HomeMy WebLinkAboutContract 44563 CffY 82CPIITARY t)
CONTRACT Nor
COMMUNITY HOUSING DEVELOPMENT CONTRACT
This contract ("Contract") is made and entered into by and between the City of Fort
Worth (hereafter"City") and_Tarrant County Housing Partnership, Inc. (hereafter "Developer"),
a Texas non-profit corporation. City and Developer may be referred to individually as a "Party"
and jointly as "the Parties".
The Parties state as follows:
WHEREAS, City has received a grant from the United States Department of Housing and
Urban Development ("HUD") through the HOME Investment Partnerships Program ("HOME"),
Program Catalog of Federal Domestic Assistance No. 14.239, with which City desires to
promote activities that expand the supply of affordable housing and the development of
partnerships among City, local governments, local lenders, private industry, and neighborhood-
based non-profit housing organizations;
WHEREAS, the primary purpose of the HOME program pursuant to the HOME
Investment Partnerships Act at Title II of the Cranston Gonzales National Affordable Housing
Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships
Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations" or
"Regulations") is to benefit low-income citizens by providing them with affordable housing;
WHEREAS, a portion of City's HOME funds are reserved for the use of certain housing
development entities that qualify under the HOME Regulations as a Community Housing
Development organization(CHDO);
WHEREAS, Developer, a Texas non-profit corporation managed by a volunteer Board of
Directors and qualified as a CHDO according to HOME Regulations, is working to increase the
number of quality, accessible, and affordable housing units available to low and moderate
income persons;
WHEREAS, Developer requested HOME CHDO funds for an eligible project for
construction of single family houses;
WHEREAS, under this Contract, the Developer agrees to construct one single family
house located at 1307 Elmwood Fort Worth TX 76 104 in the City of Fort Worth and in
accordance with the HOME Regulations and Exhibit "A-1"- Final Elevations and Proposed
Plans and Specifications for an amount up to $114,900.00 in HOME funds;
WHEREAS, the Developer shall sell the single family house to a HOME Eligible Buyer
who will use the house as his or her Principal Residence during the Affordability Period (the
"Required Improvements" or project), as further described in Exhibit "A" — Project Summary
and Scope of Nark;
1 f 9 2013. �'('111)()('ontrac t with T�'11P' r)r 130-Elmwood�ood RE FIVFD ►IJ
Page I ol'33 OFFICIAL RECORD
CITY SECRETARY
FTP WORTIN. TX
WHEREAS, City has determined that the development of quality, accessible, and
affordable housing is needed for moderate, low, and very low-income citizens of Fort Worth;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
1. INCORPORATION OF RECITALS.
City and Developer hereby agree that the recitals set forth above are true and correct and
form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following terms shall have
the definitions ascribed to them as follows:
Affordable House means a house for which the homebuyer's monthly payment of rinci al,
p p
interest, property taxes, and insurance does not exceed 30% of the homebuyer's monthly gross
income, nor is lower than 16% of the homebuyer's monthly gross income, for an individual or
family with an income at or below 80% of Area Median Income, adjusted for family size. In the
case of new-house construction, the percentage of the homebuyer's monthly gross income shall
not exceed 32% of the homebuyer's monthly gross income.
Affordability Period means the period of time that a house purchased or constructed with
HOME Funds must remain affordable and subject to recapture provisions for the affordability
periods described in 24 CFR Part 92.254 of the HOME Regulations. The Affordability Period
begins on the date the Project status is changed to "complete" in HUD's Integrated Disbursement
Information System ("IDIS"). Required Improvements must remain affordable for the following
minimum period, as applicable:
1. Five years if the Homebuyer Assistance Program (HAP) is less than $15,000; and
2. Ten years if the HAP is $15,000 to $40,000.
Area Median Income ("AMI") means the median family income for the Fort Worth-Arlington
metropolitan statistical area as established annually by HUD.
Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity
Ordinance, Ordinance No. 20020-12-2011.
City Final Inspection means a HUD Compliance Inspection Report ("Report") completed b
p Y
the City. The Report will not be performed until after the C ity s Permits Plus system states that
CHDO Contract with T['11f fi)r 130 Elmwood
the Required Improvements have passed a final inspection by the Planning and Development
Department.
City HAP Eligibility Requirements means the eligibility of a homebuyer for closin g cost
and/or down payment assistance under City HAP guidelines as adopted by City Council.
Community Housing Development Organization (CHDO) shall be defined as set forth in 24
CFR 92.2, as amended:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual of the CHDO;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-profit entity shall not appoint more than one-third of the membershi
• p
of the organizations governing body, and board members appointed by the
for-profit entity may not appoint the remaining two-thirds of the board
members; and
(iii) The CHDO must be free to contract for goods and services from vendors of
its own choosing;
(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)
(3) or(4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)—I);
(5) Is not a public body (including the City) or an affiliate of a public body;
(6) Has among its purposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(7) Maintains accountability to low-income community residents by:
(1) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
neighborhoods, city, county or metropolitan area; for rural areas, it may be a
neighborhood or neighborhoods, town, village, county, or multi-county area
(but not the entire State); and
(ii) Providing a formal process for low-income-program beneficiaries to advise
the organization in its decisions regarding the design, siting, development, and
management of affordable housing;
(8) Has a demonstrated capacity for carrying out activities assisted with HOME funds;
(9) Has a history of serving the community within which housing to be assisted with
HOME funds is to be located; and
(10) Has at least one full-time staff person
CHDO Contract wlih T CI1P fc)r 130. Elinwood
Page 3 o f'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 (ii) Exhibit
"E-2" — Detailed Statement of Costs, containing an itemized listing of all eligible expenses
requested for reimbursement. In order for Exhibit "E-2" — Detailed Statement of Costs to be
considered complete, the following backup documentation must also be submitted as
appropriate: (a) copies of bids and invoices from subcontractors and vendors for each expense
listed on Exhibit "E-2" — Detailed Statement of Costs, along with an explanation of how the
invoice pertains to the Required Improvements, (b) copies of other documents such as cancelled
checks or wire transfers necessary to demonstrate that such amounts were actually paid, c if
relevant, final lien releases signed by the general contractors or appropriate subcontractors, and
(d) any other documentation reasonably requested by City such as BDE and/or DBE compliance,
permits, detailed subcontractor reports, etc. The final reimbursement shall not be disbursed until
all liens are released to City's satisfaction as evidenced by a title report or affidavit of lien
release. Exhibit "F"- Standard of Backup Documentation is attached.
Completion shall mean the substantial completion of the Required Improvements, as evidenced
by HED Department Minimum Acceptable Standard report, a HUD Compliance Inspection
Report, and any other applicable final inspection approval from the City..
Completion Deadline means ,
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means the deed of trust signed by Developer pursuant to Section 4.2.2. See form
in Exhibit"I"- Deed of Trust Form.
Director means the Director of the City's Housing and Economic Development Department.
Effective Bate means the date this Contract is executed by the City's Assistant City Manager.
HAP means the City's Homebuyer Assistance Program.
HAP Deed of Trust means the deed of trust signed by a HOME Eligible Buyer to secure HAP
assistance.
HOME Eligible Buyer means: (1) a homebuyer whose annual income adjusted for family size
does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical
Guidance for Determining Income and Allowances. The definition of annual income to
determine homebuyer eligibility under this Contract shall be the definition contained in 24 CFR
Part 92.203(b)(1), as amended; and (2) a homebuyer who meets City HAP Eligibility
Requirements and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance.
HOME Funds means City's HOME funds supplied by City to the Developer under the terms of
this Contract.
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Page 4(?1'33
Principal Residence means the improved property that will be occupied by the HOME Eligible
Buyer for a majority of each year throughout the Affordability Period in accordance with the
HAP guidelines as further described in the written agreement between the HOME Eligible Buyer
and the City and the HAP loan documents to be executed by the HOME Eligible Buyer.
Property means the land on which the Required Improvements shall be constructed as more
particularly described in Exhibit"A-Z"—Property Legal Description
Required Improvements mean the construction by the Developer of a single family house as
defined in Exhibit "A".
Sales Proceeds means the sales price of a property, minus construction loan repayment (other
than HOME Program funds), Developer Fee and any closing costs, or as otherwise defined in the
HOME Regulations and as shown on the settlement statement described in Section 4.9.4.
3., TERM AND EXTENSION
3.1 Term. The term of this Contract begins on the Effective Date and terminates in
two years unless terminated as provided in this Contract.
3.2 Extension. This Contract may be extended for I year upon Developer submitting
a request for an extension in writing at least 60 days before the end of the Contract term. The
request for extension shall include Developer's anticipated budget for the remaining balance, an
explanation as to why additional time is needed, and a proposed project timeline. It is
specifically understood that it is within City's sole discretion to approve or deny Developer's
request for an additional term. Any such extension must be in writing as an amendment to this
Contract.
4. DEVELOPER OBLIGATIONS.
4.1 CHDO Certification
4.1.1 Requirements Met. By the execution of this Contract, Developer certifies
that it meets all requirements set forth in 24 CFR 92.2 for being a CHDO.
4.1.2 Status Reports. Developer has a continuing, ongoing duty to provide City
with any documentation or information in regard to its status as a CHDO. Developer shall
provide City with any information and documentation regarding any change in its status as a
CHDO or as a 501(c)(3) tax exempt entity within ten business day of said change. Developer
shall provide to City an annual board roster and certification of continued status as a CHDO by
January 3oth 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
('11DO Contract with T C'11f.f{)r lull-Elmwood
Page 5 o f'33
shall result in the termination of this Contract under Section 8.4 below.
4.2. Construction of Required Improvements.
4.2.I Required Improvements. Developer shall complete the construction of the
Required Improvements as described in Exhibit "A" - Project Summary and Scope of work
upon receiving written notice to proceed from City.
4.2.2. Lien on Property. To secure City's HOME Funds in the Required
Improvements, Developer shall execute and provide to the City a promissory note and the
recorded Deed of Trust in favor of City as of the later of(1) the Effective Date or (ii) Developer
acquiring title to the Property. No funds shall be disbursed until the Deed of Trust is recorded.
Upon recording the HAP Deed of Trust, the City will release the Developer's Deed of Trust.
4.2.3 Sale of Required Improvements. Under the terms and conditions of this
Contract, Developer shall construct the Required Improvements to be sold to a HOME Eligible
Buyers).
4.2.4. Project Schedule. Developer will construct the Required Improvements
by the Completion Deadline in accordance with the schedule set forth in the attached Exhibit
"B" - Project Schedule. Developer's failure to meet the Project Schedule or the Completion
Deadline shall be an event of default. The City may, at its sole discretion, approve any changes
to the Project Schedule after Developer submits a written request for the modified Project
Schedule. If approved by the Director,the Parties shall execute a letter agreement memorializing
the change to the Contract.
4.2.5 Interim Financing. Developer shall not obtain any third party financing
for the fulfillment of its obligations in this Contract or place any liens on the Property without
the written approval of the City, and any attempt to secure financing or file a lien without City's
written approval shall result in automatic termination of this Contract.
4.3 Use of HOME Funds.
4.3.1. Budget. HOME Funds will be spent in accordance with Exhibit "C" -
Budget. Developer may increase or decrease line-item amounts in the Budget with Director's
prior written approval so long as the expenses are in compliance with 4.3.2, comply with
Exhibit "A" - Project Summary and Scope of work, and the total amount of HOME Funds is
not increased.
4.3.2. Expenditures in Compliance with HOME Re ulations. Developer shall be
reimbursed for the construction of the Required Improvements with HOME Funds only if
Developer provides Complete Documentation showing that the costs are eligible expenditures
under HOME Regulations and in compliance with the Budget and Project Schedule. Further,
Developer must comply, with project requirements in 24 CFR Part 92 Subpart F — Project
C 71DO[ otaruc't with 1 C'11P f iar 130'E l ttltil ood
Requirements, attached hereto as Exhibit "G" — Subpart F Project Requirements.
4.3.3. Reimbursement Requests. Funds will be disbursed as detailed in Exhibit
"B"- Project Schedule. In order to receive reimbursement for eligible expenses, Developer
must submit Complete Documentation to City within the Contract term. Additionally, PDF's of
site plans, drawings or designs must be included with the first request for reimbursement. City
shall not hold retainage. Instead, it shall make the final construction payment due Developer
contingent upon successful completion of the following: (1) Completion of the Required
Improvements by Developer; (2) receipt of a Housing and Economic Development Final
Inspection approval for the Required Improvements; (3) approval of Complete Documentation;
and (4) Developer is not in breach of this Contract or any other agreement Developer has with
the City. Developer Fee will be paid at closing of the sale of the house to a HOME Eligible
Buyer. The City will schedule a meeting to discuss the contractual requirements upon Contract
execution.
4.3.4. Withholding Payment. IF COMPLETE DOCUMENTATION IS NOT
RECEIVED, CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER THIS
CONTRACT. Further, if Developer is in default of any other HOME contract with the
City, City may choose, in its sole discretion, to withhold payments requested under this
Contract or any other contract with Developer.
4.4 Construction and Property Standards
4.4.1 Construction to Conform to All Applicable Laws, Building Codes and
Ordinances. All plans, specifications and construction on the Required Improvements shall (i)
conform to all applicable Federal, state and local laws, ordinances, rules and regulations,
including HOME Regulations; (11) meet all City building codes; (111) be certified as meeting the
Energy Conservation requirements as required by the State of Texas in Chapter I 1 of the
International Residence Code; (iv) for new construction, must conform to the current edition of
the Model Energy Code, published by the Council of American Building officials; and (v) pass
the Final Inspection by the City.
4.4.2 Construction Inspections. The construction of the Required Improvements
described in Section 4.2 must pass HED Department Minimum Acceptable Standard Inspection
report, a HUD Compliance Inspection Report along with any other applicable final inspection
approval from the City and any other applicable HUD-required inspections during the
construction period and at the completion of the construction of the Development.
4.4.3 Property Standards and Lead Paint Requirements.. Developer shall comply
with the requirements as it related to C ity,s property standards as well as all applicable
accessibility standards for the Required Improvements. Developer shall comply with (1) the
requirements contained in 24 CFR Part 92.251 as relates to Property Standards and Housing
Quality Standards (HQS), (ii) Accessibility Standards under 24 CFR Part 92.251 (a)(3) as
applicable, and (iii) Lead Based Paint Requirements as found in 24 CFR Part 92.355 and 24 CFR
Part 35 in the construction of the house built under this Contract.
('11DO Contract with I('11P )r 130 Elmwood
8.1.7 Civil, Criminal and Administrative Penalties_ Failure to perform all the
Contract terms may result In civil, criminal or administrative penalties, including, but not
limited to those set out in this Contract.
8.2. City Options in Event of Default. If Developer fails to cure the default within
the time stated in the notice, City at its sole option may elect any combination of the following
actions:
8.2.1. extend Developer's time to cure;
8.2.2 disallow all or part of the cost of the activity or action not in compliance;
8.2.3 pursue any other legal remedies available to City to ensure compliance
with this Contract and the Deed of Trust, including foreclosure; and/or
8.2.4 terminate this Contract.
8.3. No Funds Disbursed while in Default. Developer understands and agrees that
no HOME Funds will be paid to Developer until all defaults are cured to the satisfaction of City.
8.4. Basis for Termination.
8.4.1. Termination for Cause. City may terminate this Contract in the event of
Developer's default. Developer agrees that should City terminate this Contract for cause,
Developer shall not be considered for any other City contract involving HOME funds. Likewise,
Developer may terminate this Contract if City does not provide the HOME Funds substantially
as described in this Contract.
8.4.2 Termination for Convenience. In terminating under 24 C.F.R. 85.44, this
Contract may be terminated in whole or in part only as follows:
8.4.2.1. By City with the consent of Developer in which case the Parties
shall agree upon the termination conditions, including the effective date and in the
case of partial termination, the portion to be terminated, or
8.4.2.2. By the Developer upon written notification to City, setting forth
the reasons for such termination, the effective date, and in the case of partial
termination, the portion to be terminated. However, if, in the case of a partial
termination, City determines that the remaining portion of the Contract to be
performed or HOME Funds to be expended will not accomplish the purposes for
which the Contract was made, City may terminate the Contract.
8.4.3 Dissolution of Developer Terminates Contract. In the event Developer is
dissolved or ceases to exist, all assets acquired with HOME Funds used in the development of
the house(s) under the project including cash, interest payments from loans or otherwise, any
accounts receivable attributable to the use of HOME Funds, and any real or personal property
owned by Developer that was acquired or improved with HOME Funds shall automatically
transfer to City and this Contract shall terminate.
('111)()(*ontruct with T 711f 1br 131-Elmwood
Page 14 ol'33
8.5 Results of Termination
5.5.1. Reversion of Assets. In the event this Contract is terminated with or without
cause, all assets acquired with HOME Funds used in the development of the Required
Improvements including but not limited to plans, drawings, surveys, renderings, construction
documents and any other real or personal property owned by Developer that was acquired or
improved with HOME Funds shall belong to City and shall automatically transfer to City or to
such assignees as City may designate.
5.5.2 Waiver of Developer Fee. If this Contract terminates prior to the sale of
the Required Improvements to a HOME Eligible Buyer, the Developer waives all right and claim
to the Developer Fee.
5.5.3. Forfeiture of HOME Funds. In the event of termination, all grant funds
awarded to Developer pursuant to this Contract shall be immediately revoked, any HOME Funds
distributed to Developer shall be returned to City, and any approvals related to the Project that
is/are the subject of this Contract shall be immediately deemed revoked and canceled.
5.5.4 No Compensation After Date of Termination. In the event of termination,
Developer shall not receive any compensation for work undertaken after the date of the
termination.
5.5.5. Rights of City Not Affected. Termination shall not effect or terminate any
of the rights of City as against Developer then existing, or which may thereafter accrue because
of such default, and the foregoing provision shall be in addition to any and all other rights and
remedies available to City under the law and the Deed of Trust, including, but not limited to,
compelling Developer to complete the Required Improvements under the terms of the Contract.
Such termination does not terminate any applicable provisions of this Contract that have been
expressly noted as surviving the term or termination of the Contract.
9. SURVIVAL. Any provision of this Contract that pertains to affordability, monitoring,
record keeping and reports, along with any default and enforcement provisions necessary to
enforce such provisions, shall survive the termination of this Contract and shall be governed by
the HOME Regulations as well as the Deed of Trust.
10. REPAYMENT of HOME FUNDS. All HOME Funds are subject to repayment to City
by Developer in the event the Required Improvements do not meet the requirements as set out in
this Contract and its Exhibits. It is expressly understood that upon the Completion of Required
Improvements, any HOME Funds not reimbursed under this Contract shall remain with City.
11. GENERAL PROVISIONS
11.1. Developer Independent Contractor
Developer shall operate hereunder as an independent contractor and not as an officer,
['11D0 Contract with T(*11 ;f r)r 130'Elmwood
Page 15 o f'33
agent, servant or employee of City. Developer shall have exclusive control of, and the exclusive
right to control, the details of the work and services performed hereunder, and all persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, project participants, licensees or invitees.
11.2. Doctrine of Res ondeat Superior
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, contractors, project participants, licensees or
invitees, and nothing herein shall be construed as creating a partnership or joint enterprise
between City and Developer. It is expressly understood and agreed that no officer, member,
agent, employee, contractor, licensee or invitee of Developer, nor any project participant, is In
the paid service of City and that City does not have the legal right to control the details of the
tasks performed hereunder by Developer, its officers, members, agents, employees, contractors,
project participants, licensees or invitees.
113 Rehizious Organization. No portion of the funds received by Developer
hereunder shall be used in support of any sectarian or religious activity. In addition, there must
be no religious or membership criteria for homebuyers of the HOME-funded property, pursuant
to The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3 601 et
seq.).
11.4. Audit
11.4.1. Entities that Expend $500,000 or more in Federal Funds Per Year
All non-federal entities that expend $500,000 or more in Federal funds within one year,
regardless of the source of the Federal award, must submit to City an annual audit prepared
under specific reference to OMB Circular A-133. The audit shall cover the Developer's fiscal
years during which this Contract is in force. The audit must be prepared by an independent
certified public accountant, be completed within six months following the end of the period
being audited and be submitted to City within 30 days of its completion. Developer's audit
certification is attached hereto as Exhibit "D" —Audit Requirements. The Audit Certification
Form must be submitted to City within 60 days of the end of period being audited (Developer's
fiscal year). Non-profit entities that expend less than $500,000 a year in Federal funds are
exempt from Federal audit requirements for that year, but records must be available for review or
audit by appropriate officials of the Federal agency, City, and General Accounting office.
11.4.2. City Reserves the Right to Audit
City reserves the right to perform an audit of Developer's program operations and
finances at any time during the term of this Contract with an advanced notice of no less than 24
hours if City determines that such audit is necessary for City"s compliance with OMB Circular
A-133, and Developer shall allow access to all pertinent materials. If such audit reveals a
questioned practice or expenditure, such questions must be resolved within 15 days after notice
to Developer of such questioned practice or expenditure. If questions are not resolved within this
period, City reserves the right to withhold further funding under this and/or future contract(s)
with Developer. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT
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Page 16 o f 3 3
DEVELOPER HAS MISUSED, MISAPPLIED DR MISAPPROPRIATED ALL DR ANY
PART OF THE HOME FUNDS, DEVELOPER AGREES TO REIMBURSE CITY THE
AMOUNT OF SUCH MONIES SO MISUSED, MISAPPLIED OR MISAPPROPRIATED,
PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE
LEVIED AGAINST CITY BY HUD BECAUSE OF SUCH MISUSE, MISAPPLICATION
OR MISAPPROPRIATION.
11.5. venue
Venue for any action, whether real or asserted, at law or in equity, arising out of the
execution, performance, attempted performance or non-performance of this Contract, shall lie in
Tarrant County, Texas.
11.5 Governiniz Law
-
In any questions involving state law, for any action, whether real or asserted, at law or in
equity, arising out of the execution, performance or non-performance of this Contract, in any
issue not governed by federal law, the choice of law shall be the law from the State of Texas.
11.7 SeverabilitY.
The provisions of this Contract are severable, and, if for any reason a clause, sentence,
paragraph or other part of this Contract shall be determined to be invalid by a court or Federal or
state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
provision.
11.8. written Agreement Entire Agreement.
This written instrument and the Exhibits attached hereto, which are incorporated by
reference and made a part of this Contract for all purposes, constitutes the entire Contract by the
Parties hereto concerning the work and services to be performed under this Contract. Any prior
or contemporaneous oral or written agreement, which purports to vary the terms of this Contract,
shall be void. Any amendments to the terms of this Contract must be in writing and must be
executed by each Party to this Contract.
11.9. Paragraph Headings for Reference Only, 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 provision of this Contract.
11.1 o Compliance with All Applicable Laws and Regulations
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 1 954 (42 U.S.C. Sections 2000d et seq.)
including provisions requiring recipients of federal assistance to ensure
meaningful access by person of limited English proficiency
C111)0 Contract with T["111',fr)r 130 . Elmwood
Page 17 of 33
• The Fair Housing Act, Title VIII of the Civil Rights Act of 1 968 (42 U.S.C.
Sections 3601 et seq.)
• Executive orders 11063, 1 1246 as amended by 11375 and 12086 and as
supplemented by Department of Labor regulations 41 CFR, Part 60
• The Age Discrimination in Employment of 1967
• The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
• Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and
24 CFR Part 8 where applicable
• National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321
et seq. ("NEPA") and the related authorities listed in 24 CFR Part 58.
• The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean
Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.) and the related
Executive order 1173 8. In no event shall any amount of the assistance provided
under this Contract be utilized with respect to a facility that has given rise to a
conviction under the Clean Air Act or the Clean Water Act.
• Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.)
specifically including the provisions requiring employer verifications of legal
status of its employees
• The American with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.),
the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et
seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix
A
• Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
• Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR
Part 23, Subpart F
• Executive order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
• Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood
standards for new construction projects
• Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review
• Regulations at 24 CFR Housing and Urban Developments, Part 92 Home
Investments Partnership Program
11.11 HUD-Assisted Projects and Employment and Other Economic Opportunities
(Section 3).
If the construction of the Required Improvements will cause the creation of new
employment, training, or contracting opportunities on a contractor or subcontractor level
resulting from the expenditure of the HOME Funds, Developer shall comply with the following
and will ensure that its 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
t'HDO t ontruc-t «-1/h R 71P fi)r 130'Elmwood
Page IS o f'33
the Housing and Urban Development Act of 1958 as amended (12 U.S.C. Sections 1701 et seq.)
and its related regulations at 24 CFR Part 135, specifically 24 CFR 135.38 ("Section 3"),
requires that the following clause, shown in italics, be inserted in all covered contracts ("Section
3 Clause"):
Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
requirements of Section 3 of Housing and Urban Development Act of 1965, 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 row- 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
f-gym fiaure HE D assisted contracts.
['f ADO Contract with I[ I H'f r)r 131 Elmwood
Page 19 o f 33
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
feasible (i) 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
through which Federal assistance is provided and to such sanctions as are specified by 24 CFR
Part 13 5.
11.11.1 Section 3 Reporting.
City and Developer understand and agree that compliance with the provisions of
Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and
orders of HUD shall be a condition of the Federal financial assistance provided to the
project binding upon City and Developer, and their respective successors, assigns,
contractors and subcontractors. Failure to fulfill these requirements shall subject
Developer and its contractors and subcontractors and their respective successors and
assigns to those sanctions specified by the grant agreement through which Federal
assistance is provided and to such sanctions as are specified by 24 CFR Part 135. The
responsibilities include:
1. Implementing procedures to notify Section 3 residents and business
concerns about training, employment, and contracting opportunities generated by
Section 3 covered assistance;
2. Notifying potential contractors working on Section 3 covered projects of
their responsibilities;
4. Facilitating the training and employment of Section 3 residents and the
award of contracts to Section 3 business concerns;
5. Assisting and actively cooperating with the Department in making
contractors and subcontractors comply;
6. Refraining from entering into contracts with contractors that are in violation
of Section 3 regulations;
7. Documenting actions taken to comply with Section 3; and
C'111-0 C'onfrac•t with T['11P f r)r 1.30-Elmwood
Page 20 o f 33
8. Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
In order to comply with the Section 3 requirements, Developer must submit the
Section 3 Reporting Forms attached hereto as Exhibit "K" - Section 3 Reporting
Requirements.
11.11.1.1 Report to the City on a quarterly basis, all applicants for
employment, and all applicants for employment by
contractors and any subcontractors. This shall include
name, address, zip code, date of application, and status
(hired/not-hired) as of the date of the report.
11.11.1.2 Notify available positions to the public for open
competition, and provide documentation to City with the
quarterly report that demonstrates such open advertisement,
in the form of printout of Texas Workforce Commission
posting, copy of newspaper advertisement, copy of flyers
and listing of locations where flyers were distributed, and
the like.
11-11-1.3 Report to the City on a quarterly basis, all contracts
awarded by contractors and any subcontractors. This shall
include name of contractor and/or subcontractor, address,
zip code, and amount of award as of the date of the report.
11.12. Prohibition Against Discrimination
Developer, in the execution, performance or attempted performance of this Contract,
shall comply with all non-discrimination requirements of 24 CFR 92.350 and the ordinances
codified at Chapter 17, Article III, Division 4 — Fair Housing of the City Code. Developer may
not discriminate against any person because of race, color, sex, gender, religion, national origin,
familial status, disability or perceived disability, sexual orientation, gender identity, gender
expression, or transgender, nor will Developer permit its officers, members, agents, or
employees to engage in such discrimination.
This Contract is made and entered into with reference specifically to the ordinances
codified at Chapter 17, Article I11, Division 3 - Employment Practices of the City Code, and
Developer hereby covenants and agrees that Developer, its officers, members, agents, employees
and contractors, have fully complied with all provisions of same and that no employee, or
applicant for employment has been discriminated against under the terms of such ordinances by
either or its officers, members, agents, employees or contractors.
C'f DO Contract with R'H1",fi)r 130-F ltinvood
Page 21 o.1'33
During the performance of this Contract, Developer agrees that Developer will not
unlawfully discriminate against any employee or applicants for employment because of race,
color, sex, gender, religion, national origin, familial status, disability or perceived disability,
sexual orientation, gender identity, gender expression or transgender. Developer will take
affirmative action to ensure that applicants are hired without regard to race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual orientation,
gender identity, gender expression or transgender and that employees are treated fairly during
employment without regard to their race, color, sex, gender, religion, national origin, familial
status, disability or perceived disability, sexual orientation, gender identity, gender expression or
transgender. Such action shall include, but not be limited to, the following: employment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for training, including apprenticeship.
Developer agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination clause.
Developer will, in all solicitations or advertisements for employees placed by or on
behalf of Developer, state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or transgender.
Developer covenants that neither it nor any of its officers, members, agents, employees,
or contractors, while engaged in performing this Contract, shall, in connection with the
employment, advancement or discharge of employees or in connection with the terms, conditions
or privileges of their employment, discriminate against persons because of their age or because
of any disability or perceived disability, except on the basis of a bona fide occupational
qualification, retirement plan or statutory requirement.
Developer further covenants that neither it nor its officers, members, agents, employees,
contractors, or persons acting on their behalf, shall specify, in solicitations or advertisements for
employees to work on this Contract, a maximum age limit for such employment unless the
specified maximum age limit is based upon a bona fide occupational qualification, retirement
plan or statutory requirement.
If Developer is found to be in noncompliance with the nondiscrimination clauses of this
Contract or with any of such rules, regulations or orders, this Contract may be canceled,
terminated or suspended in whole or in part and Developer may be declared ineligible for further
government contracts in accordance with procedures authorized in Executive order 11246 of
September 24, 1965, and such other sanctions may be imposed and remedies invoked as
provided in Executive order 11246 of September 24, 1965 or by rule, regulations, or order of the
Secretary of Labor or as otherwise provided by law.
Developer will require the provisions of this Section 11.11.1 to be included in each of its
subcontracts for work performed on the project unless exempted by rules, regulations or orders
of the Secretary of Labor issued pursuant to section 204 of Executive order 11246 of September
24, 1965, so that such provisions will be binding upon each subcontractor or vendor. Developer
C'HDO Contract with 7C'1IP.fc)r 130-Elmwood
Page 22 o f 33
will take such action with respect to any subcontract or purchase order as City may direct as a
means of enforcing such provisions, including sanctions for noncompliance.
11.12.3. Developer's Contractors and ADA
Under the provisions of the Americans With Disabilities Act of 1990 ("ADA"),
Developer warrants that it and any of its contractors will not unlawfully discriminate on the basis
of disability in the provision of services to the general public, nor in the availability, terms and/or
conditions of employment for applicants for employment with, or employees of Developer or
any of its contractors. DEVELOPER WARRANTS IT WILL FULLY COMPLY WITH
ADA'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND
LOCAL LAWS CONCERNING DISABILITY AND WILL DEFEND, INDEMNIFY AND
HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED
BY THIRD PARTIES OR CONTRACTORS AGAINST CITY ARISING OUT OF
DEVELOPER'S AND/OR ITS CONTRACTORS' ALLEGED FAILURE TO COMPLY
WITH THE ABOVE-REFERENCED LAWS CONCERNING DISABILITY
DISCRIMINATION IN THE PERFORMANCE OF THIS CONTRACT.
11.13. Prohibition 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 gives the
appearance of being motivated by a desire for private gain for themselves or others,
particularly those with whom they have family, business or other ties. Developer shall
disclose to City any conflict of interest or potential conflict of interest described above,
immediately upon discovery of such.
11.13.2 No persons who are employees, agents, consultants, officers or elected
officials or appointed officials of City or of Developer who exercise or have exercised
any functions or responsibilities with respect to activities assisted with HOME funds or
who are in a position to participate in a decision-making process or gain inside
information with regard to these activities, may obtain a financial interest or benefit from
a HOME-assisted activity or have an interest in any contract, subcontract or agreement
with respect thereto, or the proceeds thereunder, either for themselves or those with
whom they have family or business ties, during their tenure or for one year thereafter,
unless they are accepted under the procedures set forth at 24 C.F.R. § 92.356.
11.13.3 Developer affirms that it will adhere to Chapter 36 of the Texas
Penal Code, which prohibits bribery and undue influence of public servants.
11.13.4. In the procurement of property and services by Developer, the
conflict of interest provisions of 24 CFR Part 55.36 and 24 CFR Part 84.42, respectively,
shall apply. In all cases not governed by those sections, the provisions of 24 CFR Part
92.356 of the HOME Regulations shall apply.
11.14. Labor Standards
('11DO Contract with TC'11f.fc)r 130. Eljyrwood
Page 23 U f'33
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. 275a et seq. and 18 U.S.C.
874) as amended, the provisions of Contract Work Hours and Safety Standards Act (40
U.S.C. 3701 et seq.) and all other applicable Federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C.
874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR
Part 3. Developer shall maintain documentation that demonstrates compliance with hour
and wage requirements of this Contract and HOME Regulations. Such documentation
shall be made available promptly to City, HUD, U.S. Department of Labor, the
Comptroller General of the United States, and any of their representatives for review
upon request.
11.14.2 Developer agrees that all contractors engaged under contract for
construction, renovation or repair work financed in whole or in part with assistance
provided under this Contract, shall comply with Federal requirements adopted by City
pertaining to such contracts and with the applicable requirements of the regulations of the
Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages
and ratio of apprentices and trainees to journey workers; provided that, if wage rates
higher than those required under these regulations are imposed by state or local law,
nothing hereunder is intended to relieve Developer of its obligation, if any, to require
payment of the higher wage. Developer shall cause or require to be inserted in full, in all
such contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
11.15. Subcontractiniz with Small and Minority Firms Women's Business
Enterprises and Labor Surplus Areas.
11.15.1 For procurement contracts $50,000.00 or larger, Developer
agrees to document a good faith effort to involve Minority Business Enterprises
and Small Business Enterprises and to provide them equal opportunity to compete
for contracts for construction, provision of professional services, purchase of
equipment and supplies and provision of other services required by City.
Developer agrees to incorporate the City's BDE Ordinance, and all amendments
or successor policies or ordinances thereto, into all contracts and subcontracts for
procurement $50,000.00 or larger, and will further require all persons or entities
with which it so contracts to document a good faith effort with said ordinance.
11.15.2 It is national policy to award a fair share of contracts to
disadvantaged business enterprises ("'DBEs""), small business enterprises
("SBEs"), minority business enterprises (`'MBEs"}, and women's business
enterprises ("WBEs"). Accordingly, affirmative steps must be taken to assure
that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of
supplies, equipment, construction and services.
11.15. other Laws
('111)()Contract with I C'111'f ear 130- Elfins ood
Page 24 ol'33
The failure to list any federal, state or city law, ordinance or regulation that is applicable
to Developer does not excuse or relieve Developer from the requirements or responsibilities in
regard to following the law, nor from the consequences or penalties for Developer's failure to
follow the law, if applicable.
11.17. Assignment
Developer shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and shall constitute a breach of this Contract.
11.18. Ri-ght to Inspect Contractor Contracts
It is agreed that City has the right to inspect contracts between Developer and any
contractor engaged in any activity in conjunction with this HOME-funded project.
11.19. Force Ma_jeure
If Developer becomes unable, either in whole or part, to fulfill its obligations under this
Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public
enemies, wars, blockades, insurrections, riots, epidemics, earthquakes, fires, floods, restraints or
prohibitions by any court, board, department, commission or agency of the United States or of
any States, civil disturbances, or explosions, or some other reason beyond such Developer's
control (collectively, "Force Maj eure Event"), the obligations so affected by such Force Maj eure
Event will be suspended only during the continuance of such event. Developer will give City
written notice of the existence, extent and nature of the Force Maj eure Event as soon as
reasonably possible after the occurrence of the event. Developer will use commercially
reasonable efforts to remedy its inability to perform as soon as possible. Failure to give notice
will result in the continuance of the Developer's obligation regardless of the extent of any
existing Force Majeure Event.
11.20 HOME Requirements. Developer agrees to comply with all
requirements of the HOME Program as stated in 24 CFR Part 92, including, but not limited to
the following:
1 1.20.1 Environmental Review. HOME Funds will not be paid, and costs
cannot be incurred until City has conducted and completed an environmental review of
the proposed Project site as required under 24 CFR Part 58. The environmental review
may result in a decision to proceed with, modify, or cancel the project. Further,
Developer will not undertake or commit any funds to physical or choice limiting actions,
including property acquisition, demolition, movement, rehabilitation, conversion, repair
or construction prior to the environmental clearance, and any violation of this provision
will result in the denial of any funds under this Contract.
1 1.20.1.1 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.
('11DO Contract with 7C'11PJ6r 130'Elmwood
Page 25 ol'33
11.20.2 Contract Not Constituting Commitment of Funds,or Site Approval.
Notwithstanding any provision of this Contract, the Parties agree and acknowledge that
this Contract does not constitute a commitment of funds or site approval, and that such
commitment of funds or approval may occur only upon satisfactory completion of
environmental review and receipt by City of an authorization to use grant funds from
HUD under 24 CFR Part 55.
11.20.3 Compliance with the Uniform Relocation Act. Developer shall
comply with the relocation requirements of 24 CFR Part 92.353 and all other applicable
Federal and state laws and city ordinances and requirements.
1 1.20.4 Compliance with Davis-Bacon. Developer will comply with the Davis-Bacon Act
as described on Exhibit"H"—Davis Bacon Requirements of this Contract. In order to
monitor for compliance, Developer shall provide City access to employee payrolls, contractor
and subcontractor payrolls and other wage information for persons performing construction of
the Required Improvements. In addition, Developer shall ensure that City will have access to
employees, contractors and subcontractors and their employees in order to conduct onsite
interviews with laborers and mechanics. Additional requirements and forms that should be used
to comply with this section are in the following exhibits: Exhibit"H-1"- Wage Determination;
Exhibit "H-2"- Contractor Information Form; Exhibit"H-3_- Subcontractor Information Form;
Exhibit 11H-4"—HUD 4010 Labor Standard Provisions; Exhibit"H-5 —Labor Relations Guide;
Exhibit "H-6"— Start of Construction Form; Exhibit"H-7"—Construction Complete Form;
Exhibit "H-8"—EEO Statement; Exhibit"H-9"—Payroll Deduction Authorization Form; and
Exhibit"H-10"—Officer Appointment Form
11.24.5 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 - 84.45.
11.20.6 Cost Principles/Cost Reasonableness. Developer shall administer
their use of HOME Funds in compliance with OMB Circular A-122, "Cost Principles for
Non-Profit Organizations", as amended from time to time. The allowability of costs
incurred for performance rendered shall be determined in accordance with OMB Circular
A-122, as supplements by the provisions of this Contract.
12. INDEMNIFICATION AND RELEASE
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER
['11D0 Contract with T C 611P.f car 131-Elmwood
Page 26 ol'33
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY; AND DEVELOPER HEREBY
ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS,
AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS
FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE
PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN
PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER
LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND
HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE
OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN
CONNECTION WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS,
MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR C'ONC'URRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS AND
SUBCONTRACTORS TO INCLUDE IN THEIR C'ONTRAC'TS AND SUBCONTRACTS
C'HISO Contract ii-rth T C'HP.fbr 130-Elmwood
Page 2 7 of 33
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME FORM AS ABOVE.
13. WAIVER OF IMMUNITY BY DEVELOPER
If Developer, as a charitable or nonprofit organization, has or claims an immunity or
exemption (statutory or otherwise) from and against liability for damages or injury, including
death, to persons or property, Developer hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
14. INSURANCE AND BONDING
Developer will maintain coverage in the form of insurance or bond in the amount of
$114,900.00 to insure against loss from the fraud, theft or dishonesty of any of Developer's
officers, agents, trustees, directors or employees. The proceeds of such insurance or bond shall
be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct.
To effectuate such reimbursement, such fidelity coverage shall include a rider stating that
reimbursement for any loss or losses shall name the City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 days after the
Effective Date, certificates of insurance as proof that it has secured and paid for policies of
commercial insurance as specified herein. If City has not received such certificates as set forth
herein, Developer shall be in default of the Contract and City may at its option, terminate the
Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract. Developer
shall maintain, or require its general contractor to maintain, the following coverage and limits
thereof:
Commercial General Liability (CGL) Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liability Insurance
$l,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
C'11D0 Contract with T(*IIP.f i)r 130'Elnmpocl
Page 28 of 33
shall be the primary responding insurance policy versus a personal auto insurance policy if or
when in the course of Developer's business as contracted herein.
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 any and all projects
including but not limited to construction, demolition, and rehabilitation. Developer or its
contractors shall maintain coverage, if applicable. In the event the respective contractors
do not maintain coverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
frequently than once every 12 months, and Developer shall revise such amounts within 30 days
following notice to Developer of such requirements.
Developer will submit to City documentation that it, and its general contractor, has obtained
insurance coverage and has executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include employees,
officers, agents, and volunteers of City.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request certificate(s) of insurance shall not be construed as a
waiver of such requirement or as a waiver of the insurance requirements themselves.
Insurers of Developer's insurance policies shall be licensed to do business in the state of Texas
by the Department of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and
each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurance industry standard rating otherwise approved by City.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise
approved by City.
['HISO Contract i0t h 1['1 H'lbr 130'El tinvorxl
Page 29(?1'33
In the event there are any local, federal or other regulatory insurance or bonding requirements for
the project, and such requirements exceed those specified herein, the former shall prevail.
Developer shall require its contractors to maintain applicable insurance coverage, limits, and
other insurance requirements as those specified herein; and, Developer shall require its
contractors to provide Developer with certificate(s) of insurance documenting such coverage.
Also, Developer shall require its contractors to have City and Developer endorsed as additional
insureds (as their interest may appear) on their respective insurance policies.
Directors and Officers Liability coverage shall be in force and may be provided on a claim made
basis. This coverage may also be referred to as Management Liability, and shall protect the
insured against claims arising out of alleged errors in judgment, breaches of duty and wrongful
acts arising out of their organizational duties. Coverage shall protect not only the entity, but all
past, present and future directors, officers, trustees, employees, volunteers and committee
members.
Developer shall require its builder to maintain builders risk insurance at the value of the
construction unless covered by the Developer.
15. CERTIFICATION REGARDING LOBBYING
The undersigned representative of Developer hereby certifies, to the best of his or her
knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on behalf of
Developer, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan or cooperative agreement.
If any funds other than federally appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, member of Congress in connection with this Federal contract, grant,
loan or cooperative agreement, Developer shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," under its instructions.
This certification is a material representation of fact upon which reliance was
placed when this Contract was made or entered into. Submission of this
certificate is a prerequisite for making or entering into this Contract imposed by
31 U.S.C. Section 1352. Any person who fails to file the required certification
shall be subject to a civil penalty of not less than $14,000.00 and not more than
$100.000.40 for each such failure.
C'11D0 Contract with T('111,1br 130 Elmwood
Page 30 o f'33
Developer shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
16. LITIGATION AND CLAIMS
Developer shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Developer in conjunction with this
Contract or the project. Developer shall furnish immediately to City copies of all pertinent
papers received by Developer with respect to such action or claim. Developer shall provide a
notice to City within 10 days upon filing under any bankruptcy or financial insolvency provision
of law.
17. NOTICE
All notices required or permitted by this Contract must be in writing and are deemed
delivered on the earlier date of the date actually received or the third day following (1) deposit in
a United States Postal Service post office or receptacle; (ii) with proper postage, certified mail
return receipt requested; and (iii) addressed to the other Party at the address set out below or at
such other address as the receiving Party designates by proper notice to the sending Party.
City.
City Manager's Office
1000 Throckmorton Street
Fort Worth, TX 76102
Copy to:
City Attorney's office
1000 Throckmorton Street
Fort Worth, TX 76102
Copy to:
Director of Housing and Economic Development
1000 Throckmorton Street
Fort Worth, TX 76102
President of Tarrant County Housim4 Partnership,_Inc.
3204 Collinsworth Street
Fort Worth, TX 76107
18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO C'ONTRAS'T
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motion, resolution or action passed or taken, to enter into this Contract
and to perform the responsibilities herein required.
CHDO Contract with T('t1I'fr)r 130. Elmwood
Page 31 o f'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 e Parties reto have executed this Contract in Fort
Worth, Tarrant County, Texas, this day of , 2013.
On;,0"-",i L
100 01% ti
ATTE T: � " OF FORT W[]RTH
� o
a
y-�
C ty Secretary 10 OcTerkando Cost , As 'stant City Manager
M&C: CPO 43
�' /� •
Date: � � � 0000°00
C rlq4
r V'4nl1 ��'
AP OVED AS TO FORM AND LEGALITY:
kss r istant City Attorne
TARRANT COUNTY HOUSING
PARTNERSHIP, INC.
By:
Do VanN ss, Pres' nt
Date: 6110113
('111)()Contrac t wlih 1('11P br 131-Elmwood rFTs CIAL RECORD
Page 32()133 SECRETARY
WORTH, T X
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-2"- Contractor Information Form
Exhibit "H-3-- Subcontractor Information Form
Exhibit"H-4"—HUD 4010 Labor Standard Provisions
Exhibit"H-5 —Labor Relations Guide
Exhibit "H-6"— Start of Construction Form
Exhibit"H-7"—Construction Complete Form
Exhibit"H-8"—EEO Statement
Exhibit"H-9"—Payroll Deduction Authorization Form
Exhibit"H-10"—Officer Appointment Form
Exhibit"I"- Deed of Trust Form
Exhibit"J"- Environmental Mitigation Action
Exhibit"K"- Section 3 Reporting Requirements
['HDO Contract ti lth TCH ;for 130'Elmwood
Page 33of33
f
EXHIBIT "A"
PROJECT SUMMARY- SCOPE OF WORK
1307 ELMWOOD
DESCRIPTION:
Developer will construct a 1376 square foot, 3 bedrooms and 2 bathroom single-family g y home on a lot
size of approximately 6,000 (range) square feet. Construction will include a one car
detached garage.
Fencing will be located at the rear and side yards. Landscaping will include front yard.
The construction shall contain the following accessibility requirements
The following appliances and related amenities will be included in the sale of the house•
■ Ceiling Fan(s) in 3 BR, 1 LR.
■ Washer and Dryer 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
p
• 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").
C'HDO Funds -Exhibits
EXHIBIT 66A.1"
FINAL ELEVATIONS AND PROPOSED PLANS AND SPECIFICATIONS
CHDO Funds -Exhibits
Floyd lap
sidri
ti. a oa.+
4.00-1 FRONT ELEVATION
,,C =1- Q'
74' ,vd, Irr•
] /7. 4.a rn•
1 ' nme.�.,
4.00-2 SIDE ELEVATION
4• _ Q•
ollnit■ Atir
4.00-3 SIDEELEVATION
/4- Q_
law.d filer
. .7w _
Had lap skiing
3 1/2. Hord trim
4.00-4 REAR ELEVATION
Word Mktg.
Nord pl.
Nardi lop oking
3 1/2 Hard trip
7 1/4• Fled trim
3 1/2" Hord trim
-Hirdi 9
sr di Firs
Hord plank
Hord lop :king
3 1 i2` Fiord trim
ER\
2
giEt.
110
REVISIONS
4.00
PhgE OF PAM
Mat Location
From To
Extra,.Inrg Room
2 Carr. Bedroom
3 Cardin Finley
4 Ya.lr Mrfoan ace.
5 MMosta Bedroom Bathroom
E Carrtdlr Boa room
Corridor. Mesta Ballroom
s B.�r asset
I Landry Pantry
to Extari r Caro"
1 t Extrlar Grad s
12 8rtoan ace.
Clear. leaded
9.1
PAGE A
DOORFRAMEMARDWARE SCHEDULE
Dow So. Type
HARDWARE SCHEDULE
Thermal Cualltire Pat Finish 'Determined by Wider.. Furnish Each Door Leaf With Hardware
Scheduled Al Hardware Shill Comply With TAS.
1 `a tit!
Face : I ! 1 1 1 1 I g l 11 11 �.0
A 5 3'-0' E'-ii 1 3/4" Now BBC Nest 'Crafftsnat Cd3 GdL wctlon' No 6D6stained wood NI Oak stated 1 0.R2 20 4 of 0.342
B S 2'-8' 6'-8 t 3/4' Na. SC Rol. penal Pahl rood Pant 3 n/o n/o n/o n/o
B 5 2'-r 6'-6' 1 3/4' Nate SC Rama pone) Pant wood Pahl 3 n/a n/a n/a n/o
B S 2'-8' er-r 1 3/4' Nona SC, Rained pawl Point wood Pahl 3 n/o n/o n/o n/o
B 5 2'--6' 6'-8' 1 3/4" Nate SC Wool Poled Paint Wool Pont 2 n/o n/o n/o n/o
6 5 2'--6' 6'-,6' 1 3/4' More Ste Rawl Pori Pala Mood Pant 2 n/a n/a n/a n/a
B 5 2'-r fi -r 1 3/4" Na. SC, Baled Pond Paint Wood Pont 2 n/o n/o n/o n/o
Pr. 5'-0 6'-8' 1 3/6" Nate SC, Woad Noel Pant 'loci Pont 6 n/o n/o n/o n/o
C Pr. 5-a' ft-6' 1 3/8' Nana SC, Raided Paw Pant wood Paint 5 n/a n/o n/a n/a
0 5 3'-fi 6'-a' 1 3/4' Nana k.Aa1.d fbaer}oa. Point wood Point 5 n/o n/o n/o n/o
E N/A fr-cr 7'-A 1 3/r Nate Sectional Comp Door Pre-FhMthed Wood Pant_ 4 n/o n/o n/o n/o
B S 2'-6' fr-a' 1 3/4' Nano SC, SC, Robed paPaint Wood Pant 3 n/a n/a n/a n/o
PACff ■ RILE 0 MOOD FACE E
GLAZING SCHEDULE
Mink ■1W NMit 'flies Type Feuer Yottrlr From FOOL gals So s/Urdl 1f Mrye 00CC Woke Maier
Type/Cake %dn., (burr] Moo to
A 7-0' (-Cr 5iri.-Fkrti. Pc* Carposttl+ Pre-FTn tit. 2 5/0 0.44 max 0,36 men 24.0001 Protiid.los - E Coating
5 2'-0' e'-0' Sit,4-i erg Co pnit. Pr. -fin, whoa 2 5/8' 0.44 max 0.36 maa 1200sf Prow. Low - E Coating C 3' -0' r-d' Slops-lf xte Composite Pr.-. into 2 5/6' 0.44 oak 0.33 moo 6_OOr0 Fronde Lots - E Coolish -
0 "3'-0' 7-0' Sk.gle-P +g. triple trait Comp.* Pre-. *Rs 2 5/8' 0,44 mar 0.38 moo 36.0301 Pravid. Loa E Caatlrg
1. wily Rauph C4o04g tern20so wRft Mlarrfax,rr.
Z Rsir Ta Ooa Schadul. 7 03 k 7 00 For Glaring In Dann.
1 f"tid Ally Aclud 5 OP'wge Prior To FA-lootae++
4- Al floss Slid B. Low E Tlpe
4. 4
f Central. wily
pa RC 9310.11:
mil.
Imo-- Might: 24' dear k
/,� min apenitq t kk,
`f✓ 20' dear v. min.
oleos area of
3sq. ftadall
5. Window Mioiuk>ettrr Shal Prat. Cat6oa Wort
6. Co Co pllanca W. 2001 (CCC..
lfktdora k Skyke a Sind Bea Label*
lf/ 7J' .Aes As Determined By the NFJtC.
4 4
4> f• •
botaom locatlore
ki M A f+M (■ MARK MAIM D
8ET NO. 1
4
7
10 SET No. 4 1) As supplied with door
11
t2 BET NO. 8 1) Lock set-Schlage A Series, Athens Lever
3) Sotto
1) Floor stop
1 Entrance lock, double cylinder
1 Door Viewer
1 Threshold
1 Weatherstrip kit
3) Butts
SET NO. 5 1) Privacy set-Schloge A Series, Athens Lever
3) Boils
1) Floor slop
SET NO. II 1) Paosogo set-Schloge A Series, Athens Leer
3) Butts
1) Floor stop
SET NO.8 2) Dummy set-Schlage D Series, Athens Lever
6) Butts
2) Boil catch
GLASS TYPE SCHEDULE
pn.a Safety Clary
• may Tinted. Mnealed insiiat4rtq So.s Oa, a coating
Cray Tntad, Safety ktrtatirg pass .A. a coatng
• Blc dt SixreirU IreadiatIng So.s
(� Clear 0111 Proof Qom
• near n.4otd Safety Qaa.
ERN
2 a
§611
RI I
0 1
ota
I
Ai
REVISIONS
7.00
11
I I
I1
I I
I1
I I
1
r-r J
,,._ 10 .
Porte
Ctrr
-
I 4.1
l
0-2•
ai
0
Motet
roc
I
5-'s3' j
f
3 -3 * r-43' 1 ' 1 611 P°'try
0
0
r-r - 4'-1 • -
5.00-1 FLOOR PLAN
01
-1
7r 4.d-1
td-1 ir►
T 01a� d
04
llviig-Dining
a
Pert,
4'-fr 0- 0
try
,•—r - r—r J r—r J ,'—r
.77
Caloiaol
eoord
i *fret htr
r-34
Z
GROSS BLDG, AREA 1376 SC). 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. Dimeneions ore to center of stud or
structure unless otherwise noted.
2 -I rndlcatee partition types
refer to drawing page 4.01.
Ir
5.00-2 GARAGE PLAN
1 /4•-r-0"
ER\
2 a
110
_I
�aw g
REVISIONS
5.00
ANE CF�Af€S
EXHIBIT 66A-2"
LEGAL DESCRIPTION
Highland Park Addition — Ft Wth Blk 54 Lot 24
('HDO Funds -Exhibits
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1307 Elmwood
Phase Activity Beginning Week — subject to
weather permitting
PHASE I ACTIVITIES: Contract signed May 13
Lot Acquisition/Preparation May 2O
(Demolition)
Plumbing
August 12
Foundation
August 19
PHASE I DEADLINE:
August 23 1st Payment 34
$ ,300
PHASE II ACTIVIITES: Framing August 26
Roofing September 2
Insultation September 9
Siding/Brick September 16
Top-out Plumbing, Electrical, HVAC September 23
PHASE II DEADLINE: 2 na Pa
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 Pa
November 8 Payment $289500
PHASE IV ACTIVIITES: Landscape, Paving November I I
Flooring November 18
Appliances, Interior trim-out/finish November 25
PHASE IV DEADLINE:
November 29 Construction Final Payment $139600
CONSTRUCTION TOTAL $1149300
DEVELOPER FEE Paid at time of home sale to HOME $119430
Eli ible Buyer
*Developer will be reimbursed for eligible expenses onlN. The amounts are estimates and are sub'
1 ect to
c:han I
t 111)() 1 LIMIS -
Exhibit C
Budget
BUDGET—1307 Elmwood
Total Cost: $ —1141900
Project HOME Funds Awarded: $_1 14,900
Operating Funds Awarded: $
TOTAL AWARDED FUNDS: $_114,900
* Please note that all funding will made on a reimbursable basis only.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME $ OTHER $ SOURCES OF TOTAL
FUNDS 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
5. Site Preparation 31100 3 100
Construction Cost 991P200 99 200
7. Fence 4,300 4300
8. Landscape 2 100 2 10
9. Contingency
' , 0
10. Appraisal 475 Proceeds of Sale 475
11. Architect& Engineering Fees 2,500 2 50
o
12. Construction Management Fee 1
Developer Fee
13. Construction Loan Interest
14. Property Survey 500 500
15. Legal Fees 250 Proceeds of Sale 250
16. Real Estate Fees 41P680 Proceeds of Sale 4.,680
-17. Utility Hookup/Impact Fees 3,200 3 200
18. Title & Recording Fees 780 Proceeds of Sale 780
19. Program Related Expenses 61P250 CHDO Operating Funds 6 250
O. Construction Management
21, Bond Fees
Total Development Cost(Total of 114,900 12,435 127.335
items 4—21) LI Total Project Cost 1140900 121435 1271335
C ADO Funds -Exhibits
EXHIBIT "D"
AUDIT REQUIREMENTS
• Pages 1-2: Summary of Audit Requirements
• Page 3: Single Audit Report Checklist
• Page 4: Audit Certification Form
C.'HDO Funds -Exhibits
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards Cit from
( y of Fort Worth and other funding
sources) during their fiscal years shall obtain either an annual single audit or a program
g p gram specific audit.
Organizations may have a program specific audit in accordance with OMB Circular A-13 3, or other standard
set forth in the Contract if applicable, if they expended funds for only
y one federal program as listed in the
Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than han one federal program, a
single audit is required. The audited time period is the organization's fiscal year, and not the City of Fort W orth s funding period.
The audit shall be conducted by a certified public accountant (CPA) that is licensed at the time of the audit
by the appropriate regulatory body. The CPA shall meet all of the e
g neral standards concerning
qualifications, independence, due professional care and quality control as required d by government Auditing
Standards, including the requirements for continuing professional education an
g p d external peer reviews.
Auditor selection must adhere to federal procurement requirements.
A separate supplementary schedule of revenues, expenditures and changes in
p g fund balance for each City
of Fort Worth contract is no longer required. The Schedule of Expenditures of Federal ederal Awards should list
City of Fort Worth 's contract numbers, the total expended for each individual federal ederal program, and the
CFDA number (OMB A-13 3 § .3 10).
The independent auditor's report should include all of the relevant items listed
steel on the Audit Report
Checklist."Additional guidance on the conduct and reportin of these audits is coat '
g contained �n the latest issuance
of the following publications:
Government Auditing Standards issued by the Comptroller General of the United States 2003
OMB Circular A-133 as revised 6130197 and amended June 2003
OMB Circular A-133 Compliance Supplement
AICPA's Statement of Position 98-3, "Audits of States, Local Governments and Not-for-Profit}� or Profit Organizations
Receiving Federal Awards
Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations
AICPA's Audit Risk Alert "State and Local Governmental Developments"
Government Auditing Standards by the Texas Department ofHousing and Community A.f.f'airs for Properties
Receiving Low Income Housing Tax Credits
All organizations that receive a City of Fort Worth award must submit the rovide
p d Audit Certification Form
which certifies whether you are subject to a single/pro ram audit. Organizations '
g g s recelving federal awards
from the City of Fort Worth who are not required to have an audit shall certify in writing to the agency.
The organization's Chief Executive Officer or Chief Financial officer shall m ake the certification cat�on w�thi
n
60 days of the end of the organization's fiscal year in the year that the project was completed.
The following items should be submitted to the City of Fort Worth Housing Economic g an conom�c Development
Department within the required timeframe:
f)ue 60 days after organization's fiscal year end in the vear that the Prolect ",as co leted: (required for all
subrec i P ients
Completed Audit Certification Form
CHDO Funds -Exhibits
I
Due within the earlier of 30 days after receipt of the auditor's re ort or nine months after the n
eriod.
e d of the audit
Two copies of the entire audit report issued by the CPA
Two copies of any management letter issued by the CPA in con'unction with the audit report
Two J p rt
,
wo copies of management�s comments on all findings, recommendations & uestion
q ed
costs contained in the audit report and management letter, including a detailed corrective
action plan
Failure to submit any of these items by the required due date may result in holds on current ent draw
requests, suspension of the organization's contract(s) and eligibility for future fundin .
g
If the organization does not meet the requirements of having a single/program audit
. g conducted, records
must still be kept available for review or audit by City of Fort Worth staff OMB A-13 3 Subpart B
( p Sec 200(d).
If additional information is needed concerning the audit requirements, please call (817) 392-
5141.
C ADO Funds -Exhibits
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))
Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133. (OMB A-133 § 505 (c))
Schedule of Findings and Questioned Costs (OMB A-133 §. SOSd), including: Summary Schedule of Prior Audit
Findings 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.
CHDO Funds -Exhibits
i
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
Audit Certification Form
Subrecipient: Jarrant County Housing Partnership, Inc. Fiscal Year Endin •
g. —9—/30—/13
Month Day Year
® We have exceeded the federal expenditure threshold of •
� $500,000. We will have our Single Audit or
Program Specific Audit completed and will submit the audit report within nine (9) months after
the end of the
audited fiscal year.
0 We did not exceed the $500,000 federal expenditure threshold p sold required for a Single Audit or a Program
Specific Audit to be performed this fiscal year. (Fill out schedule below
Must be 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 $
_D o nn a nN e s s____ _ _ —President
------------ __ ____
Prime Title(Must be CFO,CEO or equivalent)----
_817-924-5091 5/10/13
A thor' ed ure(Mu be CFO, or equivalent) Phone Number Date
Failure to submit this or a similar statement or failure to submit a completed single audit
p g package as
described in the audit requirements by the required due date will result in suspension of funding '
. p d ng and will affect
eligibility for future funding.
Submit this form to the City of Fort Worth Housing and Economic Development Department within 60 days after
p p y the end of your
Fiscal year
CHDG Funds -Exhibits
EYHIBIT "F"
STANDARD OF BACKUP DOCUMENTATION
FORTWORTH.
Standard of Documentation for Reimbursement of Development Costs
Cost Type Documentation Standard
Acquisition of Vacant Lots • Notice to Seller (date must be on or before the date of options agreement
or sales contract and signed by the buyer and seller)
• Recorded Deed of Trust
• Purchase Agreement w/ Required HUD language
• Master Settlement Statement
• Appraisal or other document used to determine purchase price
• Proof of Payment (bank statement/cancelled check)
Soft Costs (Architect, Engineer, • Invoice
Landscaping, Surveys, Appraisals, - Invoice should include:
Environmental, Legal Fees, Other date;
Consultants, Etc.) company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (ie. bank statement or cancelled check)
• If applicable, fully executed contract/service agreements and applicable
amendments
- Provide printout from www.sam.gov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
CHDO Operating/Project Delivery • Invoice
Expenses - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
• Timesheet(s)Signed by Employee and Supervisor
• Activity Log(s) Signed by Employee and Supervisor
• Pay Period Dates Should be Reflected
• If paying for rent or contract services, copy of executed agreements
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
Housing and Economic Development
FINAL as of 4/24/2013 Pagel
FORT WORTH
Standard of Documentation for Reimbursement of Development Costs
Construction Costs (Contractors & • Invoice
Subcontractors) - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
• Timesheet(s) Signed by Employee and Supervisor
- Activity Sheet(s) Signed by Employee and Supervisor
- Pay Period Dates Should be Reflected
• Copy of applicable inspection report(s) conducted by HED Inspector
• Copy of executed agreements
- Provide printout from www.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
documentation of how costs are allocated.
• For retainage for the prime contractor, lien waivers for the prime and all
subcontractors.
Materials Purchased by Developer 0 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
0 Proof of payment for any other entity contributing to development costs.
0 Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation required in contract for home/unit produced
(i.e. income docs for eligible homebuyer, sales contract between
developer/homebuyer, HAP Deed of Trust w/required affordability period
language, etc)
Housing and Economic Development
FINAL as of 4/24/2013 Page 2
EYHIBIT 66G"
24 CFR PART 92 SUBPART F- PROJECT REQUIREMENTS
two-year match reduction period in accordance with the
(a)(3)of this section.
e provisions of paragraph
b. Recluctiorr of match far crrtici atin '
p p g�urisdictions in disaster areas. If a art i c i a t i n
jurisdiction is located in an area in which a d p p g
declaration of major disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency .
genes Assistance Act is made, it may request
a reduction of its matching requirement. For a to Y q
Field office m cal participating Jurisdiction, the HUD
may reduce the matching requirementspecified in
percent for the fiscal year in w � � 92.21� by up to 100
• Y which the declaration of major disaster is mad
following fiscal year. For a State participating a and the
reduce the mat p p ng Jurisdiction, the HUD Field office may
matching requirement specified in 92.21 S b Y
fiscal year i � � Y up to 1��percent for the
y n which the declaration of major disaster is mad •
respect to an ff� a and the following fiscal
year with res
P y HOME funds expended in an area to which the declaration
major disaster applies. At its discretion eclaration of a
and upon request of the participatin •urisdicti
the HUD Field O f fife may extend the reduction g J °n'
ion For an year.
SUBPART F-- PROJECT REQUIREMENTS
§ 92.250 Maximum Per-unit
Subsidy Amount and Subsidy Layering
a. 1faximum per-unit.s uhsicfy amount. The total
amount of HOME funds and ADDI funds
that a participating j urisdiction may invest on
not exceed the e - .Y . a per-unit basis in affordable housing may
p r unit dollar limitations established tinder section Y
National 1'-Lousing Act 12 U.S.Q. n 221(d)(3)[ii)of the
( 17151(d)(3}(ii)) for elevator-t e r
the area in which the housing s located. These - Yp projects that apply to
g ese limits are available from the Multifamily
Division in the HUD Field office. If the a
amount has already rticipating Jurisdiction's per-unit subsidy
y been increased to 210%as permitted under y
the National Housing Act, upon request section 221(d}(3)(ii} of
subsidy p q t to the Field �}f'fice, 1^lUD tivi11 allow the per-Unit
y mount to be increased on a program-wide basis to an p t
original per unit limits. amount, up to 2 ��o of the
b. .Subsidy lcxyering Before committing fu
ject g nds to a project, the participatin urisdiction
must evaluate the pro in accordance with guidelines g J
purpose and will not i g nes that it has adapted for this
invest any more HOME funds, in combination with othe
governmental assistance, than is necessary to provide affordable r
� p ordable housing.
§ 92.251 Property Standards
p y
t�.
!. 1{c}rising that is constructed or rehabilitate d with ith f{Mff: 1rrnds rnritit meet all
,TPl;cable local codes. rehabilitati011 standards ordinances,i , , .
at the time Or project comp letio
�rdinanc.tis, .rr�d r«nir�g ()rc{inancc�s
n, except a5 provided .
section. l�he art; P P )vid d in paragraph t h) of this
p c.ipating jurisdiction must have written standards for re
that ensure that 1~L0,1,f to hc�rrsin g I� ,, , ., -, habilitation
g i s tl�c.c.nt. safe, and sanitary. 1 n the absence
{�f'a local et��te for new construct' car rti•hab�
ilitation. 1 i(),NIF-assisted ne%v
construction ()r rehab,l i tation must meat. Is �1 1 i�able ctrl • .> >
f3«ilcfin�; t't��lc„• �It'13i 1 � � f'P c cif tf�rcc, r��t��lil c��c{c•s
.� �, y+�l[i� r)' 1 1111 't1111�.' titaridard
�5
(Southern) Building Code(SBCCI)); or the Council of •
American Building Officials
(CABO) one or two family code; or the Minimum Property petty Standards (NIPS) an 24
CFR 244.925 or 244
• 26. To avoid duplicative inspections when FFIA financing ng
is involved in a 1I01E-assisted property,y? a participating jurisdiction may Cely on a 1inim um Property Standards
(NIPS) Inspection erformed b qualified p y a yualtfred person.
Newly constructed housing must meet the current edition of the Model Ener Code
published by the Council of A g American Building Offici als. gy
?.
All other 1I0ti.E-assisted housin g (e.g., acquisition) must meet all applicable State and local housing quality standards and code requirements and if there
are no such
standards or code requirements, the housing must meet the housing quality
standards in 24 CFR 982.441.
3. The housing must meet the accessibility requirements
implements Section � q ments at 24 CFR part 8, which
p ton 544 of the Rehabilitation Act of 1973 (29 U.S.C. 794
covered multifamily dwellings, as d ) and
y• g , defined at 24 CFR 144.241, must also meet the
design and construction requirements at 24 CFR 144. .
245, which implement the Fair
Housing Act (42 U.S.C. 3641-3619).
4. Construction of all manufactured housing ust t � meet the Manufactured Home Construction
end Safety Standards established in 24 CFR Part 3284 r
standards pre-empt State and . these
p P local codes covering the same aspects of performance
for s«ch housing. Participating jurisdictions providing P nce
P ng fIO�IE assistance to install
manufactured housing units must comply with applicable State Late and local laws or
codes. In the absence of such laws or codes, the participating jurisdiction must
comply with the manufacturer's written instructions structlons for Installation of manufactured
housing units. Manufactured housing hat is rehabilitated
meet the requirements it g aced using 1`IO1�t F finds must
y ements set out in paragraph (a)(1) of this section.
b. J'he following requirements apply to housing for homeownership that is to be
rehabilitated after transfer of the ownership interest:
l.
Before the transfer of the
homeownership interest, t he participating jurisdiction rrust:
i.
Inspect the housing for any defects that ose a danger anger to health; and
Noon fy the prospective purchaser of the work net
t i r��c h � �ti ' • , •�. cicd to curt the defects and the
Y hich defects rriust be cured and 4,ip licable property standards rnc..t.
'.
Hie hOrrsing insist he tree from Lill noted heiilrh an d satety pc rcc rs before (ic c
rpancy
,Ind not Liter than 6 nio nths a to the trarlst'er.
1-he hm sir1� 111tist iTic:t the property st:rndiLirds in a • r i - -
�-- P r�}graph �ii�( � � c�t�tl�is tic.c.tiorl riot
later than ' �ears after tri-roster tit,the (m nershi intere.� .
- p st
C. An mknc:r ot'rental horlslll� �lsslstc;c.1 l�1Cj] I 1{)).11: 62nds nu5r maintain the housing ire ttmpliancc �yith ill PP licable state and local housing
quality standards and code
rcclriirernerits .rnd i f there ,ire no srrc:h stamhirds ()r code requirements. the i a
111e �t the 11mi"111" 1 0i.rfit` ,t.ir�cf�rr 1 l�� hc�trtiir�^ rr��itit
ds iii ' f [ l I� ����? tt3l
i t;
d• All housing occupied by tenants receiving HOME tenant-based rental assistance must
meet the housing qual ity standards in 24 CFR 982.40
§ 9Z.252 Qualification as Affordable Rental Housing
The HOME-assisted units in a rental housin •
g project must be occupied only by households
that are eligible as low-income families and •
must meet the following requirements to requirements qualify affordable housing. The affordability also apply to the HOME-assisted non-
owner-occupied units in single-family housin purchased wi
with 92.254, g p th fIOME Funds in accordance
a. Rent limitation. HUD provides the following maximum g axlmum l~fOM E rent limits. The
maximum HOME rents are the lesser of:
1. The fair market rent for existing housing f •
g g or comparable units In the area as
established by HUD under 24 CFR 888.111; or
2. Arent that does not exceed 30 percent of '
P the adjusted income of a family whose
annual income equals 65 percent of the median in
u bedrooms in the unit. The HD came For the area,as determined
by [IUD, with adjustments For number of
limits provided by HUD will include i�fE rent
average occupancy per unit and adjusted
income assumptions.
b. Aciclitional Rent limitations. In rental ra'
p ject5 with five or more HOME-assisted rental
units, twenty (2p) percent of the HOME-assisted .
units must be occupied by very low-
income families and meet one of follow*n re '
g rent requirements:
1. The rent does not exceed 30 percent of the '
equals Sp P e ann�ral income of a family whose income
q, percent of the median income for the area, as determined •
adjustments for smaller and larger • ed by HUD,I], with
ger fame l ies. HUD JD provides the HOME rent limit
which include average occupancy per unit and � s
However, if t Y P adjusted income assumptions.
he rent determined under this paragraph is higher than the applicable rent under(a) of this section., then the maximum
rent for u •
is that calculated under paragraph units is under this paragraph
p g ph
2. The rent does not exceed 30 percent c�f the
receives f�' P family's adjusted income• if the unit
Federal or State project-based rental subsidy as a contribution and the vary low-income
family
pays bution toward rent not more than 30 percent of the Family's
adjusted income, then the max imu m rent i.e., tenant contribution
plus project-
based rental subsidy) i5 the rent allowable u -
nder the Federal car State project-based
rental subsidy program.
C. In�t-al rent,v c heclule(rntl"Nit v allotvcrnc•e.s. V h
lnalcirnum monthly �rllutiv utilities e partrc1 pating.furisdiction must establish
y ands for utilities and services (excluding telephone). � .
participating juClSdictinn must review lrnd a � g The
approve rents proposed by the owner for units
subject to the maximum rant limitations in ara
units subject to the p graphs (a) or(b)of this section. for all
J e maximum rent limitations in paragraphs. t'a l or(b) of
this section for which the tenant is paying Utilities and services,
the participating jurisdictlt�n must ensure
tt
that the rents do not exceed the maxi rent minus the monthly '
and 5ery lees.
Y allowances for
d. Nondiscrimination against rental assistance subsidy holders. The owner cannot refuse to
lease HOME-assisted units to a certificate or voucher holder under 24 MFR part 982
Section S Tenant-Based Assistance: Unified Rule for Tenant-Based Assistance under the
Section 8 Rental Certificate Program and the Section S Rental Voucher Program or to the
holder of a comparable document evidencing rtici ation in a�p p HOME tenant based
rental assistance program because of the status of the ros ective ten
such certificate voucher, or p p ant as a holder of
comparable HOME tenant-based assistance document.
e. Periods of Affordability. The ffOME-assisted units must meet the affordability
requirements for not less than the applicable periods specified in the '
beginning after r � . . p e following table,
g g project completion. The affordability requirements apply without and
to the term of any loan or mortgage or the transfer pP y regard
ans fer o f ownership. They must be imposed
by deed restrictions, covenants running with the land or other mechanisms echanisms approved by
[IUD, except that the affordability restrictions may terminate upon
Jurisdiction y p foreclosure or transfer
i n 1 ieu of forec losur e. The participating may use purchase options, rights
ri p rg of
first refusal or other
preemptive rights to purchase the housing before foreclosure or deed
in lieu of foreclosure to preserve affordability. The affordability restrictions
. , y• y estr�cttons shat! be
revived according to the original terms if, during the original affordability'
owner of record � period, the
before the foreclosure, or deed in lieu of foreclosure or an entity
includes the former owner or those former Y ty that
se with whom the former owner has or had family r
business ties, obtains an ownership nterest in the project y
p p � t or property.
Rental Housing Activity Minimum eriod of affordability .
p rdabtltty to years
Rehabilitation or acquisition of existing
5
housing per unit amount of f fOME finds:
Under$15,040
$15,000 to $40,000 10
Over$401,000 or rehabilitation involving 15
refinancing
New Construction or acquisition of newly 20
constructed housing
t'. .tiubYequent rents tlurin•g the trllorclability l 3er1011
.
! 1-he inax imurn 110-NA 1: rent limits sire recalculated on a erlodic basis asps arter IR.-A)
(leterm i nes t 1i r market rents and median incomes. 11 t 1 f) then rov i
p des the new
Ina IMLIM I1O,1,1F rent limits to participating jurisdictions. Regardless of'chan =
f��lr market rents and an median income over _ _ -�= changes �n
c.r time.., thy. I10,N4 -, rents for a project are
not required to be log N�:er than the I RAW*'. rant limits for the project in effect � _
time o f'prc�ject comrn fitment.
p � at the
Page 4 of 4
4,y All decisions by the Administrative Review Board are final.
END OF GENERAL DECISION
trp 1,V%v,*v.1011VdOI-,Ov, ydo Vic atil es/cfavIsbacurv'FX25.dvb?v=t] V1 y,10 13
EYHIBIT "H-2"
CONTRACTOR INFORititATION FORM
City of Fort Worth
Community Development Block Grant(CDBG)
Construction projects
CoNTRACTO R MFORNiA,TION
Date:
Project:
Contractor:
Address:
City.
Telephone: Fax:
Federal I.D.
Officers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
If sole ownership or partnership, list owners};
I certify at the time of execution, hereof, neither my company norm c.• -
p y y corporate c tt�.ers t t
incorporated) are listed in the list of Debarred, Suti ended, ,znd Ineligible e L.ontractors maintained
by the U.S Department of Hausa ng �znd tJ"rban D3 .Development(HUD).
P � )
Signature:
EYHIBIT 46H-3"
SUBCONTRACTOR IIYFORMATION FORM
City of Fort worth
Community Development Block Grant(CDBG)
Construction Projects
Mco ORMATIo
Date:
Project:
S ubcontzmaor:
Address-
City:
Telephone: Fax:
Federal I.D. #:
Officers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
if sole ownership or partnership, list owner (s):
I certify at the time of execution, hereof, neithcT my company nor my corporate officers (if
incorporated) are listed in the list of Debarred, Sus pen ded, and [ne101e Contractors .
maintained
by the U.S Department of Housing and Urban Development (HUD).
Signature:
EYHIBIT 66H-4"
LABOR RELATIONS GUIDE
.,fc �``�'�' z.. "i a'R ,nJ,, 'r,�`� ���:,1'� 3;1,+��'r'�Y��.,��uy,lf•!F.r,l:il;;�-:iE"�;, •i{.•
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-: � '� �;�_'. � x ,t 7 U.S. Department of Housing
I IL
pis
and Urban Development
Labor Relations Desk Guide
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■• �- ice; wf• f _.�t.,-��V.T�',`y} •r,y,•.::••wJ��- t• 1� "-, _
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Contractor-'s
o reVC1
iiing Wage Requirements
c ti,
for Federally7A
1 ConstrucUon
ti -•" I 't L
A.
•
4 �
January 2012 4L
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Previous versions �-, : � • •.. � +
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� J
INTRODUCTION
This Guide has been prepared for you as a •
Y contractor performing work on cons#ruction ro'
that are assisted by the Department of Housing and Urban Development Jests
elopment and sub'ect to Davi -
Bacon prevailing wage requirements. This J s
Guide does not address contractor requirements
involved in direct Federal contracting here q ements
g HUD or another Federal enters i
agency nto a
procurement contract. In this latter case, the Federal Acquisition Regulations (FAR) -uidance contai g are appli-
cable. While the
9 contained in this Guide is
' generally a pp licable to any Davis-Bacon protect, specific questions pert aining to direct Federal
contracts should be addressed
to the Contracting who signed the contract for the Federal agency.
Our objective here is to provide you with a •
Y guide which �s simple and non-bureaucrat'
comprehensive and which will help better is yet
#� Y understand and comply with Davis-Bacon I
standards. HUD's office of Labor Relations w labor
worked closely with the Department of Labor'
Wage and Hour Division to make sure that the
e labor standards provisions in our contra
the specifics of complying with them represent Department y contract and
p nt the latest information. It is the De
Labor which has general administrative oversight P nt of
sight of all Federal
• contracting agencies, such as HUD, which administer the day-to-day responsibilities of
enforcing Davis-Bacon rov' .
construction contracts they either fund or assist in funding p �s�ons in
.
There are three chapters in this Guide. The first st chapter offers a brief description of the law
and regulations associated with Federal labors s
tandards administration and enforcement a
discusses both what's in your contract that requires Davis-Bacon d
n compliance and our respon-
sibilities. The second chapter deals with lab y. p
or standards and payroll reportin re
The third chapter discusses what can happen i g requirements.
ts'
Th
pp n the event there is a dispute about the
wage that should be for have been) p aid and an y back wages that may be d ue.
Finally, not all HUD construction ro'ects are
P 1 covered by Davis-Baran wage rates. Far
pose of this Guide, we are assuming hat a g the pur-
9 determination has already been made that
Bacon wage rates are applicable. Should Davis-
you wish assistance in determining whether D '
Bacon wage rates apply #o a particular project g Davis-
Bacon p � ct or �f you need other related technical assistance,
pease consult with the HUD Labor Relations Field tance,
d staff for your area. If you don't know which
staff to contact, a list of Labor Relations field h�ch
offices and their geographic areas and telephone
numbers can be found on HUD's Home Rae
Page at the address below.
Visit the Office of Labor Relations on-line:
h ft:I w .h d. v/ ff" e dal
Obtain additional copies of this Guide and other publications at our website orb telephone
(800)767-7468.
from HUD's Customer Service Center at y p
i
TABLE OF CONTENTS
INTRODUCTION................................................................................
CHAPTER I LAWS, REGULATIONS, CONTRACTS
AND RESPONSIBILITIES............................................................... . -
. 1 1
1-1 DAVIS-BACON AND OTHER LABOR LAWS. ........................
a. The Davis-Bacon Act (DBA)..........................................
b. The contract Work Hours and Safety Standards Act CWHSSA .
c. The Copeland Act (Anti-Kickback Act)............................................ ...
d.
1-2
The Fair Labor Standards Act (FLSA) ...
1-2 ................... 1-2
DAVIS-BACON REGULATIONS..........................................................
1-3 CONSTRUCTION CONTRACT PROVISIONS..........................
1-4 RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR......................................
1-5 RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR.. .
CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS ........■.....■■......■.■. .
. .21
SECTION - I THE BASICS
2-1 THE WAGE DECISION....................... ..
.... ... ..........................
a. The work classifications and wage rates............................ ..
.. ...2-1
' the
b. Posting wage decision...... ........ ..............
........... ......................... 2-2
... ...........
... ... ...........
2-2 ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES .2.2
a. Additional classification rules . ��������
........... .......................... ....... 2-2
b. Making the request.................................... . ..,.. ............... .
c. HUD review ..... ...
.■. ..... 2-3
... ....................... ... ...
d. DOL decision ....... .......
.......................... ...
.2-3
2-3 CERTIFIED PAYROLL REPORTS.............. .. ............................ ..
a. Payroll formats .......................................................... ..... ................
b. Payroll certifications ................................................ ..................... 2-4
c. No work" payrolls ....................................................... ........................
2-4
d. Payroll review and submission.......................................................... 2-5
e. Payroll retention ............................................................ . .................
f. Payroll inspection ..............................................................
DAVIS-BACON DEFINITIONS..............................................
a. Laborer or mechanic .........................................................
. Employee .................................................................................
c. Apprentices and trainees...........................................................
25
d. Prevailing wages or wage rates ................................................
e. Fringe benefits............................................................... .........................2-7
f. Overtime......................................................... ............ ......................2-7
g Deductions
h Proper designation of trade 2-8
Site of work 2-8
2-8
ili
i
SECTION - II REPORTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT......................................................
a. Project and contractorlsubcontractor information....................... .... ........ ......
Employee informat ion.........................................................................................
29
c. Work classification....................................................................................... ....
d. Hours worked.................................................................................................
e. Rate of pay..................................
f. Gross wages earned................................................................................
9 ..
h. Net pay............................................................................ ............ ..
Statement of compliance
• .............. .
j. Signature......................................................................................... ....
SECTION III - PAYROLL REVIEWS AND CORRECTIONS
2-5 COMPLIANCE REVIEWS........................................................................
a. On-site interviews............................................................... ................. ........ ....
b. Project payroll reviews ............................................................................. .......2-12
2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS .....■.......... y
a. Inadequate '
q payroll information.............................. ..
• 2-12
. Missing ' tifcation numbers......, ... .. .. ...
Aden
... ... ..................
c. Incomplete payrolls ............................. .. .■
... ........ .•.....
.......... ......2-13
d. classifications ..................................... ..
e. Wage Rates...................................................... ..
f. Apprentices and trainees....................................................................................
g. Overt ime...................................................................................... ...
. Computations....................................................................... ... ..
i. Deductions .............................................. .......
... ... ....................
j. Fringe benefits......■........................................ .................
k. Signature....................................... ..... ..... ... .................
2-�14
... .. ......... 2-�14
.... .............................
I. On-site interview comparisons..........................................
m. correction certified payroll.....................................................
RESTITUTION FOR UNDERPAYMENT OF WAGES....................................... .
a. Notification.............................................................................
b. computing wage restitution.................................................
c. correction certified payrolls........................................................ 2-15
d. Review of correction CPR .................................................. ...................
e. Unfound workers ..............................................................................
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW
ACCOUNTS, AND SANCTIONS.......................................................3-1
3-1 INTRODUCTION.......................................................................................
3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES..........
a. Additional classifications and wage rates...........................................................
31
b. Findings of underpayment............................................................. ................
3-3 WITHHOLDING.............................................................................................
3-4 DEPOSITS AND ESCROWS .................................................... ..... .......
3-5 ADMINISTRATIVE SANCTIONS........................
a. DOL debarment..................................... 3-4
.... ... ............................. .......
.. ........
. HUD sanctions ...................................................................................................3-4
3-6 FALSIFICATION OF CERTIFIED PAYROLL REPORTS................. .
APPENDICIES
ACRONYMS AND SYMBOLS..............................................................................
DAVIS-BACON - RELATED WEB SITES* . .6-060.066 HUD-4720, Project Wage Rate Sheet............... ..
WH-347', Payroll Form/Statement of Compliance...... ......... .......
1J
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 OTHER LAgglj LAZf%
a. The Davis-Bacon Act QBA), The Davis-Bacon Act requires the payment of prevailing
wage rates (which are determined by the U.S. Department of Labor) to all laborers and
mechanics on Federal government and District of Columbia construction projects in
excess of $2,000. Construction includes alteration and/or repair, including painting and
decorating, of public buildings or public works.
Most HUD construction work is not covered by the DBA itself since HUD seldom contracts.
directly for construction services. Most often, if Davis-Bacon wage rates apply to a HUD
project it is because of a labor provision contained in one of HUD's "Related Acts" such
as the U. S. Housing Act of 1937, the National Housing Act, the Housing and Community
Development Act of 1974, the National Affordable Housing Act of 1990, and the Native
American Housing Assistance and Self-Determination Act of 1996. The Related Acts are
often referred to as the Davis-Bacon and Related Acts or DBRA.
b. The Contract Work JJo1jr1..andS %Wdlrds-Act CWHSSA
requires time and one-half pay for overtime (OfT) 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/olr/library.cfm)
1 -t
c' - The Copeland Ac .
o p t makes �# a Federal crime
far anyone ne to require any laborer or mechanic (employed on a Federal or Federally-
assisted
project) to kickback (i.e., give up or pa a .
Y back) any part of them wages. The
Copeland Act requires every (contractors em to er p Y and subcontractors}
to submit certified payroll reports (CPRs) and regula#es p ermissible payroll deductions.
d. The
e FLSA contains Federal minimum wage
ts. These requirements
rates, overtime (O/T), and child labor requirements. g
q generally a I
to any labor performed. The DoL has the pp Y
e authority #o administer and enforce FLSA.
HUD will refer to the DoL any possible FLSA viola ' •
#ions that are found on HUD projects.
ects.
1-2 DAVIa-IJAQQN REGULAIJONe
We
The Department of Labor IDOL •
] has published ed rules and instructions cone •
Davis-Bacon and other labor laws in the Code erning
of Federal Regulations (CFR). These
regulations can be found in Title 29 CFR Parts 1. 3,r 50 6 and 7. Part 'l explains how
the DoL establishes and publishes DBA wage determinations minations ( wage decisions) and
provides instructions on how to use the determinations. Part 3 describes Copeland Act
requirements for payroll deductions and the submission n of weekly certified payroll reports.
Part 5 covers the labor standards provisions that are in your contract relating to Davis-
Bacon Act wage rates and the responsibilities of c •
p contractors and contracting agencies to
administer and enforce the provisions. Part 5 provides .
. p vides for administrative proceedings
enforcing Federal labor standards on construction g
and service contracts. Last, Part 7
sets parameters for practice before the Administrative
Review Board. These regulations
are used as the basis for administering and enforcin g the laws.
DoL Regulations are available on-line'
on the World Wide IIVeb.
http://www.dol-gov/dol/allcfr/Title-29.htm
1-3 CON§JRMION.QOMMAnP&QyISLQN25
Each contract subject to Davis-Bacon labor standards requirements must contain labor
standards clauses and aDavis-Bacon wage decision
bound These documents are normally
d into the contract specifications.
a. The labor standards clauses. The labor standards clauses describe the responsibilities
of the contractor concerning Davis-Bacon wages
,�vit g and obligate the contractor to cane l
h the labor requirements. The labor standards clauses Y
auses also provide for remedies in
the event of violations, including withholding from payments due to the contractor to
ensure the payment of wages or liquidated damages which hich may be found due. These
contract clauses enable the contract administrator to enforce the Federal labor standards
applicable to the project. HUD has standard forms that contain contract clauses. For
,example, the HUD-2554, Supplementary Conditions to e Contract for Construction,
� the�5 issued primarily for FHA multifamily housing y s ng and other construction protects
1 .2
i
administered by HUD; the HUD-4010, Federal Labor Standards Provisions which is u
. sed
for CDBG and HOME projects, and the HUD-53 70, General Conditions of the Contract for
Construction or the HUD-5370-EZ (construction contracts s$100,000
) which are used for
Public and Indian Housing projects.
F w HU
D program labor standards forms are available on-line at:
ww.hud.gov/offices/adm/hudclips/index.cfm
b. Davis-Bacon Wage Decisions. The Davis-Bacon wage decision (or wa a determi g g nation)
is a listing of various construction work classifications, such as Carpenter, Electrician,
Plumber P can,
e and Laborer, and the minimum wage rates [and fringe benefits, where prevailing)
. p 9)
that people performing work in those classifications must be p aid.
Davis-Bacon wage decisions are established by the DGL for various types of construction
on
(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 kee p them
current. In most cases, when the contract is awarded or when construction begins, the
wage decision is "locked-in" and no future modifications are applicable to the contract or
project involved.
All current Davis-Bacon wage decisions can be accessed on-line at no cost at-
http://www.wdol.gov
1-4 R9SEQNS1Q1L1JY.QF.TJJE EMCJPAL_Q0NJJ1ACJQR
The principal contractor(also referred to as the prime or general contractor is responsible
. � } possible
for the full compliance of all employers (the contractor, subcontractors and an low -
y lower-tier
subcontractors) with the labor standards provisions applicable to the j roect. Because
p c use
of the contractual relationship between a prime contractor and his/her subcontractors,
subcontractors generally should communicate with the contract administrator only through
ugh
the prime contractor. (See Contract Administrator, below.)
To make this Guide easier to understand, the term "prime contrac#oro will mean the
principal contractor; "subcontractor' will mean all subcontractors including lower-tier
lower ti e
subcontractors, and the term `employer" will mean all contractors as a g group, includin
g the p rime contractor and any subcontractors and lower-tier
subcontractors.
ONSIBILUY QE_THff&QHJ STMIOR.
The con tract a dministrator i's responsible for the ro er ad '
p p m�n�strat�on and enforcement
of the Federal labor standards provisions on contrac •
is covered by Davis-Bacon
requirements. We use this term to represent the person (or persons) who will provide
labor standards advice and support to you and other project principals e.g., the owner,
sponsor, architect), including providing the proper Davis-Bacon
wage decision
on
(see 2-1 The Wa ge Decision} and ensuring that the wage de cision and contra
ct clauses are incorporated into the
contract for construction.The contract administrator al '
so monitors
labor standards compliance (see 2-B, Compliance Reviews • •
. p } by conducting interviews
with construction workers at the job site and reviewing payroll re
9 P Y ports, and oversees any
enforcement actions that may be required.
The contract administrator could be an employee or a agent of 9 HUD, or of a city or county or
public housing agency. For HUD projects administered directly
Y Y HUD staff, usually FHA-
insured multifamily projects, the contract administrator will be the H •
HUD Labor Relations
field staff. But many HUD-assisted projects are administered by local contracting agencies
such as Public Housing Agencies (PHAs), Indian tribes and trio •
ally-designated housing
entities (TDHEs), and States, cities and counties under HUD's D '
ommun�ty Development
Block Grant (CDBG) and HOME programs. In these cases the
e contract administrator
will likely be local agency staff. In either case, the guidance for '
the same.
g you remains essentially
The DOL also has a role in monitoring Davis-Bacon administration and enforcement. In
addition, DGL has independent authority to conduct investigations. '
A DGL investigator
or other DGL representative may visit Davis-Bacon construction
n sates to interview
construction workers or review payroll information.
1 A
CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
)&HEJM_T9STA8J7 Now that you know you're on a Davis-Bacon project and you know
some of the legal and practical implications, what's next?
SECTION I - THE BASICS
2-1 THE WAGE DECISION.
Davis-Bacon labor standards stipulate the wage payment requirements for Carpenters,
Electricians, Plumbers, Roofers, Laborers, and other construction work classifications
that may be needed for the project. The Davis-Bacon wage decision that applies to the
project contains a schedule of work classifications and wage rates that must be followed.
If you don't have it already (and by now you should), you'll want to get a copy of the
applicable Davis-Bacon wage decision.
Remember, the wage decision is contained in the contract specifications along with the
labor standards clauses. See 1-3, Construction Contract Provisions.
a. The work classifications and wage ratel., 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.
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 Tillable 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.
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 con Act (Form WH-
1321) at the job site in a place that is easily accessible to all of the construction workers
employed at the project and where the wage decision and oster won't b
p e destroyed by
wind or rain, etc. The Employee Rights under the Davis-Bacon Act poster • '
. p is available in
English and Spanish on-line at HUDClips (see address in the Appendix).
pp dux).
[The Employee Rights under the Davis-Bacon •9 con Act poster 32't} replaces the Notice
Employees. The new poster is available in En lish and S anish on-li 9 p neat I�UDCIips address in the Appendix}.
2..2 "MADE&LLUIFICATUN2 ANQ YMQE-RATEQ
What if the work classification you need isn't on the wage decision?n? if the work
classifications) that you need doesn't appear on the wage decision,, you will need to
request an additional classification and wage rate. This rocess is usually y ve ry simple
and you'll want to start the request right away. Basically, identify '
Y, y fy the classification
you need and recommend a wage rate for DOL to approve for the project. There
. . p � ere area
few rules about additional classifications; you'll find these rules in the
e DAL regulations,
Fart 5, and in the labor clauses in your contract. The rules are summarized for you here.-
a• Additional classifications and wage rates can be
approved if:
g
1. The requested classification is used by construction contractors in the area of the
project. {The area is usually defined as the coup where the project is l
county p � orated}.
2. The work that will be performed by the requested classification i
q snot already
performed by another classification that is already he decision
Y on wage g . tin other
words, if there already is an Electrician classification and wage rate on
g the wage
decision you cant request another Electrician classification and rate.
3. The proposed wage rate for the requested classification "fits" with the other wage
rates already on the wage decision. (For example, the wage rate proposed
a trade p p ed for
ode classification such as Electrician must be at least as much as the lowest
wage rate for other trade classifications already contained in the n
wage decision.)
9 0 )
And
4. The workers that will be employed in the added classification if it is known nown who the
workers are/will be), or the workers'representatives, must agree with th
wage rate.
9 e proposed
b• Makimthe.Mauest A request for additional classification and wage rate must be made
in writing through the contract administrator. (If the contract administrator rstrator 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 contras
9 p tor. All you need to
do is identify the work classification that is missing and recommend a wage rate usually
the rate that employer is already paying to the employees to performing!� Y p g the work) for that
classification. You may also need to describe the work that the new classification will
perform.
The HUD Labor Relations field staff will review the requested classification
assification
and wage q
g to determine whether the request meets the DOL rules outlined in paragraph 2-2(a), above. If addition al information or clarification is needed the
staff will contact the
prime contractor(or contract administrator for local agency projects for more. projects) information,
etc. If the Labor Relations review finds that the request meets the rules #h
a staff will give
preliminary approval on the request and refer it to the DOL for final approval. The staff
will send t pp ff
o you a copy of the preliminary approval/referral letter to the DOL.
If the HUD Labor Relations staff doesn't think the request meets the rules les and if agreement
can't be reached on the proper classification or wage rate for the work k described, the
HUD Labor Relations staff will not approve the request. In this case,e, the staff will send
your request to the DOL with an explanation why HUD believes that the
request shouldn't
t b e a pp ro ved. The DOL still has final nal decision authority.
You will receive a copy of the
disapproval/referral letter to the DOL.
d• D i * The DOL will respond to HUD Labor Relation writing Relations in wry#rng about the
additional classification and wage rate request. HUD Labor Relations will notify you of
the DOL decision in writing. If the DOL approves the request, the prime q p me contractor must
post the approval notice on the job site with the wage decision.
If the DOL does not approve the request, you will be notified about
what classification and
wage rate should be used for the work in question. You will also receive instructions ct ons about
how to ask for DOL reconsideration if you still want to try get et ou y r recommendation
approved.
It's always a good idea to talk to the contract administrator before i
submitting an additional
classification and wage rate request. The contract administrator can offer suggestions
and advice that may save you time and increase the likelihood that DOL i
w II approve your
request. Usually, the contract administrator can give you an idea about what
the DAL will
finally decide.
- 3
Z-3 _RT1F1ED9&RQLL BEE081S.
You'll need to submit a weekly certified payroll report (CPR) beginning with the first week
that your company works on the project and for eve week afterward until
. r]► your firm has
completed its work. It's always a good idea to number the payroll reports beginning w'
P Y p � g nth
#1 and to clearly mark your last payroll for the project"Final.*
a• Pavroll forMats. The easiest form to use is DLL's WH-347, Payroll. A sample co of
the VII - y P PY
H 347 Is included in the back of this Guide. You may access a frllable version
the Y on of
he WH-347 on-line at (see web address in the Appendix).
. li t HUD Also the contract
administrator can provide a few copies of the WH-347 that ou can reproduce.
Y
You are not required to use Payroll form WH-34
Y 7. You are welcome to use any other type
r
o
of payroll, such as computerized formats, as long as it contains all of the information that
is required on the WH-347.
b. The weekly payrolls are called certified because each payroll
is signed and contains language certifying that the information is true and
correct. The
payroll certification language is on the reverse side of the WH-347. !f ou are using
sing
another type of payroll format you may attach the certification from the back of
the WH-
347, or any other format which contains the same certification the WH language on -
347
(reverse).
F GL's website has Payroll Instructions and the Pa roll form WH-347 in a " "Y fllable PDF
rmat at this address:
www.dol.gov/whd/forms/wh347.pdf
C. "No work" payrolls may be submitted whenever h
t ere is a
temporary break in your work on the project, for example, if your firm is not needed ded on
the project right now but you will be returning to the job in a cou le of week p s. See tip
{s box, for no work" payroll exemption!) However, if you know that your firm will not be
working on the project for an extended period of time, you may wish to send Y y 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 p Y ou number payrolls
y
consecutively or if you send a note, you do not need to send "no work" p a Y rolls.
Lp'f yo u number your payroll reports consecutive ou do not need to "
yrolls!
iY Y submit no work
d• RargArevie and11jbML1sJ The rime contra '
p contractor should review each subcontractor's
payroll reports for compliance prior to submiten the reports • -
R 9 p to the contract administrator.
Remember, the prime contractor is responsible for the full compliance prance ofall subcontractors
on the contract and will be held accountable for an wage restitution
du Y g estitution that may be found
e to any laborer or mechanic that is underpaid and for an '
P y liquidated damages that
may be assessed for overtime violations. All of the payroll r eport s for any proj ect ect must be
submitted to the contract administrator through the rime
9 p contractor.
An alert prime contractor that reviews subcontractor payroll submissions can detect an
misunderstandings early, prevent costly underpayments Y
p y e payments and protect itself from financial
loss should underpayments occur.
e• Payroll refMntl Every contractor(including sub
every contractor)must keep a complete
set of their own payrolls and other basic records such as
employee addresses and full
SSNs, time cards, tax records, evidence of fringe benefit 9 payments, for aDavis-Bacon
project for at least 3 years after the project is completed The
p prime contractor must keep
a complete set of all of the payrolls for every contractor includi
� ng subcontractors) for at
least 3 years after completion of the project.
f• RavE911 WIMcl In addition to submittin payrolls g p y s to the contract administrator, every
contractor (including subcontractors) must make their own copy of the payrolls and
other basic records available for review or copying
H UD or from DOL pY g to an y authorized representative from
.
2-4 DAVULEIA99N 12EEIbUIQ
Before we discuss how to complete the week) payroll for
ofd Y p Y ms, we need to review a couple
definitions. These definitions can help you understand what will be required of you:
a- "Laborers" and "mechanics" mean anyone Y who is performing
construction work on the project, including trade journeymen plumbers, sheet
metal workers, etc.), apprentices, and trainees and for
1NHSSA purposes, watchmen
and guards. "Laborers" and "mechanics" are the two ro
g ups of workers that must be paid
not less than Davis-Bacon wage rates.
1 Workina
Foremen or supervisors that of their time regularly spend end mor
��°o performing e than
p rming construction work and do not meet the exclusions
in paragraph 2 below are covered "laborers" and Amechanics" for
labor standards
purposes for the time spent performing construction work.
2. E People whose duties are rimaril
p y administrative, executive or
clerical are not laborers or mechanics. Examples include de superintendents, office
staff, timekeepers, messengers, etc (contact the contract t act r-idministrator if you
have any questions about whether a partfcular employee to
p y s excluded xcluded )
2-5
b• EMIDWyeft. Every person who performs the "employed"
P ork of a laborer or mechanic is
regardless of any contractual relationship
p h Bch may be alleged to exist between a
contractor or subcontractor and such person. This means that even if there •�s a contract
between a contractor and a worker, the t contra
car must make sure that the worker •�s
paid at least as much as the wage rate on the wage decision ge dec�s�on for the classification of work
they perform. Note that there are no exceptions t prevailing •
p o the preva�l�ng wage requirements for
relatives or for self-employed laborers and mechanics.
For more information about working subs - -
� antractors, ask the contract administrator or
your HUD Lobar Relations Field Staff for a co Relations of Labor Relat�ans Letter LR-gE-0�1
Labor standards compliance requirements for '
q elf-employed laborers and mechanics.
Labor Relations Letters and other helpful Labor •
p Relations publications are available at
HUD's Labor Relations web site (see the list of - -
web site addresses �n the Appendix),
�
PP d x).
c• The only workers who can be aid
p less than the wage rate on
the wage decision for their work classification are"a rentic
roved a pp es and trainees registered �n
approved apprenticeship or training programs. Approved programs
been registered with p g are those which have
g the DQL or a DOL-recognized State Apprenticeship
Apprentices and PP esh�p Council (SAC).
pp trainees are paid wage rates in accordance with •
the approved the wage schedule �n
pp program.
F of#er�, the apprenticeltrainee wa a rate is ex -
g pressed as a series of percentages tied
e amount of time spent in the program. For o .
. � P 9 example, g-� months. �5/0, 6 months
� year. 70/o, etc. The percentage is applied to the journeyman's Ba PP wage rate. on Davis-
Bacon projects, the percentage must be applied to the journeyman9s ap livable wa a de wage rate on the
p g vision for that craft.
1. PrgWignaa apj2ren A='probationary apprentice"can be aid as an
P apprentice
bless than the rate on the
wage decision) if the DOL or SAC has certified that th
person is eligible for probationary employment e
p y men t as an apprentice.
2. Pr A "pre-apprentice" that is, who is not registered in a
program and who hasn't been DOL-or SAC-certified for robs
is not considered �_ probationary
dered to be an apprentice and must be paid the f ull journeyman's rate on the wage d ecision for the classification
of work they P erform
3. Ratia gf aogrenficQs
The maximum number of
apprentices or trainees that you can use on the job site c
apprentices or cannot exceed the ratio of
pp trainees to journeymen allowed in the approved pp program.
gram.
d. Plevailing yKaaej or wa_G [at-ea, Prevailing wage rates are the wage rates listed on the
wage decision for the project. The wage decision will list a minimum basic hourly rate
of pay for each work classification. Some wage decisions include '
9 de fringe benefits which
are usually listed as an hourly fringe rate. If the wage decision includes '
g udes a fringe benefit
rate for a classification, you will need to add the fringe benefit rate t
g o the basic hourly rate
unless you provide bona fide fringe benefits for our employees.
Y
1 E!1ece:WQrk, Some employees are hired on a iece-wor
• p k basis, that is, the
employees earnings are determined by a factor of work roduced.
p For example,
a Drywall Hangers earnings may be calculated based upon th
sheetr P e square feet of
ock actually hung, a Painters earnings may be based upon
f Y p n the number
o units painted. Employers may calculate week! earnings base
Y g d upon
piece rates provided the weekly earnings are sufficient to satisfy sfy the wage
rate requirement based upon actual hours, including any overtime, worked.
Accurate time records must be maintained for an piece-work y P 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 involved.
e• Fringe benefits can include health insurance remiums
contributions life retirement
e insurance, vacation and other paid leave as well as some contributions
to training funds. Fringe benefits do not include employer payments or contributions
required by other Federal, State or local 'laws, such as the em to er� • P Y s contribution to
Social Security or some disability insurance payments.
Dote that the total hourly wage rate paid to an laborer or me (basic'
Y mechanic wage or basic
wage plus fringe benefits) may be no less than the total wage rate (basic •
. g wage or basic
wage plus fringe benefits) on the wage decision for their craft. !f '
the value of the fringe
benefit(s) you provide is less than the fringe benefit rate on t decision,g he wage decision, you will
need to add the balance of the wage decision o rate fringe benefit
g t the basic rate paid to
the employee. For example, if the wage decision requires $10/hour q basic rate plus $51
hour fringe benefits, you must pay no less than that total 15
�$ Ihour) in the basic 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 fated in the wage
i
decision, or you could pay $15 n base wage with no fringe benefits,efits, o r you could pay $12
basic plus $3 fringe benefits. You can also off-set the amount
of the base wage if you pay
more in fringe benefits such as by paying or $9 basic lus $5 fringe ge benefits, as fang as
you meet the total amount. The amount of the base you wage that may -
9 y yoff set with fringe
benefits is limited by certain IRS and FLSA requirements.
l
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 reqular rate of basic pay plus the straight-time rat f
required 1e nefits
9 e o any required fringe
2-7
9• QsdurAl You may make payroll deductions as permitted b DOL Regulations
Part 3, Y gulat�ons 29 DFR
These regulations prohibit the employer from requiring employees " •
q g p oyees to kick-back(i.e., give up) any of their earnings. Allowable deductions which
Bch do not require prior DoL
permission include employee obligations for income taxes Social al Security payments,
insurance premiums, retirement, savings accounts, and an other legally-permissible
Y
deduction authorized by the employee. Deductions may also be made for
payments on
judgments and other financial obligations legally imposed against the employee.
Referring, again, to our example above where • ' requiring
p re the wage decision a $15 total
wage obligation ($10 basic wage plus $5 fringe benefits was m '
9 et by paying $9 basa
wage plus$5 fringe benefits: Note that overtime rates must be based on one and one-half
times the basic rate as stated on the wage decision. In the above example, the employer
must pay for overtime: $15/hr ($9 basic + $5 fringe)9 � lus $5 p of $10, the wage
decision basic rate) for a total of$2o per hour.
h. PrQDQaeS1anatigj1of
You must select a work classification on the wage decision
for each worker based on the actual 9
type of work he/she performed and you must a each
worker no less than the wage rate o pay
g n the wage decision for that classification regardless
of their level of skill. In other word 9
s, if someone is performing carpentry work on the
project, they must be paid no less than the wage rate on the wage decision
� g ec�sion for carpenters
even if they aren't considered by you to be fully trained as a Carpenter. Rem
only people who p ember, the
Y p p can be paid less than the rate for their craft area apprentices and
reregistered in approved pp trainees
9 pp ed programs.
1. 121it-classift If you have employees that perform work in more than
one trade during a work week, you can pay the wage rates s
f � specified for each
classification in which work was performed maintain
only if you accurate time
records showing the amount of time spent in each classification
of work. if you do
not maintain accurate time records, you must Y employees a these
P p oyees the highest
wage rate of all of the classifications of work performed.
i. SitQ Otym The "site of work" is where the Davis-Bacon wage rates apply. Usually,
this means the boundaries of the project. "Site of work„ can also include other adjacent
or virtually adjacent property used by a contractor or subcontractor in the construction of
the project, like a fabrication site that is dedicated exclusively, or nearly so, to the protect.
�3
SECTION ll - REPORTING REQUIREMENTS
2-5 9QMPLETIUQ A E&13.QLL REPOR-w
What information has to be reported on the a roll form? Th
p Y e weekly payroll form doesn#
ask for any information that you don't already eed to keep p for wage payment and tax
purposes. For example, you need to know each employee's na '
classification me, his or her work
ssification (who is working for you and what do the h '
Y do?}, the ours worked during the
Week, his or her rate of pay, the gross amount earned how m '
� much did they earn?), the
amounts of any deductions for taxes, etc., and the net amount ai
p d {how much should
the paycheck be made out for?}. No more informa#ion than ou nee
n1 y d #o know �n order#o
manage your work crew and make certain they are paid ro erl . And '
p p y certainly, no more
information than you need to keep for IRS, Social Securi ty and other tax and employment purposes.
For many contractors the Week � ' .
Weekly Certified Payroll is the only Davis-Bacon paperwork
you need to submit! p p
You are required to submit certified payrolls #o illustrate and d docu meat that you have
complied with the prevailing wage requirements. The ur ose of#h
p p e contract administrator's
review of your payrolls is to verify your compliance. Clearer and complete payroll reports
will permit the contract administrator to complete reviews of your payroll reports quickly.
a. Prolg&Lgrrd gOntOCtgrLsubqgnt=or-information,, Each payroll must identify the
contractor or subcontractor's name and address, the ro•ect name p J e and number, and the
week ending date. Indicate the week dates in the spaces provided.p p ded. Numbering payrolls
is optional but strongly recommended.
b. Emolgyp,2 inforMatiQn. Effective January 2009 a
r]I , payrolls shall not report employee
addresses or full Social Security Numbers SSNs . Instead
� } , the first payroll on which
each employee appears shall include the employee's name and d an individually identifying
number, usually the last 4 digits of the employee's SSN. Afterward, the identifying number
does not need to be reported unless it is necessary distinguish gush between employees,
e.g., if two employees have the same name.
Employers (prime contractors and subcontractors) must maintain the current address
and full SSN for each employee and must provide this information upon request to the
contracting agency or other authorized representative responsible for federal labor
standards compliance monitoring. Prime contractors may re
y utr q e a subcontractor(s) to
provide this information for the prime contractor's records. DOL has modified form V11N--
347, Payroll, to accommodate these reporting requirements.
c 1_N9rh-glaSSification, q
Each employee must be classified in accordance with the wage
{iecision based on the type of work they actually perform
1• The first payroll on which any apprentice or trainee
appears must be accompanied by a copy of that apprentice's or trainee's registration
in a registered or approved program. A copy of the portions of the registered or
approved program pertaining to the wage rates and ratios shall also accompany
the first payroll on which the first apprentice or trainee appears.
2• it l For an employee that worked in a split classification, make
a separate entry for each classification of work performed distributing the hours of
work to each Y gross
g classification, accordingly, and reflecting the rate of pa and
earnings for each classification. Deductions and net pay may be based upon the
total gross amount earned for all classifications.
d• 11%jr1L.worked, The payroll should show ONLY the regular and overtime hours worked
on this project. Show both the daily and total weekly hours for each employee. If an
employee performs work at job sites other than the project forwhich the payroll is prepared,ared,those "other job"
hours should not be reported on the payroll. In these cases, you should
. Y
list the employee s name, classification, hours for this project only, the rate of p a Y and
gross earnings for this project, and the gross earned for all projects. Deductions and net
pay may be based upon the employee's total earnings (for all projects) for the week.
e. Show the basic hourly rate of pay for each employee for this project. If
the wage decision includes a fringe benefit and you do not participate in approved fringe
e g
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 r For any piece-work employees, the employer must
compute an effective hourly rate for each employee each week based
upon the employee's piece-work p earnings for that week. To compute
the effective hourly rate, divide the piece-work earnings by the total
number of hours worked, including consideration for any overtime hours.
The effective hourly rate must be reflected on the certified payroll and this hourly
rat y
e may be no less than the wage rate (including fringe benefits, if any) on the
wage decision for the classification of work performed. It does not matter that the
effective hourly rate changes from week-to-week, only that the rate is no less than
the rate on the wage decision for the classification of work performed.
LRemember, the overtime rate is computed at one and one--half times the basic rate of pay,
s any fringe benefits. For example, if the wage decision requires $10/hour basic plus
lhour frin ($10 � P fringe benefits, the overtime rate would be. x 1 /z} + $5 = $20/hour.
f. gaoslyyaues earl Show the gross amount of wages earned for work performed on
this � p
s project. Note- For employees with work hours and earnings on other projects, Y ou
may show gross wages for this project over gross earnings all projects (for example,
3425 40/$764 85) and base deductions and net pay on the `all s.projects' earnings.9
'-�0
g. Qaductign& 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. Show the net amount of wages paid.
i. o Gomuli The Statement of Compliance is the certification. It is W.
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.
.
Skaugurg, 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.
SECTION III - PAYROLL REVIEWS AND CORRECTIONS
2-6 9-QMPLJAMgLREMIF0WS.
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.
You will be given instructions about what steps must be taken to correct any problems.
a. Qn-sile-,inter&&s. 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 properly
listed on the payrolls for the days and hours worked on the job site, work classification
and rate of pay. The contract administrator will also review the payroll submissions to
make certain that the payrolls are complete and signed; that employees are paid no less
than the wage rate for the work classification shown; apprentice and trainee certifications
are submitted (where needed); employee or other authorizations for other deductions are
submitted (where needed); etc.
2-7 TYPLqAL EMR!QLL EIRBOEMANQ REQUIRFmD CQRREQJ10N�%
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. I If an alternate payroll format used by an employer(such
as some computer payrolls) is inadequate, e.g., does not contain all of the necessary
information that would be on the optional form WH-347, the employer will be asked to
resubmit the payrolls on an acceptable form.
b. Mi-as I f the first payroll on which an employee appears does
not contain the employee's individually identifying number, the employer will be asked
to supply the missing information. This information can be reported on the next payroll
submitted by the employer if the employer is still working on the project. Otherwise, the
employer will be asked to submit a correction certified payroll_
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• Classificatigl3a. if the payrolls show work classifications that do not appear on the wage
e g
decision, the employer will be asked to reclassify the employees in accordance with the
y
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 wage rate 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. Mae ra if the wage rates on the payroll are less than the wage rates on the wage
g
decision for the work classifications reported, the employer will be asked to p ay wage
restitution to all affected employees.
f. Ai3or9.nt1cej._and__traineQ% if a copy of the employee's registration or the approved
g PP
program ratio and wage schedule are not submitted with the first payroll on which an
Y
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
9
schedule. if the ratio of apprentices or trainees to journeymen on the a roil is greater
PY g
th an the ratio in the approved program, the employer will be asked to p ay a wage restitution
g
to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered
inana journeyman's g pproved program must receive the wage rate for the classification of
work they performed.
g. Overt a if the employees did not receive at least time and one-half for any overtime
hours worked on the project, the following will occur:
1. if the project is subject to CWHSSA overtime requirements, the employer will be
asked to pay wage restitution for all overtime hours worked on the project. The
. P 1
employer may also be fable 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 DOL for further review.
h. if the payroll computations(hours worked times rate of Y�a or extensions
P
(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. 0,9dua mss. if there are any "Other" deductions that are not identified or if ee em to
P Y
authorization isn't provided, or if there is any unusual (very high,h, or tare number)
)
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 attempt.to provide p p e advice on employer obligations to make
deductions from employee earnings for taxes or Social Security. However HUD may
y
refer to the IRS or other responsible agency copies of certified P reports roll that show
wages paid in gross amounts ('i.e., without tax deduction) for its review and appropriate
ro riate
action.
i. Erinae blin If the wage decision contains fringe benefits but the P a Y roll does not
indicate how fringe benefits were paid [neither 4(a] nor 4(b) is marked on the Statement
of Compliance], the employer may be asked to submit correction certified payrolls and
• - P Y
will be required to pay wage restitution if underpayments occurred. However, if the basic
hourly rates for the employees are at least as much as the total wage rate on the wage
decision (basic hourly rate plus the fringe benefit rate), no correction is necessa ry.
k. SJctngMr2., If the payroll Statement of Compliance is not signed or is missing,the employer
to P Y
will be asked to submit a signed Statement of compliance for each payroll affected. If the
. P Y
Statement of Compliance is signed by a person who is not a principle of the firm and that
person has not been authorized by principle to sign, the employer will be asked to provide
. P
an authorization or to resubmit the Statement(s) of Compliance bearing the signature of
. 9 9
a principle or other authorized signatory.
Q[1-site inte 0 ___�_C.Q aria If the comparison of on-site interviews to the payrolls
indicates any discrepancies (for example, the employee does not appear the payroll
PP on P Y
for the date of the interview), the employer will be asked to submit a correction certified
payroll report.
Any and all changes to data on a submitted payroll report
m. P Y P
must be reported on a certified correction payroll. I n no case will a payroll report be
. P Y p
returned to the prime contractor or employer for revision.
2w8 RUBTUT19N EQfJ LIJMDE&�MMENT .Qf WAG
Where underpayments of wages have occurred, the employer will be Pa required to
� Y
wage restitution to the affected employees. Wage restitution must be in the
aid
P promptly
full amounts due, less permissible and authorized deductions. All P
wages aid to laborers
g
and mechanics for work performed on the project, including wage restitution, must be
reported on a certified payroll report.
a. Ngtifigatign to the Employer/prime contractor. The contract administrator will notify the
employer and/or prime contractor in writing of any underpayments that are found during
payroll or other reviews. The contract administrator will describe the underpayments a ments and
provide instructions forcomputing and documenting the restitution tobe aid. Theemployer/
P
prime contractor is allowed 30 days to correct the underpayments. Note that the P rime
contractor is responsible to the contract administrator for ensuring that restitution is P aid. If
the employer is a subcontractor, the subcontractor will usually make the computations and
restitution payments and furnish the required documentation through the prime contractor.
2-14
F e contract administrator may communicate directly with a subcontractor when the
derpayments are plainly evident and the subcontractor is cooperative. It is best
o work through the prime contractor when the issues are complex, when there are
significant underpayments and/or the subcontractor is not cooperative. In all cases,
the subcontractor must ensure that the prime contractor receives a copy of the required
corrective documentation.
b• Wage restitution is simply the difference between the wage
rate paid to each affected employee and the wage rate required on the wage decision
for all hours worked where underpayments occurred. The difference in the wage rates
is called the adjustment rate. The adjustment rate times the number of hours involved
equals the gross amount of restitution due. You may also compute wage restitution by
calculating the total amount of Davis-Bacon wages earned and subtracting the total
amount of wages paid. The difference is the amount of back wages due.
c. ' ' The employer will be required to report the restitution
paid on a correction certified payroll. The correction payroll will reflect the period of time
for which restitution is due (for example, payrolls #1 through #6; or a beginning date and
ending date). The correction payroll will list each employee to whom restitution is due and
their work classification; the total number of work hours involved (daily hours are usually
not applicable for wage restitution); the adjustment wage rate (the difference between
the required wage rate and the wage rate paid); the gross amount of restitution due;
deductions and the net amount actually paid. A properly signed Statement of Compliance
must accompany the correction payroll.
HUD no longer requires the signature of the employee on the correction payroll to evidence
employee receipt of restitution payment. In addition, except in the most extraordinary
cases, HUD no longer requires employers to submit copies of restitution checks (certified,
cashiers, canceled or other), or employee-signed receipts or waivers.
d. Reyi2]y of_gMregt1onCPR. The contract administrator will review the correction certified
payroll to ensure that full restitution was paid. The prime contractor shall be notified in
writing of any discrepancies and will be required to make additional payments, if needed,
documented on a correction certified payroll within 30 days.
e. Unfg1jad Mrk Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be located. After wage
restitution has been paid to all of the workers who could be located, the employer must
submit a list of any workers who could not be found and paid (i.e., unfound workers)
providing their names, Social Security Numbers, last known addresses and the gross
amount due In such cases, at the end of the project the prime contractor will be required
2-1 `)-
to place in a deposit or escrow account an amount equal to the total gross amount of
restitution that could not be paid because the employee(s) could not be located. The
contract administrator will continue attempts to locate the unfound workers for 3 years
after the completion of the project. After 3 years, any amount remaining in the account for
unfound workers will be credited and/or forwarded by the contract administrator to HUD.
-16
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW
ACCOUNTS, AND SANCTIONS
WHAT EjAf!PENS_WH.EN THIN QQ WRONG?
3-1 INTRODUCTION.
Even in the best of circumstances, things can go wrong. In a Davis-Bacon context,
'things going wrong usually means there's a difference of opinion or a dispute about
whether and to what extent underpayments have occurred. These disputes are usually
between the contract administrator and one or more employers (the prime contractor and/
or a subcontractor). The dispute may involve something simple such as an additional
classification request that is pending before the DOL; or something as significant as
investigative findings following a complaint of underpayment. This chapter discusses
some of what you may expect and what you can do to make your views known and to
lessen any delays in resolving the problem or issue.
3-2 ADMINISTRATIVE 8U1FwW.QN LAB0&SjMDAM_QMUjE%,
As mentioned in the Introduction above, a dispute about labor standards and compliance
can arise for a number of reasons. The labor standards clauses in your contract and DOL
regulations provide for administrative review of issues where there is a difference of views
between the contract administrator and any employer. The most common circumstances
include:
a. Additional classificatinnc and waae rates Additional classification and wage rate
requests are sometimes denied by the DOL. An employer that is dissatisfied with the denial
can request reconsideration by the DOL Wage and Hour Administrator. The employer
may continue to pay the wage rate, as requested, until a final decision is rendered on
the matter. When the final decision is known, the employer will be required to pay any
additional wages that may be necessary to satisfy the wage rate that is established.
1. Reconsideration. The DOL normally identifies the reasons for denial in its
response to the request. Any interested person (for example, the contract
administrator, employer, representatives of the employees) may request
reconsideration of the decision on the additional classification request. The
request for reconsideration must be made in writing and must thoroughly
address the denial reasons identified by the DOL. Employer requests for
reconsideration should be made through the contract administrator but may
be made directly to the DOL. (See 2-2(d), and also DOL Regulations 29 CFR
1.8.) All requests initiated by or made through the contract administrator or HUD
must be submitted through the HUD Headquarters Office of Labor Relations.
3-1
2• Administraftyll.R r Bg Any interested pa re a review of th
party may request q e
Administrator's decision on reconsideration by the DOL's Administrative Review
Board. DOL regulations 29 CFR Part 7 explain the procedures for such reviews.
(See also 29 CFR 1.9.)
b• Compliance reviews and other follow-up enforcement
actions may result in findings of underpayment. The prima goal in
primary eve case and at
9 every
every step in this process is #o reach agreements about who may have been underpaid
. Y p
and how much wage restitution may be due and, of course, to rom ti Y deliver restitution
p p
to any underpaid workers. The contract administrator will usual/ work informal/ with you
Y Y Y
to reach such agreements. You will have an opportunity to provide additional information
to the contract administrator that may explain apparent inconsistencies and/or resolve the
discrepancies.
If informal exchanges do not result in agreement, the final determination and schedule
of back wages due will be presented #o you in writing and you will be permitted 3o days
in Y p ys
in which to correct the underpayment(s) or to request a hearing n the matter before th
. . . g e
DOL. The request for hearing must be made in writing through the contract administrator
. 9 or
and must explain what findings are in dispute and the reasons. In such cases HUD
is
required to submit a report to DOL for review and further consideration. All requests for
DOL hearing must be submitted through the HUD Headquarters office of Labor Relations.
1. WL The DOL will review the contract administrator's report and the
e
arguments against the findings presented in the hearing request. The DOL may
affirm or modify the findings based upon the materials presented. You will be notified
in writing by the DOL of the results of its review. If DOL concludes that violations
Y underpay have occurred, you will be given an opportunity to correct an under a men#s or
to request a hearing before a DOL Administrative Law Judge g e �See DOL
Regulations 29 CFR 5.11 (b)and 29 CFR Part 6, Rules of Practice forAdministrative
Proceedings.)
2. Adm 113jj tratlye R- Do Contractors and/or subcontractors may request a
review by the Administrative Review Board of the decision(s) rendered by the DOL
ALJ in the administrative hearing process. See DOL regulations 29 CFR Part 7 for
9
more information about this proceeding.
3-3 )N1TLWQLQjNQ,
The contract administrator shall cause withholding from payments due to the prime
contractor to ensure the payment of wages which are believed to be due and unpaid,
for example, if wage underpayments or other violations are not corrected within
39 days
after written notification to the prime contractor. DOL may also direct the withholding
Y old ng
of contract payments for alleged wage underpayments. Withholding is
. g considered s dered to
be serious and is not taken unless warranted. if withholding s deemed necessary,ry, you
Will be notified in writing. Only the amounts needed to meet the contractor's and/or
subcontractors') liability shall be withheld.
3-2
3-4 QgP!Q§ITS AHQ =EQW
In every case, we attempt to complete compliance actions and resolve any disputes
u#es
before the project is completed and final payments are made. Sometimes corrective
actions or disputes continue after completion and provisions must be made to ensure
that funds are available to pay any wage restitution that is ultimately found due. In these
cases, we allow projects to proceed to final closing and final payments P
rovided the rime
P
contractor deposits an amount equal to the potential liability for wage restitution and
liquidated
quidated damages, if necessary, in a special account. The deposit or escrow account is
controlled by the contract administrator. When a final decision is rendered, the contract
administrator makes disbursements from the account in accordance with the decision.
Deposit/escrow accounts are established for one or more of the following reasons:
F member,the prime contractor is res onsible and will ' i p be held liable for any wage rest�tut�on
at is due to any worker employed in the construction of the roect, includin workers
P � g ployed by subcontractors and any lower-tier subcontractors. See 1-4, Responsibility
of the Principal Contractor, and 2-8, Restitution for es.Underpayment of Wages.
g
a. Where the parties have agreed to amounts of wage restitution that are due but the
employer hasn't furnished evidence yet that all of the underpaid workers have received
their back wages, e.g., some of the workers have moved and could not be located. The
amount of the deposit is equal to the total gross amount of restitution due to workers lacking
payment evidence. As these workers are paid and proper documentation is P rovided
to the contract administrator, amounts corresponding to the documented P Y a men#s are
returned to the depositor.Amounts for any workers who cannot be located are held in the
deposit/escrow account for three years and disposed as described in 2-8 of this Guide.
b. Where underpayments are suspected or alleged and an investigation has not e
g yet
been completed. The deposit is equal to the amount of wage restitution and any liquidated
damages, if applicable, that are estimated to be due. If the final determination of wages
due is less than the amount estimated and placed in the escrow account, the escrow will
be reduced to the final amount and the difference will be returned to the depositor.
If the parties agree to the investigative findings, the amounts due to the workers will be
paid by the employer. As these workers are paid and proper documentation is P rovided to
the contract administrator, the gross amounts corresponding to the documented P Y a ments
3 re returned to the depositor.
1 . if the employer is unable to make the payments to the workers, e.g , lacks the
funds necessary, the contract administrator may make disbursements directly to
the workers in the net amounts calculated by the employer. The amounts withheld
from the workers for tax deduction will be returned to the s employer payments to
P
Workers are made. The employer shall be responsible for reporting and transmitting
,vithholdings to the ippropriate agencies
"3 �3
2. if the employer is not cooperating in the resolution, the contract administrator shall
make disbursements to the workers in accordance with es the schedule of wages
. 9
due. Amounts for unfound workers will be retained as described above See 2-8(Q
and 3-4(a)}.
If the parties do not agree and an administrative hearing is requested, the escrow will be
maintained as explained in 34(c), below.
Remember,ifyou have any questions or need assistance concerning laborsta
g ndards
requirements help is always available, contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in Y our area.
c. Where the parties are waiting for the outcome of an administrative hearing that has
been or will be requested contesting a final determination of wages due. The deposit
9 p
shall be equal to the amount of wage restitution and liquidated damages, if applicable,
g pp ,
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 ADMtNJSTJ3ATlyEaAN.QTL0%
Contractors and/or subcontractors that violate the labor standards rovisions may face
p Y
administrative sanctions imposed by HUD and/or DOL.
a. DOL debarn3eni, Contractors and/or subcontractors that are found b y the Secretary
of Labor to be in aggravated or willful violation of the labor standards p rovisions of the
Davis-Bacon and Related Acts (DBRA) will be ineligible (debarred) to artici ate in an
p p Y
D BRA or Davis-Bacon Act contracts for up to 3 years. Debarment includes the contractor
or subcontractor and any firm, corporation, partnership or association in which the
contractor or subcontractor has a substantial interest. Debarment proceedings can be
recommended by the contract administrator or can be initiated by the DOL. Debarment
proceedings are described in DOL regulations 29 CFR 5.12.
b. HQ D.a a n glio HUD sanctions may include Limited Denials of Partici ation p (LDPs),
debarments and suspensions.
1 Umited DelliW of_Part1g*UdJ*
HUD may issue to the employer a limited denial
p P
of participation (LDP) which prohibits the employer from further participation in
HUD programs for a period up to one year. The LDP is usually effective for the
HUD program in which the violation occurred and for the geographic jurisdiction of
the Issuing HUD Office. HUD regulations concerning LDP's are found at 24 CFR
24.700-24.714.
2• In certain circumstances, HUD may initiate its
Y own
debarment or suspension proceedings against a contractor and/or subcontractor
in connection with improper actions regarding Davis-Bacon obligations. For
o r
example, HUD may initiate debarment where a contractor has been convicted for
making false statements (such as false statements on certified p a Y rolls or other
prevailing wage certifications) or may initiate suspension where a contractor has
been indicted for making false statements. HUD regulations concerning debarment
t
and suspension are found at 24 CFR Part 24.
3-6 FALSIEICAMN QECEMIFIED E&ROLL REaQRJ%
Contractors and/or subcontractors that are found to have willfully falsified payroll reports
(Statements of Compliance), including correction certified payroll reports, may b
. p Y p y e subject
to civil or criminal prosecution. Penalties may be imposed of $1,000 and/or one ear i
Y n
prison for each false statement (see Section 1001 of Title 18 and Section 231 of Title
31
of the United States Code).
Remember,ifyou have an questions or assists ' s
Y q assistance concern Ong laborstandard
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in Y our area.
ACRONYMS AND SYMBOLS
C D BG w Community Development p nt Block Grant
CFR - Code of Federal Regulations
CPR, Certified Payroll Report _
CWHSSA- Contract Work Hours and Safety Standards Act
DBA Davis-Bacon Act
DBRA- Davis-Bacon and Related Acts
Doi.4w Dd artment of Labor-,
abor
FHA- Federal Housing Administration
FLSA- Fair Labor Standards Act
HUD - Housing and Urban Development artment o De
� p f)
1HA- Indian Housin g Authority
LCA- Local Contracting Agency
LDP- Limited-Denial of Participation
OIT- Overtime
PHA- Public Housing Agency
SIT- Straight-time
SAC - State Apprenticeship Council/Agency
9
TDHE - Tribally-Designated Housing Entity
§ - Section
_ paragraph
DAVIS-BACON - RELATED WEB SITES*
HUD Office of Labor Relations:
www.hud.gov/offices/olr
HUD Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.actin n?collectionCode=C FR
HUDCIips (HUD Forms and Publications):
www.hud.gov/offices/adm/hudclips/index.cfm
DOL Davis-Bacon and Related Acts Homepage:
http#//www.dol-gov/whd/contracts/dbra.htm
DOL Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.action?collection Code=C F R
Davis-Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www.dol-gov/whd/programs/dbra/forms.htm
*Web addresses active as of January 2012
A-2
i
U.S. Department of Housing
Project Wage Rate Sheet and Urban Development
Office of Labor Relations
Project Name: Wage Decision Number/Modification Number:
Project Number: Project County:
Work., .� '`
Basle.,-.
F�ng� Total Laborers
Hourly - Houriy:L:Classiflcatton Benefits;Rate(BHR)
Wage Rats Benefits_
Bricklayers $ Group# BHR"; Total Wage
Carpenters $ $
Cement Masons $ $
Drywall Hangers $
Electricians $ $
Iron Workers $ $
Painters $ Operators Fringe 6anoflb:;
Plumbers $ Group# BHR Total Wage
Roofers $ $
Sheet Metal Workers $ $
Soft Floor Workers $ $
Tapers $ $
Tile Setters $ Truck DrIvors Fringe Banoflb:
Other Classifications Group# 8HR Total Wage
Additional Classifications (HUD Form 4230.A)
Work Basta Total Date of
Fringe Date of
Classification Rat BHR) Benefits Hourly
Rate HUD Submission DOL
9 to OOL Approval
3
S
3
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on the
`.anitr;xvr a .:ctracar )
tthig ounrey the payrai lAr104 commencing an ghee
l 13+s4r Of Worst
y ;Al end sr iaiii tr s say d
••+ �.« 1.01b err+04.4404 kiwi.►A Nit... Dino, 0...3 M. ILA airily +tM ai smed. ma no reDatas have
beer. .x "as be moos either wx► y six is- air rK:u y tO Or an Done i4 sm.d
tarn the fait
ti..xaa.X�x .7r ,r,irtiU&lot)
ori....•, +..r+111 earned by any ;.vir r«..1 a<a vurt no erns ha.. worn magi* .an ¢suit) or inairewy
rcnr mat art *WAN sarnw by any wean other Man perms...wee aeck.iwons as pained in Runs. Part
3 t a► C A 114Mis A) 1114u4l1 by tea xrtary ed Labor wr+err the C+opillaria Act, as amended (48 Seal pig.
43 same Kid 72 5 647 7e Us 3b 7 eu U S C 1314S). area described belowr
r , T Nit P4111.111 b.[rWW1 crux c.c.s/act r +...ea to to ei.otimottard SO/ the vibOve prrnad ors
_..=.+.�i beep wen fiev is Wirt Wad moo rants k r +hearers or rrmscn+ns Ctaamn a therein are nail*** than the
amigo rates cur**ii.d in any reqa daterminaocri incorporated into the contract: that the
•••�•� .ins sa tom ma n s soul iao.Xer or snectia ilc c morel ran the *grit he prtrrmed-
'3, Trial any 444araru,..sa ?r' 4 are racy reiotered in a bona ha*
■vrr v GrUJarn r ircreo wM a starve appre Licaorwp agency nicCgnited by tuts 8441riu of
"��..►entiutsrap and Treeri.ng united iiIILAre CnGarknant Of L. OC. r or d no such rtcognusd aOer y eases m a
&teas rs r•amterep ,yeti tree &B a, or Aiofellelik;011110 and Trani, Un4410 States Department of Labor_
r + T eat
.a, v►rr+ [E t•rttat.ut bcrrtrITs As PAti) TO APPROVED PLANS. FUNDS. OF( PROGRAMS
on cat►e Gas•: n...rmy *rya rites pad to each taborer or mechanic initial in
the aixs r ei. e< ,..y r i e papherits d tm yo osnsits as kited in the contract
ha, ■ Leen . s wW tie moue Ii) apfriccohata pcoora iris for Me bruit of socti
em i:a:4esL except as rm ctad n sectean itc) boom
%Di JE FRINGE BENEFITS ARE PAU) IN CA511
— Each laborer or mechanic listed in the dopy. referenced payroll his been paid.
as indicated on the payroll. an amount not lees than Use aim of Me applicable
basic hourly weep rata plus the amount of Le required trines benefits as Wald
in Use oaract, except as noted in sec on 4(c) behow.
(c) EXCEPTIONS
EXCEPTION (CRAFT) EAPLM&AT(JN
r.:+r 't.GTITLE
Sh;$AT Ukt
Lest '.�SttFJt F+,� �F�nT�.h Cl k4iY vi= Try MW'YE STATEI4ENrS MA* THE (:I41Tk•.:T(r irk
y.rli_ �tr T M��Tvit Tt� Csv1y. ‘,F ii.MK*i. i +..,.iECUTK K ,.fit CT 101)1 V1' TITLE is ANC., SECT KA 2.31 OF TITL,
I
U.S. Department of Housing and Urban Development
Office of Departmental Operations and Coordination
Washington, DC 20410
Email: www.OfficeofLaborRelations @hud.gov
Labor Relations Desk Guide
LR01.DG
b ''f+ti' •nr%5aTI-,%*I t
EYHIBIT "H-5"
START OF CONSTRUCTIOY FORM
City of Fort Worth
Community Development Block Grant(CDBG) Funded
Construction Projects
START O F 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
(Address) (City/Town)
(State) (Zip
has started
ed work on the above referenced project covered b our
contract with you, as of
(Date)
Respectfully yours,
(Name of Company)
By
(Signature)
� ritle�
EYHIBIT "H-6"
CONSTRUCTION COMPLETE FORM
J
City of Fort North
Community Development Block Grant(CDBG) Funded
Construction Pro jests
CoNSTRUC`TIO&QO...MLETL
Date:
Project Name:
Project Location:
Project Number.
U.S. Department of Labor wage Decision:
This to inform you that the:
(Dame of Company)
of
(Address) (City/Town)
(State) (Zip) has terminated work on the above referenced project covered
by our contract with you, as of
Respectfully yours,
(Name of Company)
ny
(Signature)
EYHIBIT 46H-7"
EEO STATEMENT
STATEMENT OF POLICY ON
EQUAL EMPLOYMENT OPPORTUNITY
It will be the policy of this firm to not discriminate against any applicant for employment, or an
employee, Y
because of race, creed, color, age,sex, or natural origin. This firm will insure that this
policy is continually enforced with regard to employment,promotion,upgrading,demotion transfer,
recruitment, and recruitment advertising, lay off and termination, compensation, training,p g,
working conditions. we will make it understood by all with whom we deal, and in all our
employment opportunity announcements that the foregoing is our policy. All applicants and
employees will be judged solely on the basis of their skill,devotion loyalty,reliability and integrity.
ty ty g�ty.
Company Name
Signature
Date
EYHIBIT 6611-8"
PAYROLL DEDUCTION AUTHORIZATION FORM
Pavroll 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 8. Profit Sharing
3. Advance on Wages 9. Donations to Agencies
4. Savings 19. Insurance Premiums
5. Savings Bonds 11. Union Dues
6. Uniforms 12.
*This deduction is to be made:
CHECK APPROPRIATE BOX one time only
Weekly
Bi-weekly
For weeks
Date:
Employee's Signature
Printed or Typed Name:
Project Name and Number-
F, I Jk 8 V I q t 11.714 ' 4 %aVTill *I"kIItV1xIt
EYHIBIT "H-9"
OFFICER APPOINTMENT FORM
U. S. Department of Mousing and Urban Development
p n#
CERTIFICATE FROM CONTRACTOR Apps
G OFFICER OR EMPLOYEE
TO SUPERVISE PAYMENT OF EMPLOYEES
Project Name
Date
Location
Project No.
(I)(we) hereby certify that(I am)(we are) rime the co n
( p tractor) (a subcontractor) for
in connection with construction of the above-mentioned Pray'
ect, and that (1)(we) have appointed
wh §e usmature a22= below, 3u2Mise the Day=t 2f(MyJ.(ourJSmv1oVeo
20.; that he/she is in a position to have full knows
document edge of the facts
set forth in the
payroll s and in the statement of compliance required b the so-
Kick-Back Statute which he/she is to ex � � so-called
execute with (my} (our) t'uii authority and approval unfit
such time as (0(we) submit to p
a new certificate appointing some other person for the oses u '
p rp her'ernabove stated.
Attest(if required):
(S i gnature) Sy:
(Title) --
---------------------------------------------------_______-_______-__________
DoT ______________
E: This certificate must he c.���uted by�3.n ��uthon red o - •
t�c.�r at a corporation, by a member
()(a partnership, or the sole owner :end Khali he execute
pnor to and he submitted with the ti rat
payT011. hc�uld the :3ppoinrc:e be changed, a new c�srti tic.�te m •
must accompany the first pay-rol i for
5.w htch the nc:w ��pp(�,ntec executes a titateTnent tA com l i an
p c.e rerlutred by the dick-Back Statute.
DALDAO-1340.3/2
(6-79)
EYHIBIT "["
DEED OF TRUST FORM
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT 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: , 20
Grantor: Tarrant County Housing Partnership, Inc.
a Texas non-profit corporation.
Grantor's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76 107
Trustee: Vicki S. Ganske or Leann Guzman
Trustee's Mailing Address:
CIO City Attorney's Office
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76 102
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Lender's Mailing Address:
CIO Housing Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76 102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et se q.
q
(the "HOME Program") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Obligation
Note
Date: , 20
Original principal amount: $1 14,900.00
Borrower: Tarrant Count`- Housing Partnership. Inc.. a Texas non-profit
corporation
DEED OF TRUST TCHP Page 1
CSC No. C-24293 Rev. 5-17-13
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Maturity Date: , Zo
Property (including any improvements):
SEE EXHIBIT"A"ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive rights, whether of record or not; all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of the Obligation, Grantor conveys the Property
to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other
amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender
will release it at Grantor's expense.
Clauses and Covenants
A. Grantor's obligations
Grantor agrees to
I. beep the Property in good repair and condition;
Z. pay all taxes and assessments on the Property before delinquency and provide proof
of payment of same upon request by Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a form acceptable to Lender, an insurance policy that
a. covers all improvements for their full insurable value as determined when
the policy is issued and renewed, unless Lender approves a smaller amount
in writing:
b. contains an 80 percent coinsurance clause;
1)I;F I)OF T R I J S T TC'11P Pa^e 2
CSC No. C,-?4293 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;
5. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. keep any buildings occupied as required by the insurance policy;
9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior
lien notes and abide by or cause to be abided by all prior lien instruments; and,
10. notify Lender of any change of address.
B. Lender's Rights
1. Lender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
2. If the proceeds of the obligation are used to pay any debt secured by prior liens,
Lender is subrogated to all the rights and liens of the holders of any debt so paid.
3. Lender may apply any proceeds received under the insurance policy either to reduce
the obligation or to repair or replace damaged or destroyed improvements covered by the policy.
If the Property is Grantor's primary residence and Lender reasonably determines that repairs to
the improvements are economically feasible, Lender will make the insurance proceeds available
to Grantor for repairs.
4. Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the obligation or this
Deed of Trust may, at Lender's discretion, be applied first to amounts payable under this Deed of
Trust and then to amounts due and payable to Lender with respect to the obligation, to be applied
to late charges, principal, or interest in the order Lender in its discretion determines.
5. If Grantor fails to perform any of Grantor's obligations. Lender may perform those
obligations and be reimbursed by Grantor on demand for anv amounts so paid. including
attorney*s tees. plus interest on these amounts from the dates of payment at the rate stated in the
DF:L D OF TRUST TCHP Page
C'SC No. C-21429-) Rev. 5-17-13
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may
a. declare the unpaid principal balance and earned interest on the Obligation
immediately due;
b. direct Trustee to foreclose this lien, in which ease Lender or Lender's
agent will cause notice of the foreclosure sale to be given as provided by
the Texas Property Code as then in effect; and
C. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default,
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting from damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender or its agents may 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,
G. Trustee's Rights and Duties
If directed by Lender to foreclose this lien, Trustee will
1. either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect;
2. sell and convey all or part of the Property "AS IS"" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the other Exceptions to
Conveyance and Warranty and without representation or warranty, express or implied, by
Trustee;
3. from the proceeds of the sale. paN-. in this order---
a. expenses of foreclosure. including a reasonable commission to Trustee;
DE-F 1)OF TR['S] FC[iP
C-2429-3 Pae 4
1.
CSC No. Rev. 5-17-13
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
C. any amounts required by law to be paid before payment to Grantor; and
d. to Grantor, any balance; and
4. be indemnified, held harmless, and defended by Lender against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created
by this deed of trust, which includes all court and other costs, including attorney's fees, incurred
by Trustee in defense of any action or proceeding taken against Trustee in that capacity.
D. General Provisions
I. If any of the Property is sold under this Deed of Trust, Grantor must immediately
surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any trustee's deed conveying the Property will be presumed to be true.
3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any
other remedy will not constitute an election of remedies.
4. This lien will remain superior to liens later created even if the time of payment of
all or part of the Obligation is extended or part of the Property is released.
5. If any portion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. Grantor assigns to Lender all amounts payable to or received by Grantor from
condemnation of all or part of the Property, from private sale in lieu of condemnation, and from
damages caused by public works or construction on or near the Property. After deducting any
expenses incurred, including attorney's fees and court and other costs, Lender will either release
any remaining amounts to Grantor or apply such amounts to reduce the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and receipts from the Property. Grantor warrants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of
Trust. Cirantor ,�N,ill apple all rent and other income and receipts to payment ofthe Obligation and
DEED OF TRUST TCHP
Page 5
CSC' No. C-24293 Rev. 5-17-13
performance of this Deed of Trust, but if the rent and other income and receipts exceed the
amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess. If
Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender may
terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent
the Property and collect all rent and other income and receipts. Lender neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the Property. Lender may
exercise Lender's rights and remedies under this paragraph without taking possession of the
Property. Lender will apply all rent and other income and receipts collected under this paragraph
first to expenses incurred in exercising Lender's rights and remedies and then to Grantor's
obligations with respect to the Obligation and this Deed of Trust in the order determined by
Lender. Lender is not required to act under this paragraph, and acting under this paragraph does
not waive any of Lender's other rights or remedies. If Grantor becomes a voluntary or
involuntary debtor in bankruptcy, Lender's filing a proof of claim in bankruptcy will be deemed
equivalent to the appointment of a receiver under Texas law.
8. Interest on the debt secured by this Deed of Trust will not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received
under law. Any interest in excess of that maximum amount will be credited on the rind al of
p p
the debt or if that has been paid, refunded. On any acceleration or required or p ermitted
prepayment, any such excess will be canceled automatically as of the acceleration or prepayment
or if already paid, credited on the principal of the debt or, if the principal of the debt has been
paid, refunded. This provision overrides any conflicting provisions in this and all other
instruments concerning the debt.
9. In no event may this Deed of Trust secure payment of any debt that may not
lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law.
10. When the context requires, singular nouns and pronouns include the plural.
11. The term Note includes all extensions, modifications, and renewals of the Note
and all amounts secured by this Deed of Trust.
12. This Deed of Trust binds, benefits, and may be enforced by the successors in
interest of all parties.
13. If Grantor and Borrower are not the same person, the term Grantor includes
Borrower.
14. Grantor and each surety, endorser, and guarantor of the Obligation waive all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice
of acceleration of maturity. protest. and notice of f protest. to the extent permitted by law.
[irantor agrees to pax reasonable attorneN"s tees. trustee's Pecs, and court and
DF.F D()F TR[]ST TC HP Pace 6
C'SC' No. C'-24293
Rev. 5-]7-13
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
unenforceable, the validity or enforceability of any other provision will not be affected.
17. The term Lender includes any mortgage servicer for Lender.
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property; the debt is secured both by the Deed of Trust and by a vendor's lien on
the Property, which is expressly retained in a deed to Grantor of even date. This
Deed of Trust does not waive the vendor's lien, and the two liens and the rights
created by this Deed of Trust are cumulative. Lender may elect to enforce either
of the liens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the transferee will acquire title to all
insurance policies on the Property including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and 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 prior written consent.
"Permitted transferee" means any other person controlling, controlled by, or under common
control with Grantor. Lender shall not exercise this option if federal law as of the date of this
Deed of Trust prohibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTIONS:
The Note is the Note required in City Secretary Contract No. between Grantor
and Lender dated , 20 and has been executed and delivered in accordance
with that contract (the "Contract"). The funds advanced by Lender are HOME funds and
the Contract requires that the residential housing located on the Property and constructed
with a portion of the HOME funds must qualify and remain affordable housing in
accordance with the HOME Program and the HOME Regulations for a specified time
period as more particularly described in the Contract (the "Affordability Period'"). The
loan evidenced by the Note and secured by this Deed of Trust will be in default and the
Principal Amount and any other sums due thereunder may be declared immediately
payable if all of the residential housing located on the Property is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
This I)eed of' Trust has also been executed and de l I N-ered pursuant to the terms of' the
DEED OF TRUST - TCHP Page 7
CSC No. C-24293 Rev. 5-17-13
Contract. Grantor agrees to perform each and every obligation set forth therein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contract or the HOME Program or HOME Regulations
shall be deemed a default in the terms of the Note and Lender may declare the debt
secured by this Deed of Trust immediately payable and invoke any remedies provided
herein for default.
22. Provided that Grantor is not in default under any of the terms and conditions of
this Deed of Trust, the Note, or the Contract, and provided no event has occurred that, with
notice, passage of time, or both, will become an event of default, Grantor is entitled to partial
releases of the lien of this Deed of Trust.
23, THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL
AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
STATE OF TEXAS
COUNTY OF TARRANT
This instrument was acknowledged before me on , 20 by Donna
VanNess, the President of Tarrant County Housing Partnership, Inc., a Texas non-profit
corporation, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Fort Worth
CIO Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 75102
DEED]OF TRUST -- TC111' Page 8
CSC No. C-214293 Rev. 5-17-13
EXHIBIT "A"
1307 Elmwood; Lot 24, Block 54, Highland Park Addition, an Addition to the
City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in
Volume , Page , Plat Records, Tarrant County, Texas.
1)FF'D OF T R I J S T T(JiP Page 9
CSC No. C-24293 Rev. 5-17-13)
PROMISSORY NOTE
Date: , 20
Borrower: Tarrant County Housing Partnership, Inc.
a Texas non-profit corporation
Borrower's Mailing Address:
3204 Collinsworth Street, Fort Worth, Tarrant County, TX 76107
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Place for Payment:
CIO Director of Housing and Economic Development Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
or at any other place that Lender may designate in writing
Principal Amount: ONE HUNDRED FOURTEEN THOUSAND DOLLARS AND NINE
HUNDRED/100 DOLLARS ($114,900.00)
Loan Authority:
The loan evidenced by this Note is being made pursuant to the HOME Investment
Partnerships Program authorized under Title II of the Cranston-Gonzalez National
Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. ("HOME Program")
and the HOME Investment Partnerships Program Final Rule, as amended, 24 CFR Part
92 et seq. (the "HOME Regulations") with HOME funds.
Annual Interest Rate: Zero Percent (0%)
Maturity Date: , 20
Annual Interest Rate on Matured, Unpaid Amounts: Six Percent(6%)
Terms of Payment (principal and interest):
This Note is the Note required in City Secretary Contract No. between
Borrower and Lender dated , 20 and has been executed and delivered in
accordance with that contract (the "Contract"). The funds advanced by Lender are
HOME funds and the Contract requires that the residential housing located on the
Property and constructed with a portion of the HOME funds must qualify and remain
affordable housing in accordance with the HOME Program and the HOME Regulations
for a specified time period as more particularly described in the Contract (the
"Affordability Period"). The loan evidenced by this Note will be in default and the
Principal Amount and any other sums due hereunder may be declared immediately
payable if all of the residential housing located on the Property is not sold to eligible
homebuyers as more particularly described in the Contract and the HOME Regulations.
PROMISSORY NOTE TC HP Page I
CSC No. C-24?93 rev. 05-17-13
The Principal Amount is due and payable on , 20 and any interest is due
and payable at maturity. Payments will be applied first to accrued interest and the
remainder to reduction of the Principal Amount.
Security for Payment:
This Note is secured by a Deed of Trust of even date from Borrower to Vicki S. Ganske
or Leann Guzman, Trustee, both of which cover the following real property:
SEE EXHIBIT"A"ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Other Security for Payment:
Other real property acquired by Borrower pursuant to the terms of the Contract to
construct a total of one (1) residential home for sale to an eligible low-income
homebuyer.
Borrower promises to pay to the order of Lender the Principal Amount. This Note is
payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts
are due by the Maturity Date. After maturity, Borrower promises to pay any unpaid principal
balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts.
If Borrower defaults in the payment of this Note or in the performance of its obligations
under the Contract or the HOME Program or the HOME Regulations or any other obligation in
any instrument securing or collateral to this Note, Lender may declare the unpaid principal
balance, earned interest, and any other amounts owed on the Note immediately due. Borrower
and each surety, endorser, and guarantor waive all demand for payment, presentation for
payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest,
and notice of protest, to the extent permitted by law.
Borrower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. These expenses will
bear interest from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts.
Borrower will pay Lender these expenses and interest on demand at the Place for Payment.
These expenses and interest will become part of the debt evidenced by the Note and will be
secured by any security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the residential housing located on the Property and any other real property
acquired by Borrower pursuant to the terms of the Contract and constructed with a portion of the
HOME funds qualifies and remains affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Contract.
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of nonusurious interest that may be contracted for, taken, reserved, charged, or received under
law. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principal Amount has been paid, refunded. On any acceleration or required or permitted
prepayment. any excess interest will be canceled automatically as of the acceleration or
prepayment or. i f the excess interest has al ready been paid. c red ited on the Principal Amount ter.
PROMISSORY NOTE TC[iP Page?
CSC No. C-24293 rev. 05-17-1 3
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this Note and all other instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note. When the
context requires, singular nouns and pronouns include the plural.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC,
Donna VanNess, President
PROM I SSORY NOTE' TC H P Page 3
CSC No. C-24293 rev. 05-17-1_3
EXHIBIT "A"
1307 Elmwood; Lot 24, Block 54, Highland Park Addition, an Addition to the
City of Fort worth, Tarrant County, Texas, according to the Plat recorded in
Volume , Page , Plat Records, Tarrant County, Texas.
PROMISSORY NOTF: TCHP Page 4
CSC No. C-2429-3 rev. 05-17-13
EXHIBIT "J"
ENVIRONMENTAL MITIGATION ACTION
NOT APPLICABLE
EYHIBIT "K"
SECTION 3 REPORTING REQUIREMENTS
EXHIBIT "K"
Section 3 Summary Report U.S.Department of Housing OMB Approval No: 2529-0043
Economic Opportunities for and Urban Development (exp. 1113012010)
Low—and Very Low-Income Persons Office of Fair Housing
And Equal Opportunity HUD Field Office:Section back of page for Pudic Reporting Burden statement
t.Recipient Name&Address: (street,city,state,zip) 2.Federal Identification: (grant no.) 3. Total Amount of Award:
4.Contact Person 5.Phone: (Include area code)
&Length of Grant: 7.Reporting Pefiod:
8.Date Report Submitted: 9.Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part l: Employment and Training *#Columns B,C and F are manda ory fields. Include New Hires in E&F
A B C D E F
Number of Number of New %of Aggregate Number %of Total Staff Hours Number of Section 3
Job Category New Hires Hires that are of Staff Hours of New Hires For Section 3 Employees Trainees
Sec.3 Residents that are Sec.3 Residents and Trainees
Professionals
Technicians
OfficelClerical
Construction by Trade(List)
Trade
Trade
Trade
Trade
Trade
Other List
i
total
Program Codes 3=Publiciindian Hmswg 4=Homeless Assistance 8=CDBG State Administefe►d
t=F'exINe Suostdy A=Ceveioprnent. 5=HCME 9=CTw CD Programs
2=Section 2021811 8=Cperatron 5=HCME State Administered 10=Cole(Horsing Programs
C=Modernization 7=CCBG Entitlement
1 4'.
Part li: Contracts Awarded
1. 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 %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount all non-construction contracts awarded on the project/acbvity $
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 lit: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs,to the greatest extent feasible,toward low-and very low-income persons,particularly those who
are recipients of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media,signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area for
nonmetropolitan county)in which the Section 3 covered program or project is located,or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
Other;describe below.
Public reporting for this collection of information is estimated to average 2 hours per response,including the time for reviewing instructions,
searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.
This agency may not collect this information,and you are not required to complete this form, unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968,as amended, 12 U.S C. 1791 u, mandates that the Department ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low-and very-low income persons,particularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients'compliance with Section 3,to
assess the results of the Department's efforts to meet the statutory objectives of Section 3,to prepare reports to Congress,and by
recipients as setf-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 898(e)(6)of the Fair Housing Act
and Section 916 of the HCDA of 1992 An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Cirrular A-198 are not applicable The reporting requirements do not contain sensitive questions Data is cumulative, personal identifying
r�formativn
is riot included
I A+ 4{.1 q Z.L,
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 appropriate program code as listed at
accomplishments regarding employment and other economic the bottom of the page.
opportunities provided to low-and very low-income persons under 9. Program Name: Enter the name of HUD Program corresponding
Section 3 of the Housing and Urban Development Act of 1968. The with the"Program Code'in number 8.
Section 3 regulations apply to any public and Indian housing
programs that receive: (1)development assistance pursuant to Part 1: Employment and Training Opportunities
Section 5 of the U.S.Housing Act of 1937;(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 special knowledge of an occupation(i.e.
modernization grants pursuant to Section 14 of the U.S.Housing Act supervisors,architects,surveyors,planners,and computer
of 1937 and to recipients of housing and community development programmers). For construction positions,list each trade and provide
assistance In excess of$200,000 expended for (1)housing data in columns B through F for each trade where persons were
rehabilitation(including reduction and abatement of lead-based paint 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$100,000 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
Form HUD-60002 has three parts,which are to be completed for this award. New hire refers to a person who is not on the contractors
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
employment/training 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 Q (Mandatory 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 contractors 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 percentage of all the staff hours of new hires
Section 3 covered assistance shall submit one copy of this report to (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 th e project ends before December 31, residents that were trained in connection with this award.
within 10 days of project completion. Only Prime Recipients are Part 11: Contract Opportunities
required to report to HUD. The report must Include Block 1: Construction Contracts
accomplishments of all recipients and their Section 3 covered 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: Non-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
fi. 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 costs
during the period specified in item 8. PHAs1IHAs are to report all or unusually high-or low-income families. Very low-Income persons mean
con tractslsubcontracts. low-income families(including single persons)whose incomes do not
exceed 50 percent of the median family income area,as determined by the
The terms"low-income persons"and very low-income persons"have Secretary with adjustments or smaller and larger families,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 84 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
aal.'4 j
M&C Review Page 1 of 3
ffiCial site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Fowrl'VORTII
COUNCIL ACTION: Approved on 512212010
DATE: 6/22/2010 REFERENCE NO.: C-24293 LOG NAME: 17TCH P-
1307ELMWOOD
CODE: C TYPE: NON- PUBLIC
CONSENT HEARING: NO
SUBJECT: Authorize a Change in Use and Expenditure of$145,000.00 of HOME Investment
Partnerships Program Grant Funds to Tarrant County Housing Partnerships, Inc., for the
Development of a Single Family House in the Hillside-Morningside Neighborhood,
Authorize the Execution of Conditional Commitment and Contract, and Authorize a
Substantial Amendment to the City' s 2008-2009 and 2009-2010 Action Plans (COUNCIL
DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a substantial amendment to the City' s 2008-2009 and 2009-2010 Action Plans;
2. Authorize the City Manager, or his designee, to substitute funding years in order to meet
commitment, disbursement, and expenditure deadlines for grant funds from the United States
Department of Housing and Urban Development;
3. Authorize a change in use and expenditure of$145,000.00 in HOME Investment Partnerships
p
Program Grant funds to Tarrant County Housing Partnerships, Inc., a certified Community Housing
Development organization, for the development of a single family house in the Hillside-Morning side
neighborhood;
4. Authorize the City Manager, or his designee, to execute a conditional commitment with Tarrant
County Housing Partnerships, Inc., that conditions funding, among other things, on satisfactory
completion of HOME requirements;
5. Authorize the City Manager, or his designee, to execute a Contract with the Tarrant County
Housing Partnerships, Inc. for the project for a one year term beginning on the date of execution of
the contract;
5. Authorize the City Manager, or his designee, to extend or renew the conditional commitment or the
contract for up to one year if Tarrant County Housing Partnerships requests an extension and such
extension is necessary for completion of the project; and
7. Authorize the City Manager, or his designee, to amend the conditional commitment or the Contract
if necessary to achieve project goals provided that the amendment is within the scope of the project
and in compliance with City policies and applicable laws and regulations governing the use of federal
grant funds.
DISCUSSION:
On October 6. 2009. the City issued a Request for Proposals (RFP) for certified Communi Housin
tY 9
Development Organizations (CHDO) to award and expend up to $1,600,000.00 of HOME Investment
Partnerships Program Grant funds by May 1, 2012. On November 5, 2009, the Tarrant County
litti)://at)t)s.cfwnet.org/coiinell narkPtlmr rpirip xi q c!"')TT)-1 Z GAA 1,4,+,,—Ac/-31/-sn 1 n =/1 n/nn I
M&C Review Page 2 of 3
Housing Partnerships, Inc., (TCHP) submitted a response requesting $472,000.00 of the available
HOME funds to acquire three sites on which it proposed to construct three single family houses. The
request also included funds for related CHDO operating expenses.
City staff reviewed all RFP submissions and recommended the award to TCHP of$145,000.00 in
HOME funds to the Community Development Council (CDC) at its meeting held on June 9, 2010. The
CDC agreed with staffs funding recommendation for the project. Up to $25,000.00 of the awarded
funds will be used for operating expenses and $120,000.00 for construction and other development
expenses.
TCHP plans to develop a single family house to be located at 1307 Elmwood Avenue that will be, at a
minimum, 1250 square feet with three bedrooms, two baths and a garage. The house will be sold to
an individual or family that earns 80 percent or less of Area Median Income as determined by the
United States Department of Housing and Urban Development (HUD). Buyers must meet all HOME
Program requirements including applying for and receiving at least $1,000.00 in down payment
and/or closing cost assistance from the City' s Homebuyer Assistance Program and occupying the
house as their primary residence for five years.
City staff recommends the following Contract terms:
i. Construction must begin within six months of date of Contract execution;
ii. TCHP's performance under the Contract and use of the HOME funds will be secured by a
recorded Deed of Trust;
iii. House must be sold to a HOME eligible buyer; and
iv. Proceeds from the sale of house to be used to construct an additional house for a HOME
eligible buyer.
The ex enditure of HOME funds is conditioned won the followin
i. Satisfactory completion of the environmental review per 24 CFR Part 58;
ii. Authorization to use grant funds from HUD; and
iii. Receipt of funding for the 2010-2011 HUD grant funding year.
City staff recommends the change in use and expenditure up to $-145,000.00 in HOME funds for the
project to benefit low and very low income citizens by providing affordable housing. A public comment
period on the change in use of these HOME funds was held from May 6, 2010, to June 5, 2010. Any
comments are maintained by the Housing and Economic Development Department in accordance
with federal regulations.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 539120 005206271110 $25,000.00 GR76 539120 00520627102 w
0 $25.000.00
GR76 539120 017206351110 174,205-00 GR76 539120 017206351040 .$74,205.00
GR76 539120 017206461110 45 795.00 GR76 539120 017206461040 0 0 $45L795.00
Submitted for Ci Mana er's Office b Thomas Higgins (6192)
Orig,inatina Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
http://at)t]s.cfwnet.ori2/counel I nacket/mr. rPviPw gQn?TT1=1 in,,; I,)n it) c/1 n/on n,�
M&C Review Page 3 of 3
Additional information Contact: Avis F. Chaisson (6342)
ATTACHMENTS
1307ElmwoodCouncilMa df
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 611412011
DATE: Tuesday, June 14, 2011 REFERENCE NO.: *'`C-24954
LOG NAME: 17AMENDTCHP-1307ELMWOOD
SUBJECT:
Authorize Amendment to the Conditional Commitment and Contract for HOME Investment Partnerships
Program Grant Funds with Tarrant County Housing Partnership, Inc., for Property at 1307 Elmwood
Avenue to Comply with United States Department of Housing and Urban Development Requirements for
Developer Fees (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an amendment to the Conditional Commitment and Contract for HOME Investment
Partnerships Program Grant Funds with Tarrant County Housing Partnership, Inc., to remove Community
Housing Development Organization Proceeds and replace with a developer fee, and remove requirement
to build an additional house with Community Housing Development Organization Proceeds.
DISCUSSION:
On June 22, 2010, City Council approved the award of $145,000.00 in HOME Investment Partnerships
Program Grant Funds to Tarrant County Housing Partnership, Inc. (TCHP) for the development of a single
family house to be located at 1307 Elwood Avenue in the Hillside-Morningside neighborhood (C-
24293). Up to $25,000.00 of the awarded funds will be used for operating expenses and $120,000.00 for
construction and other development expenses
Staff recommends the following changes to the agreements based upon direction received from HUD:
. Remove the Community Housing Development Organization (CHDO) Proceeds terms in the
Conditional Commitment and Contract
. Replace the CHDO Proceeds with a 10 percent developer's fee based on the cost to construct the
house
. Remove requirement to build an additional house with CHDO Proceeds
The project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
Louname: 17AMF,NDTCHP-1 1(17F.i.MWOM) , ,.Ir�
Submitted for Cily Manner's office b Susan Alanis (8180)
Oriainatina Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Avis F. Chaisson (5342)
ATTACHMENTS
No attachments found.
Leianame: 17AMEND'F('HP-1107FT.MWOOF) 11 . V 11