HomeMy WebLinkAboutContract 44562 CITY SEC mo.TARY
CONTRACT NO.
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 1333 E. Jefferson, Fort Worth, TX 75104 in the City of Fort Worth and in
accordance with the HOME Regulations and Exhibit "A-1"- Final Elevations and Proposed
Plans and Specifications for an amount up to $117,043.00 in HOME funds;
WHEREAS, the Developer shall sell the single family house to a HOME Eligible Buyer
who will use the house as his or her Principal Residence during the Affordability Period (the
"Required Improvements" or project), as further described in Exhibit "A" -- Project Summary
and Scope of Work;
RECEIVE JUG I RIB
CHDO Contract with TC11P_ br 1333 E. Al erson OFFICIAL RECORD
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CITY SECRETARY
FTo WORTH, TIC
� . - 1
WHEREAS, City has determined that the development of quality, accessible, and
affordable housing is needed for moderate, low, and very low-income citizens of Fort worth;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
1. INCORPORATION OF RECITALS.
City and Developer hereby agree that the recitals set forth above are true and correct and
form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following terms shall have
the definitions ascribed to them as follows:
Affordable House means a house for which the homebuyer's monthly payment of principal,
interest, property taxes, and insurance does not exceed 30% of the homebuyer's monthly gross
income, nor is lower than 15% of the homebuyer's monthly gross income, for an individual or
family with an income at or below 80% of Area Median Income, adjusted for family size. In the
case of new-house construction, the percentage of the homebuyer's monthly gross income shall
not exceed 32%of the homebuyer's monthly gross income.
Affordability Period means the period of time that a house purchased or constructed with
HOME Funds must remain affordable and subject to recapture provisions for the affordability
periods described in 24 CFR Part 92.254 of the HOME Regulations. The Affordability Period
begins on the date the Project status is changed to "complete"in HUD's Integrated Disbursement
Information System ("IDIS"). Required Improvements must remain affordable for the following
minimum period, as applicable:
1. Five years if the Homebuyer Assistance Program(HAP) is less than $15,000; and
2. Ten years if the HAP is $15,000 to $40,000.
Area Median Income ("AMI") means the median family income for the Fort Worth-Arlington
metropolitan statistical area as established annually by HUD.
Business Diversity Enterprise ordinance or BDE means the City's Business Diversity
Ordinance, Ordinance No. 20020-12-2011.
City Final Inspection means a HUD Compliance Inspection Report ("Report") completed by
the City. The Report will not be performed until after the City's Permits Plus system states that
C11D0 Contract with TCHP_f)r 1333 E. JeLerson
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the Required Improvements have passed a final inspection by the Planning and Development
Department.
City HAP Eligibility Requirements means the eligibility of a homebuyer for closing cost
and/or down payment assistance under City HAP guidelines as adopted by City Council.
Community Housing Development Organization (CHDO) shall be defined as set forth in 24
CFR 92.2, as amended:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual of the CHDO;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity,but:
(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-profit entity shall not appoint more than one-third of the membership
of the organization's governing body, and board members appointed by the
for-profit entity may not appoint the remaining two-thirds of the board
members; and
(iii) The CHDO must be free to contract for goods and services from vendors of
its own choosing;
(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)
(3) or(4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);
(5) Is not a public body(including the City) or an affiliate of a public body;
(6) Has among its purposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(7) Maintains accountability to low-income community residents by-
(i) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
neighborhoods, city, county or metropolitan area; for rural areas, it may be a
neighborhood or neighborhoods, town, village, county, or multi-county area
(but not the entire State); and
(ii) Providing a formal process for low-income-program beneficiaries to advise
the organization in its decisions regarding the design, siting, development, and
management of affordable housing;
(8) Has a demonstrated capacity for carrying out activities assisted with HOME funds;
(9) Has a history of serving the community within which housing to be assisted with
HOME funds is to be located; and
(10) Has at least one full-time staff person
C 11D0 Contract with TC IIP I(')r 1.333 E. Je arson
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Complete Documentation means (i) Exhibit "E-1" — Invoice, signed by an authorized
signatory of CHDO, stating the amount of funds requested for reimbursement; and (ii) Exhibit
"E-2" — Detailed Statement of Costs, containing an itemized listing of all eligible expenses
requested for reimbursement. In order for Exhibit 11E-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-211 — 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 iov
� .
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means the deed of trust signed by Developer pursuant to Section 4.2.2. See form
in Exhibit"I"- Deed of Trust Form.
Director means the Director of the City's Housing and Economic Development Department.
Effective Date means the date this Contract is executed by the City's Assistant City Manager.
HAP means the City's Homebuyer Assistance Program.
HAP Deed of Trust means the deed of trust signed by a HOME Eligible Buyer to secure HAP
assistance.
HOME Eligible Buyer means: (1) a homebuyer whose annual income adjusted for family size
does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical
Guidance for Determining Income and Allowances. The definition of annual income to
determine homebuyer eligibility under this Contract shall be the definition contained in 24 CFR
Part 92.203(b)(1), as amended; and (2) a homebuyer who meets City HAP Eligibility
Requirements and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance.
HOME Funds means City's HOME funds supplied by City to the Developer under the terms of
this Contract.
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Principal Residence means the improved property that will be occupied by the HOME Eligible
Buyer for a majority of each year throughout the Affordability Period in accordance with the
HAP guidelines as further described in the written agreement between the HOME Eligible Buyer
and the City and the HAP loan documents to be executed by the HOME Eligible Buyer.
Property means the land on which the Required Improvements shall be constructed as more
particularly described in Exhibit"A-2"--Property Legal Description
Required Improvements mean the construction by the Developer of a single family house as
defined in Exhibit"A".
Sales Proceeds means the sales price of a property, minus construction loan repayment (other
than HOME Program funds), Developer Fee and any closing costs, or as otherwise defined in the
HOME Regulations and as shown on the settlement statement described in Section 4.9.4.
3. TERM AND EXTENSION
3.1 Term. The term of this Contract begins on the Effective Date and terminates in
two years unless terminated as provided in this Contract.
3.2 Extension. This Contract may be extended for 1 year upon Developer submitting
a request for an extension in writing at least 60 days before the end of the Contract term. The
request for extension shall include Developer's anticipated budget for the remaining balance, an
explanation as to why additional time is needed, and a proposed project timeline. It is
specifically understood that it is within City's sole discretion to approve or deny Developer's
request for an additional term. Any such extension must be in writing as an amendment to this
Contract.
4. DEVELOPER OBLIGATIONS.
4.1 CHDO 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 30th 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
CHDO Contract with TC'HP.lbr 1333 E. Jefferson
P{rare 5 cif'33
shall result in the termination of this Contract under Section 8.4 below.
4.2. Construction of Required Improvements.
4.2.1 Required Improvements. Developer shall complete the construction of the
Required Improvements as described in Exhibit "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(i) the Effective Date or (ii) Developer
acquiring title to the Property. No funds shall be disbursed until the Deed of Trust is recorded.
Upon recording the HAP Deed of Trust, the City will release the Developer's Deed of Trust.
4.2.3 Sale of Required Improvements. Under the terms and conditions of this
Contract, Developer shall construct the Required Improvements to be sold to a HOME Eligible
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.
43 Use of HOME Funds.
4.3.1. Bud et. HOME Funds will be spent in accordance with Exhibit "C" -
Budget. Developer may increase or decrease line-item amounts in the Budget with Director's
prior written approval so long as the expenses are in compliance with 4.3.2, comply with
Exhibit"A" — Project Summary and Scope of work, and the total amount of HOME Funds is
not increased.
4.3.2. Expenditures in Compliance with HOME Regulations. Developer shall be
reimbursed for the construction of the Required Improvements with HOME Funds only if
Developer provides Complete Documentation showing that the costs are eligible expenditures
under HOME Regulations and in compliance with the Budget and Project Schedule. Further,
Developer must comply with project requirements in 24 CFR Part 92 Subpart F — Project
C HDO Contract with TCHP.1c)r 1333 E. ryon
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Requirements, attached hereto as Exhibit"G"—Subpart F Project Requirements.
4.3.3. Reimbursement Requests. Funds will be disbursed as detailed in Exhibit
"B"- Project Schedule. In order to receive reimbursement for eligible expenses, Developer
must submit Complete Documentation to City within the Contract term. Additionally, PDF's of
site plans, drawings or designs must be included with the first request for reimbursement. City
shall not hold retainage. Instead, it shall make the final construction payment due Developer
contingent upon successful completion of the following: (1) Completion of the Required
Improvements by Developer; (2) receipt of a Housing and Economic Development Final
Inspection approval for the Required Improvements; (3) approval of Complete Documentation;
and (4) Developer is not in breach of this Contract or any other agreement Developer has with
the City. Developer Fee will be paid at closing of the sale of the house to a HOME Eligible
Buyer.
4.3.4. withholding Payment. IF COMPLETE DOCUMENTATION IS NOT
RECEIVED, CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER THIS
CONTRACT. Further, if Developer is in default of any other HOME contract with the
City, City may choose, in its sole discretion, to withhold payments requested under this
Contract or any other contract with Developer.
4.4 Construction and Property Standards
4.4.1 Construction to Conform to All, Applicable Laws, Buildin g Codes and
Ordinances. All plans, specifications and construction on the Required Improvements shall (i)
conform to all applicable Federal, state and local laws, ordinances, rules and regulations,
including HOME Regulations; (ii) meet all City building codes; (iii) be certified as meeting the
Energy Conservation requirements as required by the State of Texas in Chapter 11 of the
International Residence Code; (iv) for new construction, must conform to the current edition of
the Model Energy Code, published by the Council of American Building Officials; and (v) pass
the Final Inspection by the City.
4.4.2 Construction„Inspections. The construction of the Required Improvements
described in Section 4.2 must pass H ED Department Minimum Acceptable Standard Inspection
report, a HUD Compliance Inspection Report along with any other applicable final inspection
approval from the City and any other applicable HUD-required inspections during the
construction period and at the completion of the construction of the Development.
4.4.3 Property Standards and Lead Paint_Requirements. Developer shall comply
with the requirements as it related to City's property standards as well as all applicable
accessibility standards for the Required Improvements. Developer shall comply with (i) the
requirements contained in 24 CFR Part 92.251 as relates to Property Standards and Housing
Quality Standards (HQS), (ii) Accessibility Standards under 24 CFR Part 92.251 (a)(3) as
applicable, and (iii) Lead Based Paint Requirements as found in 24 CFR Part 92.355 and 24 CFR
Part 35 in the construction of the house built under this Contract.
C11DO Contract with th TCHP f ear 1333 E. Alerson
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4.4.4. Submission and Approval b y.City of Plans and Specifications Not
Release of Responsibility or Liability. Developer shall submit plans and specifications to the
City. Approval of any plans and specifications relating to the Required Improvements by city
shall not constitute or be deemed (i) to be a release of the responsibility or liability of Developer
or any of its contractors, their respective officers, agents, employees and subcontractors, for the
accuracy or the competency of the plans and specifications, including, but not limited to, any
related investigations, surveys, designs, working drawings and specifications or other
documents; or (ii) an assumption of any responsibility or liability by City for any negligent act,
error or omission in the conduct or preparation of any investigation, surveys, designs, working
drawings and specifications or other documents by Developer or any of its contractors, and their
respective officers, agents, employees and subcontractors.
4.5 Subcontractors.
4.5.1 Reporting Developer shall submit proof of the following information in
writing regarding all subcontractors utilized in the construction of the Required Improvements:
4.5.1.1 Licensin of Contractors and Subcontractors. Developer shall
ensure that all contractors and subcontractors utilized in the construction of the Required
Improvements are appropriately licensed and that such licenses are maintained throughout the
construction of the Required Improvements.
4.5.1.2 Unlicensed or Debarred. Developer shall ensure that all
subcontractors utilized by Developer or Developer's general contractor are not debarred or
suspended from performing work within the City, the State of Texas or the Federal government.
Developer must confirm that all contractors subcontractors are not listed on the Federal System
for Award Management, www.sam. gov, and must submit written verification of such searches
with the first reimbursement request which includes invoices from any subcontractor. Failure to
submit such proof shall be an event of default. If City determines that any subcontractor has been
debarred, suspended, or is not properly licensed, Developer or Developer's general contractor
shall immediately cause such subcontractor to stop work on the Required Improvements and
Developer shall not be reimbursed for any work performed by such subcontractor. However, this
Section shall not be construed to be an assumption of any responsibility or liability by City to
determine the legitimacy, quality, ability, or good standing of any subcontractor.
4.5 Marketing
4.5.1. Affirmative Marketing. Developer must adopt affirmative marketing
procedures and requirements for the Required Improvements as required by 24 C FR 92.351 if
the project involves the construction of 5 or more houses. The procedures and requirements
must include methods for informing the public, owners and potential homebuyers about fair
housing laws and policies so as to ensure that all individuals, without regard for sex, age, race,
color, creed, nationality, national origin, religion, handicap status, disability, familial status,
sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project.
('11DO Contract with TCHP.f)r 13.33 E. Aff rson
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4.6.2. CityApprov al. All Developer marketing procedures related to the
Required Improvements, including but not limited to the affirmative marketing described in
Section 4.6.1 are subject to approval by City. Developer shall submit all marketing plans for
City approval no later than 7 calendar days after the Effective Date.
4.5.3 Effective Marketing. Developer will be solely responsible for the effective
marketing responsibilities necessary to achieve requirements described in Section 4.9.5.
Documentation supporting these efforts shall be submitted to the City upon request and shall
include, but not be limited to, brochures, sign-in sheets for open houses, listings, and
advertisements.
4.7 Revelop r Fee_ Developer shall receive a fee of 10% of the total project-related
development costs as determined by Exhibit "C"- Budget ("Developer Fee"). The Developer
Fee shall be paid at the closing of the sale of the Required Improvements to a HOME Eligible
Buyer and receipt of documentation of all required inspections.
4.8 Sales Proceeds. All Sales Proceeds must be returned to the City.
4.9. Sale of Required Improvements to HOME Eli ible Buyer
4.9.1 Sale Price of Required Improvements. The sales price of the Required
Improvements shall not exceed 95% of the median sales price of the same type of single-family
housing located within City as determined by HUD.
4.9.2 HOME Eligible Buy er. All homebuyers who purchase the Required
Improvements must also be a HOME Eligible Buyer who receives closing cost and/or down
payment assistance from the City's HAP, as described in Section 5. Developer must verify that
the homebuyer is a HOME Eligible Buyer, and must supply City with all information necessary
to prove eligibility of a prospective buyer prior to closing. Any attempt to sell the Required
Improvements to a homebuyer who is not a HOME Eligible Buyer shall be an event of default
and shall result in automatic termination and reversion of all assets as described in Section 8.5.1.
In addition, the HOME Eligible Buyer must complete a homeownership training and counseling
program prior to the closing of the purchase of the Required Improvements. This requirement
must be evidenced by a completion certificate from a HUD Certified Housing Counseling
Agency only. A copy of the certification shall be provided to the City. Failure of Developer to
provide such certification shall be an event of default.
4.9.3 Contract. Developer shall provide City with a copy of a sales contract for
approval prior to execution for each HOME Eligible Buyer. The sales contract must contain
provisions regarding the following, and will incorporate definitions from this contract as
relevant:
1. "The home you are purchasing was constructed with federal funds that require
the home remain affordable for up to 5 years ("Affordability Period"). This
means that if you sell or lease the home before the Affordability Period is
C HDO Contract with TC71P,1br 1333 E. AffErson
over, you will be required to repay the City the amount of federal funds used
to construct the home. Therefore, as a condition of sale, you will be required
to execute a Note and Deed of Trust in favor of the City for the amount of
federal funds that were used to construct the home to secure the Affordability
Period. The City agrees that the lien will be subordinate to any purchase
money loans.
4.9.4. Developer to Provide Settlement Statement. At least 5 business days before each
closing, Developer will provide to City the estimated settlement statement. The settlement
statement shall account, with regard to the Required Improvements, for the (1) homebuyer
subsidies, (2) development subsidies (3) Developer Fee and (4) amount of Sales Proceeds to be
returned to City from settlement funds.
4.9.5. Timing_of Sale of Required Improvements. The Required Improvement must be
sold to an HOME Eligible Buyer within 4 months from the date of Completion. If the Required
Improvements are not sold within 4 months from the date of Completion, the Developer shall
submit a status report must comply with requirements described under Section 8.1.4. Failure to
submit the report and/or failure to sell the Required Improvements within 4 months shall be an
event of default as described under Section 8.1.4.
4.10.__ Monitoring of Developer
4.10.1 Developer understands and agrees that it will be subject to monitoring by
City for compliance with the HOME Regulations for the duration of the Affordability Period
and until the project is closed in HUD's IRIS system. Developer will provide access to project
files as requested by City, HUD, the Comptroller General of the United States, and any of their
representatives during the Term, during the Affordability Period and for five years after
closeout of this Contract in HUD's IRIS system, and will meet all the reporting requirements set
out in this Contract. This Section shall survive the termination or expiration of this Contract.
4.10.2 City, HUD, the Comptroller General of the United States, and any of their
representatives shall have access at all reasonable hours to the Developer's offices and records
dealing with the use of the HOME Funds that are the basis of this Contract, and to its officers,
directors, agents, employees, and contractors for the purpose of such monitoring with an
advanced notice of no less than 24 hours.
4.10.3. Developer agrees to likewise monitor the effectiveness of the services and
work to be performed by its contractors and subcontractors.
5, HoMEBUYER ASSISTANCE.
5_1 HAP Participation. To ensure that the affordability requirements are met, City requires
that the HOME Eligible Buyer, at least 60 days prior to closing, apply for a minimum of
$1,000.00 of closing cost and/or down payment assistance from the City's HAP. Homebuyer
eligibility shall be determined by City in City's sole discretion using City HAP Eligibility
L`11D0 Contract with T('11P,fi)r 1333 E. JET&rson
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Requirements. City shall enter into a written agreement with the homebuyer for the down
payment and/or closing cost assistance. If requested by the City, Developer shall timely provide
City with all documents and information necessary for City to process the homebuyer's HAP
application, especially the verification of homebuyer eligibility. If the homebuyer does not meet
City HAP Eligibility Requirements, Developer may not sell the Required Improvements to the
homebuyer.
5.2 HAP Deed of Trust. City shall secure the HAP loan by recording a deed of trust against
the Property. Upon recording the HAP Deed of Trust, the City will release the Developer's Deed
of Trust.
6. REPORTING AND DOCUMENTATION RE UIREMENTS
6.1 Record-keepinii System. In the performance of this Contract, Developer shall
develop a record-keeping system and shall promptly provide City with copies of any document
City deems necessary for the effective fulfillment of City's monitoring and evaluation
responsibilities and the reports and documents outlined below. Specifically Developer will keep
or cause to be kept an accurate record of all actions taken and all funds expended, with source
and back-up documents.
6.2 Records Retention. Developer will maintain all records related to this Contract
for a minimum of five years after termination of the Contract.
7. DUTIES AND RESPONSIBILITIES OF CITY
7.1 HOME Funds.
&W- 7.1.1 Reimbursement of HOME Funds. City will reimburse Developer up to
$ 11?,Oq?�In HOME Funds for eligible expenses (excluding the Developer Fee) related to
construction of the Required Improvements, so long as such eligible expenses are in
conformance with the Budget and Project Schedule, and sufficiently proved by Complete
Documentation.
7.1.2 Timing of Payment. Provided that Developer submits Complete
Documentation to the Director with respect to the Required Improvements in conformance with
this Contract, City will reimburse Developer for eligible expenses within 15 calendar days.
7.2. Monitoring.
7.2.1 Monitoring. City will monitor the activities and performance of
Developer and its contractors as necessary, but no less than annually as required by the HOME
Regulations, 24 CFR Part 92.504. City will monitor the performance of Developer in regard to
compliance with completion of tasks, duties and responsibilities as required under this Contract
with an advanced notice of no less than 24 hours.
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7.2.2 In addition to other provisions of this Contract regarding frequency of
monitoring, City reserves the right to perform desk reviews or on-site monitoring of Developer's
compliance with the terms and conditions of this Contract, and of the adequacy and timeliness of
Developer's performance under this Contract. After each monitoring visit, City shall provide
Developer with a written report of the monitor's findings. If the monitoring report notes
deficiencies in Developer's performance, the report shall include requirements for the timely
correction of said deficiencies by Developer. Failure by Developer to take the action specified in
the monitoring report may be cause for suspension or termination of this Contract as provided in
Section 11.
7.3 CHDO Assistance. After the execution of this Contract, City will schedule a
meeting with CHDO to review and discuss the contractual requirements herein.
8. DEFAULT AND TERMINATION
8.1 Events of Default
8.1.1 Failure to Begin the Required Improvements. The Property shall be
acquired within 3 months of execution of the Contract. If Developer fails to begin
construction of the Required Improvements within 1 month of the acquisition of the
Property on which the Required Improvements will be located, City will notify
Developer in writing and the Developer will have 30 calendar days from the date of
receipt of the written notice to begin construction. If property is owned by the Developer
at time of Contract execution, construction shall begin within 1 month of the execution of
this Contract. If the Developer fails to begin construction of the Required Improvements
within such time, City shall have the right to terminate this Contract effective
immediately upon written notice to Developer of such intent with no penalty or liability
to City.
8.1.2 Failure to Complete the Required Improvements. If City determines that
the Required Improvements were not completed by the Completion Deadline, City will
notify Developer in writing and the Developer will have 30 calendar days from the date
of receipt of the written notice to complete the Required Improvements. If the Developer
fails to complete the Required Improvements within such time, City shall have the right
to terminate this Contract effective immediately upon written notice to Developer of such
intent with no penalty or liability to City, and to demand repayment of any HOME Funds
already disbursed to Developer.
8.1.3. Failure to Submit Com lete Documentation. If Developer fails to submit
all Complete Documentation within the term of this Contract, or if any submitted report
or documentation is not in compliance with this Contract or HOME Regulations as
determined by City, City will notify Developer in writing and the Developer will have 30
calendar days from the date of receipt of the written notice to submit or resubmit any
such report or documentation to City. If the Developer tails to submit or resubmit any
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such report or documentation within such time, City shall have the right to terminate this
Contract with no penalty or liability to City effective immediately, and to demand
repayment of any HOME Funds already disbursed to Developer. Notwithstanding
anything to the contrary herein, City will not be required to reimburse any HOME Funds
to Developer unless Complete Documentation is received and approved by City within
the term of the Contract.
8.1.4 Failure to Sell Required Improvements in Accordance with Section 4.9.5.
If Developer fails to sell the Required Improvements within 4 months of the
Completion of the Required Improvements, Developer will notify City in writing and the
Developer will have 15 calendar days from the date of the written notice to submit a
detailed plan describing how the Required Improvements will be sold to a HOME
Eligible Buyer by 5 months from Completion. The plan must be reviewed and approved
by the City. If the Required Improvement is not sold within 5 months from the date of
Completion, Developer must choose one of the following options within 30 days before
the 5 month deadline:
a. the Required Improvements will convert to rental unit(s) as described in
24 CFR 92.252 and the Developer will be responsible for the maintenance
and management of the Required Improvements. If this option is selected,
the City will execute a separate agreement enforcing the applicable
HOME requirements for HOME rental units; OR
b. all HOME funds provided to the Developer by the City under this Contract
shall be repaid to the City within 30 days and this Contract shall be
terminated as described in Section in 5.5.
8.1.5 In General. In addition to the defaults described in Sections 8.1.1,
8.1.29 5.1.3, and 8.1.4 and unless specifically provided otherwise in this Contract,
Developer shall be in default under this Contract if Developer breaches any term or
condition of this Contract. If such a breach remains uncured after 30 calendar days
following receipt of written notice by City referencing this Contract, or if Developer has
diligently and continuously attempted to cure following receipt of such written notice but
reasonably required more than 30 calendar days to cure, as determined by City, City shall
have the right to elect, in City's sole discretion, one of the remedies contained in Section
8.2 or to terminate this Contract effective immediately upon written notice to Developer
of such intent.
8.15 No Waiver. The waiver of a default or breach of any term, covenant, or
condition of this Contract shall not operate as a waiver of any subsequent default or
breach of the same or any other term, covenant or condition hereof.
8.1.7 Civil, Criminal and Administrative Penalties. Failure to perform all the
Contract terms may result in civil, criminal or administrative penalties, including, but not
limited to those set out in this Contract.
C'11D0 Contract with TC11P_f c)r 1333 E. Af f�rson
Prli'e 13 of'33
8.2. City options in Event of Default. If Developer fails to cure the default within
the time stated in the notice, City at its sole option may elect any combination of the following
actions:
8.2.1. extend Developer's time to cure;
8.2.2 disallow all or part of the cost of the activity or action not in compliance;
8.2.3 pursue any other legal remedies available to City to ensure compliance
with this Contract and the Deed of Trust, including foreclosure; and/or
8.2.4 terminate this Contract.
8.3. No Funds Disbursed while in Default. Developer understands and agrees that
no HOME Funds will be paid to Developer until all defaults are cured to the satisfaction of City.
8.4. Basis for Termination.
8.4.1. Termination for Cause. City may terminate this Contract in the event of
Developer's default. Developer agrees that should City terminate this Contract for cause,
Developer shall not be considered for any other City contract involving HOME funds. Likewise,
Developer may terminate this Contract if City does not provide the HOME Funds substantially
as described in this Contract.
8.4.2 Termination for Convenience. In terminating under 24 C.F.R. 85.44, this
Contract may be terminated in whole or in part only as follows:
8.4.2.1. By City with the consent of Developer in which case the Parties
shall agree upon the termination conditions, including the effective date and in the
case of partial termination, the portion to be terminated, or
8.4.2.2. By the Developer upon written notification to City, setting forth
the reasons for such termination, the effective date, and in the case of partial
termination, the portion to be terminated. However, if, in the case of a partial
termination, City determines that the remaining portion of the Contract to be
performed or HOME Funds to be expended will not accomplish the purposes for
which the Contract was made, City may terminate the Contract.
8.4.3 Dissolution of Developer Terminates Contract. In the event Developer is
dissolved or ceases to exist, all assets acquired with HOME Funds used in the development of
the house(s) under the project including cash, interest payments from loans or otherwise, any
accounts receivable attributable to the use of HOME Funds, and any real or personal property
owned by Developer that was acquired or improved with HOME Funds shall automatically
transfer to City and this Contract shall terminate.
8.5 Results of Termination
C11DO Contract with I C11P,fear 1333 E. JeLerson
Pa Ire-' 14 o f.33
8.5.1. Reversion of Assets. In the event this Contract is terminated with or without
cause, all assets acquired with HOME Funds used in the development of the Required
Improvements including but not limited to plans, drawings, surveys, renderings, construction
documents and any other real or personal property owned by Developer that was acquired or
improved with HOME Funds shall belong to City and shall automatically transfer to City or to
such assignees as City may designate.
8.5.2 waiver of Developer Fee. If this Contract terminates prior to the sale of
the Required Improvements to a HOME Eligible Buyer, the Developer waives all right and claim
to the Developer Fee.
8.5.3. Forfeiture of HOME Funds. In the event of termination, all grant funds
awarded to Developer pursuant to this Contract shall be immediately revoked, any HOME Funds
distributed to Developer shall be returned to City, and any approvals related to the Project that
is/are the subject of this Contract shall be immediately deemed revoked and canceled.
8.5.4 No Com ensation After Date of Termination. In the event of termination,
Developer shall not receive any compensation for work undertaken after the date of the
termination.
8.5.5. 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,
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,
C'11D0 Contract with T("HP fi)r 1333 E. AE r on
Page 15 of'33
members, agents, servants, employees, contractors, project participants, licensees or invitees.
11.2. Doctrine of Respondeat Superior
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, contractors, project participants, licensees or
invitees, and nothing herein shall be construed as creating a partnership or joint enterprise
between City and Developer. It is expressly understood and agreed that no officer, member,
agent, employee, contractor, licensee or invitee of Developer, nor any project participant, is in
the paid service of City and that City does not have the legal right to control the details of the
tasks performed hereunder by Developer, its officers, members, agents, employees, contractors,
project participants, licensees or invitees.
11.3 Reliptious 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 3601 et
seq.).
11.4. Audit
11.4.1. Entities that Expend $500,000 or more in Federal Funds Per Year
All non-federal entities that expend $500,000 or more in Federal funds within one year,
regardless of the source of the Federal award, must submit to City an annual audit prepared
under specific reference to OMB Circular A-133. The audit shall cover the Developer's fiscal
years during which this Contract is in force. The audit must be prepared by an independent
certified public accountant, be completed within six months following the end of the period
being audited and be submitted to City within 30 days of its completion. Developer's audit
certification is attached hereto as Exhibit "D" —Audit Requirements. The Audit Certification
Form must be submitted to City within 60 days of the end of period being audited (Developer's
fiscal year). Non-profit entities that expend less than $500,000 a year in Federal funds are
exempt from Federal audit requirements for that year, but records must be available for review or
audit by appropriate officials of the Federal agency, City, and General Accounting Office.
11.4.2. City_Reserves the Right to Audit
City reserves the right to perform an audit of Developer's program operations and
finances at any time during the term of this Contract with an advanced notice of no less than 24
hours if City determines that such audit is necessary for City's compliance with OMB Circular
A-133, and Developer shall allow access to all pertinent materials. If such audit reveals a
questioned practice or expenditure, such questions must be resolved within 15 days after notice
to Developer of such questioned practice or expenditure. If questions are not resolved within this
period, City reserves the right to withhold further funding under this and/or future contract(s)
with Developer. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT
DEVELOPER HAS MISUSED, MISAPPLIED OR MISAPPROPRIATED ALL OR ANY
PART OF THE HOME FUNDS, DEVELOPER AGREES TO REIMBURSE CITY THE
AMOUNT OF SUCH MONIES SO MISUSED, MISAPPLIED OR MISAPPROPRIATED,
C RDO Contract with T('f IP,f i)r 1333 E. Aff_rson
Page 16 of'33
PLUS THE AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE
LEVIED AGAINST CITY BY HUD BECAUSE of SUCH MISUSE, MISAPPLICATION
OR MISAPPROPRIATION.
11.5. Venue
Venue for any action, whether real or asserted, at law or in equity, arising out of the
execution, performance, attempted performance or non-performance of this Contract, shall lie in
Tarrant County, Texas.
11.6 Governing Law
In any questions involving state law, for any action, whether real or asserted, at law or in
equity, arising out of the execution, performance or non-performance of this Contract, in any
issue not governed by federal law, the choice of law shall be the law from the State of Texas.
11.7 _Sev_erability.
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. Para ra h Headings for Reference 00y, No Le al Siltnificance.
The paragraph headings contained herein are for convenience in reference to this
Contract and are not intended to define or to limit the scope of any provision of this Contract.
11.10 Comp__liance With All Applicable Laws and Regulations
-- - �mnnnnn.m�n... iii ■ii i.n.. i�w
Developer agrees to comply fully with all applicable laws and regulations that are
currently in effect or that are hereafter amended during the performance of this Contract. Those
laws include, but are not limited to:
• HOME Investment Partnership Act as set out above
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.)
including provisions requiring recipients of federal assistance to ensure
meaningful access by person of limited English proficiency
• The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
Sections 3601 et seq.)
• Executive Orders 11063, 11.246 as amended by 11375 and 12086 and as
('11D0 Contract with th TC[1P fi)r 1333 E._Jc�f erson
Page 17 ci f'33
supplemented by Department of Labor regulations 41 CFR, Part 60
• The Age Discrimination in Employment of 1967
• The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
• 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) (
• 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 1 986 (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 1958 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 983.5 for Site and Neighborhood Standards Review
• Regulations at 24 CFR Housing and Urban Developments, Part 92 Home
Investments Partnership Program
11.11 HUD-Assisted Proi ects 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
the Housing and Urban Development Act of 1968 as amended (12 U.S.C. Sections 1701 et seq.)
and its related regulations at 24 CFR Part 135, specifically 24 CFR 135.38 ("Section 3"),
requires that the following clause, shown in italics, be inserted in all covered contracts ("Section
3 Clause"):
CHDO Contract with TC11P fi)r 1333 E. Atknon
Parix 18 cif'33
Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
requirements of Section 3 of Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. section 1701u (Section 3). The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by HUD
assisted or HUD-assisted projects covered by Section 3, shall to the greatest
extent feasible, be directed to low- and very-low income persons, particularly
persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD's regulations in 24
CFR Part 135, which implement Section 3. As evidenced by their execution of
this contract, the parties to this contract certify that they are under no contractual
or other impediment that would prevent them from complying with the Part 135
regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which it has a collective bargaining agreement or
other understanding, if any, a notice advising the labor organization or workers'
representatives of the contractor's commitments under this Section 3 clause and
will post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the
notice. The notice shall describe the Section 3 preference, shall set forth
minimum number and job titles subject to hire, availability of apprentice and
training positions, the qualifications for each; and the name and location of the
person(s) taking applications for each of the positions; and the anticipated date
the work shall begin.
D. The contractor agrees that it will include this Section 3 clause in every
subcontract to comply with regulation in 24 CFR Part 135, and agrees to take
appropriate action, as provided in an applicable provision of the subcontract or
in this Section 3 clause, upon finding that the subcontractor is in violation of the
regulations in 24 CFR Part 135. The contractor will not subcontract with any
subcontractor where it has notice or knowledge that the subcontractor has been
found in violation of regulations in 24 CFR 135.
E. The contractor will certify that any vacant employment positions,
including training positions that are filed: (1) after the contractor is selected but
before the contract is executed, and(2) with persons other than those to whom the
regulations of 24 CFR Part 135. The contractor will not subcontract with any
subcontractor where it has notice or knowledge that the subcontractor has been
found in violation of regulations in 24 CFR 135.
F. Noncompliance with HUD's regulation in 24 CFR Part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension
from future HUD assisted contracts.
G. With respect to work performed in connection with Section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be
performed under this Contract. Section 7(h) requires that to the greatest extent
UNDO Contract with TCHP/ur 1333 E. Jefferson
Yui,re 19 u/33
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 135.
11.11.1 Section 3 Reporting.
City and Developer understand and agree that compliance with the provisions of
Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and
orders of HUD shall be a condition of the Federal financial assistance provided to the
project binding upon City and Developer, and their respective successors, assigns,
contractors and subcontractors. Failure to fulfill these requirements shall subject
Developer and its contractors and subcontractors and their respective successors and
assigns to those sanctions specified by the grant agreement through which Federal
assistance is provided and to such sanctions as are specified by 24 CFR Part 135. The
responsibilities include:
1. Implementing procedures to notify Section 3 residents and business
concerns about training, employment, and contracting opportunities generated by
Section 3 covered assistance;
2. Notifying potential contractors working on Section 3 covered projects of
their responsibilities;
4. Facilitating the training and employment of Section 3 residents and the
award of contracts to Section 3 business concerns;
5. Assisting and actively cooperating with the Department in making
contractors and subcontractors comply;
6. Refraining from entering into contracts with contractors that are in violation
of Section 3 regulations;
7. Documenting actions taken to comply with Section 3; and
8. Submitting Section 3 Annual Summary Reports (form HUD-60002) in
accordance with 24 CFR Part 135.90.
C_11DO Contract with T(-'tIP.f{)r 1333 E. A �rson
Page 20 o f'33
In order to comply with the Section 3 requirements, Developer must submit the
Section 3 Reporting Forms attached hereto as Exhibit "K" - Section 3 Reporting
Requirements.
11.11.1.1 Report to the City on a quarterly basis, all applicants for
employment, and all applicants for employment by
contractors and any subcontractors. This shall include
name, address, zip code, date of application, and status
(hired/not-hired) as of the date of the report.
11.11.1.2 Notify available positions to the public for open
competition, and provide documentation to City with the
quarterly report that demonstrates such open advertisement,
in the form of printout of Texas workforce Commission
posting, copy of newspaper advertisement, copy of flyers
and listing of locations where flyers were distributed, and
the like.
11.11.1.3 Report to the City on a quarterly basis, all contracts
awarded by contractors and any subcontractors. This shall
include name of contractor and/or subcontractor, address,
zip code, and amount of award as of the date of the report.
11.12. Prohibition Against Discrimination
Developer, in the execution, performance or attempted performance of this Contract,
shall comply with all non-discrimination requirements of 24 CFR 92.350 and the ordinances
codified at Chapter 17, Article III, Division 4 — Fair Housing of the City Code. Developer may
not discriminate against any person because of race, color, sex, gender, religion, national origin,
familial status, disability or perceived disability, sexual orientation, gender identity, gender
expression, or transgender, nor will Developer permit its officers, members, agents, or
employees to engage in such discrimination.
This Contract is made and entered into with reference specifically to the ordinances
codified at Chapter 17, Article III, Division 3 - Employment Practices of the City Code, and
Developer hereby covenants and agrees that Developer, its officers, members, agents, employees
and contractors, have fully complied with all provisions of same and that no employee, or
applicant for employment has been discriminated against under the terms of such ordinances by
either or its officers, members, agents, employees or contractors.
During the performance of this Contract, Developer agrees that Developer will not
unlawfully discriminate against any employee or applicants for employment because of race,
color, sex, gender, religion, national origin, familial status, disability or perceived disability,
sexual orientation, gender identity, gender expression or transgender. Developer will take
C'11DO Contract with TC~11P.1br 1333 E. AtBerson
Pa iX 21 o f'33
affirmative action to ensure that applicants are hired without regard to race, color, sex, gender,
religion, national origin, familial status, disability or perceived disability, sexual orientation,
gender identity, gender expression or transgender and that employees are treated fairly during
employment without regard to their race, color, sex, gender, religion, national origin, familial
status, disability or perceived disability, sexual orientation, gender identity, gender expression or
transgender. Such action shall include, but not be limited to, the following: employment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for training, including apprenticeship.
Developer agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination clause.
Developer will, in all solicitations or advertisements for employees placed by or on
behalf of Developer, state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or transgender.
Developer covenants that neither it nor any of its officers, members, agents, employees,
or contractors, while engaged in performing this Contract, shall, in connection with the
employment, advancement or discharge of employees or in connection with the terms, conditions
or privileges of their employment, discriminate against persons because of their age or because
of any disability or perceived disability, except on the basis of a bona fide occupational
qualification, retirement plan or statutory requirement.
Developer further covenants that neither it nor its officers, members, agents, employees,
contractors, or persons acting on their behalf, shall specify, in solicitations or advertisements for
employees to work on this Contract, a maximum age limit for such employment unless the
specified maximum age limit is based upon a bona fide occupational qualification, retirement
plan or statutory requirement.
If Developer is found to be in noncompliance with the nondiscrimination clauses of this
Contract or with any of such rules, regulations or orders, this Contract may be canceled,
terminated or suspended in whole or in part and Developer may be declared ineligible for further
government contracts in accordance with procedures authorized in Executive Order 11246 of
September 24, 1965, and such other sanctions may be imposed and remedies invoked as
provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the
Secretary of Labor or as otherwise provided by law.
Developer will require the provisions of this Section 11.11.1 to be included in each of its
subcontracts for work performed on the project unless exempted by rules, regulations or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September
14, 1965, so that such provisions will be binding upon each subcontractor or vendor. Developer
will take such action with respect to any subcontract or purchase order as City may direct as a
means of enforcing such provisions, including sanctions for noncompliance.
1 1.12.3. Developer's Contractors and ADA
CfVDU Contract with T(71P.f)r 1333 E. Je fe�r.Scan
Page 22 ol'33
Under the provisions of the Americans With Disabilities Act of 1990 (
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 Aizainst Interest/Conflict of Interest
11.13.1 Developer shall establish safeguards to prohibit its employees, board
members, advisors and agents from using positions for a purpose that is or gives the
appearance of being motivated by a desire for private gain for themselves or others,
particularly those with whom they have family, business or other ties. Developer shall
disclose to City any conflict of interest or potential conflict of interest described above,
immediately upon discovery of such.
11.13.2 No persons who_are employees, agents, consultants, officers or elected
officials or appointed officials of City or of Developer who exercise or have exercised
any functions or responsibilities with respect to activities assisted with HOME funds or
who are in a position to participate in a decision-making process or gain inside
information with regard to these activities, may obtain a financial interest or benefit from
a HOME-assisted activity or have an interest in any contract, subcontract or agreement
with respect thereto, or the proceeds thereunder, either for themselves or those with
whom they have family or business ties, during their tenure or for one year thereafter,
unless they are accepted under the procedures set forth at 24 C.F.R. § 92.356.
11.13.3 Developer affirms that it will adhere to Chapter 36 of the Texas
Penal Code, which prohibits bribery and undue influence of public servants.
11.13.4. In the procurement of property and services by Developer, the
conflict of interest provisions of 24 CFR Part 85.35 and 24 CFR Part 84.42, respectively,
shall apply. In all cases not governed by those sections, the provisions of 24 CFR Part
92.356 of the HOME Regulations shall apply.
11.14. Labor Standards
11.14.1 As applicable, Developer agrees to comply with the requirements of
the Secretary of Labor under the Davis-Bacon Act (40 U.S.C. 276a et seq. and 18 U.S.C.
874) as amended, the provisions of Contract Work Hours and Safety Standards Act (40
U.S.C. 3701 et seq.) and all other applicable Federal, state and local laws and regulations
C11D0 Contract with TCHP f i}r 1333 E. Je Nryon
Page 23 (433
pertaining to labor standards insofar as those acts apply to the performance of this
Contract. Developer agrees to comply with the Copeland Anti-Dick 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 sub j ect to such regulations, provisions meeting the requirements of this
paragraph.
11.15. Subcontracting with Small and Minority Firms women's Business
Enterprises and Labor Surplus Areas.
,....,.,
11.15.1 For procurement contracts $50,000.00 or larger, Developer
agrees to document a good faith effort to involve Minority Business Enterprises
and Small Business Enterprises and to provide them equal opportunity to compete
for contracts for construction, provision of professional services, purchase of
equipment and supplies and provision of other services required by City.
Developer agrees to incorporate the City's BDE ordinance, and all amendments
or successor policies or ordinances thereto, into all contracts and subcontracts for
procurement $50,000.00 or larger, and will further require all persons or entities
with which it so contracts to document a good faith effort with said ordinance.
11.15.2 It is national policy to award a fair share of contracts to
disadvantaged business enterprises ("'DBEs"), small business enterprises
("SBEs"), minority business enterprises ("MBEs"), and women's business
enterprises (""WBEs"). Accordingly, affirmative steps must be taken to assure
that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of
supplies, equipment, construction and services.
11.16. Other Laws
The failure to list any federal, state or city law, ordinance or regulation that is applicable
to Developer does not excuse or relieve Developer from the requirements or responsibilities in
regard to following the law, nor from the consequences or penalties for Developer's failure to
follow the law, if applicable.
C'11DO Contract with T('f]P.fc3r 1333 E. Jcffe�rson
Page 24 ol'33
11.17. Assignment
Developer shall not assign all or any part of its rights, privileges, or duties under this
Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and shall constitute a breach of this Contract.
11.18. Right to Inspect Contractor Contracts
It is agreed that City has the right to inspect contracts between Developer and any
contractor engaged in any activity in conjunction with this HOME-funded project.
11.19. Force Majeure
If Developer becomes unable, either in whole or part, to fulfill its obligations under this
Contract due to acts of Gods 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 Majeure Event as soon as
reasonably possible after the occurrence of the event. Developer will use commercially
reasonable efforts to remedy its inability to perform as soon as possible. Failure to give notice
will result in the continuance of the Developer's obligation regardless of the extent of any
existing Force Maj eure Event.
11.20 HOME Requirements. Developer agrees to comply with all
requirements of the HOME Program as stated in 24 CFR Part 92, including, but not limited to
the following:
11.20.1 Environmental Review. HOME Funds will not be paid, and costs
cannot be incurred until City has conducted and completed an environmental review of
the proposed Project site as required under 24 CFR Part 58. The environmental review
may result in a decision to proceed with, modify, or cancel the project. Further,
Developer will not undertake or commit any funds to physical or choice limiting actions,
including property acquisition, demolition, movement, rehabilitation, conversion, repair
or construction prior to the environmental clearance, and any violation of this provision
will result in the denial of any funds under this Contract.
11.20.2 Contract Not Constituting Commitment of Funds or Site Approval.
Notwithstanding any provision of this Contract, the Parties agree and acknowledge that
this Contract does not constitute a commitment of funds or site approval, and that such
commitment of funds or approval may occur only upon satisfactory completion of
environmental review and receipt by City of an authorization to use grant funds from
HUD under 24 CFR Part 58.
C'11D0 Contract with TC11P, )r 1333 E. Alk-mon
Patre 25 of'33
11.20.3 Compliance_ with the.Uniform Relocation Act. Developer shall
comply with the relocation requirements of 24 CFR Part 92.353 and all other applicable
Federal and state laws and city ordinances and requirements.
11.20.4 Compliance with Davis-Bacon. Developer will comply with the
Davis-Bacon Act as described on Exhibit "H" — Davis Bacon Requirements of this
Contract. In order to monitor for compliance, Developer shall provide City access to
employee payrolls, contractor and subcontractor payrolls and other wage information for
persons performing construction of the Required Improvements. In addition, Developer
shall ensure that City will have access to employees, contractors and subcontractors and
their employees in order to conduct onsite interviews with laborers and mechanics.
Additional requirements and forms that should be used to comply with this section are in
the following exhibits: Exhibit "H-1"- wage Determination; Exhibit "H-2"- Contractor
Information Form; Exhibit "H-3_- Subcontractor Information Form;; Exhibit "H-4 —
Labor Relations Guide; Exhibit "H-5" — Start of Construction Form; Exhibit "H-6" —
Construction Complete Form; Exhibit "H-7" — EEG Statement; Exhibit "H-8" — Payroll
Reduction Authorization Form; and Exhibit "H-9"—Officer Appointment Form
11.20.5 Developer Procurement Standards. Developer shall establish
procurement procedures to ensure that materials and services are obtained in a cost
effective manner. When procuring for services to be provided under this Contract,
Developer shall comply at a minimum with the nonprofit procurement standards at 24
CFR Part 84.40 - 84.48.
11.20.6 Cost Principles/Cost ,Reasonableness. Developer shall administer
their use of HOME Funds in compliance with OMB Circular A-122, "Cost Principles for
Non-Profit Organizations", as amended from time to time. The allowability of costs
incurred for performance rendered shall be determined in accordance with OMB Circular
A-122, as supplements by the provisions of this Contract.
11.20.7 Developer must take the mitigation actions outlined in Exhibit"J"
—Environmental Mitigation Action. Failure to complete the required mitigation action
is an event of default under this Contract.
12. INDEMNIFICATION AND RELEASE
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
C'HDO Contract with TCHP.f c)r 1333 E. A&rson
pa,i ce 26 of'33
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY; AND DEVELOPER HEREBY
ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS,
AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS
FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE
PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN
PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER
LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND
HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE
OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN
CONNECTION WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS,
MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH,
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS AND
SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME FORM AS ABOVE.
C'11DO Contract with T('1IP_/c)r 1333 E. Aj&rs art
Page 27 ot'33
13. WAIVER OF IMMUNITY BY DEVELOPER
If Developer, as a charitable or nonprofit organization, has or claims an immunity or
exemption (statutory or otherwise) from and against liability for damages or injury, including
death, to persons or property, Developer hereby expressly waives its rights to plead defensively
such immunity or exemption as against City. This section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
14. INSURANCE AND BONDING
Developer will maintain coverage in the form of insurance or bond in the amount of
$117,043.00 to insure against loss from the fraud, theft or dishonesty of any of Developer's
officers, agents, trustees, directors or employees. The proceeds of such insurance or bond shall
be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct.
To effectuate such reimbursement, such fidelity coverage shall include a rider stating that
reimbursement for any loss or losses shall name the City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 days after the
Effective Date, certificates of insurance as proof that it has secured and paid for policies of
commercial insurance as specified herein. If City has not received such certificates as set forth
herein, Developer shall be in default of the Contract and City may at its option, terminate the
Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract. Developer
shall maintain, or require its general contractor to maintain, the following coverage and limits
thereof:
Commercial General Liability CGL) Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$250,000 Property Damage
$500,000 Bodily Injury per person per occurrence
$2,000,000 Aggregate
Insurance policy shall be endorsed to cover"Any Auto" defined as autos owned, hired and
non-owned. Pending availability of the above coverage and at the discretion of City, the policy
shall be the primary responding insurance policy versus a personal auto insurance policy if or
when in the course of Developer's business as contracted herein.
CT11DO Contract Zvi th T('HP,f i)r 1333 E. Jeffers cart
1-'age 28 o f'33
Workers' Compensation Insurance
Part A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
Note: Such insurance shall cover employees performing work on any and all projects
including but not limited to construction, demolition, and rehabilitation. Developer or its
contractors shall maintain coverage, if applicable. In the event the respective contractors
do not maintain coverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
frequently than once every 12 months, and Developer shall revise such amounts within 30 days
following notice to Developer of such requirements.
Developer will submit to City documentation that it, and its general contractor, has obtained
insurance coverage and has executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include employees,
officers, agents, and volunteers of City.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request certificate(s) of insurance shall not be construed as a
waiver of such requirement or as a waiver of the insurance requirements themselves.
Insurers of Developer's insurance policies shall be licensed to do business in the state of Texas
by the Department of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and
each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurance industry standard rating otherwise approved by City.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise
approved by City.
In the event there are any local, federal or other regulatory insurance or bonding requirements for
the project, and such requirements exceed those specified herein, the former shall prevail.
C'HDO Contract with T('IIP fc)r 1333 E. Je e�rson
Page 29 cif'33
Developer shall require its contractors to maintain applicable insurance coverage, limits, and
other insurance requirements as those specified herein; and, Developer shall require its
contractors to provide Developer with certificate(s) of insurance documenting such coverage.
Also, Developer shall require its contractors to have City and Developer endorsed as additional
insureds (as their interest may appear) on their respective insurance policies.
Directors and officers Liability coverage shall be in force and may be provided on a claim made
basis. This coverage may also be referred to as Management Liability, and shall protect the
insured against claims arising out of alleged errors in judgment, breaches of duty and wrongful
acts arising out of their organizational duties. Coverage shall protect not only the entity, but all
past, present and future directors, officers, trustees, employees, volunteers and committee
members.
Developer shall require its builder to maintain builders risk insurance at the value of the
construction unless covered by the Developer.
15. CERTIFICATION REGARDING LOBBYING
The undersigned representative of Developer hereby certifies, to the best of his or her
knowledge and belief, that:
Y
No Federal appropriated funds have been paid or will be paid, by or on behalf of
Developer, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan or cooperative agreement.
If any funds other than federally appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, member of Congress in connection with this Federal contract, grant,
loan or cooperative agreement, Developer shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying,"under its instructions.
This certification is a material representation of fact upon which reliance was
placed when this Contract was made or entered into. Submission of this
certificate is a prerequisite for making or entering into this Contract imposed by
31 U.S.C. Section 1352. Any person who fails to file the required certification
shall be subject to a civil penalty of not less than $10,000.00 and not more than
$100,000.00 for each such failure.
C~11D0 Contract with TC~HP,fc)r 13.3 E. JeLerson
Page 30 o133
Developer shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
15. LITIGATION AND CLAIMS
Developer shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Developer in conjunction with this
Contract or the project. Developer shall furnish immediately to City copies of all pertinent
papers received by Developer with respect to such action or claim. Developer shall provide a
notice to City within 10 days upon filing under any bankruptcy or financial insolvency provision
of law.
17. NOTICE
All notices required or permitted by this Contract must be in writing and are deemed
delivered on the earlier date of the date actually received or the third day following (i) deposit in
a United States Postal Service post office or receptacle; (ii) with proper postage, certified mail
return receipt requested; and (iii) addressed to the other Party at the address set out below or at
such other address as the receiving Party designates by proper notice to the sending Party.
Cites
City Manager's Office
1000 Throckmorton Street
Fort Worth, TX 75102
Copy to:
City Attorney's Office
1000 Throckmorton Street
Fort Worth, TX 75102
Copy to:
Director of Housing and Economic Development
1000 Throckmorton Street
Fort Worth, TX 75102
President of Tarrant County Housing Partnership, Inc.
3204 Collinsworth Street
Fort Worth, TX 75107
18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motions resolution or action passed or taken, to enter into this Contract
and to perform the responsibilities herein required.
C'f1D0 Contract with T('NP f{)r 1333 E. A ff rson
Par�7e 31 of'33
19. COUNTERPARTS
This Contract maybe executed in multiple counterparts, each of which will be deemed an
original, but which together will constitute one instrument.
IN WITNESS WHEREOF t e Parties *eto have executed this Contract in Fort
Worth, Tarrant County, Texas, this �y of �2�.� , 2013.
IF
�op0000��,
ATTEST: � p�Ao° ° OF FORT WORTH
a
City Secre ��°oaQ oo°.�Wmando Cost , As istant City Manager
M&C: �� °�0000aa° �Oate:
Date:
AP ROVED AS TO FORM AND LEGALITY:
Assistant City Attor ey
TARRANT COUNTY HOUSING
PARTNERSHIP, INC.
bod�iaa ss, e 'dent
Date: -3'� 02� �j
OFFICIAL RECORD
C'HDO Contract with TCHP/ur 1333 E. JcJ1eryun CITY SECRETARY '
Pa,!O 32 u/33 FT. WORTH, TX
Exhibits:
Exhibit"A"—Project Summary 1 Scope of Work
Exhibit"A-I"- 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-I"—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-I"-Wage Decision
Exhibit"H-2"- Contractor Information Form
Exhibit"`H-3 - Subcontractor Information Form
Exhibit"H-4: —Labor Relations Guide
Exhibit"H-S"— Start of Construction Form
Exhibit"`H-5"—Construction Complete Form
Exhibit"H-7"—EEG Statement
Exhibit"H-8"—Payroll Reduction Authorization Form
Exhibit "H-9"—officer Appointment Form
Exhibit"I"- Deed of Trust Form
Exhibit"Y'- Environmental Mitigation Action (Not Applicable)
Exhibit"IC"- Section 3 Reporting Requirements
CHDO Contract with TC'HP f)r 1333 E. Je erson
Pali�e 33 of'.33
EXHIBIT "A"
PROJECT SUMMARY- SCOPE of WORK
1333 E. JEFFERSON
DESCRIPTION:
Developer will construct a 1535 square foot, 3 bedroom and 2 bathroom single-family home on a lot
size of approximately 5,000 square feet. Construction will include a one car detached garage. Fencing
will be located at the rear and side yards. Landscaping will include front yard.
The construction shall contain the following accessibility requirements
The following appliances and related amenities will be included in the sale of the house:
• Ceiling Fan(s) in 3 BR, 1 LR.
• Washer and Dryer hookups
• Central Air Conditioning
• Stove
• Dishwasher
• Vent-a-hood
• Garbage Disposal
• Electric Garage Door with Remote
• Mailbox located at door
The following materials shall be used for the construction of the Required Improvements
• Appliances included with the sale
• Fence(back yard)
• Landscaping(front)
• Roofing Materials 3 TAB 25 YR
• Siding(percentage) 100%
• Foundation Type Post Tension
■ HVAC 15 Seer Heat Pump
• (the"Project").
f`"nC)F11ndc - FYh;k4c
EXHIBIT 166A49'
FINAL ELEVATION AND PROPOSED PLANS AND SPECIFICATIONS
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EXHIBIT "A-2"
LEGAL DESCRIPTION
Highland Park Addition - Ft Wth Blk 53 Lot 18
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1333 E. Jefferson
Phase Activity Beginning Week — subject to
weather permitting
PHASE I ACTIVITIES: Contract signed May 13
Lot Acquisition/Preparation May 20
(Demolition)
Plumbing August 12
Foundation August 19
PHASE I DEADLINE:
August 23 1St Payment $369443
PHASE II ACTIVIITES: Framing August 26
Roofing September 2
Insultation September 9
Siding 1 Brick September 16
Top-out Plumbing, Electrical,HVAC September 23
PHASE II DEADLINE: 2"d Payment
October 4 $38,500
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: 3rd Payment
November 8 Y $28,500
PHASE IV ACTIVIITES: Landscape,Paving November 11
Flooring November 18
Appliances, Interior trim-out/finish November 25
PHASE IV DEADLINE: C'unstructi '
November 29 on Final Payment $135644
CONSTRUCTION TOTAL $1179043
DEVELOPER FEE Paid at time of home sale to HOME $11,704
Eligible Buyer
*De�,-eloper will be reimbursed for eligible expenses only. The amounts are estimates and are subject to
change.
Exhibit C
Budget
BUDGET— [1 333 E. Jefferson]
Total Cost: $ _117,043
Project HOME Funds Awarded: $_1 17,043
Operating Funds Awarded: $
TOTAL AWARDED FUNDS: $_117,043
* Please note that all funding will made on a reimbursable basis only.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME $ OTHER $ SOURCES OF TOTAL$
FUNDS OTHER FUNDS FUNDS
�1} (2) (Names) (1+2)
1. Market Stud
2. Feasibility(ie: preliminary work
write-up, cost estimates, design)
3. other
Total Predevelopment cost(1+2=3)
Development cost
4. Land and/or building acquisition 2,143 2,143
5. Site Preparation 3,100 3,100
6. Construction Cost 99,200 99?200
7. Fence 4300 4,300
8. Landscape 2,100 2,100
9. Contingency
10. Appraisal 475 Proceeds of Sale 475
11. Architect& Engineering Fees 2,500 2,500
12. Construction Management Fee
13. Construction Loan Interest
14. Property Survey 500 500
15. Legal Fees 250 Proceeds of Sale 250
16. Real Estate Fees 4,680 Proceeds of Sale 4,680
17. Utility Hookup/Impact Fees 3,200 3,200
18. Title & Recording Fees 780 Proceeds of Sale 780
19. Program Related Expenses 6,250 CHDO operating Funds 6,250
20. Construction Management
21, Bond Fees
Total Development cost(Total of 117,043 129,478
items 4—21
Total Project cost 117,043 12,435 129,478
cNnn F„nAQ - FVb;klte
EXHIBIT "D"
AUDIT REQUIREMENTS
Pages 1-2: Summary of Audit Requirements
• Page 3: Single Audit Report Checklist
• Page 4: Audit Certification Form
('NT)I Fiinrk - Pvhihitc
CITY OF FORT NORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or more in federal awards (from City of Fort Worth and other funding
sources) during their fiscal years shall obtain either an annual single audit or a program specific audit.
Organizations may have a program specific audit in accordance with OMB Circular A-133, or other standard
set forth in the Contract if applicable, if they expended funds for only one federal program as listed in the
Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than one federal program, a
single audit is required. The audited time period is the organization's fiscal year, and not the City of Fort
Worth's funding period.
The audit shall be conducted by a certified public accountant (CPA) that is licensed at the time of the audit
by the appropriate regulatory body. The CPA shall meet all of the general standards concerning
qualifications, independence, due professional care and quality control as required by Government Auditing
Standards, including the requirements for continuing professional education and external peer reviews.
Auditor selection must adhere to federal procurement requirements.
A separate supplementary schedule of revenues, expenditures and changes in fund balance for each City
of Fort Worth contract is no longer required. The Schedule of Expenditures of Federal Awards should list
City of Fort Worth 's contract numbers, the total expended for each individual federal program, and the
CFDA number (OMB A-13 3 § .310).
The independent auditor's report should include all of the relevant items listed on the "Audit Report
Checklist." Additional guidance on the conduct and reporting of these audits is contained in the latest issuance
of the following publications:
Government Auditing Standards issued by the Comptroller General of the United States,2003
OMB Circular A-133 as revised 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 Organizations
Receiving Federal Awards"
Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations
AICPA's Audit Risk Alert "State and Local Governmental Developments"
Government Auditing Standards by the Texas Department of Housing and Community Affairs for Properties
Receiving Low Income Housing Tax Credits
All organizations that receive a City of Fort Worth award must submit the provided Audit Certification Form
which certifies whether you are subject to a single/program audit. Organizations receiving federal awards
from the City of Fort Worth who are not required to have an audit shall certify in writing to the agency.
The organization's Chief Executive Officer or Chief Financial officer shall make the certification within
60 days of the end of the organization's fiscal year in the year that the project was completed.
The following items should be submitted to the City of Fort Worth Housing and Economic Development
Department within the required timeframe:
Due fit) dam after organization's fiscal mar end in the year that the project "-as completed required tt)r all
subrecipientsl
Completed Audit Certification Form
Gunn F,,n(iQ - FYhikitQ
Due within the earlier of 30 days after receipt of the auditor's report or nine months„after the end of the audit
period.
Two copies of the entire audit report issued by the CPA
Two copies of any management letter issued by the CPA in conjunction with the audit report
Two copies of management's comments on all findings, recommendations, & questioned
costs contained in the audit report and management letter, including a detailed corrective
action plan
Failure to submit any of these items by the required due date may result in holds on current draw
requests, suspension of the organization's contract(s) and eligibility for future funding.
If the organization does not meet the requirements of having a single/program audit conducted, records
must still be kept available for review or audit by City of Fort Worth staff(OMB A-133 Subpart B Sec 200(d).
If additional information is needed concerning the audit requirements, please call (817) 392-6141.
rNnn Fiindc - FYhihitc
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 ReportiWBased 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.
runn Fii.,ric - FYh;h;rc
CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT DEPARTMENT
Audit Certification Form
Subrecipient: _Tarrant County Housing Partnership, Inc. Fiscal Year Ending: _9_130_113
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.
F-1 We did not exceed the $500,000 federal expenditure threshold required for a Single Audit or a Program
Specific Audit to be performed this fiscal year. (Fill out schedule below)
Must befilled 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 Expenditures
Total Federal Expenditures far this Fiscal Year $
Donna VanNess President
Printe Title(Must be CFO,CEO or equivalent)
817-924-5091 _5110113
utho ' e ature st be CF EO or equivalent) Phone Number Date
Failure to submit this or a similar statement or failure to submit a completed single audit package as
described in the audit requirements by the required due date will result in suspension of funding and will affect
eligibility for future funding.
Submit this form to the City of fort Worth Housing and Economic Development Department within 60 days after the end of your
Fiscal year
("urn Fiinric - Fxh;h;tc
Exhibit E--1
INVOICE
CHDG: Tarrant County Housinq Partnership, Inc.
Project Site Address: 1333 E. Jefferson Ave., Fort Worth, TX 75104
Period of Service:
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CHDO certification: I certify that the costs incurred are valid and
consistent with the terms and conditions of the contract between City and
CHDG By signing this invoice, I certify that to the best of my knowledge
and belief the data included in this report, Exhibit G, and in all backup
documentation is true and accurate. It is acknowledged that the provision
of false information could leave the certifying official subject to the
penalties of federal, state, and local law.
Signature and Date:
Name:
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Tarrant County Housing partnership, Inc.
1333 E. Jetiarson Ave., Fort Worth, TX 76104
Exhibit E-3 Client Data Report
EXHIBIT "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
FORTWORTH,
Standard of Documentation for Reimbursement of Development Costs
Construction Costs (Contractors & • Invoice
Subcontractors) - Invoice should include:
date;
company's letterhead;
address for which service is provided;
description of service(s) and item(s);
amount for itemized services; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
• Timesheet(s) Signed by Employee and Supervisor
Activity Sheet(s) Signed by Employee and Supervisor
- Pay Period Dates Should be Reflected
• Copy of applicable inspection report(s) conducted by HED Inspector
• Copy of executed agreements
- Provide printout from www.sam verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
• For retainage for the prime contractor, lien waivers for the prime and all
subcontractors.
Materials Purchased by Developer • Invoice
- Invoice should include:
date;
company's letterhead;
address where materials will be used;
description of service(s) and item(s);
cost by quantity; and
total amount
• Proof of Payment (i.e. bank statement or cancelled check)
Developer Fee • Final Invoice Reflecting Total Development Cost
• Proof of payment for any other entity contributing to development costs.
• Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation required in contract for home/unit produced
(i.e. income docs for eligible homebuyer, sales contract between
developer/homebuyer, HAP Deed of Trust w/ required affordability period
language, etc)
Housing and Economic Development
FINAL as of 4/24/2013 Page 2
EXHIBIT "G"
24 CFR PART 92 SUBPART F- PROJECT REQUIREMENTS
two-year match reduction period in accordance with the provisions of paragraph
(a)(3) of this section.
b. Reduction of match for participating jurisdictions in disaster areas. If a participating
jurisdiction is located in an area in which a declaration of major disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, it may request
a reduction of its matching requirement. For a local participating jurisdiction, the HUD
Field office may reduce the matching requirement specified in § 92.218 by up to 100
percent for the fiscal year in which the declaration of major disaster is made and the
following fiscal year. For a State participating jurisdiction, the HUD Field office may
reduce the matching requirement specified in § 92.218, by up to 100 percent for the
fiscal year in which the declaration of major disaster is made and the following fiscal
year with respect to any HOME funds expended in an area to which the declaration of a
major disaster applies. At its discretion and upon request of the participating jurisdiction,
the HUD Field Office may extend the reduction for an additional year.
SUBPART F— PROJECT REQUIREMENTS
§ 92.250 Maximum Per-unit Subsidy Amount and Subsidy Layering
a. Maximum per-unit subsidy amount. The total amount of HOME funds and ADDI funds
that a participating jurisdiction may invest on a per-unit basis in affordable housing may
not exceed the per-unit dollar limitations established under section 22 1(d)(3)(ii)of the
National Housing Act(12 U.S.C. 1715 1(d)(3)(ii)) for elevator-type projects that apply to
the area in which the housing is located. These limits are available from the Multifamily
Division in the HUD Field Office. If the participating jurisdiction's per-unit subsidy
amount has already been increased to 210%as permitted under section 22 1(d)(3)(ii)of
the National Housing Act, upon request to the Field Office, HUD will allow the per-unit
subsidy amount to be increased on a program-wide basis to an amount, up to 240%of the
original per unit limits.
b. Subsidy layering. Before committing funds to a project, the participating jurisdiction
must evaluate the project in accordance with guidelines that it has adopted for this
purpose and will not invest any more HOME funds, in combination with other
governmental assistance, than is necessary to provide affordable housing.
§ 92.251 Property Standards
a.
I. Housing that is constructed or rehabilitated with HOME funds must meet all
applicable local codes, rehabilitation standards, ordinances, and zoning ordinances
at the time of project completion, except as provided in paragraph (b) of this
section. The participating jurisdiction must have written standards for rehabilitation
that ensure that HOME-assisted housing is decent, sate, and sanitary. In the absence
of a local code for new construction or rehabilitation, HOME-assisted new
construction or rehabilitation must meet, as applicable: one of three model codes
(Uniform Building Code (ICBO), National Building Code (E30CA), Standard
45
(Southern) Building Code (SBCCI)); or the Council of American Building Officials
(CABO)one or two family code; or the Minimum Property Standards (MPS) in 24
CFR 200.925 or 200.926. To avoid duplicative inspections when FHA financing is
involved in aHOME-assisted property, a participating jurisdiction may rely on a
Minimum Property Standards (MPS) inspection performed by a qualified person.
Newly constructed housing must meet the current edition of the Model Energy Code
published by the Council of American Building Officials.
2. All other HOME-assisted housing (e.g., acquisition) must meet all applicable State
and 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 982.401.
3. The housing must meet the accessibility requirements at 24 CFR part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)and
covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet the
design and construction requirements at 24 CFR 100.205, which implement the Fair
Housing Act (42 U.S.C. 3601-3619).
4. Construction of all manufactured housing must meet the Manufactured Home
Construction and Safety Standards established in 24 CFR Part 3280. These
standards pre-empt State and local codes covering the same aspects of performance
for such housing. Participating jurisdictions providing HOME assistance to install
manufactured housing units must comply with applicable State and local laws or
codes. In the absence of such laws or codes, the participating jurisdiction must
comply with the manufacturer's written instructions for installation of manufactured
housing units. Manufactured housing that is rehabilitated using HOME funds must
meet the requirements set out in paragraph (a)(1)of this section.
b. The following requirements apply to housing for homeownership that is to be
rehabilitated after transfer of the ownership interest:
1. Before the transfer of the homeownership interest, the participating jurisdiction
must:
i. Inspect the housing for any defects that pose a danger to health; and
ii. Notify the prospective purchaser of the work needed to cure the defects and the
time by which defects must be cured and applicable property standards met.
2. The housing must be free from all noted health and safety defects before occupancy
and not later than 6 months after the transfer.
3. The housing must meet the property standards in paragraph (a)(l) of this section not
later than 2 years after transfer of the ownership interest.
C. An owner of rental housing assisted with HOME funds must maintain the housing in
compliance with 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 982.401.
46
d. All housing occupied by tenants receiving HOME tenant-based rental assistance must
meet the housing quality standards in 24 CFR 982.401.
§ 92.252 Qualification as Affordable Housing: Rental Housing
The HOME-assisted units in a rental housing project must be occupied only by households
that are eligible as low-income families and must meet the following requirements to qualify
as affordable housing. The affordability requirements also apply to the HOME-assisted non-
owner-occupied units in single-family housing purchased with HOME funds in accordance
with § 92.254.
a. Rent limitation. HUD provides the following maximum HOME rent limits. The
maximum HOME rents are the lesser o£
I. The fair market rent for existing housing for comparable units in the area as
established by HUD under 24 CFR 888.111- or
2. Arent that does not exceed 30 percent of the adjusted income of a family whose
annual income equals 65 percent of the median income for the area, as determined
by HUD, with adjustments for number of bedrooms in the unit. The HOME rent
limits provided by HUD will include average occupancy per unit and adjusted
income assumptions.
b. Additional Rent limitations. In rental projects with five or more HOME-assisted rental
units, twenty(20)percent of the HOME-assisted units must be occupied by very low-
income families and meet one of following rent requirements:
1. The rent does not exceed 30 percent of the annual income of a family whose income
equals 50 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larger families. HUD provides the HOME rent limits
which include average occupancy per unit and adjusted income assumptions.
However, if the rent determined under this paragraph is higher than the applicable
rent under(a)of this section, then the maximum rent for units under this paragraph
is that calculated under paragraph (a).
2. The rent does not exceed 30 percent of the family's adjusted income. If the unit
receives Federal or State project-based rental subsidy and the very low-income
family pays as a contribution toward rent not more than 30 percent of the family's
adjusted income, then the maximum rent(i.e., tenant contribution plus project-
based rental subsidy) is the rent allowable under the Federal or State project-based
rental subsidy program.
C. Initial rent schedule and utility allowances. The participating jurisdiction must establish
maximum monthly allowances for utilities and services (excluding telephone). "the
participating jurisdiction must review and approve rents proposed by the owner for units
subject to the maximum rent limitations in paragraphs (a) or(b) of this section. For all
units subject to the maximum rent limitations in paragraphs (a) or(b) of this section for
which the tenant is paying utilities and services, the participating jurisdiction must ensure
47
that the rents do not exceed the maximum rent minus the monthl y allowances for utilities
and services.
d. Nondiscrimination against rental assistance subsidy holders. The owner cannot refuse to
lease HOME-assisted units to a certificate or voucher holder under 24 CFR p art 982
Section 8 Tenant-Based Assistance: Unified Rule for Tenant-Based Assistance under the
Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the
holder of a comparable document g
p evidencing participation in a HOME tenant-based
rental assistance program because of the status of the prospective tenant as a holder of
such certificate, voucher, or comparable HOME tenant-based assistance document.
e. Periods ofAffordability. The HOME-assisted units must meet the affordability
requirements for not less than the a
re
q applicable period specified in the following table,
beginning after project completion. The affordability requirements apply re 1 without and
g
to the term of any loan or mortgage or the transfer of ownership. They e must b imposed
p
by deed restrictions, covenants running with the land, or other mechanisms approved b
t that the affordability re pp y
HUD, except y strictions may terminate upon foreclosure or transfer
in lieu of foreclosure. The participating jurisdiction may use � rights urchase o tions i hts of
p p
first refusal or other preemptive rights to purchase the housing efore foreclosure or deed
in lieu of foreclosure to ' ' • �
preserve affordability. The affordability restrictions shall be
revived according to the original terms if, during the original affordability period, the
Yp a
owner of record before the foreclosure, or deed in lieu of foreclosure, or an entity that
i
includes the former owner or those w y
with whom the former owner has or had family or
business ties, obtains an ownership interest in the project or .pro ert
p Y
Rental Housing Activity Minimum period of affordabilit y in years
Rehabilitation or acquisition of existing 5
housing per unit amount of HOME funds:
Under$15,000
$15,000 to $40,000 to
Over$40,000 or rehabilitation involving 15
refinancing
New Construction or acquisition of newly 20
constructed housing
f. Subsequent rents during the affordability period.
I. The maximum HOME rent limits are recalculated on a periodic basis after HUD
determines fair market rents and median incomes. HUD then p rov ides the new
maximum HOME rent limits to participating jurisdictions. Regardless of changes in
fair market rents and in median income over g
v time, the HOME rents for a project are
not required to be lower than the HOME rent limits for the project in effect at the
time of project commitment.
48
2. The participating jurisdiction must provide project owners with information on
updated HOME rent limits so that rents may be adjusted (not to exceed the
maximum HOME rent limits in paragraph (f)(1) of this section) in accordance with
the written agreement between the participating jurisdiction and the owner. Owners
must annually provide the participating jurisdiction with information on rents and
occupancy of HOME-assisted units to demonstrate compliance with this section.
3. Any increase in rents for HOME-assisted units is subject to the provisions of
outstanding leases, and in any event, the owner must provide tenants of those units
not less than 30 days prior written notice before implementing any increase in rents.
g. Adjustment of HOME rent limits for a particular project.
1. Changes in fair market rents and in median income over time should be sufficient to
maintain the financial viability of a project within the HOME rent limits in this
section.
2. HUD may adjust the HOME rent limits for a project, only if HUD finds that an
adjustment is necessary to support the continued financial viability of the project
and only by an amount that HUD determines is necessary to maintain continued
financial viability of the project. HUD expects that this authority will be used
sparingly.
h. Tenant income. The income of each tenant must be determined initially in accordance
with § 92.203(a)(1)(i). In addition, each year during the period of affordability the
project owner must re-examine each tenant's annual income in accordance with one of
the options in § 92.203 selected by the participating jurisdiction. An owner of a
multifamily project with an affordability period of 10 years or more who re-examines
tenant's annual income through a statement and certification in accordance with
92.203(a)(1)(11), must examine the income of each tenant, in accordance with
§ 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who
accepts the tenant's statement and certification in accordance with § 92.203(a)(1)(11) is
not required to examine the income of tenants in multifamily or single-family projects
unless there is evidence that the tenant's written statement failed to completely and
accurately state information about the family's size or income.
i. (hoer-income tenants.
1. HOME-assisted units continue to qualify as affordable housing despite a temporary
noncompliance caused by increases in the incomes of existing tenants if actions
satisfactory to HUD are being taken to ensure that all vacancies are filled in
accordance with this section until the noncompliance is corrected.
2. Tenants who no longer qualify as low-income families must pay as rent the lesser of
the amount payable by the tenant under State or local law or 30 percent of the
family's adjusted income, except that tenants of HOME-assisted units that have
been allocated low-income housing tax credits by a housing credit agency pursuant
to section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) must pay rent
governed by section 42. In addition, in projects in which the HOME units are
designated as floating pursuant to paragraph (j), tenants who no longer qualify as
49
low-income are not required to pay as rent an amount that exceeds the market rent
for comparable, unassisted units in the neighborhood.
j Fixed and floating HOME units. In a project containing HOME-assist '
' � ed and other units,
the participating jurisdiction may designate fixed or floating OME units.. T his
designation must be made at the time of project commitment. Fixed units remain the
same throughout the period of affordability. Floating units are changed to maintain
g an
conformity with the requirements of this section during he period of affordability
the total number of ho g p qty so that
using units meeting the requirements of this section remains the
same, and each substituted unit is comparable in terms of size, features and numb
� number of
bedrooms to the originally designated HOME-assisted unit.
§ 92.253 Tenant and Participant Protections
a. Lease. The lease between a tenant and an owner of rental housing ssisted with
funds must be for g th HOME
o not less than one year, unless by mutual agreement between the tenant
and the owner.
b. Prohibited lease terms. The lease may not contain an of the following •
Y g provisions.
I. Agreement to be sued. Agreement by the tenant to be sued to admit guilt,t, ortoa
judgment in favor of the owner in a lawsuit a suit brought in connection with the lease;
2. Treatment of property. Agreement by the tenant that the owner may take,e, hold, or
sell personal property of household members without notice to the tenant and
court decision on the rights of the parties. This prohibition, however, does not a
to an agreement b the apply
g .y a tenant concerning disposition of personal property remaining
in the housing unit after the tenant has moved out of g
the unit. The owner may
dispose of this personal property in accordance with State law-,
3. Excusing owner from responsibility. Agreement b the tenant not to hold Y o d the owner
or the owner's agents legally responsible for any action or failure to act whether
intentional or negligent;
4. Waiver of notice. Agreement of the tenant that the owner may institute
y a lawsuit
without notice to the tenant;
5. Waiver of legal proceedings. Agreement by the tenant that the owner may '
y evict the
tenant or household members without instituting a civil court roceedin in which
the tenant has the o p g
opportunity t o present a defense, or before a court decision on the
rights of the parties;
6. Waiver of a jury trial. Agreement by the tenant to waive an right to a trial y g al by jury;
7. Waiver of right to appeal court decision. Agreement b the tenant to waive e the
tenant's right to appeal, or to otherwise challenge in court, a court decision in
connection with the lease; and
8. Tenant chargeable with cost of legal actions regardless o (outcome. Agreement
the t .f g Bement by
tenant to pay attorney's tees or other legal costs even if the tenant wins in a
50
court proceeding by the owner against the tenant. The tenant, however, may be
obligated to pay costs if the tenant loses.
c. Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the
lease of a tenant of rental housing assisted with HOME funds except for serious or
repeated violation of the terms and conditions of the lease; for violation of applicable
Federal, State, or local law; for completion of the tenancy period for transitional housing;
or for other good cause. To terminate or refuse to renew tenancy, the owner must serve
written notice upon the tenant specifying the grounds for the action at least 30 days
before the termination of tenancy.
d. Tenant selection. An owner of rental housing assisted with HOME funds must adopt
written tenant selection policies and criteria that:
t. Are consistent with the purpose of providing housing for very low-income and low-
income families;
2. Are reasonably related to program eligibility and the applicants' ability to perform
the obligations of the lease;
3. Provide for the selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and
4. Give prompt written notification to any rejected applicant of the grounds for any
rejection.
§ 92.254 Qualification as Affordable Housing: Homeownership
a. Acquisition with or without rehabilitation. Housing that is for acquisition by a family
must meet the affordability requirements of this paragraph (a).
1. The housing must be single-family housing.
2. The housing must be modest housing as follows:
i. In the case of acquisition of newly constructed housing or standard housing,
the housing has a purchase price for the type of single family housing that does
not exceed 95 percent of the median purchase price for the area, as described
in paragraph (a)(2)(iii)of this section.
ii. In the case of acquisition with rehabilitation, the housing has an estimated
value after rehabilitation that does not exceed 95 percent of the median
purchase price for the area, described in paragraph (a)(2)(ili) of this section.
iii. If a participating jurisdiction intends to use HOME funds for homebuyer
assistance or for rehabilitation of owner-occupied single-family properties, the
participating jurisdiction may use the Single Family Mortgage Limits under
Section 203(b) of the National Housing Act (I 2 U.S.C. 1709(b)) (which may
he obtained from the HUD Field Office) or it may determine 95 percent of the
median area purchase price for single family housing in the jurisdiction, as
51
follows. The participating jurisdiction must set forth the price for different
types of single family housing for the jurisdiction. The 95 percent of median
area purchase price must be established in accordance with a market analysis
which ensured that a sufficient number of recent housing sales are included in
the survey. Sales must cover the requisite number of months based on volume:
For 500 or more sales per month, a one-month reporting period; for 250
through 499 sales per month, a two-month reporting period; for less than 250
sales per month, at least a three-month reporting period. The data must be
listed in ascending order of sales price. The address of the listed properties
must include the location within the participating jurisdiction. Lot, square and
subdivision data may be substituted for the street address. The housing sales
data must reflect all, or nearly all, of the one-family house sales in the entire
participating jurisdiction. To determine the median, take the middle sale on the
list if an odd number of sales and if an even number, take the higher of the
middle numbers and consider it the median. After identifying the median sales
price, the amount should be multiplied by .95 to determine the 95 percent of
the median area purchase price. This information must be submitted to the
HUD Field office for review.
3. The housing must be acquired by a homebuyer whose family qualifies as a low-
income family and the housing must be the principal residence of the family
throughout the period described in paragraph (a)(4) of this section.
4. Periods of affordability. The HOME-assisted housing must meet the affordability
requirements for not less than the applicable period specified in the following table,
beginning after project completion. The per unit amount of HOME funds and the
affordability period that they trigger are described more fully in paragraphs (a)(5)(1)
(resale)and (ii) (recapture) of this section.
Homeownership assistance HOME amount . . .
per-unit Minimum period of affordability in years
Under$15,000 5
$151000 to $40,000 10
Over$40,000 15
5. Resale and recapture. To ensure affordability, the participating jurisdiction must
impose either resale or recapture requirements, at its option. The participating
jurisdiction must establish the resale or recapture requirements that comply with the
standards of this section and set forth the requirements in its consolidated plan.
HUD must determine that they are appropriate.
i. Resale. Resale requirements must ensure, if the housing does not continue to
be the principal residence of the family for the duration of the period of
affordability, that the housing is made available for subsequent purchase only
to a buyer whose family qualities as a low,-income family and will use the
52
property as its principal residence. The resale requirement must also ensure
that the price at resale provides the original HOME-assisted owner a fair return
on investment(including the homeowner's investment and any capital
improvement) and ensure that the housing will remain affordable to a
reasonable range of low-income homebuyers. The period of affordability is
based on the total amount of HOME funds invested in the housing.
A. Except as provided in paragraph(a)(5)(1)(13)of this section, deed
restrictions, covenants running with the land, or other similar mechanisms
must be used as the mechanism to impose the resale requirements. The
affordability restrictions may terminate upon occurrence of any of the
following termination events: foreclosure, transfer in lieu of foreclosure
or assignment of an FHA insured mortgage to HUD. The participating
jurisdiction may use purchase options, rights of first refusal or other
preemptive rights to purchase the housing before foreclosure to preserve
affordability. The affordability restrictions shall be revived according to
the original terms if, during the original affordability period, the owner of
record before the termination event, obtains an ownership interest in the
housing.
B. Certain housing may be presumed to meet the resale restrictions (i.e., the
housing will be available and affordable to a reasonable range of low-
income homebuyers; a low-income homebuyer will occupy the housing as
the family's principal residence; and the original owner will be afforded a
fair return on investment) during the period of affordability without the
imposition of enforcement mechanisms by the participating jurisdiction.
The presumption must be based upon a market analysis of the
neighborhood in which the housing is located. The market analysis must
include an evaluation of the location and characteristics of the housing
and residents in the neighborhood(e.g., sale prices, age and amenities of
the housing stock, incomes of residents, percentage of owner-occupants)
in relation to housing and incomes in the housing market area. An
analysis of the current and projected incomes of neighborhood residents
for an average period of affordability for homebuyers in the neighborhood
must support the conclusion that a reasonable range of low-income
families will continue to qualify for mortgage financing. For example, an
analysis shows that the housing is modestly priced within the housing
market area and that families with incomes of 55%to 80%of area median
can afford monthly payments under average FHA terms without other
government assistance and housing will remain affordable at least during
the next five to seven years compared to other housing in the market area;
the size and amenities of the housing are modest and substantial
rehabilitation will not significantly increase the market value; the
neighborhood has housing that is not currently owned by the occupants,
but the participating jurisdiction is encouraging homeownership in the
neighborhood by providing homeownership assistance and by making
improvements to the streets, sidewalks, and other public facilities and
services. If a participating jurisdiction in preparing a neighborhood
revitalization strategy under § 91.215(e)(2) of its consolidated plan or
F:mpowerment /one or Enterprise Community ity application under 24 C F R
53
part 597 has incorporated the type of market data described above, that
submission may serve as the required analysis under this section. If the
participating jurisdiction continues to provide homeownership assistance
for housing in the neighborhood, it must periodically update the market
analysis to verify the original presumption of continued affordability.
ii. Recapture. Recapture provisions must ensure that the participating jurisdiction
recoups all or a portion of the HOME assistance to the homebuyers, if the
housing does not continue to be the principal residence of the family for the
duration of the period of affordability. The participating jurisdiction may
structure its recapture provisions based on its program design and market
conditions. The period of affordability is based upon the total amount of
HOME funds subject to recapture described in paragraph (a)(5)(11)(A)(5)of
this section.
A. The following options for recapture requirements are acceptable to HUD.
The participating jurisdiction may adopt, modify or develop its own
recapture requirements for HUD approval. In establishing its recapture
requirements, the participating jurisdiction is subject to the limitation that
when the recapture requirement is triggered by a sale (voluntary or
involuntary)of the housing unit, and there are no net proceeds or the net
proceeds are insufficient to repay the HOME investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The
net proceeds are the sales price minus superior loan repayment(other than
HOME funds)and any closing costs.
1. Recapture entire amount. The participating jurisdiction may
recapture the entire amount of the HOME investment from the
homeowner.
2. Reduction during affordability period. The participating jurisdiction
may reduce the HOME investment amount to be recaptured on a
prorata basis for the time the homeowner has owned and occupied
the housing measured against the required affordability period.
3. Shared net proceeds. If the net proceeds are not sufficient to
recapture the full HOME investment (or a reduced amount as
provided for in paragraph (#5)(fi)(A)(2) of this section) plus enable
the homeowner to recover the amount of the homeowner's
downpayment and any capital improvement investment made by the
owner since purchase, the participating jurisdiction may share the net
proceeds. The net proceeds are the sales price minus loan repayment
(other than HOME funds) and closing costs. The net proceeds may
be divided proportionally as set forth in the following mathematical
formulas:
54
HOME Investment/HOME Investment _ HOME amount to be
+homeowner investment Net Proceeds
recaptured
0 90 9 0 0 0 9 0 9190091 G 0 01HOME Investment Net Proceeds= amount to homeowner
+homeowner investment
4. Owner investment returnedfirst. The participating jurisdiction may
permit the homebuyer to recover the homebuyer's entire investment
(downpayment and capital improvements made by the owner since
purchase) before recapturing the HOME investment.
5. Amount subject to recapture. The HOME investment that is subject
to recapture is based on the amount of HOME assistance that enabled
the homebuyer to buy the dwelling unit. This includes any HOME
assistance that reduced the purchase price from fair market value to
an affordable price, but excludes the amount between the cost of
producing the unit and the market value of the property (i.e., the
development subsidy). The recaptured funds must be used to carry
out HOME-eligible activities in accordance with the requirements of
this part. If the HOME assistance is only used for the development
subsidy and therefore not subject to recapture, the resale option must
be used.
6. Special considerations for single-family properties with more than
one unit. If the HOME funds are only used to assist a low-income
homebuyer to acquire one unit in single-family housing containing
more than one unit and the assisted unit will be the principal
residence of the homebuyer, the affordability requirements of this
section apply only to the assisted unit. If HOME funds are also used
to assist the low-income homebuyer to acquire one or more of the
rental units in the single-family housing, the affordability
requirements of§ 92.252 apply to assisted rental units, except that
the participating jurisdiction may impose resale or recapture
restrictions on all assisted units (owner-occupied and rental units) in
the single family housing. If resale restrictions are used, the
affordability requirements on all assisted units continue for the
period of affordability. If recapture restrictions are used, the
affordability requirements on the assisted rental units may be
terminated, at the discretion of the participating jurisdiction, upon
recapture of the HOME investment. (if HOME funds are used to
assist only the rental units in such a property then the requirements of
§ 92.252 would apply and the owner-occupied unit would not be
subject to the income targeting or affordability provisions of
§ 92.254.)
55
7. Lease-purchase. HOME funds may be used to assist homebuyers
through lease-purchase programs for existing housing and for
housing to be constructed. The housing must be purchased by a
homebuyer within 36 months of signing the lease-purchase
agreement. The homebuyer must qualify as a low-income family at
the time the lease-purchase agreement is signed. If HOME funds are
used to acquire housing that will be resold to a homebuyer through a
lease-purchase program, the HOME affordability requirements for
rental housing in § 92.252 shall apply if the housing is not
transferred to a homebuyer within forty-two months after project
completion.
8. Contract to purchase. If HOME funds are used to assist a homebuyer
who has entered into a contract to purchase housing to be
constructed, the homebuyer must qualify as aloes-income family at
the time the contract is signed.
9. Preserving affordability.
(1) Notwithstanding § 92.214 (a)(6), to preserve the affordability of
housing that was previously assisted with HOME funds and subject
to the requirements of§ 92.254(a), a participating jurisdiction may
use additional HOME funds to acquire the housing through a
purchase option, right of first refusal, or other,preemptive right before
foreclosure, or to acquire the housing at the foreclosure sale, to
undertake any necessary rehabilitation, and to provide assistance to
another homebuyer. The housing must be sold to a new eligible
homebuyer in accordance with the requirements of§ 92.254(a).
Additional HOME funds may not be used if the mortgage in default
was funded with HOME funds.
(ii) The total amount of original and additional HOME assistance
may not exceed the maximum per-unit subsidy amount established
under § 92.250. Alternatively to charging the cost to the HOME
program under § 92.206, the participating jurisdiction may charge the
cost to the HOME program under § 92.207, as a reasonable
administrative cost of its HOME program, so that the additional
HOME funds for the housing are not subject to the maximum per-unit
subsidy amount.
b. Rehabilitation not involving acquisition. Housing that is currently owned by a family
qualifies as affordable housing only if:
I. The estimated value of the property, after rehabilitation, does not exceed 95 percent
of the median purchase price for the area, described in paragraph (a)(2)(iii) of this
section; and
2. The housing is the principal residence of an owner whose family qualifies as a low-
income family at the time HOME funds are committed to the housing.
56
c. Ownership interest. The ownership in the housing assisted under this section must meet
the definition of"homeownership" in § 92.2.
d. New construction without acquisition. Newly constructed housing that is built on
property currently owned by a family which will occupy the housing upon completion,
qualifies as affordable housing if it meets the requirements under paragraph (a)of this
section.
§ 92.255 Converting Rental Units to Homeownership Units for Existing Tenants
The participating jurisdiction may permit the owner of HOME-assisted rental units to convert
the rental units to homeownership units by selling, donating, or otherwise conveying the units
to the existing tenants to enable the tenants to become homeowners in accordance with the
requirements of§ 92.254. If no additional HOME funds are used to enable the tenants to
become homeowners, the homeownership units are subject to a minimum period of
affordability equal to the remaining affordable period if the units continued as rental units. If
additional HOME funds are used to directly assist the tenants to become homeowners, the
minimum period of affordability is the affordability period under § 92.254(a)(4), based on the
amount of direct homeownership assistance provided.
§ 92.256 Reserved
§ 92.257 Religious organizations
a. Organizations that are religious or faith-based are eligible, on the same basis as any other
organization, to participate in the HOME program. Neither the federal government nor a
state or local government receiving funds under HOME programs shall discriminate
against an organization on the basis of the organization's religious character or affiliation.
b. Organizations that are directly funded under the HOME program may not engage in
inherently religious activities, such as worship, religious instruction, or proselytization,
as part of the assistance funded under this part. If an organization conducts such
activities, the activities must be offered separately, in time or location, from the
assistance funded under this part, and participation must be voluntary for the
beneficiaries of the assistance provided.
c. A religious organization that participates in the HOME program will retain its
independence from federal, state, and local governments, and may continue to carry out
its mission, including the definition, practice, and expression of its religious beliefs,
provided that it does not use direct HOME funds to support any inherently religious
activities, such as worship, religious instruction, or prose Iytization. Among other things,
faith-based organizations may use space in their facilities, without removing religious
art, icons, scriptures, or other religious symbols. In addition, a HOME-funded religious
organization retains its authority over its internal governance, and it may retain religious
terms in its organization's name, select its board members on a religious basis, and
include religious references in its organization's mission statements and other governing
documents.
57
d. An organization that participates in the HOME program shall not, in providing program
assistance, discriminate against a program beneficiary or prospective program
beneficiary on the basis of religion or religious belief.
e. HOME funds may not be used for the acquisition, construction, or rehabilitation of
structures to the extent that those structures are used for inherently religious activities.
HOME funds may be used for the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used for conducting eligible activities under
this part. Where a structure is used for both eligible and inherently religious activities,
HOME funds may not exceed the cost of those portions of the acquisition, construction,
or rehabilitation that are attributable to eligible activities in accordance with the cost
accounting requirements applicable to HOME funds in this part. Sanctuaries, chapels, or
other rooms that a HOME-funded religious congregation uses as its principal place of
worship, however, are ineligible for HOME-funded improvements. Disposition of real
property after the term of the grant, or any change in use of the property during the term
of the grant, is subject to government-wide regulations governing real property
disposition (see 24 CFR parts 84 and 85).
f. If a state or local government voluntarily contributes its own funds to supplement
federally funded activities, the state or local government has the option to segregate the
federal funds or commingle them. However, if the funds are commingled, this section
applies to all of the commingled funds.
§ 92.258 Elder Cottage Housing opportunity (ECHO) Units
a. General. HOME funds may be used for the initial purchase and initial placement costs of
elder cottage housing opportunity (ECHO) units that meet the requirements of this
section, and that are small, free-standing, barrier-free, energy-efficient, removable, and
designed to be installed adjacent to existing single-family dwellings.
b. Eligible owners. The owner of a HOME-assisted ECHO unit may be:
1. The owner-occupant of the single-family host property on which the ECHO unit
will be located;
2. A participating j urisdiction; or
3. A non-profit organization.
c. Eligible tenants. During the affordability period, the tenant of a HOME-assisted ECHO
unit must be an elderly or disabled family as defined in 24 CFR 5.403 and must also be a
low-income family.
d. Applicable requirements. The requirements of§ 92.252 of this part apply to HOME-
assisted ECHO units, with the following modifications:
1. Only one ECHO unit may be provided per host property.
2. The ECHO unit owner may choose whether or not to charge the tenant of the ECHO
unit rent. but if a rent is charged, it must meet the requirements of§ 92.252.
58
EXHIBIT "H"
DAMS BACON REQUIREMENTS
Federal Labor Standards Provisions U.S.Department of Housing
and Urban Development
Office of Labor Relations
Applicability (1) The work to be
performed by the classification
The Project or Program to which the construction work requested is not performed by a classification In the wage
covered by this contract pertains is being assisted by the determination; and
United States of America and the following Federal Labor (2) The classification is utilized in the area by the
Standards Provisions are included in this Contract construction industry; and
pursuant to the provisions applicable to such Federal
(3) The proposed wage rate, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to the
A. 1. (1) Minimum Wages. All laborers and mechanics wage rates contained in the wage determination.
employed or working upon the site of the work, will be paid (b) If the contractor and the laborers and mechanics to be
unconditionally and not less often than once a week, and employed in the classification (if known), or their
without subsequent deduction or rebate on any account representatives, and HUD or its designee agree on the
(except such payroll deductions as are permitted by classification and wage rate (including the amount
regulations issued by the Secretary of Labor under the designated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages of the action taken shall be sent by HUD or its designee to
and bona fide fringe benefits (or cash equivalents thereof) the Administrator of the Wage and Hour Division,
due at time of payment computed at rates not less than Employment Standards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washington, D.C. 24210. The Administrator, or an
Secretary of Labor which is attached hereto and made a authorized representative, will approve, modify, or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 34
which may be alleged to exist between the contractor and days of receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably anticipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section l(b)(2) of the Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv), also, regular contributions made or costs (c) In the event the contractor, the laborers or mechanics
incurred for more than a weekly period (but not less often to be employed in the classification or their
than quarterly) under plans, funds, or programs, which representatives, and HUD or its designee do not agree on
cover the particular weekly period, are deemed to be the proposed classification and wage rate (including the
constructively made or incurred during such weekly period. amount designated for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all interested parties and the recommendation
wage rate and fringe benefits on the wage determination
for the classification of work actually performed, without of HUD or its designee, to the Administrator for determination. The Administrator, or an authorized
regard to skill, except as provided in 29 CFR 5.5(x)(4).
Laborers or mechanics performing work in more than one representative, will issue a determination within 30 days of classification may be compensated at the rate specified for receipt and so advise HUD or its designee or will notify
each classification for the time actually worked therein: HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent in each classification in which 1215.0140 }
work is performed. The wage determination (including any
additional classification and wage rates conformed under (d) The wage rate (including fringe benefits where
29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH- appropriate) determ fined pursuant to subparagraphs
1321) shall be posted at all times by the contractor and its (1)(1i)(b) or (c) of this paragraph, shall be paid to all
subcontractors at the site of the work in a prominent and workers performing work in the classification under this
accessible, place where it can be easily seen by the contract from the first day on which work is performed in
workers. the classification.
(11) (a) Any class of laborers or mechanics which is not (ill) Whenever the minimum wage rate prescribed in the
listed in the wage determination and which is to be contract for a class of laborers or mechanics includes a
employed under the contract shall be classified in fringe benefit which is not expressed as an hourly rate, the
conformance with the wage determination. HUD shall contractor shall either pay the benefit as stated in the
approve an additional classification and wage rate and wage determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria benefit or an hourly cash equivalent thereof.
have been met: (iv) if the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
form HUD-4010(0612049)
Pre►nous editions are obsolete Page 1 of 5 ref.Handbook 1344_�
of the wages of any laborer or mechanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anticipated In providing bona fide fringe affected, and records which show the costs anticipated or
benefits under a plan or program, Provided, That the the actual cost incurred in providing such benefits.
Secretary of Labor has found, upon the written request of Contractors employing apprentices or trainees under
the contractor, that the applicable standards of the Davis- approved programs shall maintain written evidence of the
Bacon Act have been met. The Secretary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account trainee programs, the registration of the apprentices
assets for the meeting of obligations under the plan or trainees, and the ratios and wa g s a rate ibd and
prescribed in the
program. (Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withholding. HUD or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorized (1I) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under this payrolls to HUD or its designee if the agency is a party to
contract or any other Federal contract with the same prime the contract, but if the agency is not such a party, the
contractor, or any other Federally-assisted contract contractor will submit the p Y
subject to Davis-Bacon prevailing wage requirements, Payrolls to the applicant
p 9 9 q sponsor, or owner, as the case may be, for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered accurately and completely all of the information required
necessary o q
y pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(I) except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
contractor or any subcontractor the full amount of wages included on weekly transmittals. Instead the payrolls shall
required by the contract In the event of failure to pay any only need to include an individually identifying number for
laborer or mechanic, including any apprentice, trainee or each employee (e.g., the last four digits of the employee's
het
helper,
p employed or working on the site of the work, all or social security number). The required weekly payroll
part of the wages required by the contract, HUD or its information may be submitted in any form desired.
designee may, after written notice to the contractor, Optional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, p p
PP take such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any further ht(o://www.dgi.aev& -fQ[M;-IW_h3l7in4tr.htm or its
payment, advance, or guarantee of funds until such successor site. The prime contractor Is responsible for
violations have ceased. HUD or its designee may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounts Contractors and subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and current address of each
subcontractor to the respective employees to whom they covered worker, and shall
are due. The Comptroller General shall make such HUD or its designee Provide them upon request to
gee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party,
contracts. P Y. e
contractor will submit the payrolls to the applicant
3. (l) Payrolls and basic records, Payrolls and basic sponsor, or owner, as the case may be, for transmission to
records relating thereto shall be maintained by the HUD or its designee, the contractor, or the Wage and Hour
contractor during the course of the work preserved for a Division of the Department of Labor for purposes of an
period of three years thereafter for all laborers and investigation or audit of compliance with prevailing wage
mechanics working at the site of the work. Such records requirements. It is not a violation of this subparagraph for
shall contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, his or her correct addresses and social security numbers to the prime
classification, hourly rates of wages paid (including rates contractor for its own records, without weekly submission
of contributions or costs anticipated for bona fide fringe to HUD or its designee. (Approved by the Office of
benefits or cash equivalents thereof of the types described Management and Budget under OMB Control Number
in Section I(b)(2)(B) of the Davis-bacon Act), daily and 1215-0149.)
weekly number of hours worked, deductions made and (b) Each
payroll submitted shall be accompanied by a
actual wages paid. Whenever the Secretary of Labor has "Statement of Compliance," signed by the contractor or
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount of any costs the payment of the p Y p �Se$
reasonably anticipated in Persons employed under the contract
Y p providing benefits under a plan and shall certify the following:
or program described in Section I(b)(2)(B) of the Davis- (1) That the payroll for the payroll period contains the
Bacon Act, the contractor shall maintain records which
show that the commitment to provide such benefits is information required to be provided under 29 CFR 5.5
enforceable, that the Ian or (a)(3)(ii), the appropriate information is being maintained
p program is financially under 29 CFR 5.5(a)(3)(i), and that such information is
responsible, and that the plan or program has been
correct and complete;
Previous editions are obsolete
form HUD-4010(06/2009)
Wage 2 of 5 ref_Handbook 13441
(2) That each laborer or mechanic (including each helper, is not registered or otherwise employed as stated above.
apprentice, and trainee) employed on the contract during shall be paid not less than the applicable wage rate on the
the payroll period has been paid the full weekly wages wage determination for the classification of work actually
earned, without rebate, either directly or indirectly, and performed. In addition, any apprentice performing work on
that no deductions have been made either directly or the job site in excess of the ratio permitted under the
indirectly from the full wages earned, other than registered program shaft be paid not less than the
permissible deductions as set forth in 29 CFR Part 3; applicable wage rate on the wage determination for the
(3) That each laborer or mechanic has been paid not less work actually performed. Where a contractor is performing
than the applicable wage rates and fringe benefits or cash construction on a project in a locality other than that in
equivalents for the classification of work performed, as which its program is registered, the ratios and wage rates
specified in the applicable wage determination (expressed in percentages of the journeyman's hourly
incorporated into the contract. rate) specified in the contractor's or subcontractor's
(c) The weekly submission of a properly executed registered program shalt be observed. Every apprentice
certification set forth on the reverse side of Optlonal Form 'rust be paid at not less than the rate specified in the
WH-347 shall satisfy the requirement for submission of the registered program for the apprentice's level of progress,
"Statement of Compliance" required by subparagraph expressed as a percentage of the journeymen hourly rate
A.3,(iI)(b). specified in the applicable wage determination.
(d) The falsification of any of the above certifications may Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeshi P program.
subject the contractor or subcontractor to civil or criminal If the
apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section a benefit
231 of Title 31 of the United States Code. apprentices must be paid the full amount of fringe s
listed on the wage determination for the applicable
(ill) The contractor or subcontractor shall make the classification. If the Administrator determines that a
records required under subparagraph A.3.(i) available for different practice prevails for the applicable apprentice
inspection, copying, or transcription by authorized classification, fringes shall be paid in accordance with that
representatives of HUD or its designee or the Department determination. In the event the Office of Apprenticeship
of Labor, and shall permit such representatives to Training, Employer and Labor Services, or a State
interview employees during working hours on the job. If Apprenticeship Agency recognized by the Office,
the contractor or subcontractor fails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer be permitted to utilize
may, after written notice to the contractor, sponsor, apprentices at less than the applicable predetermined rate
applicant or owner, take such action as may be necessary for the work performed until an acceptable program is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the (I t) Tralnees. as Except
required records upon request or to make such records P provided in 29 CFR 5.18,
trainees will not be permitted to work at less than the
available may be grounds for debarment action pursuant to predetermined rate for the work performed unless h
29 CFR 5.12. P they are
employed pursuant ',to and individually registered in a
4. Apprentices and Tralnees, program which has received prior approval, evidenced by
(I) Apprentices. Apprentices will be permitted to work at format certification by the U.S. Department of Labor,
less than the predetermined rate for the work they Employment and Training Administration. The ratio of
performed when they are employed pursuant to and trainees to journeymen on the job site shall not be greater
individually registered in a bona fide apprenticeship than permitted under the plan approved by the
program registered with the U.S- Department of Labor, Employment and Training Administration. Every trainee
Employment and Training Administration, Office of must be paid at not less than the rate specified in the
Apprenticeship Training, Employer and Labor Services, or approved program for the trainee's level of progress,
with a State Apprenticeship Agency recognized by the expressed as a percentage of the journeyman hourly rate
Office, or if a person is employed in his or her first 90 specified in the applicable wage determination. Trainees
days of probationary employment as an apprentice in such shall be paid fringe benefits in accordance with the
an apprenticeship program, who is not individually provisions of the trainee program. If the trainee program
registered in the program, but who has been certified by does not mention fringe benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on the wage
Services or a State Apprenticeship Agency (where determination unless the Administrator of the Wage and
appropriate) to be eligible for probationary employment as Hour Division determines that there is an apprenticeship
an apprentice. The allowable ratio of apprentices to Program associated with the corresponding journeyman
journeymen on the job site in any craft classification shall wage rate on the wage determination which provides for
not be greater than the ratio permitted to the contractor as less than full fringe benefits for apprentices. Any
to the entire work force under the registered program. Any employee listed on the payroll at a trainee rate who is not
worker listed on a payroll at an apprentice wage rate. who registered and participating in a training plan approved by
Previous eddions are obsolete
farm HUD-4414(0612009)
Page 3 of 5 ref.Handbook 13" 1
the Employment and Training Administration shall be paid awarded HUD contracts or participate in HUD programs
not less than the applicable wage rate on the wage pursuant to 24 CFR Part 24.
determination for the work actually performed. In addition, (li) No part of this contract shall be subc n r
any trainee performing work an the job site in excess of a t acted to any
the ratio permitted under the registered program shall be Person ❑r firm ineligible for award of a Government
contract by virtue of Section 3(a) of the Davis-Bacon Act
paid not less than the applicable wage rate on the wage or 29 CFR 5.12(a)(1) or to be awarded
determination for the work actually performed. In the � HUD contracts or
event the Employment and Training Administration Participate in HUD programs pursuant to 24 CFR Part 24,
withdraws approval of a training program, the contractor (lfi) The penalty for making false statements is prescribed
will no longer be permitted to utilize trainees at less than in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally,
the applicable predetermined rate for the work performed U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
until an acceptable program is approved. "Federal Housing Administration transactions", provides in
lli Equal employment a opportunity. The utilization of part: 'Whoever, for the purpose of . . . influencing in any
apprentices, trainees and journeymen under 29 CFR Part 5 way the action of such Administration..... makes, utters or
shall be in conformity with the equal employment Publishes any statement knowing the same to be false.....
s
opportunity requirements of Executive Order 11248, as hall be fined not more than $5,000 or imprisoned not
amended, and 29 CFR Part 30. more than two years, or both."
S. Compliance with Copeland Act requirements. The 11. Complaints, Proceedings, or Testimony by
contractor shall comply with the requirements of 29 CFR Employees. No laborer or mechanic to whom the wage,
Part 3 which are incorporated by reference in this contract salary, or other labor standards provisions of this Contract
are applicable shall be discharged or in any other manner
6. Subcontracts. The contractor or subcontractor will discriminated against by the Contractor or an
insert in any subcontracts the clauses contained in subcontractor because such employee has filed any
subparagraphs 1 through 11 in this paragraph A and such complaint or instituted or caused to be instituted any
other clauses as HUD or its designee may b appropriate Y
9 Y Y proceeding or has testified or is about to testify in any
instructions require, and a copy of the applicable proceeding under or relating to the labor standards
prevailing wage decision, and also a clause requiring the applicable under this Contract to his employer.
subcontractors to include these clauses in any lower tier
B. Contract VtiCark Hours and Safety Standards Act. The
subcontracts. The prime contractor shall be responsible
Provisions of this paragraph B are applicable where the amount of the
for the compliance by any subcontractor or lower tier
subcontractor with all the contract clauses in this prime contract exceeds $100,O00. As used in this paragraph, the
paragraph.
terms"laborers"and"mechanics include watchmen and guards.
7. Contract termination; debarment. A breach of the (1) Overtime requirements. No contractor or subcontractor
contract clauses in 29 CFR 5.5 may be grounds for contracting for any part of the contract work which may require or
termination of the contract and for debarment as a involve the employment of laborers or mechanics shall require or
contractor and a subcontractor as provided in 29 CFR Permit any such laborer or mechanic in any workweek in which the
5.12. individual is employed on such work to work in excess of 40 hours in
such workweek unless such laborer or mechanic receives
8. Compliance with Davis-Bacon and Related Act Requirements. compensation at a rate not less than one and one-half times the basic
All rulings and interpretations of the Davis-Bacon and rate of pay for all hours worked in excess of 40 hours in such
Related Acts contained in 29 CFR Parts 1, 3, and 5 are workweek.
herein incorporated by reference in this contract
(2) Violation; liability for unpaid wages; liquidated
9. Disputes concerning labor standards. Disputes damages. In the event of any violation of the clause set
arising out of the labor standards provisions of this forth in subparagraph (1) of this paragraph, the contractor
contract shall not be subject to the general disputes and any subcontractor responsible therefor shall be liable
clause of this contract. Such disputes shall be resolved in for the unpaid wages. In addition, such contractor and
accordance with the procedures of the Department of subcontractor shall be liable to the United States (in the
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes case of work done under contract for the District of
within the meaning of this clause include disputes between Columbia or a territory, to such District or to such
the contractor (or any of its subcontractors) and HUD or territory), for liquidated damages. Such liquidated
its designee, the U.S. Department of Labor, or the damages shall be computed with respect to each individual
employees or their representatives. laborer or mechanic, including watchmen and 9 uards.
14. (i) Certification of Eligibility. By entering into this employed in violation of the clause set forth in
contract the contractor certifies that neither it (nor he or subparagraph (1) of this paragraph, in the sum of$10 for each
she) nor any person or firm who has an interest in the calendar day on winch such individual was required or permitted to
contractor's firm is a person or firm ineligible to be worts in excess of the standard workweek of 40 hours without payment
awarded Government contracts by virtue of Section 3(a) of of the overtime wages required by the clause set forth in sub
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be paragraph (1) of this paragraph.
Previous editions are obsolete
form HUD-4010(0$120M)
Page 4 of 5 ref. Handbook 1344 1
(3) Withholding for unpaid wages and liquidated
damages. HUD or Its designee shall upon its own action
or upon written request of an authorized representative of
the Department of Labor withhold or cause to be withheld,
from any moneys payable on account of work performed by
the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contract,
or any other Federally-assisted contract subject to the
Contract Work Hours and Safety Standards Act which Is
held by the same prime contractor such sums as may be
determined to be necessary to satisfy any Ilabilitles of
such contractor or subcontractor for unpaid wages and
liquidated damages as provided In the clause set forth In
subparagraph (2) of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall
insert In any subcontracts the clauses set forth in
subparagraph (1) through (4) of this paragraph and also a
clause requiring the subcontractors to include these
clauses In any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses
Set forth in subparagraphs (1) through (4) of this
paragraph.
C. Health and Safsty. The provisions of this paragraph C are
applicable where the amount of the prime contract exceeds$104,000.
(1) No laborer or mechanic shall be required to work In
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as determined under construction safety and health
standards promulgated by the Secretary of Labor by
regulation.
(2) The Contractor shall comply with all regulations
issued by the Secretary of tabor pursuant to Title 29 Part
1928 and failure to comply may result In imposition of
sanctions pursuant to the Contract Work Hours and Safety
Standards Act, (Public Law 91-54, 83 Stat 98). 40_ USC
=1...!21 12.Q.
(3) The contractor shall Include the provisions of this
paragraph In every subcontract so that such provisions will
be binding on each subcontractor. The contractor shall
take such action with respect to any subcontractor as the
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provisions.
Previous editions are obaotm@
form HUD-40110(Oar o)
Page 5 of 5 ref.Handbook 1344.1
EXHIBIT 6611-1"
WAGE DECISION
Page I of 4
General Decision Number: TX130025 01/04-/2013 7X25
Superseded General Decision Number: TX20120025
State: Texas
Construction Type: Residential
Counties: Johnsono, Parker and Tarrant Counties in Texas.
Residential Projects consisting of single family hordes and
apartments up to and including 4 stories.
Modification Number Publication Date
0 01/04/2013
SUTX1990-020 04/01/1390
Rates Fringes
CARPENTER (exc3.uding drywall
hanging and form setting) . . . . .. ,$ 9.315
CEMENT MASON/CONCRETE
FINISHER (Excluding forge
settings . . . . . . . .. .. . . . . .. . . . . . .. .$ 9.48
DRYWALL HANGER. .. . . . . . . . .. . . . . . . .$ 9000
ELECTRICIAN. . . . .. . . . . . . . . . . . . . . . .5 10»2I4
Form Sett$r= . . ... . . . . . .. . . . . . . . . .$ 9.194
H.VAC MECHANIC (including
=:duct, excluding pipe work) . . . . . . ,$ 8.337
Laborer, cc�mm�on.. . . . . . .. . . . . . . . . .$ 7.25
Painters:
brush. . . . . .. . . . . . . . . . . . . . .. .$ 3.85
::pray. . . . . . . . . . . . . . . . . . . . . . .5 10000
PLUMBER (Including HVAC WORK) . . . .$ 10.687
F�OOFER# Including Built up,
'omposition and Single Ply
�flafs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-646
'.beet }Metal Worker xcluding
;SAC-duct ��rark� . . . . . . . . . . . . . . . . . ,a 14. 103
. ILE SETTER. . . . . . . . . . . . . . . . . . . . . . 11.50
"PUCK DRIVER. . . . . . . . . . . . . . . . . . . . . 7. -,5
;ELDERS prescribed :1r -ratt rertorminq
--- ;Ittpud www.Wdol.govi wduuscatile /davisbacow,rX25 dvb7v--z:t1
Page 2 of 4
WELDERS -- Receive rate prescribed for craft performing
operation to which welding is incidental.
Unlisted classifications needed for work not included within
the scope of the classifications listed may be added after
award only as provided in the labor standards contract clauses
429CFR 5.5 (a) (1) (iii) ) .
_----___------_---------____________-______ -----------------------------
The body of each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The classifications are listed in alphabetical
order of "identifiers" that indicate whether the particular
rate is union or non--union.
Union Identifiers
An identifier enclosed in dotted lines beginning with
characters other than "SU" denotes that the union
classification and rate have found to be prevailing for that
classification. Example: PLUM0198-005 07/01/2011. The first
four letters , PLUM, indicate the international union and the
Four-digit number, 0198, that follows indicates the local union
number or district council number where applicable , i.e.,
Plumbers Local 0198. The.next number, 005 in the example, is
an internal number used in processing the wage determination.
The date, 07/01/2011, following these characters is the
effective date of the most current negotiated rate/collective
bargaining agreement which would be July 1, 2011 in the above
example.
Union prevailing wage rates will be updated to reflect any
changes in the collective bargaining agreements governing the
rates.
0000/9999: weighted union wage rates will be published annually
each January.
'ion-Union Identifiers
Classifications listed under an "SU" identifier were derived
from survey data by computing average rates and are not union
rates; however, the data used in computing these rates may
include both union and non-union data. Example: SULA2004--007
5/13/2010. SU indicates the rates are not union majority rates,
LA indicates the State of Louisiana; 2004 is the year of the
s-,.irvey; and 007 is an internal number used in producing the
wage _ieterminat ion. A 1993 or later date, 5/13/2010, indicates
' ne lass i Eic:at,ons and rates under that ident i f ier were issued
http://www.wdoi.gov/wdol/scafdes/davisbacon/TX25.dvb?v--O
4/19/2013
Page 3 of 4
as a General Wage Determination on that date.
survey wage rates will remain in effect and will not change
until a new survey is conducted.
--------------- __----------------------_ -_-------
WAGE DETERMINATION APPEALS PROCESS
1. ) Has there been an initial decision in the matter? This can
be:
an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting orth
g a position on
a wage determination matter
* a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
for summaries of surveys, should be with the Wage and Hour
Regional Office for the area in which the survey was conducted
because those Regional Offices have responsibility for the
Davis--Bacon survey program. If the response from this initial
contact is not satisfactory, then the process described in 2. )
and 3. ) should be followed.
With regard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2. ) If the answer to the question in 1.) is yes, then an
interested party (those affected by the action) can request
review and reconsideration from the wage and Hour Administrator
(See 29 CFR Part 1.8 and 29 CFR Part 7) . 'Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the
interested party's position and by any information (wage
payment data, project description, area practice material,
etc. ) that the requestor considers relevant to the issue.
3. ) If the decision of the Administrator is not favorable, an
interested party may appeal directly to the Administrative
Review Board (formerly the Wage Appeals Board) . Trite to:
Administrative Review Board
`�•:�.
Department of Labor
.LJO `,,:)nstitut 1Lon Avenue, N.W.
flash ington, DC 20214
http://www.wdol.gov/wdol/scaflies/davi,sbacon/TX25.dvb?v=O
4/19/2013
Page 4 of 4
4. 3 All decisions by the Administrative Review Board are final,
END OF GENERAL DECISION
littP://Www.wdol.gov/wdol/scaftles/davisbaconfM5.dvb.?v--O
EXHIBIT "H-2"
CONTRACTOR INFORMATION FORM
City of Fort worth
Community Development Block Grant(CDBG)
Construction Projects
CONTRACTOR INFORMATION
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 p y n o r my corporate officers (i f
incorporated)are listed in the list of Debarred, Suspended, and
p Ineligible Contractors maintained
by the U.S Department of Housing and Urban Development p (HUD).
Signature:
EXHIBIT 66H-3"
SUBCONTRACTOR INFORMATION FORM
City of Fort Worth
Community Development Block Grant(CDBG)
Construction Projects
SUBCONxr CTQR TNFORMAI ON
Date:
Project:
Subcontractor:
Address:
city
Telephone: Fax:
Federal I.D. #:
Dicers of the Corporation:
President:
Vice President:
Secretary:
Treasurer:
If sole ownership or partnerships list owner(s):
I certify at the time of execution, hereof, neither m company norm co (if Y p Y y rpo rate officers
incorporated) are listed in the list of Debarred, Suspended, and Ineligible con
b the tractors maintained
y e U.S U.S Department o f Housing and Urban Development(HUD).
Signature:
EXHIBIT "H-4"
LABOR RELATIONS GUIDE
• ��1t�tq„ ' •
U.S. Department of Housing
* * and Urban Development
`4%ol" Labor Relation •
Relations Desk Guide
LR01.DD
i
1
•.tis r
dA
LAB
OR STA
NDARD
i
ti
2
i
y
x
rL
Contractor-'s
to Prevailing
ge Requirements
for FederallymAssisted Construction Project-S
r
C
_ I
January 2012 •�
r
Previous versions obsolete 01 ---,�
AN
INTRODUCTION
This Guide has been prepared for ou as a contractor or performing work on construction
ro ects
that are assisted by the Department of Housing �
g and Urban Development and subject to Davis-
Bacon prevailing wage requirements. This Guide does not address contractor requirements
involved in direct Federal contracting where HUD or another Federal agency enters into a
procurement contract. In this latter case, the Federal Acquisition Regulations
cable. While q egulations AFAR} are appli-
le the guidance contained in this Guide is generally •
covered g y applicable to any Davis-Bacon
Project, specific questions pertaining to direct Federal contracts should be addressed
to the Contracting Officer who signed the contract for the Federal agency.
Our objective here is to provide you with a uide which h is simple and non bureaucratic yet
comprehensive and which will help you better understand and comply with Davis-Bacon labor
standards. HUD's Office of Labor Relations worked closely
ely wi#h the Department of Labor's
Wage and Hour Division to make sure that the labor
standards provisions in your contract and
the specifics of complying with them represent the latest '
p test information. It is the Department of
Labor which has general administrative oversight o g fall Federal contracting agencies, such as
HUD, which administer the day-to-day responsibilities .
Y p of enforcing Davis-Bacon provisions in
construction contracts they either fund or assist in funding.
g
There are three chapters in this Guide. The first chapter r offers a brief description of the laws
and regulations associated with Federal labor standards administration and enforcement and
discusses both what's in your contract that requires D •
. q Davis-Bacon compliance and your respon-
sibilities. The second chapter deals with labor standards
ds and payroll reporting requirements.
The third chapter discusses what can ha pp en in the event there is a dispute about the wage
rates that should be (or have been) paid and an back
Y wages that may be due.
Finally, not all HUD construction projects are covered
by Davis-Bacon wage rates. For the pur-
pose of this Guide, we are assuming hat a determination p
g na#ion has already been made that Davis-
Bacon wage rates are applicable. Should ou wish a -Y assistance in determining whether Davis-
Bacon wage rates apply to a particular project or if you need other rely .
related technical ica I assistance,
please consult with the HUD Labor Relations Field staff for your area. If you don't which
staff to contact, a list of Labor Relations field offices a '
and their geographic areas and telephone
numbers can be found on HUD's Home Page a#the address ess below.
Visit the office of Labor Relations on-line:
hU :Ilwww.hud.a0vlofficesloIr
Obtain additional copies of this Guide and other u '
p blications at our website or by telephone
from HUD's Customer Service Center at (800)767-7468.
i
f
f
i
f,
K
i
TABLE OF CONTENTS
INTRODUCTION.........
.......................................................................................................
i
C HAPTER I LAWS, REGULATIO
NS, CONTRACTS
AND RESPONSIBILITIES....
1-1 DAVIS-BACON AND OTHER LABOR LAWS. .............................. _
a The Davis-Bacon Act (DBA) .........................
The .......Contract Work Hours and Safe Standar (CWHSSA)90'0'0* .•• ty d s Act c The Co ......................•i-�
d.• Copeland Act (Anti-Kickback Act}
The Fair Labor Standards Act (FLSA)
2 DAVIS-BACON REGULATIONS..... ......9......... 1-2
3 •• ..... ..... ......... .•..•.•.•............. 1-2
CONSTRUCTION CONTRACT PROVISIONS .... .. ....
............ ................1-2 RESPONSIBILITY OF THE PRINCIP AL CONTRACTOR.......
_
1-5 RESPONSIBILITY OF THE CONTRACT .................. � 3
RACT ADIIAINISTRATOR...................... /J■�i
•.•.•..... ■-4
CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
SECTION - I THE BASICS
2-1 THE WALE DECISION................. .
a.be The work classifications and wage rates.. . •'••
Posting ... ....
g the wage decision .............. ....
........................
2 ADDITIONAL " ....................... ..............
TRADE" CLASSIFICATIONS AND WAGE ..
a Additional I RATES.......................2.2
be• classification rules
Making the request......
.................................................... ........ ..... ... ........
c. HUD review 2-3
..................
d. DOL decision........
... ..... .....
........ .............. .......... ............. ..... ... ......
2-3 CERTIFIED PAYROLL REP ..... ...2-3
a. Payroll formats .. ....................•..........2-4
.......... ....... .......... ..... ..... ... ... .......
b• Payroll certifications ............. .... ...... ....
C. "No work" payrolls ......................................................• .. .... .. .......................................................
Payroll review and
• submission
....... .............................. ........ ..... ...
e. Payroll retention ............. ... .............2-5
f. Payroll inspection................. ... .....................................•................
2-4 DAVIS-BACON DEFINITIONS• •.....................................•...••..................................2-5
a. Laborer or mechanic ...........................................................................•...2-5
c. Apprentices and trainees............ .............................................
d. Prevailing wages or wage rates ....................
e. Fringe benefits............................ - ............. ................................
f. Overtime........................ ........................................................................2-7
g. Deductions .......... .....................................................................................2-7
h. Proper designation .............................................................................................2-$
9 of trade............................................
�. Site of work....................... ....................................2-8
iii
SECTION - II REPORTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT
a■ Project and contractor/subcontractor .■••••••■'••■••■•••••••'■ -9
b. ■ ter informs#ion ....
..... ..... .......
Employee information ...........
............... ........................................................................
c. Work classification .2-9
.............................. .......................... ....... ............ .......
d• Hours worked •• 2_9
e. Rate of pay 0
............ ................ ..... ...... ....... ..... ..... .......
f. Gross wages earned ............ •• - 2-10
g Deductions
Net pay........................
i. State compliance ....................................................2-1
Statement of c p ance
is Signature.......... .. 1
.................................................................................................
SECTION III - PAYROLL REVIEWS AND
CORRECTIONS
2-5 COMPLIANCE REVIEWS.............
a. On-site int erviews....................................
b. Project payroll reviews .............................
2-7 TYPICAL PAYROLL �' -- .................... 2
ERRORS AND REQUIRED CORRECTI ................
a Inadequate ua#e ONS .................■.•...2-12
• q payroll information.
b. Missing identification number 2-12
c. Incomplete payrolls .....
do Classifications .............
...... ..................... ... .................................... ...............
e. Wage Rates.............. .. 2-13
...................
f. Apprentices and trainees.... •
g. Overtime ..
h. ..................
............ .....
Computations
.................................... .............. .......... ........ ....... ...........
i. Deductions ...... ..... ...... 2-13
...................
j. Fringe benefits.............. ...
k. Signature
.......................
...................... 4
... .............. .................. ................
I. On-site interview comparisons . .. .... .... -�
pa riso ns......... ..
.......... ........ ...
M.
Correction certified payroll ..... ... ..
y ................
2-8 RESTITUTION ........................... ........ .................2-14
UTION FOR UNDERPAYMENT OF WAG - •• •
a. Notification.... .
.......... .....
Cam .............. ....... ..... ... ... ... .....
b. Computing wage restitution........ ...... -14
c. Correction certified ...... ...
payrolls.......................
d. Review .........................................................2-15
of correction CPR .........................
e. Unfound workers ........... .........................................................2-15
......................
iv
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS
AND ESCROW
ACCOUNTS, AND SANCTIONS.............
3-1 INTRODUCTION ...........................
........................
2 ADMINISTRATIVE REVIEW ......... ................
W ON LABOR STANDARDS DISPUTES
.
a Additional classifications TES.....................3-�
• sifications and
. wage rates...........................................................3-�
b. Findings of underpayment................
3-2
........
3-3 WITHHOLDING .............HHOLDING.......
..... ..........
........ ... ................... ...... ..
4 DEPOSITS AND ESCROWS ... ........ ... ... -2
3-5 ADMINISTRATIVE SANCTIONS .... .. .
a. DOL debarment •. .. -4
..... ... .....
. HUD sanctions
.....................
.......... .....
3-6 FALSIFICATION .... ............................... .. .... �
OF CERTIFIED P REP ..... ............ ....3-
AYROLL ORTS ..
....... .............. ..
....... ........3_
APPENDICIES
ACRONYMS AND SYMBOLS.............
DAVIS-BACON - RELATED WEB SIT ....*.........................................................................A-�
HUD-472 , Project Wage Rate ...........................A-2
Sheet.........................................
WH-341, Payroll Form/Statement of Co .....................................A-3
m plea nce........... ..
.........................
v
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 DAVI -BACON AND OTHER LABOR LAWS
a. The Davis-Bacon Act (DBA) The Davis-Bacon Act requires the payment of prevailing
wage rates (which are determined by the U.S. Department of Labor) to all laborers and
mechanics on 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 b the DBA itself elf since HUD seldom contracts
directly for construction services. Most often, if Davis-Bacon wage rates apply to a HUD
project it is because of a labor provision contained in one of HUD's Related Acts" such
as the U. S. Housing Act of 1937, the National Housing Act, the Housing and Community
Development Act of 1974, the National Affordable Housing Act of 1990, and the Native
American Housing Assistance and Self-Determination Act of 1996. The Related Acts are
often referred to as the Davis-Bacon and Related Acts or DBRA.
b. The Contract Work Hours and Safet; dards Act ( CWHSSA
requires time and one-half pay for overtime (O/T) hours (over 40 in any workweek)
worked on the covered project. The CWHSSA applies to both direct Federal
contracts and to indirect Federally-assisted contracts except where the assistance
is solely in the nature of a loan guarantee or insurance. CWHSSA violations
carry a liquidated damages penalty ($10/day per violation). Intentional violations
Of CWHSSA standards can be considered for Federal criminal prosecution.
CWHSSA does not apply to prime contracts of$100,000 or less. In addition, some HUD
projects are not covered by CWHSSA because some HUD programs only provide lo
� guarantees or insurance. CWHSSA also does not apply to construction or rehabilitation
contracts that are not subject to Federal prevailing wage rates (e.g., Davis-Bacon wage
rates, or HUD-determined rates for operation of public housing and Indian block grant.
assisted housing). However, even though CWHSSA overtime pay is not required, Fair
Labor Standards Act (ELBA) overtime pay is probably still applicable. (See also Labor
Relations Letter SL-95-01, CWHSSA Coverage threshold for overtime and health and
safety provision, available on-line at the HUD Labor Relations Library at: www.hud.gov/
offices/olNlibrary.cfm)
1-1
Li ■ . -
C. The Copeland Act makes it a
for anyone to require an laborer mechanic Federal crime
Y or (employed on a Federal
Federally-
assisted project) to kickback (i.e., �v or Federa llyw
give up or pay back an art
Copeland Ac } Y p of their wages. The
p t requires every employer (contractors Y and subcontractors •
weekly certified payroll reports (CPRs) } to submit
p and regulates permissible •
payroll deductions.
d. Th Fair Labor %andards Ac
(FLSA). The FLSA contains Feder .
rates, overtime (O/T), and child al minimum wage
labor requirements. The
to any labor performed. T se requirements generally apply
The DOL has the authority to administer
HUD will refer to the D Y ester and enforce FLSA.
�L any possible FLSA violations that
are found on HUD projects.
1-2 D V
The Department of Labor DAL
t } has published rules and in •
structions concerning
Davis-Bacon and other labor laws in the Code of Federal Regulations g ati°ns ( These
regulations can be found in
Title 79 CFR Parts 1, 3, 5, 6 and 1. •
the DAL establishes and u Part � explains how
publishes DBA wage determinations (aka provides instructions wage decisions] and
on how to use the determinations. Part
requirements for payroll 3 describes Copeland Act
p y oll deductions and the submission of weekly certified payroll reports.
Part 5 covers the labor standards provisions that are in
Bacon Act wage rates and Your contract relating to Davis.
g the responsibilities of contractors and contracting agencies to
administer and enforce the provisions. Part 6 provides for administrative ve proceedin s
enforcing Federal labor standards on construction and se g
practice b service contracts. Last, Part 7
sets parameters for
p before the Administrative Review Board. These regulations
are used as the basis foradministering and enforcing he laws.
g
DAL Regulations are •
available on-line on the World Wide Web:
http:Ilwww.dol. ovl
g dol/allcfr/Title 29.htm
1-3 CONaIll OR.C.ONTRAgLpROVIS
Each contract subject to Davis-Bacon labor standards requirements must
standards clauses and aDavis-Bacon contain labor
wage decision. These documents are n
bound into the contractspecifications ormally
a. The labor standards clauses. The labor standards clauses describe the
Davis-Bacon responsibilities
of the contractor concerning acon wages and obligate the contractor to comply
with the labor requirements. The labor standards clauses also provide for re
the event of violations, including withholding medies in
g thholding from payments due to the a contractor to
ensure the payment of wages or liquidated ed damages which may be found du
contract clauses enable the contract administrator to enforce the . These
e Federal labor sta
applicable to the project. HUD has standard dards
ndard forms that contain contract clauses.uses. For
example, the HUD-2554, Supplementary ry Conditions to the Contract for Construction
s +slued primarily for FHA multifamily h ct�on,
which i
y ous�ng and other construction 1 ro acts
p
1-2
administered by HUD; the HUD-401 0 .
Federal Labor Standards Provision
for CDBG and HOME projects, an s, which is used
1 d the HUD-5370, General Conditions
Construction or the HUD-5370_E ns of the contract for
Z (construction contracts :5$1 00,000)
00) which are used for
Public and Indian Housing projects.
HUD program laborstandards farms are available on-line ovlofficesl at.•
www.h ud.
9 adm/hudclips/index.cfm
b. Davis-Bacon Wage Decisions. '
The Davis-Bacon wage decision .
is a listing of various con for wage determination
construction work classifications, }
Plumber and tons, such as carpenter, Electrician,
Laborer, and the minimumwa era an'
that people 9 rates hand fringe benefits, where prevailing)
p p performing work in those classifications p �I�ng}
tons must be paid.
Davis-bacon wage decisions are established tablished by the DOL for various t
e.g., residential, heavy, highway) types of construction
Y g y} and apply to specific geographic
county or group of counties. g g ph�c areas, usually a
Wage decisions are modified from
current. l n most cases when time to time to keep them
en the contract is awarded or when c
wage decision is "locked-in" and n construction begins, the
o future modifications area applicable
project involved. pp a to the contract or
All current Davis-Bacon decisions on wage decisions can be accessed on-line eat no cost at:
1-4 RESMN ITY OF-THE
c
The principal contractor(also referred
d to as the rime or e
for the full compliance � general contractor}is responsible
p nce of all employers (the contractor p
subcontractors with , subcontractors and any Tower-tier
} the labor standards provisions
of the contract p ons applicable to the project. Because
contractual relationship between a rime co
subcontractors p contractor and his/her subcontractors
generally should communicate with the co '
the prime contractor. (See contract administrator only throu h
Contract Administrator, below.) g
w.}
r
To make this guide easier to "Prime
. understand, the term prime contractor" •
principal contractor; "subcontract actor vr►ill mean the
or will mean all subcontractors •
subcontractors; and the term "em including lower-tier
employee' will mean all contractors as
the prime contractor and an subcontractors a group, including
Y ntractors
� and lower-tier subcontractor
, s.
1-3
yY
T
.i
P
k'
1-5 R -SIBILITY OF THE CQNTRACT A
S
The contract administrator is responsible for the proper administration and enforcement
of the Federal labor standards
provisions on contracts covered b Davis-Bacon requirements. We use this term to re Y
present the person for persons who will provide
labor standards advice and support p ovide
pport to you and other project principals
sponsor, architect), including providing (e.g., the owner,
g p ding the proper Davis wage .
(see 2-1, The Wage Decision � decision
} and ensuring that the wage decision on and contract clauses
are incorporated into the contract for construction.The contract administrator
Hance (see nistratoralso moat#ors
labor standards com p 2-B, Compliance Reviews) by conducting interviews
with construction workers at the job site and reviewing payroll r
enforcement actions that m g p y sports, and oversees any
may be required.
The can tract ad min ss#rotor could be an employee or agent of HUD, or of a city r
public housing agency. For HUD ro'e tY county or
projects cts administered directly b HUD staff,
Insured multifamily projects, the can Y ' usuallyFHla_
f tract administrator will be the HUD L •
field staff. But many HUD-assisted r Labor Relations
projects are administered by local contracts
envies PH ng agencies
such as Public Housing Agencies As}, Indian tribes and tribally-designated
entities (TDHEs), and States, housing
cities and counties under HUD's Do
Block Grant (CDBG) and HOME r Community Development
will likely programs. In these cases, the contract administrator
y be local agency staff. l n either ca is#rator
se, the guidance far you remains esse '
the same. ntially
The DAL also has a role in monitoring Davis-Bacon administration and en
addition, DAL has independent au forcemeat. In
authority #o conduct investigations. •
or other DAL representative g A DAL investigator
may visit Davis-Bacon construction site
construction workers or review payroll i s #o interview
p y information.
1-4
CHAPTER 2 NOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
WHERE TO STARTS 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 _laca ;.,„m and waaQ ratp,c q 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 prepare a Project Wage Rate Sheet(HUD-4720). This Sheet is a one-page transcr pt that
will show only the classifications and wage rates for a particular project. A blank copy of
a Project Wage Rate Sheet is provided for you in the appendix. Also, a fellable version of
this form is available on-line at HUDCIips (see web address in the Appendix). Contact the
contract administrator monitoring your project for assistance with a Project Wage Rate
Sheet.
2-1
b. If
you are the prime contractor, you will be re
posting a copy of the wage decision (or#h spons�ble for
. e Project Wage Rate Sheet a
DAL Davis-Bacon poster titled } and a copy of the
p d Employee Rights under the Davi -
1321) at the job site in a s Bacon Ac# Form WH-
place that is easily accessible to all
project of the construction workers
employed at the
p c# and where the wage decision and o
p star won't be destroyed by
wind or rain, etc. The
Employee Rights under the Davis-Bacon Act poster is available in
English and Spanish line a# H U DClips (see address in the Appendix).
The Employee Rights and •
g under the Davis-Bacon Act poster (WH-1 •to all Employees. ���} replaces the Notice
The new poster is available in English '
(see address in # g and Spanish on-line a#HUDDIi s
he Appendix}. p
2-2 ADDITION-Al. "TRADE,,DE cLA SIFICATI NS AND W
E RAT E
What if the work classifica#ion o
y u need isn't on the wage decision? if
classification(s) # appear on the#hat you need does ' the work
n wage decision You '
request an additional classification an ' Y will need to
d wage rate. This process is usual '
and you'll want #o start the request ly very simple
q st right away. Basically, you identify '
you need and recommend a f]I a classification
wage rate for DOL #o approve for the project,
few rules about additional classifications; p ! #. There are a
• bons; you'll find these rules in the D
Part 5, and �n the labor clauses in �L regulations,
your contract. The rules are summarized for
you here.
a. Add iti nal las ifi a i n rul s. ' .
Additional classifications and wage
approved if: ge rates can be
I. The requested Classification is used by construction contractors in the a
project. (The area is usually efined area of the
Y as the county where the project is located).
2. The work that will be erformed
p by the requested classification is
classification not already
performed by another classi
n #hat is already on the wage decision.
words, if there already s an Electrician g (In other
Y ctrician classification and wage rate
on the wage decision you can't request another Electrician classification
and rate.)
3. The proposed wage rate for the requested classification "fi#s" with the other w
rates already on the wage decision. (For age
. example, the wage rate proposed
a trade classification such as Electrician p ed for
an must be a# least as much as the lowest
wage rate for other trade classifications alread
And, y contained in the wage decision.)
4. The workers that will be employed i
n the added classification (if it is known or who the
workers are/will be), the workers representatives rn
wage rate. ust agree with the proposed
2-2
Yfi
yY
Y
b. MMhiWbejMgug*t
A request for additional classification an
in writing through h d wage rate must be made
9 g the contract administrator. (If the con •a e tract administrator +s a to
agency, the agency will send the request to the local
q e HUD Labor Relations staff. If you a
subcontractor, your request should } Y re a
q u ld also go through the prime contracto
do is identify the work classifc r. All you need to
ation that is missing and recommend a wage age rate (usually
the rate that employer is already paying to the employees performing he work
classification. You may also need to g } for that
describe the work that the new classification
perform. �fication will
c. FLUD review. The HUD Labor Relations field staff will review the requested cla
q ssifcation
and wage rate to determine whether t
he request meets the DOL rules outline
2-2(a), above. If additional information �n paragraph
mation or clarification is needed, the staff will
prime contractor for contract administrator contact the
nistrator for local agency projects more '
}for information
etc. If the Labor Relations review finds that the request meets the rules •
preliminary approval on the re , the staff will give
quest and refer it to the DOL for final a rov
of the preliminary pp al. The staff
will send to you a Copy p minary approvallreferral letter to the D
OL.
If the HUD Labor Relations staff doesn't '
think the request meets the rules and if a
can't be reached on the proper classifcati greement
on or wage rate for the work described, the
HUD Labor Relations staff will not approve pp ove the request. In this case, the staff will
your request to the DAL with an explanation why send
be p . . y HUD believes that the request shouldn't
approved. The DQL still has final deco q do t
lion authority. You will receive a co of the
disapproval/referral letter to the DOL. py
d• 20L dwcision. The DQ L will respond .
pond to HUD Labor Relations in writing
additional classification and wage rat g about the
the e request. HUD Labor Relations will note
e DAL decision in writing. If the D notify you of
9 OL approves the request, the rime c
post the.approval notice on the job s' p ontractor mussite with the wage decision.
If the DAL does not approve the request,q t, you will be notified about what classification
wage rate should be used for the work in cation and
question. You will also receive instructions a
how to ask for DAL reconsideration if bout
You still want to try to get your recommendation
dation
r
f
It's always a good idea to talk to the con .
tract administrator before submitting a n add i l
onI a class ifca `on and wage rate
request. The contra '
contract administrator can offer su estions
and advice that may save you time and increase g
ease the likelihood that DAL will a rove o
request. Usually, the contract administrator can give you an idea about what the DOL will
pp Y ur
R finally decide.
2-3
2-3 "R —D-PAYEMLL RgPQMS.
You'll need to submit a weekly certified ed payroll report (CPR} be innin with
r g g the first week
that your company works on the
project and for every week afterward until o
s a good ' y ur firm has
completed its work. It's always g idea to number the payroll reports beginning with#1 and to clearly mark your last payroll for the project "Final.'
a. PAME011 forMgfi. The easiest form
to use is DOL s WITH-347, Payroll. A s
the WH-347 is included in the back Y ample copy of
of this Gu ide. You may access a fills
the WH-347 on-line at HUDCIi s ble version of
p (see web address in the Appendix).
administrator can provide a Also, the contract
p few copies of the WH-347 #hat ou
y can reproduce.
You are not required to use Payroll form m WH-347. You are welcome to use
of payroll, such as computerized form any other type
formats, as long as it contains all of the information
is required on the WH-347. ormateon that
b. PayrWL-ceEgigat The weekly payrolls are called certified because each payroll
is signed and contains language certifying that the informs
payroll certification l information is true and correct. The
language is on the reverse side of the WH-3
form 4 7. if you are using
another type of
payroll at you may attach the certification from the back of the WH-
347, or any other format which contains the same certification language guage on the WVH-347
DLL's website has Payroll Instructions and the Payroll form „
format at this address:
WH-347 in a fellable PDF
5.
www.dol-gov/whd/forms/Wh347.pdf
c' "No work" payrolls
temporary p Y may be submitted whenever there is
p ry break in your work on the project, f a
the project p � or example, if your firm is not needed o
p � t right now but you well be returning o n
box for " �� g the job in a couple of weeks. (See no work payroll exem Lion l tip
exemption!) However, if you know #hat f our
working on the project for an extended period of time Y firm well not be
, you may
note to the contract administrator to l y wish #o send a short
e# them know about the break in work and to gave
an approximate date when
Y m will return #o the project. if you number
consecutively or if you send a note, Y ber payrolls
you do not need to send "no work" a rol
p y ls.
If you number our payroll •
Y p y l reports consecutively, you do not A
payrolls! Y need to submit no work
2-4
d P
The prime contractor should review each subcontractor's
payroll reports for Compliance prior to submitting he reports rim � p s to the contract administrator.
Remember,the
prime contractor is responsible for the full compliance of all subcontractors
on the contract and will
be held accountable for an wage •
due to any laborer or m Y ge restitution that may be found
echanic that is underpaid and fora '
any liquidated damages that
may be assessed for overtime violations. All of the a roll re
p Y ports for any project must be
submitted to the contract administrator through the rime contractor.
ntractor.
An alert prime contractor that reviews subcontractor payroll submissions
M early, prevent co can detect any
p costly underpayments and Protect its •
loss should underpayments occur. p elf from financial
e• Pa r II reatpAtion. Eve rY contracto r(including every subcontractor an }must keep a complete
set of their own
payrolls d other basic records such as employee addresses and full
SSNs, time cards, tax records, evidence of fringe benefit a m
ears aft p Y eats, for aDavis-Bacon
project for at least 3
Y after the project is completed. The rim
a complete set of all of the payrolls prime contractor must keep
p y for every contractor (inc udin sub
least 3 years after completion of t g contractors) for at
p he project.
f. P r i ction. In
addition
n to submitting payrolls to the contra .
contractor (including subcontr ct administrator, every
actors) must make their own c
other basic records available for r copy of the payrolls and
review or copying to any authorized representative
HUD or from DOL. p tive from
Z-4 DAV"- _N MF1Ma1ONS_
Before we discuss how to complete p to the weekly payroll forms, we nee
of definitions. These definition d to review a couple
s can help you understand what will be required of you:
a. Laborer or mecha "Laborers" and "mechanics" mean
pro , in anyone who is performing
construction work on the
p 1 cluding trade journeymen (carpenters,metal workers, etc. a plumbers, sheet
}: apprentices, and trainees and f
and guards. "Cabo `� or DWHSSA purposes, watchmen
"Laborers" and mechanics"are the two rou s o
g p f workers that must be aid
not less than Davis-Bacon wage rates. p
I Workina
• Foremen or supervisors that re ul
20°%0 of their time performing g arty spend more than
p orming construction work and do not me
in paragraph 2 below are covered f et the exclusions
Bred laborers and mechanics" for la
purposes for the times spent labor standards
p performing construction work.
2. Exclu ions. People whose '
p duties are primarily administrativ
clerical are not laborers or mechani e, executive or
mechanics. Examples include superintendents
staff, timekeepers, messengers, et (Contact , office
have 9 c the contract administrator
ve any questions about whether a +f you
particular employee is excluded.)
2-5
H
b• EMD10yee, Every person who
performs the work of a laborer or mechanic y_
regardless of an contractual hank �s employed
Y al relationship which may be all
contractor or subcontractor Y aged to exist between a
and such person. This means that even
between a contractor and a w en if there is a contract
worker, the contractor must make sure
re that the worker �s
paid at least as much as the wage rate on the wage decision for the classification of work
they perform. Note that there are �fi
no exceptions to the prevailing wage requirements
ed laborer g q ements for
relatives or for self-employed sand mechanics.
t
� For more information about working subcontractors, ask the contract administrator or
Relations Field Staff for a co •
copy of Lobar Relations Letter LR_96-
rds compliance requirements for ��'
Lobar standards
Lobar Relations elf-employed laborers and macho
ons Letters and other helpful Lab mechanics.'
p or Relations publications are availabl
HUD's Labor Relations web site see the list of eat
web site addresses in the Appendix).
pp ).
C. A r n i nd Lrainees- The only y workers who can be paid less than the
e wage decision far their work classification wage rate on
approved a are"apprentices"and"trainees"registered
pp apprenticeship or training programs. g red in
been registered p g Approved programs are those which
g stared with the DAL or a DAL-recognized ch have
Apprentices gn�zed State Apprenticeship Council (SAC).pp and trainees are paid wa e ra
the a g rates �n accordance with the wage schedule
approved program. 9 hedule �n
M
ost often, the apprenticeltrainee
wage rate is expressed as a series of percentages •
to the amount of time spent in the r !� stages tied
program. For example, 0-6 months: 65°/0. 6
- 1 year: 70°/0; etc. The percentage i months
8a g s applied to the journeyman's wage rat •
can projects, the percentage must b g e- �n Davis-
- g e applied to the journeymany s w a applicable wage decision for that cra wage rate an the
ft.
1. P A"probationary
apprentice"can be aid a
a de p son apprentice
bless than the rate on the wage decision) �f the DAL or SAC has certified t
person is eligible for probations that the
probationary employment as an apprentice.
2. Pre-agiprepAjge. A It re-a ran '
p tice�,pp , that is, someone who is not r
program and who hasn't been DpL-o registered in a
rSAC-certifiedforprobationa apprenticeship
is not considered to be an "a apprentice probationary pp enticeship
pp and must be paid the full '
on the wage decision for the classifca 'tan of work they per
journeyman's rate
form.
3. Hatig..Qf
apprentices or train The maximum number of
trainees that you can use on the j ob site cannot exceed the ratio of
apprentices or trainees to journeymen allowed in the approved pp ed program.
2-6
d. r . . C1 Wacles or wa-ae rates, Prevailing wage rates are the wage
wage decision for the project. Thew rates listed on the
ofa age decision will list a minimum basic
pay for each work classification. So hourly rate
Some wage decisions include fringe benefits '
are usually listed as an hourly fringe rat which
rate for g e. If the wage decision includes a f
a classification, you will need to ad fringe benefit
unless d the fringe benefit rate to the bas'
you provide bona fide fringe ben is hourly rate
9 benefits for your employees.
1. PiPme-work. Some employees p yees are hired on a piece-work basis
employee's earnings are determined by a factor of , that is, the
work produced. F
a C�rywal! Hanger's earnings may or example,
9 y be calculated based upon the, a pain � p square feet of
sheetrock actually hung, Painter s earnings may be based upon the number of units painted. Employers may calculate
weekly earnin s
piece rates provided the wee g based upon
weekly earnings are sufficient to
rate requirement based upon satisfy the wage
p actual hours, including an overtime,me, worked.
Accurate time records must
be maintained for an piece-work p work employees.
If the weekly piece rate
earnings are not sufficient, the employer
recompute weekly earnings based u p Yer must
the rate upon the actual hours worked an
on the wage decision for the
e work classification(s) involved.
e• aincia Fringe benefits can include health insuranCe remium
contributions, life insurance, vacation p s, retirement
and other paid leave as well as som
to training funds. Fringe benefits do not include a contributions
emplo employer payments •
required by other Federal State Y p y nts or contributions
S or local laws, such as the em to ' •
Social Security or some disability insurance p yer s contribution to
tY rance payments.
!Vote that the Iotal hourly wage rate paid to and laborer or me (basic wage plus frin a benefi chanic wage or basic
g benefits) may be n o less than the total (basic wage plus fringe benefits on wage rate wage or basic
the wage decision for their .
benefits i craft. If the value of the fringe
benefit(s) you provide is less than the 9
fringe benefit rate on the wa e .
g decision, you will
need to add the balance of the wage decisi on fringe benefit rate to the
!e if t e basic rate paid to
the employee. For example, he wage decision re u ires 101 •
hour fringe benefits q $ hour basic rate !us $5/
, you must pay no less tha ($15/hour) . p
basic rate l n that total in the basic
Plus whatever fringe benefit you may rate or
in several ways: y provide• You can meet this obligation
Ys• yvu could pay the base wage an gation
decision or o g d fringe benefits as stated in the
you could pay$15 in base wage with no wage
basic !us $3 fringe g fringe benefits, or you could a
� p ge benefits. You can also offs pay$12
f more in fringe et the amount of the base wage if o
g benefits such as by paying or g you pay
you me p Y g $9 basic Pius $� fringe benefit •
Y et the total amount. The amount g s, as Fong as
ben of the base wage that you may o _ .
benefits is limited by certain IRS an Y Y ff set with fringe
k d FLSA requirements.
f. Qye rti
overtime hours are defined as all hours worked on the contract i
in any work week. overtime hours must n excess of
40 hours be paid at no less than one and
gular rate of basic pay plus the str °ne
half times the re
benefits. sight-time rate of any required frin
9e
2-7
i
g• You may make payroll deductions as permitted by DOL Regulations ons 29 cFR Pa rt 3. These regulations prohibit the employer from requiring employees to " 'ck-back
"
(..e.,
give up) any of their earnings. Allowable deductions which don '
of require prior DAL
permission include employee obligations for income taxes Social Security
. � ty payments,
insurance premiums, retirement, savings accounts, and any other legally-permissible
deduction authorized by the employee. Deductions
may also be made for a
y payments on
judgments and other financial obligations legally imposed against the p g employee.
,r
Referring, again, to our example above where the wage decision requiring equ�
g ring a $15 total
wage obligation ($10 basic wage plus $5 fringe benefits b a
� was met Y paying $9 base
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 t$9 basic + $5 fringe) plus $5 (one-half of $10,. . the wage
decision basic rate) for a total of$2o per hour.
---W_ J
h. Pr You must select a work classification on the wage decision
for each worker based on the actual type of work he/she erformed and d you must pay each
worker no less than the wage rate on the wage decision for that classification regardless
of their level of skill. In other words, if someone is erformin
p g carpentry work on the
project, they must be paid no less than the wage rate on the wage decision
g for carpenters
even if they aren't considered by you to be fully trained as a Carpenter. Remember,emember, the
only people who can be paid less than the rate for their craft area apprentices and d trainees
registered in approved programs.
1 SWit-classiftutign, If you have employees that perform work in more than
one trade during a work week, you can pay the wage rates specified for
g p each
classification in which work was performed only f maintain ac
Y you curate time
records showing the amount of time spent in each classification of work. If
you do
not maintain accurate time ees records, you must pay these employees the
p y highest
wage rate of all of the classifications of work performed.
i. Site f work. The "site of work" is where the Davis-Bacon wage rates apply. Usually,
this means the boundaries of the project. "Site of work" can also include other adjacent
or virtually adjacent property used by a contractor or subcontractor in the construction of
the project, like a fabrication site that is dedicated exclusively, or nearly so, to the project.
2-8
SECTION II - REPORTING REQUIREMENTS
2-5 REPOF
What information has to be reported on the a roll form?
P Y The weekly payroll form doesn't
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 em to eels name;P Y e, his or her work
cation (who is working for you and what do the do? the hour
. Y }, s worked during the
week, his or her rate of pay, the gross amount earned how
� much did they earn?), the
amounts of any deductions for taxes, etc., and the net amount
paid dhow much should
the paycheck be made out for?). No more information than you need to know in order to
manage your work crew and make certain they are paid properly. And certainly, no more
information than you need to keep for IRS, Social Security other tax and employment
purposes.
For many contractors, the Weekly Certified Payroll is t ' _
y he only Davis Bacon paperwork
you need to submit!
You are required to submit certified payrolls to illustrate
Y and document that you have
complied with the prevailing wage requirements. The purpose of the contract admini strator's
strator 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.
i
ckly.
a. Pro'ec and on rac rl u ntra r Inf rmati n. Each payroll must identify the
contractor or subcontractor's name and address, the ro•ect P � name and number, and the
week ending date. Indicate the week dates in the spaces roved
P provided. Numbering payrolls
is optional but strongly recommended.
b- E
M12LQYeejMf.QrMatioEL Effective January 2009
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 an -d an individually identifying
number, usually the last 4 digits of the employee's SSN. Afterward,rward, the identifying number
does not need to be reported unless it is necessary o distinguish ry st�nguish 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 rovide this information rmation upon request to the
contracting agency or other authorized representative responsible for federal labor
standards compliance monitoring. Prime contractors ma y require a subcontractor(s) to
provide this information for the prime contractor's records. '
OL has modified form VIIH-
347, Payroll, to accommodate these reporting requirements.
P g q nts.
c. MYock classiflcatLQn. Each employee must be classified in accordance with the wage
decision based on the type of work they actually perform.
2-9
1 The first payroll on which an y apprentice rentice or trainee
appears must be accompanied by a copy of that apprentice's or trainee's re 9 istration
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
p Y
the first payroll on which the first apprentice or trainee appears.
2. S lit class ifi c ins For an employee that worked in a split classification, make
a separate entry for each classification of work performed distributing the hours of
work to each classification, accordingly, and reflecting the rate of a and gross
. pay g
earnings for each classification. Deductions and net pay may be based upon the
total gross amount earned for all classifications.
d. H The payroll should show ONLY the regular and overtime hours worked
ed
on this project. Show both the daily and total weekly hours for each employee. If an
employee performs work at job sites other than the project for which the a roll is prepared,
p y p p ,
those "other job" hours should not be reported on the payroll. In these cases you should
d
list the employees name, classification, hours for this project only, the rate of a and
J v pay
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. R 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
p pp e g
benefit programs, add the fringe benefit rate to the basic hourly ate of . Also list th
y pa Y e
overtime rate if overtime hours were worked.
1. Pie-work. For any piece-work employees, the employer must
compute an effective hourly rate for each• employee each week based
upon the employee's piecework earnings for that week. To compute
the effective p
ctive hourly rate, divide the piece-work earnings by the total
number of hours worked, including consideration for an y overtime hours.
The effective hourly rate must be reflected on the certified a roll and this hourly
y
rate may be no less than the wage rate (including fringe benefits, if any) on the
. y}
wage decision for the classification of work performed. It does not matter that the
effective hourly rate changes from week-to-week, only that the rate is no less than
the rate on the wage decision for the classification of work performed.
Remember, the overtime rate is computed at one and one-half times the basic rate of a
pY
plus any fringe benefits. For example, if the wage decision requires $10/hour basic plus
. g p
$5/hour r fringe benefits, the overtime rate would be: ($10 x 1 %Z) + $5 = $20/hour.
f• Show the gross amount of wages earned for work performed 9 p don
this project. Note: For employees with work hours and earnings on other projects, you
� p J , y
may show gross wages for this project over gross earnings all projects (for exam le example,
$425.401$764.85) and base deductions and net pay on the Hall J ro'ects" s.earnin
p g
2-10
g. D Show the amounts of any deductions from the ross earnings. "Other"
g g
deductions should be identified (for example, Savings Account or Loan Repayment). An
y
voluntary deduction (that is, not required by law or by an order of a proper authority)
in p p ty}
must be authorized in writing by the employee or provided for in a collective bargaining
g 9
(union) agreement. A short note signed by the employee is all that is needed and should
accompany the first payroll on which the other deduction appears.
Only one employee authorization is needed for recurring (e.g., weekly) other deductions.
Written employee authorization is not required for income tax and Social Security
deductions.
h. Net-12ay, Show the net amount of wages paid.
i. S_ tat mint „of com fiance. The Statement of Compliance is the certification. It is
located on the reverse side of a standard payroll form (WH-347). Be sure to complete
the identifying information at the top, particularly if you are attachin g the Statement of
Compliance to an alternate payroll form such as a computer a roll. Also you must
p Y � y
check either 4(a) or 4(b) if the wage decision contains a fringe benefit. Checking
g 4� )
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 o
the employee Y
p oyee by adding the fringe benefit rate #o the basic hourly rate of pay. If you are
� Y
paying a portion of the required fringe benefit#o 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 roll no
Y Ypa Y
matter how many pages are needed to report the employee data.
j. Make sure the payroll is signed with an original signature in ink. The payroll
g pY
must be signed by a principal of the firm (owner or officer such as the president, treasurer
or Y a payroll administrator) or by an authorized agent (a person authorized b principal
p p
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
g g
in pencil; signature stamps; xerox, pdf and other facsimiles are not acceptable.
2-11
SECTION III - PAYROLL REVIEWS AND CORRECTIONS
2-6 9QMPLIANCE
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 ma y 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-siJQ
Jntf I 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. P The contract administrator will compare the information on
the interview forms to the corresponding payrolls to ensure that the workers are ro erI
p p Y
listed on the payrolls for the days and hours worked on the job site, work classification
and rate of pay. The contract administrator will also review the payroll submissions to
make certain that the payrolls are complete and signed; that employees are p aid no less
than the wage rate for the work classification shown; apprentice and trainee certifications
are submitted (where needed); employee or other authorizations for other deductions are
submitted (where needed); etc.
2-7 TYPLQAL
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. Inadqgugte gavcgli Inf If an alternate payroll format used by an (such em to er p y
as some computer payrolls) is inadequate, e.g., does not contain all of the necessary
information that would be on the optional form WH-347, the employer will be asked to
resubmit the payrolls on an acceptable form.
b• M*sling identeficatioMumbers. If the first payroll on which an pp
employee a ears does
not contain the employee's individually identifying number, the employer will be asked
to supply the missing information. This information can be reported on the next a roll
submitted p y
b fitted by the employer if the employer is still working on the project. Otherwise, the
employer will be asked to submit a correction certified payroll.
2-12
C. l oavrolls. 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. Classificatio n If the e
payrolls show work classifications that do not appear on the wage
decision, the employer will be asked to reclassify the employees in accordance with the
wage decision or the employer may request an additional classification and wage rate
(see 2-2). If reclassification results in underpayment (i.e., the wage rate reported on the
payroll is less than the rate required for the new classification), the employer will be asked
to pay wage restitution to all affected reclassified employees. (see 2-8 for instructions
about wage restitution.)
e. W.AaejAtGL 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 pay wage
�
restitution to all affected employees.
f. A r nlices and ain If a copy of the employee's registration or the approved
program ratio and wage schedule are not submitted with the first payroll on which an
apprentice or trainee appears, the employer will be asked to submit a copy of each
apprentice's or trainee's e
registration and/or the approved program ratio and wage
schedule. If the ratio of apprentices or trainees to journeymen on the payroll is greater
than the ratio in the approved program, the employer will be asked to pay wage restitution
to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered
in an approved program must receive the journeyman's wage rate for the classification of
work they performed.
g. If the employees did not receive at least time and one-half for any overtime
hours worked on the project, the following will occur:
1. If the project is subject to CWHSSA overtime requirements, the employer will be
asked to pay wage restitution for all overtime hours worked on the project. The
employer may also be liable to the United States for liquidated damages computed
at $10 per day per violation. Or,
2. If the project is not subject to CWHSSA, the employer will be notified of the p ossible
FLSA overtime violations. Also, the contract administrator may refer the matter to
the DOL for further review.
h. C.Qmautatlonj. If the payroll computations(hours worked times rate of pay)or extensions
(deductions, net pay) show frequent errors, the employer will be asked to take g reater
care. Wage restitution may be required if underpayments resulted from the errors.
i. Deductio If there are any "Other" deductions that are not identified, or if employee
authorization isn't provided, or if there is any unusual (very high, or large number)
deduction activity, the employer will be asked to identify the deductions, provide ee em to
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
refer to the IRS or other responsible agency copies of certified payroll reports that show
wages paid in gross amounts (i.e., without tax deduction) for its review and appropriate
action.
j. Fringe If the wage decision contains fringe benefits but the payroll does not
indicate how fringe benefits were paid [neither 4(a) nor 4(b) is marked on the Statement
of Compliance], the employer may be asked to submit correction certified payrolls and
will be required to pay wage restitution if underpayments occurred. However, if the basic
hourly rates for the employees are at least as much as the total wage rate on the wage
decision (basic hourly rate plus the fringe benefit rate), no correction is necessary.
k. Signature. If the payroll Statement of Compliance is not signed or is missing,the employer
will be asked to submit a signed Statement of Compliance for each payroll affected. If the
Statement of Compliance is signed by a person who is not a principle of the firm and that
person has not been authorized by principle to sign, the employer will be asked to provide
an authorization or to resubmit the Statement(s) of Compliance bearing the signature of
a principle or other authorized signatory.
I. on-site interview„gor-r-arisons. If the comparison of on-site interviews to the payrolls
indicates any discrepancies (for example, the employee does not appear on the payroll
for the date of the interview), the employer will be asked to submit a correction certified
payroll report.
m. Correction .certified Any and all changes to data on a submitted payroll report
must be reported on a certified correction payroll. In no case will a payroll report be
returned to the prime contractor or employer for revision.
2-8 Rg2JT1TQTION FOR.UNQEff.&MENT.QF MMGES,
Where underpayments of wages have occurred, the employer will be required to pay
wage restitution to the affected employees. Wage restitution must be paid promptly in the
full amounts due, less permissible and authorized deductions. All wages paid to laborers
and mechanics for work performed on the project, including wage restitution, must be
reported on a certified payroll report.
a. Notification to the Employer/Prime contractor. The contract administrator will notify the
employer and/or prime contractor in writing of any underpayments that are found during
payroll or other reviews. The contract administrator will describe the underpayments and
provide instructions forcomputing and documenting the restitution to be paid. The employer/
prime contractor is allowed 30 days to correct the underpayments. Note that the prime
contractor is responsible to the contract administrator for ensuring that restitution is paid. If
the employer is a subcontractor, the subcontractor will usually make the computations and
restitution payments and furnish the required documentation through the prime contractor.
2-14
3
The contract administrator may communicate directly with a subcontractor when the
underpayments are plainly evident and the subcontractor is cooperative. It is best
to work through the prime contractor when the issues are complex, when there are
significant underpayments and/or the subcontractor is not cooperative. In all cases,
the subcontractor must ensure that the prime contractor receives a cop of the required
y re a
corrective documentation. �J
b. Wage restitution is simply the difference between the wage
g
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 subtractin g the total
amount of wages paid. The difference is the amount of back wages due.
c. Cgrregtion-cellifiad oMyrQ1l& 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 usual/
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
Y py 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. Rqview f correction CPR. The contract administrator will review the correction certified
payroll to ensure that full restitution was paid. The prime contractor shall be notified in
writing of any discrepancies and will be required to make additional payments, if needed,
documented on a correction certified payroll within 30 days.
e• Unfg.Und Mior Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be located. After wage
9
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 9 ross
amount due. In such cases, at the end of the project the prime contractor will be required
2--15
to place in a deposit or escrow account an amount equal to the total gross amount of
restitution that could not be paid because the employee(s) could not be located. The
contract administrator will continue attempts to locate the unfound workers for 3 years
after the completion of the project. After 3 years, any amount remaining in the account for
unfound workers will be credited and/or forwarded by the contract administrator to HUD.
2-16
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW
ACCOUNTS, AND SANCTIONS
WHAT HAPPENS WHEN THINGS GO WRONG?
3-1 INTRODUCTION.
Even in the best of circumstances, things can go wrong. In a Davis-Bacon context,
"things going wrong" usually means there's a difference of opinion or a dispute about
whether and to what extent underpayments have occurred. These disputes are usually
between the contract administrator and one or more employers (the prime contractor and/
or a subcontractor). The dispute may involve something simple such as an additional
classification request that is pending before the DOL; or something as significant as
investigative findings following a complaint of underpayment. This chapter discusses
some of what you may expect and what you can do to make your views known and to
lessen any delays in resolving the problem or issue.
3-2 ADMINISTRATIVE R LMOR-&TANDARDS DISPUTES
As mentioned in the Introduction above, a dispute about labor standards and compliance
can arise for a number of reasons. The labor standards clauses in your contract and DOL
regulations provide for administrative review of issues where there is a difference of views
between the contract administrator and any employer. The most common circumstances
include:
a. Additional&lasaiftafigns and wage rates Additional classification and wage rate
requests are sometimes denied by the DOL. An employer that is dissatisfied with the denial
can request reconsideration by the DOL Wage and Hour Administrator. The employer
may continue to pay the wage rate, as requested, until a final decision is rendered on
the matter. When the final decision is known, the employer will be required to pay any
additional wages that may be necessary to satisfy the wage rate that is established.
1. Reconsideration. The DOL normally identifies the reasons for denial in its
response to the request. Any interested person (for example, the contract
administrator, employer, representatives of the employees) may request
reconsideration of the decision on the additional classification request. The
request for reconsideration must be made in writing and must thoroughly
address the denial reasons identified by the DOL. Employer requests for
reconsideration should be made through the contract administrator but may
be made directly to the DOL. (See 2-2(d), and also DOL Regulations 29 CFR
1.8.) All requests initiated by or made through the contract administrator or HUD
must be submitted through the HUD Headquarters Office of Labor Relations.
3-1
2. A Any interested party may request a review of the
Administrator's decision on reconsideration by the DOL's Administrative Review
Board. DOL regulations 29 CFR Part 7 explain the procedures for such reviews.
(See also 29 CFR 1.9.)
b. Findings of nd r m n . Compliance reviews and other follow-up enforcement
. p
actions may result in findings of underpayment. The primary goal in eve ry case and at
every step in this process is to reach agreements about who may have been underpaid
p
and how much wage restitution may be due and, of course, to promptly deliver restitution
to any underpaid workers. The contract administrator will usually work informally with y ou
to reach such agreements. You will have an opportunity to provide additional information
to the contract administrator that may explain apparent inconsistencies and/or resolve the
discrepancies.
If informal exchanges do not result in agreement, the final determination and schedule
of back wages due will be presented to you in writing and you will be s ermitted 3o days
y
in which to correct the underpayment(s) or to request a hearing on the matter before the
DOL. The request for hearing must be made in writing through the contract administrator
and must explain what findings are in dispute and the reasons. In such cases, HUD is
required to submit a report to DOL for review and further consideration. All requests for
DOL hearing must be submitted through the HUD Headquarters Office of Labor Relations.
1. DW L review. The DOL will review the contract administrator's report and the
p
arguments against the findings presented in the hearing request. The DOL may
affirm or modify the findings based upon the materials presented. You will be notified
in writing by the DOL of the results of its review. if DOL concludes that violations
have occurred, you will be given an opportunity to correct any underpayments or
to request a hearing before a DOL Administrative Law Judge (ALJ). (See DOL
Regulations 29 CFR 5.1 1 (b)and 29 CFR Part 5, Rules of Practice forAdministrative
Proceedings.)
2. AdmialltrafinIR- FBg Contractors and/or subcontractors may request a
review by the Administrative Review Board of the decision(s) rendered b the DOL
. y
ALJ in the administrative hearing process. See DOL regulations 29 CFR Part 7 for
more information about this proceeding.
3-3 =�ITHHOLDINC.
The contract administrator shall cause withholding from payments due to the p rime
contractor to ensure the payment of wages which are believed to be due and unpaid,
for example, if wage underpayments or other violations are not corrected within 30 days
y
after written notification to the prime contractor. DOL may also direct the withholding
of contract payments for alleged wage underpayments. Withholdin g is considered to
be serious and is not taken unless warranted. If withholding is deemed necessary, you
will ry y
be notified �n writing. Only the amounts needed to meet the contractor's and/or
subcontractors ) liability shall be withheld.
3-2
3-4 DFmP OS.IT§AN D ESC OWS.
In every case, we attempt to complete compliance actions and resolve any disputes
utes
before the project is completed and final payments are made. Sometimes, corrective
actions or disputes continue after completion and provisions must be made to ensure
that funds are available to pay any wage restitution that is ultimately found due. In these
cases, we allow projects to proceed to final closing and final payments provided the prime
contractor deposits an amount equal to the potential liability for wage restitution and
liquidated damages, if necessary, in a special account. The deposit or escrow account is
controlled by the contract administrator. When a final decision is rendered, the contract
administrator makes disbursements from the account in accordance with the decision.
DeposiVescrow accounts are established for one or more of the following reasons:
Remember,the prime contractor is responsible and will be held liable for any wage restitution
that is due to any worker employed in the construction of the project, including workers
employed by subcontractors and any lower-tier subcontractors. See 1-4, Responsibility
of the Principal Contractor, and 2-8, Restitution for Underpayment of Wages.
a. Where the parties have agreed to amounts of wage restitution that are due but the
employer hasn't furnished evidence yet that all of the underpaid workers have received
their back wages, e.g., some of the workers have moved and could not be located. The
amount of the deposit is equal to the total gross amount of restitution due to workers lacking
payment evidence. As these workers are paid and proper documentation is provided
to the contract administrator, amounts corresponding to the documented payments are
returned to the depositor.Amounts for any workers who cannot be located are held in the
deposit/escrow account for three years and disposed as described in 2-8(f) of this Guide.
b. Where underpayments are suspected or alleged and an investigation has not Y et
been completed. The deposit is equal to the amount of wage restitution and any liquidated
damages, if applicable, that are estimated to be due. If the final determination of wages
due is less than the amount estimated and placed in the escrow account, the escrow will
be reduced to the final amount and the difference will be returned to the depositor.
If the parties agree to the investigative findings, the amounts due to the workers will be
paid by the employer. As these workers are paid and proper documentation is provided to
the contract administrator, the gross amounts corresponding to the documented payments
are returned to the depositor.
1. If the employer is unable to make the payments to the workers, e.g., lacks the
funds necessary, the contract administrator may make disbursements directly to
the workers in the net amounts calculated by the employer. The amounts withheld
from the workers for tax deduction will be returned to the employer as payments to
workers are made. The employer shall be responsible for reporting and transmitting
withholdings to the appropriate agencies.
3-3
2. If the employer is not cooperating in the resolution, the contract administrator shall
make disbursements to the workers in accordance with the schedule of wages
due. Amounts for unfound workers will be retained as described above (See 2-8(f)
and 3-4(a)}.
If the parties do not agree and an administrative hearing is requested, the escrow will be
maintained as explained in 3-4(c), below.
Remember,if you have any questions or need assistance concerning labor standards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
c. Where the parties are waiting for the outcome of an administrative hearing that has
been or will be requested contesting a final determination of wages due. The deposit
shall be equal to the amount of wage restitution and liquidated damages, if applicable,
that have been determined due. Once a final decision is rendered, disbursements from
the escrow account are made in accordance with the decision.
3-5 D „,ISTRATIIIE SANCTIONS.
Contractors and/or subcontractors that violate the labor standards provisions may face
administrative sanctions imposed by HUD and/or DOL.
a. DOL debarment. Contractors and/or subcontractors that are found by the Secretary
of Labor to be in aggravated or willful violation of the labor standards provisions of the
Davis-Bacon and Related Acts (DBRA) will be ineligible (debarred) to participate in any
DBRA or Davis-Bacon Act contracts for up to 3 years. Debarment includes the contractor
or subcontractor and any firm, corporation, partnership or association in which the
contractor or subcontractor has a substantial interest. Debarment proceedings can be
recommended by the contract administrator or can be initiated by the DOL. Debarment
proceedings are described in DOL regulations 29 C FR 5.12.
b. HUD sanctions. HUD sanctions may include Limited Denials of Participation (LDPs),
debarments and suspensions.
1- Limited Denealof.PartiWgateo13, HUD may issue to the employer a limited denial
of participation (LDP) which prohibits the employer from further participation in
HUD programs for a period up to one year. The LDP is usually effective for the
HUD program in which the violation occurred and for the geographic jurisdiction of
the issuing HUD Office. HUD regulations concerning LD P's are found at 24 CFR
24.790-24.714.
3-4
2. Debarment and suspensions. In certain circumstances, HUD may initiate its own
debarment or suspension proceedings against a contractor and/or subcontractor
in connection with improper actions regarding Davis-Bacon obligations. For
example, HUD may initiate debarment where a contractor has been convicted for
making false statements (such as false statements on certified payrolls or other
prevailing wage certifications) or may initiate suspension where a contractor has
been indicted for making false statements. HUD regulations concerning debarment
and suspension are found at 24 CFR Part 24.
3-6 EALSIEICATION QEC RE"PQRTb5s
Contractors and/or subcontractors that are found to have willfully falsified payroll reports
(Statements of Compliance), including correction certified payroll reports, may be subject
to civil or criminal prosecution. Penalties may be imposed of $'1,000 and/or one year in
prison for each false statement (see Section 1 001 of Title 18 and Section 231 of Title 31
of the United States Code).
Remember,ifyou have any questions or need assistance concerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
3-5
ACRONYMS AND SYMBOLS
CDBG- Community Development 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
DOS-- Department of Labor
FHA- Federal Housing Administration
FLSA- Fair Labor Standards Act
HUD - Housing and Urban Development (Department of)
IHA- Indian Housing Authority
LCA- Local Contracting Agency
LDP- Limited Deniat of Participation
O/T- Overtime
PHA- Public Housing Agency
S/T- Straight-time
SAC - State Apprenticeship CounciUAgency
TDHE - Tribally-Designated Housing Entity
§ - Section
¶ - Paragraph
A-1
DAVIS-BACON - RELATED WEB SITES*
HUD Office of Labor Relations:
www.hud-gov/offices/oir
HUD Regulations:
http://www.gpo.gov/fdsys%browse/collectionCfr.action?collectionCode=CFR
HUDCIips (HUD Forms and Publications):
www.hud.gov/offices/adm/hudclips/index.cfm
DOL Davis-Bacon and Related Acts Homepage:
http://www.dol.gov/whd/contracts/dbra.htm
DOL Regulations:
http://www.g po.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
Davis-Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www.dol-gov/whd/programs/dbra/forms.htm
*Web addresses active as of January 2012
A-2
U.S. Department of Housing
Project Wage Rate Sheet and Urban Development
Office of Labor Relations
Project Name: Wage Decision Number/Modification Number:
Project Number: Project County:
Work Basic FNngw Total.- Laborers
Classification- HOUR Benefits Hourly Fringe... $
Rate(BHR) Wage Rate Benefits
Bricklayers $ Group#-1 BHR Total Wage
Carpenters $ $
Cement Masons $ $
Drywall Hangers $ $
Electricians $ $
Iron Workers $ $
Painters $ OperatorsFringa Benefltsz
Plumbers $ Group#. BHR Total Wage
Roofers $ $
Sheet Metal Workers $ $
Soft Floor Workers $ $
Tapers $ $
Tile Setters $ Truck Drivers Frings Beneflbw $
Other Classiflcations; Group# BHRI, Total Wage
Additional ClasaNicatlons(HUD Form 4230-A)
Work Bash Fringe Total Date of Date of
Classification Hourly Benefits; Hourly HUD Submission DOL
Rate(BHR) Wage Rate to DOL Approval
$
a
A-3
U.S. Department of Labor
wo9w and Hour Dtrtsici
NA 1.0 (Jr CONTRACTOR OR SueC ONTRACTOR 0
PA rF+uu NO
(I) (2)
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4 •n
aii
MIIIIPOMM
PAYROLL
(For Contractor's optional Use; See Instructions at www.doLgovlwhd ro rma1w i347instr.htmJ
Farsorrs alai not re Mead to respond to tha collection of iniounaliOn rams rt mays a currant y valid OMB coma minter
ADDRESS
FOR WEE( ENCINO PROJECT AND LOCATION
(3) (4) GAY AND DATE
WORIN
CLH(SIFICAT.C•UU
8
4
0
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PO WL4tictL bAu LA
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U.S. Wai and Hour Division
Rev Dec 2008
OMB No 1215-014G
Expires 12131/2011
PROJECT OR CONTRACT NO
(5) (6) (7) (91
PO
DEDUCTIONS
NET
GROSS Wit'I+ WAGES
TOTAL RATE AMOUNT HOLDING TOTAL PAID
-BUR OF PAY EARNED F:CA TAX OTHER DEDUCTIONS FOR WEE►
/
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i
.w�■ .xr,p► eiuri,,r Fo1mwrt347' k upend 4,a m.ndatixy for cover Ord contractors wit uubctedractors parfcrmng warts on Fedoraty financed or assisted construction cortractsto resµuto to the information collection contained in 29 C F.R. II§ 3 3, 5.5(a) Ina Copeland Act
LAG U L C f 3145) cortractirs arrd subcur*aa oi. perforrratg work on Feder city tinill red or assisted conetriwtion contracts to'iurnitt weekly a statement with re.-pect to the wages paid each errpbyee during the ptwcedng week" U S. Department d Labor (DOU rwgulMtnna.t
F Siati3t S) regare contractors le submit.*** a copy df as pay roisto Me Faders agency contraang for or *noticing the congructnoh protect, accompanied by a sped 'Maimed of Compliance' uercaiirg the the payrolls are correct and compete ono the each lac ow
ar mamma( nss Men pad rot less trait the prows Dartsiacon prevaring wage rata fix Me wont performed. DO L end r.c eri conCacMg agencies receiving the information renew,* tnomtttion to drtsrrrrne mat empty..s have rooked *gaily MOM wages and Mao barteats
Public gulden nt
rv. ea.mair lair A wee tame an &wage or SO mnLA. to con p+ete t as COiOctuOn. "twang time for rerre.tng utstrucbcni, winning axtseing data sauGAS, gltt*onry and rnaritainng the data needed. and tortlpieitng and raveewurg Ire c;ba:t on Or r,tarrnaLon a you he, i
t .re .unrnrrua tr►,varmr.y thew esirrr,adr. ur ery Ulm seed of ursi colierction, ro, aging truly/04ons101 iscluctr,g t io border tend them to the Actrrn.ctraWw. Wage and Hour Dulib utrt U.S• Drpartmtt'il o Lattor, Room S3SOZ 200 Con utitution Avenue, M.W.
►vasnrnslor, D C 3)2t0
(area}
Cote
Name of Signatory Party) (Title)
do Hereby scats:
1 That pay or supervise the pa ym rnt of the persons employed by
cn the
(Contractor or Subcontractor)
that dung tss payroit period commencing on the
(Building or Work)
day of and ending trio day d
a+i Poisons employed on said protect have been paid the ioli **tidy wages earned, that no rebates have
been or w I be made either directly or indirectly to or on battaif of said
from the full
(Ccntractar or Suocontractor)
woes i y wage's named by any person and that no Deductions have been made either directly or indirectly
from the lull wages earned by any person. other than permissible deductions as defined in Regulations, Part
3 (29 C F R Subtitle A). issued by the Secretary at Labor under the Copeland Act, as amended (48 Stat. a48,
63 Start 108. 72 Scat. 967; 70 Stat 357, 40 U S C. S 3145), and descnbed Woof
42t That any payrolls othrws. under tries contract required to be submitted for the above period are
correct and c rnpiete; that the sage rates for laborers or mechanics cordained therein are not less than the
ammo)* sage rates cottoned in any sage detirrninalicn incorporated into the contract; that the
classmcst►ons set forth thereon for each laborer or mechanic conform *eh the work he performed.
3i That any apprentices employed in the above period as duly registered in a bona fide
apprerwceehip program registered with a State apprerrt►cesho agency recognized by the Bureau of
A,oprireicestirp and Training. United States Department of Labor, or if no such recognized agency exists in a
State are registered wth the Bissau of Apprentrzeship and Training. United States Department of labor_
That
ia) WHERE FRINGE BENEFITS ARE PAiD TO APPROVED PLANS. FUNDS, OR PROGRAMS
0
— in addition to me basic Hourly wage rates paid to each laborer or mechanic listed in
the above referenced payroll. payments of tinge benefits as listed in the contract
have been or wwll be made to appropriate progreins for the benefit of such
employees. except as noted in section 4(c) below.
(b) WHERE FRINGE BENEFITS ARE PAID IN CASH
— Each laborer or mechanic listed in the above referenced payroll has been paid,
as indicated on the payroll, an amount not less than the sum of the applicable
basic hourly wage rate plus the amount of the required fringe benefits as listed
in the contract, except as noted in section 4(c) below.
(C) EXCEPTIONS
EXCEPTION (CRAFT) EXPLANATION
14EWA'S
NAME AJiD T TT LE SIONATLWE
Tr1E '4','I;,,,FoL i• ANY CA: TrtE STr.TEMEP.IT2 MA-1 ,€C,T TrtE 'OOirTR ,,_ TOO., F
4,.h:.:-NTF►1CTC.R TO Cl'vIL OF CRIMNA` PRE:SECUTKSi SEE LE'CTIt2M 1001 OF TITLE 1$ AND SECTIOON 231 OF TITLE
'1 F Tt-tE .IFiITE>n z
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
AOENr�
G� Evu&MOUIS ci
'tAIV DEVEV'o OPPORTUNITY
EXHIBIT 66H-5"
START OF CONSTRUCTION FORM
City of Fort worth
Community Development Block Grant(CDBG)Funded
Construction Projects
START of CONSTRUCTION
(Date)
Project Name:
Location:
Project Number:
U.S. Department of Labor wage Decision:
This is to inform you that the,
(Name of Company)
of
s
s
(Address) (City/Town)
(State) (Zip) y has started work on the above referenced project covered b our
contract with you, as of
(Date)
Respectfully yours,
(Name of Company)
By
(Signature)
(Title)
City of Fort worth
Community Development Bloch Grant(CDBG) Funded
Construction Projects
CONSTRUCTION CoAMLETE
Date:
Project Name:
Project Location:
Project Number:
U.S.Depar nent of Labor wage Decision:
This to inform you that the:
(Name 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) ._..._.
By
(Signature)
(Title)
EXHIBIT 66H-7"
EEO STATEMENT
STATEMENT OF POLICY ON
EQUAL EMPLOYMENT OPPORTUNITY
It will be the policy of this firm to not discrfininate against any applicant for employment, or any
employee, because of race, creed, color, age, sex, or natural origin. This firm will insure that this
policy is continually enforced with regard to employment,promotion,upgrading,demotion,transfer,
recruitment, and recruitment advertising, lay off and termination, compensation, training, and
working conditions. We will make it understood by all with whom we deal, and in all our
employment opportunity announcements that the foregoing is our policy. All applicants and
employees will be judged solely on the basis of their shill,devotion loyalty,reliability and integrity.
Company Name
Signature
Date
EXHIBIT 6611-8"
PAYROLL DEDUCTION AUTHORIZATION FORM
Pa roll Deduction Authorization
0
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 10. Insurance Premiums
5. Savings Bonds 11. Union Dues
5. Uniforms 12.
*This deduction is to be made:
CHECK APPROPRIATE BOX One time only
Weekly
B i-weekly
For weeks
Date:
Employee's Signature
Printed or Typed Name:
Project Name and Number:
K PA Y ROLL DEI.H..ITION At.T WAIZA rION DOC
EXHIBIT 6611-9"
OFFICER APPOINTMENT FORM
U. S. Department of Housing and urban Development
CERTIFICATE FROM CONTRACTOR APPOINTING OFFICER
R EMPLOYEE
TO SUPERVISE PAYMENT OF EMPLOYEES
Project Name Bate
Location
Project sect No.
(1)(We)hereby certify that(I am)(we are)(the prime contractor a sub
� ( contractor) for
in connection with construction of the above-mentioned ect Proj and that J at(I)[we] have appointed
whose s ' •u cruse te n (our)em to ees a i
n
20 ; that he/she is in a position to have full knowledge of the facts
set forth in the payroll documents and in the �
statement o f compliance required by the so-called
Kick-Back Statute which he/she is to execute with (my) full authority and approval until
such time as (I)(we)submit to
a new certificate appointing some other person for the purposes hereinabove stated.
� a ed.
Attest(if required):
By.
(Signature)
(Title) Title
�-r--r-�-r-�+.r----r��----r-----��-�-�--��----r-r rr-err----rrr-+ter-Sri--r-�-��-�---r----r-----�-rr--r-r�----�
N This certificate must be executed by an authorized officer of a corporation,rporahon, by a member
of a partnership,or the sole owner and shall be executed ricer to and be
p submitted with the first
payroll. Should the appointee be changed, a new certificate must accompany p y the first payroll for
which the new appointee executes a statement of compliance required b
p � y the Kick-Back Statute.
DAL/DAO-I 340.3/2
(6-79)
EXHIBIT "I"
DEED OF TRUST FORM
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT 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 76107
Trustee: Vicki S. Ganske or Leann Guzman
Trustee's Mailing Address
CIO City Attorney's office
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Lender's Mailing Address:
CIO Housing Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Loan Authority:
The loan evidenced by the Note and secured by this Deed of Trust is being made pursuant
to the HOME Investment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq.
(the "HOME Program") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations'') with HOME funds.
Obligation
Note
Date: 120
Original principal amount: $117.043.00
Borrower: Tarrant County Housing Partnership. Inc.. a Texas non-profit
corporation
DFFD OF TRUs,r TCHP Page ]
CSC No. C-24714 Rev. 5-17-13
Lender: City of Fort `]North, Texas, a Texas municipal corporation
Maturity Date: , 20
Property (including any improvements):
SEE EXHIBIT"A"ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive rights, Whether of record or not; all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of the Obligation, Grantor conveys the Property
to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the obligation and all other
amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender
will release it at Grantor's expense.
Clauses and Covenants
A. Grantor's obligations
Grantor agrees to
-
I. keep the Property in good repair and condition;
2. pay all taxes and assessments on the Property before delinquency and provide proof
of payment of same upon request by Lender;
3. defend title to the Property subject to the other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a form acceptable to Lender, an insurance policy that
a. covers all improvements for their full insurable value as determined when
the policy is issued and renewed. unless Lender approves a smaller amount
in writing-,
b. contains an 80 percent coinsurance clause:
DFIFID OF TRUST TC11P Pace
CSC No. C-24714 Rev. 5-17-13
C. provides all-risk coverage;
d. protects Lender with a standard mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender may reasonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. 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 can demand for any amounts sty paid. including
attomeN, s tees. plus interest on those amounts tram the dates Cat'paN meat at the rate stated in the
DEED OF TRUST TCHP Pave 3
4
CSC~ No. C-24714 Rev. 5-17-1-3
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may
a. declare the unpaid principal balance and earned interest on the obligation
immediately due;
b. direct Trustee to foreclose this lien, in which case Lender or Lender's
agent will cause notice of the foreclosure sale to be given as provided by
the Texas Property Code as then in effect; and
C. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default.
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting from damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender or its agents may make reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection giving
reasonable cause for the inspection.
C. Trustee's Rights and Duties
If directed by Lender to foreclose this lien, Trustee will
1. either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect;
Z. sell and convey all or part of the Property "AS IS"" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the other Exceptions to
Conveyance and Warranty and without representation or warranty, express or implied, by
Trustee;
3. from the proceeds of the sale. pay, in this order
a. expenses of loreclosure. including a reasonable commission to 'Frustee:
DI-D OF TRUST TCH P Page 4
CSC No. C.'-24714 Rev. 5-17-13
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
C. any amounts required by 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.
5. 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 I)eed of
Trust. Grantor will apple all rent and ether income and receipts to paN�ment of the Obligation and
DEED OF TRUST TCHP Page 5
CSC No. C-24714 Rev. 5-17-13
performance of this Deed of Trust, but if the rent and other income and receipts exceed the
amount due with respect to the obligation and the deed of trust, Grantor may retain the excess. If
Grantor defaults in payment of the obligation or performance of this Deed of Trust, Lender may
terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent
the Property and collect all rent and other income and receipts. Lender neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the Property. Lender may
exercise Lender's rights and remedies under this paragraph without 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 principal of
the debt or, if that has been paid, refunded. On any acceleration or required or permitted
prepayment, any such excess will be canceled automatically as of the acceleration or prepayment
or, if already paid, credited on the principal of the debt or, if the principal of the debt has been
paid, refunded. This provision overrides any conflicting provisions in this and all other
instruments concerning the debt.
9. In no event may this Deed of Trust secure payment of any debt that may not
lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law.
10. When the context requires, singular nouns and pronouns include the plural.
11. The term Note includes all extensions, 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 protest. to the extent permitted by law.
1 . Grantor agrees to paN, reasonable attorneN-'s tees, trustee's tees. and court and
DEED OF TRUST TC1113 Pa{ue 6
t
CSC No. C,-24714 Rev. 5-17-13
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
15. 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 Feed o f' Trust has also been executed and de l i�,,ered pursuant to the terms o t' the
DEED OF TRUST TC11P Page 7
CSC No. C-24714 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 76 102
DE ED OF TRUST TCF{I' Page 8
CSC No. C-24714 Rev. 5-17-13
EXHIBIT "A"
1333 E. Jefferson Avenue; Lot 18, Block 53, 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.
[ FTD[7F TRUST TCHP Pa(ze 9
CSC Igo. C-24714 Rev. 5-17-1 3
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 75102
or at any other place that Lender may designate in writing
Principal Amount: ONE HUNDRED SEVENTEEN THOUSAND AND FORTY
THREE/100 DOLLARS ($117,043.00)
Loan Authority:
The loan evidenced by this Note is being made pursuant to the HOME Investment
Partnerships Program authorized under Title II of the Cranston-Gonzalez National
Affordable Housing Act of 1 990, 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 (5%)
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 Nt�TI= -ICIIP Page l
CSC No. 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 (I) 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
lave. Any interest in excess of that maximum amount will be credited on the Principal Amount
or, if the Principal Amount has been paid, refunded. On any acceleration or required or permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or. if the excess interest has alreadN, been paid. credited on the Principal Amount or,
PR(W I S S 0 R Y N 'I'C I I P Paile 2
CSC No. rev. 05-17-13
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this Note and all other instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note. When the
context requires, singular nouns and pronouns include the plural.
TARRANT COUNTY HOUSING PARTNERSHIP,
INC.
Donna VanNess, President
PROMISSORY NO'111' 1 C 11P Wage 3
CSC No. rev. 05-17-13)
EXHIBIT"A"
1333 E. Jefferson Avenue; Lot 18, Block 53, 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 NOTE TCHP Paty e 4
CS No. rev. 05-17-13
EXHIBIT "J"
ENVIRONMENTAL MITIGATION ACTION
NOT APPLICABLE
EXHIBIT "K"
SECTION 3 REPORTING REQUIREMENTS
EXHIBIT "K"
Section 3 31ri1"1'11"1'1ary 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 Public Reporting Burden statement
1.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)
6.Length of Grant: 7.Reporting Period:
8.Date Report Submitted: 9.Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part is 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
Office/Clerical
Construction by Trade(List)
Trade
Trade
Trade
Trade
Trade
Other List
Total
'Program Codes 3=Publidlndian Housing 4=Homeless Assistance 8=CDBG State Administered
1=Flexible Subsidy A=Development, 5=HOME 9=Other CD Programs
2=Section 2071811 B=Operation 6=HOME State Administered 10=Other Housing Programs
C=Modernization 7=CDBG Entitlement
Page 1 of 2 form HUD&)D02(6/2001)
Ref 24 CFR 135
Part I!: 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 projecVactivity $
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 I!!: 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(or
nonmetropolitan county)in which the Section 3 covered program or project is located,or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which 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. 1701 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 self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6)of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative:personal identifying
information is not included.
Page 2 of 2 form HUD 60002(1112010)
}ref 24 CFR 135
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 contractor's
all programs covered by Section 3. Part I relates to employment or recipient's payroll for employment at the time of selection for the
and training.The recipient has the option to determine numerical Section 3 covered award or at the time of receipt of Section 3 covered
employmentltraining goals either on the basis of the number of hours assistance.
worked by new hires(columns B,D,E and F). Part iI of the form Column C: (Mandatory Field) Enter the number of Section 3 new
relates to contracting,and Part ill summarizes recipients'efforts to hires for each category of workers identified in Column A in
comply with Section 3. connection with this award. Section 3 new hire refers to a Section 3
Recipients or contractors subject to Section 3 requirements must resident who is not on the contractor's or recipients 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 0: 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 the 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 Ii: 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. projecttprogram.
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 projectlprogram 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 projectlprogram awarded to Section 3 businesses.
award form(with dashes). The award may be a grant, Item Do Enter the number of Section 3 businesses receiving awards.
cooperative agreement or contract. Block 2: Nan-Construction Contracts
3. Dollar Amount of Award: Enter the dollar amount,rounded to the item A: Enter the total dollar amount of all contracts awarded on the
nearest dollar,received by the recipient. projectlprogram.
4&5. Contact Person/Phone: Enter the name and telephone number Item B: Enter the total dollar amount of contracts connected with this
of the person with knowledge of the award and the recipient's project awarded to Section 3 businesses.
implementation of Section 3. Item C: Enter the percentage of the total dollar amount of contracts
6. Reporting Period: Indicate the time period(months and year) connected with this projectlprogram awarded to Section 3 businesses.
this report covers. Item 0: 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. PHAsIIHAs 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 80 percent of variations are necessary because of unusually high or low family incomes.
the median income for the area,as determined by the Secretary,with
adjustments for smaller and larger families,except that
Page form HUD 60002(1112010)
Ref 24 CFR 135
M&C-Council Agenda
City of Fort Worth, Texas
0 M
Mayor and C
Communication
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DATE: Tuesday, March 27, 2012 REFERENCE NO.: C-25531
LOG NAME: 17TCHP—HILLSIDEWORNINGSIDE 10
Authorize Expenditure in the Amount of$1,115,000.00 of HOME Investment Partnerships Program
Grant Funds to Tarrant County Housing Partnership, Inc., for the Development of Ten Single Family
Houses in the Hillside-Morningside Neighborhood, Authorize Execution of Conditional Commitments
and Contracts (COUNCIL DISTRICT 8)
It is recommended that the City Council:
1. Authorize substitution of funding years in order to meet commitment, disbursement and expenditure
deadlines for grant funds from the United States Department of Housing and Urban Development;
2. Authorize expenditure of $1,115,000.00 in HOME Investment Partnerships Program Grant funds as
allocated in the 2011-2012 Action Plan to Tarrant County Housing Partnership, Inc., a certified
Community Housing Development Organization, for the development of up to ten single family houses
in the Hillside-Morningside neighborhood;
3. Authorize execution of conditional commitments with Tarrant County Housing Partnership, Inc., that
conditions funding, among other things, on satisfactory completion of HOME Investment Partnerships
Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the project
for a three year term beginning on the date of execution of the contract;
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M&C-Council Agenda
5. Authorize extension or renewal of the conditional commitment(s) or the contract(s) if Tarrant County
Housing Partnership, Inc., requests an extension and such extension is necessary for completion of
the project; and
6. Authorize amendment of the conditional commitment(s) or the contract(s) if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with
City policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSS:
On May 14, 2011, the City issued a Request for Proposals (RFP)for certified Community Housing
Development organizations (CHDO) to award and expend up to $1,261,931.00 of HOME Investment
Partnerships Program Grant funds. On November 18, 2011, the Tarrant County Housing Partnership,
Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds to acquire 17
sites on which it proposed to construct single family houses. The request also included funds for
CH DO operating expenses.
Staff reviewed all RFP submissions and recommended the award to TCHP of$1,115,000.00 in HOME
funds to the Community Development Council (CDC) at its meeting held on May 25, 2011. The CDC
agreed with Staff s funding recommendation for the Project. Up to $100,000.00 of the awarded funds
will be used for operating expenses and $1,008,943.10 for construction of 10 houses and other
development expenses including the developer fee, which is based on the cost of construction.
TCHP plans to develop up to 10 single family houses to be located in the Hillside-Morningside
neighborhood. There are three floor plan options available varying in square footage from
approximately 1300 to 1600 square feet with three bedrooms, two baths and a rear detached garage.
The houses will be sold to an individual or family that earns 80 percent or less of Area Median Income
as determined by the United States Department of Housing and Urban Development (HUD). Buyers
must meet all HOME Program requirements, including applying for and receiving at least$1,000.00 in
down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and
occupying the house as their primary residence for five years.
i. Construction must begin within six months of date of contract execution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a recorded
Deed of Trust;
iii. Houses must be sold to a HOME eligible buyer; and
iv. TCHP will be allowed a 10 percent developer's fee based on the cost to construct the houses.
The expenditure of--HOMEJ_Unds i,5 conditioned U12on the followiag:
i. Satisfactory completion of the environmental review per 24 CFR Part 58; and
i i. Authorization to use grant funds from HUD.
The Action Plan's funding years for federal funds selected may vary and be substituted based on the
principle of First In, First Out (FIFO) in order to expend oldest grant funds first. The HOME funds may
be used for any eligible costs related to the development.
Staff recommends the expenditure up to $1,115,000.00 in HOME funds for the Project to benefit low
and very low income citizens by providing affordable housing. A public comment period on the
expenditure of these HOME funds was held from June 28, 2011 to July 27, 2011. Any comments are
maintained by the Housing and Economic Development Department in accordance with federal
regulations.
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M&C-Council Agenda
This project is located in COUNCIL DISTRICT 8.
FISCAL INFQRMATION/ CERTIFICATION;
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
EUNC_CENTERS:
TO Fund/A"ount/Cen FROM FundLAccount/Centers
Q R76 539120 0172065310, 0 $100.00 .00 GR76 53912Q 017206531 QaQ $100,000.00
G R76. _539120 017206531'100 $1 QQ8,943.1 Q GR76 539120 017206531040 $1,008,943._Q
GR76 -53912Q 005206123'100 &6Q56,90 GRZ6 539120 005206123970 $5,056.90
emitted for_ •r,g_. vr- Fernando Costa (5122)
Originatil3a Department Headw Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Q„ Fabiola Suarez (5811)
ATTACHMENTS
1. TCHP.M8[?..1df (Public)
2. (CFW Internal)
3. Available FundS.eQE (CFW Internal)
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