives closing cost and/or down payment assistance from the City's HAP, as described in Section 5. Developer must verify eri fy that the homebuyer is a HOME Eligible Buyer, and must supply City with all in . , , pp y y formation necessary to prove eligibility of a prospective buyer prior to closing. An attempt to sell the g Y p 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 g and counseling program prior to the closing of the purchase of the Required Improvements. This requirement p q ent 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. p y e of Developer to provide such certification shall be an event of default. 4.9.3 Contract. Developer shall provide City with a co of a sales contract for or approval prior to execution for each HOME Eligible Buyer. The sales contract Y must contain provisions regarding the following, and will incorporate definitions from this contract as relevant: 1. "The home you are purchasing was constructed with federal funds that require q re the home remain affordable for up to 5 years ("Affordabilit y o " . This Period"). means that if you sell or leave the home before: the Affordability Period is C_71DO Contract with 7'C.Rf for 1246 E. Jefferson Page 9 of 33 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. Develo er 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 homebu er subsidies, (2) development subsidies (3) Developer Fee and (4) amount of Sales Proceed s to be returned to City from settlement funds. 4.9.5. Timing of Sale of Required Improvements. The Required Improvement rovement must be sold to an HOME Eligible Buyer within 4 months from the date of Completion. If the Required p q red 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 p be an event of default as described under Section 8.1.4. 4.10 Monitorine of Develo er 4.10.1 Developer understands and agrees that it will be subject to monitoring b � g Y City for compliance with the HOME Regulations for the duration of the Affordabilit y Period and until the project is closed in HUD's IRIS system. Developer will provide access to r • . p p project ect 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 ears after closeout of this Contract Y act 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 an y 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 . p � g th 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 Partici ation. To ensure that the affordability requirements are met City requires res th at the HOME Eligible Buyer, at least 60 days prior to closin g, apply for a minimum of $1,000.00 of closing cost and/or down payment assistance from the City's HAP. y Homebuyer eligibility shall be determined by City in City's sole discretion using City 14AP Eligibility bility C_'11DO Contract with 14C'11P for 12461:. Je 'erson Page 10 of 33 Requirements. City shall enter into a written agreement with the homebuyer for the down own payment and/or closing cost assistance. If requested by the City, Developer shall time/ provide p timely with all documents and information necessary for City o the homebu er's Y process y HAP application, especially the verification of homebuyer eligibility. If the homebuyer does not Y y meet City HAP Eligibility Requirements, Developer may not sell the Required Improvements q p 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 RE UIREMENTS 6.1 Record-key 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 Y g on 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� De velo er u to HOME (excluding Funds for eligible expenses the Developer F ee) related to construction of the Required Improvements, so long as such eligible expenses are in g p conformance with the Budget and Project Schedule, and sufficient) roved b Y p y Complete Documentation. 7.1.2 Timing f Payment. Provided that Developer submits Complete . p p Documentation to the Director with respect to the Required Improvements in conformance w' . p with this Contract, City will reimburse Developer for eligible s.expenses within 15 calendar days. y 7.2. Monitorin . 7.2.1 Monitoring. City will monitor the activities and p erformance 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 p ga d to compliance with completion of tasks, duties and responsibilities as required under this Contract act with an advanced notice of no less than 24 hours. C'11DO('ontract with T'C.'HP for 1246 E. Jefferson Page 11 of 33 7.2.2 In addition to other provisions of this Contract regardin g frequency of q Y monitoring, City reserves the right to perform desk reviews or on-site monitoring f Develo er' g p s compliance with the terms and conditions of this Contract, and of the adequacy and timeliness of q Y Developer's performance under this Contract. After each monitoring visit City shall provide . g 3 y p de Developer with a written report of the monitor's findings. If the monitorin g report notes p deficiencies in Developer's performance, the report shall include requirements for the timely mel y 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 rovi e d in Section 11. p d 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 ert shall be acquired within 3 months of execution of the Contract. If Developer fails to begin p g construction of the Required Improvements within 1 month of the acquisition of the Property on which the Required Improvements will be located, City ill notify Y 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 b the Developer . Y Y p at time of Contract execution, construction shall begin within 1 month of the execution of this Contract. If the Developer fails to begin construction of the Required Improvements q p 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 City. 8.1.2 Failure to Com lete the Required Improvements. If City determines that the Required Improvements were not completed by the Completion Deadline City will i p � y notify Developer n writing and the Developer will have 3 0 calendar days from the date of receipt of the written notice to complete the Required er Improvements. If the Developer p fails to complete the Required Improvements within such time, City shall have the right . y gh to terminate this Contract effective immediately upon written notice to Developer of such intent with no penalty or liability to City, and to demand a re ment of an HOME Funds repayment y already disbursed to Developer. 8.1.3. Failure to Submit Complete Documentation. If Developer fails to submit . p 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 CHDO("ontruct with TL7] for 1246 t:. Jefferson Page 12 of 33 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 an HOME Funds to D y Developer unless Complete Documentation is received and approved by Y Cit within the term of the Contract. 8.1.4 Failure to Sell Required Improvements in Accordance with Section 4.9.5. If Developer fails to sell the Required Improvements within 4 months of the Completion of the Required Improvements, Developer will notify City in writing and the Developer will have 15 calendar days from the date of the written notice to submit a detailed plan describing how the Required Improvements will be sold to a HOME Eligible Buyer by 6 months from Completion. The plan pp 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 pp 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 an term or p Y condition of this Contract. If such a breach remains uncured after 30 calendar days Y 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 � Y 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 an y 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, includin g, but not limited to those set out in this Contract. ['f DO Contract with TCY1P for 1246 ,E. Jefferson Pine 13 of 33 8.2. 01y 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 an combination of the following actions: Y g 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 com fiance• p 8.2.3 pursue any other legal remedies available to City to ensure compliance p 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. Y 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, settin g forth the reasons for such termination, the effective date, and in the case of p artial termination, the portion to be terminated. However, if, in the case of a p artial termination, City determines that the remaining portion of the Contract to be performed or HOME Funds to be expended will not accomplish the p �u oses 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 ersonaf property p p p Y 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 C.'HDO Contract with TC.'HP for 1246 E. Jefferson Page 14 of 33 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 p q p ovements 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 p q 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 p g to the Developer Fee. 8.5.3. Forfeiture of HOME Funds. In the event of termination, grant rant funds y revoked,awarded to Developer pursuant to this Contract shall be immediate) an y HOME Funds distributed to Developer shall be returned to City, and any approvals related to the Project that pp J is/are the subject of this Contract shall be immediately deemed revoked and canceled. 8.5.4 No Com ensation 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 hts of City Not Affected. Termination shall not effect or terminate any of the rights of City as against Developer then existing, or which may thereafter accrue because of such default, and the foregoing provision shall be in addition to an and all other rights and y g remedies available to City under the law and the Deed of Trust, including, not limited to g� , 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, y mon g, record keeping and reports, along with any default and enforcement rovisions necessary to enforce y ce such provisions, shall survive the termination of this Contract and shall be overned b g y the HOME Regulations as well as the Deed of Trust. 10, REPAYMENT OF HOME FUNDS. All HOME Funds are a subject to repayment to City J py y by Developer in the event the Required Improvements do not meet the requirements as set out i q n this Contract and its Exhibits. It is expressly understood that upon the Completion of Required p p q ed Improvements, any HOME Funds not reimbursed under this Contract shall remain with City. y 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 p ersons performing same, and shall be solely responsible for the acts and omissions of its officers ('11D0 Contract with T'C'HP for 1246 f Jefferson Page 15 of 33 members, agents, servants, employees, contractors, project participants, licensees or invitees. 11.2. Doctrine of Res ondeat Superior The doctrine of respondeat superior shall not apply as between City p and Developer, its , officers, members, agents, servants, employees, contractors, project participants, licensees or invitees, and nothing herein shall be construed as creating a partnershi p or joint enterprise rp 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,p p , is in the paid service of City and that City does not have the legal right to control the details of th g g e tasks performed hereunder by Developer, its officers, members, agents, employees, contractors project participants, licensees or invitees. 113 Relidous Or anization. No portion of the funds received by Developer Develo p 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 ro ert pursuant p p y, p nt to The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 42 U.S.C. Sections 3641 et seq.). 11.4. Audit 11.4.1. Entities that Ex end $500,00 or more in Federal Funds Per Year All non-federal entities that expend $504,000 or more in Federal funds within one ear, Y a 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 re ared b independent p p Y an p certified public accountant, be completed within six months following the end of the period . g p being audited and be submitted to City within 30 days of its completion. Developer's audit i p p t 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 . Y 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 Accountin g Office. 11.4.2. City Reserves the Right to Audit City reserves the right to perform an audit of Developer's p ram ro operations and p g 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 Y p 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 ('11DO Contract with TC11 for 1246 E. Jefferson Page 16 of 33 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. 11.5 Governing Law In any questions involving state law, for any action, whether real or asserted, at law or in equity, arising out of the execution, performance or non-performance of this Contract in any issue not governed by federal law, the choice of law shall be the law from the State of Texas. 11.7 Severability. The provisions of this Contract are severable., and, if for any reason a clause, sentence 3 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 '� . g e invalid provision. 11.8. Written A reement Entire Agreement. This written instrument and the Exhibits attached hereto, which are incorporated b � y reference and made a part of this Contract for all purposes, constitutes the entire Contract b y the Parties hereto concerning the work and services to be performed under this Contract. An prior Any 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 nd g must be executed by each Party to this Contract. 11.9. Paragraph Headin s far Reference ORIA, No Le al Significance. 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 p rovision 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 2O0od et se . . q } 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, 11245 as amended by 11375 and 12086 and as ('111)0("ontruct with R-17IP for 1246E' Jefferson Page 17 of 33 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. . q} • 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 ("U'PitAll)} • Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et se q) 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 se q) and the Clean Water Act of 1977, as amended (33 U.S.C. Sections 1251 et se q) and the related Executive Order 11738. In no event shall any amount of the assistance p rovided under this Contract be utilized with respect to a facility that has g iven rise to a conviction under the Clean Air Act or the Clean water Act. • Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.) specifically including the provisions requiring employer verifications of legal status of its employees • The American with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40 Appendix A • Regulations at 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered p ersons • Drug Free workplace Act of 1988 (41 U.S.C. Sections 701 et se q) 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 Pro'ects and Em io ment 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 1 ( 701 et seq.) and its related regulations at 24 CFR Part 135, specifically 4 CFR 135.38 ("Section "y 3 ), requires that the following clause, shown In italics, be inserted In all covered contracts ("Section„ 3 Clause ): C11D0 Contract with R-71P fear 1246 f:. Jefferson hige 18 of 33 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 covered by Section 3, shall to the greatest extent feasible, be directed to low- and very-low income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' 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 minimum number 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 include this Section 3 clause in every subcontract to comply with regulation 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, upon 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 regulations of 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. F. Noncompliance with HUD's regulation in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be performed under this Contract. .Section 7(b) requires that to the greatest extent ('ffUO('onlruc! wrlh 7('11P jor 1246 F'. Jefferson Page 19 of 33 feasible N preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award 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 g through which Federal assistance is provided and to such sanctions as are specified b 24 CFR Part 135. p Y 11.11.1 Section 3 Re ortin . City and Developer understand and agree that compliance with the provisions of . p 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 . p project binding upon City and Developer, and their respective successors, assigns, contractors actors 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. (_'11DO Contract with H-71f for 1246 E Je&rson Page 20(?f 33 In order to comply with the Section 3 requirements, Developer must submit the Section 3 Reporting Forms attached hereto as Exhibit "K" - Section 3 Reporting Requirements. 11.11.1.1 Report to the City on a quarterly basis, all applicants for employment, and all applicants for employment by contractors and any subcontractors. This shall include name, address, zip code, date of application, and status (hired/not-hired) as of the date of the report. 11.11.1.2 Notify available positions to the public for open competition, and provide documentation to City with the quarterly report that demonstrates such open advertisement, in the form of printout of Texas Workforce Commission posting, copy of newspaper advertisement, copy of flyers and listing of locations where flyers were distributed, and the 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 C 5 codified at Chapter 17, Article III, Division 4 — Fair Housing of the City Code. Developer may . g Y p Y not discriminate against any person because of race, color, sex, gender, reli ion� national origin, familial status, disability or perceived disability, sexual orientation ender identity,. � g y, g 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 . p Y 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 g � 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 perceived disability, Y or p y, sexual orientation, gender identity, gender expression or trans ender. Developer will take g p [.'f IDO Contract with T(_'f lT for 1246 E Je ers on 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 g 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 p 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, includin g apprenticeship. a renticeshi p 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 b or on behalf Y 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 c n p o tractors, 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, ees em to p Y 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 245 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 [_'11D0 C"ontruc•t with I'[_'11P for 1246E' Jefferson Page ZZ of 33 - ._ 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 er or employees of Developer p 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 Against Interest 1 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 g ives 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 . p g information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter, unless they are accepted under the procedures set forth at 24 C.F.R. § 92.356. 11.13.3 Developer affirms that it will adhere to Chapter 36 of the Texas Penal Code, which prohibits bribery and undue influence of public servants. 11.13.4. In the procurement of property and services by Developer, the conflict of interest provisions of 24 CFR Part 85.36 and 24 CFR Part 84.42, respectively, p Y' 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 se q. and 18 U.S.C. 8 74 q } as amended, the provisions of Contract Work Hours and Safety Standards Act (40 Y U.S.C. 3701 et seq.) and all other applicable Federal, state and local laws and regulations ('11DO C.'ontract with TC.'f1P four 1246 E. Jefferson Page 23 of 33 pertaining to labor standards insofar as those acts apply to the erformance of this Contract. p t act. Developer agrees to comply with the Copeland Anti-Dick Back Act 18 U.S.C. 874 et seq.) and its p 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 p , 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 art with assistance . p 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 governin g the ment of wages pa y g es and ratio of apprentices and trainees to journey workers; provided that if wage e rates higher than those required under these regulations are imposed b state or local 1 . p y law, nothing hereunder is intended to relieve Developer of its obligation, if any, require g a y, re q payment of the higher wage. Developer shall cause or require to be inserted in full in all such contracts subject to such regulations, provisions meetin g q the requirements of this paragraph. 11.15. Subcontracting with Small and Minoritv Firms Women's Business Enterprises and Labor Surplus Areas. 11.15.1 For procurement er contract i s $50,000.00 or larger, Developer g p agrees to document a good faith effort to involve Minority Business Enterprises and Small Business Enterprises and to provide them equal opportunity to compete . . pp y p for contracts for construction, provision of professional services, purchase of equipment and supplies and provision of other services required b City. q y .y 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 . p 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 p ossible 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 g pp e to Developer does not excuse or relieve Developer from the requirements or responsibilities i q p n regard to following the law, nor from the consequences or enalties for Developer's failure ' ' p p e to follow low the law, it applicable. ("11DO Contract with T(lP four 1246 E. Jefferson Page 24 of 33 _ ..` 11.17. Assignment Developer shall not assign all or any part of its rights, privileges, or duties under this Contract without the prior written approval of City. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Contract. 11.18. Right to Inspect Contractor Contracts It is agreed that City has the right to inspect contracts between Developer and any Y contractor engaged in any activity in conjunction with this HOME-funded project. 11.19. Force Mai eure 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 p ublic 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 �` Y p control (collectively, Force MaJ eure Event"), the obligations so affected b such Force Ma'eure . Y J Event will be suspended only during the continuance of such event. Developer will give City p g Y written notice of the existence, extent and nature of the Force Ma'eure Event as soon as . J reasonably possible after the occurrence of the event. Developer will use commercial) reasonable efforts to remedy its inability to perform as soon as possible. Failure to g ive notice will result in the continuance of the Developer's obligation regardless of the extent of any y existing Force MaJ eure Event. 11.20 HOME Re uirements. 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 aid, and costs . p 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 p J ro'ect. Further, Developer will not undertake or commit any funds to physical or choice limitin g actions including property acquisition, demolition, movement, rehabilitation, conversion repair or construction prior to the environmental clearance, and any violation of this p rovision 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 com p onmental review and receipt by City of an authorization to use grant funds from HUD under 24 CFR Part 58. C_'11DO Contract with H"Il for 1246 E Jefferson Page 25 of 33 11.20.3 Com liance 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 pY Davis-Bacon Act as described on Exhibit "H" — Davis Bacon Requirements of this q 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. 11.20.5 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 allowabilit Y 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 a 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, PERFORMANCE9 ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE C HDO Contract with R-7IP for 1246 E Jefferson 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 OFFICERS9 AGENTS9 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 INJURY9 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, CONTRACTORS9 SUBCONTRACTORS, INVITEES, LICENSEES, OR PROJECT PARTICIPANTS OR CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS9 AGENTS SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. IT IS THE EXPRESS INTENTION OF THE PARTIES9 BOTH DEVELOPER AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE WHETHER THAT NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DAMAGE OR DEATH. DEVELOPER AGREES TO AND SHALL RELEASE CITY ITS AGENTS, EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY DEATH, DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT NEGLIGENCE. DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS AND SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. C 71DO Contract with TC'f IP for 1246 E. Jefferson Page 2 7 of 33 13, WAIVER OF IMMUNITY BY DEVELOPER If Developer, as a charitable or nonprofit organization, has or claims an immunit y or exemption (statutory or otherwise) from and against liability for damages or injury, including g death, to persons or property, Developer hereby expressly waives its rights to lead defensive) g p y such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 14. INSURANCE AND BONDING Developer will maintain coverage in the form of insurance or bond in the amount of $117 .000-00 to insure against loss from the fraud, theft or dishonest of an of Developer's y y p 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 b such misconduct. • y . To effectuate such reimbursement, such fidelity coverage shall include a rider statin g 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 aid for policies of . p p 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 option,at its 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 followin g coverage e and limits thereof: Commercial General Liability CGL) Insurance $500,000 each occurrence $1,000,000 aggregate limit Business Automobile Liability Insurance $1,000,000 each accident on a combined single-limit basis, or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence $2,000,000 Aggregate Insurance policy shall be endorsed to cover"Any Auto"defined as autos owned, hired and non-owned. Pending availability of the above coverage and at the discretion of City, the policy shall be the primary responding insurance policy versus a personal auto insurance polic y if or when in the course of Developer's business as contracted herein. [.'IM0 C"Ontrac°t with R-11P for 1246 E. Jefferson Page 28 of 33 i Workers' Compensation Insurance Part A: Statutory Limits Part B: Employer's Liability $1 00,000 each accident $100,000 disease-each employee $500,000 disease-policy limit Note: Such insurance shall cover employees performing work on an and all r . g y projects including but not limited to construction, demolition, and rehabilitation. Developer r p o 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,ontractor, if applicable, for each applicable contract. Additional Re uirements Such insurance amounts shall be revised upward at City's reasonable option Y and no more frequently than once every 12 months, and Developer shall revise such amounts ' p ants within 30 days following notice to Developer of such requirements. Developer will submit to City documentation that it, and its eneral contractor,, has obtained insurance coverage and has executed bonds as required in this Contract p rior to payment of any monies provided hereunder. p Where applicable, insurance policies required herein shall be endorsed to in ' include City as an additional insured as its interest may appear. Additional insured parties shall• p include employees, officers, agents, and volunteers of City. The Workers' Compensation Insurance policy shall be endorsed to include de a waiver of subrogation, also referred to as a waiver of rights of recovery, favor of City. Y? y 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. Ives. 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 d g o business '�n the state of Texas. Insurers shall be acceptable to City insofar as their financial strength g and solvency and each such company shall have a current minimum A.M. Best Key Rating Guide rating . y g ating of A. VII or other equivalent insurance industry standard rating otherwise approved b City. pp Y .Y Deductible limits on insurance policies shall not exceed $5,000 per occurrence u ' • p unless otherwise approved by City. In the event there are any local, federal or other regulatory insurance or bonding . g Y g requirements for the project, and such requirements exceed those specified herein the former shall prevail. C"HDO Contract with R-71f for 1246 F: Jefferson Page 29 of 33 Developer shall require its contractors to maintain applicable insurance coverage, limits, and other insurance requirements as those specified herein; and Developer shall all require its contractors to provide Developer with certificate(s) of insurance documenting uch Also Developer shall r g coverage. g p require its contractors to have City and Developer endorsed as additional insureds (as their interest may appear) on their respective insurance p olicies. Directors and Officers Liability coverage shall be in force and ma y e b provided p On a claim made basis. This coverage may also be referred to as Management Liability, . g y, d shall protect the insured against claims arising out of alleged errors in judgment, breaches of dut an. . y d wrongful acts arising out of their organizational duties. Coverage shall protect not onl y y the entity, 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 ue o f 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 aid b or on behalf of . paid, y Developer, to any person for influencing or attempting to influence an officer or g 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 a g any Federal grant, the making of any Federal loan, the entering nto of g any cooperative agreement and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement. p g t. If any funds other than federally appropriated funds have been aid or will be p 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, g rant loan or cooperative agreement, Developer shall complete and submit Stand « p and Form-LLL, Disclosure Form to Report Lobbying," under its instructions. This certification is a material representation of fact upon which reliance was s placed when this Contract was made or entered into. Submission of this certificate is a prerequisite for making or entering into this Contract imposed b p y 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 $1 00,000.00 for each such failure. (11DO Contract with TC'Hf for 1246,E. Jefferson Page 30 of 33 Developer shall require that the language of this certification be included in I al subcontracts or agreements involving the expenditure of Federal funds. 16, LITIGATION AND CLAIMS Developer shall give City immediate notice in writing f action including g any � g any proceeding before an administrative agency, filed against Developer in conjunction with p � this Contract or the project. Developer shall furnish immediate) to City copies of al Y Y p 1 pertinent papers received by Developer with respect to such action or claim. Developer shall provide p p a notice to City within 10 days upon filing under any bankruptcy or financial insolven cy provision of law. 17. NOTICE All notices required or permitted by this Contract must be in writing nd de g are erred delivered on the earlier date of the date actually received or the third day following g ( 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 ro er notice to the sending P p p g arty. C it City Manager's Office 1000 Throckmorton Street Fort Worth, TX 76102 Copy to: City Attorney's Office 1 000 Throckmorton Street Fort Worth, TX 76 102 Copy to: Director of Housing and Economic Development 1000 Throckmorton Street Fort Worth, Tx 76 102 President of Tarrant County Housing Partnershi Inc. 3204 Collinsworth Street Fort Worth, Tx 76 107 18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT T Developer represents that it possesses the legal authority,, pursuant to an r Y p y proper, appropriate and official motion, resolution or action passed or taken, to enter into this Contract and to perform the responsibilities herein required. (711)0 C"ontrac°t with 71C'11P for 1246 k. Je e son Page 31 of 33 19. COUNTERPARTS This Contract may be executed in multiple counterparts, each of which will be deemed an original, but which together will constitute one instrument. IN WITNESS WHEREOF the Parties h • to have executed this Contract in Fort Worth, Tarrant County, Texas, this ay of v 'lam_ , 2013. 0 0 - ATTEST: VY OF FORT WORTH 0 0 Cit Secretar APO ° Y 3 � o0 00° ,Fernando Co a, sistant City Manager M&C: �' �� �.°OVOOOOO° k Date: Date: k �,I,�;S .' C---� l 3/a710010- APPROVED AS TO FORM AND LEGALITY: \OV 1 Assis-tant Ci Attor ey ty TARRANT COUNTY HOUSING RT'NERSHIP, INC. By D a an ess Pre ' nt Date: 5- 10 !3 rF CIAL RECORD Y SECRETARY C'fID(�Contract with T('NP jor 1246 F.. Je erson wpRTH,TX Page 32 of 33 Exhibits: Exhibit"A"—Project Summary 1 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-21'- Contractor Information Form Exhibit"H-3 - Subcontractor Information Form Exhibit "H-4: —Labor Relations Guide Exhibit"H-S"— 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(Nat Applicable) Exhibit"K"- Section 3 Reporting Requirements c_'11DO C"ontruct with TCH for 1246 E. Jefferson Page 33 r?f 33 EXHIBIT "A" PROJECT SUMMARY- SCOPE OF WORK 1246 E. JEFFERSON DESCRIPTION: Developer will construct a 1404 square foot, 3bedroom 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"). C11DO Funds -Exhibits EXHIBIT "A-1" FINAL ELEVATIONS AND PROPOSED PLANS AND SPECIFICATIONS CHDO Funds -Exhibits BUILDING ELEVATIONS + EC 110, 11010 8.1 t If 11 ti t HILLSIDE PARTNERSHIP, INC. WORTH' TEXAS 78398 FAT VIORTH STr �A TEXAS 789 Q4 MODEL A TARRANT COUNTY HOUSING FROMM t� 91111100kki emeramAwn= INvarr+l H 13aOW te191. SVX31+ 91.001. SVX31 +N '3N1 +dIHNItrid em1144 -a. ,oDow "a.Z7.=—a._��? y� crimp" '7 i7 HI N N ..... A DJjI IIiiiIi� r 3! IIl�lt66 n j;iA 1 otol <>Io i 0 Porte Cachers 11•---rf 'a 11'-r 4•-too" (-44' r-44' r--a}' QIf3 r �a I 0 a Bectoare 1'_ wJ a 719 I 0; 4.-4. 5"-54' ti .asr, Cant -1 r-113. 411, t(i) r-r 2 5.00-1 FLOOR PLAN 1/4'.1.--Dr -to. 0 bg 0 0 CD 4'-11' 1.1 rr,. al 11. GROSS BL!]4. AREA: 1404 SQ. FT. Refer to Developer's Refer to Developer's MEP design drawings structural design drawings for plumbing, HVAC & for foundation & electrical design. framing design. GENERAL NOTES: 1. D#notaiona are to center of stud or structure unless otherwise noted 2 1 Indicates Portttian twee refer to ,towing page 4.01. 5.00-2 GARAGE PLAN a • ER\ 5.00 PACE CV MCI ; I EXHIBIT 66A-2" LEGAL DESCRIPTION Highland Park Addition — Ft Wth Blk 47 Lot 12 CHDO Funds -Exhibits EXHIBIT «B" PROJECT AND REIMBURSEMENT SCHEDULE 1246 E. Jefferson Phase Activity Beginning Week — subject to � weather ermittin PHASE I ACTIVITIES: Contract signed Ma 13 Lot Acquisition/Preparation May 20 (Demolition Plumbin g August 12 Foundation August 19 PHASE I DEADLINE: Au guru 23 1 st Payment $36,400 PHASE II ACTIVIITES: Framing August 26 Roofing September 2 Insultation September 9 Siding 1 Brick September 16 Top-out Plumbing, Electrical, HVAC Se p tember 23 PHASE II DEADLINE: na P October 4 Payment $389500 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: 3 rd P November S Payment $289500 00 PHASE IV ACTIVIITES: Landscape, Paving November 11 Flooring November 18 Appliances, Interior trim-out/finish November 25 PHASE IV DEADLINE: November 29 Construction Final Payment $139600 00 CONSTRUCTION TOTAL $117,000 :lT- DEVELOPERFEE Paid at time of home sale to HOME $11 Eligible Bu er 7 y 00 *Developer will be reimbursed for eligible expenses only.y The amounts are estimates and are subject to char e. Exhibit C Budget BUDGET— 1246 E. Jefferson Total Cost: $ 117,000 Project HOME Funds Awarded: $ 117,000 Operating unds Awarded:d. $ TOTAL AWARDED FUNDS: $-11 ppp Please note that all funding ill made g on a reimbursable bass only. Development Budget Use of Funds S Predevelopment cost Source of Funds HOME $ OTHER $ SOURCES OF TOTAL $ FUNDS OTHER FUNDS FUNDS (2) (Names) (1+2) 1. Market Stud 2. Feasibility(ie: preliminary work write-up, cost estimates, design) 3. Other Total Predevelopment cost(1+2=3) Development Cost 4. Land and/or building acquisition 2,100 5. Site Preparation 3.100 2,100 5. Construction cost 99,200 3,100 7. Fence 99,200 4.300 8. Landscape 2,100 4.300 9. Contingency 2►100 10. Appraisal 475 Proceeds of Sale 475 1. Architect& Engineering Fees 2,500 12. Construction Management Fee 2,500 3. construction Loan Interest 14. Property Survey 500 15. Legal Fees 500 250 Proceeds of Sale 250 -16. Real Estate Fees 4,,680 Proceeds of Sale --4.680 7. Utility Hookup/Impact Fees 3,200 18. Title& Recording Fees 3,200 780 Proceeds of Sale 780 9. Program Related Expenses 6.250 CHDo operating Funds 5,250 20. Construction Management 21, Bond Fees Total Development Cost(Total of 117,000 items 4—21) 129,435 Total Project cost 117,000 12 435 129,435 CHDO Funds -Exhibits EXHIBIT 66D" AUDIT REQUIREMENTS • Pages 1-2: Summary of Audit Requirements • Page 3: Single Audit Report Checklist • Page 4: Audit Certification Form CHDO Funds -Exhibits CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT AUDIT REQUIREMENTS Organizations expending $500,000 or more in federal al awards (from City of Fort Worth and other fun • sources during their fiscal ears shall obtain -- ding y either an annual single audit or a ro ram specific fi c rams specific audit p g p audit. Organizations may have a program p tin accordance with OMB Circular A-133 or other star set forth in the Contract if applicable, if the e � standard pp y expended funds for only one federal ro ram as listed� p g d in the Catalog of Federal Domestic Assistance FDA). If funds are spent for more than one fed single audit is required. The audited time federal program, a me period is the organization's fiscal year, and not the City Worth's funding period. y of Fort The audit shall be conducted by a certified ublic accountant countant (CPA) that is i 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 an d quality control as required by Government�4 uditi Standards, including the requirements for continuing g g professional education and external eer reviews. procurement requirements Auditor selection must adhere to federal p . A separate supplementary schedule of revenues expenditures • penditures and changes in fund balance for each City of Fort Werth contract is no longer required. The Sc q Schedule of Expenditures of Federal Awards shout • City of Fort Worth 's contract numbers the total expended for each individual list idual federal ro ram CFDA number(OMB A-13 3 .310 . p g , and the The independent auditor's report should include all of the relevant items i listed on the "Audit R Checklist."Additional guidance on the conduct and re porting of these audits is contained ep°� ined in the latest issuanc of the following publications: e Government Auditing,Standards issued b the Comptroller Ge • Y p Herat of the United States,2003 OMB Circular A-133 as revised 5130197 and amended June 2003 OMB Circular A-133 Compliance Supplement AICPA's Statement of Position 98-3, "Audits of States Not-for-Profit, Local Governments, and Organizations Receiving Federal Awards" g Various AICPA audit guides for nonprofits, colleges an universities • p � g d universities and health and welfare organizations AICPA s Audit Risk Alert"State and Local Governmental tat Developments" Government Auditing Standards by the Texas Department p ent of Housing and Community 4ffairs f or Properties Low Income Housing T ax Credits All organizations that receive a City of Fort North award must submit the provided Audit Certification Form which certifies whether you are subject to a single/program ° m . J audit. organizations receiving federal awards from the City of Fort North who are not required g q to have an audit shall certify in writin to the agency. The organization's Chief Executive officer or Chief g g cy• Financial officer shall make the certification within 60 days of the end of the organization's fiscal year in • y the year that the project was completed. The following items should be submitted to the City of Fort North Housing and Economic Deveio meat Department within the required timeframe: p Due 60 da s after organization's fiscal year end in the earth ' . at the ro tct was completed: re wired for all subrecr rents Completed Audit Certification Form CHDO Funds -Exhibits Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit Period. Two copies of the entire audit report issued by the CPA Two copies of any management letter issued b the CPA ' • Two � y �n conjunction with the audit report copies of managements comments on all findings,g , recommendations, & quesitoned costs contained in the audit report and management letter, action I g , including a detailed corrective pan Failure to submit any of these items b the required du Y q e date may result '�n holds on current draw requests, suspension of the organization's contract(s) and eligibility for g y future funding. If the organization does not meet the requirements of ' . q having a single/program audit conducted records must still be kept available for review or audit b fit of Fort (OMB ' Y y worth staff A-133 Subpart B Sec 200(d). If additional information is needed concerning the audit requirements, please call (817) 392-5141. CUIDO Funds -Exhibits _IW="ffAdU aux EM IMAM 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 Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards. (OMB A-133 § 505 (b)) Re ort on Com liance 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 Findings and Questioned Costs (OMB A-133 §. SOSd), including: Summary Schedule of Prior Audit Fmdi 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. Cf(DO Funds -Exhibits CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT Audit Certification Form Subrecipient: Jarrant County Housing Partnership, Inc. • p Fiscal Year Ending: —9 130_Il3 Month Day Year We have exceeded the federal expenditure p ture threshold of$500,000. We will have our Single Audit or Program Specific Audit completed and will submit the audit report within nine ft audited fiscal year. p (9) months after the end o f the We did not exceed the $500,000 federal x e penditure threshold required for a Single Audit or a Pro ram Specific Audit to be performed this fiscal ear. (Fill out g y schedule below) Must he filled out if Single Audit or Program Audit is not required: Federal Expenditure Disclosure Federal Funds Pass Through Program Name& Contract Federal Grantor Grantor CFDA Number Number Ex enditures Total Federal Expenditures for this Fiscal Year $ Donna VanNess President Printed Title(Must be CFO,CEO or equivalent) 817-924-5091 5110113 thor' re(M t be C ,CEO or equivalent} Phone Number Bate Failure to submit this or a similar statement or failure to submit a completed p ted 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 Worth Housing and Economic Development Department Fiscal year p p within 60 days after the end of your CHDO Funds -Exhibits Exhibit E-1 INVOICE CHDO: Tarrant County Housing Partnership, Inc Project Site Address: 1246 E. Jefferson Ave., Fort Worth, TX 76104 Period of Service: Program Amount This Invoice Cumulative to Date--m 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: i Exhibit E-2 DETAILED STATEMENT OF COSTS CHDO: Tarrant County Rousing Partnership. Inc. Project Site Address: 1246 E. Jefferson Ave.. Fort Worth. TX 76104 LINE NO. CHECK NO. EXPENSE DESCRIPTION BUDGET LINE ITEM PAYEE AMOUNT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 (Itemize each expense and attach invoices, receipts, cancelled checks, and other backup documentation to (From Exhibit C) verify that the costs are directly attributable to the Project and that the costs have actually been paid by CHDO.) TOTAL CHDO Certification: I certify that the costs incurred are taken from the books of accounts and that such costs are valid and consistent with the terms of the agreement SIGNATURE and DATE 11, I , 11 1111 EXHIBIT "F" STANDARD OF BACKUP DOCUMENTATION FLIRT WORTH, Standard of Documentation for Reimbursement of Development Costs Cost Type Acquisition of Vacant Lots Documentation Standard • 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.sa 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 CHDO Operating/Project Delivery documentation of how costs are allocated. • 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, wool 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 wwwsa 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 dots 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/Z013 Pale 2 of4 Generakl. becisio �r TX 13002-5 1, t?#l 0f 3` Tai 25 Supersedes General 006isiorr Number:, � I2 2S state; Texas Construction 'hype: Residential-. Y Counties,t, Johnson R Parker d Tar, rant-Cbunt ies _ ixt. 'Texan. Residential; PrOlOrtS consistinq of single fame JLy h o apartments up, t* and includin q' st oriel 4 �aeat and . Modification der publication Dater 0 01/0 4/2013 * SUTX1990.020' 04/01/139th Rates Fringe* C RPMER (excluding drywall han'ginrl- any# forte setti.nq) . . . . ... 99 315 CEMENT SORf CoNCRZTZ FTNiSHER 4 Excludinq form DRYWALL HANGER/.• . • . ■ ■ • • • ■ • ■ • • ■ • •$ 9•OD Forts Setter. . . . .. . . . . . . . . . . . . . . . .$ 9.194 HVAC MECHANIC (including duct, excludinq pipe work) • • • • • • •$ a.337 Laborers court•. . . . . . . . . . • . . . . • . 7.25 Paintersx Bruh. . . . . . . . . . . . . . . . . . . . . . .$ 8085 Spray. . . . . .. . - . . . . . . . . . . . . . . 10.00 PLUMBER (Including RVAC ORORK) . . . .$ 10.687 ;GOFER, Including 3u.i l t v p, --omposition .end Single ply Sheet "!et3l Jorker (wxcludinq rIVAC-duct work) . . . . . . . . . . . . . . . . . . 14- 103 1ILE SETTER. . . . . . . . . . . . . . . . . . . . . .S 11. 50 ipUCK DRIVER. . . . . . . . . . . . . . . . . . . . .3 7.25 'iELCERS - Rece171 rite pr°scr1^e(# f,-)r �r3rt :erf�r�:ri 'perition r,,) •nt --h je: -- _--_ _ - ��tt�:l�u�ww.w��l.,�uv►w��uL`�a::�1iI�i��avi�t,bsu�ru'C�C�S.��rh`ty---[]_. _ Page 2 of 4 WELDERS -- Receive rate prescribed for craft performing operation to which welding is incidental. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii) f . ______-_-___-_______________-_-_-__-_--____ _ ------ 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 b the e determination. The classifications are listed Y wage order of "identifiers" that i in alphabetical indicate whether the particular rate is union or non--union. Union Identifiers An identifier enclosed in dotted lines beginning with characters other than "SU" denotes that the union classification and rate have found to be prevailing for that classification. Example: PLUM0198--005 07/01/2011. The first four letters , PLUM, indicate the international union and the four-digit number, 0198, that follows indicates the local union number or district council number where applicable , i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination.date, 07/01/2011, follow-Ing these characters is the effective date of the most current negotiated rate/collective bargaining agreement which would be July 1, 2011 in the above example. Anion prevailing wage rates will be updated to reflect an changes in the collective bargaining agreements governing rates. g ng the 0400/9999: weighted union wage rates will be published annually each -January. Non--'Jnion Ident i Lers =lass i f icat ions is ted under in "SU" identifier were derived From survey Aata by comput irg average rates and are not union rites; however, the data used in cOmPut ing these rates may Include both union and non--union data. Example: JULA2004_00 7 511.312.010. SU indicates the rates are not union majority ates F.A Lndicates the State of Louisiana. 2004 13 1-he Par r�Y ��zr•�ey: n�� �0 ? 3 �n Lr,`_err..� . ::Whet 1.3P� Y f the �n pr-Auc inq •�N s tIttp:i.�www.wdo1.go vi wdoU-scatiles/davts bacorv'f X25.dvb?v 0 4/1i)/0 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, g 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 setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests Wage for summaries of surveys, should be with the Wa and ur Regional Office for the area in which the Hour e survey y was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If 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 Division U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 24210 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 CFR Part 1.S and 29 CFR Part 7) . Write to: Wage and Hour Administrator U.S. Department of Labor 204 Constitution Avenue, N.W. Nashington, De 20210 The request should be accompanied by a Et-11.1 statement o f the z-r1f e rAs t ed party's posit,on ind by jr:y i r►t Erma t i �n (,�at3e G3'fR'P.nr �ata, project le-Script Lan, area p i{=t i s Mdteri,--i i, the requestor {-nngt iPrs rpe*j,�nt *a the is9�le. 3. } I f the Aecision of the Acjministrat-or 19 not favor3ble In Lriterested party may appeal directly -_o .."'he Administrative .review Bard (formerly the Wage Appeals Board) . Write to: Admir,istrar the Review Heard "J. 'J~'partmpnt 91,210 .1 . � •t� ]r �r 1r :fin 1`i f?n'jP "� Y, Fags 4 of 4 4.) A11 decisions by the Administrative Review Board are final. mom. END OF GENERAL DECISION hctp:i;wNvw.wdo1.go wdoLicatiles/ av]sbacon/'F {..25.Livb 0 1/19/2013 EYHIBIT 64H-2" CONTRACTOR INFORMATION FORM City of Fort'North Community Development Block Grant CDBO Construction Projects CONTRA OR INFORMATION Date: Project: Contractor: Address: City. Telephone: Fax: Federal 1.D. Dicers of the Corporation: President: Vice President: Secretary: `Treasurer: If sole ownership or partnership, list owner (s): I certify at the time of execution, hereof, neither my company p y nor my corporate officers {if incorporated) are listed In the list of Debarred, Suspended,p , end [neliDble Contractors maintained by the U.S Department of Housing and Urban Devc10 ment p (HUD). Signature: EYHIBIT "H-3" SUBCONTRACTOR IYFORMATION FORM City of Fort Worth Community Development Block Grant(CDBG) Construction Projects SUBCQ.N���OR WFORMATIOti Date: Proj"Mt: Subcontractor: Address• City: Telephone: Fax: Federal I.D. #: Officers of the Corporation: President: Vice President: Secretary: "Treasurer: f f sole ownership or partnership, list own s p owner(s): f } I certify at the time Of exec-cation, hereof, neither my company nor my corporate o ulcers 0 f incorporated) are listed in the list of Debarred Suspended, and Ineligible Contractors maintained by the U.S Department of Housing and Urban an Development(HUD). Signature: EYHIBIT 66H-4" LABOR RELATIONS GUIDE � t�'tE�"' . _y.:. ifit•' 1: -a•.- _Y '�•"'1 " ,��.'� .�•t,F' ..' i F•' �. �..?e...:�:•^ '•�-r .N•� y" rf-!'. .i ,r.'' �,t{•.'.5 a4. -. U a . Department of Housing l� and Urban Development ."•- ire. _ T •�� i �.}}.�,fir. �- �,{: •K ,. �sw .•374'..t','�;7�'�1_r x=,rY,.'v,'��-_��7 5�e N.'.� ��```r,{','=�-a•,':�9:y.��i Fy Nf`,�.�.�4.E:i:v��=-�!}��,im;'xr3 rSi��ti.H!r`}.::s.'�. x •'�:,w{i•,��.:,ti sof[-� Jrt�•r-.ri_�',.•'-:i;•4"a..,'l r.4��.�y•wc1,I i� �-},rF.l..•+�am�.,a,r•i�_�•`iY-".�}+�t-�i'•.i 7•T I a L�r tet■'�w c��a•.".C._�.,_-:t r r"_'}{""-t s ':j..�..�y•*-.S�:;,_#.',F.4�°..�_.•...i}._ :.l•:..��+t-a: ..*�+•.��•�,..�-• �.• " _q•".�.. r 1- � - r •Labor}R. e+�4'i la�} t ia o•rnf�s S�teDa.' eF sk Guide tilt �3 ' r :,�.. a� '-r 13-1 " r 754 Ll.vl Akii A Contractor's Guide to Prevc1iling e Requiorements 9 fo Ss r Federall isted Construction Projects' ' .. NL 1 '00 r 41k January 2012 Previous versions obsolete &.R - INTRODUCTION This Guide has been prepared for you • that are as a contractor performing work on construe ' . e assisted by the Department of Housing ion projects g and Urban Development and subject t ' Bacon prevailing wage requirements. 1 o Davis- . q . This Guide does not address contra involved in direct Federal contracting contractor requirements g where HUD or another Federal agency g cy enters into a procurement contract. In this latter case, the Federal Acquisition Regulations • g s AFAR} are apple_ cable. While the guidance contained in this Guide is generally applicable to covered project, specific questions PP any Davis-Bacon Q pertaining to direct Federal contracts s to the Contracting Officer who signed should be addressed fined the contract for the Federal agency. g y. Our objective here is to provide you with • • y th a guide which is simple and non-bureaucratic comprehensive and which will help you bait ureaucratic yet standards. y better understand and comply with Davis- ndards HUD's Office of labor Relations Y Bacon labor tons worked closely with the Department Wage and Hour Division to make sure P ant of Labor's that the labor standards provisions i the specifics of complying ith them P n your contract and g represent the latest information. It is Labor which has general administra ' the Department of Live oversight of all Federal contracting ' HUD, which administer the day-to-day responsibilities agencies, such as Y y responsibilities of enforcing Davis-Baco construction contracts they either fund or assist • n provisions in fist in funding. There are three chapters in this Guide. The first chapter offers a brief description and regulations associated with Federal of the laws labor standards administration and discusses both what's in your contract that requireS Davis- enforcement and Bacon compliance P e and your respon- sibilities. The second chapter deals with labor standards and payroll reporting • The third chapter discusses what can Y P ng requirements. happen in the event there is a dispute Pte about the wage rates that should be for have been) paid and any back wages that may y be due. Finally, not all HUD construction ro'ec p is are covered by Davis-Bacon wage r pose of this Guide, we are assuming that g aces. For the pur- pose 9 t a determination has already been ma con wage rates are applicable. Should de that Davis - Bacon you wish assistance in determining Bacon wage rates apply to a articular whether Davis- Bacon project or if you need other related technical please consult with the HUD Labor Relations ical assistance, ations Field staff for your area. if you don't staff to contact, a list of Labor Relations f Y on t know which field offices and their geographic area sand telephone numbers can be found on HUD's Home Page at the address below. Visit the office of Labor Relations on-line: L7 V2- •h y cell.Qlr Obtain additional copies of this Guide and other publications at our website or from HUD's Customer Service Center at (800)767-7468. y i IN No TABLE OF CONTENTS INTRODUCTION........................................................... ■ CHAPTER 1 LAWS, REGULATIONS9 CONTRACTS AND RESPONSIBILITIES........................................ 1-1 DAVIS-BACON AND OTHER LABOR LAWS■ a. The Davis-Bacon Act (DBA) ............................. b. The Contract Work Hours and Safety Standards Act (CWHSSA)■■■.........■,■■•■■■•• 1.1 c. The Copeland Act (Anti-Kickback Act)................................................................1-2 d. The Fair Labor Standards Act 1-2 DAVIS-BACON REGUL.ATIONS....................... ... 1-2 1-3 CONSTRUCTION CONTRACT PROVISIONS 1-4 RESPONSIBILITY OF THE PRINCIPAL, CONTRACTOR......................................1-3 1-5 RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR................................. 1-4 CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS AND PAYROLL REPORTING REQUIREMENTS ...... SECTION - I THE BASICS 2-1 THE WAGE DECISION .. ............ 2.1 ...... ........... a. Thew ..............................■........... work classifications and wage rates............. ......... b. Posting the wage decision ... ..... .........•�. ......... ....................... ..... 2_2 2-2 ADDITIONAL "TRADE" CLASSIFICATIONS AND ... .....�........ WAGE RATES..... .2.2 a Additional classification■ cation rules . b. Making the request ......... .. ..... .... . ....... ................. ............... .... 2-3 c. HUD review........... ....... ...... ... ..... ......... ..................................... ...... ...... ...... ..2-3 d. DOL decision................ ... .. ................... ....•....... ................................. ... ......2-3 2-3 CERTIFIED PAYROLL REPORTS......... ... .........�................... ...... a. Payroll formats ................... ................................ ... ................................ .2-4 ........... ... ... b. Payroll certifications ................. .. ..... ................... c. "No work" payrolls .......................... ................................................... d. Payroll review and submission................ .............................. e. Payroll retention ...........................................................2-5 ....................................................... .2-5 f. Payroll inspection ................................ ........................................ 2-4 DAMS-BACON DEFINITIONS .. ............................................................2-5 ONS ................................................. .......... ... ........ ......... .2-5 a. Laborer or mechanic ..........................................................................................2-5 b. Employee ...................................................................................... .... .....2-6 c. Apprentices and trainees....................................................................................2-5 d. Prevailing wages or wage rates .........................................................................2_T e. Fringe benefits. f. Overtime ..................................................................................... ............ ....... .2-7 9 Deductions . h Proper designation of trade 2-8 9 Site of Work. 2-8 2-8 iii SECTION - II REPORTING REQUIREMENT 2-5 COMPLETING A PAYROLL REPORT............................. a. Project and contractorlsubcontractor information..................... b. Employee information........................................................... c. Work classification.................................................................... d. Hours worked....................................................................... e. Rate of pay.................................................................. .............. f. Gross wages earned......................................................... g. Deductions ..................................................................... h. Net pay...............................................................................................................2-11 ' i. Statement of compliance.............. ...... J. Signature.................................................................................... SECTION III - PAYROLL REVIEWS AND CORRECTIONS 2-6 COMPLIANCE REVIEWS................................................. a. On-site interviews...................................................................... Project payroll reviews ................................................ ........... TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS 'a• Inadequate payroll information b Missing .. ng identification numbers .... ....... C. Incomplete payrolls ................. ...... ............ ... ....................... ............ 2-13 d. Classifications ........................ .... ................................................. ............. ... .2-13 e. Wage Rates..................... ....... .., ............. f. Apprentices and trainees ... g. Overtime...................... ... ....... ................................................ ... ..2-13 h. Computations..... ... ....... .......... ... .... ... ....... ........ .. i. Deductions .. .. ... ...... ......... .. .... ................................. 2-1 3 ...................... ... ... . ..... ............... �. Fringe benefits.............. ... ... ...... k. Signature............................ ......... .... .............. .2-14 I. On-site interview comparisons ..... ...... ... .: .... .................... ............ .2-14 ....... ... m. Correction certified payrol l....................................... ..... .... 2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES. ................... ................... a. Notification................... ................................ ............................................................ .Z-14 b. Computing wage restitution............................. .......................... c. Correction certified payrolls............................................... . 2-15 d. Review of correction CPR ..................................... .................. ............. e. Unfound work . ...........................................2-15 workers ................................................................................................2-15 1v CHAPTER 3 LABOR STANDARDS DISPUTES9 ADMINISTRATIVE REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW ACCOUNTS, AND SANCTIONS............■............................. - 3-1 INTRODUCTION............................................................ 3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES.....................3-1 a. Additional classifications and wage rates............................ b. Findings of underpayment............................................. 3-3 WITHHOLDING .....................................3-2 .■■■.•■■■■.■•.■•.■■..■■..■.■.■.■■■■■..■■.■■■■■.■■■■■•■.■■■•■■■■.■■■■■.•■■..•..■■••■■•■•.■.■•..••••■....3_2 3-4 DEPOSITS AND ESCROWS ......................................... 3-5 ADMINISTRATIVE SANCTIONS .................................... a. DOL debarment............. ... b. HUD sanctions ................................................................. 3-6 FALSIFICATION OF CERTIFIED PAYROLL REPORT APPENDICIES ACRONYMS AND SYMBOLS................................................... DAVIS-BACON - RELATED WEB SITES* ................. ............. HUD 4720, Project Wage Rate Sheet....................................................................... .A-3 WH-347, Payroll Form/Statement of Compliance............................................................... v IN 0 CHAPTER 1 LAWS, REGULATIONS, CONTRACTS AND RESPONSIBILITIES 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 M9&LA.Q0R LAWJ a. The gAvis-OMOMAct WAAL 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. F ost HUD construction work is not covered by the DBA itself since HUD seldom contracts. ^ ectly for construction services. Most often, if Davis-Bacon wage rates apply to a HUD project it is because of a labor provision contained in one of HUD's "Related Acts" such as the U. S. Housing Act of 1937, the National Housing Act, the Housing and Community Development Act of 1974, the National Affordable Housing Act of 1990, and the Native American Housing Assistance and Self-Determination Act of 1996. The Related Acts are often referred to as the Davis-Bacon and Related Acts or DBRa. b• T.h!a &g.01ract Work H Standard Act /!; SSO► 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 (ELBA) 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/ offices/olNlibrary.cfm) 1 -1 c' IhQ QQDe1jMd Act JAn The - Copeland Act makes it a Federal crime for anyone to require any laborer or mechanic an�c employed on a Federal or Federally.- assisted project) to kickback (i.e., give up or pay back} any part of their wages.es. The C opeland Act requires eve ry employer (contractors and subcontractors) to submit weekly certified payroll re ports (CPRs) and regulates permissible a r p y oll deductions. d. The EaIr L"or §.tj13dffAs A-qt(MAL The FLSA contains Federal minimum w rates, overtime (01D, age 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 DAL an y p ossible FLS A violations that are found on HUD ro' p sects. 1-2 O&1LM9.QN REGULAI_ The Department of Labor DAL published t } has p blished rules and instructions ' Davis--Bacon and other lab Mons concerning or laws in the code of Federal Regulations r' (CFR). These regulations can be found n Tiffs Z9 CFR Parts 1, 3, S, S and T. Pa ' the DoL establishes and u � 1 explains how publishes DBA wage determinations (aka w •provides instru age decisions} and coons on how to use the determinations. Pa • requirements f Part � describes Copeland Act q or payroll deductions and the submission of w • weekly certified payroll reports. Bart 5 covers the labor standards provisions that are in • your contract relating to Davrs- Bacon Act wage rates and the responsibilities . . p s of contractors and contracting agencies administer and enforce the provisions. Pa g g !o Part � provides for administrative roceedin enforcing Federal labor standards on construction gs coon and service contracts. Last, Part 7 sets parameters for practice before the Administrative atrve Review Board. These re ulations enforcing the laws are used as the bases for administering and enforei g . F httOL Regulations are available on-line on the World Wide Web:p://www.doI-gov/doI/aIlcfrfT'itle-29.htm 1-3 9-QNaI8UCT1Ob&QNJRAQUROV1SlON2 Each contract subject to Davis-Bacon labor standards requirements must contain labor standards clauses and a Davis-Bacon wage decision.g crsron. These documents are normally o the contract specifications. y bound into a. The labor standards clauses. T'he labor standards clauses describe the res onsibilitie of the contractor concerning Davis-Bacon wages s ges and obligate the contractor to com 1 arils clauses also provide for with the labor requirements. The labor stand remedies p in y the event of violations, including withholding ng #rom payments due to the contractor t liquidated damages to ensure the payment of wages or li q ges 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- 554, Supplements Conditions Supplementary o s to the contract for Construction, which is issued primarily for FHA multifamily housing and other construction protects 1 -2 administered by HUD; the HUD-4010, Federal Labor Standards - ds Provis' ions, which is used for CDBG and HOME projects, and the HUD-5370 Genera ' . . I Conditions of the contract for Construction or the H U D-5370-EZ (construction contracts • $1 o0,D00] which are used for Public and Indian Housing projects. ro"'n7HUED program labor standards form • s are available on-line at; www.hud-gov/offices/adm/hudclips/index.cfm b. Davis-Bacon Wage Decisions. The Davis-Bacon wage d • . g 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 frin ge benefits,ts,where prevailing) that people performing work in those classifications must be ' paid. Davis-Bacon wage decisions are established b the DGL for ' y 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 strut#ton begins, the wage decision is "locked-in" and no future modifications area lit project involved. applicable to the contract or All current Davis-Bacon wage decisions can be accessed line o - ' - n at no cost at. http:llwww.wdol.gov 1-4 R9aE.QNS1QIL1JY.QF JHE PRINQP.AL Q.QNTRACIQ . g The principal contractor(a Iso referred to as the or rime � general contractor)•�s responsible for the full compliance of all employers (the contractor, subcontractors and any lower-tier subcontractors) with the labor standards rovisions applicable P ta the project. Because of the contractual relationship between a rime contractor p 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 " rim p e contractor* will mean the principal contractor; "subcontractor' Nill 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 RESEMSIBILITYOF THE QQNTEMTAQM1tJ1STMJ0R1 The contract administrator is responsible for the ro p peradministration and enforcement of the Federal labor standards provisions on contracts covered by Davis-Bacon requirements. We use this term to represent the erso p n for persons) who will provide labor standards advice and support to you and other ' Y project principals (e.g., the owner, sponsor, architect), including providing the proper Davis--Bacon wage decision ge dec�s�on (see 2-1, The Wage Decision} and ensuring that the wage ' in 9 ge dec�s�on and contract clauses are incorporated into the contractforconstruction.The contract admini stratoralso monitors labor standards compliance (see 2-6, Compliance Reviews)eviews) by conducting interviews with construction workers at the job site and reviewing g p yroll reports, and oversees any enforcement actions that may be required. The contract administrator could be an employee or a en agent of HUD, or of a city or county or public housing agency. For HUD projects administered directly usually FHA- insured multifamily projects, the contract administrator will be • the HUD Labor Relations field staff. But many HUD-assisted projects are administered • 1 stared 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 D s Dommunity Development Block Grant (CDBG) and HOME programs. In these cases, the contract administrator will likely be local agency staff. In either case the uidan • the same. g ce for you remains essentially The DOL also has a role in monitorin g Davis-Bacon administration and enforcement. In addition, DOL has independent authority to conduct investigations. • • , tY t�gat�ons. A DAL investigator or other DAL representative may visit Davis-Bacon- g Y �s Bacon construction sites to interview construction workers or review payroll information. CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS AND PAYROLL REPORTING REQUIREMENTS WHERE TO START? Now that you know you're on a Davis-Bacon project and you know some of the legal and practical implications, what's next? SECTION I - THE BASICS 2-1 JHE.W.A.QK 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 yyage rt!gs, 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 classifications) 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 staff if you have any trouble reading the wage decision or finding the work classifications) you need. F 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 fellable 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. ffammaLM b. If you are the rime contractor, ' . p , 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 scan Act Form WH- 1321) at the job site in a place that is easily accessible to all of the construction nstruction workers employed at the project and where the wage decision and poster won't . p be destroyed by wind or rain, etc. The Employee Rights under the Davis-Bacon Act poster ' . - p ter �s available in English and Spanish on-line at HUDDIips {see address in the Appendix). pp dux}. Fto all e Employee Rights under the Davis-Bacon con Act poster(M-1321) replaces the Notice Employees. The new poster is available in English and Spanish on-line 9 p e at H U DC lips (see address in the Appendix). 2-2 AUUMONAL "1MADF2:&1xMS1F1CAUQNS ANO WAQLflAIEQ What if the work classification you need isn't on the wage decision?. g if the work classification(s) t tha you need doesn't appear on the wage decision • . . 9 , you will need to request an additional classification and wage rate. This process is usually very ' y ry simple and you'll want to start the request right away. Basically, you identify ' yf y fy the classification you need and recommend a wage rate for DOL to approve for the ro'ect. There p 1 ere are a few rules about additional classifications; you'll find these rules in the DAL regulations, Part 5, and in the labor clauses in your contract. The rules are summarized zed for you here. a• Addiffg.naL.Sdassiftation .rul Additional classifications' and wage rates can be approved if: 1. The requested classification is used by construction contractors i n the area of the project. (The area is usually defined as the coun ty where the project is l ocated). 2. The work that will be performed by the requested classification is not already performed by another classification that is already he decision.y on wage g n. ( other words, if there already is an Electrician classification and wage rate on . . 9 the wage decision you can't request another Electrician classification and rate. 3. The proposed wage rate for the requested classification "fits" with t the other wage rates already on the wage decision. (For example, the ro wage rate proposed for a 9 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.) soon.) And 4. The workers that will be employed in the added classification if it i { s known who the workers aretwill be}, or the workers' representatives, must agree with g the proposed wage rate. 2-2 b• Makinathereauest A request for additional classification and wage rate must be made in writing through the contract administrator. If the con • � tract 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 rime d , g p contractor. All you need to o is identify the work classification that is missing and recommend 9 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 at the new classification will perform.HUD E2M The HUD Labor Relations field staff will review the requested uested cl ' and wage rate to q classification g 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)g y p sects) for more information, etc. If the Labor Relations review finds that the request meets the e 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 a rovallreferral letter tier to the DAL. If the HUD Labor Relations staff doesn't think the request meets ets the rules and if agreement cant be reached on the proper classification or wage rate for th HUD L g e work described, the Labor Relations staff will not approve the request. In this case,se, 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 ou will receive a copy of the disapprovaVreferral letter to the DOL. d. 00"2c! ' The DOL will respond to HUD Labor ' Relations in writing about the additional classification and wage rate request. HUD Labor q Relations will notify you of the DOL decision in writing. If the DOL approves the request,P q st, 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 y about what classification and wage rate should be used for the work in question. You will also receive e instructions about how to ask for DOL reconsideration if ou still want to try ry to get your recommendation approved. It's always a good idea to talk to the contract administrator • • before submitting an additional classification and wage rate request. The contract administrator trator 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 ou an idea about finally d y ut what the DAL will decide. 2-3 2-3 9ERTIFIED-MIMLL You'll need to submit a weekly certified payroll report (CPR) be � ] innin g 9 with the first week that your company works on the project and for eve week afterward until , �`Y your firm has completed its work. It's always a good idea to number the payroll reports be # p Y p ginning with 1 and to clearly mark your last payroll for the project "Final." a• The easiest form to use is DOL's WH-347, Payroll. A sample co of the WH-347 is in p PY eluded in the back of this Guide. You may access a fillable version of the WH-347 on-line at HUDClips (see web address in the Appendix). Also , the contract administrator can provide a few copies of the WH-347 that ou can reproduce. Y p ce. You are not required to use Payroll form WH-3 y 47. You are welcome to use any oDthat of payroll, such as computerized formats, as long as it contains all of the in . 9 form is required on the WH-347. b• The weekly payrolls are caned 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 ou are e using another type of payroll format you may attach the certification from the back of the llvH- 347, or any other format which contains the same certification the WH language on w 347 (reverse). F OUs website has Payroll Instructions and the Pa roll form WH-347 in a " "rmat at this address: Y finable PDF www.dol.gov/whd/forms/Wh347.pdf c• is No Wgrk".12ayrQUA. "No work" payrolls may be submitted whenever there is a temporary break in your work on the project, for example, if your firm is not needed on the project right now but you will be returning to the job in a couple of week 1 p s. 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, ma wish to send ou Y y e d 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 ou number Y payrolls consecutively or if you send a note, you do not need to send "no work" pY a rolls. r' If you number your payroll reports consecutively, you do not need to submit "no work' payrolls! :AP bm�t Y d. PavrgjUevie and.2ijbMisli The prime contractorshouId review each subcontr ' payroll reports for compliance tractor's p prior to submitting the reports to the contract administrator. Remember, the prime contractor is responsible • p the full compliance of all subcontractors on the contract and will be held accountable for an wage ' due to an Y ge rest�tut�on that may be found y laborer or mechanic that is underpaid and for ' rP any liquidated damages that may be assessed for overtime violations. All of the a • payroll reports for any protect must be submitted to the contract administrator through the 9 prime contractor. An alert primp contractor that reviews subcontractor payroll submissions can d s earl r detect any misunderstandings y, prevent costly underpayments and protect itself from fin loss should underpayments occ financial occur. e• Every contractor(including eve subcontract set of their every subcontractor)must keep a complete own payrolls and other basic records such as employee a SSltts time card addresses and full s, tax records, evidence of fringe benefit payments, f protect for at least 3 P Y or a Davis-Bacon ! years after the project is completed. The rime co a complete set of all P contractor must keep P of the payrolls for every contractor (including sub le contractors} for at least 3 years after completion of the project. f• r In addition to submittin g payrolls to the contract administrator, eve contractor (including subcontractors must make � � their own cop of the payrolls other basic records available for P Y and r review or copying to any authorized representative from HUD or from DOL. 2-4 QAVM-.JJAC_ON QUINLMN.4, Before we discuss how to complete the weekly payroll • y p y oil forms, we need to review a cou ie of definitions. These defn�tlons can hel P P Y ou under stand what will be required of you: a. LabgreE or mechanig, "Laborers" and "mechanics" mean anyone who is performing construction work on the project, including rade journeymen 9 carpenters, plumbers, sheet metal workers, etc. , apprentices, and trainees and for cVVHSSA purposes, watchmen and guards. "Laborers" and "mechanics" are the two groups of workers that must be paid not less than Davis-Bacon wage rates. foreman. Foremen or supervisors that regularly s 2o°° of% their time 9 y end P more than performing construction work and do not meet th 2 below are a exclusions �n paragraph e covered "laborers" and "mechanics" for labor e standards purposes for the time spent nt performing construction work. 2. People whose duties are rim p ariiy administrative, executive or clerical are not laborers or mechanics. Examples 5 p include superintendents, office staff, timekeepers, messengers, etc. (Contact the contract administrator if you have any questions about whether a particular employee p oyee is excluded.) 2-5 b• Every person who erforms the u P work of a laborer or mechanic +s em to ed a regardless of any contractual relationship y p which may be alleged to exist between a contractor or subcontractor and such person. This mean • s that even +f there +s a contract between a contractor and a worker, the contras • contractor must make sure that the worker +s paid at least as much as the wage rate on the wage decision - ge des+s+on for the classification of work they Perform. Dote that there are no exceptions prevailing . p to the preva+ling wage requirements for relatives or for self-employed laborers and mechanics. +cs. F r more information about wo '+king subcontractors, ask. the contract admini ur HUD Labor Relations administrator or Field staff for a copy of Labor Relations Le Labor standards cum Letter LR-9�-off, compliance requirements for self-employed laborer • Labor Relations Le sand mechanics. Letters and other helpful Labor Relations publications HUD's Labor Relations s are ava+fable a# ns web site (see the list of web site addresses in the Append+' x). c• The only workers who can be aid l the wage decision P less than the wage rate on g s+on for their work classification are"a apprentices"an • approved a Pp d trainees registered +n Pp apprenticeship or training programs. Approved ro rams a registered with p 9 re those which have been re 9 th the DOL or a DOL-recognized State Apprenticeship rentices an council (SAC). Apprentices d trainees are paid wage rates in accordance wi the a pp ed rov th the wage schedule in 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. _ g • � P 9 For example, o � months. �5°/�, 6 months � year. 7D/v, etc. The percentage is applied to the journeymano •PP s wage rate. 4n Davis- Bacon projects, the percentage must be applied t pp o the journeyman's wage rate on the applicable wage decision for that craft. 1. PrQb"0i3mar)orenJ"r,!a.Ali probationary apprentice"can be aid as an apprentice pprent+ce (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. pp t+ce. 2• Pro-aimprealigg. A "pre-apprentice", that is someone who is not registered in a program and who hasn't been DOL-or SAD-Certified for robs is not considered probationary apprenticeship dered to be an "apprentice" and must be aid the P full journeyman s rate on the wage decision for the classification of work the per-form. they . I Ratl*"f apigrgntices jMd trai P nees to ioum2mme The maximum number of apprentices or trainees that you can use on the job site a rentices cannot exceed the ratio of pp or trainees to journeymen allowed in the approved r pp program. i d. FjevAWnu)&s1C129L0r yvace ratel, Prevailing wage rates are the wage rates listed on the wage decision for the project. The wage decision will list a minimum bask hourly rate of pay for each work classification. Some wage decisions include ' 9 ude fringe benefits which are usually listed as an hourly fringe rate. if the wage decision includes es a fringe benefit rate for a classification, you will need to add the fringe benefit rate . g #o the bask hourly rate unless you provide bona fide fringe benefits for ees.our employees. Y P Y 1. f!1ece:wgrh, Some employees are hired on a piece-work p bans, that is, the employees earnings are determined by a factor of work produced. For example,a D rywall Hanger's earnings may be calculated based upon the square guars feet of sh ee#rock actually hung, a Painter's earnings may u Y be based on p the number of units painted. Employers may calculate weekly earnings�ngs based upon piece rates provided the weekly earnings are sufficient to satisfy the wage rate requirement based upon actual hours, includin overtime,g any me, worked. Accurate time records must be maintained for an piece-work-- P 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 can include health insurance ' premiums, retirement contributions, life insurance, vacation and other aid leave as well as P some contributions to training funds. Fringe benefits do not include m employer a payments ents or contributions required by other Federal, State or local laws, such as the employer's s contri bution to Social Sec urity or some disability insurance payments. F te that the tots# hourl wa a rate aid Y 9 p to any laborer or mechanic(bask wa a or bask age plus fringe benefits may 9 g y be no less than the total wage rate (basic wa a or• 9 bask 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 th e wage decision,on, you will need to add the balance of the wage decision fringe benefit rate to ' 9 the bask rate paid to the k employee. For example, if the wage decision re uires q $10/hour bas rate plus $51 hour fringe benefits, you must pay no less than that total 151h [$ our) in the bask rate or basic rate plus whatever fringe benefit you may provide. You c Y P an meet this obligation in several ways: you could pay the base wage and fringe benefits as stated ted in the wage decision, or you could pay $15 in base wage with no fringe benefits,#s, or you could pay $12 bask 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 lus $6 fringe • P ge benef ts, as long as you meet the total amount. The amount of the base wage that you may b 9 y y off-set with fringe benefits is limited by certain IRS and FLSA requirements. f. Overtime hours are defined as all hours worked on the contract in excess of 40 hours in any work week. Overtime hours must be aid at no less ess than one and one- half times the regular rate of basic pay plus the straight-time rat henefits 9 e of any required fringe 2-7 g• You may make payroll deductions as ermitted b • p y DAL Regulations 29 Cl=R 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 an deduction au y other legally-permissible authorized by the employee. Deductions may also judgments � Y o be made for payments on and other financial obligations legal! imposed Y p against the employee. fR.eferdng, again, #o our exam - decision . g example above where the wage decision requiring.ge obligation ($10 g a 15 #o#at g bask wage plus $5 fringe benefits) w • 9 } as met by paying $9 base ge plus$S fringe benefits: Note that overtime rates must be based on one and one-half times the basic rate as stated on the wage decision, 9 In the above example, the employer must pay for overtime--, $15/hr �$9 basic + 6 fri $10, Y. $ fringe) plus $5 done-half of the wa decision basic rate) for a total of$2o er hour. wage p h. Lgl3atlgn You must select a work classification on thew 'age decision foreach workerbased onthe a ctual type of work he/she performed and you must a worker no less than the wage rate Y pay each g on the wage decision for that classification re ardle of their level of skill. In other words if so g ss someone is performing carpentry work on the project, they must be paid no less than the wage rate o . g n the wage decision for Carpenters even if they aren't considered by you to be full trained d 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. Ulit-glassiftati If you have employees that perform work in a work w more than one trade during week, you can pay the wage rates specified for classification in which work p each was performed only if you maintain accurate time records showing the amount of time spent in each classification on of work. If you do not maintain accurate time records, ou must a Y pay these employees the highest wage rate of all of the classifications of work p erformed. i- 112 The "site of work" is where the Davis-bacon wage rates app! . LJsuall this means the boundaries of the project. � Y y' A � Site of work can also include other adjacent or virtually adjacent property used b contra � Y a contractor or subcontractor �n the construction of the project, like a fabrication site that is dedicated exclusively, or nearly so, to the protect. SECTION Il - REPORTING REQUIREMENTS 2-5 QQMELETING A PAYRQLL REP What information has to be reported on the a roll p y farm? 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 em to - • classification (who p yee s name, his or her work 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 dhow much did they earn?), the amounts of any deductions for taxes, etc., and the net amount paid dhow much should the paycheck be made out for?). No more information than you need to know •�n order to manage your work crew and make certain they are paid properly. And, certainly, no more infarmatio n than you need to keep for IRS, Social Securi ty and o ther tax and employment p u rposes. ( For many contractors the VII � • Weekly Certified Payroll is the only Davis-Bacon you need to submit! Y - paperwork You are required to submit certified a rolls to illustrate P Y strafe and document that you have complied with the prevailing wage requirements. The ur o p p seofthecontractadministrator s review of your payrolls is to verify your compliance.p Clearer and complete payroll reports ill permit the contract administrator to complete p to reviews of your payroll reports quickly. Y a, Pr I Each payroll must identify the contractor or subcontractor's name and address the ro' f P sect name and number, and the week ending date. Indicate the week dates in the spaces is optional P provided. Numbering payrolls p but strongly recommended. b. i0k[malh2n, Effective January 18, 2009, payrolls shall not report employee addresses or full Social Security Numbers (SSNs). Instead, the first payroll on which employee appears shall in clude the employees name and an individually identifying usually the last 4 digits of the employee's SSN. Afterward, the identifying does not need to be fy g number reported unless it is necessary to distinguish between h g employees, e.g., �f two employees ave the same name. Employers (prime contractors and subcontractors) must maintain the current address and full SSN for each employee and must rovide this s Information upon request to the contracting agency or other authorized representative r r P responsible for federal labor standards ds compliance monitoring. Prime contractors may require a subcontractor's) to provide this information for the prime contractor's records. DoL has modified form WN- 347, Payroll, to accommodate these reporting requirements. P g q ements. c- Each employee must be classified s fled in accordance with the wage Y y perform. decision based on the type of work the actual) erf � . 2-9 i • The first payroll on which an apprentice y pp entice or trainee appears must be accompanied by a copy of that apprentice's or trainee's registration g ton 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 ny the first payroll on which the first apprentice or trainee appears. 2. Uit l asift „cans. For an employee that worked in a split classification,assification, make a separate entry for each classification of work performed distributing he hour work s of k to each classification, accordingly, and reflecting the rate of a . 9 pay and gross earnings for each classification. Deductions and net pa may be based u tot Y Y upon the al gross amount earned for all classifications. d• The payroll should show ONLY the regular and overtime . g ert�me hours worked on this project. Show both the daily and total weekly ours for each Y employee. if an employee performs work at job sites other than the project for which the 1 payroll is prepared, those It job" hours should not be reported on the payroll. In then • p Y e cases, you should list the employees name, classification, hours for this project only, h p 1 y, # e rate of pay and gross earnings for this project, and the gross earned for all ro'ects. Deductions p 1 tons and net pay may be based upon the employee's total earnings (for all p roj ects) for the week. e• 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 Y p p to 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. PI -w rk For any piece-work employees,to the p Y employer must compute an effective hourly rate for each employee each week based ased upon the employee's piece-work earnings for that week. To compute the effective hourly rate, divide the piece-work earnings s by the total number of hours worked, including consideration for any overtime hours. The effective hourly rate must be reflected on the certified a roil p y and this hourly rate may be no less than the wage rate (including frin a benefits if 9 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 hat the y rate is no less than the rate on the wage decision for the classification of work erform p ed. 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 q $ glhour basic plus $51hour fringe benefits, the overtime rate would be: $1 g x 1 /2 � ) + $5 = $20lhour. f Show the gross amount of wages earned ed for work performed an this project. Note- For employees with work hours and earnings on g other projects, you rray show gross wages for this project over gross earnings all projects (for example,X425 40/$754 85) and base deductions and net pay on the `all s.ro ects' earnings. p � g ?_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 �av_. Show the net amount of wages paid. i. S =M DU 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. j. 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 f%0M[!LIAbJCEJREVlEW2, 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 administrator will periodically review payrolls and related submissions, comparing the interview information to the payrolls, to ensure that the labor standards requirements have been met. You will be notified by the contract administrator if these reviews find any discrepancies or errors. . P You will be given instructions about what steps must be taken to correct any problems. a- - ' 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. The contract administrator will compare the information on---the interview forms to the corresponding payrolls to ensure that the workers are ra erl !� P Y 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 p aid 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 IYPAgAL E&ROLL EIRROR*SAND REQUIJJFaJ2 CQRJJEQJ1ON1% The following paragraphs describe common payroll errors and the corrective steps you must take. a. I If an alternate payroll format used by an em (such to er P Y 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. Mis,11na If the first payroll on which an pp employee a ears 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 P Y a roll 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 C. if the information on the payroll 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• if the payrolls show work classifications that do not appear on the pp 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 g(see 2-2}. if reclassification results in underpayment (i.e., the rate wage a reported on the p payroll is less than the rate required for the new classification), the employer will be asked . to pay wage restitution to all affected reclassified employees. see 2-8 for instructions about wage restitution.) e. if the wage rates on the payroll are less than the wage rates on the wage . . 9 g decision for the work classifications reported, the employer will be asked to pay wage restitution to all affected employees. f. A . 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 . p g g 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 p ay wage a restitution 9 to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered in an approved program must receive the journeyman's wage rate for the classification of work they performed. g. Qyertm if the employees did not receive at least time and one-half for any overtime hours worked on the project, the following will occur: I. if the project is subject to CWHSSA overtime requirements, the employer will be ask asked to pay wage restitution for all overtime hours worked on the !ro•ect. The p employer may also be liable to the United States for liquidated damages computed g p at $10 per day per violation. or, 2. if the project is not subject to CWHSSA, the employer will be notified of the P ossible FLSA overtime violations. Also, the contract administrator may refer the matter to the UoL for further review. h• 99MIDutatWi3a. 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 9 reater care. Wage restitution may be required if underpayments resulted from the errors. i• Deductig if there are any "Other" deductions that are not identified or if employee authorization isn't provided, or if there is any unusual (very hi h, or lar a number g g ) deduction activity, the employer will be asked to identify the deductions, ee rovide employee p p Y authorization or explain unusual deductions, as necessary. 2-13 HUD does not enforce or attern t to � • p provide advice on employer obligations to make deduc#ions from employee earnings for #axes or Social Securi , How . ty ever, HUD may refer to the IRS or other responsible agency copies of certified a roll re . p y ports that show wages paid in gross amounts (i.e., without tax deduction) for i#s review and a ro ac#ion, pp pnate i- If the wage decision contains frin a benefi#s but th g e payroll does not indicate how fringe benefi#s were paid (neither 4(a) nor 4 b is marked on th t } e Statement of Compliance], the employer may be asked #o submit correction certifi ed payrolls and will be required to pay wage restitution if underpayments occurred. Howev • er, �f the basic hourly rates for the employees are at least as much as the to#al wa a ra g to on the wage decision (basic hourly rate plus the fringe benefit rate , no correction is ne cessa ry. k. If the payroll Statemen#of compliance is notsi ned or is mis g sing,the employer will be asked #o submit a signed Statement of Compliance for each a roll aff . p y acted. If the Statement of Compliance is signed by a person who is not a rinci le of th p p e firm and that person has not been authorized by principle to sign, the emplo erwill be asked to r a n Y p ov�de authorization or #o resubmit the S#atemen#(s) of Com liance bearin the si n p g g ature of a principle or other authorized signatory. - If the comparison of on-site interviews to the payrolls indicates any discrepancies (for example, the emplo ee does no# a ear o Y pp n the payroll for the date of the interview), the employer will be asked to submit a corr ' payroll report. ect�on cert�fed Any and all changes to data on a submitted a roll m' re ort P Y p must be reported on a certified correction payroll. In no case will a a roll r p y eport be returned to the prime contractor or employer for revision. �-8 Where underpayments of wages have occurred, the em to er will be re . p Y qu�red to pay wage restitution to the affected employees. Wage restitution must be aid rom tI in th P P PY e full amounts due, less permissible and authorized deductions. All wa e g s paid to laborers and mechanics for work performed on the project, includin wa a restitu 9 9 ton, must be reported on a certified payroll report. a. to the Employer/Prime contractor. The contract administrator wi II notify the employer and/or prime contractor in writing of any under a ments that are fo P Y and during payroll or other reviews. The contract administrator will describe the under a p yments and provide instructions forcomputing and documenting the restitution to be aid. The rim p employer) p e contractor is allowed 3o days to correct the underpayments. Note that the rim p e contractor�s responsible to the contract administrator for ensurin that restitution i's i 9 pad i f the employer is a subcontractor, the subcontractor will usual/ make the com u rPst� Y p tat,ons and tution payments and furnish the required documentation throw h the rime contra 9 P c to r. F e contract administrator may communicate direct with a subcontracto� r when the derpayments are plainly evident and the subcontractor is coo erative, ! i p t s best 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, s, the subcontractor must ensure that the prime contractor receives a co py of the required ' red corrective documentation. _J b• Wage restitution is simply the difference between . Y 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 Ived equals the gross amount of restitution due. You may also compute wage restitution b p g Y calculating the total amount of Davis-Bacon wages earned and subtracting he g total amount of wages paid. The difference Is the amount of back wages due. The employer will be required to report the restitution c. p n paid on a correction certified payroll. The correction payroll will reflect the period of i f p time or which restitution is due (for example, Payrolls #1 through #B; or a beginning date an • g g d 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 u. 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 proper/ signed Statement of Compliance Y 9 p ance must accompany the correction payroll. HUD no longer requires the signature of the employee on the correction to a roll ' p y evidence employee receipt of restitution payment. In addition, except in the most extraordinary drnary cases, HUD no longer requires employers to submit copies of restitution checks certifi � ed, cashiers, canceled or other), or employee-signed receipts or waivers. d• CPR. The contract administrator will review the correction certified payroll to ensure that full restitution was paid. The prime contractor shall be notified d n writing of any discrepancies and will be required to make additional a ments if p y needed, documented on a correction certified payroll within 30 days. e. Umfgund xQrh 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 clue In such cases, at the end of the project the prime contractor will be required �'-15 to place in a deposit or escrow account an amount equal to the total gross . � g s amount of restitution that could not be paid because the employees 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, an amount remaining in Y g the account for unfound workers will be credited and/or forwarded b the contract administrator Y t afar to HUD. CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW ACCOUNTS, AND SANCTIONS WHAT HAPPENS WHEN THINGS GO yygoN 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 ADMINIST ATIVE REVIEW ON ABOR 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. AddUMaLsdauffigatigna and 3&gae rateq 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-t 2. 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 ' (See also 29 CFR 1.9.) p reviews. b• compliance reviews and other follow-up up enforcement actions may result in findings of underpayment. The rime goal in p r]I g every case and at every step in this process is to reach agreements about who may have been underpaid an � Y paid d how much wage restitution may be due and, of course, to promptly dery to p P Y � er restitution any underpaid workers. The contract administrator will usual/ work informal/ with to re Y Y you reach such agreements. You will have an opportunity to provide additional information to p matron 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 nd will be u g you permitted 30 days in which to correct the underpayment(s) or to request a hearing he g on matter before the DOL. The request for hearing must be made in writing through the contrac t 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 q Labor Relations. I• D 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 mode the findings y modify g based upon the materials presented. You will be notified in writing by the DoL of the results of its review. If DoL concludes the ' # violations have occurred, you will be given an opportune to correct an under opportunity y payments or to request a hearing before a DoL Administrative Law Judge 9 e (See DoL Regulations 29 DFR 5.11 (b)and 29 DFR Part 5, Rules of Practice forAdmi n istrative Proceedings.) 2. Admialstrafive RglieWjk Contractors and/or subcontractors may request a review by the Administrative Review Board of the decisions rendered b the decision(s) y DoL ALJ in the administrative hearing process. See DoL regulations 29 CFR 9 Part 7for more information about this proceeding. 3-3 YY1jEjHQLQ1_NG. The contract administrator shall cause withholding rom a due 9 payments ments to the prime contractor to ensure the payment of wages which are believed to be due and unpaid, rd, 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 h Y the withholding of contract payments for alleged wage underpayments. Withholding is considered to be serious and is not taken unless warranted. If withholding s deemed n will b notified 9 necessary, you e otified in writing. Only the amounts needed to meet the contractor's an � dlor subcontractors) liability shall be withheld :3-2 3-4 Q9PQ2JTS.AND OCR=% In every case, we attempt to complete compliance actions • p ons and resolve any disputes before the project is completed and final payments are m • P Y ode. Sometimes, corrective actions or disputes continue after completion and rovisions p 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 • . ty r 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 ac • accordance with the decision. Deposit/escrow accounts are established for one or more f o the following reasons: Remember,the rime co r p esponsible and will be held fable for an wage restitution that is due to an works y 9 y r employed in the construction of the project, including orkers employed by subcontractors and g any lower-tier subcontractors. See 1-4, Responsibility of the Principal Contra p � p Contractor, and 2-8, Restitution for Underpayment of Wages. _ d a. Where the parties have agreed to amounts of wage restitution g strtutron 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 ra er documentation p p is provided to the contract administrator, amounts correspond to the P g 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 cribed in 2-8(f) of this guide. b. Where underpayments are suspected or alleged and nd an investigation has not yet been completed. The deposit is equal to the amount of wage restitution and any i liquidated damages, if applicable, that are estimated to be due. If the final determination of wages due is less than the amount estimated and laced in the escrow scrow 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 s findin the 9 amounts due to the workers will be paid by the employer. As these workers are paid and ra er documentation p p is provided to the contract administrator, the gross amounts corresponding p g t o the documented payments are returned to the depositor. 1. if the employer is unable to make the a ments to th p Y e workers, e.g., lacks the funds necessary, the contract administrator may make y disbursements directly to the workers in the net amounts calculated by employer.the p yer. The amounts withheld from the workers for tax deduction will be returned to the employer p Dyer as payments to .vorkers are made. The employer shall be responsible for reporting and transmitting .vithhnldin gs to the Appropriate -igencies 3-:3 2. If the employer is not cooperating in the resolution the contra ' . contract administrator shalt 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(f) and 3-4(a)). If the parties do not agree and an administrative hearing is requested, . g q ested, the escrow will be maintained as explained in 3-4(c), below. F member,ifyou have anyquestions or need assista nceconcern�'ng laborstandards quirements 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 t ve 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,mages, 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 AQMINJSTEMJVUAN.QT1 Contractors and/or subcontractors that violate the labor standards ' prov�srons may face administrative sanctions imposed by HUD and/or DOL. a• Q.QL dgbarmeni. Contractors and/or subcontractors that are found by the Secretary of Labor to be in aggravated or willful violation of the labor standards ids prov�sions of the Davis--Bacon and Related Acts (DBRA) will be ineligible (debarred) '9 to participate in any DBRA or Davis-Bacon Act contracts for up to 3 ears. Debarment includes dudes the contractor or subcontractor and any firm, corporation, partnership ssociate p or on in which the contractor or subcontractor has a substantial interest. Debarment rocs p ed ings 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. HUP.2gnog HUD sanctions may include Limited Denials of Participation (LDPs), debarments and suspensions. 1 . Limited-Denial !2f Palligjl2at 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 the i , jurisdiction of issuing HUD Office. HUD regulations concerning LDP s are found at 24 CFR 24.700-24.714. f■ 2- In certain circumstances H initiate HUD may�n�#gate i#s own debarment or suspension proceedings against a contractor and/or ndlor subcontrac#or in connection with improper actions regarding Davis-Bac on obligations. For example, HUD may initiate debarment where a contractor has been ' n convic#ed for making false statements (such as false statements on certified payrolls or other prevailing wage certifications) or may initiate suspension where a p contractor has been indicted for making false statements. HUD regulations. g concerning debarment and suspension are found at 24 CFR Fart 24. 3-6 EALSLEIC&UON QF COJIF[E[2 EMOLL REPORMVMM- Contractors and/or subcontractors that are found to have willfully Ily falsif ed payroll reports (Statements of Compliance), including correction certified a r p y oll reports, may be subject to civil or criminal prosecution. Penalties may be imposed of y osed p $1,00v 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,if you have an questions or need ' any assistance concerninglabors#andards requirements help is always available. Contact the contract administrator m�n�strator for the project you're working on or the HUD Field Labor Relations staff in your area. :3-5 ACRONYMS AND SYMBOLS Y CDBG'- Community n ity Development Block Grant CFR - Dude of Federal e al Regulations CPR' certified Payroll Re Y port C11vHSSA- Contract Work Hours and Safety Standards Act DBA Davis-Bacon Act DBRA- Davis-Bacon and Related Acts R DOLE De Department ment of Labor FHA- Federal Housing Administration F LSA- Fair Labor Standards Act HUD - Housing and Urban Development (Department o lHA- indlan, ' Housing Authonty LCA- Local Contracting Agency LDP- Limited Denial of ' Part�c ipation OIT- Overtime PHA- Public Housing Agency enc g y SIT- Straight-time SAD - State Apprenticeship Coun p cfVAgency TDHE - Tribally-Designated Housing g Entity § - Section Paragraph DAVIS-BACON - RELATED WEB SITES* HUD Office of Labor Relations: www.hud-gov/offices/oir HUD Regulations: http://www.gpa.gov/fdsys/browse/collectionCfr.sction?collectionCode=CFR HUDCIips (HUD Forms and Publications): www.hud-gov/offices/adm/hudclips/index.cfm DOL Davis-Bacon and Related Acts Homepage: hftp://www.dol-govtwhd/contracts/dbra.htm DOL Regulations: http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=C FR Davis-Bacon Wage Decisions: www.wdol.gov DOL Forms: www.doI-gov/whd/programs/dbra/forms-htm *Web addresses active as of January 2012 A-2 U.S. Department of Housing Project Wage Rate Sheet and Urban Development Office of Labor Relations Project Name: Wage Decision NumbeNModiflcatlon Number: Project Number: Project County: Work � - Basic Fringe Total, laborers Classification: Hourly Hourly:, : Fein Rate BHR Benefits-: g $ Wags Rates Beneflt& Bricklayers $ Group# BHR` Total Wage Carpenters $ a Cement Masons $ Drywall Hangers $ Electricians $ Iron Workers a $ Painters Operators Fringe 89neftb: Plumbers $ Group# 8HR Total Wage Roofers $ Sheet Metal Workers $ Soft Floor Workers $ Tapers $ Tile Setters $ Truck Drivers Fringe Benefits: Other Classfficatlons Group# BHR Total Wage a Additional Classifications (HUD Form 4230-A) Work Basic Fringe Total Date of Date of Classiftcatlon Hourly � Benefits Wage Rate HUD Submission DOL Rate BHR g to DOL Approval 3 S 3 A-3 U. . Deparimrn[ of Lia)or w►.s�ir rnd 114,40 Cl in Sru i PAYROLL gar Csairsciars Opt*w ; Soo Instructions at wrws aot.00r 7 r.1my rrk,cx�a are TOt : :: i ki ro:pon.d 40 ita. 04i.x00 of avori &F.. n tarter a a ;Jyy a cuaivaty void CAWS =WI nu ntwar +\.•ait 44N1Fek.:.rviit CI Ls. io/LL,tvi AyTOR AUIREE4 FOR +r►AE.c ENCIt• G PROJECT AND LOCATiOI4 I t) 1.2J x;G ,4) DAY M+i i DATE (i) th) ►ti.+.r► •t4, /A.ar LW' r : ,ta., $ ,� LA. r Sit C1.414 rI id v.. ie • a i hi.-ro i r" 61 ale el %ARK 1C.AT.�; h (7) 6 CRuSS - WIIH. a TOTAL RATE AMOUNT HOLD/46 kiLlis. hi.jkl. E, EA,34 UA ;-A.:,,,h OF PA7 EARNED f►C.A TAIL 0 i 0 i 0 0 0 4 ■ 0 %Min U.S. Wags and item Damao Rev Doc 2008 OMB No . 1215.0 )4 Exp+res 12/31/2011 PROACT OR CONTRACT NO W) DEDuCTIO MT wAI ik TOTAL PAID OTF. R C+EDUCT)Or4i FOR WA Y ow af?.. Oft M ► Wt.. 414 nub Auttiv 1L:i i 0.1tw • J tatt ecIts $ tr..ac anuac tin parkarrsi4 sum OA f wow* Llamas ilti urd i wit* t.QR1r1 t ocAtli 1a tail b) R*11116016141012 talladaise t ofila l.4 Mi 21 C. P R $ )3,S 54,ai The Ci.ps:4iii Aa •- U b $ it 63) ►0111'/41id�IY $ •d ar/i.�+i..$.. 0■44iUiine at 41$ Fangs ak, o ShakW armiaingla cal$AbU 1i COt*4Ai rLi'Ursa rook a at Amnon* r4A tarptt! 10 es woos wadaitA forillnimo dismo ite pilt14i � wte V.S. D 014144 0014 al ► .. ! k+rnrw ►wawa .OM +res..rs o •llr`rt ..•rr* i CO,/ al poi tau to tM F ammo agency car trams fair or ik ews the ; at* wino prootct atcarriliiAM W a opal *SNomirr% it CacossAct ansuingsaasMIII pspt M 4116 UMW aM c t11al ANA Some +*+r.t'►ir+r[ 0.0a man Psi Kal ■tM /Mr+ to prow Gsweatan persaag 1.1114$ rasp kr so wet sattimatil DCL ind Moral caliracW4 agmuse (0$onne ths slOmI llde Mato ea la Sbd 01000,11 hart irC$R4$ *mil 1allla*i vr1 4$d WNW /0 10.1 P1MC Il<tuaaioara ELaiaMrt • � r .4. via a,wi$ Lirf ai. et ar o, J St 11 N c W1 j4$ $ a CiwK Lan, in‘ twiny ny bore *' 10w146 412 swathe* anoin, 4.ga 41u1:ts. 9611,610.0 and gardam asg 1* 40,114.0.141. w4 (.OV4r 4$0 ti'Y* 4$5 Vr i 41.Utan V0*gi4$0$t I V*. wisp • .i .,ri ■ ,may . 441.y iArw ■44111.1*a w 411.1 ia1i 1 W U.a :+Ma.iar[+, 464.401eig i,ilt 6tut teamuni thm b.rOwt, third Own Pa Iris A.frlco4iiinr. Warms +K►0 Haw Doss" Dogradawsid d Lam. 'bunt 113141. COHIAMilasAriltli/, kW. Z i ilJ: t 3 afar) [b f WHERE FRINGE BENEFITS ARE PAID IN CASH — Each laborer or maarnc hated in Me mows mistimed payroll has been paid, Nam* of 5.10nai.ry Fatty, (Tale) as rid on me ;besot an amount not lees than the sum at M1a applAcabie basic Mud, wage rats plus the alwo�rat of the raquired togs benefits as haled nM.i�y rr`aca Mud, tens contract, except as noted in section 4(c) below. ti This i pay or surv►ae ton ;.r rrn.r.c ..f tns ,'iersons •rn .Noybr4 D y .k.:-ontrr.:wr or 44ntrac*ar ) that rs,rrvg the parrot p nog ccmm encirg on It* l Ei►i.l aiN or % h on.., ..by �7f ar+Q ena.roy; ENO zatr of +. ;..r,kns rrhnVruy cx+ 6•4 Wciect have oar► pa.J tns iW ++rriii* earned. bbit no rebates haw t.ean be wick* serrsr 41.10 Wily Ira Or cn 10.11.411 d 16i+0 torn Ma ►: '+Ita.aar vtrc.i rwic:larl �r.swu►rrwyeli sarr D y any Nis b,an rrNA that no olick,gbali. Ra'r,r &Oin made saner Od*rCtfy t]r l'iGrr* t1 ruin v+e 14 wo,21re earned DI any person ar1»r than perrrassrws Gaauotrons as ambled in Ricp,411110r1S. Part 3 c.e C F R frup ba A) rswai by Ina inrcretarr Of Labor 'anger tot Copeland Act. $$ arnena4d (48 StaL 9441 04 sWn I oA 72 Slat ih47 Te scat 3s7 at] V S C ; 31 +.5). and o*sCnbea bolo*/ tract[ any pairws rwm* ..n*+MK tn.. cone get rr►' .grab 10 G• avDmsurd for the it3W* period are artio ceanpet• Mot wry* rats t+r,7r iii&orwrrs orretechans cottoned Moron are not lei than the • + +s *egg r s* CCalliewt4 in any yoga deterrnostaon incorporated 1n0 Me contract that VW MO forth vhsrrn *4 ■ a% ►ab:+rer or mac conies yam the *wit he p+orlcrrmed. + 7 NO any d‘.irr ant A�i trio abo.vepsnaC are dui), reg.atared in a bona kw prc:+,rarn t .streso .1174 ■ yt/14 apprent.casno agency recognized b7 tale 844er4144 Of �v..• ►� si►rt•csrsAp wr Tr.run g Undo° States [department of Labor or d no sigh recognized agency *ASS in Siate are reg.starecl rr141 tn., &Area.. of A,Airenticestup an* Trawling. UMW States Department of Labor_ •, Thad at AtnERE Frig ;,t nr rcr+T Artt 1PA40 TO APPROVED PLANS. FUNDS, OR PROGRAMS - +r► ,. : �� to the t+as.G r1.a.i1 y war jar rats* pia to 4bacn laborer or mecnaraC kited In the above selesormas4 imay,CM payments of font benefits as Sited in the cataract Ravi wen a ail be mate Wappiconate programs tor the bruit of such a R1040,014 S ..•64 as noted in fel on +i C) boo*, tC) EXCEPTIONS EXCEPTION (CRAFT) EXPLM1ATCN RE.Mww r S riAME 4.0 T a LE S++ w,T % E I ri Y3e'14L i�i r►'�L �..AT Il1rti Ati c)F r .E. r, ATEM1..ti1$ MAY J44 t CT It* CcoakACT (4 a.t�� :•1vTM •r ; r +fir TO CYv r: VF iK►P. NAL i r,:a:iEt UTkt* SEr SECTK* 10U1 uP TITLE 14 AND *CT KM 131 OF tall. 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 F 4Y' t i 1 F � P MOP Tlj%I ry EYHIBIT 61&H-5" START OF CONSTRUCTION FOR1Vi City of Fort North Community Development Block Grant(CDBG)Construction Projects START OF CONSTRUCTION (Date) Project Name: Location: Project Number: U.S. Department of Labor Wage Decision: This is to inform you that the, (Name of Company) of 3 (Address) a (City/Town) a , has started work on the above referenced ro' [State) (Zip) p sect covered by our contract with you, as of (Date) Respectfull y yours, (Name of Company) 13y (Signature) t ri tie) EYHIBIT 66H-6" CONSTRUCTION COMPLETE FORM r �. Clty Of Fort worth Community Development Block Grant CDB ( G) Funded Construction Projects CONSTRUCTION 9.0..MPLET]g Date: Project Marne: Project Location: Project Number. U.S. Department of Labor Wage Decision: This to inforn you that the: (Name of Company) of (Address) C i t Drown has terminated work on the above referenced project covered (State} (Zip) p J by our contract with you, as of Respectfully yours, (Name of Company) f3y (Signature) EYHIBIT "H 4" EEO STATEMENT STATEMENT OF POLICY CAN EQUAL EMPLOYMENT OPPORTUNITY It will be the policy of this firm to not discriminate e against any applicant for employment, or any employee, because of race, creed, color, age, se . • s g : x, or natural ongln. This firm will insure that this Policy is continually enforced with regard to employment promotion,upgrading,d • recruitment, and recruitment erno ton,transfer, advertising, lay off and termi.natio compensation, . working conditions. we will make it n' Pensatlan, tra�n�ng, and understood by all with whom we deal an employment opportunity announcements that the fore d •�n all our going is our policy. All a li employees will be judged solely on the basis of � PP cants and their skill,devotion loyalty,reliabili and int ' t"Y egn ty. Company Name S i gn ature Date EYHIBIT "H-8" PAYROLL DEDUCTION AUTHORIZATION FORi�t Payroll Deduction Authorization This is the authorization to the to deduct from my paycheck $ This is for item number. REPAYMENT OF: 1. Loan 7. Credit Union 2. Retirement S. Profit Sharing 3. Advance on Wages � ges 9. Donations to Agencies 4. Savings 10. insurance Premiums 5. Savings Bonds 11. Union Dues 6. Uniforms 12. 'This deduction is to be made: CHECK APPROPRIATE BOX One time only weekiy B i-wee kiy For weeks Date: Employee's Signature Printed or Typed Name: Project Name and Number- EYHIBIT "H-9" OFFICER APPOINTMENT FORM U. S. Department Of Housing nd Urban r an Development CERTIFICATE FROM CONTRACTOR APPOffqTNG OFFICER 0 TO SUPERVISE PAYMENT YEE NT`OF EMPLOYEES Project Name Date Location Project No. M(We) hereby certify that(I am)(we are)(the prime Contractor a sub � ( contractor) For in connection with construction of the above-mentioned Project, and that {i} (we) have a i PPo rated A.h..q. stjimature anuears below. to sunervise th a t ees e n 20�; that he/she is in a position to have set forth in the payroll docum ent full knowledge of the `acts s and in the statement of compliance require Kick--Back Statute which he/she is to ex q �by the so-ca�Ied execute with Amy) (our) full authority and a rv� ' such time as(I)(we) submit to PP a new certificate appointing some other erson for the he purposes hereinabove stated. Attest(if required): (Signature) By: (Title) _________________________ (Title) i ATE: This �:erti�tcate must he executed h i� � . of a artner�ht Y n authorized otf cc�r���a corporation, h a m p p,or the tic��e c�wnt�r end :;hall he r�xecutrtd Y ember payruil. Should the appointee he changed, _ , � pnt�r to and he submitted with the txr�t Apo a riew Certificate cate must scco m Which the new appointee c.•xecUte:4 a itatem pony the txrst payroll for ent c�r•compli��nc.•e reyufred by the Kick-Back Statute. tatute. • DALDAO-13 40-312 (6-79) EYHIBIT 661" DEED OF TRUST FORiYI NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIDE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER DEED OF TRUST Terms Date: 120 Grantor: Tarrant County Housing Partnership, Inc. a Texas non-profit corporation. Grantor's Mailing Address: 3204 Collinsworth Street, Fort Worth, Tarrant County, Tx 76107 Trustee: Vicki S. Ganske or Leann Guzman Trustee's Mailing Address: CIO City Attorney's Office 1 000 Throckmorton St. Fort Worth, Tarrant County, Tx 76102 Lender: City of Fort Worth, Texas, a Texas rp municipal corporation p Lender's Mailing Address: C/O Housing Department 1000 Throckmorton 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 e 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 p g Rule, as amended, 24 CFR Part 92 et.seq. (the "HOME Regulations") with HOME funds. Obligation Note Date: 120 Original principal amount: $117.,000.00 Borrower: Tarrant ('ountN, 11ousing Partnership. Inc.. a Texas non- rot- . P P xt corporation I7I:FI)OFTRUST -Icflp Page I CSC No. C-24714 Rev. 5-17-13 i Lender: City of Fort Worth, Texas, a Texas municipal corporation � Maturity Date: zp 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 . p ently recorded and validly existing recorded instruments other than conveyances of the surface face fee estate that affect the Property; liens described in this Deed of Trust• and taxes for the current year. For value received and to secure payment of the obligation, Grantor conveys the Property y p rty to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, b' p rty, su �ect to the Other Exceptions to Conveyance and Warranty. On a ment of the Obligation p y g 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 — I. keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency d provide q y an p rovproof of payment of same upon request by Lender; 3. defend title to the Property subject to the other Exceptions ons to Conveyance an p y ce 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 olio that — a. y 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; 17I:I;L)OF TRUST TCHI' Pace 7 CSC No. C-2-14714 I 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 ex i p ration; 7. obey all laws, ordinances, and restrictive covenants applicable to the Property; 8. keep any buildings occupied as required by the insurance policy; Y 9. if the lien of this Deed of Trust is not a first lien, pay or cause to be id all prior p 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 I. Lender may appoint in writing a substitute trustee, succeedin g g to all rights and responsibilities of Trustee. 2. If the proceeds of the obligation are used to pay any debt secured b prior liens, , Lender is subrogated to all the rights and liens of the holders of any so paid. aid. 3. Lender may apply any proceeds received under the insurance olio either to reduce p Y 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 . Y � the improvements are economically feasible, Lender will make the insurance p roceeds 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 p g Deed of Trust may, at Lender's discretion, be applied first to amounts p a Y able under this Deed of Trust and then to amounts due and payable to Lender with respect to the Obligation, to be applied g � pp 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. b P ender may erform those _ c�hIi,, ions and be reimbursed by Grantor on demand for anN, amounts so g .aid including p attorney's tees, 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. 5. If there is a default on the obligation or if Grantor fails to an erform of Grantor's p Y obligations and the default continues after any required notice of the default and the time allowed to cure, Lender may a. declare the unpaid principal balance and earned interest on the Obligation immediately due; b. direct Trustee to foreclose this lien, in which case Lender or Lender's agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and C. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on the obligation. 7. Lender may remedy any default without waiving it and may waive any default Y without waiving any prior or subsequent default. 8. If the Property is acquired by Lender by foreclosure, Grantor's right to any Y 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 immediate) prior to the immediately 9. Lender or its agents may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection giving reasonable cause for the inspection. C. Trustee's Rights and Duties If directed by Lender to foreclose this lien, Trustee will 1. either personally or by agent give notice of the foreclosure sale as required b the q Y Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the other Exceptions to Conveyance and Warranty and without representation or e warranty, express or implied, b Y p p y Trustee; 3. from the proceeds of the sale. paN,. in this order a. expenses of foreclosure. including a reasonable commission to 'I-rustee. DEED of TRUST TC H P Pace 4 CSC No. L-24714 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 lave 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 g � expenses, p 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 g y , incurred by Trustee in defense of any action or proceeding taken .against Trustee in that capacity. g p Y D. General Provisions 1. If any of the Property is sold under this Deed of Trust, Grantor must immediately surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 2. Recitals in any trustee's deed conveying the Property will be presumed to be true. 3. Proceeding under this Deed of Trust, filing suit for foreclosure or ursuin p g any other remedy will not constitute an election of remedies. 4. This lien will remain superior to liens later created even if the time of p a Y ment of all or part of the obligation is extended or part of the Property is released. 5. If any portion of the obligation cannot be lawfully secured by this Deed of Trust payments will be applied first to discharge that portion. 6. Grantor assigns to Lender all amounts payable to or received b Grantor from Y condemnation of all or part of the Property, from private sale in lieu of condemnation and from damages caused by public works or construction on or near the Property. After deducting any incurred,ncurred, 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 ll not be liable for failure to collect or to exercise diligence in collecting uch g an y amounts. Grantor will immediately give Lender notice of any actual or threatened proceedings ngs for condemnation of all or part of the Property. 7. Grantor assigns to Lender absolutely, not only as collateral, all p resent 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 I)s s g �.�.d of Trust. (grantor wi l 1 apple all rent and ether income and receipts to paN,ment of the Obligation and DEED OF TRUST TC HP.S Pa e 5 � No. C-24714 Rev. 5-17- 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 y excess. If Grantor defaults in payment of the obligation or performance of this Deed of Trust,. h Lender may terminate Grantor's license to collect rent and other income and then as Grantor's agent may y rent the Property and collect all rent and other income and receipts. Lender neither has as nor assumes any obligations as lessor or landlord with respect to any occupant of the Property. Len p der may exercise Lender's rights and remedies under this ara rah without taking p g p g possession of the Property. Lender will apply all rent and other income and receipts collected under p this paragraph first to expenses incurred in exercising Lender's rights and remedies and then ' g en to Grantor's obligations with respect to the obligation and this Deed of Trust in the order determined by Lender. Lender is not required to act under this paragra p h, 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 bankruptcy, Lender's filing a roof of claim in bankruptcy P p cy wiII 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 g , 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 an acceleration or re ' Y required or permuted prepayment, any such excess will be canceled automatically as of the acceleration or re a ment p p Y or, if already paid, credited on the principal of the debt or, if the rind al of p p the debt has been paid, refunded. This provision overrides any conflicting provisions in this g p h s and all other instruments concerning the debt. 9. In no event may this Deed of Trust secure payment of any debt tha t may not lawfully be secured by a lien on real estate or create a lien otherwise rohibi e p t d by law. 10. When the context requires, singular nouns and pronouns include the plural. 11. 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 b the successors in interest of all parties. 13. If Grantor and Borrower are not the same erson, the term Grantor includes ncludes Borrower. 14. Grantor and each surety, endorser, and guarantor of the Obligation g 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 ermitted p b law. W 15. Grantor agrc s to paN- reasonable attorney's fees, trustee's fees, and cou rt curt and Ut:F D OF T La ST TC t-t P 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 '�n 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 affecte d. p 17. The term Lender includes any mortgage servicer for Lender. 18. Grantor represents that this Deed of Trust and the Note are iven for the following owing purposes: The debt evidenced by the Note is in payment of the p ase urch rice of the p Property; the debt is secured both by the Deed of Trust and b y 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 ma y 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 tit) q e to all insurance policies on the Property including all paid but unearned p remiums. 20. Lender may declare the debt secured by this Deed of Trust immediately payable and invoke 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 rior p written consent. "Permitted transferee" means any other person controlling, controlled b g y, or under common control with Grantor. Lender shall not exercise this option if federal law as of the date of this Deed of Trust prohibits such exercise. 21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE FOLLOWING CONDITIONS AND RESTRICTIONS: The Note is the Note required in City Secretary Contract No. between e Grantor and Lender dated , 20 and has been executed and delivered in accordance with that contract (the "Contract"). The funds advanced b Lender are HOME . y funds and the Contract requires that the residential housing located on the Property d p y an constructed with a portion of the HOME funds must qualify nd remain affordable fY housing in accordance with the HOME Program and the HOME Regulations for a specified g p d 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 mmedi ately payable if all of the residential housing located on the Property is not sold to eligi ble ble homebuyers as more particularly described in the Contract and the HOME Regulations. This Iked of Trust has also been executed and delivered ursuant to the terms � p t f the DELI.]OF TRUST -1-Clip Pare 7 CSC No. C-24714 Rev. 5-17-13 Contract. Grantor agrees to perform each and eve ry obligation set forth therein and will ll not permit a default to occur thereunder. Any default in the performance of ' p Grantor s obligations under the terms of the Contract or the HOME Program or HG ' g ME Regulations shall be deemed a default in the terms of the Note and Lender may declare the debt secured by this Deed of Trust immediately payable and invoke an dies y remedies herein for default. 22. Provided that Grantor is not in default under an of the terms and conditions this y ondltlons of his Deed of Trust, the Note, or the Contract, and provided no event has . p s occurred that, with notice, passage of time, or both, will become an event of default, Grantor is entitled-to partial releases of the lien of this Deed of Trust. 23. THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. TARRANT COUNTY HOUSING PARTNERSHIP INC. Donna VanNess, President STATE OF TEXAS COUNTY OF TARRANT This instrument was acknowledged before me on 20 by Donna VanNess, the President of Tarrant County Housing Partnershi p, Inc., a Texas non-profit corporation, on behalf of said corporation. NOTARY PUBLIC, STATE OF TEXAS AFTER RECORDING RETURN TO: City of Fort worth CIO Housing and Economic Development Department 1000 Throckmorton St. Fort North, Tarrant County, TX 76102 DEED OF TRUST TCHP Pa(ye 8 CSC No. C-24714 � Rev. 5-17-13 EXHIBIT "A" 1 246 E. Jefferson Avenue; Lot 12, Block 47, Highland Park Addition an Addition to the City of Fort Worth, Tarrant County, Texas, accordin g to the Plat recorded in Volume , Page , Plat Records, Tarrant County, Texas. [)FED OF TRUST TC HP Page 9 CSC No. C-24714 Rev. 5-17-13 PROMISSORY NOTE Date: 120 Borrower: Tarrant County Housing Partnership, Inc. a Texas non-profit corporation Borrower's Mailing Address: 3204 Collinsworth Street, Fort Worth, Tarrant County, Tx 76107 Lender: City of Fort Worth, Texas, a Texas rp municipal corporation p Place for Payment: CIO Director of Housing and Economic Development Department 1000 Throckmorton St. Fort Worth, Tarrant County, TX 75102 or at any other place that Lender may designate in writing Principal Amount: ONE HUNDRED SEVENTEEN THOUSAND DOLLARS AND 1100 DOLLARS ($1 17,000.00) Loan Authority: The loan evidenced by this Note is being made pursuant to the HOME . P Investment Partnerships Program authorized under Title II of the Cranston-Gonzal z Gonzalez National Affordable Housing Act of 1 990, as amended, 42 USC 12701 et se q. ("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 ontract No y . between Borrower and Lender dated 20 and has been executed and delivered in accordance with that contract (the "Contract"). The funds advanced b y 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 ualif q y and remain affordable housing in accordance with the HOME Program and the HOME ME Regulations for a specified time period as more particular) described in the y Contract (the Affordability Period"). The loan evidenced by this Note will be in default e ault 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 p y not sold to eligible homebuyers as more particularly described in the Contract and the fiOMF Reg 7 ulations. PROMISSORY N[3T1.2 I-C lip Page I CSC No. rev. 05-17-1 3 The Principal Amount is due and payable on 20 and an interest rest Ys due and payable at maturity. Payments will be applied first to accrued interest and the remainder to reduction of the Principal Amount. Security for Payment: This Note is secured by a Deed of Trust of even date from Borrower to Vicki S. Ganske or Leann Guzman, Trustee, both of which cover the following eal property-. g 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 s Note is payable at the Place for Payment and according to the Terms of Payment. All unpaid npaid amounts are due by the Maturity Date. After maturity, Borrower promises to a an p pay y 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 erformance of it ' p s obligations . under the Contract or the HOME Program or the HOME an other Regulations or g y obligation in any instrument securing or collateral to this Note, Lender may declare the unpaid ' bat y paid princ�pal balance, earned interest, and any other amounts owed on the Note immediate) d Borrower ower and each surety, endorser, and guarantor waive all demand for ment a p y 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 c ' costs �f 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 b the Note and will be secured by any security for payment. Borrower may prepay this Note at any time before the Maturity ate without y w ut penalty or premium so long as the residential housing located on the Property and other p y any 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 n accordance with the g HOME Program and the HOME Regulations for the applicable Affordability Periodspecified 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,g , or received under law. Any interest in excess of that maximum amount will be credited on the Principal Amount or, if the Principal Amount has been paid, refunded. On an acceleration or required ' y q red or permitted prepayment. any excess interest will be canceled automatically as of the acceleration or prepayment car. if the excess interest has already been paid. credited" on the Principal Amount p mt unt ter. PROMISSORY No 'IT-1 TC HP Page CSC No. rev. 05-17-13 i if the Principal Amount has been paid, refunded. This provision overrides ' . p any conflicting provisions in this Note and all other instruments concerning the debt. Each Borrower is responsible for all obligations represented b this Note. w . p y When the context requires, singular nouns and pronouns include the plural. TARRANT COUNTY HOUSING PARTNERSHIP INC* Donna VanNess, President PROMISSORY Nt)I I: 'I'C`I1P Page 3 CSC No. rev. 05-17-I3 EXHIBIT"A" 1246 E. Jefferson Avenue; Lot 12, Block 47, Highland Park Addition � an Addition to the City of Fort Worth, Tarrant County, Texas, according he g to Plat recorded in Volume , Page , Plat Records, Tarrant County, Texas. PROMISSORY No 1 , i 0111, Paure 4 CS No. rev. 05-17-13' EYHIBIT 66J" ENVIRONMENTAL MITIGATION ACTION NOT APPLICABLE EXHIBIT "Wy SECTION 3 REPORTING REQUIREMENTS EXHIBIT '���� Section 3 Summary Report U.S.Department of Housing P s ng oMB Approval No: 2529-QQ43 Economic opportunities for and Urban Development Low--and Very Low-Income Persons (exp. 11/30/2010) Office of Fair Housing And Equal opportunity HUD Field Office: Section back of page for Public Reporting Burden statement 1.Recipient Name&Address: (street,city,state,zip) 2.Federal Identification, {grant no.} 3. Total Amount of Award: 4-Contact Parson 5.Phone- (Include area code) 6-Length of Grant: 7.Reporting Period: 8-Date Report Submitted: 9.Program Code: (Use separate sheet 10. Program Name: for each program code) Part l: Em to ment and Trainin *#Columns B,C and F are mandate fields. Include New Hires in E&F A B C D Number of Number of New °�of A to Number E F Job Category New Hires Hires that are of Staff Hours of New Hires for Section 3t Employees Number Trainees 3 Sec.3 Residents that are Sec_3 Residents and Trainees Professionals Technicians Office/Clerical Construction by Trade(List) Trade Trade Trade Trade Trade other List Total Program Codes 3=PI,NlcrRnQian Hourwr =r'ex,bie Subsidy 9 4=Homeless Assistance 8=CCBG State Administered A [;evsaoprrent, 5= IM E 9=Cih CO Programs m 2=Section 2021811 HC 0=G�eration er 6=HOME State Administered tO=Other Housing Prog 7 rams C=Mode �rat�on =CCBG Entitlement 7�at 24 [� Sr Part ll: Contracts Awarded . Construction Contracts: A. Total dollar amount of all contracts awarded on the project B. Total dollar amount of contracts awarded to Section 3 businesses C. Percentage of the total dollar amount that was awarded to Section 3 businesses a� 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 B. Total dollar amount of non-construction contracts awarded to Section 3 businesses C. Percentage of the total dollar amount that was awarded to Section 3 businesses % D. Total 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 and community development programs,to the greatest extent feasible,toward!0w-and very low-income persons,assistance for housing are recipients of government assistance for housing. (Check all that apply.) p ,particularly those who Attempted to recruit!ow-income residents through: local advertising media,signs prominent! displayed at the contracts with the community organizations and public or private agencies operating within the metropolitan arearoj r site, nonmetropolitan county)in which the Section 3 covered program or project is located,or similar methods. for Participated in a HUD program or other program which promotes the training or employment of Section 3 residents. Participated in a HUD program or other program which promotes the award of contracts to business concerns w is definition of Section 3 business concerns. hrch meet the Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered Other;describe below. project is located. 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 colle This agency may not collect this information, and you are not required#o complete this form, unless it displays a ct an of information. number. currently valid OMB Section 3 of the Housing and Urban Development Act of 1968,as amended, 12 U.S.C. t 701 u, mandates that the Department ensures that employment and other economic opportunities generated by its housing and community development assistance toward low-and very-low income persons,particularly those who are recipients of government assistance housing.p rams are directed found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients'compliance he regulations are assess the results of the Department's efforts to meet the statutory objectives of Section 3,to prepare reports to Coy with Section 3,#o recipients as self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection g s'and or invotves recipients receiving Federal financial assistance for housing and community development programs covered of information information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) ed by Section 3. The and Section 915 of the HCDA of t992 An assurance of confidentiality is not applicable to this form. The Privacy Af the Fair Housing Act Circular A-tab are not applicable The reporting requirements do not contain sensitive questions Data�s ct of t90 and OMB ++1formation is not included cumulative, personal identifying NO 1 _,r 2 H Form HUD-60002,Section 3 Summary Report,Economic Opportunities for Low-and Very Low-Income Persons. Instructions: This form is to be used to report annual 8. Program Code: Enter the a accomplishments regarding employment and other economic appropriate program code as listed at the bottom of the page. opportunities provided to low-and very low-income persons under 9. Program Name: Enter the name of HUD Program correspondin Section 3 of the Housing and Urban Development Act of 1968. The with the"Program Code'in number 8. g Section 3 regulations apply to any public and Indian housing programs that receive: (1)development assistance pursuant to Part I: Employment and Tralnin O Section 5 of the U.S.Housing ct of 1937, g pportunftles g •(2}operating assistance Column A: Contains various job categories. Professionals are pursuant to Section 9 of the U.S.Housing Act of 1937;or(3) defined as people who have s modemizativn grants pursuant to Section 14 of the U.S.Housing ct P P special knowledge of an occupation(i.e. 9 supervisors,architects,surveyors,planners,and computer of 1937 and to reclplents of housing and community development programmers). For construction assistance In excess of�ZflQ,OQQ ex nded for: 1 positions,list each trade and provide }housin 9 data in columns B through F for each trade where persons were rehabilitation(including reduction and abatement of lead-based aint P employed. The category of'Other includes occupations such as hazards);(2)housing construction;or(3)other public construction service workers. projects;and to contracts and subcontracts in excess of#704,000 Column B: (Mandatory Field) Enter the number of new hires for awarded in connection with the Section-3-covered activity. each category of workers identified in Column A in connection with Fame HUD-60002 has three parts,which are to be completed for this award. New hire refers to a person who is not on the contractor=s all programs covered by Section 3. Part I relates to employment or recipient's payroll for employment at the time of selection for the and training.The recipient has the option to determine numerical Section 3 covered award or at the time of receipt of Section 3 covered employmentitraining goals either on the basis of the number of hours assistance. worked by new hires(columns B,D,E and F). Part 11 of the form Column C: (Mandatary Field) Enter the number of Section 3 new relates to contracting,and Part III summarizes recipients'efforts to hires for each category of workers identified in Column A in comply with Section 3. connection with this award. Section 3 new hire refers to a Section 3 Recipients or contractors subject to Section 3 requirements must resident who is not on the contractor's or recipient's payroll for maintain appropriate documentation to establish that HUD financial employment at the time of selection for the Section 3 covered award or assistance for housing and community development programs were at the time of receipt of Section 3 covered assistance. directed toward low-and very low-income persons.* A recipient of Column D: Enter the Section 3 covered assistance shall submit one copy f this report to Percentage of all the staff hours of new hires py Po (Section 3 residents)in connection with this award. HUD Headquarters,Office of Fair Housing and Equal Opportunity. Column E: Enter the percentage of the total staff hours worked for Where the program providing assistance requires an annual Section 3 employees and trainees(including new hires connected performance report,this Section 3 report is to be submitted at the with this award. Include staff hours for part-time and full-time same time the program performance report is submitted. Where an positions. annual performance report is not required,this Section 3 report is to be Column F: (Mandatory Field) Enter the number of Section 3 submitted by January 10 and,if the project ends before December 31, within 10 days of project completion. Only Prime Recipients are residents that were trained in connection with this award. Part 11: Contract Opportuniti required to report to HUD. The report must Include Block accomplishments of all recipients and their Secttan 3 covered Block 1: Construction Contracts Item A: Enter the total dollar amount of all contracts awarded on the contractors and subcontractors. project/program. HUD Field Office: Enter the Field Office name. Item B: Enter the total dollar amount of contracts connected with this 1. Recipient: Enter the name and address of the recipient project/program that were awarded to Section 3 businesses. submitting this report. Item C: Enter the percentage of the total dollar amount of contracts 2. Federal Identification: Enter the number that appears on the connected with this project/program awarded to Section 3 businesses. award form(with dashes). The award may be a grant, Item D: Enter the number of Section 3 businesses receiving awards. cooperative agreement or contract. Block 2: Nan-Construction Contracts 3. Dollar Amount of Award: Enter the dollar amount,rounded to the Item A: Enter the total dollar amount of all contracts awarded on the nearest dollar,received by the recipient. project/program. 4&5. Contact Person/Phone: Enter the name and telephone number Item B: Enter the total dollar amount of contracts connected with this of the person with knowledge of the award and the recipient's project awarded to Section 3 businesses. implementation of Section 3. Item C: Enter the percentage of the total dollar amount of contracts 6. Reporting Period: Indicate the time period(months and year) connected with this project/program awarded to Section 3 businesses. this report covers. Item D: Enter the number of Section 3 businesses receiving awards. 7. Date Report Submitted: Enter the appropriate date. Part III: Summary of Efforts—Self-explanatory Submit one(1)copy of this report to the HUD Headquarters Office of Fair Housing and Equal Opportunity,at the same time the The Secretary may establish income ceilings higher or lower than 80 percent performance report is submitted to the program office. The Section 3 of the median for the area on the basis of the Secretary's findings such that report is submitted by January 10. Include only contracts executed variations are necessary because of prevailing levels of construction casts during the period specified in item 8. PHAs1IHAs are to report all or unusually high-or low-income families, Very low-income persons mean contractslsubcontracts. low-income families(including single persons)whose incomes do not * The terms"low-income persons*and very low-income persons"have Secretary ry w th adjustments or smaller+land larger area,i s determined t the arger lam+lies,except that the the same meanings given the terms in section 3(b)(2)of the United Secretary may establish income ceilings higher or lower than 50 percent of States Housing Act of 1937 Low-income persons mean families the median for the area on the basis of the Secretary's findings that such (including single persons)whose incomes do not exceed 80 percent of variations are necessary because of unusually high or low Family incomes the median income for the area,as determined by the Secretary,with adjustments for smaller and larger families.except that �y 4 F71 oaf.�d �;� •�. M&C-Council Agenda City of Fort Worth, Texas ayor M a ommunication ............................... .................., .-- .- ....................... :•. .......... _. k. .. . . Y'... . ........ ---- . ... ;.. -�.k :l . .. . i07 .. .H............... ... .... ,.............. .r .. . ... . . . - . . !l• ......... `- F . . ............ . � .......P.M. ............. ----------- ---------- . ............. .. ......... DATE: Tuesday, March 27, 2012 REFERENCE NO.: C-25531 LOG NAME: 17TCHP_HILLSIDE1MORNINGSIDE 10 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-Momingside Neighborhood, Authorize Execution of Conditional Commitments and Contracts (COUNCIL DISTRICT 8) 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; littp:ll apps.cfwnet.org/ecouncil/printmc.asp'?id=16625&print=true&DocType=Print[51112012 3:45:33 PM] 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 5. 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. DISCUSSI 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 $1,251,931.00 of HOME Investment Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing Partnership, Inc., (TCHP) submitted a response requesting $517,884.00 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$1,11 5,000.00 in HOME funds to the Community Development Council (CDC) at its meeting held on May 25, 2011. The CDC agreed with Staffs 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 1500 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. f-Qllowina 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. i. Satisfactory completion of the environmental review er 24 CFR Part 58• and P , 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. fittp:8 apps.cfwnet.org/ecouncil/printmc.asp?id=16625&print=true&DocType=Pn'nt[5/1/2 01 2 3:45.33 PM] M&C-Council Agenda This project is located in COUNCIL DISTRICT 8. The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. FUND CENTERS: 10 Fund/Account/Ce F GR76 539120--.017206531M $100.000.00 GR76. 539120 017206531 GR76 539120 017206 0 $1.008,943.10 GR76 . 539120 01720653 GR76 -.53912Q 005201.2alOO $6,056.90 R76 532120 .00520612 0. CIERTIFICATIO • Fernando Costa (6122) Jay Chapa (5864) Cynthia Garcia (8187) Information Addfteonal Fa biola Suarez (6811) ATTACHMENTIJ 1• 1 T (Public) 2• (CFW Internal) 3• (CFW Internal) littp://apps.cfwnet.org/ecouncil/pn'ntrnc.asp'?id=16625&print=true&DocType=Print[51112Q12 3:45:33 PM]