HomeMy WebLinkAboutContract 44565Ci`�vSECR�1'�C �� �'
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COMMi1NITY HOUSING DEVELOPMENT CONTRACT
This contract {"Contract"} is ma�e and entered into by and between the City of Fort
Worth {hereafter "City") and Tarrant County Housing Partnez-ship, Inc. {hereafter "Developer"),
a Texas non-profit corporation. City and Developer may be referred to individually as a"Part�'
and jointly as "the �'arties".
The Parties state as follows:
WHEREAS, Ciiy has received a grant frorr� khe United Skates Department ofHousing and
Urban Development ("HUD"} through the HOME Investment Partnerships Program {"HOME"),
Program Catalog of Federal Domestic Assistance No. 14.239, with which Ciiy desires to
promate activities that expand the supply of affordabl� housing and the development of
partnerships among City, local governments, local lenders, private industry, and neighborhood-
based non-profit housing organizatio�ns;
WHEREAS, the primary purpose of tlle HOME progcam pursuant to the HOME
Investment f'artnerships Act ak Tiile II of the Cranston Ganzales National Affordable Housing
Act of 1990, as amended, 42 U.S.C. 12701 et sec�. and the HOME Inveskrnent Partnerships
Pro�ra�n Final Rule, as amended, 24 CFR Part 92 et seq. {the "HOME Regulations" ar
"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
developrnent entities that qualify under the HOME Regulations as a Community Housing
Development Organization (CHDO);
WHEREAS, Developer, a Texas non-profit corporation managed by a valunfeer Board of
Direetors and qualified as a CHDO according to HOME Re�ulations, is working to increase the
number of quality, accessible, and affordable housing units available to low and moderate
incame persons;
WHEREAS, Developer requested HOME CHDQ funds for an eligible project for
construction of single family hauses;
WHEREAS, under this Cantract, the Developer agrees to construct one single �amily
I�ause located at 1300 E. Jefferson, Fort Worth, TX 7b 104 in the City of Fort Worth and in
accordance with the HOME Regulations and Exhibit ��A-I"- Final Elevations and Proposed
Plans an.d SPecifications �or an amoun� up to $117,�86,00 in HOME funds;
WHEREAS, the Developer shall sell the single family h.ouse to a HOME Eligible Buyer
who will use the house as his or her P�•incipal Residence during the Aftordability Periad (the
"Required Improvements" or project), as further described in Exhibit "A" — Pro�jeet S��mary
and Scope af Work;
OFFICIA� R�IC�Rp
CHDQ Co�2tract 1t�itlt TCHP,for 3�f��� ��,q�� ����� V E n� U N�. 9 20i3
Page 1 of 33 �'�". ���'�'�y ��
WHEREAS, City l�as detetmined that the development af quality, accessible, and
affordable housing is needed for moderate, law, and very low-inconne citizens of Fort Wor�th;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities cantained herein, including alI Exhibits and Attachments, and subject ta �he
terms and eonditions i�ereinafter stated, the Parties understand and agree as follows:
l . INCORPORATI4N OF RECITAL5.
City and Developer hereby agree �hat the recitals set faz`th abave are true and coz�'ect and
form the basis u�on which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the bndy of this Contract, the following terms shall have
the definitions ascribed ta them as foliows:
Affordable House means a house far r,vhich the homebuyer's monthiy payment of principal,
interest, property taxes, and insurance does not exceed 30% of the homebuyer's monthiy grass
income, ��ar is lower than 16% of the hornebuy�r's monthly gross income, for an individual or
family with an income at ar below SO% af Area Median Is�come, adjustec� inr family size. In the
case of new-house constructian, the percentage of the hamebuyer's monthly gross income shall
��ot exceed 32% of the homebuyer's monthly �oss income.
Aifardabiiity Period means t��e periad of titne that a ha�se purchased or constructed with
HOME Funds must remain affordahle and subject to recapture pravisions for the affordability
periads described in 24 CFR Part 92.25� of the HOME Regulatians. The Affordability Period
begins an the date t�:e Project status is changed to "complete" in HUD's Integrated Disburserr�ent
Information Sys�em ("IDIS"). Required Improvements �nust remain affoardable fo�' the fallowing
minimum period, as appiicable:
1. Five years if the Hom�ehuyer Assistance Pragram (HAP) is less than $15,0�0; and
2. Ten years if the HAP is $� S,OflO to $40,400.
Area Median Inco�e {"AMP') means the median family income for t�e Fort Worth-Arlington
met�•apalitan statistical area as established annually by HUD.
Business Diversity Enterprise Ordinance ar BDE means the City's Business Diversity
Ordinance, Oz•dinance No. 20020-12-2011.
City Final Ins�ection rneans a HUD Compliance Inspectian Report ("Repari"} campleted by
ti�e City. The Report will nat be perfartned until after the City's Permits Plus system states that
CHDO Cantract ivith TCHP far 1300 E. Jeffelsola
Page 2 af 33
the R�quired �mprovements have passed a�nal inspection by the �'Ianning and Develapment
Department.
City HAP Eligibility Requireme�ts means the �ligibility of a homebuyer for closing cost
at�d/or dawn payment assistance under City HAP guidelines as adopted hy City Cauncil.
Community Hvusing Developmen# Organization (CHDO} shall be deiined as set forth in 24
CFR 92.2, as amended:
(1} Is organized under State or loeal laws;
(2) Has no part of its net earnings inuring to the benefit af any member, found�r,
cantributar, or individual of the CHDO;
(3) Is neither contrnlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain fror� the organization. A CHDO may be sponsored ar ci•eated by
a for-proiit entity, but:
(i} The for-profit entity may not be an entity whose primary purpase is the
development or rnanagement of housing, such as a builder, developer, or real
estate management iirm;
(ii) The for-prafit entity shall not appoint more than ane-third of the rnetnbership
of the organizatian's govei�ning body, and board memhers appointed by the
for-profit entity �-nay not appoint the �•enna�ning two-thirds of the 6aard
members; and
(iii} The CHDO must be free to contract for goods and se�vices from vendors of
its own choosing;
(4) Has a tax exemption rulin� frorn the Internal Rev�nue �ervice 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 atnong its purposes the provision of decent housing that is affordable to lar�v-
inca�xae and moderate-income persons, as evidenced in its charter, airticles af
incorporation, resolutions, or hy laws;
{7} Mai��tains accauntability ta Iow-inco�ze cammunity residents by:
(i) Maintaining at least one-third of its governing board's mernbership for
residents of lavv-income neighba�•hoads, other low-income cammunity
residents, or elected representative of low-income neighborhood
nrganizations. For u��ban areas, "community" may b� a neighborhood or
neighborl�oods, city, courtty or metropolitan ai•ea; for rural areas, it may be a
neighborhood or neighborhoods, town, village, county, a�• multi-county area
{but not the entire �tate); and
(ii} Providin� a formal process for Iow-income-program beneficiaries to advise
the organization in its decisions regarding the d�sign, siting, development, and
management of affordable housing;
{8) Has a demonstrated capacity fox carrying oui activities assisted with HOME funds;
(9) Has a hisfi�ry of serving the communiry within which housing to be assisted with
HOME funds is to be located; and
(10) Has at least one full�time staff person
CHDO Contract tivith TCHP for 1300 E. Je etsat
Page 3 of 33
Complete Dacumentation means {i} Exhibit "E-1" — Invoice, si�ed by an a�athorized
signatory of CHl�4, stating the amount of funds requested for reimbursetnent; and (ii) Exhibit
"E-2" — Detailed Statenn►ent of Cos�s, cantaining an itemized lis�in�; of all eligible expenses
requested for reimbursement. In order for Exhibit "E-2" — Detailed Statement of Cosfs to be
considered complete, the following backup documentation must also be submitted as
appropriate: {a} copies of bids and invoices from subcontractors and vendars far each expense
listed on Exhibit "E-2" — Detailed Statement of Costs, along with an explanation of how the
invoice pe�-�ains to the Required Impravements, (b} copies of other documents such as cancelled
checks or wi�•e karansfers necessary to demonstrate that such amounts were actually paid, (c) if
�•elevant, final lien reieases signed by th� general cantractors or appropriate subcontractars, and
(d) any other documentatian reasonably requested by City such as BDE ar�d/ar DBE compliance,
permits, detailed subcontractor reports, efc. The final reimbursetnent shall not be disb�a�'sed untii
all liens are released to City's satisfactian as evidenced by a title report or affidavit of lien
�'elease. Exhibit "F"- Standard of Backup Docurnentatian is attached.
Completion shall mean the substantial completion of tk�e Required Improvements, as evidenced
�iy HED Depa�`�ment Minimum Acceptable 5tanda�•d report, a HUD Compliance Inspection
Repart, and any other applicable final inspection approval fram the City..
Completion Deadline nraeansJ(A/IPi �� �fl��'
DBE means disadvantaged business enterprise in accordance vc+ith 49 CFR Part 26.
Deed of Trust means the deed of t��st signed by Developer pursuant to Section 4.2.2. See iarm
in Exhibit "�"- Deed of Trust Form.
Directo!• means the Directar 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 Tr►�st means the deed of trust signed by a HOME Eligible Buyer to secure HAP
assistance.
HOME Eligible Buyer means: (1) a homebuyer whase annual incame adjusted fox family size
does not exceed SO% of AMI using the most current HUD Ine�me Guideiines and Technical
Guidance for Determining Income and Allowances. The definition of annual income to
detei�tnine homebuyer �ligibility under tk�is Contract shall be the definition cantained in 24 CFR
Part 92.203(b)(1), as amended; and (2) a hamebuyer who meets City HAP Eligibilzty
Requirements and reeeives a minimum of $1,000.�0 of down payment andlor closing cost
assistance.
HOME Funds means City's HOME fi.�nds supplied by City to the Develaper under the terms of
this Contract.
CHDO Colrtract Lvltlt TCHP for I30D E. Je,ffer•sofi
Page 4 of 33 �
Prin�cipal Residence means the improved property that will be accupied by the HOME Eligible
Buyer for a majarity of each year througl�►oui the Affordabiliiy Period in accordance with the
HAP �uidelines as fiirther described in the writken agreement between the HOME Eligible Buyer
and the City arid the HAP loart dacum�nts to be executed by the HOME Eligible Buyer.
Property means the land an which the Required Improvements shall be constructed as more
pa�`ticularly described in Ex�ibit "A-2" — Property Legal Description
Required Improvements mean the construction by the Develaper of a sin�le family house as
defned in Exhibit "A".
Sales Proceeds means the sales price af a property, minus construct�an loan repayment (ather
than HoME Program funds}, Developer �ee and any closing costs, or as athervvise deiined in the
HOME Regulations and as shown on ihe settlement statement desc�-ibed in Sectian 4.9.4.
3. TERM AND EXTENS�ON
3.1 Term. The term of this Contract begins on the Effective Date and terminates in
two years unless terrninated as provided in this Co�tract.
3.2 Extension. This Contract may be extended for 1 year upon Developer subnr�itting
a request for an extension in writing at least 60 days before the end of the Contract term. The
request faar extension shali include De�eloper's anticipated budget for the remaining balance, an
explanation as ta why additional time is needed, and a propc�sed project timeline. Tt is
specifically undez•stoad that it is within City's sale discretion to approve or deny Developer's
req�e�t for an additional term. Any such extension rr�ust be in writing as an amendment to this
Contract.
4. DEVELOPER OBLIGAT�4NS,
4.1 CHDO Certi�cation
4.1.1 Re uirements Met, By the execution of this Contract, Develaper certifies
that it tneet� a11 requirements set foi�th in 24 CFR 92.2 for being a CHDO,
4.1.2 Status Reparts. Developei• has a continui�g, angoing duty to p�•ovide City
with any docum�ntatian or informatian ir� regard to its status as a CHDO. Developer shali
provide City with any information and documentation �•egarding any change in its stat€�s as a
CHDO or as a SOl(c){3) tax exempt entity within ten business day of said change. Developer
shall provide to City an annual board roster and certification of contir�ued status as a CHDO by
January 30`t' of each year. The failure af Developer to rnaintain its status as a CHDO shall result
in reversion of assets as described as 8.5.1 and shall be considered a default o� Developer, which
CHDO Cof7tract �vitlr TCHP,faf' 130Q E. .Ie etso�a
Page 5 oT 33
shall result in the termination of this Conkract under Section 8.4 below.
4.2. Constrnction of Renuired Improvements.
4.2.1 Required Improvements. Developer shall complete the constr�ctian of the
Required Improvements as described in E�hibit "A" — Praject Snmmary and Seope of Work
upon receiving writt�n notice to proceed from City.
4.2.2. Lien on Property. To seeure City's HOME Funds in the Required
Imp�•ovements, Developer shall execute and provide to the City a promissary 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 De�d of Trust is recorded.
Upon recarding the HAP Deed of Trust, the City will release the Develaper's Deed of Trust,
4.2.3 Sale of Required Improvemen.ts. Undez the terms and conditians of this
Contract, Dev�loper shall construct the Required Improvements to be sold to a HOME Eligihle
Buyer(s).
4.2.4. Praiect Schedule. Developer will construct the Required Improvernents
by the Completion Deadline in accordance with the schedule set forth in the attached Exhibit
"B" — Projeci Schedule. Developer's failure to meet the Project Schedule or the Completian
Deadline shall be an e�ent of defauit. The City may, at its sale discz'etion, approve any changes
to the Praject Schedule after Developer submits a w�-itten request far the modiiied Project
Schedule. �f approved by the Director, the Parties sha11 execute a Ietter agreement memorializing
the change to khe Cantract.
4.2.5 Interirn Financin�. Developer shall n�t obtain any third party financing
for the fialfillment of its obligatians in this Contract or place any liens on the Property without
the written approval af the City, and any attempt to secure financing or f le a lien withaut City's
written appraval shall result in automatic termination of this Contract.
4.3 Use of H4ME Fu�ds.
4,3.1. Budget. HOME Funds will be spent in accordance with Exhibit "C" -
Sndget. Developer may increase or decrease line-item amounts in the Sudget with Director's
prioar w�7�ten approval so Iong as the expenses are in compliance with 4.3.2, comply with
Exhibit "A" — Pro,ject Summary and Sca�e of Work, and the total amaunt of HOME Funds is
notincreased.
4.3.2. Expenditures in Compliance witi� HOME Re u�ons. Developer shall be
�•eimbursed for the canst�uction of tlie Required Improvements with HOME Funds anly if
Developer provides Complete Documentation showing that the casts are eligible expenditures
undear HOME Regulations and in com�liance witli the Budget and Project Schedule. Further,
Developer znust camply with project requirements in 24 CFR Part 92 Subpart F--- Project
CHDO Conti•act tivitla TCHP far 1300 E. Jeff�eisolt
Page 6 of 33
Requirements, attached he�•eto as Exhibit "G" — Subpart F Pro,ject Requiremenfs.
4.3,3. Reimbursement Re uests. Funds will be disbursed as detailed in Exhibit
G4B"- Project Schedule. In order to receive reimbursement for eligible expenses, De�elaper
must submit Cott�plete Documentation to City within the Co�tract tertn. Additionally, �DF's o�
site plans, drawings or designs must be includ�d with the first request far reimbursement. City
shall not hold retaiz�age. Instead, it shall make the final construciion paymer�t due Developer
contingent upon successful co�npletion of the fallowing: (1) Completion of the Required
Improvements by Developer; (2) receipt of a Housing and Economic Development Final
Inspection approval for the Requi�•ed Isnprovements; (3) approvai of Complete Documentation;
and (4} Developer is not in breach of this Contract or any other agreement Develaper has with
the City. Developer Fee will be paid at closing of the sale of the house to a HOME Eligible
Buyear.
4.3.�4. Withholdin Pa ent. II+' COMPLETE DOCUMENTATION IS NOT
RECEIVED, CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER THIS
CONTRACT, Further, if Develnper is in default of any other HOME contract �vith the
City, City may choose, in its sale discretion, to rvithhold pay�nents requested under this
Contract or any other contract with Developer.
4.4 Construction and Pro er Standards
4.4.1 Const�uction to Canform to All A licable Laws Buildin Codes and
Ordinances. All plans, speciiications and canstruction on the Required Improvements shali (i)
conform to all applicabl� Federal, state and local laws, ordinances, rules and regulations,
including HOME Regulatians; (ii) meet all City building codes; (iii} be certified as meeting the
Ene�•gy Conservation requirements as required by the State of Texas in Chapter 11 of the
Inteinational Residence Code; {iv) for new construction, must canfortn to the curren.t editian of
ti�e Madel Ener�y Code, published by the Council of American Building Officials; and (v) pass
the Final Inspection by the City.
4.4.2 Construction Ins ections. The construction of the Required Itnprovements
described in Sectian �4.2 rnust pass HED Department Minimum Acceptahle Standard Inspect�on
repart, a HUD Compliance Inspection Report alang with any other applicable fnal inspection
approval from the City and any other applicahle HUD-required inspections during the
construction period and at the completion of the construction of the Development.
4.4.3 Pro ert Standards ar�d Lead Paint Re uirements. Developer shall comply
with �he requirements as it related to City's prnpe�-ty standarcis as well as all applicable
accessibiiity standards fo�' the Required improvernents. Developer shall comply with (i} the
requirements contained 'zn 24 CFR Part 92.251 as relates ta Property Standa�•cis ax�d Housir�g
Quality Standards (HQS}, {ii} Accessibility Standards under 24 CFR Part 92.251 (a}(3) as
applicable, and (iii} Lead Based Pain.t Req�irements as found in 24 CFR Par� 92.355 and 2� CFR
Pai�t 35 in fhe construction of the house �uilt under this Contract.
CHDO Contj•act tivitlt TCHP fot• 1300 L�'. Jeff'e►sort
Page 7 of 33
4.4.�, Submission and Ap�roval by Cit� of �'lans and Specifications Nat
Release of Responsibility ar Liability. De�eloper shall submit plans and specifications ta the
City. Appravai of any plans and specifications relating to the Required Improvements hy City
shall not consiitute or be deemed (i) to be a release of the responsibility or liahility of Developer
or any of its contractoars, their respective officers, a�ents, employees and subcontractors, for the
accuracy or the competency of the plans and specifications, inciuding, but not limited ta, any
related investigations, surveys, designs, working drawings and specifications or other
documents; or (ii) an assumption of any �•esponsibilit� or liability by Czty for any n�gligent act,
en'or or amission in the conduct or preparation of any investigation, surveys, designs, working
drawings and specifications ar other docurn�nts by Developer or any of its contractors, and their
respective officers, agents, employees and subeontractors.
4.5 Subcontrac�ors.
4,5.1 Re�orting, Deveiaper shall submit proof of the following infarmation in
writing regarding all subcontractors utilized in the constructian of the Required Improvements:
4.S.1..1 Licensin� of Cantractors and Sul�contractors. Developer shall
ensure thai all contractors and subcontractors utilized in the construction of the Required
Improvements are appropriately licensed and that such lice�ses are maintained th�•oughout the
constiuction of the Reguired Improvem�ents.
4.5,1.2. Unlicensed or Debarred. Developer shali ensure that all
subcontractors utilized by Developer or Developer's �eneral contractor are not debarred or
suspended from performing wark within the City, the �tafie of Texas or the �'ederal government.
Developer must canfirm that ail cant�•actors subcontraetors are not listed on the Federal System
far Award Management, www.sam.gav, and must submit written veriiication 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. I� City determines that axay subcontractor has been
d�bar�•ed, suspended, or is not prope�•ly licensed, Developer or Developer's general contractor
shall irnmediately cause such subcontractor to stop work on the Required Improvements and
Develaper shall not be reimbursed for any work perfozmed by such subcontractor. However, this
Section shall not be cons#rued to be an assumption of any responsibility or liability by City to
determine the legitimacy, quality, abili�y, or goad standing of any subcontractor.
4.b Marketin�
4.6, l. Affiz-mative Marketin�. Developer must adopt affirmative mark�ting
procedu�'es and requirements far the Required Ir�provements as required by 24 CFR 92.351 if
the p�•oject involves #I�e eonstruction of 5 ar more houses. The proc�dures and requirements
must include �nethods for infoi�rning the public, owners and potential homebuyers about fai�•
housing Iaws and policies so as to ensure tha� all individuals, without �•egard for sex, a�e, race,
color, creed, nationality, natianal arigin, religian, handicap status, disability, familial status,
sexual orientation, �ender identity, geiider expression or transgender, are given an equal
oppartunity to participate in tkie project.
CHDO Contjact tivitla TCHP fof• 1300 E. Je e�san
P�t�e $ of 33
4.6,2, City Ap�roval. All Deveioper marketing pracedures related to the
Required Irnprovements, including but not li�-nited to the affirmati�e marketing descrihed in
Section 4.6.1 are subjeci to approval by City. Developer shall submit all marketin�; plans for
City approval na Iater than 7 calendar days after the Effective Date.
4.6:3 Effec�ive Marketin�. D�veloper will be solely responsible for the effective
marketing responsibilities necessary to achieve requirements described in Section 49.5.
Documentatian supporting these efforts shall be submitted to the City upon rec}uest and shall
include, but not be limited ta, brachur�s, sign-in sheets for open houses, listings, and
advei�tisements.
4.7 Deveioper Fee. Deveioper shall receive a fee of 10% of the total praject-related
development costs as determined by Exhi�it "C"- Budget ("Developer Fee"). The Develaper
Fee shall be paid at the closing of the sale of the Required Impravements to a HOME Eligible
Buyer and receipt of docutrientatian af all required inspectians.
4.$ Sales Proceecis. All Sales Proceeds must be returned to the City.
�.9. Sale of Required I�nprovements fo HOME Eli�ible Buver
4.9.1 Sale Price of Rec�uired Improvemer�ts. The sales price oi the Required
Improvements shall not exceed 95% of the median sales price of the same type of single-fatnily
ho�sing lacated rrvithin City as determined by HUD.
4.9.2 HOME Eli ibg 1e Buyer. 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 describ�d in Section S. Developer must verify that
tl�e homebuyer is a HOME Eligible Buyer, and must supply City with all ir�farmat�an necessary
to prove eligibility of a prospective buyer prior ta closing. Any atternpt to sell the Required
Impzovements to a homebuyer who is not a HOME Eligible Buyer shall be an event of c�efault
and shall result in autamatic termination and reversion of ali assets as described in Section 8.5.1.
In addition, the HOME Eligible Buyer must co�nplete a homeownership training and counseling
program priar to the closing of tk�e purchase af' the Required Improv�ments. This reyuirement
must be evidenced by a campietion certi�cate fram a HUD Certified Ho�sing Counseling
Agency on1y. A copy of the certification shall be provided to the City. Failure af Developer to
p�-ovide such certification shall be an event af default.
4.9.3 Contract. Developer shall pravide City with a copy of a sales contract for
approval priar to execution for each H�ME Eligible Buyer. The sales contrae� rnust contain
provisions regarding the following, and will incorporate definitior�s frorn tl�is contract as
relevant:
1. "The home you are purchasing was const�ucted with federal fiands that require
the home remain affoz•dable for up to S yea�-s ("Affordability Periad"}. This
means that if you seli or leave the hozne before the Affordabiiity Pe�'iad is
CHDO Contj•crct u�ith TCHP_fa• 1300 E. Je er.san
Page 9 of 33
over, you will be required to repay the City the amount af f�derai funds �sed
ta canstruct the home. Tk�erefoare, as a conditian of sale, you will be required
ta 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 ta secure the Affordability
Period. The City a�ees that the lien wi11 be subardinate to any purchase
money laans.
4.9.4. Developer ta Provide Settlement Statement. At least 5 business days before each
closing, Develaper will provide to City the estimateci settlennent statement. Tl�e settlennent
statement shall account, with regard to the Required Improvements, for the (1) homebuyer
suhsidies, (2} development subsidies {3} Developer Fee and (4) amount of Sa1es Proceeds to be
returned to City from settiement funds.
4.9.5. Timi�� o� Sale oi Required Improvements. Ti�e Required Tmprovement must be
sold to an HOME Eligible Buyer within 4 rr�onths from the date of Completion. If the Required
Improvements are not sold within 4 months from the date of Completian, the De�eloper shall
su€bmit a status report must comply with requirements described under Sectian 8.1.4. Failure to
submi� the report.and/o�• failure to se11 the Required Improvements wit�in 4�-nonths shall be an
event of defauit as desczibed u�der Section 8.1.4.
4.10 Moniforin� of Developer
4.10.1 Developer und�rstands and agrees that it will be s�bject tn rnani�aring by
City for compliance with #he HOME Regulations far the durat�on af the Affardabiliky Period
and until the praject is clased in HUD's IDIS system. Developer will provide access to project
files as requested by City, HUD, the Comptroller General of the United States, and any of their
�•epresentatives d��xn� the Tetxn, during the Affordability Period and for five years after
closeout of this Contract in HUD's ID�S system, and wiil meet all the i�eporting requirements set
out in this Contract. This Section sha11 sur�ive the ter�ninatian or expiratian of this Contract.
4,10.2 City, HUD, #he Comptraller General oft the LTnited States, and any o� their
�•epzesentatives sl�all have access at all reasonable hourrs to the Developer's offices and recards
dealing with the use of the HOME �unds that are the basis af this Contract, and to its officers,
directors, agents, employees, and contractors for the purpose af such monitoring with an
advanced notice of no less than 24 hours.
4.10.3. Developer agre�s ta iikevcrise monitar the effectiveness �� the services and
work ta be perfarmed by its cont�'actors and subcantractors.
5. HOMEBUYER ASSISTANCE.
5.1 HAP Participation. To ensure that the affordability requirem�nts are met, City requi�•es
that the HOME Eligible Buyer, at least 60 days prior to closing, apply far a minimum af
$1,000.00 of clasing cost andlor dawn payment assis�ance fram the Ciky's HAP. Hamebuyer
eligibility slaall be determined by City in City's sole discretion using City HAP Eligibility
CHDO Colztsact tivitlt TCHPfor 1300 E. Je, etsort
Page 10 of 33
Requirements. City shall enter into a written agreement with the homebuyer for the down
payment and/or ciosing cost assista�ce. If requested by �he City, Developer sha11 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 �neet
City HAP Eligibility Requirements, Developer may nat sell the Required Irnpxovements to the
homebuyer.
S.2 HAP Deed of Trust. Ci�y shall secure the HAP loa� by recording a deed of trust agains#
the Property. Upon recording the HAP Deed of Trust, the City will release the Develope�''s Deed
of Trust.
6. REP4RTING AND DOCUMENTATION_REQUIREMENTS
b.1 Record-keeUing �vstem. In the performance of this Contract, Developer shal!
develop a recard-keeping system and shall pramptly provide City with copies of any document
City deems necessary far the effectiWe fulfillrnent of Ciiy's manitaring and evaluation
responsibilities and the reports and docurt�ents au�lined below. 5pecificaliy Developer wiil keep
or cause to be kept an accurate record of al1 actions ta�en and all funds expendeci, with source
and back-up documents.
6.2 Records Retention. Developer will maintain all reco�'ds related to this Canfiract
for a minimum of five years after termination of the Contract.
7. DUTIES AND RESPONSYBILITIES OF CITY
7.1 HOME Funds.
✓ 7.1.1 Reim�ursement of HOME Funds. City will reimburse Developer up to
$�� �n HOME Funds far eligible expenses {excluding the Developer Fee) related to
constructian of tl�e Required Irnprovements, so long as such eligible expenses are in
conforma�ce with t�e Budget and Proj�ct Schedule, and sufficiently proved by Compleie
Docuinentatior�.
7.1.2 Timin of Pa ment. Provided that Develaper subrnits Complete
Documentatian to the Director with respect to the Required Improverrxents in conformance with
this Contract, City will reiarnburse De�eloper for eligible expenses within l 5 calendar days.
7.2. Monitarin�
7.2.1 Monitorin� City will monitar the activities and perfozmance af
Developer and its contractors as necessaz•y, but nn less than annually as required by the HOME
Regulations, 24 C�R Pa�'t 92.504. City wiil rnoniiar the perfoi�tnance of Developer in regard to
compliance with campletian of tasks, duties and respansibiiities as required und�r this Contract
with an advanced notice of no Iess than 24 ��ours.
CHDO Col�tract ��rtlt TCHP_foj• I300 E. Je er.san
Page Il of 33
7.2.2 In addition to other provisions of this Contract regarding frequency of
manitoring, City researves the right to perform desk reviews or on-site monitoz�ng of D�veloper's
compliance with the terms and co�ditions of this Contract, and oi the adequacy and timeliness of
Developer's performance under this Contract. After each monitoring visit, City shall provide
De�eloper with a written report of the monitor's findings. If the monitaring report notes
deficiencies in Developer's pe�'fo��nance, the report shall include requirements far �he timely
correction of said def ciencies by Developer. Failure by Develope�' to take the action specif ed in
tlie rnonitoring report may be cause for suspensian a�• ter�nination af this Contract as pro�ided in
Section 11.
7.3 CHDO Assistance. After the �xecution of this Cantract, City will schedule a
meeting with CHDO to review and discuss the cantractual requirements herein.
S. DEFAULT AND TERMINATION
8.1 �vents of Default
8.1, I Failur� to Begin the Rec��ired Improvements. The P�'operty shall be
acquired within 3 months of execution of the Cantract. If Developer fails to begin
construction af �l�e Required Improvements within 1 month of the acquisitinn of the
Property on which the Required Im�rovements will be located, City will natify
Developer in writing and the Developer wi11 have 30 calendar days from the date of
receipt of the written notice ta begin construction. If property is owned by the Deve�oper
at time of Contract executian, construction shall begin within 1�onth of the execution of
this Contract. If the Developer fails to begin construction of the Required Impravert�ents
within s�ch time, City shall have the right to terminate this Contract effective
imtnediately upon written notice ta Developer of such intent with no penalty ar liability
to City.
8.1.2 Failure to Com lete the Re uired Itn ravem.ents. If City detertnines that
the Required Improvements were r�ot cornpleted by the Completian Deadline, Ciiy will
natify Developer in writing and the Developer vvill have 30 calendar days from the date
of receipt of ti�e written notice to complete the Required Improvements. If the Developer
fails ta complete the Required Improvements within such time, City shail have the right
to tertninate this Contract ef�`ective immediateiy upon written notice to Deveiope�• af such
intent with no penalty or liability ta City, and to demand zepayment of any HOME Funds
already disbursed to Developer.
8.1.3. Failure to Sul�mit Complete Dacumentation. If Develope�' fails to submit
all Compl�te Documentation within the te��rrz. of this Contract, or if any subrr�itted report
or documentatian is �ot in cotnpliance with this Cantract or HOME Regulatians as
determined by City, City will notify Develope�• in writing and the Develaper wiil have 30
calendar days fi•om the date of zeceipt of the written natice ta subtnit or resubmit any
such repart or documentation to City. I� the Developer fails to submit or resubmit any
CHDO Contract �vith TCHP,for 1300 E. Je erson
Pcrge 12 o f 33
such report or dacu�nentation within such time, City shall have the �7ght to terminate this
Contract with no penalty or liability to City effective immediately, and ta detnand
repayment of any HOME Funds already disbursed to Develaper. Notwithstanding
anything to the contrary herein, City will not be required to reimburse any HOME �unds
to Developer unless Camplete Documentation is received and approved by City within
the term of the Contract.
8.1,4 Failure to Sell Required Improve�ents in Aecordance with Section 4.9.5.
Tf Developer fails to se11 the Required Improvements within 4 nno�ths of tl�e
Completion of the Itequired Improvements, Developer will notify City in writing and the
Develaper rrvill have 15 calendar days from the date af the written notice to suhmit a
detailed plan. describing how the Required Improvements will be sold ta a HOME
Eli�ible Buyer by 6 months fram Completion. The plan must be re�iewed and approved
by the City. If ti�e Required Imparovement is not sold within b�nonths from the date of
Campletion, Deveioper must choose one of the follor,ving options within 30 days before
the 6 rr�an�h deadline:
a. the Required Improvements wiil convert to rental unit(s) as described in
24 C�R 92.252 and the Developer will be responsible for the maintenance
and managernent of the Required Improv�ments. If this option is selected,
the City wiil execute a separate agreement enfo�•cing the applicable
HOME requirements for HOME rentai units; OR
b. all HOME fiinds provided to the De�eloper by the City under this Contract
shall be repaid ta �he City within 30 days and this Con.tz•act shall be
tei�rninated as described in Sectian in 5.5.
8.1.5 In General. In addition to the deiaults describ�d in 5ections 8.1.1,
8.1.2, 8.1.3, and 8.1.4 and unless specificaliy provided atherwise in this Contract,
Develaper sl�all be in default under this Contract if Develaper breaches any term or
condition of this Contract. IF such a hreach remains uncured after 30 calendar days
fallowing receipt of written �atice by City referencing this Contract, or if Developer has
diligently and continuously attempted to cure following receipt of such written natice but
reasanably required more than 30 caiendar days to cure, as determined by City, City shall
�ave the right to elect, in City's sole discretion, one of the rem�dies contained in Section
8.2 or to tenninate this Cont�•act effective irr�rriediately upon written notice to De�+eloper
of such intent.
8.1G No Waivear. The waiver af a deiault or bi•each of any term, covenant, a�•
condition of tl�is Contract shall nat aperate as a waiver of any subsequent default or
breach of the same or any other term, covena�t or c�ndition hereof.
8.1.7 Civii Critninal and Administrative Penalties. Failure to pecform all the
Contract terms nnay result in civil, c�•iminal or administrative penalties, including, but no�
limited to those set aut in this Cantract.
CHD� Cartt�•act tivith TCHP for 1300 E. Je et�so�r
Page I3 of 33
8.2. Ci O tians ir► Event of Default. If Developer fails to cure the de�ault within
the time stated in the notice, City at its sole option may elect a�y cambination of the following
actions:
$.2,1. extend Developer's time to cure;
8.2.2 disallow all or part of the cost af the activity or action not in compliance;
8.2,3 pursue any other legal remedies availahle to City to ensure compliauce
with this Contract and tY�e Deed af Trust, ineluding foreclosure; andlar
8.2,4 terminate this Contract.
8.3. No Funds Disbursed while in Default. Developer understan.ds and agrees that
no HOME Funds will be paid to Developer until all defa�lfis a�•e cured to the satisfaction of City.
$,4. Basis for Termination.
8.4.1. Termination for Cause. City may terminate this Contract in the event of
Dev�loper's default. Develaper agrees that s�ould City terminate #his Contract �ar cause,
Developer �hall not be considered for any other City contract invalving HOME funds. Likewise,
Developer may terminate this Contract if City does nat provide the HOME Funds subsiantially
as described in this Contract.
8.4.2 Termination for Convenience. In terminating under 24 C.F.R. 85.44, this
Contract �nay be terminated in whole or in part only as fallows:
8,4.2.1, By City with the consent of Developer in which case the �'a�`ties
shall agree upon the termination conditions, including the effective date and in #he
case of partial termination, th� portion to be terminated, ar
8.4.2.2. By the Developer upon written natification to City, setting forth
the reasons for such termination, the ef%ctive date, and in the case af par�ial
termination, the portion ta be ierminated. Hawever, if, in the case of a partial
termination, City determines that the remaining portion of the Contract to be
pei•formed or HOME Funds to be expended will n.at accomplish the purposes for
w��ich the Contract was made, City may tern�inate the Contt•act.
8.4.3 Dissalutian of Develaper Terminates Contract. In the event Developer is
dissolved or ceases to exist, aIl assets acquired with. HOME Funds used in the development of
the lxause(s) under the project including cash, interest payments f'rom laans or otherwise, any
accounts receivable attributable to the use of HOME Funds, and any real or personal prope�•ty
owned by Develap�r that was acqui�•ed nr improved with HOME Funds shall automatically
t�•ansfer io Ciiy and tl�is Contract shall terminate.
$.5 Results of Termi��ation
CHDO Cattr•act »�ith TCHP for 1300 E. Je erso�a
Page 14 o f 33
5.5. I. Reversion of Assets. In the event this Contract is tertninated with or without
cause, all assets acqufred with HOME �unds used in the development of the Required
Improvements includin� but nat limited ta 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 C�ty may designate.
8.5.2 Waiver of Developer Fee. �f this Contract terminates prior to the sale of
the Required Impravements ta a HOME Eligible Buyer, the Developer waives all right and claim
to the Developer Fee.
8.5.3. Forfeiture of HOME Funds. Tin the event af termination, all grant funds
awarded to Develaper pursuant to t�is Contract shall be immediately revoked, any HOME Funds
distributed to Developer shall be �'et�rned ta City, and any appravals related ta the Proj�ct that
is/are the subject of this Contract shall be irnmediately deemed revoked and canceied.
8.5.4 Na Com�ensation After Date of Tenninatian. In the event of termination,
Develaper s�all nat receive any compen�ation fo�• work unde�•taken after the date of the
termination.
5.5.5. Rights of City Nat Affected. Termination shall not effect or terminate any
of the rights of City as against Developer then existing, or vc+hich may thereafter accrue because
of such default, and the foregoin� provision shall be in. additian to any and all other ri�hts and
remedies available to City under the law and the Deed of Trust, including, but not limited to,
compelling Develaper ta complete the Required Improvements under the terms of the Contract.
Sueh te��tnination does nat terminate any applicable pravisions of this Cantract that ha�ve been
expressly noted as surviving tk�e term or tei�nination of the Contract.
9. SURVIVAL. Any pro�ision of this Contract that per�ains to affordability, monitoring,
record keeping and reparts, along with any default and enforcement p�•a�visions necessary to
enforce such provisions, shali survive the tei-tnination of this Contract a�d shall be governed by
the HOME Regulations as well as the D�ed of Trust.
10. REPAYMENT OF �4ME FUNDS. All HOME Funds are subjeet to repayrr�ent to City
by Developer in the event the Required Innp�•ovements do not meet the requirements as set out in
this Car�tract and its Exhihits. It is expressly understood that upan the Completion of Required
Irnprovements, any HOME Funds not reirnbursed under this Cantract shall remain wit� City.
� 1. GENERAL PROV�SIONS
li.l.. Develoqer Independent Contractor
Developer shall operate hereunder as an independent contractor and not as an of'ficer,
agent, searvan� a�' employee of City. Developer shall have exclusive cnntrol of, and the exclusive
ri�t to control, the details of the work and seivices per•formed k�ereunder, and all persons
pe�•forming same, and shall be soiely responsible for the acts and omissions of its officers,
CHDO Corrtract tivitlt TCHP foi-1300 E. Je er.rot7
Page 15 of 33
members, ag�nts, servants, employees, cantractors, project participants, licensees a�• invitees.
1L2. Doctrine of Res�ondeat Superiar
The doctrine of respondeat superior shall not apply as between� City and Developer, its
officers, members, agents, servants, em.ployees, cantractors, project participants, licensees or
invitees, and no�hin� herein shall be construed as creating a partnership or joint enterprise
between City and Develaper. It is expressly understood and agreed that no officer, mermber,
agent, employee, contractoi•, licensee ar invitee of Developer, nor any praject participant, is in
the paici sez-�ice a� City and that City daes not have the legal right to control the details of the
tasks performed hereur�der by Develope�•, its officers, mea�x�bers, agents, employees, contractors,
project participants, licensees or invitees.
11,3 Reli ious Or anization. No portian of the fiinds received by Developer
hereunder shall be used in support af any sec�arian or religiaus activity. In addition, the�'e rnust
be no religious or membership criteria for homebuyers of the HE)ME-funded property, pu�•suant
to The Fair Housin� Act, Title VIII of the Civil Rights Act of 1968 {42 U.S.C. Sections 3601 et
seq. ).
1i.4. Audit
11.4.1. Entities that Ex end $500 000 or more in Pederal Funds Per Year
Ali non-fed�ral entities that expend $500,000 or more in Federal fiinds within one year,
regardless af the source of the �'ederal award, must submit to City an annual audit prepared
under specific reference to OMB Circular A-133. The audit shall cover the Develnper's fiscal
years during which this Contract is i� force. Tl�e audit must be prepared by an independent
c�i�tified public accountant, b� completed within six months %llowing the end of the period
being audited and be submitted to City within 30 days a� its completian. Developer's audit
certification is attached hereto as Exhibii "D" —Auciit Requirements. The Audit Ce��tification
�orrz� must be submitted �o City within 60 days of the end of period being audited (Developer's
fiscal yea�'}. Non-profii entities that expend less than $500,000 a year in Federai funds are
exe�npt from Federal audit requirements for �hat year, but records must be available �or review or
audit by apprapriate affieials of the Federal agency, City, and Generai Accounting Office.
11.4.2. Citv Resezves the Right to Audit
City reserves the ri�t to perform an audit of Developer's program operations and
finances at any time during the tez�m of this Contract with an advanced natice of no less than 24
hours if C�ty determines that such auciit is necessary for City's compliance with OMB Circular
A-133, and Developer shall allow access to all pertinent materials. If �uch audit reveals a
questioned practice ar expenditure, such questions �nust be resolved within i 5 days afte�' notice
ta Developer of such questi�ned practice or expenditure. If questions are not �•esolved within this
pe�Ynd, City reserves the rigl�t to r�+ithhold further fundin� under this andlor fiiture contract{s)
with Developer. IF AS A RESULT OF ANY AUDIT IT �S 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 M4NIES SO MISUSED, MISAPPL�ED OR MISAPPROPRIATED,
CHDQ Co�atl�act �vith TCHP,faf� 1300 E, Je enson
Page 16 of 33
PLUS THE AMOUNT OF ANY SANCTiONS, PENALTY OR OTHER CHARGE
LEViED AGAIN�ST CITY BY HUD BECAUSE 4F SUCH MISUSE, MISAPPLICATION
4R MISAPPROPRTATION.
11.5. Venue
Venue for any actian, whether real or asserted, at law or in equity, arising out of the
e�ecution, performance, attempted performance or norz-performance of this Contract, shall lie in
Tarz•ant County, Texas.
11.6 Governin� La��v
In any questions involving state law, for any action, wllether real o�• asserted, at lavv or in
equity, a��sing out of the executian, performance or non-perfozmance oF this Con�ract, in any
issue not governed by federal law, the choice af law shall be the law from the State of Texas.
11.7 Severabi�itv.
The provisions of this Cantract are severable, and, if fnr any reason a clause, sentenc�,
parag�raph pr other part of this Contract sha11 be determined to be invalid by a court or Fedez'al ar
state agency, board or commission having jurisdiction o�er the subject rnatter thereof, such
invalidity shall nat affect other provisions which can be given effect without the invalid
provision.
11.8. Written A reement Entire A reement.
This written instrument and the Exhibits attached he�•eta, �,vhich are incorporated by
�•eference and made a part of this Contract for all purposes, constitutes the entire Contract by the
Parties hereto concerning the work and sez-�ices to be performed under this Contract. Any prior
or contemporaneaus 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 w�7ting and must be
ex�euted by each Party to this Contract.
119. Para ra h Headin s for Reference Onl No Le al Si nificance.
The pai•agraph headings contained herein are for convenience in reference to this
Contract and are nat intended to define oz• ta limit the scope of any provision of this Contract.
1L10 Cam lianee With All A licable La�vs and Re ulations
Developer agrees ta co�nply fully with a11 applicable laws and reguiations that are
cuz�'ently 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 af the Civil Rights Act of 1964 (�2 U.S.C. Sections 2000d et seq.)
including �rovisions requiring recipients of federal assistance to ensure
meaningful access by persnn of limited English proficiency
• The Fair Housing Act, Tit1e VIII af the Civil Rights Act of 1968 (42 U.S.C.
Sectioz�s 3601 et seq.)
• Executive Orders 11 �63,
1124b as amended by 11375 and 12086 and as
CHDO Cor7trrrct lvith TCHP for• 1300 E. Je etso�i
Page 17 of 33 �
st�pplemented by Depaz•tment of Labar regulations �1 CFR, Part 60
• The Age Discrimination in Employment of 1967
• The Age Discrimination Act of 1975 (42 U.S.C. Seckions 6101 et seq.}
• The Unifarm Relocation Assistance and Real Praperty Acquisition Policies Act of
1970 {42 U.S.C. Seetions 4601 et seq. and �9 CFR Pai�t 24} ("URA")
• Section SO4 of the Rehabilitation Act of' 1973 (29 U.S.C. Sectians 794 et seq.) and
24 C�'R Part 8 where applicabie
• Natianal Environrnental Policy Act af 19G9, as amended, 42 U,S.C. sections 4321
et seq. ("NEPA") and the related authorities listed in 24 CFR Part S$.
• The Clean Air Act, as amended, {42 LT.S.C. Sections 1251 et seq.) and the Clean
Water Ac� of 19'�7, as annended (33 U.S.C. Sections 1251 et seq.} and the related
Executive Order 11738. In na event shall any atnount of the assistance provided
under this Cor�tract be utilized with respect to a faciiity that h.as given �-ise to a
conviction under the Clean Air Act ar the Ciean Water Act.
+ I�nmigration Reform and Contxal Act of i986 (8 U.S.C. SecYions IlOI et seq.}
specifically including the prav'tsions requiring employer veri�cations of legal
status of its employees
• The American with Disabilities Act of 1990 (42 U,S.C. Sections 12101 et seq.),
the Architectural Bar�•iers Act of 1968 as amended {42 U.S.C. sections 4151 et
seq.) and the Uniform Federal Accessi�ility Standards, 24 CFR Part 40, Appendix
A
• Re�lations at 2� CFR Part 87 related to lobbying, including the requirement that
cei�tifications and disclosures be o�tained from all covered persons
• Dz-ug Free Workplace Act o� 1958 {41 U.S.G 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 o�• entities
• Re�ulatians at 24 CFR I'art 882.708(c) pertaining to site and nei�bo�•hood
standards for new constr�iction prajects
• Regulations at 2� CFR Part 983,6 far Site and Neighborhood Standards Review
• Regulations a� 24 CFR Housing and Urban Deveiopments, Part 92 Hozx�e
Investments Partnership Program
ll.11 HUD-Assist�d Pro'ects and Em �o meant and Other Economic O ortunities
(Section 3).
If the construction of the Required Impravements will cause the crea�ion of �zew
employment, training, or contracting oppoi�t�nities on a contractor or subcontractor level
resulting frozn fk�e e�penditure of the H�ME Funds, Developer shall camply with the foilawing
aud will ensu�•e that its contractars. I#' the work pe�•Formed under this Contract is oii a project
assisted under a program providing direct Federal financial assistance fi•om HUD, S�ction 3 of
t�ie Housing and Urban Develapment Act of 1968 as a►nended (12 U.�.C. Sections 17Q1 et seq.}
and its relat�d regulations at 24 CFR Patrt 135, specifically 24 CFR 135.38 ("Sectian 3"},
requires that the following clause, shown in italics, be inserted in a11 cavered contracts ("Sectian
3 Clause"):
CHDO Contfact �vith TCHPfor 13Q0 E. Je ejsvn
Page I B of 33
Section to be quoted in covered confracts begins:
"A. TI�e worlc to be pe�for�3ried zrndei• this contract is sarbject to the
1•eqasir•ements of Section 3 of Hoassing and Ur�ban Developrnent Act of 1968, as
amended, 12 U.S.C. ,sectian 170Iia (Section 3}. The pirrpase of Sectian 3 rs to
ensirre that ertiployrrient crnd other economic opportarnities generated by HUD
assisted or HUD-nssisted prajects co��er•ed by Sectian 3, s{iall to the greatest
exient feasible, be directed to low- a1�d ve�y-lotiv income persons, partica�lc�1-ly
per�sons wlao c�re r•ecipie��ts of HUD assistarzce for l�ousing.
B. T{ze �af•ties to this contract ag��ee to cofrtply tivith HUD's ,•egarlations i�z 24
CFR Paj-t 135, �vhich implement Section 3. As evidefaced by their execartian of
tliis co�rt�-act, t1�e par�ties ta this coniract cer•tify tlzat they af•e c�nder �zo cantractasal
ar otlaer irnpedirnent tlzat woc�ld prevent thern fi•om complying with the Paf�t 135
1•egttlations,
C. T1ae contf•actor agj•ees to send to eacli labor or•ganizataan ar
1•epresentative of ��o��Irer•s with wl�icl1 it Iza,r a callective bargairaing agree�nent or
other� crnderstandi�zg, if any, a notice ad��ising the labat• ar•ganization or warkej�'
represerrtatives of tlie contr•actof-'s commitrfre�its arnder tlzis Sectian 3 claaise a�zd
will post copies of tlze notice i�� canspicLrotrs places at tlze wo1•k site wjiere both
employees and applicants for• trai�iing and employment positions can see the
rrotice. T{ie natice shall descj•ibe the Section 3 prefer�ence, shall set forNz
minimcrrn ntirnber and job titles sarbject to {zif•e, availability af appre�tice at�d
training positions, tl:e qtralifications for each; and tlze nanre and location of tlie
person(s) talring applacataons fof- each of tlie positions; and the anticipated date
the �vork shall begin.
D. Tl:e contractar agr•ees tlzat it will i�aclaide tlus Section 3 clazise in eve�y
si�bcontract to comply with f•egulataon in 24 CFR Paj�t 135, and agr•ees to take
app�•opriate actian, as �rovided in an applicahle pr-ovision af the sasbcontf-act or
ira this Section 3 clazrse, upon finding tlzc�t the sasbcontractor rs in violation af t1Te
regttlaiions in 24 CFR Paj•t 135. T{te conts-�ctor ��tll not subcontr-act witit any
sa�bcontractor where it 17as natice or• krzawledge tl:at tl�e sirbcontj•actoj• has been
foarnd in violation of f•egulatians an 24 CFR I35.
E. Tlze contr�acto�� ��ill cet•tify tlzat any vacant employtr�ent positians,
ilzcltidisig tr�aining posiiians that a�•e f led.� (1) after the cant�•actor is selected hirt
before tlze corttract rs el.ecuted, and (2) with per�sans other than tltase to tivlrorn tjie
r•ega�latYons of 24 CFR Part 135. Tlte cofatf�actor will not si�bco�2tract witli any
si�bcont��acto�• wlrer e it l�as notice o�• Irnowledge tlzat the su6con�t�•actor has been
fa��nd in vialation af t•egulntians in 24 CFR 135.
F. Noncompliance tivitl: HUD's r�egcrlatian in 24 CFR Paj•t 135 may j•esislt in
scrnetions, tej•nainalion of tltis contract for• defatslt, a�zd dehc�rfne�zt or sccspen�ion
ft•o�n fc�ture HUD assisted cont�-acts.
G. With respect to waj�1� pelfor7ned in coni�ectio�� witli Sectiarr� 3 co��ered
Ladic�rz I�oarsing assistance, sectior� 7(b) of tlie Iizdian Self-Dete��jninaiion and
Edcrcation Assistcrnce Act (2S U.S,C. section 4SOe) also applies to t{ae wo��lc ta be
pesfor�rxecl t�nde�� tliis Co�ztr�act. Section 7(b) r•eqasi�-es thc�t to tlze gr�eatest extent
CHDO Coratl�rrct ivitft TCHPfoi• 1300 E. Jef�erson
P�rge 19 of 33
feasible (i) preferer�ce C1i1L� 0�3rJ01�tcrjzities for• tf•aining and einplayrnent sl�all be
given to Indians, and (ii) pr•efe�Rerzce iri tl:e ativard of cor�tracts and subcoritracts
s{rall be g1��eri to Indian organizations and Indian-owned Ecofzo�nic Ente�prises.
Parties to tliis co�Tti�act tlzat are strbject to tlte pi•ovisions of Section 3 and Section
79b) agree to cori�ply witlz Section 3 to the maxirncrm extent feasible, but nat in
derogc�tion of corripliance �vith Section 7(h). "
Sectian to be quoted in covered contracts e�.ds.
City ar�d Developer understand and agree that, if applicable to t11e project, compliance
witli the provisions of Section 3, the regulations set forth in 24 CFR �'art 135, and all applicable
��ules and orders of HUD shall be a co�nditian af the Federal iir�ancial assistance provided ta the
project binding upon City and Developer, and khei�• respective successors, assigns and their
contracto�•s. Failure io fulfill these requirements shall sub�ect Developer and its contractors and
their respective successors and assigns ta those sanetions specified by the gant agre�ment
through which Federal assistance is provided and to such sanctions as a�•e specified by 24 CFR
Part 135.
11,11.1 Section 3 Reporting.
City and Deveiaper uncierstand and agree that compiiance with the �z-ovisions of
Section 3, the reg�.�lations set forth in 24 CFR Part 135, and all applicable rules and
nrders of HUD shall be a condition o� the Federal financia� assistance provided to the
project binding upon City and Develaper, and their respectiv� successors, assigns,
contractors and subcontractars. �'ailure ta fulfill these requirements shall suhject
Developer and its cantractors and subcontractors and their respective successors and
assigns to those sanctions specified by the g�ant agreement through which Federal
assistance is provided and to such sanctions as are specified by 24 CFR Part 135. Thc
responsibilities include:
l. Implemeniing procedures to notify Section 3 residents and business
concerns about training, e�nployment, and contr•acting oppartunities generated by
Section 3 covered assistance;
2. Notifying potential contractors wor�Cing oi� Section 3 covered prajects of
their �•esponsibilities;
4. Facilitating the training and employment of Section 3 residents and the
award of contracts ta Section 3 business concerns;
5. Assisting and activeiy cooperating with the Department in rnaking
contractors and subcontracto�•s comply;
6. Refi•aining from entering inta contracts with contractors that are in violation
of Sectian 3 regulatiflns;
7. Documer�ting actions taken to comply with Section 3; and
8. Submiiting Section 3 Ann.ual Summary Reports (farm HUD-60002) in
accordance wit� 24 CFR Part 135.90.
CHDO Contj•act ivitlt TCHP fof• 1300 E. Je„�fe�:sot�
Pnge 20 of 33
In order ta comply with the Sectian 3 requirements, Developer must subxxiit the
Section 3 Reporting Foi�ns attached hereto as Exhibi� G4K" - Section 3 Reporting
Requireme�nts.
i 1. l 1.1.1 Report to the City on a quar�erly basis, al1 applicants for
employment, and all applicants fo�• employm�nt by
can#ractors and any subcontractors. This shall include
name, address, zip code, date of application, and status
(hiredlnot-I�ired) as of the date of the report.
11.11.1.2 Notify available positions to the public for open
competition, and prorride docurnentation to City wiih the
quarterly report that demonstt'ates such open advertisement,
in the form of printout of Texas Wo�•kforce Commission
posting, copy of newspaper advertisement, copy af flyers
and iisting aflocations where flyers were distributed, and
the Iike.
11.11, i.3 Report to the City on a quarterly basis, all corttracts
awarded by contractors and any subcontractars. This shall
include name ai contractor and/or suhcontractor, address,
zip code, and arnount af award as of the date of the report.
11.12. Prohibition A�ainst Discrimination
Developer, in the executian, performance or atte�npted perfarmance of this Con�ract,
shall comply with all non-discrim�ination requir�m�nts of 24 CFR 92.350 and the ordinances
codified at Chapter 17, Article III, Division �— Fair Housing of the City Code. Deveioper may
nat discriminate against any person beca�se of race, color, sex, gencier, religion, national arigin,
familial status, disability or perceived disability, sexual oarientatian, gender identity, gender
expression, or transgender, nor will Developer permit iis of�cers, members, agents, or
employees to engage in such disc��mination.
This Contract is made and entered into with �•eference specifically to the or•dinat�ces
codified at Chapter 17, Article III, Division 3- Emplayment Praetices af the City Code, and
Developer hereby covenants and agrees that Developer, its o�ficers, inemhers, a�ents, employees
and contractors, have fully eomptied with all provisions of sanne and that no �tnplayee, or
applicant fo�• employrrxent has been discriminated against under the te��ns af such ordinances by
either or its ofiicers, members, agents, employees or cantractors.
During the performance of this Contract, Develaper agrees that Developer will x�at
unlawfully discriminate against any employee or applicants fpr 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 vvill take
CHDC) Cof2tract tivitlr TCHP fo�-1300 E. Je ersan
Pnge 2I of 33
affirmative action to ensu�•e thai applicants are hired witho�t regard to race, color, sex, gender,
reiigion, natio�al origin, iarnilial status, disability or perceived disability, sexual arientation,
gender identity, gender expression or transgender and that employees are treated fairly during
emplayment without regard to their z•ace, color, sex, gender, religion, natianal origin, familial
status, disability or perceived disability, sexual orientation, gender identity, gender exparessian or
transgender. Such action shall inciude, but not be limited to, the following: employment,
up�'adin�;, demotion or transfer, �-ecz�uitment or recruittnent advertising, layaff or t�rmination,
rates o�pay or other forms of compensation, and selectian for training, including apprenticeship.
Develaper agrees ta past in conspicuous places, available ka emplayees and applicants for
employment, notices setting £arth the p�•ovisions af this nondiscrimination clause.
Developer will, in all solieitations or advertisements for employees placed by or on
hehalf of De�elaper, state that all qualified applicants will receive consideration for employment
without regard to race, color, se�, gender, religion, national origi�, familial status, disability or
perceiv�d disability, sexual orientation, gender identity, gender expression or transgender.
Develaper cov�nants that neither it nor any of its officers, members, agents, emplayees,
or contractars, while engaged in performing this Contract, shall, in connection with the
�mployment, advancem.ent or discharg� of etnployees or in connection with the terms, conditions
ar p�•ivileges of their empioyment, discriminate against persons because of their ag� or because
of any disability or perceived disability, except on the basis of a bona fide occupational
qualzfication, retirement plan or statutory requirement,
Develaper fiu�her cov�nants that neither it nar its office�'s, members, agents, employees,
cantractors, or pearsons acting on their behalf, shall specify, in solicitations or advertisements for
employees to work on this Cant�'act, a maximum age limit foar such employment unless the
specified maximum age linnit is based upon a bona fide occupa�ional qualification, retirement
plan or statutory requirement.
If Developer is found to be in noncomplian.ce with the nondiscrirnination clauses of this
Contract or witk� any nf such rules, �•egulations or orders, this Contract may be canceled,
terminated or suspended in whole or in part and Deveioper may be declared ineligible for further
government contracts in accordance with procedures auti�orized in Executive Order 11246 of
September 24, i965, and suc� other sanctions rnay be imposed and remedies in�oked as
provided in Ex�cutive O�•der 11246 of September 24, 1965 or by rule, regulations, or order of the
Secretary oi Labor or as otherwise provided by law.
Developer will require th� pravisions of this Sectian 11.11.1 to be included in each af its
subcontracts for work per�azmed on the project unless exempted by rules, �•egulations or orders
of the Secretary of Labor issued pursuant tio section 204 of Executive 4rder 11246 of September
24, 19b5, so that such provisions will be bindin� upon eacY� subcantractor oar vendor, Developer
will take such action with respect to ar�y subcontract or purchase order as City may direct as a
means of enforcing such provisians, including sanctions far noncompliance.
11.12,3. Develaper's Contrac�ors and ADA
CHDO Contf•act tivit/a TCHP.ro�� 1300 E. Je,�fet:ran
Page 22 of 33
Uncier the provisions of the Americans With Disabilities Act of 1990 ("ADA"),
Developer warrants that it and any of its contractors will not unlawfully disci-iminate on the basis
of disability in the provision of services ta the generai public, no:r in the availability, terms andlor
conditions of �mployment for applicants for erriployment with, or employees of Developer or
any of its contractars. DEVELOPER WARRA.NTS IT WILL FULLY COMPLY WITH
ADA'S PROVISIONS AND ANY OTHER APPLTCABLE FEDERAL, STATE AND
LOCAL LAWS CONCERNING DYSABIL�TY AND WILL DEFEND, INDEMNIFY AND
HOLD CrTY HARMLESS AGAINST ANY CLA�MS OR ALLEGATIONS ASSERTED
BY THIRD PARTTES OR C4NTRACTORS AGA�NST CITY ARISING OUT �F
DEVELOPER'S AND/OR ITS CONTRACTORS' ALLEGED FA�LURE TO COMPLY
WITH THE ASOVE-REFERENCED LAWS CONCERNiNG D�SABILITY
DISCRIM�NATION IN THE PERFORMANCE OF THIS CONTRACT.
11.13. Prohibition A ainst Interest / Conflict of Ynterest
11.I3,1 Developer shall establish safeguards to prohibifi iis employees, board
members, advisors and agents from using positions for a purpose that is nr gives the
appearance of being mativated by a desiare for private gain for themselves ar others,
paz-�icularly those with vcrhom they have famiiy, business or ather ties. Developez' shall
disclose to Ci�y any conflict of interest or potential co�flict of interest descr�bed above,
immediately upon discovery of such.
11.13.2 No persons who are emplayees, agents, eansultants, o£�`�cers ar elected
officials or appointed officials af City or of Developer who exercise or ha�e exercised
any functions ar respansihilities with respect to activiti�s assisted with H4ME funds or
who are in a pasitian to participate in a decisinn-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
wit�� respect thereto, or the proeeeds thereunder, either for themselves or thase with
whom they hav� family or business ties, during their tenure or for one year thereafter,
unless they are accepted under the procedures set fa�-th at 24 C.F.R. § 92.35b.
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 propei-�y and services by Developer, the
conflict af interest provisions af 24 CFR Part 85.3b and 24 CFR Part 8�.42, respectively,
shall apply. In all cases not go�erned by those sections, the provisions of 24 CFR Pai�
92.356 of the HOME Regulations shall apply.
ll.l.4. 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 �eq. and 18 U.S.C.
8'14) as annended, tihe provisions of Contract Work Hours and Safety Standards Act (40
U.S.C. 3'70l et seq.} and all other applicable Federal, state and local laws and regulations
CHDO Corrt��act with TCHP for 1300 E. Jef]`'ej sola
Page 23 of 33
pertaining to labor standards insofar as those acts apply to th� performance of this
Contract. Dev�loper agrees to comply with the Copeland Anti-Kick Back Act {18 U.S.C.
874 et seq.} and its implementing regulations of �he U.�. Department of Labor at 29 CFR
Part 3. Develope�• shall maintain documentation that demonstrates compliance with hour
and wage requirements of this Co��tract and HOME Regulations. Such documentation
sl�all he made available promptly to City, HUD, U.S. Department af Labor, the
Comptroller General of the United States, and any of their representatives for review
upon request.
11.14.2 Developer agrees that ali contractors engaged under contract for
constructian, renova�ion. or repair work financed in whole or in �art with assistance
provided under this Contract, shall camply with Federai requirements adopted by City
pertaining to such contracts and with khe applicable requi�•ements of the regulations of the
Department of Labar under 29 CFR Parts 1, 3, S and 7�overning the paymenf of wages
and ratio af apprentices and trainees to journey wax•kers; provided that, if wage rates
I�igher than those requized under these regulations are imposed by state or local law,
nothing hereunder is intended to relieve De�eloper of its oblzgation, if any, to require
payment of �he higher wage. Developer shall cause or require ta be inserted in full, in all
such contracts subject to such �•egulations, provisions meeting the requirements of this
paragraph.
11.15. Subcontractin with Smail and Minori Firms Women's Business
Entearprises and Labor__Surplus Areas.
11.15.1 For procurement contracts $50,000.00 or larger, Developer
agrees to document a gaod faith effort to involve Minarity Business Enterprises
and Small Business Enterprises and to provide them equal opportunity to ca�npete
for contracts for construction, provision of professional services, purchase of
equipment and supplies and provisian ot other services required by City.
Developer agrees to incorparate the Cify's BDE Ordinance, and all amendm�nts
or successar policies or ardi�►ances thereto, i:ntn alI contracts and subcor�tracts far
procurement $50,000.�0 or larger, and will further requi�•e all persans or entities
with which it so contracts ta document a good faith effort with said o�•dinance.
11.15.2 Tt is national policy to award a fair share of contracts to
disadvan.taged business enterpri�es ("DBEs"}, srnall business enterprises
�"SBES"�, minarity business enterpri�ses �"MBEs"�, and W011lell'S �U51I1�58
enteiprises ("WBEs"}. Accordingly, affirmative steps must be taken to assure
that DBEs, SBEs, MBEs, and WBEs are utilized when possi�ie as sources af
supplies, equipment, co�str�ction and seivices.
11.16. Other La�vs
The failure to list any federal, state or city law, ardinance or regulation khat is applicable
to Developer does nat excuse a�' relie�e Developer from the requiretnents or respansibilities in
regard ta fallowing the law, nor from the consequences or penalties far Develaper's failure to
fallow the law, if applicable.
CHDO Contract tivitlt TCHP.for 13Q0 E. Je efsaa
Page 24 of 33
1i.17. Assi�nment
Deve�oper shall not assi�n all or any part of its rights, priviieges, or duties under this
Contract without the prior written approval of City. Any attempted assi�ment of same without
approval shall be void, and shall constitute a breach of this Contract.
� l.l 8, Ri�h� to Inspect Contractor__Contracts
It is agr'eed that City l;as the t-ight to inspect cantracts between Developer and any
contractar engaged in any activity in conjunction with this HOME-funded project.
11.19. Farce Maieure
If Develaper becom�s unabie, either in whole ar part, ta fulfill its obligations under this
Contract d�e to acts of Gad, strikes, lockouts, or other industrial distu�'bances, acts of public
enemies, wars, blockades, insumrections, riots, epidemics, earthquakes, fires, floods, restraints or
prahibitions by any court, board, departme�t, cammission or agency of the United S�ates or of
any States, civil distu�•bances, or explosions, or some at�er reason beyond such Developer's
control (collectively, "Fnrce Majeure Event"), the obli�ations so af�ected by such Force Majeure
Event wili be suspended only during the continuance of such event. Deveioper will give City
written notice of the existence, extent and nature of the Force Majeure Event as soon as
reasonably possible after the occurz�ence of �he �vent. Developer will use commercially
�•easanable efforts to remedy its inability to perform as soon as passibie. Failure ta give notice
will result in the continuance of the Developer's obli�atian regardiess of the extent of ar�y
existing Force Majeure Event.
11.20 HOME Requirements. Developer agrees to connpty with all
requirements of the HOME Parogram as stated in 24 CFR Part 92, including, but nat limited to
the fallowing;
11.20.1 Environmental Review. HQME Funds will not be paid, and costs
cannat be incurred until City has conducted and campleted an environmental review of
the proposed Pzoject site as required under 24 CFR Part 58. The environmental review
may result in a decision to proceed with, modify, or cancel khe project. Fur�her,
Developer will not undertake or commit any funds ta physicai or choice limiting actions,
including property acquisitiort, demalitipn, rnovement, rehabiiitation, conversion, repair
or const�uction prior to the environmental clearance, and any vialation of this provisian
will z•esult in the denial of any funds under this Contract.
11.20.2 Cantract Not Constitutin� Com�nit�nent of Funds or Site A�raval.
Notwithstanding any provisian of this Cant�•act, the Parties agree an.d acknawledge that
this Contract does not constitute a cornrr►itment af fiinds or site approval, and that such
committnent of funds or approval may occur anly upon satisfactory completian of
environmental review and receipt by City of an autharization to use gi•ant funds frain
HUD unde�' 24 CFR Par� 58.
CHDO Contract tivith TCHP far 1300 E. Je etsai�
Page 25 of 33
1 i.20,3 Compliance with the Unifot�rn Relocation Ae�, Developer shall
comply witl� the relocatian require�nents of 24 CFR Part 92.353 and a1� ather applicable
Federal and state laws and city ordin.ances and requirements.
11.20.4 Comptiance with Davis-Bacan. Developer will comply with the
Davis-Bacan Act as described on Exhibit "H" --- Davis Bacon Requirem.ents 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 perfa�xning canstructi4n of the Required Improvements. In additiott, Developer
shall ensure that City will have access ta emplay�es, contractors and subcontractors and
tl�eir employees in order to conduct onsite interviews with laborers and mechanics.
Additianal requirements and forms that should be used to comply with this section are in
the follovving exhibifis: Exhibit "H-1"- Wage Determination; Exhibit "H-2"- Contractor
Information Form; Exhibit "H-3 - Subcantractor Information Fo�-m;; Exhihit "H-4 —
Labor Re�ations Guide; Exhibit "H-5" — Start af Canstruction Form; Exhibit "H-6" —
Constructio� Co�plete Form; Exhibit "H-'�" — EE� �tatement; Exhibit "H-8" — Payroll
Deduction Authar�zation FotYn; and Exhibit "H-9" — Officer Appointment Form
11.20,5 Developer Procurement Standards. Developer shall establish
procurerrteni procedures to ensu�•e tl�at mater�als and services are obtained in a cost
effective manne��. When procuring far services to he provided under this Co��tract,
Developer shall comply at a minimt�m with the nanp�•ofit procurernent standards at 24
CFR Part 84.40 - 84.48.
11.20.6 Cost Principles/Cost Reasonable�ess. Developer shall administer
their use of HOME Funds in compliance with OMB Circular A-122, "Cost Principles for
Nan-Profit Organizations", as amended from time to time. The allowability of costs
i��curreci for perforrnance rendered shall be determi�ed in accordance with OMB Circuiar
A-122, as supplements by the provi�ions of �his Contract.
11.2D.7 Develaper must take the mitigation actions outlined in. Exhibiti ��J"
— Environmental Mitigatian Actian, Failure to complete the �•equired miti�ation actian
is an event of default under this Contract,
12. INDEMNIF�CATION 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 �R SUITS FOR PROPERTY LOSS OR DAMAG� ANDIOR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, 4F WHATSOEVER
KIND OR CHARACTER, 'VVHETHER REAL OR ASSERTED, ARISTNG OUT OF OR
IN CONNECTION WITH THE EXECUTI4N, PERFORMANCE, ATTEMPTED
P�RFORMANCE OR NONPERFORMANCE OF THIS CONTRACT ANDIOR THE
CHDO Contrrrct with TCHP far� 1300 E. J"e erson
Page 2d af 33
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED
HEREIN, WHETHER OR NOT CAUSED IN WHfILE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
C�NTRACTORS OR SUBCONTRACT�RS OF CITY; AND DEVELOPER HEREBY
ASSUM�S ALL LIABILITY AND RESPONSIB�LITY OF CITY AND �TS OFFICERS,
AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS
FOR PROPERTY LOSS OR DAMAGE ANDIOR PERSONAL TNJURY, 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, PERF4RMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS C4NTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE
PROJECT DESCRISED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN
PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACT4RS OR SUBCONTRACTORS OF CITY, DEVELOPER
LIKEWISE COVENANTS AND AGREES TO AND DOE� 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 OMISSTONS 4F DEVELOPER, ITS OFF�CERS,
MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
�NVITEES, LICENSEES, OR PRO.TECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPL4YEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRES� INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE �NDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
C4NSEQUENCES OF CITY'S 4WN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURR�NG CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFF�CERS AND LEGAL REPRESENTAT�VE� 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 IN,iURY, DEATH,
DAMAGE OR LQSS I5 CAi1SED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF �TS CONTRACTORS AND
�UBCONTRACTORS TO INCLUDE �N THEIR CONTRACTS AND SUBCONTRACTS
A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE
SAME F�RM AS ABOVE.
CHDO Co�ttract ivith TCHP.for• 13�0 E. Je efsol�
Page 27 of 33
13. WAIVER OF IMMUNITY BY DEVELOPER
if Developer, as a charitable or nonp�'afit organization, has or elaims an immunity or
exemption (statutary or otherwise} from and against liability for damages ar injury, including
death, to persons or property, Developer hereby expressly waives its rights to plead defensively
such immunity or exemptian as a�ainst City. This section shall noi be canstrued to affect a
�overnmental entity's immunities under constitutianal, statutory or common law.
14. INSURANCE AND BONDING
Developer will maintair� coverage in the foi� of insurance or bond in the amount of
$117,086.00 ta insure against loss from the fraud, theft or dishonesty of any pf 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 areimbursement, such fidelity caverage s1�a11 includ� a rider stating that
reimbursement for any Ioss or lasses shall narne the City as a Loss Payee.
Develaper shali furnish to City, in: a timely manner, �ut not later than 10 days aier the
Effective Date, certificates of insurance as praof that it has secured and paid for policies o�'
commercial insu�•a�ce as speciiied herein, If City has not reeeived such certificates as set forth
herein, Developer shall be in default of the Contract and City may at its aption, terminate the
Contract. �
Such insurance shail covear all insurable risks incident to or in connection with the
executian, performance, attempted perfoz-�ance pr nonperfarmance of this Contract. Developer
shall rr�aintazn, ar r�quire its general cant�•actor to maintain, the follawing caverage and lirr�its
thereof:
Cornmercia� General Liabilit CGL Insurance
$500,000 each occurrence
$1,000,000 aggregate limit
Business Automohile Liabilit Insurance
$1,000,000 each accident on a combined single-limit basis, or
$250,000 Prope��ty Damage
$500,000 Badily Injury per person per occurrence
$2,040,000 Aggregate
Insurance policy si�ali be eudorsed to cover "Any A,uta" defineci as autos awned, hired and
nan-owned. Pending availability of the above coverage and at tl�e discretion of City, the policy
shall t�e the primary respanding insurance paiicy versus a personal auto insurance poliey if ar
when in tl�e course of Developer's business as contracted herein.
CFIDO Corrtract �a=ith TCHP foj• 1300 E. Je ffe��sor�
Page 2S of 33
Wo r�Cers' Com�ensation Insurance
Part A: Sfatutary Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-palicy limit
Note: Such ins�t'ance shali cover emplayees perfarrning work on any and all prajeets
including but not limited ta construction, demolition, and rehabilitation. Developer oar i�s
cantractors shali mai�itain coverage, if applicable. In the event the respective contractars
do nat maintain caverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Rec�u�rements
Such insurance amounts shall be revised upward at City's reasonabie option and no mare
fiequently than once every 12 months, and Developer shall revise such amounts within 30 days
following natice to Deveiaper of such requirements.
Developer will su�mit to City documentation that it, and its �eneral canfractor, has obtained
insurance covei•age and has executed bonds as required in this Cantract prior to payment af any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may ap�ear. Additionai insured paz�ties shall include employees,
officers, agents, and volunteers af City.
The Workers' Campensation Insurance policy shall be endarsed to include a waiver of
subrogation, also referred to as a vwaiver of rights of recovery, in favor of City.
Any failure an par�t of City to request ce��tificate(s) of insurance sha11 nat be construed as a
waiver of sucl� requir�ment or as a waiver af the insurance requireznents themselves.
Insurecs of Developer's insurance policies s�all be licensed ta do business in t�e state of Texas
by th� Department of Insurance or be otherwise eligible and authorized to da business in the state
ofTe�as. Insurers shall be acceptable to City insofar as their �inancial strength and sol�e�cy and
each such company shall have a cu��'ent minimutn A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurat�ce indust�•y standard rating otherwise approved by City.
Deductible limits on insu�•ance policies s�all nat exceed $5,000 per occurre�nce unless otherwise
approved by City.
In. the event there are any locai, %deral or other regulatory insurance or bonding requirements far
tl�e project, and such requirements exceed those specified herein, the former shali prevail.
CHDO Contract ivitlt TCHP, far 1300 E. Jefferson
Page 29 of 33 �
Developer shall require its contractors to maintain applicable insurance covera�e, limits, and
other insurance requirements as those specified herein; and, Developer shall require its
contractors to pro�vide Developer with certificate{s) of insurance documenting such co�erage.
Also, Developer sl�all require its contractors to �ave City and Developer endorsed as additional
ins�areds (as their interest may appear} on their respecti�e i�surance policies.
Directors and Officers Liability coverage shall be in force and may be provided on a claim rt�ade
basis. This covera�e may aiso be referred to as Management Liability, and shall pratect the
insured against claims arising aut of alleged errors in judgment, breaches of duty anci wrong�ul
acts arising out of their organizatianal duties. Coverage shall pratect not anly the entity, bt�t all
past, present and future directors, officers, t�`ustees, employees, volunteers and committee
�nerr�bers.
Deveioper shall require its builder to maintain builders risk insurance at the value of the
canstruction unless covered by the Developer.
15. CERTIFICATION REGARDING LOBBYING
The und�rsigned representative of Developer hereby certifies, ta the best of his or her
knowledge and belief, that:
Na �ederal appropriated fi�nds have been paid or vvill be paid, by or on bek�alf o� _
Developer, ta any person for influencing or attempting to influence an afficer or
�mplayee af any agency, a me�nber of Congress, an of�cer or employee of
Congress in connection with the awarding of any Fede�•al contract, the making of
any Fed�ral �rant, the making of any Federal loan, the entering into of any
cooperati�re agreement and the extensian, continuatian, renewal, amendment, or
madification af any Federal cont�•act, grat�t, loan or coope�•ative agreennent.
If any funds ot��.ec than federally appropriated fiinds have be�n paid or will be paid
to any person for influencing or attempiing to influence an officer or employee of
any agency, member of Cangress in connection with this Federal cantract, grant,
loan or cooperative agreement, Dev�loper shall complete and submit Standard
�`orm-LLL, "Disc(osure Form to Repa�� Lobbying," under its instiuctions.
This certificatian is a material representatian of fact upon which reliance was
placed when this Cpntract was made or entezed in�o. Submission of this
certificate is a prer•equisite for tnaking o�• entering into tk�is Contract imposed by
31 U.S.C. 5ection 1352. Any person who fails to file the required certification
sl�all be subject to a civil penaity of not less than $10,000.00 and nat more than
$100,000A� far each such failure.
CHDO Cnf�tj•act witlr TCHPfor� 1300 E. Je�ersora
P�ge 30 of 33
Developer shall require that the language of this certificatian be included in all
subcontracts or• agt'eements involving the expenditure ai Federal funds.
16. LITIGATION AND CLAIMS
Developer shall give City immediate notice in writing of any action, irtcluding any
proceeding before an adminiskrative agency, filed against DeveIoper in canjunction with this
Contract or the project. Developer shall fi►rnish immediately to City copies of all pertinent
papers reeeived by Developer with respect to such. actian or claim. Developer sl�all provide a
notice to City within 10 days upnn filing under any bankz-uptcy a�' financial insolvency pro�isian
of law.
1'7. N�TICE
All notices rec�uired or permitted by this Contract must be in writing and are deemed
delivered on the earlier date of the date actually received or the thi�•d day following (i) deposit in
a United States Postai Service post ofFice or receptacle; {ii) with proper postage, cei�ified mail
z'eturn r�ceipt �•equested; and (iii} addressed to the other Party at the address set out below or at
such other address as the receiving Party designates by proper notice to the sending Party.
Citv
City Manager's Office
l Op0 Thrackmorton Street
Fart Worth, TX 76102
Copy to:
City Attoz-zaey's Office
1000 Throckmortan Street
Fort Worth, TX 76102
Copy to:
Director of Ha�sing and Economic Develapment
I000 Throckmiorton Street
Fort Worth, TX 76102
Pzesident of Ta��rant Countv Housing Partnership, Inc.
3204 Collinsworth 5treet
Fort Woz�h, TX 76107
18. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT
Developer represents tha� it possesses the legal autharity, pursuant ta any proper,
appropriate and official motion, resolution or action passed or taken, to enter in#o this Contract
and to perfarrn the responsibilities herein required.
CHDO Cont�•act tivitlt TCHP fof• 1300 E, Jef�"e1•,san
Pcrge 3l of33
19. COUNTERPARTS
This Cantract may be execu�ed in multiple counterparts, each of which will be deemed an
original, but which together will constitute one instrument.
IN WITNESS WHEREOF th Parties h�reto have executed this Contract in Fort
Worth, Tarrant County, Texas, this;��da�of ,�`], ��--�----- _, 2413.
ATTEST:
�
�
F FORT WORTH
City �ec�•etary '` ..Y � J �..) �'�� � �1
M&C; � �� ��opO�44�o��
Date: l �����X� ��
�-a 31 1��e : 3/a�la-���
APPROVED AS TO TORM AND LEGALITY:
<<�t:' �' , � L� �
, �,
°Assistant Ciiy Attor ey
ndo Cost Assi tant City Manager
�3
TARRANT COUNTY HOUSING
PARTNERSHIP, INC.
By�
Do a Van ess, Pr ' nt
Date: 5IIoIl3
(�F�tCIAL RE�ORD
CHDO C�»rtr«ct r��rtlt TCHP for 1300 E. Jef�erso�i �!�„� ��C�����Y
Yage 32 o f 33
�T. WOR'�a#, T]�
Exhibits:
Exhibit "A" — Project Summary / Scape of Work
Exhibit "A� 1"- Final Elevations and Proposed Plans and Specifications
Exhibit "A-2"- Legal Descriptian
Exhibit "B" — Project Schedule
Exhibit "C" -� Bud�et
Exhibit "D" — Audit Certification Form and Audit Requii•ements
Exhibit "E-1" — Invoice
Exhibit "E-2" — Detailed Statement of Costs
Exhibirt "E-3" — Client Data Report
Exhibit "F"- Standard af Backup Documentatian
Exhibit "G" — 24 CFR Part 92 Subpa�� F— Project Requirements
Exhibit "H" — Davis Bacon Requi�•enr�e�ts
Exhibit "H-1"- Wage Decision
Exhibit "H-2"- Cnntractor Information Form
Exhibit "H-3 - Subcontractar Iilformation Form
Exhibit "H-4 — Labar Relations Guide
Exhibit "H-5" — Start of Construction Form
Exhii�it "H-b" -� Const�-uctian Complete Fornrz
Exhibit "H-7" — EEO Statement
Exhibit "H-8" — Payro�l Deduction Authorization �'orm
Exhibit "H-9" — Of�icer Appointment Form
Exhibit "I"- Deed af Trusk Fozm
Exhibit "J"- Environmental Mitigatian Action {Not Applicable)
Exhibit "K"- Section 3 Reporting Requirements
CHDO Colttract i��itft TCHP_for� 1300 E. Je,�ferson
Pa�;e 33 of 33
EXHIBIT "A"
PR4JECT SUMMARY - SCOPE OF WORK
1300 E, JEFFERSON
DESCRYPTION:
Deveioper will canstruct a 1376 square £oat, 3 bedroom and 2 bathroom single-family home on a lni
size of approximately b,0�0 square feet. Constructian vcrill include a one car detached garage. �encing
will be located at the rear and side ya�•ds. Landscaping will include front yard.
The construction shall contain the following accessibility requirements
The fallawing appliances and related am�nities will be included in the sale of the house:
• Ceiling Fan{s} in 3 BR, 1 LR.
• Wash�r and Dryer hookups
• Central Air Canditioning
• Stove
• Dishwasher
• Vent-a-hoad
• Garba�e Disposal
• Electric Garage Doar with Remote
• Mailbox located at daor
The following materials shall be used for the construction of the Required Improvernents
• Appliances included with the sale
• Fence (back yard)
• Landscaping {front}
• Raofing Mat�rials 3 TAB 25 YR
• Siding (percentage) 100%
+ Faundation Type Pos� Tensian
• HVAC I S Seer Heat Pump
• (the "Project"}.
("N!l(1 Fimrlc _ FYhil4itc
EXHIBIT "A-1"
FINAL ELEVAT�ONS AND PROPOSED PLANS AND SPEC�F�CATIONS
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EXHIBIT "A-2"
LEGAL DESCR�PTION
Highland Park Addit�on -� Ft Wth Blk 52 Lo� 1
CHDO Fu�lds - E�liibits
EXHIBIT "B"
PROJECT AND REIMBURSEMENT SCHEDULE
1300 E. Jefferson
P�iase Acti�ity Begi�niug Weelc — s►r�iject to
rveatlRe�• e���nittiv
PHASE I ACTIVITIES: Contract signeci May 13
Lot Acqttisitiot�/ Pre�a�'ation May 20
(Demolitio�i}
A.ugust 12
Plttmhi�ig
.r�ugnst i9
�'ot�ndation
PHASE I DEADLINE:
Au i�st 23 15t Pay�ne�it $36,48G
PHASE II ACTIVIITES: Fra►ni��g August 26
Roofing Septe�nber 2
Insuitation Septembet• 9
Sidi�ig / Bz•ick Septetnber 16
Top-out PlErmbi��g, �lectrical, HVAC Septamber 23
PHASE li DEADLINE: Ze��� PRyEliBllt $38,500
October 4
P�-�ASE III ACTNIITES: Sheetcack, Ta�eBed/TeYtu�•e/Trim-out October '�
Paint October 2l
Cabi��ets, Counte�•taps October 28
HVAC, Plumbing, Elect�•ical, Finish- Nove�nbec �1
Out
PHASE III DEADLINE: 3rE� Payme�it �?.8y5Q0
November 8
PHASE IV ACTIV IITES; Landscape, Pavir�g Nov�tnber 11
F�ppl'iIlg November 1$
�1,ppliances, I11i0YlOI'tE'11T1—OL1�If1I11Sil Novembe��25
PHASE N DEADLINE: Ca��st�•uctiaE► Fi��al Paymeni $I3,G00
Nove�nber 29
CONSTRUCTION TOTAL �����aS�
DEVFLOPER FE� Paid at tiine of i�ome sale to HOME $�.1,7a$
Eligibie B�� er
*D�veloper will be rei�nbursed for eiigible expenses ot�ly. Tlxe amotints ai•e esti�nates and at•e subject to
change.
C;.F�II(] E't«ids �� EYI�€l�i€s
Exhib�� C
Budget
BUDGET —1300 E. JefEersor�
Total Cost: $ _117,08G
Projec� HOME Funds Awarded: $_117,086
Operating Funcis Awarded: $ _
T�TAL AWARDED �UNDS: $_117,086
* Please note #hat al! funding will made on a reimbursable basis only,
De�elopment Budget
Use of Funds Source nf Funds
Predevelopment Cast HOME $ OTHER $ SOURCES OF TOTAL $
FIJNDS OTHER FUNDS F'UNDS
f�? tZi f Names) {�t+z)
1. Market Stud
2. Feasi6ility (ie: preliminary work
write-u , cost estimates, desi n
3. Other
Total Predevelopment Cast {1*2=3}
Development Cost �
4. Land andlor building acquisition 2,286 2,186
5. Site Preparation 3,1Q0 3,1�0
6. Consiruction Cost 99,200 99,200
7. Fence 4,3�0 4,300
8. L.andscape 2,�00 2,100
9. Coniingency
10. Appraisal 475 Proceeds of Sale 475
11. Arc�itect & Er�ginaering Fees �,500 2,500
12. Construction Management �ee
13. Consiruction Loan Interest
'f4. Properfy Sur�ey 500 ���
15. Legai F�es �50 Proceeds of Sale 2SQ
16. Real Estate Fees 4,580 Proceeds of 5a{e 4,680
17. Utiiity Hookuplimpaet Fees 3,200 3,200
18. Title & Recording Fees 78Q Praceeds af Sale 780
19. Program Related Expenses 6,250 CHDO Operating Funds 6,250
2Q. Construction Management
21, Bond Fees
7otal Development Cost (Total of �1�,086 12g,5z1
items 4 — 21 }
Total Project Cost 117,086 12,435 129,521
(`F-ff](1Fiir��c .Fvhihitc
EXH�B�T "D"
AUDIT REQUIREMENTS
• Pages 1-2: S�mmary of Audit Requiremenks
• Page 3: Single Audit Report Checklist
• Page 4: Audit Certification Form
('1-�Tl(1 �t�nrlc , F'vliihitc
CITY OF FORT WORTH HOUS�NG AND ECONOMIC DEVELOPMENT DEPARTMENT
AUDIT REQUIREMENTS
Organizations expending $500,000 or rzaore in federal awards (from City of Fart Worth and ather fund�ng
sources) during their fiscal years shall abtain either an annual single audit ar a program specific audit.
4rganizatians may have a progra�n specific audit in accordance with OMB Circular A-133, or other standard
set forth in the Contraet if appiicabie, i� they exp�nded funds for anly one federal program as listed in the
Catalog of Federal Dornestic Assistance (CFDA}. I� funds are spent for more tl�an one federal prog�•am, a
single audit is required. The audited time period is the organization's fiscai year, and not the City of For•t
Worth.'s funding period.
The audit shall be conducted hy a cei-tified public accountant (CPA) that is ]zcensed at the time of the audit
by tl�e apprapriate regulatoary bady. The CPA shali mee� all of the general standards concerning
qual�ficatiflns, ind�pendence, due professional care and quality control as required by Goyfernlrrent Atrditir7g
Standards, including the requirements for continuing professional education and external peet' reviews.
Auditor selection xanust adhere to federal procurement requiretnents.
A separate supplementary schedule o� revenues, expenditures and changes in fund balance for each City
af �art Warth cantract is no ionger required. The Schedule of Expenditures of Federal Awards should list
City af Fort Worth 's contract numbers, t�e total expended for each individual federal program, and fhe
CFDA number (OMB A-133 § .310).
The i�dependent auditor's report should inciude all of t�e relevant items listed an the "Audit Report
Checklist." Additional guidance on the cond�ct and reporting of these audits is contained in the latest issuance
of the following publications:
Go��e1•nme��t Airditing Standards issued by the Comptrolier General oi the United States, 2003
OMB Circular A-133 as revised b/3�197 and amended June 2Q03
OMB Circuiar A-133 Compliance Supplement
AICPA's �tatement af Position 98-3, "Audits of States, Local Governments, and Not-for-Profit Organizations
Receiving Federal Awards"
Various AICPA aud�t guid�s for nonprofits, eolleges and universities and health and welfare organizations
AICPA's Audit Risk Alert "State and Local Gove��unental Developments"
Government Acrditing Standarc�s by the Texas Depar�tment af Hotrsing aa�d Commzrnity Affail�s for• Proper•ties
Receiving Low Income Hoi�sing Tax Cs•edits
All organizations that receive a City oi Fa�`� Worth award must submit the provided Audit Certification Form
which certifies whether you are sub�ect to a single/program audit. 4rganizations receiving federal avcrard�
from the City of Fo�� Worth who are not �•equired ta have an audit shall certify in writin� to tk�e agency.
The organization's Chief Executive Off cer or Chief Financial Officer shall make t�e certification within
60 days of the end of the organizatian's fiscal year in the year that the project was campleted.
The foilowing ite�ns should be subrnitted to th� City of Fort Woz•kh Housing and Economic Developm�nt
Depai�tment witk�in the required timefranne:
D�e 60 da s after or anization's fiscal ear end in the ear that the ro'ect was com leted: re uired for all
subrecipients)
Completed Audit Certification Form
('Nil(l F�in�lc _ F'v{iihitc
Due within the earlier of 30 days after receipt of the auditor's report or ni�e months after the end of the audit
ep riad•
Twa copies of th.e entire audit repart issued by the CF'A
Two copies of any manage�ent letter issued by the CPA in conjunction with the audit repart
Two copies of management's can�ments on all findings, recommendations, & ques�ioned
casts contained in the audit report and management lettear, including a detailed carrective
action plan
Failure to submit any of these items by the required due date may �•esult in holds on current draw
requests, suspension of the arganization's contract(s) and �ligibility for future funding, �
If the organization does not meet the arequirements of havin� a single/program audit canducted, recazds
must stiil be kept available for review or audit by City af Fort VLrorth s�aff (4MB A-133 Subpart B Sec 200(d}.
If additionai infarmation is needed concerning the audit requirements, please call ($17) 392-6141.
(`I Ill(1 Fi�nrlc _ Fxhihitc
CITY OF F4RT WORTH
HOUSING AND ECONOMIC DEVEL�PMENT DEPARTMENT
SINGLE AUDIT REP�RT CHECICLIST
The Department developed this checklist to help organizations improve the quality and completeness of
audit repo��ts.
General Purpose or Basic Financial Statements of the 4rganization Opiniot�/Report on Organization`s Financial
Statements in accordance with Gaver�j�rrient Aarditing Stafzdards
Notes ta the General Puzpose or Basic Financial Stateaments of the Organization
A Schedule of Ex�enditures of Federal Awa�•ds, including the Department's contract numbers, the to�al
expended far the federal program, ar�d the CFDA number (OMB A-133 S�tbpart C Sec 310).
OpinionlReport on Sehedule oF Expenditures of �ederal and State Awards
Report on Complianee and on Inteinals Control �ver Financial Repoi�tin�Based on an Audit of Financial
State�nents Performed in Accordance With Gavernment Acrditing Standards. (4MB A-133 § 505 (b})
Re ort an Com liance with Re uizements Applicable to Each Majar Program and Internal Contro� o�er
Compliance in Accordance with OMB Circular A-133, (OMB A-133 § SOS {c)}
Schedule of Findings and Questioned Costs (OMB A-133 §. SOSd), including: Sum�r►ary Schedule af Prior Audit
Findin�� repo�•ting the status of all �'indings included in the prior audit's schedule of findings and questioned
casts. (OMB A-133 Sec. 315 (a) and (b))
Carrective Actian Plan including (OMB A-133 Sec. 315 {c}) name of person respansible for the corrective
action, corrective acYion plar�tied, anticipated completion date, and explanatioz� and reason if auditee
does nat agree with fin.d'zngs or believes correcfion zs nat required.
AIl reports are signed and dated by the auditor
Two copies of the audit reports are submitted
Two copies of the management letter, if issued �n con�unction with the audit �'eport. Two copies of
comments by managament concerning all fndings and recoxr�xzaendatians included in
rrianagement letter, including a correctxve ae�ion plan.
f N�l(l Fiinrlc . Pvliihitc
CITY �F FORT WORTH HOUSING AND ECON4MIC DEVELOPMENT DEPARTMENT
Audit Certification Form
Subrecipienk: _Tai�rant County Housing Partnership, Inc. Fiscal Year Ending: _9_/30_/13
Month Day Year
� We have exceeded the federal expenditure tl�reshold of $500,400. We will have our Single Audit or
Program Specific Audit co�npleted and will submit the audit report within nine {9) months after the end of the
audited iiscal year.
❑ We did not exce�d th� $500,000 federal expenditure threshold required for a Single Audit or a 1'rogram
Specific Audit ta be perfarmed this fiscal y�ar. (Fill out scherlc�le belotiv)
Must be frlled oart if Single Audit or Program Audit is not reqarired:
Federal Expenditur� Disclosure
Federal Funds
Pass Tl�rough
Fcderal Grantor Grantor
Program Name & Contract
CFDA Num6er Number
�xpenditul'�5
Total Federal Experrditures,for this Fiscal Year
Don� VanNess
Printe
ut ri nakur Must be FO, CEO o equivalent)
�
President
� Title (Must be CFO, CEO or equi�alent)
817-924-5091
Pltone Number
S/l01l3
Data
Failure to submit this ar a similar statement or failure to subrr�it a completed single audit package as
described in the audit requirements by the required dne date will result in suspension of fundin� and will affect
eligibility for future funding,
Subntit t1�ts foru� to 11te City of Fort YYorth I�ousijrg arad Ecortorrric Developl��ei�t Depal�bfre�tt ivithirr 60 �Inys crfter tlie e�id of yot«•
Fiscal year
C'1lTlfl Fnnrlc _ Fvhihihc
Exhibi� E-1
i�v�oic�
CHDO: Tarranf County Housing Partnershi , Inc.
Project Site Address: 1300 E, Jefferson Ave,, Fort Worth, TX 76104
Period of Service:
Program Amount
This In�oice ' Cumulati�e to Date '
CHDO Certi�ication: I ce�tify that the costs incurred are �alid and
cons�stent with the terms and conditions of the contract between City and
CHD� By signing this invoice, I certify tha� to the best of my knowledge
and belie�f the data inc�uded in this report, Exhibit G, and in all backup
documentation is true and accura�e. lt is acknowledged ihat the provision
of fa�se information could lea�e �he certifying official subject to the
penai�ies of federal, state, and loca� law.
Signature and Date;
Name;
Title:
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EXHIBIT "F"
STANDARD OF BACKUP DOCUMENTATION
Fo�TWoRTHo
Standard of Documentat�on for Reimbursement of De�elopmen� Costs
Cost Ty�e Documentation Standard
Acquisition of Vacant Lots • Notice to Seiler (date rr�ust be on or before the date of options agreement
ar sales contract and signed by the buyer and seller)
• Recordec{ Deed of TruSt
• Purchase Agreement w/ R�qufred HUD language
• Master Settlement Statement
• Appraisal or other document used to determine purchase price
• Proof of Payment (banfc statement/cancelled check)
5oft Costs (Architect, Engineer, • In�oice
Landscaping, Sur�eys, Appraisals, - Invoice should include:
Environmental, Legal ��es, Other date;
Co�sulta�ts, Etc.J campany's letterhead;
address for which service is �ro�ided;
description of service(s) and item(s);
amount for it�mized services; and
total arr�ount
� Proaf af gaym�nt (ie. bank statement or cancelled check)
• If applicable, fully executed contract/service agreements and applicable
amendments
- Provide printout from www.sam,�ov veri#ying
contractor/subcontractor is not listed on the debarred and
suspension list
• lf only a portion is being paid with City funds, then show calculation and
dacumentation of how costs are allocated.
CHDO Operating/Praject Delivery • I��oice
Expenses - Invoice should include:
date;
company's letterhead;
address for which service is pro�ided;
ciescription of ser�ice(s] and item(s);
amount for it�mized services; and
total amount
• Proo# of Payment (i.�. bank statement or cancelled check)
� 7imesheet(s) Signed by Employee and Supervisor
• Activity Log(s) Signed by �mployee and Supervisor
• Pay Period Dates Should be Reflected
• If paying for rent ar contract services, copy of executed agreernents
• If anly a portion is being paid with City funds, then show calculation and
documentation of how casts are allocated.
Ha�ising and Ecoiiomic Developme�at
FINAL as of �4/24/2Q13 Fage 1
FORT �VORT Ho
Standard of Documentation fo� Reimbursement of De�elopment Costs
Construction Costs (Contractors & • Invaice
Subcontractorsj - ln�oice should include:
date;
company's letterhead;
address #ar which ser�ice is pro�ided;
description of service(s) and itemSs);
amount for itemized services; and
total amount
� Proof af Payment (i.e. banfc statement or cancelled checkJ
• Timesheet(sj Signed by Employee and 5upervisor
- Activity Sheet(s) 5igned by Employee and 5uperv�sor
- Pay Period Dates Should be Reflected
• Copy of applicable inspection report(s) conducted by HED Inspectar
• Copy of executed agreements
- Provide printout from www.sam.�ov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• if only a portion is being paid witl� 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 De�eloper • Invoice
- Invoice should include:
date;
company's letterhead;
address where material5 will be used;
description of service(s) and item{sj;
cost by quantity; and
total amount
• Proaf af Payment (i.e. bank statement or cancelled check)
De�eloper Fee • Final Invaice Reflecting Total Development Cost
+ Proof of payment for any other entity contributing to development costs.
• Show calcula�ion of agreeci upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
� Complete bocumentation required in contract for home/unit produced
(i.e. incor�e docs for eligible homebuyer, sales contract between
de�eloper/homebuyer, HAP Qeed of jrust w/ requir�d affardability period
language, etc)
Housing and Ecanomic DevelopmenC
FIIVAL as of �/24/2013 page Z
EXHIB�T "F"
STANDARD OF BACKUP DOCUM�NTATION
F�RTWORTHa
Standard of Documentatior� for Reimbursement of De�elopment Costs
Cost Type Documentation Standard
Acquisition af Vacant Lots • Notice to Seller (date must be on or k�efore 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 Settiement 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:
En�ironmental, Legal Fees, Other date;
Consultants, Etc.) company's letterhead;
address far which ser�ice is provided;
description of servic�(s] and item�s);
amounC for itemized ser�ices; and
total amount
• Proof of Payment (ie. bank statement or cancelled check)
• if applicable, fully executed contract/service agreements and applica�le
amendt�r�ents
- Provide printout from www.sam.�ov veri#ying
contractor/subcontractor is not listed on the debarred and
suspensian list
� If only a portion is being paid with City funds, then show calculation and
documentation of haw cosCs are allocated.
CHDO O�erating/Project Delivery • invoice
Expenses - Invoice should include:
date;
company's I�tterhead;
address for which service is pro�ided;
description of ser�iceSs) and item{s);
amount for itemized ser�ices; and
total amount
• Proof of Payment �i.e. bank statement or cancelled ch�ck)
• Timesheet(s) Signed by Emplayee and Supervisor
• Activity Log(s) Signed by Emplayee and Supervisor
• Pay Period Dates Should be Reflected
• lf paying for rent or contract ser�ices, copy of executed agreements
• If only a port+on is being paid with City funds, then show calculation and
documentation of how costs are allocated.
Housing attd �canomic Development
FINAL as of 4/24/20�.3 Page 1
F�RTWORTHa
Standard of Documentation for Reimbursement of De�elopment Costs
Construction CoSts (Contractors & • ln�oice
Subcontractors) - Invoice should include:
date;
company's letterhead;
address for which ser�ice is pro�ided;
c�escription of service(s] and item(s);
amount for itemized services; and
total amount
� Proof of Payment (i.e. bank statement or cancelled checkJ
• Timesheet(s] Signed by Employee and Supervisor
- Activity 5heet(s) Signed by Employee and Supervisor
- Pay Period Dates Should be Re#lected
• Copy of applicable inspection report(s) conducted by HED Inspector
• Copy of executed agreements
- Provide printout from www.sam.�ov verifying
contractor/subcontractor is not listed on the debarred and
suspension list
• I� only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocatecf.
� For retainage for the prir�e contractor, lien wai�ers for the prime and all
subcontractors.
Materials Purchased by Developer • Invoice
- Invoice should include:
date;
company's letterhead;
address where materials will 6e 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 lnvoice Reflecting Total De�elopment Cost
� Proof of payment for any other entity contributing to development costs.
• Show calculation of agreed upon develo�er fee percentage
• Copies of final lien releases frorn contractor/subcontractor
+ Complete DocumenCation required in contract #or home/unit produced
(i.e. income docs for eligible homebuyer, sales contract between
de�eloper/homebuyer, HAP Deed of irust w/ required affordability period
language, etc)
Housing and �canamic Development
FINAL as of 4/24/20�.3 Page 2
EYHISIT "G"
24 CF�t PAItT 92 SUE3C'�RT F- PROJECT REQUIItEyIENTS
t�va-yeac m�Ech rec�uction period in accordacice tivitfi the provisions of para�;raph
(��}(3} of this section.
b. Redtrction of match far particrpallttg jrrrrsclicirnrts in discrsler areas. tf � p�trticipating
j�ii•isdiction is located in 1n ar�a in whict� a decE�r�tion of major disaster �ursua�fc to the
Robert T. Stafford Disaster Etelief �rtd Emerget�cy Assistance Act is made, it may requ�st
a reduction nf its matching reqciirement. For a Eocal participatir�g jurisctiction, the F�UD
Field office m�y reduce the matching req�iirement specified in � 92.21 S by �ip tn 100
percerlt fac thc fisc�l ye�r in �vl;ich thc decl�r�tion of major disaster is m�ede aczd the
Following iiscal year. For � St�te �artieipating jurisdiction, the HUD Field off�ce may
redtEce the m3tching requirement speci�ed in § 92.21 S, by Eip to 100 percent for the
�'iscal year in which the clecl�ratian of �najor cfis�ster is made and the fa�lawing fiscai
yenr wit� respect to any HOME fiinds expended in an area to wl�ich the declaration of a
rnljar disaster applies. At its discretion and t�pon request oF the participatitig j��risdictioti,
the HUD Fielc! OfFice may extend the i•eduecion for ar� adciitionai ye�r,
SUBPART F — PRQJECT REQUIRENIENTS
§ 92.250 Maxim�am Per-�nit Subsidy Amount and Subsidy �ayering
a. �Ltr�,ritnttm per-trnit subsirly amount. 'The tatal amount oF F{OM� tiuicis and ADDI funds
that a partici��ting jt�risdiction may invest on a per-unit basis in aFFordable hnusing rn�y
not exceed the per-unit doll�r limitations establish�d under section 22l(cf){3)(ii) of ttte
National �fousing Act {12 U.S.C. l71 S I(d)(3)(ii)} for elevator-ty�e projects thlt �tpply ta
the �trea iti which the hoi�sing is located. These limits �re availlbie from the Multifamily
Divisian in the E-iUD Field OFfice. [Fthe participating jurisdiction's per-�init subsidy
<lmount has a!z•eacly 6een inereased ko 2( 0% �s pecrr�itted uncler scctioi� 22 I(d)(3){ii} of
kh� National Hot�sing Act, upon request to the Fielc� O£Fce, EIUD will nllaw the p�r-�init
subsidy �uttotint to be incce�sed on a program-wide b�tsis to an �tmotittt, up to 2�0% of the
original per �init iimits.
�Si�h,ridy Icayering. BeFore coinmitting #'ittids ta 1 project, the participlting jurisd�etion
�nust eval��ate the project in accordance wiEh guidefines th�t iE h1s adopted Far this
pui•pase �nd �vill not invest �irty more I fONtE Funds, I�l Cdf1ll]ltliltl0[l WECiI O�EIBC
�;overr�menk��i assistance, than is necessary to pravicle affordabie housin�.
§ 92.25� Prop�rty Star�dards
ti.
[{oeisin� khat is coijstrtictcd c�r rchabilitated �vitft HUNlE', Il![1CIS ITlLkSt 1110E',L a!1
a�plic��bl� locai cocles, rehabilitatiori statticlnrcls, orc�irtat�ces, At1CI "I.[}131[l� C)CC�k[liltlC�.S
at the time oFproject cornpletiorl, cxeept �is prc��Fded ii� paragraph (b) c�F;�iis
scction. "fhe particip�itingjurisdiction mt�st Il��ve wi•ittcn sta�lcEa;t•ds Far re}��bilit�tiort
t��at e«sui-e th��t F[O��tE-�ssistecf housing is c�ecerzt, saf'e, �nci sanit�try. Itt tlle i1b5CE1CC
of a loc��i code for rlcw ccrostri�ction ar rcl�abilitation, I iOVIG��ssistccf r�ew
cansEruct�nr� ar rehs�l�ilit�tion must ineet, <�s applicabi�: o�te of three tnoclel cacles
(E1c�i#«rm E3E�ifdic�g Cocic (IC130), Vatiort��l [3��ilc3inb Cocic (E30Cr�), St�ir�clarcf
45
(Soi�tk�ern) E3uilcling Coc9e (SE3CCI)); a�• tl�e Council of American Building OFi"ici�ls
(CA130} one ar two f�mily cade; or th� Mini�num Propc;rty Standards (NIPS} in 2�
CFR 200.925 or 200.926. To avoid c�uplicative ioispections wher� FHA financir�g is
irl�olved i�� a HOi�t�-�ssisted property, a participating jurisdiction may rcly or� a
�tinimum �'ra�erty Standards (1�t�S} inspection performed by a qualitied person.
N�:�vly constrEicted housinb miist �neet the current edition ofthe Niocfei E�iergy Cocie
published by the Councii of Anjeric�n f3ui�ding Ofticials.
2. f111 other F(OMF-assisted liaiisit�g (e.g., acq�i'tsitian) m��st meet �tll applic��ble State
ai�d local ho�tsing q�iality stand�rds �nd cacle rec�uirements anc� if thece i1C� Il0 5llCll
standards or cocie rcc�tiirecnents, the housing must meet the housing q���lity
st�i�d�erds in 2� CFR 932.�Ot,
Tl3e 1lousii�g rnust meet the �ccessibility rec�uirernents at 2� CF R part S, �vhich
implements 5ection 504 of the Rehlbi[it�tian Act of 1973 (29 U.S.C. 7��) anci
co�ered mi�ItiF�mily ctwellings, �s cieti�ed at 2� CFR I00.201, �n�jst also rneet tl�e
clesi�;n and constr�iction ��eq�iirements at 24 CF'R I �0.205, �vhich implement the C�ir
�iousin� flct (42 U.S.C. 3601-36 [9},
4. Canstr�icti�n of �II manufactured ho�ising rnust �neet the �tan��factured Hom�
ConstrEiction and Safety Standards estabiished in 2� CFR P�rt 3280, These
st�ndards pre-empt State arlc� faea! codes co�erirtg the s�tme as�ects of p�;rform�ttce
t��r such i�ousin�;. Participating jtirisc3ictions providing HOtiIE assistance to install
m��nixfactu�•c�d housing units must comply �vit}� applic�ib[e St�te illlC{ IOC<EI C1tiV5 Of•
cocles. In the �tbsence of s�ich [��vs or codes, tlle participating ji�risdictioci �ttttst
comply with tf�e manEifacti�rer's writter� instr��ctions for inst�llation ofman�tt��tckurec!
�10LISii1� Lllllt5. ��3ill{fackureci hausing thzt is reltabilitated ttsii�g HONiE futids mi�st
�zieek t}ie rcquirernents set out in ���rlgr�ph {a}( I} oFthis section,
The t��llo�ving rec�ui�•ements apply ko hausin� for homeawnership that is to be
rehabilitated afteE• t�•ailsfer c�t'the ownership interest:
E3ef'ore the tr�tnsfer of'the Ilorneownc;rship interest, clte p�irticipatit��; jtirisdictic�«
Erlttst:
i. Ictispect tf�e I�c}using for any clefects that E3ose a clailge;r tc� l�e��lkh; �lI1C�
ii. Notif'y the �rospcc#ive pttrcE���s�r c�t't}�e woi•k necc�eci ta cure th�: defects ancf tl�e
tiri�e by whic}� cietects itnist he c�irccl �irad a�plicable pc•ope:rty st��ndarcls rnet.
2. I�1[', IlO1ISli1� tllllS� hC f'rce fr{�m all riotecl health ��nd satery cicFects before c�ccti�ancy
�►itcl rtot 14iter i�ian Ci �r�oi�tE�s �itier tk�e t�•ar�sfcr.
I�he 1�ousin� ir��,st r�3eet t��c property st<it1C{t�rtls in �<�ragr�iplt (a}( I) ot tl�is sectior� nc�t
latcr tlia�l 2 ye��t•s 2tIlCC ll'�1I15fCC {)f lllt'. L)IVflt',CSlllp E�f��CCSI.
An c�tvi�er of�rentFii I30USE{3� t15515{C(I 4VEl}� Hi)I��E� IU[1(IS tTl!!S[ Ili�fflt�ilfl ti1C �1U115111� ill
cc�mpli.�ncc �vitli a!1 ;ipplicai�lc St�ikc 4�ncl iocal lio��sin� qrit►lity stanclarcls and cc�de
rcqtjireitler�ts anci if thcre fll�t' Il0 SUCII Sl�icid��rcis e�r cocic rec�i�i��emer�ts, tiie huusin� iti��st
Ii1Ct'[ II3l; }lOt1Si{l� c�ll�lllty �ia��clarcJs in 2�i CI� lt 982.-t0 �.
��6
d. Ail ho��sing occupied by t�nants receiving E-iOME tei�ant-bnseci renta! assistance rn��st
irteet the hat�sing c{��ality standards in 24 C�'R 982.�1Ot.
� 92.252 Quaii�ication as Affordable Housing: Rental Housing
"CE�e HOME-assisted units in a rental ilo«sing project must be occupied onty 6y householcls
that nre eligible as !ow-income families and musE meet the failawing rec}�xirements to qu�lify
rts affordable hflusing. The afford�bility requirements also apply to the HOME-assisted non-
o�vner-occupied units in single-fa�nily ho�ising purchased wit� FIONiE fiinds in �ccnrdance
�vith § 92.254.
n. Rent Irmitatiorr. �-(UD prnvicies the fotiawing ma�imurt� HpME rent li�nits. The
in�Yiinum HONi� rents are the tesser of:
l. The fair rnarket rent far existing ho�ising For comparabfe t�nits in thc a�•ea as
established by �[UD under 24 CI`R 888,1 t 1; or
2, A rent that does not exceed 30 percent of the adjusted income of a f�mily whase
lnnuai incoine equals 65 parcent of the median income for the area, as cietermined
6y I-iUD, lvith adjustments for number of bedrooms in the unit. T��e E�OME rent
limits provided by EfU� wiil incl��de avera�e occup�ncy per unit and adjustecf
ir�come assumptions.
!�, f�ciclitfona� Rent lrmi�atiorrs, [r� rental �cojects with �v� or �nare FIOME-��ssisted rental
units, twer�ty (2q) pe�•cent oF the HO[viE-assisted units rr�ust be occupied by very low-
income families and meet one of Falloaving rent reqi�irerr�ents:
"F}te rent does nok e:cceed 3� percent oFthe annuai income of a fa�nily whose income
ec�uals SO percent of the median incame for the area, as deter�nined by HUD, with
:�cijustments for smaller and l�rger Families. HUD provicfes the �[QME rent lirnits
�vhich include average occ�apancy per i�nit �nd adjusted ir�come assumptioris.
I-{owever, if the rent determinec� uncier this paragraph is hi�her tl�an the applicable
rcnt uncler {a} of this section, then the �n�ximum rent for �iniEs iincter this paragraph
is that calcuiatec� under paragraph {a).
2. "Che rent cloes not excecd 30 perccnt of the farnily's adji�sted income, Iftl�e imit
receives federa! or Stnte project-based rentai su6sidy aEid the very low-incorne
Farnily pays �s a contri}�ution toward rent not �nore than 30 percent oFthe Fa��ily's
��djusted income, then ihe maxiEn��m rent (i,e., ten�nt contrib��cion �Er�s project-
h��sed rental stibsidy} is the rent allow�ble under the Fec�erai or State project-b�sed
�•cntai subsiciy prograin,
c. I�ri�ial renl sc{tecltrle and irtilily ulla►ya�rces. "I'l�e participatirig jurisdiction mtist establish
rnaximt�tn monthly allowattces for tttiiities �nd services {excludi�ag telept�one), "I't�e
p�rticipating jurisciictian must review atzd a�prove rents proposed by the owr�er for units
st�bject ta tl�e Enaxii7�um rtnt �im�tations in p�ragraphs {a) or (b) oFtliis scction. Cor 3i!
units subject to tlle ma:cirrtt�m rent limitatio�s ic� plragrapf3s (a} or (b} of this section for
wl�ich the ten�int is payir►g utilities �nd serviccs, the participatiii�ji�riscfiction must ensure
47
chat Etle rents c!o nat e:cce�d ti�e maximi�m renk minus the mont}�ly �I[ow�nces for utilities
illl(� SCCVICCS.
ci. rVvndiscrrminalion agairrst rental assistance st�bsrcty holclers. Tl�e owner r��jnot refuse to
lease E{ONfE-assisted units to a certiFicate or voucher halder i�nder 24 CF� part 982—
Section S Tc;nant-aased Assist�nce: Uni�ied itule for Tenant-Based Assistnr�ee unc�er the
Section 8 Itenta! Certificate Progr�m and the Seccion S Rental Voiicher Program ar co the
ftiolder af a complr�ble document evidencing partici�aiion in a HONiE tenant-b�sed
rent�l assistance program bec�use of the status of the prospective tenant as a holder af
suct� certiFcate, votrcher, or compar�ble �40�r1E tenant-based assist�nce doci�ment.
e, Periods offlfforclability. The FfONfE-assisted units must �neet ttle aFfordability
rec�uirements for r�ot l�ss tt�an the ��plicable p�riod specitied in the Following table,
beginning after project completion. "Che afforciability reqtiirc►nents apply witho�it regard
to the term of any loan or mortgage or the transfer of n`vnership. They must be icr�pased
by deed restrictions, cover�a��ts running with the land, or oti�er inechanisms appraved �y
�[UD, except khat the:iffordabifity restrictioi�s may terminate upon foreclosure or transfer
in lieu oF farecios��re. The p��rticip�ting }t�risc�ictiart rnay use p�trchase aptians, rights of
F'irst refusal or otl�er �reemptive rights to purchase the ho�jsing befare Foreclosur� or deed
in li�u of foreclosure to preserve at�fordability. `Che affard�bility �•est��ictions shail 6e
revi�ed according to the oi•igin�l kerms if, during the original affordabiiity period, tl�e
owner of record before tiie foreclost�re, nr dced ict lieu of Foreclnsuce, or any entity that
incEudes the former owner or tliose 4vith whorn the Former owner }las ar had family or
6usiness ties, obkains an ownc:rship intecest in the project or praperty.
Renta# Hausing Activity Minimum period af affnrdability in years
Rchabilitation ar �icc�t�isition of existin� 5
ha�Esing p�r E�nit amount of Ff�ME Fiinds;
u�,�er � i s,oao
�fi i s,aaa ta �ao,oao � o
Over $�O,fl00 or reh�bifitation involving 15
refinartci�ig
Ne�v Construction or acc�ttisiEion o#' newly 20
constructed housing
,Sub.�ec�itent i•ents �hu�ur�; 1he rrffordabrliry perinci.
I IlC Cil3:Cl[llllil7 � IOME i'P.�1C IlfT11�S are rec�lcul�ited an a pc�riociic basis at�er } lUD
cletermincs #air m��rlcet ren#s ancl meciian incoines. FIUD t}len pro�ides the new
�n��ximiim f IO�tE t•ent litnits to �artici}�atirtg jt�risdictiorts. Regarc�less ot'cl3ang�s in
fair inarkct rents and in median inconie ovcr tirr�e, the f-�OM� rcnts for a project are
�ioE rcc}t�ircc3 tn he lower ihaEt the �f�N1f: rcr�t lirnits tor tlie project in et�fect at the
timc of�praject cumit�ikti�cnt.
48
2. 'I"1te p�rticipating jurisciiction must provide project o�vners �vith infarmatian on
updated �[ON1E rent limits so tt�at rents may be adjustec� (not ta e:cceed ttte
maxim��m �-i4N�E rent lirnits in par�graph (t}( l) oF this section) in accardance wit��
tt�e written agreement b�tween the plrticipatir�g jurisdiction and the awner. 4wners
m�ist ann��alty prnvide che �articipating jurisc�iction with information on �•ents and
occ��pancy oi %�OME-assisted units to cfemonstrate compliance �vith this section,
Any incre�se in rents for HON1E-assisted units is subject to the pro�isians of
outstanding t�ases, and in �ny event, the owner must pravide tenants of thase units
not less than 30 days prior written notice before im�lementing �ny increase in rents.
g. fldJtrs�ment of NO�LI� rent lrmlts for �r particrrlar project.
Changes in fair mlrket rents and rn medilr� income over time shou(ci be suftieient to
maintain the fir�ancial viabiiity af a project within the �[ON1E rent lirnics i�� ti�is
section.
2. �iUD may �djust the H4ME rent limits For � praject, only if HUD fiE�ds that an
adjusttnent is necessary to s�tppa��t th� cantin�fed fin�ncial vi�ability of the project
and only by an amount th�it HUD cieterrnines is necessary to maint�in co��tinued
finar�cial vi�ibility of the project. F{UD expects that this at�ihority will be �ised
sparingfy.
I�. '1'enarrt income, Tlie income af each tenant rnust 6e deterrn�rled ir�itially in �ccardance
with § 92.2a3(a)(1){i). fn addition, each year tluring the periad of aFfordlbility khe
project owner must re-examine each tenlnt's lnnual income in accorcfance with ane of
kk�e options in § 92.203 selected by the participating jurisdiction. An owner of a
m�jltit�mily project with �n �tt�foec�abi[ity pet�iod of 14 years or more �vi�o re-ex�tnines
tenant's a��n�ial income thro��gh a statement and certiticatioii in accordance with
� 92.203(a)(t)(ii), must examine the income of each tenant, in accordance with
� 92.2D3(a}(1)(i}, evary sixth year of the af�'ordaf�ility pei•iod. Oth�rwise, an owner who
accepts tha tenant's statement 4inci certiFication in accord�nce with § 92.203(a)(t}(ii} is
not r�c�uired to ex�nzine t��e income nf tenants in mtiltifamily ar singfe-family projects
u��less there is evidence thlt the tenant's wriEten statement f'ailec# ta complete�y ��nd
�tcct�rately state information about thc family's size or incorne.
C)ver-irtcnme terrcrnfs.
f(ON1E-��ssisteci «nits continue to c����liiy as af�'ordable housii�g despit�; a tempor�acy
noncomp[iance causeci by ir�cre�scs in the i��comes of existir��; tc�iants it'��cEions
s.ttisFactory ta FfIJD ai•e E�ein� taktn to ensure tl�at �Il v�cancies �re tilleci in
a►ccorcfar�ce �vith this section u��til tt�e naE�comp�iance is car�•ecteci.
2. �('cn�nts �vl�o r�c� It�ngcr quakif'y t�s law-i«caine families must p��y as renc the lesscr ot�
the ��mount payable by the tenant tiiodcr State or local law or 30 percent of ihe
Fzrnily's acljt�sted income, erccpt tl�at tcnants of FIONtE-assisked units t}�at have
been allocat�d low-�r�coErte itousing tax c�'eclits by �t housing credit agency p�irsuant
to section 42 ot�the fr�ternaf Re;ver�ue Cadc of 19$6 {26 U.S.C. ��2} ritust pay rent
�;o�erned 6y sectiort 42. Ir� adclition, ii� projects in wllicit tlye i-IOi�f�: �Enits ��re
ciesignated as tlo�tir�� pursuant to par�graph (j), tenartfs �vl�o nu longer c�uaiify as
�99
low-i�icome are i�at rec�uired to pay as rent �Fn amo��nt that cxceecis tlle �narket rent
For comparable, �inassisted �jnits in the nei�h6orhood.
Fi_red and flocrting HO�I�fE r�nits. In a�roject containing FiOME-assisted and other units,
the pai�ticipating jurisdiction may designate �ixec� or flo:�tin� HOME �inits. `I'his
desi�nation must be made at the time of project comm'rcmei�t. Fi:ced �jnits remain the
s�ttte tEtra���;hatit tha pert`od af affardability. Floating ��nits are changec� ko rr�aintain
car�farrnity lvith the req►iirements of this sectior� di�ring the period of aft'orcfability so kiiat
ttse total c�umber of Ila��sirig ��nits meeti�g the r�quire�nents ot this sectia�i remains the
same, and e�ch substit�ited unit is com�r�r�ble in terrns ot size, fe�tures, and number of
bed�•oams to the originaliy c�esigt�atec� FiOi�tE-assisted i�nit.
§ 92.253 Tenant and Participan# Protections
a. Lease. `ihe lease betweert a tenant anc{ an owner of �•ental housing ��ssisted witii HOME
fiinc�s musi be For not less than otfe year, unless by mutual agreement between the tenant
and che owner.
b. 1'rahrhited le�tse terms. The lease may not cantair� any oFthe fc�llowing �ravisions;
I. flgreement to be .stre�� Agreement by the tenant to be sued, to ar�mit �;uilt, or to a
judgment in favot• of the o�vner in a lawsttiE broiight in conn�ction w'tth tlte iease;
2. Ti�errtment ofE�i•nperty. AgreemenE by the tc�nant that the awner may take, hoict, or
sell person�l property of household members without notice to the tenant �nd a
courk ctecisinn on the rights ot'the p�rties. This prahibition, however, does not a�ply
to a�i agreement by the tenant concerning disposition of personal property remlining
in the k�ot�sing unit �fter the tenant has rnnved o��t ot'the ur�it. Tile owtter m�y
dispose of Ehis persanal pra�erty in �tccordance �vit�t State law;
3. C'xct�a�ing otivrrerfr�om r•espnnsibility. flgreeirtettt by the tenant not ta }�[�Id the owner
or the owner's agents legally respoc�sii�le For any �ction or tailt�re to act, w��ether
intc;ntioi�af or ile�;ligent;
4. Waiver of rrotice. A};rc;emerlt oF the tenant that the owt�er inay institute � Eawsuit
�vithout i�otice ta tf�e ten�}nt;
5. lYaiver of�legal �roceeclin�.s. A�;reement by tlic; tenant thut the owncr rnay evict the
ten�tnt ar Itousehold rnenlbers witho«t instituting �i civil court procceding in which
the tenant }�as the op�ortti�iky ta ��resent a dcfcnse, Di I)f;FOCe 3 COUI'� LICC[SkOri O[1 f�lC
CI�hIS Elf f�l� �13i'EIGS;
6. #�arvc�r nf u jte�y lrral. flgrcemcttt by the te���itik fo w�►ivt any ri�;ht to a trial by jury;
7. lYrrrver of�i•i�;yr1 to uppeul cnrsrt decisivn. Agreeinent hy the teE�ant ro waive t}le
tcna��t's ri�ht to ��p�eal, or to otherwise chal[enge in court, a co��rt decision ir�
co�ir�ection �vith the lerse; and
Tefru»t chrrr�,rer�hle �vrlh cn.st oJ Ie�;rrl acti{�n.s re�,lcrrclles.s vf v�rtcorrae. r1�;ree�t�enE by
tftc tenant to pay attorncy's I'ccs or other le�;ai casts evin if the te►���nt �vins ii� a
50
, �:. . ,_
cotjrt proceec�ing by the owner ag�inst tl�e tenant. The ten�nt, howe�cr, may be
obligated to pay costs ifthe tenant loses.
c. Ter•»rinatrorr of tenancy. Ai� otivner may not terminate ttle te�ancy or refuse ta renew E�e
lease of a tenant of rental ho��sii�g assistec� with �iOME funds except for serivus ar
repeated vialation af the terms ar�d conditians of ttta lease; for violation of �ppiicable
Fecierai, State, ar focal law; for cornpletion of t�c tenancy period for transitianal ��o�ising;
or far ather good cause. `To terminate or refuse to rertew tenancy, ttle owner rr�tist serve
�vritten notice i�pon the kenant specifying the grocincis for the action at Eeast 30 ciays
before the Eer�ninakion of tenancy.
c1. Tenunt seleclron An owner of rental hotising assisted with HON1E fi�nds m��st �dopt
�vritten tetlant selection palicies and ci•iteria tliat:
Are consistent with the pur�ose of providing housing for very low-income �nd tow-
incorne fatnilies;
2. Are reasonabEy related to pragram eli�ibility anci khe zppticants' abiEity tv perfarm
the abligations of tl�e le�se;
3. Pc•ovide for the selection of tenants from a written waiting list in tk�e chronalogicai
order of their �pplicatinn, insofar as is practicable; and
4. Gi�re prornpk written notitication ta �ny rejected appkicant of the grou�ds for ��ny
rejection.
§ 92.254 Qualification as A#fordabl� Housing: Homevwnership
a. �fcr�z�isition tivith or withaut rehabrlitation. E-lot�sitig that is For acquisitian by a F�tmily
�nc�st meet the 1fFordability requiE•ements oFthis paragraph (a).
'['I�e kiousing tnust be single-Famiiy �lousing.
'I'he hausing rt�eist be rnocfest hatisir�g as follows:
[n tkfe case aFacquisition of newly co��structec� housing or standlrcf housin�;,
tl�e hatising I�as a p��rcltase price for th� type of si���;le tamily ho��sing that cioes
not exceed 95 percent of #he median purchase pr�ce for the area, as describeci
iri ��iragraph {a)(2}(iii) c�t'tiiis section.
f n t}Ze case af acqi�isition witl� reitabili#atian, t�e ho«sing has �irt esti�nated
v�iue �zlter i�eh�6ilit�tion that clocs not exceec# 95 perccnt c�f the ��neclian
purchase price for Ehe ar�n, clescribed in paragraptl (a)(2)(iii) oFthis secEioti.
iii. If a��articipatin� jiiriscliction ii�tends tn use I-fONi� t�Emds Fnr homebuyer
assistance or For rch�2l�ilitatiort oFawr�er-accupicc� sitagtc-Family prc�perties, tl�e
p<<rtici�atittg juriscfictian rnay use the Single F=amily y(ortgage LimiEs tincler
Sectian 203(b} of the National l ioi�sing Act (12 U.S.C. ! 7D9(b)) (which r�iay
he ol�ttiineci t'rorn the tIUD Fie(d Office) or it c�iay determine 9S percent a#� the
rr�edian arel purchasc �3rice for sin�;ie t��t��ily ilo��sin� in the jtErisdiction, as
51
Foilows. "t�11e partictpating j�rrisdiction must set fartt� tlle price for cii#�'erent
�y�lCS OF 5111�TI� fltllily IIOUSIEI� �OC ii1C �Ul'ISC�ECkl�tl. 'I'}te 95 perccnt oF median
are� purchase price must �e established ir� aecordance �vitli a marlcet ��n�lysis
�vllich ensured tt�at a siif'ficient «�i�nber af recent housir�g s�iles are iczclucied i�
the survey. Safes must cover tlie requisite number of rnonths based on volume:
I�or S00 or more sales per ma�th, a o��e-month report'tng period; for 250
thro��gh �99 saies per inonth, a two-month �•epor#ing perioc�; f�r less than 250
stiles per month, ��E least a khre�-tr�onth reparting period. `I'he cfata �nust 6e
listed in ascencting orcier of sales priee. `fhe ��ddress of tiie lisiec� properties
must irtcltfde t}te location �vikhin tlle parEicipati�g jiirisdiction, Lot, squ�re and
$ttbdi�ision cfata may be stibstit��ted far the street acfc�ress. The housing sales
data must ret�ect �11, or tte��rly �Il, af the one-faittily Itouse sa�les in the entire
pa�•ticipating jurisdietion. "I'o cieterrnine the �nedian, tnke the micfcile s�le on the
list if ar� ocici number ot sales and if an even niimber, take the higher of the
midd[e n�ambers �nd consid�r it the median. Afier identifying the it�edian sa[es
�rice, tl�e ��mount sho�ild be rmiftiplied by .95 to cfetermine khe 9S percent of
the median a�•ea purchase price. `E'his itzformatio�� must be sitbmitted to the
�-[UD Piefd Ot'fice for review.
3. 'I'}le liousirig mtist be acc�Eiired by � homeb«yer whose F�tmily c��zalities as � iow-
income t'atnily and ttle I�oiising must be the pE•incipal r�sidence af the tamily
throughout the period clescribed in p�ragraph (a)(4) of'this section.
4. 1'ei•iacLs of'rrffardabilrty. The E-IONI�-assisted housing in«st i��eet tf�e nf'fordability
rec�uiremetits tor not less khan tlle applicnble periotf speci�ed in the follawi�ig table,
be�i��ni«�; �tfter projcct completion. "I'I�e per tmit �tnouni oF {-iONtE Ftirtds �tnd tl�e
affardability period tllat tf��y ti•igger tu•e descri��d rnare fiilly in p�ra�ra�hs (a){S){i)
(resale) and (ii} (rec��pture) oFthis scckion.
Hameownership assistance HOM� amaunt Minimum period of affordability in years
per-unit
Under � i 5,Q00 S
$ I S,OOQ to $40,000 10
Ovcr $4{),000 � S
Re.r�rle rrnrl recct��ltu•c�. "t'o crtsttre at�fii�rda�ility, ti�c ���trticipatiEig.jurisdictie�rt rnt�st
itii�ose cither resalc or rccapture rcytiirc�itet�ts, ��t its c�ptioti. �f�ite participatita};
jurisciiction o�li�st estt�hlisll tlae resale e�r recaptt�re rec�uirements tf�at cort�ply �vit�t tht;
st<irtclards c�f tl�is sectioii and set li>rth tl�e rcy�iire�l�ents ii� its cur�sc�licl�►tcd plan.
F{[J[7 i1�Eist cictcrrnine that they ��re �l�prapriate.
Re.sale. Rt�saie rcyuiremertts rt�ijsE etistit•e, iFtl�e ltousing daes not cut7tittuc to
he E11e p�•incipa� resicle��ce ot'tl�e fact�ily for tf�e dur��tiar� ut� t}�� periocl oF
��f�fordability, tl�at tf�e housi►�g is m�icie av31I�ShIt; �OC SllI3SC(�U�ilt �llCC�l�iSt; OEIIy
tu �� bicyer tivhc�se tart�ify c{«��iifies as a low-it�co�ne fai�tily �ind wil! t�se tlie
JZ
�roperty as its principai residei�ce. 'i�he resale requirement must also ensure
tl�at tl�e price at resale provides tlie ariginal �[ONi�-assisted owner a fair return
oi� investment (incliidin� t�e homeowner's ittvestment �nd any capital
improvement) anci ensure that the hausing will remain affordable to a
reasanable r�E�ge of low-income homeb«yers. 'I'he period of affordability is
based on the tatal amo�ant of HONiE Funds invested in the housing.
A. Exee�t as provided in paragraph (�)(5)(i)(B) of this section, cieec3
restrictions, covenants ri�nning tivith the land, or other similar mect�anisms
must be �ised as the mechanism to irrtpose the resal� requirements. The
aftordnbifiky restrictions may Eermin�ta upon oce�irrence of uny of the
follawing terrnination events: foreciosure, tr�nsfer in lieu of Foreclosure
or assi�nrr�ent of �n E'HA insured mort�lge to HUD. The participating
j«risdiction may use purchase aptions, rights of f�rst refi�sal ar other
preemptive rights to purchase the hausing before foreclosure to presarve
lffordability. The aff�rc��bility restrictinns s�lall be revived accoeciing to
the origin�l terms if, durin� the originll af%rdability period, the owner of
recorc� before the termir�ation event, obt�ins an ownership interest in the
housing.
E3. Cert�in housing may be presumed to meet the resale restrictions (i.e., tile
housing will �e availlble �nd 7ffnrdable ta a reasanlble range of [ow-
incame homebuyers; a low-income hamebuyer will occupy the ho�tsing �s
the F�rnily's principal residence; ilfiC� tIl@ OCI�IEIAI OW17�1' W1IE E]e 1F�OCC��{� 3
fair rett�rn on investment) d�Er'tng the period c�f rkffordability withofit the
iEnposition ot'enforcement �n�chanisms by the participating j�rrisdiction.
"I'he presa�mption �n�ist be bnsed t�pan a tnarket �r�alysis oF the
neighborhood in which the hausing is lacated. '�'t�e macket anllysis must
i�iclucle an evalt��tion of the location nnd chz�•�cteristics ofthe ho�asi�g
ztid residents in the nei�;hborhond (e.g., saie �rices, age and a�nenities af
the housir�g stack, incotnes of residents, percent�ge of owner-occupants}
in relatic�n ta ho��sing and inco�nes in the housing �narket area. Ar�
a�i��lysis oF thc; current �nd projected incomes oF neighborhooci cesidents
for ar� av�rage period af 1i'forcfabilicy For EioEnebuyers in the neig�borhood
m��st su�port tl�e cot�clusion that a reasanable range of [ow-income
€�arnilies ��ill contiitue to c�ualify for mo�-tgage fin�E�cit�g. f�or �;xamp[e, an
analysis shows th�t the hocising is �nodestly p�•iced �vithilZ the }lo��sing
i��arket ai�ea ancf that farniiies with incoEnes oF6S% to 80% aFarea rnedian
car� at'ford inontt�ly payments �ittcler �tverage C�fA tecros without other
�ove�•E�met�t assisEance ai�d housit�b will remain t�#�forc�able uk least cftiring
tlte next five ta severl years co���ared to otlt�:r housing in the m�trket ar�;a;
t�lC Si'LC Fl13[� �1fT]E:I1lCICS OF E�IC IIOIiStIl� iiCC Eric}[fCSi �lt1C� 5UE3SI7t1[lflI
re}1��biGcatioo� �vifi not si�;niticantly increase the Enarkct �alue; tlle
nci�;}tborllaod has itot�sing that is nok ccirrent[y owned by the accupnnts,
but tEic participating jurisdiction is encour��ging homeowtters��ip in tl�e
r�eig}iborhood by providing homeQw��ership assistance and hy inaking
improverne�iEs to the streets, sicfewalks, nnd otller pi�b[ic ttlClll�lt'.5 ar�d
�ervices. IFa participatin� jtirisciiction in preparin� a neighbork�ood
revitaiiz��tian strategy �indcr � 91.21 S(e)(2) of its eonsoliclateci p�an or
F:m(�owe�tttenE lone or E;nterprise Comm�it�ity ��pplic�ttion i�i�cier 24 C;(� R
53
pn�•t 597 has incorpo�•ated the type af market data described a6ave, th�t
s�ibmission inay serve as the required analysis under this section. If th�
p�rtieipating jurisdictian conEin�ies to provicle homeo�vnership assistance
Far i�o��sing in the neighborhood, it m��st periodically upciate khe market
��nalysis to verify the original prest�mption c�f cantinuec� a�f'ordability.
ii. Recapture. Itecapt�ire pravisions inust er�sure that the participat�ng jurisd�ction
i•ecoups ��ll or a portion ot' E�e HOME assis#ance to the homebuyers, if the
Ilo��sin�; does not continue to be the pri��cipal resider�ce oFthe family #'or the
cfuration of the periad of affordlbility. Tiie participating jurisdiction rnay
sintct«re its recapture provisions basec� on its program design ar�d market
conditions. The periocl of �#�fordahiiity is based upon khe tota� amour�t o�
HOME fiinds si�bject to recapt�ire ciescribeci in ��ragr�►ph (a)(5)(ii){A)(5) of
this seciion.
�1. "i�he following nptions For rec�pEure requirernents are �cceptlble to HUD.
The ��rticiplting jurisdiction may adopt, modify or cievelap its own
recapture requiremenks tor f-(UD approval. fn establishing its recapture
requirements, the participlting jurisdiction is subject to the [imitation that
when the recaptur� reqi�iE•ement is triggered by a s�le (volu�itlry or
invaluntary) of the housing unit, and there are no net proceeds or the net
pc•oceeds are insufEicient to rep�y the I-IOM� investment ct��e, the
p�irticipatii�g juriscliction can anly rec��pture the ne;t proceeds, if ariy, "Tiie
�let �roceeds �re the sal�s price rt�inus superic�r loan rep�yment (ot}ler thnn
EtONiE ft�nds} �tnd any cfosittg costs.
1. Recnptrrre entij�e amatrnt. 'Fhe participating jE3risdiction rnay
��ec�ptt�re the entire amount oF the HONtE investment fram the
�lomeo�vner.
2. Recltsclron d:rri�tg affordc�6ility perioc� T�te participlting jt�risdictian
may reduce the I-[ON(E investment amount ta be recaptt��•eci on a
prorata basis Far #he tirt�c the homeowner h�s owned anc! occupied
the t�o�ising me�sured against the required �tfFordability pe�•iad.
3. ,S�irrred net proceerl.s. I F Ehe rtet �roceeds are rlot s�� t�Ficient ta
rec�tptt�re the f�tl1 HOME invc;sEment (or a rcd��ced ��mo��nt as
provic�ect For in paragr�iph (a)(S}(ii)(A}(2) aFthis seetion) pl�is cnable
lhe homeowtter to rccover the :��nourtt of #he horneowner's
do4�np�iyment and any c��it��l ir�pcavement iE�vest�nent Enadc �y the
o��ner since ptire}�ase, tfZe �articipating jurisdictian iiiay share tl�e t�et
proccecis. 'I'11e net procceds are tlic� saEes ��rice mi�lus ioan rc;payment
(c�tE�er #fizn 1 iQN4�a f�inds) anci closit�g costs. '[�Ete net proceecfs rnay
6e ciivicied pro�ortionally as set forth ir� the f'oilo�viri�; maEhemlEical
fi�rmuk��s:
54
HOM� InvestrnentlHOME Inv�stment H4M� amaunt t0 be
X iVet Proceeds =
+ homeowner invesfinent r�captu��d
q� Q� Q 4 o a a� Q o � m o� IUHOM� lnvestment x��� proceeds = �mo�nt to homeawner
+ home�wner investment
�. Otivrter inveslnaent retterrted first. `�'��c paE•kicipati�ig jtirisdiction may
permit the homebikyer to recover the hom�buyer's �r�tire iiivestment
(clo�vnpayment ancf capikal impra�ements rnade by the owner since
pfirchase} beFare recapturing the H�Iv[E investment.
5. finrattnt sttbject to r•ecaptrrre. "Che EIOME in�estment khat is s��bject
to recapture is based on the �mat�nt of EiOME assist�nce that enabled
the hom�buyer to buy the dwelling unit, `T'his includes any EIOME
�ssista�ice tliat rediiceci the purchase price From Fair �n�rket vali�e to
an affordzbEe price, but excic�des the amount between the cost of
prod«cing khe unit and t1�e m�rkec va[ue of the prnperEy (i.c., the
developme�t siibsic�y). The recaptured Ft�nds must be ��sed to carry
out (-ION�E-efigible activities in accorclAnce with the rec�uirements o�
tl�is part. [f the HOME assist��ttce is only usec! For the cieve[apment
subsidy and therefore nat subject to recapture, the resale option rntist
be used.
6. Speciul c�jnsideYClllo)15� for single fantrly prnpertres tivith »iore tharr
nne trilrt. If the E-{ONtE F��nds are onfy used to assist a low-iiicome
Ilomebt�yer to �cyuire ane unit in single-Family 11oi�sing containing
�nore than one i�i�it anci the �ssisteci ��nit will be the principal
resictence oF khe homebuyer, the ���fordabiiity requirements of this
section �pply ���ly to the assisted unit. [f �iOM� futtds ��re also used
to assist the lo�v-income homebuyer to acqi�ire one or more of khe
rent�tl units in the single-f�mily housing, tlie ��fordability
rec�uiretnc;nts ot § 92.252 ��pply to assisted t'enta[ urtits, except t1�at
the �nrticipating jtirisdiction may impose r�slle or recapture
restrictions on all assisked units (owner-c�ccupied ��nci rentai units} in
the single family housin�. [f resale restrictions �re usec�, the
��t�fordability reqiiiE•ements on ali assisted tinits conticiue For ti�e
period aFaf'forclability, If reca��ture resirictio�is are tis�cl, tktie
afford��ility requiretncilts �il the assistec� rental units m�ty l�e
terminateci, at the discretion of the p�rticipatin�; j��risdictiotf, upon
r�c�t}�ture of the F{ONiE ittvestrnent. (If F40i��� tu��ds a�-e useci to
�►ssist oc�ly tf�� rental uatits it� suctt a�raperty then tE�e rcquire�ttents of
� 92.252 �vould apply ��r�d Ehe owr�er-occupied ��nii woutd not be
s��bject t� the incorne targeting or a#�fardability provisions of
� �Z.zs�.�
55
7. Gease-p�sr•chase. HOME fiinds may be t�seci to assist homebi�yers
through lease-p�irchase prabrams for c:cisting hoeisin�; and for
hot�sing ta be ca�st��ucEed. "['t�e housing must be puc•chased by a
i�omebuyer within 36 r�ontt�s of signirig t��e lease-purehase
agreeme�it. Tlie honiebuyer meist qualify as a low-income family at
tlie time the �e�se-purchase �greement is si�;nec�. If E[OME funds are
i�sed to �cc{uire housi�g that �vi11 b� resald to a homebuyer chro�fgh a
lease-purctlase program, tl�e �-[OME afford�biiity requirements for
rentat housing in � 92.252 shail t�pply if the tfousittg is not
tr�nsferreci to a hamebuyer �vichin farty-two months �fter project
completion.
Contract ta prerchrrse. I� HOME Funds 1re ��sed to ��ssist a ho�neb�y�r
�vho has eiltered into a contract to purchase ho��sing ko be
cons#ructed, the homebiiyer rnust q�ialify �s a lo�wincome #'amily �t
ttie time the contract is si�;ned.
9. Pf•e.sej•ving �rf'forrlabrllry.
(i) Not�vithstanding � 92.214 (a){6), to prese��ve the ��Ffordability of
hausing tl�at was previously assisted �vith �-tOME f«ncis and s�ibject
to the rec{�airements of § 92.254{�}, a pa�-ticipatin� jt�risdiction rnay
t�se additionai HON[E funds to �cq�fire the Ilo�ising t�rottgh a
ptirchase a�iion, right ot'tirst �•ef�tsal, or other p�•eemptive right beFo�•e
#'ot•ectosure, or to acc�uire the haiisin� 1t the foreciosure sale, to
c�nde�•talce any necessa�•y rehabilitation, and to provicle assista��ce to
�t�loiher homebuyer. The hausing tttust be soW to a new eligible
hoinebuyer �n accarcEtance �vit�t tlle requirements oF § 92.25�(1}.
Addition�ii E[ON1E ft�nds may not i�e used if the mortgage iE� clefault
�vas Fundecf 4vith tIOME funds.
{ii) "�he tokll amot�clt af original ��ti�l adclitional EIOIVIE assistattce
CTlc�y Ildt B:CC�eE� tlie fTiFtXIITILiItl �iCi-lllll� SiibS1{(y <unour�t estahlished
�incier � 92.250. Alternatively to char�ing tl�e cost to tl�e H4Nt�
pro�ram untlec § 92.20b, the participating j��ri5dictian may c�targe t}le
cost to tt�e HOME �rogram u►�cEer § 92.207, as a reasan�ble
adtninistrati�e cost oF its F�OVt� progr��m, so t}��it the 4�dditionll
t{ON[E tiincis for tk�e horising are ttot subject to the rnaxitnti�n per-i�nit
s�ibsidy �imou�lt.
ls. Rehcrbrlitution not invv�vin,� ucqrrrsrtron. Housittg that is c��rrently c���t�cd by �� fi�amily
��u�ilities ��s af�forclable I3awsing orily iF:
�I'he estimated value c�i'the property, ��fter �•eilabilitiiClOEI� cloes c�ot e�ce�:ed 95 pereent
ut'tlte �l�ccliat� J�tirchase prEce tor tf�e are��, c�c�scribeci in par��gr�iph (a)(2)(iii} ot�tl�is
scction; aitcl
"�he hc>usirt�; is Ehe principal resic�encc oF<in ��vner tv}�ose €�ari�ily yualities �fs a low-
i��co�n� t��mily at the time HQME; fut�cJs are com�ritted i� the kiousin};.
56
c. Utivnership ir:terest. Tlte ocvneeship in the ha�ising assisked t�nder this section �ni�st meet
the cie�initi�n of "ttomeownership" in § 92.2.
d. Netv constri�clron ►vitlsoret r�eqtrisitivn. Newly canstr��cted hausing tfilt is b�zilt nt�
property currently owned by a f3rt�ily which �vill occupy the hoi�siri� upon completian,
q�ialifies as �ffordable fiousing if it meets the req�iireme«ts under paragraph (a) of this
section.
§ 92.255 Converting Renta! Units to Homeowr�ership Units for Existir�g Tenants
"l�he �articipating jt�risdiction may p�rmit the owner of HOME-assisted rentai units to convert
tha rental ur�its to homeownership uiiits by selling, donating, or otherwise conveying the units
to the existiE�g tenants to enable khe ter�ants to become ha�neowners in accordance with the
requi�•ements of $ 92.25�. If no additional FiON{E func�s �re t�sed to enable the tenants to
b�come homeowners, the homeownership units are s�tbject to a cninimum period of
�f'ford�bility equal to the remaining affordable period if the units cotttinued as renka! tinits. [f
aclditional HOME fiinds t�re ��sed to directty assist the tenants to become homeowners, the
minimum period af ztfordabi�ity is tl�e �ffardability periad under § 92,254(A)(�), b�sed on the
amofint af ciireet hameownership assistanee proviciect.
§ 92.256 Reserved
§ 92.257 Religious Organizatio�s
a. Orga��izatians that ar� reli�ioais or taith-based ��E•e �iigible, an the s�m� basis as any oti�er
or};anization, to p��rticip�te ir� the HO[vtE progi•am. Neither the federaf �overnment nor a
state or [ocal government c•eceiving Fi�nds i�i�cier HOME programs shall discritninate
�gainst an or�;anizatior� on the basis of the ot•ganizltion's religious character nr aFtili�tion.
6. Oi•ganizations that are clir�ctly Funcied uncter tf�e F{OM� progra�n may nac c;i�glge in
ir�l�erently reli�ious activities, such as worship, religious ittstruction, o�• proselytiz�tion,
�tis part of the assistance fttndcc� ttnder this pt�rt. If att organization conciucts such
�ictivities, the activities �nust 6e offered sep3�•ately, in time ur loe�tion, from tlle
��ssistance tiinc�ed uc�der this part, and p�rticipation m�ist be voli�ntary for the
betteFiciaries of tfte �ssistance provided.
A �•eligiocas organization tllat participates in khe E i()ME pro�;ram will retain its
inctependence t`rom fecleral, state, �i�d loctil goveenmenEs, a��d tmty continue tc� cacry out
its mission, including the detinition, pr�ctice, zinc� cxpressian of its reli�;ioEis l��;li�fs,
��ro�icled th�E it ci��es nut us�; dircct 1-f01�[�; f't�nds ta s�ipport atiy inherentky religious
�ietivities, such as worsi�i�, reii�io�s ii�strt�ction, or �rose�yEizatian. Ainoi�g t�tttcr kl�in�;s,
t�ith-baseci organizatio«s m�y �ise s�ace ir� their tacilikies, �vithout rcmaving religiaus
art, icc>ns, scriptures, c�r otl�c;r r�ligious symbols. ftt acidition, <t H[3N1E;-t'undcd religiot�s
orgtiniz�tior� retains its ai�tllority aver iks ic�teri�ai governance, �it�d it rnly retain religious
tcrcns in its organiz�tion's n��me, s�lect its board tnetttbers on a religious basis, nncl
inc(E�de religious refercnces ii� its c�r�;anizatioi�'s mission statements ancf other governing
clocurnents.
57
<i. Ar� org�nizatian khat p�trticipates i�� the HOME program sfiakl not, in providing program
�ssistance, discrirninate a�;ainst a pro�ram beneticinry ar prospective progra��
�eneficiary on tlie basis of religion or reli�ious 6elief.
e. H�Nt� fiinds may not be used far the acquisition, constrciction, ar reliabilitation of
str��ctures to tlie extent that tltose structures are used Foc inherentEy religious activities.
�[OME fi�ncis may be �ised for the acquisition, constructian, or rehabititation a�structures
aniy to tlle e:ctent that those structures :�re used Fnr conducting eligible activities tinder
this pai�t. Wh�;re a structure is used %r bot� eiigibfe and inherently religious activities,
f[QNt� fiinc�s �nay ilot exceed the cast of those portions oi the acquisition, canstr�ictior�,
or rehabilitat�on t�at are atcrihut�bie to eligiE�ia activities in accard�nce with tha cost
accounting requirements applicabte to f-iOM1E funds in khis part. Sanetuari�s, ch��els, or
ather rooms th<it � HOME-fi�ncied reltgiaus cangregation uses as its principal place of
wors�ip, howe�er, �re ineligible far HON1E-ft�ntied improverr�ents. Disposition af reaf
property after t}�e term of the grant, or any c�ange in use of #he �raperty cluring tize t�rm
of the grant, is subject to gove�•nment-�vide regulaEians governing i•eal property
disposition (see 24 CFR parts 84 �nd 8S).
k�, fFa state or loc�l government �oluntarify contributes its own fiic�ds to su�plement
Federaliy f��nded activities, the stlte or focal government Itas the optian to segregate the
Federal funds or con�mingle them. �[owever, if the f�inds are commingled, this section
�ppiies to a[t af tlle commingled Funds.
§ 92.258 �Ider Cottage Housing Opportuni#y (�CHO) UnitS
a. Genej•al. i-[ON[E flinds rray be tEsec� fc�r the initial purchase and initial piacement costs of
elcfer cottage housing appartunity (fiC}-i0) tinits that meet the requirements oF t�is
section, a��d khlt are small, Free-sta�uting, barrier-free, ener�y-effici�nt, rema�able, and
clesigneef to be inst�i(l�;d �tcljacent to exisking single-farrfily dwellings,
b. Eligible vtivnei�s. T�te awner of a�IC}N�E-assisted CCEfO t�nit m�y be:
I. 'T'he a�vner-accupant of the singke-Family host pro�ecty on wllicli the EC�(O unit
�vil� be located;
�. A �}ili'C1Clpatin�; ju►•isdiction; or
3. A i�on-�rofit organiration.
c. L;Irxible tenr�nts. Utiring the aFto�•d���ility period, flte tc��ant o#'a t-IOtiiE-assistec) ECEEO
kifllt ttlLiSt E)0 iltl CI(ICCIy {)P C�{S1bIE.(� ��likllly SS (�eftlleC� E11 Z�i CFR 5.��}� Zfl(� 113115k 1�50 �B �i
�(}�V-fE1CQEliC �il[I1lIy.
cl. �tpplicable reqc�iren�c�nl.s. 'fhe require�nents oF � 92.252 c�F tllis pact ap�iy ta E-{Oi�E-
��ssisted EC�(O �i�iits, with the folloaving moc�ifications:
Only aile [�Cf ((} unit rnay be provic�ed per I�ost �roperty.
2. `I�IIe E�CEiO u�tit ow�ler may choose w(�etficr c�r not to charbe tt�e tcnailt of ik�e E�CFIO
t«lit rerlt, i�ut if a rci�t is c}�argcd, it must mcet the �•ec�uiremc�tits oF � 92.252.
58
EYHIBiT "H"
DAVIS 13ACON ItEQUIRE1�iENTS
�sderal Labor Standards Provisions u.s• Dapa�Ement of kousing
and Urban L?evelopmen!
O[fice af Labor Re�atians
AppllCsbllliy
The Project or Program to which the canslruclion work
covered hy fhia contract part8ina is being asslaled by ihe
Uniied Statea of Amerlca and i3�a fallowing Federal Labor
Standards Provislons are incEuded in this Conlraet
pursuanl Eo Ihs provisione applicable to such Federa!
aaslslance.
A. 1. (I} Minir►3um Wages. AI! laborers and mechanics
er�ployed or working upon lha site af the wark, wiil ba pald
unoonditionsliy and not les� oilen Ihan onca a week, and
wilhoul subsequent deduction or rebate vn any aceounl
(oxcepE auch payrnll deducklons as are permilted by
ragulalions issued by the Secretary of Labor under ihe
Copeland Acl (29 CFR Pa�t 9j, ihe fuli amouni of wagsa
and bona [ide iEinga bane}its (o� cash equivakents thereof}
dua al time of paymenl compuEad al rales npt less lhan
tMose conlained in lhe wage deiermination of lhe
Secrelary of Labor which is attached herelo and made e
parE hareol, regardlesa of any conEFacival relaUonship
which may be atleged lo exlst between Ihe cantraCEor ar�d
such laborers and mechanics, ContriDullons rnade or
costs reasonably anticipated tor bona (Ide fringe beneflis
undor Section t(b)(2) ol !he �avis-6acon Aci on hehalf ol
4aborers or mechanics are considered wages pald !o auch
laborers �r mechanics, suDjec! !o ihe pravisiona of 29 CFR
5.5(a)(t)(iv}; atso, regular conlrlbutions made oe cos�s
incurred tor more lhan a weekky per�od (hut no! tess often
Ihan �uartea€y) under plans, iunds, or programs, which
co�er the parlicular weekly perlod, are deemec! ln be
construclively made or incurred durtng such weekly perlad.
5uch laborcrs and machanlcs sheli �e paid the appropnaie
wage rale and fringe banefils on ihe wege delerminaiion
[nr Ihe classiflcalion of work acivally perfo[med, wiihoul
regatd lo skEll, excepl es provid�d in 29 CFf2 5.5(a}(4j.
E.abarurs or mechanics pertorming work In more than one
eiassificalion may he campensaied al the reie spBcifiad foi
oach ciassiflCalion 1or the iime aClusily worked ihereln:
ProvidaQ. Thai Ihe amplayet's paytol! rocards accuralely
set forlh tha time spent in aach classilicatlon in whieh
work is pertormed �he wege deEerminalton (including eny
additional ctasaiflcalion a+�d wage rates conformed under
23 CFR 5 5(a)(S)(iI) and !he Davfs-i�acon pasler (WH•
1325) shaU be posled al atl i�mes by Ihe coniracEor and iis
subconlraciors at Eha s�la o{ !he work in a prominent and
accessi4ie, pEace where i! can be aasify seen by Ihe
wor3c�rs.
(Ek? �aj Any class ol IaDorers or mechanics whlch is not
iieled in It�e wage delermination and which is !o be
nmployed under the conlracl shall be ciassifled in
conlorrrtanca wlth the wage deEerm�nation. HEJC1 shall
approve an add�lionai classlficatlon and wage Eate and
tringe henefils lhCrefor only whBn the following crlieria
have been rtle!
(1) fhe work lo be performed hy tha ClasaiTica#tan
requesled Is nol perlormed by a claasif[catfon In the wage
d0leffftlft&ti0ft: 8t1d
(2� the Ciaeslflq8tlon IB utilized In the araa by the
conslrucllon industry; and
(3) The ptaposed waga rate, includfng any bpna fide
hinge beneills, beara a reasonable relationshlp to Ehe
wage rale3 conlained in the waga delermination.
{b) if the conlrxctor and iha Egborera and mechanics la be
employed in the classlflcallon (1f known�, or thefr
r�prosenlalives, ar►d HUD oa its deslgnes agree on Ihe
classlflcalion and wage rate (Including lhe amounl
deaignaled for iringe beneflta where approprfale), a reporl
of Ihe actfon taken shail be sen! by iiUO or Ils daslgnee !o
lhe Adminisiratar al the Wage and Hour btvlsion,
Emplayment 5landarda Adminlatrallon, 11.S. (]eparlment of
Labor, Washington, D.G. 20210. tha Adminlsirator, or an
authoriaed repreaentalkva, will apprave, modlfy, or
disapprove every additional clasafficatian actlon wlthin 3D
days ot recefpt and so advise HUD pr Ha dealgnee or wf1E
noti(y HUD or lis deslgnea wit�in Ihe 30-day period Ihal
additlonal iime is neCessary. (Approvad by ihe O(fiCe oi
Management and Budgst under �MB cpnErol number 1215-
0140.)
(cj In Iha evanl ihe conlractar, the labarers or mechanlcs
l0 be employed in the claasiflcallon or lhefr
rapresentalives, and FEUD or kts deafgnea do not agree on
ihe proposed claaslficaElon and wage rate (lncluding Iho
amount deslgnaled !or iringe benetils, wh�re apptopriaie),
HUD or lEs designee shal! refer Ihe quesllona, Inckuding
lh� viaws of all Inlerested parties and ihe reaommendatian
of HUq ar its deslgnee, lo the Adrninkatrator for
dalerminaiion. The AdminlstraEor, or an autharized
represantalive, wi!! issue a determinalipn wllhin 30 days of
receip! and so advlse I-tUD or kts deslgnaa or will notify
tiUD ot its designee wHhin the 3Q-day period ihat
additional tlme is nec0ssary. (ApprBved by Ihe Oifice of
Management and Budgei under ON[B Canlrol Nun�ber
1215-0140.�
{dj The wage raEe (Including [ringa be�efiis whero
approprialej delerrnined putsuanl to subpaaagraphs
(1}(ik)(bj ar (c) af this paiagrsph, shall be paid !o all
workars performing work in lhe tiassification under lMis
contracE lrom Ehe first day an wi�ioh work is per(ormed !n
ihe clagsilicalion.
(llfj Whenever Ihe mintmum wage rata prescrlbed in ths
conlrac! [or a class ot labOters ar mechanlcs include9 a
Innge bBnefi! which is nol expressed as an hourly rale. lhe
contraclar sr�al! efthar pay the benelit as staled in tha
wage delerminaiion or shail pay analher bona i�de fringe
baneTit or an haurly cash oquivatenl thereof.
(fv} If Ihe conEractor d009 [!Pl make paymenis to a truslee
or olher third person. !he conlraclor may canslder aa part
form HUD�4010 ((�12009�
Prev�ous edifions are obsolaie Paga t ot 5 rei. Handbook 1344.5
04 the weges oi any labo�ai or mschan(c the emount oT any
costs reasonebly anElclpaled tn providing bana ikde fringa
banelila undei a plan or program, Pravided, ihai the
Secratary ot 1.abar ha� found, upan the wrf!!an requea! of
lhe oonlrocfar, lhal !ha applicable alandards of lha Qavi3-
8acon Acl have baen met. The 5ecretary af tabor may
require 1t►e conlrastor to se! aslde In a separats accounl
esaets !or the meeiinq o! obifgeliona under 1he plan or
program. (Approved by the Oifloe ot Manegemenl anQ
Budget undet 03N0 ConErol Nuinbar l216-01�O.j
2. Withholdinq. HUO or I!� dealgnea shall upon tts own
aclion or upon wrilten tequeet of an aulhnelxed
repreaentallve of tha F3eperlmanl of lshor withhold or
cause #o be wlthhetd irom !he aonlractor under lMia
cpntract or any olher Fede�al contraei with Iha same prime
contractor, or any othet Federally•asaisted cantr�ct
aubjeot to Davla•Bacon prevafling wage requlfer�enla,
whlch Is hetd by tha same prEme conlractor sa much o! ihe
aacrued payrnente or advances a4 may ba conaldered
neaessery !o pay 19bOfAfS �n� rnechanlcs, Inctuding
epprenlEce�, tralnse• an� hekpers, empkoysd 6y the
canlraclor or any aubconlractor Ihs lull amount o! wage�
requkrad by fhe contract In the eveni af taiiure to pay any
lasorer or mechantc, 4nokuding any appre�llce, iralnea or
helpar, amployed or working on ihe aite at t�a kvork, all or
parl af ihe wagee requlred by Ihe oonlraat, Htii3 or ita
designae may, aflor writlan naUce io the contraCtor,
sponaov, applloanl, or owner, lake auch acllon ae msy be
necesaary to causa lha suspenafon of any furEher
peymenl, advance, o► guaranlae ai funds unlil such
vlolallonb have ceased. HUD or Ile deslgnee ni8y, afler
wrftten notics to ihe conlraclor, dlaburae auch amountt
wlthhsld for and on account of fMa contraclo� or
suhcontreclor to the respective empinyesd lo whbm fhey
are dua. 7he Complrollar Generel shall make 9uoh
dlabursemenle In Ihe casa ot direc# Dav�s-Baaon Act
contracte.
communicated kn wril[ng to the labarers or mechanlcs
atfecled, and record� whlch show the cnale anllctpeted or
tha acluai coak tncurred In p�nvidknq such benellta.
Contraclors emplayinp appreotines or lraEneaa under
approved progvam� shalf malnlaln wrlltan evldence ot Ihs
regfatration af apprenlfceahlp programs snd oertNlcaUon of
taaEnee program�, Ihe regiatratian of Ihs apprenUcea and
lrafnee=, a�d the railor and wage rales prescrlbed in the
appllcahla progiame. (Approved by the �lfloe of
Management and �udga! ander 4M� Contral Numbars
4215•4140 and 12t5•OQ47.�
��q {�) The contractor ehall aubmlt weskly Tor eeah week
irt which any cor�traot work is �erformed e copy o! all
payvoli� to NUU or Ita de�ignBe it Iha agency i• a party to
the contracl, bui it fhe aganay I� not auch a party, Ihe
canlcactar wllf submii tha payrofi• lo ihe appllcanl
sponsor, or awner, ae the case may da, ror Iranamisatan !o
HUQ or its dsalgnee. The payratl• aubmilled shali sel ❑ut
accurately end compleleiy ail of Ihe Information required
ta be mainlalned under 29 GFR 5.5(8)(3?�k) BKCep1 thal ttfll
soclal seourlly numbers and home addraeaes ahall nol ba
lncluded on weekly trannmitlal9. Inatead the payrolls ahall
only need to InClude an indlvldually IdentliyEng num6er ipr
each emplayea (e.g., tha ka�t laur dlglta ot the emptayae's
soclai aecurlly numbet). Tha requltad weekly paytoll
Informalian may be submitled tn any form deaired.
Opifonaf Form WH-�47 la avallable for Ihts purpoae Irom
the w�a� and Hour Divleton Wab slle ei
hf1p:11www.dal.aov/esa/whdlformaL�h�4Zln�fr htm or !ta
sucaeasor s1te. The prlme contractor I� reeponaEbia for
fha aubmleelon af caplem ot payrafla by al! subcanlrgcEora.
Canlractara and subonr�trnalora aha11 msinlafn the full
social securEty number and curren4 addreat o1 each
covered worker, and ahail pra�ide them upon request !o
�iUO ar Ile deslgnee if ihe agency fa s party io the
eoniracl, bu4 H Ihe agency le npk such a party, !he
contracko� w111 submit the payralls to Ihe eppklCant
aponsor, or owner, as !he ca'e may be, for Irensmlasion to
HUD or Ita deslgnea, Ihe conirector, or the Wage end Hour
Divis�on af Ihe Deparlmeni ot Labor for purposes ot an
invesllgatlon or audfl ot cpmp4lance wlth prevefiing wage
raquirementa. !1 Is not a vfolatian of Ihle subparagraph for
a prlme contraclor to require s subcontractar io provida
addreases and aoCtal securiiy num6ers 10 the prime
conlraclor far it� own racordo. withaut waekly submlesion
ta NUD ar its deatgnee. (Appro�ed by Ihe Oilice ol
Managemenl and Budge4 under �F�48 Gonlra) Nurttber
1215•Q149.j
weekly number oi hours warked, dsducllona mada and (bE Each payroik suhretiited ahafl be accompeniad by a
aatual wagae paid. Whdnevet Ihe Secrelary at Labor t�a� 'Slalament of Cnmpliance,' slgned by !he coniractvr nr
lound under 24 CFR 5,5 (a}(1)(1v� thai Ihe wage' af any yubaontractar or hla or het agant who pays or supervfaes
19bOf9F or mechBnlC inclaae !ha amounl ot any coets the paymenl of the persona amployed under �he conirac!
reaeanabty antielpated !n provlding beneftts under a plan and shall ceriity ihe lollowing:
ar program deacribad In Secllon i{bj{2)(9y o! 11�e pavle- ��) Thai ihe payraq far !ha payrpl! parlod cankaina the
Eiacon Act, ihe contraclar shall maintain recorde which Informetlon requirod !o be provlded undar 29 CFR 5.5
show lhal 1he commllmenl to provlde suct� beneftta la {s)(3}(ki), lhe eppropriale informalton is being mainfalned
on}arceable, the! ihe plsn o► proqram ia ifnanclai4y under 24 CFR 5,5(aj(3y{E), and thal euch tnfprmetion la
reaponalbie, an� Ihat the plan or program haa been correct and compEele;
Previovi adkllo�s are pbaoleto forcn HE![?-40f0 (�8120o8)
Page 2 of 5 raf. Handbook 13M.i
3. (I} Payrolts snd basic racord�. Payrolle and bsslc
rqcprda ralalEng therato ahall be malnlslned by lhe
conlractor during the couraa ot ihe work praeerved (or a
period of Ihree yoart thereattsr tor �I! labarcra and
meahanlca warking at �he slle of Ehe wa�k. Such records
shall conke�n the name, addreas, and saelal securiiy
number ol each such worker, hE� ar her correc#
ciasaillaatlon, hourly rates of wagea peid (including rates
of contributlona or coels anllclpaled for bona itde frtnge
benaNl� or cash aqulvakents lhereol of ihe lypea desC�ibed
In Sectlon I{h}(2}(Bj oi Ihe Davie•bacan Aet) daily and
(2j 7hat each labarer or mechar►Ic (Inctuding each hefper,
epprenEice, and Irainee) empkoyed on !he contrac! during
!he payroil period haa been paid Ihe (ul# weekiy wages
earneA, wllhoul rebala, either dlraclly or indkrectly, and
tha! no deducllons ha�e been made eilher dlrecUy or
indireclly Erom �he luEl wages earned, alher lhan
permEsslble deductlons as set torlh in 29 CFR Parl 3;
{S) Tha! oach iaborer or mech�nic haa been paid nol iess
lhan Ihe appticable wage ralea and trEnge benellts or cash
equl�alenls lor ihe ciasa)ticallon o! work periormed. as
speci4ied kn the appllcabte wage delerminallon
incorparsted into the conirsct.
{c} The waekly submission af a properly ezecuted
certillcallon set forth nn Ihe reverse side af �pllonal Form
WH-�47 shall sa#isly the requirement fer submission of the
'Stalemenl a( Compllance' requlred by subparagraph
A.3.(ii){b).
{d� Tha falsillcallon of any of the above ceriiticakions may
sub�ecl !he cantraclor or subcanlraclpr io civlE or criminal
prosocution under Seciian 1001 of Tiiie i8 and Seclion
231 of TiiEs 31 a# the Un1led S!alea Gade.
(II!) The conlractor or subcontraCtor shali make lhe
recorda required undar subparngraph A.3.(ij availsble for
Inspac!lon, capying, or lranscrtplion by aulho�lzed
repraseniat"svea oi HUp or its designee or !he �eparlment
af Labor, and shafl permil sucn raprosenlalives l0
inEerview empioyees during working houra on !he job. If
the coniractor or suhcentractor lsils lo submi! ihe required
recards or lo make them avallabia, HUD or I!s designee
may, afler written noi€ce lo lhe Conlraclor, sponsor,
appticani or awner, lake sueh actfan as may be nacessary
to cause the suspenslon of any furll�er payment, advance,
❑r guarantee of funds. Furlhermore, Tallure lo submit lhe
requirad records upon request or !a make such records
availablo may b& grounds far dabarment aclian pursuan! ta
29 CF�t 5.12.
4. Apprenikce� pnd Traineea.
(I} Approntices. Apprenhces wili be permittesd Io wOrK al
less Ihan Ihc predetermined rale far ihe work lhey
periarmad when they ara employed p�rsuan! lo and
�ndivlduafly registared in a bona itde apprenllcoshlp
pragram registered wIlh lhe U 3 Dnparirrienl of Labor,
Emp[oyment and Training Adminislralion. OfFice of
AQprenticeship 7raining, Emp[oyer and Labar Sorvices, or
wllh a 51aEe Apprenliceship Agesncy recogMzed by Ihe
O#i�ce, nr if a person Is employed in hls or her flrst 90
days of probationaiy empioymeni as an apprenEice in such
an apprenliceshkp program, whe is not indivfdually
reg�slered i� the pragram, but wha has been cerliflad try
!he OTflce at ApprentiCeship Trait�ing, Entployer and ta�or
Serv�ces or a 5laEe Appranlicasriip Ayency (where
appropriate) lo be ellgibles for probailonary emplo.yment as
an appresniice. ihe a[lowable ratio of apprenticos io
�qurneymen on lhe �oh sile fn any crall classification shaii
�o! De greatpr ihan Ihe ratEo pormi!!ed lo tt�e conlractor as
la !he enl�re wo�k Iarce under Ihe regislered ptogram Any
worker listed on a payroil al an appronlice wage rate who
is npt reglslered ar olherwise empinyed aa slafed Above.
shalt be pafd not lesa than lhe appitcable wags rata an lha
waga deEerminatlon lot Ihe tlassllicatian of wark aclualty
perforrrted. in addillon, any apprentice perTorming wprk on
the Job site In excess af l�e raiio parmltted under ihe
regl�leeed ptogram shall be paid npt ieaa lhan !he
apgllcable wage rale on Ihe wage delerminalion !o� !he
wark actually parformad. Where a contractor la performing
conslrualion on a project In a locality olher Ihan lhal in
whkch lis progtam Is reg�stered, the rallos and wage rales
(expressad in percentageti of ihe journeyman's hourly
►a!e) specilled In Iha contraCtaPs or subconttactor's
regislered program shakl bs observed. Every apprentice
must be paid a! no! less Ihan iha rale apecified in the
reglslered program !or the apprentice'a level ot ptogrese,
expressed as a percenlage oT the journeymen haurly raie
specfiled In the applicable waq� deEsrm[nallon.
Apprentices shall be paid iri�ge bene[Ha in accardance
wiEh ihe provlsians af !he apprenticeshtp prpgram. if Ihe
apprenilceship pragram does nol specify iringa benaflts,
apprenitces muai ba paid !he fuil amount of fringe bene[ils
Ilsted on Iha wage delerminalion for Ehe appiicabie
classlficallon. If the Administrator delarr�ines Ihat a
differen! praGice prevails !or Ih� �pplicable apprantice
classi/IcaEion, fringea shaEl bs paid In accordance wiih thal
deierminaiion. !n the eveni fhe OffiC� of Apprenticeship
Trafning, �mployer and Labor Servicea, or a 5iale
Apprenticeship Ayency recognlzed py ihe Offlce,
wilhciraws epproval ol an apprenEiceship program, Ehe
conlractar wlll no Eonger b� permilled fa uiillze
apprenlices ai leas than the appliCdbfe predelermined rate
for !ha work pertormed untll an acceplable pragram is
approved.
(Ilj Tralnaes. �xcept as provlded in 29 CFR 5.16.
Irainees will nol ba parmllEed lo work al lesa than !he
predeterminad rate #or !he work periormed unless they are
employed pursuant ',io and Indivldua�ly reglslered €n a
prograrn which has received prior approval, evidenced by
formal carliflcalion by ihe U.S. Daparlment of Labar,
Employmnnl and iraining Adminlslralian. The rat3o at
lrainees !o )ourneymen on the job site shall nat be grealer
than pflrmltted undar lhe plen appraved by lhe
�mploymen! and Training Adminlslretian. Every lrainee
muat be paid at not less Ihan !he rale specitied in the
approva0 program (or !he trainep's leval o} prograss,
expressed as a percenlags of Ihe )ourneyman hourly raEe
specitled in Ihe appllcable wage determinalion Trginaes
shall be paid trinc�a benefits in accordance with the
pro�isions of the lrainee pragram !! Ehe traines pragiam
does no1 meniian iringe benelkis, lraineea shall be paid
Ihe Eull amount oi frange beneiils !isled an Ihe w�ge
delerminatinn unless Ihe Adminislralot oT tho Wage and
Hour []i�iaion delermines lhal Ih4re is a� apprenlfceah�p
program associated wilh iho corresponding journeyman
wage rate an the wege determinatton whlth provldes for
tesa lhan fulf Iringe benafits for apprentices Any
employea Neled on Iha payroll al a lrainee rale who is noE
regislered and parlicipating fn a Irainkng pian approved by
previous eddlons a�e obsolela form NUD-�010 (08J2009}
Rage � oi 5 ref. Handbook 1�44 1
� �� r
!ha �mpioymeni and Training Admfnfslratlan shall ba peld
nat lesa lhan ihe applEcabla wage rala on the wage
determinaltan for Ihe work aclualiy performed. In addlttan,
any trainee performing• rvork on the jab slta in exceas ot
the rallo permilled under tha regkstered progrem shafl be
paid not la�s than tha appllcabte wage reta on tha wage
delerminalion fo� !he work actually pertarmed. in the
evenl the �mployment and tFalning Adminlslrallon
wlthdraw3 appraval oF a lralning pragram, ihe con{raclot
will no longer be permilled lo u#illxe lralneea at lesn than
the applicabie predatermined rale lor the �rrork perlormed
until 8n acceplebfe progrem fs approved.
{IIIj Equal employmont opportunity. The ulfllzatEon of
apprenlices. !ralneea and jaurneyman undar 29 CFR Part 5
shal! ba in conformily w1Eh the equal emplpyment
opporlunily regulraments of �xecutive Order i 1248, as
amended, and 29 CFR Part �0.
!f. Gompflanca wkth Copatand Act roquiraments. The
cpnlractor shalf comply wilh !he requirements oi 29 CF12
Parl 3 whfch are incorparatact by roference In Ihis eontract
8. 3ubcontrac!'. The eanlraclor or s�t�conEraclor wilf
inseri in any subconlracts the clausea corrtafned In
subgaragr�pha 1 Ihrough 11 in lhie paragr0ph A and such
olhor ciausee aa HUD or its deaignee may py appropriale
instrucllona requlrs, and a copy ot Ihe appllcable
prevailing wage decislon, and also a clause requtring lhe
subcontrac�ora tp inalude these cfauses in any lower iier
subconlrecis. The prlme contraolor ahali be responsible
br Ihe compliance by any subcontraclor or fower lier
subcanlractor with a!! ihe conlract clauses in ihis
paragraph.
7. Contract tvrminaNqn; debarment, A breach ol lhe
conEract clauses In 29 CFR 5.5 may ba grounde Iar
t�rminatian of ihe conlract and for debarment as a
coniractor and a svboontrector as provldad in 29 CFR
5.12.
8. Compllanca wfth pavis-Bacon ant! Related kcl Roqulraments.
All rulinga and Intarpratatlons af Ihe Davfa-Bacon and
Relaled Acta contslned [n 29 CFR PAf�9 i, 3, and 5 are
har@in incarporaled by reterence In lhYs conlrac!
6. Dlspulos coneArning lahor slanderdr. Dlsputes
arising out of the iabor standards pravislons af Ih�s
canlracl shaEl nat bQ sutrJ�ct lo ihe genaral disputes
elause ot this contract. 5uch disputes shali b8 resolved in
accordance wlth tha procedures af fhe �eparlment af
l abor se! fortt� in 2g CFR Parts 5, 8, and 7. €3lspufes
wilhln the meaning oi tMia clause Include dispules be#ween
Ihe conlracinr (ar any aE i!s subcaniractors) and HUp or
Ft8 Qesign�g, the U,S. Departmenl ef Labor, or ihe
ernployaus o: the[r rapresenta��ves.
10. (ly CBrliNcation oi Ellglblllty. Ciy enle[3ng inlo Ihis
conlract !he conlracfor corlifiBs 3hat nailher il (nor he or
she} nbr any pQrson or flrm wha has an inlerest In ihe
conlracior's lrrm Is a per9on or f�rm inellg3tsls to be
awerded Gove�nment contracls by virtue o! Section 3(a) ol
ihe Oavis-E3aGon Act or 28 CfR 5.12(a}(1) or lo he
awarded HUO conlraCts or participale in Ftt1p programa
pu�suanl to 24 C�R Parl 2�.
f��l No Rarl of lhis cpntract ahali be suDcontracled !n any
person or fl�m ineilqibla for award oi a Govarnman#
contract by virlue at Sectfon �(a) of the Davle•Bacon Act
or 29 CFR 5.12(ej(1) pr to ba awarded HU� conlracta ar
parllcipale in HUa pragrams purauant !0 24 C�R Parl 24.
(Illf The penaEly for making falae slatementa Ea prescribgd
In the tJ.S. Crimlr�al Coda, 18 U.S.C. 1001. Additionaliy,
U.S. Criminal Gode, Secilon 1 U1 D, title 18, U.S.C.,
"�ederal Houaing Admtnislretion tr�nsacllona', gravldes in
pari: 'Whpaver, for the purpase of ... InfluenCing in any
way the actlon o} such Administralfon...,. rnakes, ulEers or
publlehee any statemer�t knawing !ha same to b8 fafse.....
shafl 6e flned nol mote thaa SB,OOp or imprisoned nol
mpre than twp yeaFa, or bpt�.'
�1• Campfainls, ProCaadings, or Tostlmony by
Employess. No labarer or mechanlC ta wt�om Ihe 4rrage,
salary, ot other lahor siandards provisions of t�ia Conlracl
aro appiicabls shall bs dlschargad ar in any olher manner
dlacriminaled agalnst by khe COAIfBC�O� ar any
subaoniractor because auC� employee has filad any
complainl or instltuted or caused to be Inalliuled any
proCBedk�lg or t►aa lastlfied or is ahau! to leslkfy In any
proceeding undar or relaiing to ihe labor standards
appllcabie under thia Conlracl lo his amployer.
H. Canlydcl Work Hours and Safety 3tandard� Act The
provielona of ihle paragraph B are applicable where lhe amount of !he
prime cnnt�acl exceeds �100,0p0. As €�sed in Ehis paregreph, tha
lermd'Iabarers"and'mechanlcs'lnclude watchmen gnd guards.
E11 Over!!me rflquireman;s, No conlrednr ur su#�conlracto�
conlracting for any part oE the conlract work rMifch may requlre or
Involve 3he employmen! of faborere nr mechanics shaN require or
permil any suoh laborer or mechanlc fn any workw�eek in which the
indlvidua! Is empfoyed on such wwk to twrfc in excess of 44 houra in
such workweek unless suth laborer ar mechanlc receives
compensaEion ai a raie nol lesa lhan one and one•hali ifinee the bas�
rale of pay for a11 houra warked In expeas nf 4Q houn in such
woticvreek.
{2} Vlolallon, Ilahiiity !or unpefd wages; Ilqutdatad
damages. In the even! of any v�aiatfon o[ the cla�se set
torth ifl subparagraph {i} of ihls paragraph, Ihe conlraclot
and any subconlreclor responslble thereEpr shall ba liable
for the unpald wagea. In addHion, auch contraclor and
subconlractor shait be Ilable Ip ihe Uniied SEatea {in ihe
case of work done under coniract lor lha �isiric! o(
Colnmbfa or a lerrllory, lo such Dlair�ct or !o such
terrlEoryy, for liquideted damagea. Such Iiquidaled
damagea ehaEl be oamputed with resQeC! to +3ach indi�iduat
Iaqorer or mechaniC, Including watchmen and guards,
empbyed In vloialion of lhe clause seE forlh ln
subparagraph ( 4) of Ihie paragraph, !n (he sum oi;10 !or each
caEendar day an which such Individual �ras requirad or pertnstled lo
uroik fn excass of Ehe staridard v�nork+rreek p} 44 hours relhpul paymer�t
of Eha overtlme wa�es required by Ehe clause sei forih in sub
paragraph (1) pf this paragraph
Ptevfous edrliong aro o�solel9
form HUD�40t0 (08l2AOgj
Page 4 of 5 rel. Nendbook s344 !
(3� Wlthholdlny for unpald waqas and iiquEdated
damago�. NUn or Ite daelpnee shall upan Ila own actlon
or upnn writtan ra�uaet oi an authorized repaesontative of
ihe Oepartmenl pt �.abor wllhhpid or cauae lo be withhald,
irom any maneys payable an acCounl o} work pertormed by
ihe conlraclor or subconi►aclor under eny suci� conlract or
a�y othat Federal conlrect wllh Ihe same pNme conlract,
or any other Faderally•aasleled conlracl aubJeci to the
Conlract Work Flours and Sefely 5tandards Act whlch la
held by tha eamp prlme coniraclar such eums aa mey be
detarmined lo be necea6ary !o salksiy any ilabiiltiea of
such contractor or subcontrectar for unpald wages a�d
IkquEdaled damagee ae provided In the Ci8k16E aet (orih In
subparsgreph (2� o( lhEs paragraph,
(4y Su6contract�. The contracfor or su6opnlr�c�ar Sh81E
Inserl In any subContracka Ihe ciauaas ae! fotth in
subparagraph (1) ihrough (4) of thia paregraph and also a
clauae requirVng the subcontractor9 io inciude thesa
clauaee in any lower IEer su6conlraois, The prime
contractot shaU ba responslble for compilance by any
aubcont€actor or lower liar suhcontraolor wlth Ihe clausea
sel fprth En su6peregraphe (1j Ihrough (4} p! this
paragraph,
C. Haelth end 8afoty. Tne prov�slons of lhia parayraph C are
applic$b{e whete Ehe amounE p! Ihe prkne contrsct exceeda t1D0,Opp.
(1) No IaDarer or �nechanic shall be raquirad to work in
aurroundingd or unde� wprking condi(lone wMlch ere
unsanitery, l�Rzardous, or d8ngeroua lo his heslih and
sa{oty as dolermined uncfer conatructlun safety and heaith
slanderd8 promulgated by lhe 5ecretary oi Labor by
regulatlon.
(2} The CanUactor ahell comply wiit� all raguiatlona
Issued hy the 5actelery o( I.abor pursua�l to T!!Io 29 Pqrt
1926 and faliure lo comply may rasult !n impoaqion of
senctiona pur�uant to the Contract Work Ho�rs snd Safety
Slandsrda Act, (Public Law Q1•54, 83 Slat 88}. 40 U5C
�7Qi e! aea.
{3) 7h� contracior ghaN Enclude Ihe provislona of Ihls
peragraph in avery subcanlract sa Ihat such provlslnna wi11
be binding on eech subCtlntractar. The contraCtor 9hall
take such aclion wiih raspect Eo any subcon[ractot as the
5ecreiary of Houaing and Urban E3evelopmeni ar the
Sacretary o! Labor shalt dlrect aa a means oi onforcing
such provisions.
Previoua editlnne sra obaolote iorm HUD-46i0 (O6u2QQ9)
Pape 5 ot 5 rpf. linndbook 1344.1
EYHIBIT "H-1"
�vf�r� nEc�sroN
. .. . ,
�... . , < : �„ -_ . - -
s
�f� Q, ���
Pr�ge L tif;4
. .
, ,,. .,.
, ,
. ,,
�- .
Gbneral �]e�i,sion i�umki��c' �x13flo2� �1�0�/24�3 �'xx�
� , < - _ ,
3u��rseded:° G�ae.r$�. D�ai�iarr Numbe�:,.'�X�O��bQ�,S
y` j
stet� �i@xs18 ` - r, �
COrt�txua� ,. ;. , ,.�
ion :Types• tteeidet�t�a�.�: .
� � cbur�tioe a;� Joh�a�n�,. . ��rker : arid. Tarran� • �Cc�rxtiear' �n ��xas. ,
E��� . , �
Etes�den�lak Fro�dctn. cdnaiati�n.g o.�''.a.i;ng�e lam3l:y ttamea: and�
agartments u�r, to •anc3� i�c�uci�i�q °4 st4iiea. '_
: Mad��Ei�ation Number publiaat�.an Da�g
0; , 1�1f04/2013�
" st3TXI99��02�; 0.4/01li99t�
ftate9 ��istiqea.
CARPEE�xE� `( �xa�ud3i�q dryw�l.�
hanginq` ai�d �o�n se�tinq) . . . . .. . $ 9.3iS
CEMEI�!'�` M�ISONIC�NCRE'�� '
EINISHE� (Excsl�,ding �otm
settinql .........................$ 9.A8
�RYWALL HANCY�fi... ................$ 3.00
EI.�CT'RICiA�I . . . . . . . . . . . . . . . . . . . . . . S 10. 214
E`orm SekCer ......................$ 9.194
HVAC MECHANTC (inciuding
duct. oxalucling p�pe workl ....... S 9.337
Labor�r, co�an ..................$ 7.25
Painterst
ozust� .......................$ 9.9�
5pray .......................� 10.fl�
PLUM�3�R 41ncl�dinq ifVAC :�ORK�....$ 14.687
iiQc3FE:R, Inciur3inq f3uilt U�S,
Compor�itidn and 9ingl.e E'ty
:taaEa ............................5 d.6��r
5heet .ReCa1 ;Rarker {�:cc1u�lfng
�fVAC-duct �rork} ..................5 14.iO3
rzG� SE'l`TER ......................5 ti.50
TItUCK �t2TV�[2 . . . . . . . . . . . . . . . . . . . . . S 7. Z5
SfEt,p�R9 -- Etecu�ve rat� prescrihod for craft performiE�g
��geratian to which �.«1.<linq i9 inci�3�nta1.
—I1ttp:Ih�ww.w�lol.�cav/�uiiol��:�iil�elcinvisbAca�nlI`�CZS.ciVh`Ive-4_---.------..---- -------,—.-- -1J1912013
Pag� 2 of 4
WELD�RS -- iteceive rate prescrfbed for crafti pgrforminc�
apera�ion tn which welding is inoidental..
m aGtOsm�aalF.,"S�kYCt�l� aY�iam0m�1 WF�ffivtc'ydiamQaO�AR�i19RIIAf CY1eSa��a�Ai3R0.Ct�1 tll� d�a daa�
Unlisted classifications naeded �or work nat included within
�he scope o� the classi�ications lis�ad may be added after
award only as prnvidec3 !n the labor standards contract clausea
{29CFR 5.5 (a) (1) (iij).
The body oE each 4aay� daterminatian 1isCs the class�fication
and wage rates tha� have been found to be prevail�ng far the
cited type(s) oF constrt�ction in the area covered by the waqe
detarmina�ion. The clasai�icationa are 3.isted f.n alphabe�ical
order of "identifiars" �hat indicate whether Ghe �articular
rate is union or non-unf.on.
[lnf.nn TdentiEiers
An idenCifier enc.tosed in dotGed }.ines beginning with
charaarers other �han "SU" denotes thar the unian
classi�ication and raCe have fouttd ra be prevailinq for ��at
classa��.catiion, Example: PLUM0198-005 07/OL/2011. The first
�our le�ters , PLUM, inciicate tha internationaL unfon and the
Eour-dlq3.t number, 0198, that follows indicate� the loca2 �naon
number or district cauncil number whera applicable , i.a.,
Plumbers Lacal 019n, 'Che next numbar, �OS in the example, is
an interna�. number used in ptocessing the waqa cietermination.
The date, 07/O1/2011, foliawinq these characters is the
efEective date of the mosC currenr negotzared rata/collective
bargazning agreemerit which would be July l., 2011 in the abova
example,
Union prevai,�.zng waqe rates will b� updated to reflect any
changes in the coif.ectivP bargaining aqreements govexning the
rates.
0400/9994; weighted un�on waqe rates wi1,� be pubLished annually
eacl� January.
Non--Unaon idenCifiers
Classiff.cati.ons listed under an "3U" identiEier were derived
Erom survey data by camputing average ra�es and are naC uniort
rates; however. the data used ir� compuCirtq these rates inay
inciuc�e both union anc# non-unian ciata. Example; SULA2004-QO?
S/l3/?_010. SU indicaties the ra�es are nat union majority rates,
LA indica[eg the State of La�.tisiana; 2009 is the year oE the
sur�ey; and 007 is an internal number used in producinq the
waqe deCermination. A}.493 or later date, 5/13/2010, Lndi.cates
the classiE'ications and r3tes uncier that icientifier .+ere issued
http://www.wciol.�ov/wdo�/sc3filesJtiavisbaeaNTX25.dvb?v=0 �I l �)!2{? I 3
P�ge 3 of 4
as a General Wage �etermina�ion on that da�e.
Survey wage rakes wi�1 rema.in in effecC and wfll not change
until a new survay is cancluctsd.
WAGE DETEE'tHf�NATiON AQPEALS PROCE58
1.) �ias there been an iniCial deais�on in the matter? This can
be:
• an existing gublished wage determinaeion
* a survsy unclerlying a wage determination
� a'rlage and Hour i3ivision letter setting forth a�osition on
a waqe deCermination �natter
* a conEormance [additional clasaiEication and rate) ruling
On survey re�.ared ma�tiers, ir�ftial contact, .inc.�uding requests
£nr summaries of surveys, should be w1.xh the Waga and iiour
E�eqional Office for the area in which the aurvey was canducted
bscause thase Eteqiona3. Offices have respona.Lbl.lity for the
E]avis--Bacon survey �ragram. IE the response Erom this initial
contact i� not sat#.�factary, then the process described in 2.)
and 3. } shou.id ba xall.owed.
Wi�h reqard ta any ott►er ma��er not yet ripe for Che formal
process described here, i.n�.�.ial contact st�ould be wirh the
33ranch of Constructior► 41age DeterminaCions. Write Co:
i3ranch oF Construct4.pn Wage l3eterminatzons
Wage and Hour Div�sion
U.S. Department o� Labor
200 Constitution Avenue, N.W,
Washinqton, DC 2421€3
2.) i� the answer ta the quesrion in 1.} i� yes, then an
lnteresCed �Sarty [tihase affectad by the acrion} can requesC
review anc# �econs.ideration Erom the Waqe and Hour Aciministrator
(5e� ?.9 CER E'arC i.8 and 29 CFR Part 71 . r�lC1Ce ro:
'rt�ge and Hour Administratar
U.S. [JePast[�ent oE Labar
7.00 Cons�itution Av�nue, N.W.
'r�asi�inqton, �C 202�0
'�he request sho�ld be accompanied by a EuLZ statemenr of the
inCerestecf party's position and by any inEUrmar.i.on [waqa
payment data, project description, area pzactice material,
et�c.} that t}�� requesCor considers ref�v�tnt ta the issue.
3.} �E ��ie decision of tt�e AdminisCrator is not favorable, an
interesred �aarty may appeal dzxectly Co the 1�ciminis�raCive
Review F3aard {formerly the `rlaqe Appeals Soard} , r�riCe to:
Administrative Review f3aard
U.S. Uepartment oE Labor
2a0 f.:o��stituCian Avenue, �.'rf.
Washinq�on, DC 2c)"1_10
http://�vrvw.wdnl.gov/wdolfscati les/da�ishaconfi'X25,�i�t�?v-0 ��/ 1912t) I 3
P�ge 4 of 4
4.) All cieci.sians by the Admin.istrative Ctevfew Board are fina.L.
� wFnsaaa.asaoesarsrsa�^=—csassw w�ssc�:aaer�amrarae.cmmams��xa�.u� a� rancraau.r�see�qsas�aessas�rr
�[3� aF GENL�4iA?, DECI9ION
http:/ltivivw.wdol.govlw�olls�atiies/cia�isbacorYl'X2S.dvb?v-0 t3/ I �/2Q ! 3
EYHIBIT "H-2"
CONTRACTOR INFOItMATI(3N FORNi
Clty of Fa�rt'�Varth
Comm��nity Devetapment Btock Gr�nt (CDBG)
ConstrucNon ProJect�
CQNTRr�1CTOR INFURMATION
D�te:
Pro�ect•
ContrActor:
Address:
City;
TeEephone:
�ecier�l I.D. #:
�E�icers of the Corporation:
President:
Vice President:
Secretary;
Treas�irer:
If sole c�wnership or partnership, list owner{s};
Fax:
[ certify �# the time of exe�c�iEion, t�erec�f, neither my co�npatty nc�r my corp�rttt� of#icers (if
incorporateci} are listed irt ttte list of Debanecl, Suspended, tind ine�igible Cantractors rnlintained
by the U.5 Dep�-trr�enk ot Housing and Urban Devclapment (HUD).
51 �TI�CiIF�:
EYHIB�T "H-3"
SUI3COyTItACTOR 1NFORl�iATION FORiL�
Clty of Fort Woxth
Cnrnmunity Deve�vpmeat 131ock Gra�t (CDBG)
Co��tructfon Project�
S BCON O INFORMATYO
Date:
I'roject:
Subcontr�ctor:
Adciress:
Cl�jl:
TO�ep#IQ11c: �
Federal I.D. #:
Of�icers of the Corpor�tion;
Fresident•
Vica President:
Secretpry:
Trensurer:
IFsole ownership or �artnership, �ist owner(s):
Fax:
[ certify at #he time of execittion, hereof, �either my company nor my corporate of�icers {it'
incarporated) are: li�te+d in the [ist of Deh�rrec�, Susp�.�nded, �nd Ineligible Cott#r�ctot-s m�intained
t�y the U.S Departrnent o£ Eiousing and [)rbnn DeveEopm�nt (HUD).
S ignatur�:
EYHIBIT "H-�1"
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and ilrban Development
l,ahor Relatians �esk Gutda
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iNTRooucTfioN
This Guide has been prepared for y�u as a cvniractor performing work on construction pra��cts
that are assisted by the Departm�nt of Hausing and Urbar� DeveEopme�t a�cf subject to Davis-
�acon prevailing wage requi�ements. T�is Guide daes r�at address conkractor requirements
involved in �irect Federal cor�tracting where HUD a� anot�er Federal agency enters into a
�rocurement cantract. !n #his latter case, ttte Federal Acquisitior� Regula#ions {FAR) are appli-
cable. Whife the guidance contained in this Guide is ger�erally ap�licable to any �avis-8acon
caverecf project, specific questiorts pertaining to direct Federal contrac#s sl�ould be addressed
to the Contracting Officer who signed the contract far the Federal agency.
�ur objective here is io provic�e you with a guide which is simple and non-b�reaucratic yet
compr�hensi�e and which will help you beiter understar�d artd comply with Davis-Bacor� labor
stancfards. HUD's Office of �.abor Relatians worEced closeiy with the De�artment of �abor's
Wage and Hour Division ko make sure that t�e labor standards provisions fn your contract ancf
t�e specifics of complying with t�em represent the latest iniormation. It is the Department af
Labor which has general administrative oversight of all FederaE contracting agencies, such as
HUD, which administer #he day-to-day responsibili#ies af enfarcir�g Davis-Baco� provisivns in
construction con#racts they either fund or assist in funding.
There ar� thrae chapters in this Guide. Tt�e �rst chapter offers a brief descriptiart af the laws
anci regulations associated with Federal labar standards administration and enfo�cement and
discusses both what's in yaur c�ntract tha# req�ires Davis-Bacon com�liance and your respon-
sibilities. The second chapter cfea[s wi#h labor stan�ards ar�d payrall re�ortirtg requirements,
T�e kMird chapfer discusses what can happen ir� #he �vent there is a�ispute about t�e wag�
rates that shoulcf he {or have been) �aid and any back wages that may be due.
Finafly, not all HUD construction �rojects are covered by Davis-Bacon wage rates. Far the pur-
pose of this Guide, we are assuming that a determinatian has already been made that Davis-
Bacon wage rates are applicable. Sha�Ed you wish assistance in de#ermining whether Da�is-
Bacon wage ra#es apply to a par�icular project or if you r�eed other related technical assistance,
please consuit with the HUD L.abor Relations Field staff for your area. If you don't know which
staff to cor�kact, a(ist of Lat�r�r Refatior�s �eld offices and their geographic areas and #elephar�e
numbers can be found on HUD's Home Page at the address �elow,
Visit the C}fflce of Labor Relations nn-lir�e:
ht:/ w ,h�d vof � o
Obtain additianal capies nf this Guide and other pubiica#ia�s at our website ar by telephone
from HUD's Cus#omer Service Center at {SOQ)76i-7468.
TABLE OF C�NTENTS
INTRO�UCTION ................................................................................................................ i
CHAPTER 1 LAWS, REGUl�AT10NS, CQNTRACTS
AND RESPONSi81i.,ITIES .................................................................1-1
'! -1
1-2
1-3
� -a
'! -5
DAV1S-BACON AND OTHER LABOR LAWS . .......................................................1-1
a. The Davis-Bacon Act {DBA) .........................................................................,.,...1-1
b. The Contract Work Hours and Sa#ety Standards Act (CWHSSA) ......................1-1
e. The Copefand Act (An#i-Kic�Cback Ack) ................................................................1-2
d. The Fair Labor Standards Act (FLSA} ................................................................1-2
DAVtS-BACON REGULATIONS .............................................................................1-2
CONSTRUCTION CONTRACT PROVI510NS.............. .........................................1-2
RESPONSIBtLITY OF THE pRINCIPAL CONTRACTOR ......................................1-3
RESPONSIB�L�TY OF THE CONTRACT ADMiNISTRATOR ................................. �-4
CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUtREMENTS .............................2-�
SECTION - I THE BASICS
2-1
�
F�3
2-4
THE WAGE DECtSI�N ........................................................................................... 2-1
a. The work classifieations and wage rates ............................................................2-1
b. Pasting the wage decision .................................................................................. 2-2
ADDITIONA� "TRADE" CLASSIFICAT�ONS AND WAGE RATES .......................2-2
a. Additional dassi�catior� rules .............................................................................2-2
b. Makir�g the request .............................................................................................2-3
c. HUD review ........................................................................................................2-3
d. DOL decisidn ......................................................................................................2-3
CERTlFIED PAYR�L� REPORTS ..........................................................................2-4
a. PayroEl formats ...................................................................................................2-4
�. Payrol! certifications ...........................................................................................2-4
c. "No wnrk" payralls ..............................................................................................2-4
d. F'ayroli review and submission ...........................................................................2-5
e. Payroll retention .................................................................................................2-5
f. Payroll inspection ............................................................................................... 2-5
DAVIS-BACON DE�INt7'€�NS ................................................................................2-�
a. Laborer o� mechanic ..........................................................................................2-5
b. Employee ...........................................................................................................2-6
c. Apprentices and kr�inees ....................................................................................2-6
d. Prevailing wages or wage ra#es .........................................................................2-7
e. �'ringe b�ne�ts ....................................................................................................2-7
f. �vertime .............................................................................................................2-7
g. �eciuctions .............................................................. .....2-8
�. Proper designation o� trade ................................................................................ 2-8
i. Sif� af work .........................................................................................................2-8
�
SECTION - Il REP�RTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT ....................................................................2-9
a. Project and contractor/subcankractor informaiian ...............................................2-9
t�. Empinyee information .........................................................................................2-9
c. Wvrk classification ..............................................................................................2-9
c�. Hot�rs worlt�d .....................................................................................................2-10
e. Rate of pay .........................................................................................................2-10
f. Gross wages earned .......................................................................................,..2-10
g. D�duciions .........................................................................................................2-1�
h. Net pay ...............................................................................................................2-11
i. Statement of compliance ....................................................................................2-11
j. Signature ............................................................................................................2-11
SECTI4N lll - PAYR4LL REVIEWS AND C�RRECTIONS
2-& COMPLIANCE REVIEWS .......................................................................................2-12
a. On-site interviews ...............................................................................................2-� 2
b. Project payro�l reviews .......................................................................................2-12
2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORR�CTIONS ....................... 2-12
a. Inadequate payroll ir�formation ...........................................................................2-12
b. Missing identification n�mbers ...........................................................................2-12
c. Incamplete payroiis ............................................................................................2-13
d. Classifications ....................................................................................................2-13
e. Wage Rates ........................................................................................................2-13
f. Apprentices and trainees ....................................................................................2-13
g. Ove rti me .. . . . .. .. .. .. . . . . . . . . . . . .. . . . . .. . . . .. . .. . . . . . .. . . .. .. .. . . .. . .. . . .. .. .. . . .. . . . . . . . .. . . .. .. .. .. .. . . . . .. .. .. .. . . 2-13
h. Camputations .....................................................................................................2-13
i. Deductions .........................................................................................................2-13
j. Fringe benefits ....................................................................................................2-� 4
k. Sig�ature ............................................................................................................2-14
I. On-sit� inkerview comparisons ........................................................................... 2-14
m. Correction certi�ed payrnll ..................................................................................2-14
2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES .............................................2-14
a. Noti�cafion ..........................................................................................................2-14
b. Computing wage restitu#ion ................................................................................2-1�
c. Corr�ctian certified payralls ................................................................................2-15
d. Review of carrection CPR .................................................................................. Z-15
e. Unfound workers ................................................................................................ 2-� 5
iv
CHAPTER 3 LABOR STANDARnS DkSPUTES, ADMINISTRATiVE
REVIEWS, WiTHHOLDING, �EPOSITS AN� ESCROW
ACCOUNTS, AND SANCTtONS,.........,...,................. .......................3-�
3-�I INTRODUCTION ..................................................................................................... 3-1
3-2 ADMINiSTRATlVE REVIEW ON L,ABOR STANDARDS DISPUTES .....................3-1
a. Additionai classifications and wage rates ........................................................... 3-1
b. Findings of under�ayment ..................................................................................3-2
3-3 WITHHOLDING .......................................................................................................3-2
3-4 DEPOSiTS AND ESCR�WS ..................................................................................3-3
3-5 AOMINfSTRATIVE SANCTIONS ............................................................................ �-4
a. DO�. debarment ..................................................................................................3-4
b. HUD sanctions ...................................................................................................3-4
3-6 FALSIFlCATION 4F CERTIFIED PAYROLL REPORTS ........................................ 3-5
APPENDICIES
ACRONYMSAND SYMBOLS ...........................................................................................A-1
DAV15-BACON - RELATED WEB SiTES� ........................................................................A-2
HUD-472n, Prvject Wage Rate Sheet ..............................................................................A-3
WH-347, Payroll �'armlStatement af Compliance ..........................................................A-4
CHAPTER 1 LAWS, REGULAT�ONS, CONTRACTS
AND RESPONSIB#LITIES
The following paragraphs describe what the labflr standards faws and regulations actuaily say
and wi�at they mean to you on HU❑ projects:
�� a •� � ■ • � i. �=�i �1
a. he Davis-Bacon Act (E]8A1. The Davis-Bacon Act requires t�te payment af prevailing
wage rates (which ara d�termined by the U.S. Department af Labor} to all laborers ar�d
mechanics on Federal gove►nment and �iskrict of Columbia construc#ion prfljects {n
excess of $2,OQ0. Cor�st�uction ir�cludes alteration and/or repair, includi�g pai�tting and
decorating, af p��lic buildings vr p�tblic w�rks.
-- _ - : �
:... , , :. F
Most HUD consiructian'work is not covered by the D8A itself since HU� seldam cot�tracts
directiy for canskruction services, Most often, if Davis-Bacon wage rates apply to a HUD
�rajec# it is because of a labor provision contair�ec� in or�e of HUO's "Relat�d Acts" such
as i#�e U, S. Ho�sir�g Act af 1937, the National Housing Act, the Housing and Community
Develapmer�t Act of 1974, t�e Nationai Affordabie Hausing Act o� 1990, and the Nativ�
American Housing Assistance a�d S�If-Determination Act o# 199�, The Related Acts are
often referred to as the Da�is-Bacon and Related Acts or DBRA.
b. The Con#ract Work HQ�r�_„_�nc�,,,,..,,Safe Star�dards Ac# (CVI��jSSA). CWHSSA
requires #ime and one-�alf pay for overtime (OIT) hours {aver 40 in any worlcweek)
worked on khe ca�ered project. Th� CWHSSA applies to both cfirect Federal
contracks and to indirect Federal�y-assisted contracts excepf wher� the assistance
is saleiy in the nature of a loan guarankee or insurance, CWHSSA �iolations
carry a liquida#ed damages per�alky {$10lday per violatio�). Intentional viofa#ions
of CWHSSA standards can be cansidered for �ederaf criminal prosecution.
CWHSSA does not apply to �rime contracts of $100,000 or �ess. (rt addition, same HU�
projects are not cov�red �y CWHSSA because soms HUD pragrams only provide foan
guarant�es ar insurance. CWHSSA also �oes not app{y to constr�tctian or reha�ilitatiart
contracts that are not s�bject to Federal prevaifing wage rates (e.g., Davis-Bacon wage
rates, or HUD-de#ermir�ed rat�s far aperakion of pu�lic housing and Ir�dian �Iock �rant-
assisted housing), Hor�ve�er, ev�n though CWHSSA o�ertime pay is not required, Fair
Labor Standards Act (FLSA) overtime pay is �rohably still applica�le. (See aiso Labor
Relaiions E.etter SL-95-�1, CWHSSA Caverage ihreshold for o�ertime and health and
sa�ety �rovision, available on-fine at the HUD Labor Relations �.ibrary at: www.hud.gov/
offices/alrllibrary,cfm)
1-1
c. The Copeland Act mak�s it a Federal crime
for anyone ta require any laborer or mechanic (employed or� a�ecferal �r Federally-
assisted project) to Ecickbacit (i.e., give up or pay back) any part of their wages. Th�
Copeland Act requires every emptoyer (cantractors and subcontractors) to submit
weekiy certified payroll repa�ts� (CPRs) and regulat�s permissible payrafl d�ducfions.
d. Th� Fair Labor Standards Act [FLSA1. The FLSA contains Federal rninimum wage
rates, overkime (�/T}, and child la�or requirements. These requirements generally apply
to any labor performed. The DOL has the a�thority to administer and enfarce FLSA.
HUD will refer to the O�L any pass�ble FE.SA violations that are found on HUD projects.
•� ;: •► : :. •►
The Departm�nt of �.abor (DOL) t�as published rufes and instructions concerning
Davis-Bacon and ather labor faws in the Code of Federa! Regulations (CFR}, These
regulatior�s can be found in Tifle 29 CFR Parfs 9, 3, 5, 6 and T. Part 1 explains how
the DOL es#ablishes and publishes DBA wage determinations (aka wage �ecisions) and
pro�id�s instructions on haw to �se the determinations. Part 3 descri�es Copelancf Act
requirements for payroll deductions and the submission of weekly certifed payroll re�orts.
Part 5 co�ers the labor s#andards provisions that are in your contract relating to Davis-
Bacon Act wage rates and the r�sponsibilities of cantractars and contracting agencies to
administer and enforce the p�ovisions. Part 6 providas far a�ministrative proceedings
�nforcing Federal fabor standards an eonstruction and service cantracts. Las#, Part i
sets parameters for practice before the Administrative Review Board. These regulations
are used as the basis fc�r adm9nistering and ertforcing the faws.
DOL Regulations are available on�lir�e vn the World W1da We�a:
http:llwww.dol.go�ldollalicfrlTitfe_29. htm
•� : •► �i :: ':* f�►
Each contract subject to Davis-Bacon labor standards requirements must con#ain labor
stanclards clauses and a Davis-Bacon wage decision. These doeumenfs are normaiiy
bound inta the cantract speci�catior�s.
a. The labor standards clauses. ihe labor standards clauses �escribe the r�sponsi�iliti�s
of the contractor concerning Davis-Bacon wages and obligate ttte cantractar #o comply
wi#h the labar requirements. Th� labor standards clauses alsn provide for remedies in
the ��ent of violations, including withholding from payments du� to tf�e contractor to
�nsure #he payment of wages or liqui�ated damages which may be found due. These
cvntract clauses enable #he contract administrator to enforc� the Federa! la�ar standards
applicable ta t�e �roject. HUD has standard forms ihat cantain contract cia�ses. For
example, tt�e HUD-2554, S�pplemen#ary Co�ditions to the Contract far Canstruction,
wh�ch is issued primarily fnr FHA rnuitifamily hausing and ather constructian projects
i-2
administered by HUD; the HUD-4010, Fedaral Labor Standards Provisions, which is used
for CDBG and H�ME proj�cts, and the HUD-5370, Generaf Conditians of the Contract for
Constructiar� or the HIJD-5374-�Z {constructia� contracts 5$100,Q00) which are used for
Pubiic and Indian Housing projects.
HUD pragram labar standards farms are availah�e or�-line at:
www. hud.gflvloffices/admlhudclipslindex.cfm
b. Davis-Bacon Wage Decisions. The Davis-Bacon wage decision {c�r wage determination)
is a listing of vario�s cor�struction worlc classi�cations, such as Carpenter, Electrician,
Plumber and Labar�r, and the minimum wage rates (a�d fringe benefits, where prevailing)
that �eople performing work in t�ose classifications mus# be paid.
DavEs-Bacfln wage decisia�s are established by the DOL For variaus types of ca�struction
(e.g,, residential, heavy, hEghway) and appiy to sp�cific geograp�ic areas, usually a
county ar group of co�nties. Wage decisians are modi�ied from time to time ia keep them
current. lr� most cases, when #he con#r�ct is awarded ar w�en construction begir�s, the
wage decision is "loc[ced-in" and no futur� modificatians are applicabfe to the cantract or
project invalued.
Ail curre�t Davis-Bacon wage decisions can be accessed on-lir�e at no cos# at:
hkEp:l/www.wdol.go�
� : _ '�� . = • , _ ': ► '_ •►, ._ •:
T�e principa! cantractar (also referred ta as the primeor general contractor) is responsible
for the ful! campliance of a!I employers �the contractor, subcontractors and any lower-#ier
subcontractors) with the labor standards provisions applicahle to the project. Beca�se
af the contractual r�lationship between a prirne can#ractor anci hislher subcontractors,
subconkractors generalfy shoufd cnmm�rnicate with khe contracf adm�nistrakor anly through
the prime contractor. {See Confract Administrator, below.)
To make t�is G�ids easier to u�derstand, ihe terrn "prime cantracta�' will mean the
principal contractar; "subcontracior" will mean all su�contractors ir�cluding lower-tier
subconiractors; and the term "empfoye�' wil! mean all can#ractors as a graup, including
the prime contractor ancf any subcantractnrs anc! lawer-tier subcantractors.
i -3
i _ � • � : • a . f 1 ► ` ' • 11 ► ► ` � i
The contract adminlstrator is respansibfe for the praper admi�istration ar�d enforcemant
af t�e Federa! labor standards provisions on cantracts covered by Davis-Bacan
requirem�nts. We use t�is term to represent the person (ar persons) who will �rovide
labar s#an�ards advice and support to yau and ather project principais {e,g., the awner,
sponsor, architect), includir�g providing the proper Davis-Bacon wage decision
(see 2-1, The Wage Decfslon) a�d ensuring tha# the wage decision and cor�tract clauses
are incor�orated into the contraci for constr�ction. The contract administrator also monitors
labor stan�ards cam�liance (see 2-6, Compllance Revlews} by canducting interviews
with constructiart workers at the job sife and reviewing payroll repa�ts, and oversees any
enforcement actians that may be r�quired.
The cantract administratar could be an emplayee or agent of HUD, or of a city or county or
public housing agency. For HUD prajects administerec� directly by HUD staff, �sually FHA-
insured multifamily projects, the contract administrator will be the HUD Labor Reiaiions
field staff. But many HUD-assisted projects are admin�stered by lacal contracting agencies
such as P�blic Housing Agencies (PHAs), Indian tribes and tribally-designated housing
entiti�s (TDH�s), and States, cities ar�d counties under HUD's Commt�nity Development
Block Grant (CDBG) and HOME programs. !n these cases, the cantract administrator
wil� likely be lacal agency staff. fn either case, the guidance for you remains essentially
the same.
The D�L also has a rofe in monitoring Davis-Bacon administration ar�d enfarcemer�#. fn
addition, DOL has independe�t authority ta conduct investigations. A DOL investigator
or other DOL representakive may visit Davis-Bacor� constr�ctian sites to interview
canstructio� workers or re�iew payroll informatian.
1-4
CHAPTER 2 HOW TO COMPLY WITH LAB(}R STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
WHERE TO START7 Now that you know you're an a Davis-Bacon project and you fcnow
same of the legal a�d practical implications, what's next?
SECTIUN I - THE BASICS
2-1 T�....� WAGE DECI510N.
Davis-Bacon �abor star�dards stipulate the wage payment requirements for Carpenters,
Electricia�s, Plumbers, Raafers, Laborers, and other construction work classifcations
tf�at may �e needed for the project. The Davis-Bacon wage decisic�n kMat applies to t�e
project contains a scheduEe of wark classi�cations and wage rates thak must be followed.
I� you don't have it already (a�d by now you should), you'll want to gek a copy of the
applicable Davis-Bacon wa�e decisian,
Remember, the wage decision is co�tained in the contract speci�catians along with ihe
labor standards cfauses. See 1-3, Constructifln Contract Provisions,
a. Tl�e work cl�ssifications and w�q� .���e�: A Davis-Bacon wage decision is simply a
listing of �iffere�t work classifications and the minimum wage rates that must be paid
to anyone performing work in thase cCassi�cations, You'Ik wank to make sure that the
worlc classifcatian(s} you need are co�tained in the wage deeision and ma�Ce certain
you know exactly what wage rate(s) you will need to pay. Some wage decisions
cover severa! cout�ties andlor types of construc#ion work (far exam�le, residential
and cammerciaf wark} and can be lengthy and di�cu[t to read. Cantact the con#ract
administratar (HUD Labar Relations field staff ar lacai agency staf� if you ha�e
any troubie reading the wage �ecision or finding the wark ciassification(s} yau need,
To make reading lengthy wage decisions �asler far you, fhe cvntract administraiar may
prepare a ProjecE Wage Rate S�eet (HUD-4720), Tt�is Sheet is a one-page transcript that
wil{ shaw on{y the classificatians and wage rates fvr a partic�lar praject. A blank capy o#
a Project Wage Rate Sheei is �rovided far you in the appendix. Also, a filtabie version o�
tk�is farm is available on-line at HUDC[ips (see web address in tt�e A�per�dix). Contact the
cantract administrator monitaring your praject for assistance with a Project Wage Rate
5heet.
2-1
b. Posting the wage dectsion. If you are the prime contrac#or, you will be respQnsible for
posting a capy of the wage d�cision {or the Project Wage Rate Sheet) and a copy of the
DOL Davis-Bacon pvster titled Empioyee Rights under ttte Da�+is-Bacon Act (�orm WH-
1321) at the jab site in a�face ihat is easily accessible to al! af the construction wartcers
employed at the �roject and w�ere the wage decision and �oster won't be d�strayed by
wir�d or rain, etc. The Employee Rights u�der the Davis-Bacon Act poster is available in
Er�glish ar�d Spanis�t on-line at HUDCIips (see address in the Appendix).
The Emplay�e Rights ur��er the Davis-Bacon Act poster (WH-�321} repiaces the Notice
to al! �mployees. The new paster is available in English ar�d Spa�ish on-line at HUDCIips
(see address i� the Appendix). ;
+ rr •�.: � � � ,: +i' ' � � ",
What if ti�e work classifcation you need isn't an the wage decision? If the wflrlc
classi�catian(s) that you neec! daesn't appear on ihe wage decisiart, yau wili need to
request an additional classiflcation and wage rate. This process is usually very simple
and you'll war�# to start the reques# right away. Basicaily, yau identify the ciassification
you need and recommend a wage rate for DOL to approve for the praject. Th�re are a
few rules about additional cfassificatio�s; you'll �ind t�ese rt�fes in the �OL regulations,
Part 5, and in the iabor clauses in your contract. The rules are st�mmarized for yau here:
a. Additional ciassiflcatlort rules. Additianal classifications and wage rates can be
approved if:
1. The requested classifieatian is used by construction contractors in the area af the
projec#. (The area is usually defined as the caunty where the project is locatecf),
2. The wark that will be performed by the requested classi�cation is not already
performed by anat�te� classification tha# is alreac�y on the wage decision. (fn okher
words, if Ehere already is ar� Elecirician classificatinn and wage ra#e on the wage
decisian yo� car�'t request anofher Eiectrician classi�ca#ion and rate.}
3. T#�e proPased wage rate for the requested classification °fits" with the ofher wage
rates already on the wag� decisian. (Far example, the wage rate propased for
a#rade classification such as Electrician must �e at �east as much as t�� lawest
wage rate for other trade classif�cations already ca�tai�ed in the wage decision.)
And,
4. The workers that wii) be emplayett in #he added classi�ca#ion (if it is knawn who the
wqrkers arelwil! foe), nr the warkers' r�presentatives, mus# agree with the prapos�d
wage rate.
2-2
b. Making the reauest. A request for additianal classi�'ication and wage rate must �e made
in writing thraugh the contract administrator. (If the contract administratflr is a locaf
agency, the agency will send the request to the HUD Labor Relations staff.) [f yflu are a
subcantractor, your request should also ga through the �rime contract�r, All you need to
do is identify the wark classi�catiar� that is missing and recommend a wage rate (usualiy
the rate khat empfoyer is alreacfy payir�g ta the employees parforming the work} far that
classificatior�. You may also need to describe khe worlc that #he new elassification will
perform.
c. HUD re�iew. The HUD Labor Rela#ions field staffwill revi�w the requested classification
and wage rate to dekermine whekher the request meets the DOI� rules outfined in �aragraph
2-2(a), abave. If additional infarmati�n or c�arifieakion is needed, t�e staff wiEl cor�tact th�
prime contractor (or cantraci administrator far local agency projects) for more informakian,
etc. If the Labor Relations re�iew finds fhat khe request meets the rules, the staff will give
�reliminary approval on the request and refer it to the DOL for �nal approvaf. The staff
will send to you a cnpy of the preliminary approvai/referral letter to #he DO�..
l# the HUD Labor Reiatinns staff doesn't thir�k the reques# meets the rules and if agreement
can't be reachsd an the prap�r classi�cation or wage rate far the work described, the
HUD �abor R�lations stafF will not appra�e the reques#. In this case, the staff will se�d
yaur reques# ta the DOL with art explanation why HUD believes that the request shouldn't
be approved. Tt�e DQ�. still has fnal decisian auihority. You wilf receive a copy af the
disapproval/referral letter to the DOi..
d. DOL deeision. Ti�e DOL will res�and to HU� Labor Relations in writing about the
additional classification and wage rate request. HUD Labor Relatinr�s will notify you of
the DOL decisian in writir�g. If the DOL approves the request, the prime contractor must
post khe approval notice on #he job site with the wage decisiort.
If the �OL does not approve the request, you wiil �e noti�ed about what classificatian and
wage rate should b� used for th� woric ir� �u�stion. Ya� wi11 a4so receive instructions ahout
how to ask for DOL reconsideration if yau still want to try ta get your recommendatian
approved.
It's a�ways a goad iciea to talk to #he cantract admi�istratar befare submikti�g an additior�al
classifcation and wage rate r�quest. The contract adm�r�istrator can ofFer suggestions
and advice t�at may sa�e you time and increase the likelihaod that D4L will approve your
request. Usual�y, the ca�#ract administrator can give yau an idea abaut w�at tt�e DOL wifi
finalEy decide.
2-3
� � � ` ► � ► . � r i �
You'll need ta submit a weakCy c�rtif�d payrall repn�t (CPR) beginning with the first week
that your company works on the pr�ject and for ev�ry week afterward until your firm has
completed its worlc. lt`s always a goa� idea to num�er the payrall rep��ts beginning with
#1 and io cleariy mark your last payroil for the praject "Final."
a. P�,vroll form�t�. T�e easiest farm to use is D4L's WH-347, Payrali. A sampfe c4py of
the WH-347 is included in the hack of #his Guide. Yau may access a fiElable version of
the WH-347 on-line at HUDCI'tps {see web adclress in the Appendix). Also, the contract
administratar cart pr�vide a few copies of t�e WH-347 #hat yflu can reproduce.
:,
Yau are no# required #o use Payroll form WH-347; You are welcome to use any oiher type
of payrall, such as computerized farmats, as long as i# contains all of the infarma#ion khat
is required on the WH-347.
�
b. The weak[y payrolls are called certif�d because each �ayroll
is sign�c� and contains language certifyi�g #hat the information is true anc3 correct. The
payroli certi�cation language is an the reverse side of t}�e WH-3a7. If you are using
another type a# payroil format you may attach ti�e certificatian from ihs back of the WH-
347, or any other format which contair�s the same certification languaga on the WH-347
(reverse).
DOL's website has Payrakf lns#ructions anci the Payro[f farm WH-347 in a"�llable° PDF
format at this address:
www.doi.gavlwhd/�ormslwh347.pdf
c. "No work" �ayroils. "No war�C" payrolls may be submitked w�enever there is a
t�mporary break in your work on the project, for example, if your firm is not needed on
Ehe project r�ght now but yau wik! be returnir�g to khe job in a couple of weeks. (See tip
box, for "no wark" payrali exemption!) How�ver, if you know that yaur firm will not be
worki�g on the project far an extended period of time, you may wish to send a short
note to the contract administrator to Eet them knaw about the �reak in work and to give
an approximate date w�en your �rm wili return to the project. If you number payrolls
ca�secutive�y or if you send a nate, yau do r�ot need to send "no work" �ayrolfs.
�
If you n�mber your payrall reports consecutiveiy, you do not need to submit "rto work"
payrolls!
2-4
d. �y��t�e�iewandsubmissiun.Thep�imecontractarshouldrevieweacl�subcontractor's
payroll reports for compliance priar ta submitting t�e repnrts to the contract administratar.
Remember, the prime eontractar is responsible fo� the full compliance of all subcantractors
or� the contract and wil! �e helc# accountable for any wage restitution that may be found
due to any labarer or mechanic that is underpaid and for any �iquidated damages that
may be assessed for overtime violatior�s. All of khe payroll reports for any project must be
submitted ta the contract administrator t�rough the �rime contractor.
An alert prime cor�tractor that reviews subcontractar payroll submissfons can detect any
misund�rstandings early, prevent casfly underpayments anct protect itseif from �inancial
loss shaulc� underpayments accur.
e. Pa�rofl retention. Every c�ntractor (incl�ding every subcontractor) must keep a complete
set af Eheir own payroils and other basic recor�s suc� as employee address�s and full
SSNs, time cards, tax records, evidence of fringe bene�t payments, for a Davis-Bacon
project ior at feast 3 years after the project is cflmpleted, The prime contractar must �Ceep
a complete set of aEi of the �ayroils for every contrac#or {ir�cfuding subcontractars) for at
I�ast 3 years after complefion af the praject.
f. P�,yr41L �ns�Q,S;,,#�� �n addition to submitting payralls to the can#ract administrator, every
contract�r (includirtg subcontractors} must make their own capy o� the payrolls and
other basic records availabte for review or copyir�g to any autharized representative from
HUD or from DQ�..
�� : � •� r � s�
Before we discuss haw to complete the weekly payrol! forms, we need to review a couple
of definitions. These de�nitions can help yot� unders#and what wilE de required of yau:
a. i��24r��a�, m,�chanic. "Labarers" and "mechanics" mean anyone who is per#orming
cnnstructian wark on #he project, including #rade journeymen (carpenters, pl�mbers, she�t
metal worlcers, etc.), apprentices, artd trainees and, for CWHSSA purposes, watchmen
ar�d guards. "Laborers" and "mechar�ics" are the two groups of workers that must be �aid
�ot fess tf�an Davis-Bacor� wage rates.
1. 1(y�,�g foremen. �'oreme� ar supervisors that regularly spend mare tha�
2Q% of their time �erfarming constructian work and �o noi meet the exc�usions
in paragraph 2 befow ar� covered "laborers" and "mechanics" far labor standards
purpases far #he time spent performing construction wark.
2. Exclusions. People whose duties are primari�y adminisErative, exec�ttive or
clerical are not labor�rs or mect�anics. �xamples incfude superintendents, o�ce
staff, timelceepers, messe�gers, etc, (Contact the co�tract administratar if you
have a�y questions abo�t whekher a particufar employee is exclu�ad.}
2-5
b. �ployee. Every person who perfarms ihe work of a laborer or mechanic is "emplayed"
regardfess of any contract�al relationship which may be allsgec! to exist beiweer� a
contractor or subcantractor and such persan. This m�ans that even if th�re is a contract
befuveen a contractor and a worker, the contractnr must make sure khat the worker is
�aid at feast as much as khe wage raie on the wage decision for the classificaiion of work
they perform. Nate that there are r�o except[o�s to the prevailing wage requirements iar
relatives or for self-employed laborers ar�d mechanics.
For �more informatian' about woricing subcontractacs, ask the contra�ct administrator or
your HUD �abar Relations Field Staff for a copy of �.abor Relations Letter LR-96-0�,
Labor standards campliance requirements #or self-employed labor�rs and mec�anics.
Labor Relations Letters and o#her helpful Labar Reiations p�blications are availabfe at
HUD's Labor Rela#ior�s web site tsee the Ilst af web site addrasses in the Appendix).
. ._ . —.__ : _ .. �
c. A e The nnly workers who car� be paid less than tha wage rate on
the wage decisian for their work classification are "apprentices" and "trainees" registered in
approved apprenticeship ar training programs. Appraved programs are thase which �a�e
been registered with the DOL ar a DOL-recognized State A�pren#iceship Council (SAC).
Apprentices and trainees are paid wage rates in accordance with fhe wage schedule in
th� appro�ed program.
Most often, the apprentice/trainee wage rate is expressed as a serles o# �ercenta�es tied
#o the amount flf time spent in khe program. Far example, 0-6 mo�ths: 6�%; 6 mon#hs
- 1 year: 70%; etc. Th� pereentage is appli�d ta the journeyma►�'s wage rate. On Davis-
Bacon projects, the percentage must be applied to the journeyman's wage rate on the
applicable wage decision far tha# craft.
�• P�atiQn�ry ��,�-entice. A"probationary apprer�tice" can be paicf as an apprentic�
(less than the rate on fhe wage decision) if the DOL ar SAC has certi�ed that the
perso� is eligible for prabationary employmer�i as an apprentice.
2. pre-agprentice. A"pre-apprentice", that is, sarneone who is not registered in a
program and who F�asn'k been DOL-ar SAC-certified for probationary apprenticeship
is not cansiderec� to be an "apprentice" and must be paid #he full journeymar�'s rafe
on the wag� d�cision far khe classification of work they perfnrm.
�� The maximum num�er af
apprentices or trainees that yo� can use on the job site ca�nat exceed the ratio of
apprentices or frainees to journeymen allowed in the appraved pragram.
2-6
d. Pre�ailing wage rates are the wage rates listed an fhe
wage decisian for the project. The wage decision will fist a minimum basic �aurly rate
of pay far each work classification. Some wage decisions include fringe benefits which
are us�aliy listed as an hourly fringe rate. If the wage cfecision includes a fringe ber�efit
rate far a cfassification, you will �eed to add the fringe bene�i raie to the basic houriy rate
unless yau provide bana �de fringe benefts for you� em�loyees.
1. Piece-work. Sflme employees are hired or� a piece-wor�C hasis, that is, the
employee's earnings are d�termined �y a Factor of work produced. Fflr example,
a Drywall Hanger's earnings may be calculated based upon the sq�are feet of
sheetrock actualiy hung, a Painter's earnings may be based upnn the number
of units painted. Employers may calculate weekly earni�gs based upon
piece rat�s pro�ided #he weekly earnings are suf#icient ta satisfy the wage
rate requirement based upon actual hours, including any overtime, warked.
Accurate time records must be maintained for ar�y �JE�C2-INOi�C empEoyees.
If the weekly piece rate earnings are not suffici�nt, the employe� must
recampute weekly earnings based upon the actual hours worked and
the rate on the wage decision for the work classificatian{s} involved.
e. �ringe benefits, Fringe bene�#s car� include �ealth insurance premiums, retirement
contributians, life insurance, vacatian and other paid lea�e as well as some contributians
to training funds. �ringe 6�nefits do not include employer payments or contrib�tions
required by other �ederai, Skate ar lacal faws, such as the empinyer's contrib�ttion ta
Social Security or some disahifity insurance payments.
Note that t�ie tatal hauriy wage rate paid ta'any�labarer or mechania (basic wage or�basic
wage plus fringe benefits) may be no less than the total waga rate (basic wage ar basic
wage plt�s fringe benefitsj an the wage declsion fflr their cra�t. ]f t�te value of the fri�ge
benefit(s) you provide is less tha� the fringe benefit ra#e on the wage decision, you will
need to add #he �alance of the wage decision fringe berte�E rate to the basic rate paid ta
the emplayee. For example, if k�e wage decisian r�quires $101hour basic rate plus $51
hour fringe bene�ts, yau must pay no less than that total ($151�aur} in th� basic rate or
basic rate pius whatever fringe benefit you may provide. You can meet #his obligation
in several ways: yau could pay the base wage and fringe bene�#s as stated in #he wage
decisi�n, ar you cou�d pay $� 5 in base wage with nv fring� bene�ts, ar you couid pay $12
basic plus $3 frfnge bene�ts. Y�u can also off set #he amount of #he base wage if you pay
mare in fringe bene�ts such as by paying or $9 basic pfus $6 fringe b��tefits; as Iong as
yau meet fhe total amvunt. TYte amount of the base wa�e that you may o�f set with fringe
benefits is limited by certain IRS and FI.SA requiremen#s.
f. Qvertime, Overtime haurs are defned as all hours worked on the cantract in excess of
�40 haurs in any wark weelc. OvertimE haurs must be �aid at no less than one and one-
half times the regular rate of basic pay plus t�e siraight-fime rate of any required fringe
�enefits.
2-7
g. Deduct�ons. You may make payro6l deductions as permitted �y DOL Regulations 29 CFR
Part 3. These regulatians pro�tibit khe employer ftom requiring empEayees to "kick-back"
(i.e., gi�e up) any af their earnings. AIlowable deduc#ions w�ich do not require prior DOL
permission include employee abligatians for income taxes, Social S�curity payments,
insurance premiums, re#irement, savings accounts, and any at�er legaliy-permissible
deduction au#horized by the employee. Deductions may a[sa be macle for payments on
j�cfgments and other financial obligations lega{ly imposed against the employee.
Referring, agalr�, to our exampCe above where the wage decisian requiring a$15 total �
wage ai�ligatfor� ($10 basic wage plus $5 fringe bene�ts) was met by paying $9 base
wage plt�s $6 fringe bene4�ts: Note that o�ertime rates m�rst be based nn one and one-half
fimes ihe basic rate as stated on the wage decisiar�. In the abave exam�le, the employer
must pay for o�ertime: $'� 51hr ($9 basic +$fi fringe) plus $5 (orte-haif of $'� 0, the wage
cfecision basic rate) for a total af $20 per hour.
h. P�QQ�r designation of trade. You must sef�ct a work classi�cation on the wage decision
for each worker based on the actual type of war�C helshe performed and yau must pay each
warker no less than the wage rate an the wage decisiar� far kha# classification regardless
of their level of skill. In other words, if someone is perFarming carpentry wor�C on the
projeck, khey m�s# be paid no less than khe wage rate or� the wage decisian for Carpenters
�ver� if they aren't co�sidered by you ta be fully trained as a Carpenter. Remember, th�
only peopfe who can be paid less Ehan the rate for their craft are a�prentices and trainees
registered in approved programs.
Sp�j�-r,.(assification. If you have emp[ayees khat perform work in mare than
one trade during a work week, yau can pay the wage rates specified far each
classifcation in wl�ich work was performed only if yo� maintain accurate time
recards shawing t�e amnunt of time spent in each classi�catian of wark. If you do
nat mainkain accuraie time records, you must pay these employees the hig#�est
wage rate of all of the cfassifications of work perforrned.
i. Site o,�.�,work. The "sita of wark" is where the Davis-Bacon wage rates apply. Usualiy,
this means the boundaries of the project. "Site of wark" can also include at�er adjacent
or virt�aliy adjacent property used by a contractar or s�bcontrac#ar in the construction a#
the project, IiE�e a fabrication site that is dedicated exclusively, or nearly so, to the project.
r;
SECTlON II - REPORTtNG REQUIR�MENTS
•��' � ,: '.: :•_ :__ "•:
What informatian has to be repo�ted on the payroll form? The w�skiy payrall form cloesn't
as�C for any information that yau don't already need to keep far wage payment a�d tax
�urposes. For example, you r�eed to know each employee's name; his ar her work
classification {wha is warking for yo� and what do they da?), the t�ours wariced during the
week, his ar her rate of pay, t�e gross amoun# earned (�ow much dic! they earn?), tF�e
amounts of a�y deductions for taxes, �tc., and the net amount paid {how much should
tt�e paycheck be made out for?}. Na more information tha� you need ta lcnow in arder to
manage your work crew and make certain #hey are paid praperly. And, certain[y, no more
information than you �eed to lceep for IRS, Social Security anc! oiher tax and empfoyment
purpases,
For many contractors, the Weekly Cerli�ed Payroll is the oniy Davis-Bacor� paperwork
you need to submit!
You are reqc�ired ko submit certified payralEs ko illustrate and dacument that you ha�e
campliedwith the�revailingwag� requirements. Thepurpaseof titecontractadminis#rator's
review of your payrolls is ta v�rify yaur compliance. Clearer and complete payroll reports
will permit the contract administratar to complete reviews af your payrol[ reports quickly.
a. Pr e c a t ' o t Each payroll must identify the
contractor or subcontracior's name and ad�ress, the project name and number, and the
week ending date. Indicate the week dates in the spaces provided. Numberir�g payrolfs
is optional but strongly recommended.
b. �m I�o,yee information. Effective January 18, 2009, payrolls shall not repar# empinyee
addresses or full Social S�c�rity N�mbers {SSNs). Instead, the first payr�ll on which
each em�loyee appears shall incfude #he employee's name and an ir�dividually identifying
num�er, usually the �ast � digits of khe employee's SSN. Afterward, the iden#ifying number
does not ne�d ta be reported unless it is nec�ssary to distinguish between empivyees,
�.g., if twa employees have the same name.
Employers �prime contractors and subcontractors) must maintain the current address
and fuil SSN far eac� �mployee and must �rovide this information upan request to the
contracting agency or other authorized r�presentative responsi�le for federai labnr
standards compiiance moni#orir�g, Prime confractors may require a subcontract�r(s) to
provide this ir�formaiian for the prime contractor's records. DOL has modifed form WH-
34�, Payroll, ta accommoda#e these reporting requirements.
c. V11�rk_ c#as�lfication. Each empEoy�e must be cfassified in accnrdance with the wage
decisian �ased an khe kype of work they acti�alfy perform.
+�,'�
A�arentices or trainees. The first payrol! on whic� any apprer�iice or irainee
ap�ears must�e accompanied by a copy ofthatapprentice's artrainee`s registration
in a registered or approved pragram. A copy �f the portions of the registered or
approved program pertai�ing to the wage rates and ratias shail also accompany
the �rst payroll an which the first apprantice ar trainee appears.
2. Salit classifications. Far an empiayee fhat worked in a split classificatio�, make
a separate entry fo� eac� classi�cation of worlc p�rformed distribufing the hours of
wark ta each classificafion, accordingly, and re4lectir�g #he rate of pay and gross
earnings for each classifca#ion. Deductions and net pay may �e based upon the
total gross amount earned for all c�assifications.
d. Hours worked. The payrol! should show ONLY the regular ancf overtime �aurs worked
on this project. Show bath the �aily and totai weekly hours for each emplayee. lf an
employee performs warlc at jab sites other t�an the prnject forwhich the payroll is prepared,
those 'bther jab" hours sho�fd r�ot b� reparted on the payroll. In these cases, you shoufd
list the employee's name, classi�caiian, hours for this project anly, the rate o# pay and
gross earnings for this project, ancf the grass earnecf far all projects, Deductions and net
pay may be based �pon the empfayee's total earnings (far all prajeets) for the week.
e. Rate of aa�. Show #he basic hourly rate of pay far each employee far this �raject. If
the wage decision includes a fringe benefit and you do �ot participaie in apprav�d fringe
benefit pragrams, add the fringe bene�t rate to the basic houriy rake af pay. Also lis# the
overtime rate if avertime hours were warke�.
1. Piece-work. �or any piece-work em�loyees, the employer must
compute an effective hourly rate for each employee eaeh week �ased
upon the employee's piece-work earnings for lhat we�k. To compute
the eifective hourly rate, divide the piece-work earnings by the total
�umber af hours worked, including consideration for any av�rtime haurs.
The effective hourly rate m�st be reflected on the certified payroll and this haurly
rate may b� no less than the wage rate (irtcluding fringe bene�ts, ii any) on th�
wage decision for the cfassi�cation af work perfarmed. kt does not matter that k#�e
effeetive haurly rate changes from week-#o-we�k, only that the rate is no less tha�
the rate an fhe wage decisiar� for the classification af wark perfarm�d.
R�mem�er, the overtime rate is computed at one and one-half times the basic rate of �ay
plus ar�y fringe benefts, �or exampl�, if the wage �ecision requires $10lhour basic plus
$51hoc�r fringe �enefits, th� overtime rate would be; ($1Q x 9'/z) �- $5 =$20/hour,
os s Shnw the gross amou�t of wages earned for wark performed on
this project. Nafe: �or employees with work �ours and earnings an o#her projects, yau
may show gross wag�s far this project aver gross earnings all projects (far example,
$425.401$764.85j and base dedt�ctions and net pay on the "all prnjects" earnings,
2-10
g. ��d�a��i_on�. S�aw the amounts of any deduckions from the gross earnings. "Other"
deductions sho�Ed be identi�ed {far example, SavingsAccount or Loan Repayment). Any
voluntary deduction (that is, not required by law or by an order of a proper auihority)
must be authorized in wri#ing by the emp[oyee or provid�d for in a caifeckive bargaining
(union} agreement. A shart note signed by khe employee is all that is ne�ded and should
accompany the firs# payrol� on which the other deduciior� appears.
_,
Oniy or�e employee auihorizatinn is needed far recurring �e.g., weekiy} a#her deductians.
Written em�foyee autharization is not requ�red for incame tax ar�d Sacial Securiky
deductions.
k�. Net paY, Shaw the net amount of wages paid.
i. S m o c li The Statement of Compliance is the certification. It is
locat�d on khe reve�se side ofi a standard payroll form (WH-347}. Be sure ta complete
ti�e identifying ir��ormation at the top, particularly if you are attaching the Statement of
Compliance to an alternate payrolf fiorm such as a computer payroil. A�so, yau must
checic either 4(a) or �(b) if the wage decisian cantains a fringe benefit. Checking 4(a}
indicates that yau are payir�g required fringe benefits to approved plans or programs;
and 4{b) indicates that yau are �aying any required fringe benefit amounts directly to
the employee by adding the #ringe benefit rate to the basic haurly rate af pay. If you are
paying a portion of tl�e required fringe bene�t to pragrams and the balance directiy ko tfte
employee, explain t�ose differences in box 4(c).
O�iy one Staiement of Compfiance is required for each empfoyer's weelcly �ayrail no
matter how many pag�s are needed to report khe emplayee data.
5ianat� Make sur� Ehe �ayralf is signed with an originai signature in inlc. The payrolf
must be sign�d �y a principal of the flrm (owner or offic�r suc� as the president, treasurer
or payraii administrata�} or by an authorized agent (a person autharized by a principal
in writing to sign the payroll reparts}. Signature authoriza#ion (for persons ather than a
principal} sho�ld be submitted wit� t�e first �ayrall signed by such an agent. Signatures
in pencil; signature stamps; xerax, pdf and other facsimiles are nat acceptable.
2-11
SECTION Ill - PAYROLL REVIEWS AN1] CORRECT�ONS
r •��' �� ._ �
The car�tract administrator or other inspector may v�sit the praject site and inte�view
some of fhe workers cortcerning their empfayment on the project. The DO�. may also
independently conduct its awn reviews {see 1-5}. In addikian, the cankract administratorwill
periadicaliy review payrolls and relat�d submissions, comparing the interview infnrmation
to the payralls, to ensure that the fabor standards requirements have bee� met. You will
be nati�ied by the contract adminiskrator if these reviews find any discrepar�cies or errars.
You will be given �nstructions about what steps must be taken ko correct any probfems.
a. On-site inter�#�r1y�. Every emp[oyer (cor�tractor, sutacontractor, etc.) must make iheir
employees availa�le far ir�tenriew at the jab site with the contract administratnr or ather
agency re�resentative, or HUD ar DOL representative. The interviews are conCdential
and the employee will �e asked about the kind o# wark Ehey perfarm and their rate af
pay. Every effo�t w�lt be made to ensure that these interviews cause as liktle disruption
as possible to the on-going work. The interviewer will record the interview infarmatian,
usually on a form HUD-11, Recard of Employee Interview, and forwa�d the interviews ta
the contract administrator.
h. Project aavraJL���_e__�v�; The contract administrator wifl compare the informa#ion on
the interview forms io the carresponding payrolls to ensure that the work�rs are properly
listed on the payrolls far the days and hours worlc�c� on t�e jab site, work classification
and rate of pay. The cantract a�ministrator wil! also review the payrol! submissior�s ta
malce cer�ain that the payrolls are compfete and signed; that employees are paid �o less
than the wage rate for the work classi�catio� shown; appren#ice and trainee certificatiar�s
are submitted (wh�re needed); emplay�e or other au#horizatians far other deductions are
submitted {where ne�ded}; etc.
� ' � . ',�. ►• :i • � ;., ► � � 1� ■ s s
� .. .
_ - ► _ �� . \
The follawing paragraphs describe common payroll errors and #he correctiva steps you
must take.
a. Inadeauat,T,�, @ D�yroll inform��j�tl. If an alternate payroil format used by an employer (such
as some camputer payrolls) is inadequate, e.g., dQ�S f10� CQ�1t�E11 ail of the necessary
information that wouid be on ths optia�al form WH-347, khe emplayer will �e asked to
resubmit th� payrolls on an acc��ta�l� form.
b. Missing iclentificat�on n�m���s. if the first payrail on which an employee app�ars does
not contain tt�e empbyee's individuafly identifying nurn�er, the employer will be asked
to supply the missing in�ormation. This information can be reparted on the next payroll
submitted by khe employer if the empfoyer is still working on the project. Ofherwise, the
empl�yer will be asked ta submit a correction certifi�d payroll.
2-12
c. If the informatior� an ihe payroil Es nat complete, far example, if
warlc classif�cations or rates of pay are missing, the employer will be asked fo send a
correction certifsd payroll.
d. Classifi��tLQ�.�, If the payrolls shaw wark classifications that c�o not appear on the wage
decision, t�e employer will be asked to r�classify the em�layees in accnrdance with the
wage decision or the em��oyer may request an additional classification and wage �ate
(see 2-2}. If reclassi�cation results �n underpayment (i.e., the wa�e rate reporte� an the
�ayroll is less khan th� rate required far the new classiftcation}, the employer will be as�Ced
to pay wage restitution ta a!I affec#ed reclassified empinyees. (see 2-8 for instructions
abaut wage restitution.)
e. Waae rates. }f the wage rates on the payrafl are less than the wage rates on the wage
decision far tY�e work classifcations repor#ed, the emptoyer will be asked to pay wage
reskit�kion ta all affected emplayees.
f. A�arentices and trainees. If a copy af the empfayee's registration or the approvec!
program ratio and wage schedul� are not submitked with the first �ayrolf on which an
apprentice or trair�ee a�pears, the em�loyer will be asked to submit a copy of each
apprentice's or trainee's registratian andlor the app�oved program ratio and wage
schedule. If the ratio of appreniices o� train�es tn journeyman nn the payroll is greater
than the ratio in the appraved program, the em�loyer will be asked to pay wage restitution
to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered
in an �pproved prQgram must receive the jaurneyman's wage rate for the classification of
warlc they performed.
g. ��ertime. if t�te employees did not receive at least time and one-half far any ov�rtime
hours woriced on the pr�ject, the following will occ�r:
1. If khe project is subject ka CWHSSA ov�rtime requirements, the empioyer will be
asked to pay wage restitutian far all avertim� �ours work�d on the project. The
employer may also be liable io the United Stat�s for liquidated damag�s compttted
at $10 per day �er vio�ation. �r,
2. if the proj�ct is nat s�bject ko CWHSSA, #he emplayer will be notified of the possibEe
F�.SA overfime vioiatians. A�so, the contract administratar may refer the matter to
the DO�. for further �eview.
h. C_nmauta#�ons, If the payroll camputations (hours wariced times rate nf pay) or extensio�s
(deductions, net pay) shaw freqc�ent errars, the empitiyer will be asked to take greater
care. Wage resfitution may be required if und�rpayments r�sulted from the errors.
i. Deductfons. I# the�'e are any "Other" deductions that are not identified, ar if employee
autharization isn't �rovided, or if there is any unusual (very high, �r iarge number)
deduction activity, the emplayer wil! be asked to idenki�y k�� deductians, provide �mployee
authorizaffon ar exPlain unusual deductians, as necessary.
2-13
, . -, , , ::
HUD does' not enforce �or attempt ta provide. advice: on��employe�` obiigatlons to'make. �
deductiong fram emptayee earnings for taxes ar Sociat Sec�rity. However, Ht1D may
refer to the IRS or other responsible agency copies of cer#ified �ayrall reports that shaw
wages paid i� gross amaunts (i.e., without tax deductian) for its review and appropr�a#e
aciion.
_ . „ , . , . _ . . J
j. Frinae ��a I#' the wage decision contains fringe �e�efits but the payroi� does not
indicate how fringe �enefits were paid [neither 4(a) nor 4(la) is mar�Ced o� the Stat�ment
af Campl'tartce], the employer may be asked to s�bmit correctian certified payrolis anc!
will be required to pay wa�e restitution if underpayments occurred. However, if the basic
houriy rates for the emplayees are at laast as m�ch as the tatal wage rate or► the wage
decision (basic houriy rate plus the fringe bene�t rate), no correctian is necessary.
k. 5ign t�re. kf the payroll Statement af Campliance is not signed or is missing, kha empiayer
will �e asked to submit a si�r�ed Statement af Compliance for each payroll affected. ff the
Statement af Compiiance is signed by a person who is not a principie af the firm and that
psrson has not been authorized t�y prir�ciple to sign, the employer wil! be asked ta pravide
an authorization or ta resubmit the 5katement(s) of Compliance hearing the signature of
a principle o� other auihorize� signatory.
On-site interview comparisvns. ff the comparison of on-site interviews to the payroffs
in�icates any discr�pancies (far example, the em�loyee d�es noi appear on the payralf
for the date of the interview), khe employer will b� asked to submit a correction ce�ti�ed
payroll report.
m. Corr�c#ion ���tifi���yL Any and al1 changes ta data on a submitted payrall report
must be reported on a certified correction payroll. in �a case will a payroll report b�
returr�ed t� t�e prime contractor or employer for revision.
� �_ •► •: ►■--:': u ► • �:
Where underpayments of wages have occurred, the em�layer wilf be r�quir�d ta pay
wage restitution to the affected em�foyees. Wage res#ttution must be paid prompt�y in the
full amounts d�e, less permissible anc� authorized deductions. AI� wages paid to fabarers
and �nechanics far work performed on the project, including wage restitutian, must be
repvrfed on a certified payrall report.
a. Noti f��ation ta the EmployerlPrime contractor. Ti�e contract adminisirator will notify the
�m�toyer andlor prime c��tractor in writing of arty underpaymenks that are found during
payroll or ather reviews. The contract admir�istratar wfl! describe the underpaymer�#s ar�d
provideinstrucfionsforcomputir�ganddocumentingtherestitutiontobe�aid. Theemployer/
prime contractor is allowed 30 c�ays to correct the ur�derpayments. Nofe that #he prime
can#rac#ar is respansibCe to 1he can#ract administratar for ensuring that restitu#iar� is paid. !f
the emp[oyer is a subcankractor, the subcontractor wilk usually make the camputations and
restituti�n payments and f�irnish tt�e required dacumentatinn thraugh t#�e prime contractor.
2-� 4
.,
,.._ . . , ,: ,
,
- .�. . . . ,,
The contract' admin�strator � may communicate: directly: with a su�co�tractor w�en the
ur�der�aymenfs are pfiainly evident and khe subcontractar is cooperative: it is �est
ta wark thraugh the prime cantractor when the issues are com�lex, whert thers are
significant und�rpayments a�tdlar the subcont�actor is not coop�rative. In al� cases,
the suhcontractar must ensure that the prime contractar receives a copy af the required
corrective documentation.
b. C,�t,putinc,���,ae restitutlon. Wage restitution is simply the difFerence between ih� wage
rate paid ta each affected emplayee and the wage rate required on the wage decision
for afl hours worked w�ere underpayments accurred. The difference in the wage rates
is cailed the adjustment rate. Th� acfjustmer�t rate times the number of hours invalved
equals the gross amaunt of restitution due. You may also compute wags restiiution by
calcufating the katal amount af Davis-Bacon wages earned and suhtracting t�e tatal
amount of wages paid. The di�#erence is the amount a# back wages d�e.
c. Correction c�rti# �� The employ�r wilf �e required to report the restitution
paid on a correctian certified payroii. The correctian payrolf wii{ reflect the periad o# time
far which restifutian is due {for example, Payralis #1 through #6; or a beginning date and
ending date), The correc#ion payroll wil4 list each employee ta w�am restit��tifln is due and
their work classification; the tatal number of wark hours involved (daily haurs are usualiy
not applica�le far wage restitution); the adj�stment wage rate (the difference between
the required wage rate and the wage rate paid); the gross amount af restiiutian due;
deductions and the net amour�t actualiy paid. A prQperiy signed Statement of Compliance
must accompany the correction payroll.
H UD no longer reqt�ires the signatt�re of t�e employee on the correction payrail ta evidence
employee receipt of restitutior� paymen#. In additiar�, except in the mast extraordinary
cases, HUD na longer requires emplayers to submit copies of restifution checks (certified,
cashiers, canceled or other), or employee-sign�d receipts o� waiv�rs.
d. Re�iew of corre�t(c�n_C_P_�� The contract administratar wifl revi�w khe correcfion certified
payrolf ko ensure that fufl r�stitutinn was pai�. The prim� contractar shall be notifed ir�
writing of any discrepaneies and wiif be required tn make additiona! paym�nts, if needed,
documented on a carrection certifed payrall witt�in 30 days.
e. Unfound workers. Somefimes, wage restituiion cannat be �aid ka an affected employee
because, for example, khe empiayee has maved and can`t be located. After wage
restifution �as been paid to all �f the warkers who could �e iocated, the empiayer must
submit a list of any warkers who could nat be faund and paid (i.�., unfaund workers)
providing th�ir names, Socia} Security Numb�rs, last knawn addresses and the grass
amount due. !n suct� cases, at the end of the project t�e prime contractor wiil be required
2-15
to pEace in a deposit ar escraw account an amount equal to the total gross amount of
restitutio� that could not be paid because the empioyee(s) could not �e located. The
corttract administrator wil� continue aitempts to [ocate t�te unfound workers for 3 years
after k�e com�letion af the project. After 3 years, any amaur�t remaini�� in the account for
unfaund workers will be credited ar�dlor #orward�d by the contract administrator to HUD.
2-i6
CHAPTER 3 LAB�R STANDARDS DISPUTES, ADMINiSTRATIVE
REVIEWS, 1NITHHOLDING, DEPOSiTS AND ESCROW
ACCOUNTS, AND 5ANCTlUNS
1 ' ■_' � 1,. � ► _ • i:•� _
� ;•s •�,
Even in the best of circumstances, things can go wrong. In a Davis-Bacon context,
"things going wrong" �st�aliy means there's a difference of opinion or a dispute about
whether and to what extent underpayments t�ave occurred. These disputes are usualEy
be#ween the contract administrator and or�e or mnre em�ioyers (the prime contraciar andl
or a subc�ntractor). The dispute may involve something simple such as an additi�nal
cfassiftcation rec}uest kha# is pending before the DQL; �r something as significant as
ir�vestigative findir�gs following a complaint of underpayment. This chapter discusses
some of what you may expect ar�c� what you can do to make yo�r views knawn ar�d to
lessen any defays in resolving the problem or issue.
:.��E � :. :_ i •� ���; :�.��;� r
As mer�tioned in the 1�traduciion above, a dispute about labar standards and camplia�c�
can arise for a number af reasons. The fabor s#andards ciauses in your contract and DOL
regufations provide #or administrafive review of issues wh�re there is a differer�ce of views
between the contract administrator a�d any emplayer, The mast cammor� circumstances
i�cl�de;
a. Additional classification and wage rate
requests are somefimes denied by the DOL. An empfayer that is dissatisfied wit� the denial
can r�quest r�consideratiQn by the DOL Wage and Nour Administratar, The employer
may continue ta pay tf�e wage rate, as requested, until a�nai d�cision is rendered on
the matter. Whert the finaE decision is known, the employer will be required to pay any
additionai wages that may be necessary to satisfy the wage rate that is established.
1. $g�,�� The DO�. normaily identifies the reas�ns far denial in its
res�anse to the request. Any interested persan (for example, t�e contract
adminis#ratar, amploy�r, r�presentatives of the employees) may requ�st
recansideratio� of the decision on th� additianal classification request. The
req��est for reconsideration must be made in writing and must thoraughly
address the �enial reasons id�rttifred by the �OL. Ernploy�r requests for
reconsid�raiia� should be made through the cantraet admir�istrator but may
be made directly ta fhe DOL. (See 2-2(d), and alsn DOL Regulations 29 CFR
1.8.) A(i requests ir�itiated by or made thraugh ihe con#ract actministrator or HUD
mus# be su�m�tt�d through the HUI] Headquarters Of�ce af 1.a�or R�iatians.
3�1
2. Administrative Review Board. Any interested party may request a review of the
Administrator's decision on recor�siderakior� by the DOL's Administrative Review
BQard. D�L regulations 29 CFR Part 7 explain the pracedur�s for such reviews.
(See also 29 CFR 1.9.)
b. Fir�dirtgs of un����ym�n� Compliance reviews and ather fa!!ow-up enforc�ment
ackions may result in iindings of underpayment. The primary goal in every case and at
every step in this process is to reach agreements about who may have been underpa�d
and �ow much wage restitution may �e due and, of caurse, to promptly deliver restitution
to any underpaid workers. The contract administrator will usually work ir�formally with you
ta reac� such agreements. You will have an appartunity tv provide additionai informa#ion
to the contract administrator that may ex�fain apparent incor�sistencies ar�dlor resalve the
discre�ar�cies.
(f informa� exchanges do not result in agreement, the fir�al determination ar�d schedufe
of back wages dus will be prese�ted to yau in writing and you will �e permitted 30 days
in which to correct the underpayment(s) o� to req�est a hearing on the matter before the
DU�.. The request for hearing must be made in writing thraugt� the cantract admin�strator
a�d must explain what findings are in dispute and the reasans. In such cas�s, HUD i�
required t� submit a report to DO�, far review ancf further considerakion. Ail requests for
DOL hearing must be s�tbmit#ed through the HUD Headquarters Office af Labor Relations.
DO� rev€ew. The D�L wif! review the contract administratar's report and the
arguments against the firtdings pres�nted in th� hearing req�est. The D�L may
a�rm ar modify the findi�gs based upon th� materials �resented. You will be r�otified
in writing by the DOL of the resuits of its r�view. If DOL concludes khat violations
have occurred, you wikl be given ar� opportunity ta carr�ct any under�ayments or
to req�est a hearing befare a DO� Adminisirative Law Judge {A�.�). (See �OL
Regulations 29 CFR 5.11 (b) and 29 CFR Part 6, Ru1es af Prac#ice forAdministrative
Proceedings.)
2. Admir�istrati�e Re�iew Board. Contractors ar�dlor subcantractors may requ�s# a
r�view by ihe Acfministrative Review Baarc! af the decision(s) rencfered by the DQ�
ALJ in the admir�istrative hearing process. S�e DOL regulations 29 C�R Part 7 for
more information about this proeeedir�g.
� ..� M ►
The contract adm�nistrator shall cause withholding from payments due to the prEme
contractor to ensure t�►e payment of wages which are believed to be due ar�d unpaid,
for example, if wage underpayments or other violations are not corrected wi#hin 3� days
after written notifca#ian ta t�e prime cantrac#ar. DOi. may alsa direct the withhofding
of contract paym�nts for alleged wage un�erpayments. Withhofding is considered ta
b� s�rious and is not taken unless warranted. ]f with�oldit�g is deemed necessary, you
wi11 �e noti#ied in writing. On�y the amounts neec�ed to meet ihe contractor's (andlor
subcontractars') liabiiity shall be withhefd.
3-2
� •• ��� �•,�'
1n every case, we attempt to camplete comp�ianca actions and resoE�e any disputes
be#ore the praject is completed and f nal payments are made. Sometimes, correct{�e
actions or cfisputes cor�tinue after comp�etion and provisiot�s must be made to ensure
that funds are available to pay any wage restitution ihat is uCtimately fauncf du�. It� these
cases, we allaw projects to proceed to finai clasing and fnal payments provided the prime
contractor cfepasits a� amaunt equal to the pote�tial liability for wage res#itu#ion and
liquidated damages, if necessary, in a speciaf acc�unt. T�e deposit or escrow account is
cnntrolled by the contract administrator. Whsn a final d�cision is r�nder�d, the cantract
administrator makes disbursements from fhe accour�t in accardance with t�e decisian.
DePasitlescrow accaunts are established far one or more af the fallawing reasons:
- ;� a .'i 7 r. _ .,.�
Remember, the pr�me contractaris respansible andwill he heEd liable forar�ywage restitution
that is due ta any worker emplayed in the constructian of the �roject, including warkers
employed by subcantractors ar�d any lower-tier subcontractars. See 1-4, Responsibility
of the Principal Contractor, and 2-8; Resti#ution for Underpayment of Wages.
,. ,, ,;
-. � .. ;; , , ::. . .. . . . �. _ �. . , . . . ,
a. Where the par#ies have agreed to amounts of waga restitution that are due but the
employer hasn't furnished evidence yet that ail of the underpaid workers have received
tf�eir back wages, e.g., some of the workers have moved and could not be located. The
amaunt of #he deposit is equai to the tatal gross amount of restitukian due ko workers iacking
paym�nt evid�nce. As these workers are �aid and pro�er clocumentation is provided
to the contract administrator, amnunts correspanding to the documented payments are
returned to the depositar. Amounts for any worlcers who cannot be located are he�d in the
�epasitlescrow account for three years ar�d disposed as described i� 2-8{f} of this G�ide.
b, Where underpayments are suspected ar alEeged and an ir�ves#�gatian has not yet
been completed. The depasit is equal to the amount af wage restitution ancf any liquidated
damag�s, if applicahle, that are estimated to �e due. If the final determination of wag�s
due is less than th� amount estimatec! and placed in the escrow account, the escrow wil�
�e reduced ta the tina� amount and the difference will be returrted to the depositor.
If the �arties agree to the investigative findings, t�e amounts due to the warkers will be
paid by the emp�ayer. As these warkers are paid and proper dncumentation is providad ta
the cantract administrator, the gross amounts corresponding to the documented payments
are returned ta kh� depasitor,
If the emplayer is unable to rnake the payme�ts to the warkers, e.g., lacks ih�
funds necessary, the contract adminis#rator may make disbursements direcfly to
the worlcers in the net amounts cafculat�d by the employer. The amounts withheld
from the workers far tax deduction will �e returned to th� employer as paymer�ts to
worlcers are made. The employer shaEl be responsibie far reporting and transmitEing
wikhholdings ko the apprapriate agencies.
3-3
2. If the emp�oyer is r�ot coaperat�ng in khe resalutian, the cnnkract admir�istrator shall
rnalce disb�rsements to tt�e workers in accardance with the schedule o# wages
due. Amaunts far u�found workers wif� be retai�ed as described above (See 2-8(f}
and 3-4(a)}.
If the pariies do not agree ar�d an admirtistrative heari�g is requested, #he escrow will be
maintained as explained in 3-4(c), b�iow.
Remem6er, ifyouhavea�yquestionsorneedassistancecancerninglaborskandards`
requir�ments help is aCways availab�e. Contact khe corttract administratar fr�r the
praject you're warlcing on or the HUD Field Labor Relations staff in your area.
c. Where the parties are waiti�g for the outcome of an administra#ive hearing kFtat has
been or will be requested contesting a fina4 determination of wag�s due. The deposit
shall be equai to the amount of wage restitutior� and liquidated �amages, if applicable,
that have been determined due. Once a�nal decisian is rendered, disbursements fram
the escrow account are made in accordar�ce with the decision.
� ��u � �,:. � ► •.
Contractors and/or subcontractors that violate the labar standards provisions may face
admi�Estrative sanctions imposed by HUD andlor DOL.
a. DaL debarment, Contractors andlor subcnntractars that are faund by the 5ecretary
of Labar to be in aggravated or willful vialatian of the labor standards provisions of the
Davis-Bacon ar�d R�lated Acts (DBRA) will b� ineligible {debarred) ta participaie in any
DBRA or Davis-Bacan Act con#racts for up to 3 y�ars. Debarment incEudes the cnntractar
or subcontractor and any firm, corporation, par�nership ar associatian in which the
contrac#or or subcontractor has a substantial interest. Debarmer�t proceedings can be
recommended by the contraci adminis#rator ar can be initiated by tt�e �OL. Debarment
proceedings are described in DOL regulatior�s 29 CFR 5.12.
b, o HUD sanctions may incfude Limited Denia�s of Participation {LDPs),
debarments an� suspensians.
#�imited Denial o� Parti��s�tic�ns HUD may issue ta the em�ioyer a limited denial
of participation (i.DP) which prahibits the employer frnm fu�fher participation in
HUD programs far a period up to one y�ar. The LDP is us�a!!y effective for the
HUD program in which the violation occurred and far the geogra�hic jurisdiction of
t�e issuing HUD ��ce. HUD regulati�ns concerning LDP's are found at 24 CFR
24.700-24.71 �.
3-4
2. Debarmentand s�s enq sions,� In certain circumstances, HUD may initiate its own
debarment or suspensian �rnceedings against a cantractor andlor subcantractar
in conn�ctian with impraper actions regarding Davis-Bacon obligations. For
example, HUD may initiate debarment where a cantractor has �een convicted for
making �afse statements {such as false sfatements on certified �ayrolls or ath�r
pr�vailing wa�e certifcations) or may initiate st�sper�sian where a contractor �as
been ir�dicted for makir�g false statements. HUD regulations concerning debarmen#
and suspension are found at 24 CFR Part 24.
� � � � � � � - � ; • .. ; ' • ;
• �. .
Contractors andlor su�contractors t�at are found to hav� willful�y fafsified payroli reports
(Statements vf Compliance), including carrection certified �ayral! reparts, may be subject
to civil or criminai �rosecution. Penalties may be imposed af $1,000 andlor ane year in
prison for eacf� false stateme�t (see Section � 001 af Title 18 and Section 239 of Title 31
of the United States Code).
Rememb�r; ifyou have any quesifor�s or need assis#ance concern ing Iaborstandards
requirements heip is always available. Contact the corttract administrator for the
project you're working on or the HUD Field �.abor Rela#ians staff in yaur area.
3-5
ACRONYMS AND SYMBOLS
j
' CDBd Comt�r�unity �evelo�ment efock Grar�t
�
., . . z , i�� . . tw'.. , , , _ .. .. .� .� v, . :-�: . .e,a , . _ �_ . , ..,�, ,. . ��, .�_, . . . , ,� r .��a'r .
CFR - Code of Federal Regulatians
s. � .�
: . ,:..
� } � .: -
, .• .:.: �,.; >�;_ .
> ,
��, CPR ; ' Cer�ified Payroll Report
�,. >. ��,;,� . - � �--�. _ ,<.,. ._ .,,, .._. . . i�. .�.v�_ .�. .. ...� :-.e .
CWHSSA - Co�tract Wark Hours and Safety Standards Act
,.:
..
DBA� Davis=Baco� Act
. . - .. . . � ,. E . . . _ . .. . . . r -a �. �. - ±. r . .� r . . _ C �3 . . . . . • . .. . , -. _ . ,. x . . -
❑BRA - Davis-Bacon and Related Acts
,..... � .'�'t f �'s .§.;' ,.::'- ,. ..'y .:7 - - ; _
�'-•: � .:�' ... ..�.�
" ?
= O�L` �r Depa�rkment of Labor , �
„ � ; :
.
: , , �:.: - � ,
., , .. ,. . . : , . _ .. . - , . .
; , n
.. . . . , , _ , . . ;� : -: ..
FHA - Federai Housing A�ministratian
_ _. ,.,, ;_
., _ .,.:. -, ;
` FI.SA F'air Labo'r SEas�dards Act .°
_ _ . . ,. . _ .
HUD - Housing artd Urban Development (Depariment o�
,., , , ,, . _ ,.
: !HA ` - indianv Hausing Authority, �;� � � '
LCA - Locai Can#racting Agency
°. I.QP - Limited Denial o€ Part�ci�atian.. -
OIT -
PHA-
SIT -
SAG -
T�H� -
§-
��
A-1
Over��me
Pc�blic Housing Ag�ncy
Straight-time
State Apprenticeship CouncillAgency
Tribally-Designated Hausing Entity
Section
Paragraph
[]AVlS-F3ACON - RELATED WEB SITES*
HUD Office of E.abor Relations:
www. t�ud.govlofficeslolr
HUO Regulations:
t�ttp:llwww.gpo.gav/fdsyslbrowselcoilectionCfr.aciion?colfectianCode=C FR
HUDCfips {HUD Forms and P�bfications):
www. hud.govbff cesladmlh udclips/index.cfm
DOL Davis-Bacar� and Related Acts Homepage:
http:llwww.dal.govlwhdlcontractsldbra.htm
DOL Regulations:
�ttp:llwww.gpo.govlfdsyslbrowse/colfectior�Cfr.actian?collectionCode=CFR
Davis-Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www,dol.govlwhd/pragramsldbral�orms. htm
*Web addresses active as of January 241 Z
A-2
U.S. �e�aartment of Housing
Project Wage Rate Sheet and Urhan �evetopment
Office of Labar Relat�or�s
Projec# Name: Wage Decision NumberlMociiflcatton Number:
Pro�ect Number: ProJect County:
,,,.
easlc ` - : Totai°; 3 k.abarers �
Wor� � -�- : � � �ringe ,
-. Hourty , Haurly , � �ringe . - $
Classificatfon � ` � �eneflts ,
Rate (8HR) Wage Rate: : Benefl#s
3�.
Bricklayers $ {3rQup.#� , BHF� : Total Waga
Carper�ters $ $
Cement Masans $ $
Drywall Hangers $ $
Eiectricians $ $
Iron Worlcers $ $
Painters $ �paratora Frtnge 8enetltss $
Plurnbers $ Group #>' : 8HR ' Total Wage
Roofers $ $
Sheek Metaf Warkers $ $
Soft �loor WorEcers $ $
i'apers $ $
7i1� SettEiS $ Truek Drivers �rEngQ 8anat3tst=. $
�ther Gfassiffcatlons Or�up � � BHR :''.Tataf Wage
�
$
�
Addittonal Classiticatfons (HUD Form 423�-A}
Wark �aslc Frin � 7atai oate af �ate of
Hourly � Flourly � HUD 5ubmiss#on� [30L
Ctassiftcation ' Ber�eflts pp�oval
Rate (BHR) Waga Rate- #a DOl. A
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U.S. Department of Housing and Urban Oe�elapmeni
Olffca of �epartmentai Operatians and Coordinatlon
Washington, DC 2�410
�rrtail: www.OfficeafLabor#�elatfons�hud.gov
l.abar Re#ations Desk Guide
LiiQ1.DQ
�tuEHroa
�' 55 y0
� i� . ��� GD
a*1111� *� "�
�'9 yJ fc:UA11f0U5Pq
A�N OEyti� OPPOFIYUH4YY
EYHIBiT "H-5"
sT��ttT oF coNSTaUCT�o�t FoaN�
C�ty of �'ort WorEh
Cornmunity Deveioprnent Block Grant (CDBG} Fe�nded
Construct#on Prnjects
STAR OF CONSTRZ1CTiON
(Date)
Project Nume:
Locmtian:
Pro�ect Number:
U.�. Department of Labor Wage Decision:
Tl�is is to inform you that
of
{Ac�c�ress)
,
Est�t�) Ezf�)
contract �vith you, as of _
(Narne of Company)
�
{City/'I'owr�)
,[ias st�rkec� work on the ��6ave referenced projsct cavered by our
(Date)
Respec:tfully yo�cs,
(Na�rtte nf ComE}any)
E3y
(Si�ature)
0
(Title)
EXHIBIT "H-6::
CONSTRUCTIQN COMPLETE �ORM
c�ry �f Fo� wo�te
Cammunity De�elogment Blocfc Grunt (CDBG} Funded
Cunstructian PrdJects
CONSTRUCTIO CUMPLET
D�te:
�'rnject Name:
Pro�ect C.acatian:
Project N�u�tber:
U.S. Department of Lahor Wage Deeision;
T}�is to infnrm yau that the:
of
{Address)
�.. .. �
(State) (Zip)
!�y aur contract wiEl� yau, as oF_
{N�me of Company}
(C ity/Tawn}
itias termin;�ted work on the above referenceci project cavered
I�espectfi�lly yours,
�y
(Nacne pf Cnmpany)
(Signature)
{"I';tle)
EYHIBIT "H-7"
CEO STATEVIENT
STATEMENT 4F POLICY ON
EQUAL EMPLOYMENT OP��RTUNITY
[t will be the galicy of' t�is �rtn to not discritninate agf►inst any �ppiic�rtt far ecnployment, or any
emptoyee, because of race, creed, colar, agd, sex, nr natural or�gin, This fimn witl insure tl�at this
policy is cont'snuaily enforeed with re�ard ta employment, promotion, up�rading, clemation, tr�nsfec,
recnxitmen#, �nd recruitment adv�rtising, lay off and ternnination, compensa�ion, training, artd
working conditions. We will m�ke it understood by �Il with whom we deat, and in aiI our
�mployment opportunity annvuncemen#s that the foregoing is our policy. All 1pplic�ts nnd
employees wiil be juciged solely on the b�sis o#'t�ieir s�Cill, cievotzon ioyalty, retiability and integrity,
Company N�►me
Sigr�ature
Date
EYHIBIT "H-8"
PE�YItOi.L DEDUCTION AUTHORIZATION F�R1�I
Pa rol! Deduct�on Authorizat�on
This is the auihorizatlon to the
to deduct f�om my paychecic $
is for item number:
REPAYMENT O�:
4.
2.
3.
4.
5.
6.
Laan
Retfrement
Ad�ar�ca on Wages
Savings
Sa�ings Bonc�s
Uniforms
'Thls deductian {s ta be made:
CHECK APPROPRIATE B4X
Employee`s Signature
Printed or Typed Name:
Project Name and Number:
7.
8.
9.
1 Q.
11.
12.
Credit Union
Pro�t Sharir�g
Donat�ons to Ager�cies
Insurance Premiums
Unian Dues
❑ One kime only
❑ Weekly
❑ Bi-weekly
V For weeks
❑
Date:
* This
K PAY 0.fk1 UFUi;(73t1� AE: [FIl3111/� IION 1)OC
EYHIBIT "H-9"
OF'FICER r1PYO1NTiY1ENT F'ORM
U. S. De�nrtment of Hnt�si�g und Urbun Deve(oprn�n#
CERTTFICATE FROM CONTRACTOR APPQINTING OFFICER OR EMPLOYEE
1'O SUPERViSE PAYMENT OF EMPLOYEES
Project N�une
Location
Date
Projec# No.
(i) (We) hereby certify chat (I am) (we are} {thc prirrte contractar) {a st�bcontrttcror} for
in connec#ion ►vith canstruction of the abnve-mentionecl Project, ar�d that {I) (we} have appainted
wh si � a e be;� w ta su e i e the ou I e�s e� '�
, 20^; tt�nt heJshe is in a posi#ian to have full knawlec�ge of the facEs
set fort� in the payrvlt dacuments anc� in the stutement of cornplilnce required hy the so-called
Kic�C-Bnck St�tut� �vhich ttelshe is to execut� wiih (my) (our) t�uil �ruthority and �tpproval �ntii
such time �s (t} (we) submit to
� iiew certific�te appointing sorrte other persnn for khe purpnses Ei�reinabave st�ted.
Attest (ifrequired}:
(Signature)
(TitEe)
:
(Titte)
NOTE: Tlus certiFcnte mt�st b� exeeuteci by art authorired ot�ficerroFa corporatic��t, by a rrfember
c��a partnership, or the sule utivner ��rtcf shall he exeeutecl prior to :�tt�l f�e submitted with ttte first
��ayraii. Shc�uEd the ti€l�t}jpit:� �14 C�lilll��C�, a new cert�ticate tnust accompany the ttrst payrc�lt fc�r
�vl3ich the new nppointce exeiutes �i statertt�nt oFcompfiance rec�uircd by the Kick-�ack Statute.
DAVDAO-! J�#O.3/2
(6-79)
EYHIBiT "i"
UEED OF TRUST �'OI2iYI
NOTICE OF CONFIDENTIALITY R�GHTS: IF YOU ARE A NATURAL PERS4N,
YOU MAY REMOVE OR STR�KE ANY OF THE F�LLOWING INFORMATION
FROM THIS INSTRUMENT BEFORE �T IS F�LED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMSER OR YOUR DRIVER'S LICENSE
NUMBER
D�ED OF TRUST
Terms
Date:
20
Granto�•: Tarrant County Housing Partnership, Inc.
a Texas nan-p�•oist corpa�•atior�.
Grantor's Mailing Address:
3204 Collinswo�•th Sfreet, Fort Worth, Ta�•rant County, TX 76107
Trustee: Vicki S. Ganske o�• Leaiui Guzznan
Trustee's Mailing Address:
CIO City Attorney's Office
100� Throckmorton St.
Fort Worth, Ta�•zant County, TX 76102
Lender: City of Fort Wo�-th, Teaas, a Texas municipal corporation
Lender's Mailing Address:
C/O Housing D�partment
1000 Throckmorton St.
Fort Worth, Tarrant County, TX '76102
Lvan Anfhority:
The loan evidenced by the Note and sccured by this Deed of Trust is being made pursuant
to the HOME Invest�nent Pa�•tnerships Program autk�o�•ized under Title II of the Cranstan-
Gonzales National Affo�•dable Housing Act of 1990, as ainended, 42 USC 12701 et seq.
(the "HOME Prog�•ann") and the HOME Investn�ent Pai�nership Prag�'am Final Rule, as
amended, 24 CFR Pa�� 92 et seq. (the "HOME Reguiations") with HOME funds.
Obligation
Nofe
Date:
20
Origin�al princi�al amoun�: $I 17,086.00
Borro�ve� : Tari�ant County Housing Pa��tnershzp, Inc., a Texas non-pzo#"it
corpo�•ation
DEED OF TRUST — TCHP
CSC No. G24794
Page 1
Rev. 5- I 7-13
Lender: City of Fort Woxth, Texas, a Texas inunicipal coz•poration
Maturity Date: , 20_
Property (including any inn��•ovements}:
�EE EXHiBIT "A" f1TTACHED HERETO AND INC�RPORAiED HEREIN FOIt A�,L PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance anc� Warranty:
Easements, rights-oi way, a�ld prescriptiv� �•ights, whether of record or not; all p�•esently
recorded and validly existing �•ecorded instruments ofihe�• than canveyances of the su��face fee
estate that affect the P�•opei�y, liens described in this Deed of Trust; and, taxes foz• the current
yeat•.
Fo�• value zeceived and to secure payment of th� Obligation, Granto�• coz�veys the Pi•operty
to Trustee in t��ust. Grantor warrants and agrees to d�fend the title to the P�operty, subject to the
Other Exceptions to Conveyance and Warz•anty. On payment of ti�e 4bligation and all othe�•
amounts secu�•ed by this Deed of Trust, t�is Deed of Trust will have no fuz•ther effect, and Lender
will i•elease it at Grantor's expense.
Ciauses and Cavenants
A. Grantor's Obligations
Grantor agrees io-
1. keep the Property in good zepair and condition;
2. pay all taxes a�zd assessm�nts an the Property be�ore delinquency and provide p�•oof
of payment o� same upon request by Lendez;
3. defend title to ti�e Propei-�y suhject to the Other Exceptions to Conveyance and
Warranty and p�•ese��ve the lien's priority as it is established in this Deed of Tz•ust;
4, rnaintain, in a form accep#able to Lender, an insui•ance policy that—
a. covers all imprnvements for their full insurable value as deterinined when
the policy is issued and i•enewed, unless Lender approves a smaller amo�.��zt
in w�•iting;
b. contains an SO perc�nt coinsurance clause;
DE�D OF TRUST --- TCHP Page 2
C5C Na G2471� ���, �-��-��
c. provides all-z�isk c�ve�'age;
d. p�-atects Lender with a standa��d ma�-tgage claus�;
e. provides flood i�1su�•ance at any tirz�e the P�'aperty is in a flood k�aza�•d area;
and
f contains such athe�• co�e�•age as Lender may reasonably require;
5. camply at a11 times with the requirements of the 80 pez'cent coinsurance clause;
6. delivei• the in.surance policy to Lender within ten days of the date of this De�d of
Trust and deliver �•enewals to Lender at least fifteen days before expiration;
7. obey a�l laws, ordinances, and �•estricti�re co�enants applicable to the Property;
8. keep any buildings occupied as required by tl�e insurance policy;
9. if the lien of this Deed of 'Trust is nat a first lien, pay or cause to be paid all prior
Iien notes and abide by o�• cause to be abided by ail prior lien instruments; and,
I0, notify Lendei• of any change of address.
B. Lender's Rights
1. Lender �nay appoint in writing a substitute tcustee, succeeding ta alI rights and
responsibilitics of Txustee.
2. �� #he proceeds of the Ohligatian a�•e used to pay any debt secured by prio�• liens,
Lende�• is subrogated to all the rights and li�ns of the holders af any d�bt so paid.
3. Lender may apply any p�•oceeds received under the insurance policy eithe�' to reduce
the Obligation or to repair or replace damaged or destroyed improve�nents covered by the poiicy.
If the Prop�rty is Grantai•'s primaty residence and Lender reasonably dete�'mines that rcpairs to
the improveme�ts are econoinically %asible, Lende�• will make the insuranc� proceeds available
to Grantor for repairs.
4. Notwithstanding ihe terms of the Note ta the contraiy, and unless applicabie iar�v
prohibits, all payments received by Lender fi•art� Granto�• with respect to the Obligation or this
Deed of Trust may, at Lende�•'s diser�tion, be applied fi�•st to amounts payabie undez• this Deed of
T�ust and then to amounts due and payable to Lendez• with r�spect to the Obligation, ta be applied
to tate charges, principal, o�• inter�st in the order Lender in its disc��etion dete��z�ines.
5. �f Grantor fails to perform any of Grantor's obligations, Lender �nay perforin those
obiigations and be reimbursed by Gzantor nn demand for any amaunts so paid, including
attorney's �ees, plus interest on those amounts fi•am the dates of payment at the rate stated in the
DEED OP TRUST — TCHP Page 3
CSC No. C-24714 Rev. 5-17-13
Note for matt��•ed, unpaid amoui�ts. The amount io be rei�nbursed wi1l be secuz•ed by this Deed of
T�-ust.
6. If there is a default on tk�e Obligation or if G�•antoz• fails to perform any of G��antor's
obligations and tl�e default cozatinues aft��• any required notice af th� default and the time allowed
to cu�•e, Lender may—
a. deciare the unpaid p�•incipal balance and ea�•ned inte�'est on the Obligation
imrnediately due;
b. direci Trustee ta foreclose this lien, in which case Lender o�• Lender's
agent will cause notice of the foreclosure sale to be given as pxovided by
the Texas P��a}�erty Code as then in e��ect; and
c. purchase the Pi•operty at any �areclnsure sale by offering the highest bid
a�id then have the bid credited on the Obligation.
7. Lender �ay remedy any default without waiving it and n�ay waive any default
without waiving any p�•ior or subsequent defaul#.
$. If ihe Property is acqui�•ed by Lender by fareclosu�•e, G�•antot�'s right io any
insurance policies and p�'oceeds resulting fram da.inage to the P�•operty prior the acquisition s�all
pass to Lendez• to the extent of the sums secured by this Deed o� Trust immediateiy pz•ioz ta the
acquisitzon.
9, Lender or its agents may make reasonable entries upon and i�spections of the
P�•opei�y. Lender shall give Bor•rowei• notice at the time of or prior to an inspection giving
��easonable cause for fihe inspection.
G Trustee's Righ#s and Duties
If di��ected by Lender to fa�•eclos� this lien, Trustee will-
1, either personally or by agent give natice of the Foreclosure sale as z�equired hy the
"I'exas Prapet�y Cade as then in effect;
2. sell and cor��ey all or part of the Property "AS TS" ta the k�ighest bidder for cash
wzth a general warranty b�nding Grantor, subject to il�e Prior Lien and to the �ther Exce�#ions io
Canveyance and Warraniy and without zepresentation or warranty, expr�ss a�� implied, by
Trustee;
3. fiam the proceeds of the sal�, pay, in this oz�dez•—
a. expenses of fo�•eclosure, i�cluding a reasonable coz�rnissio�� to Tcustee;
DEED OF TRUS'T' — TCHP Page �l
CSC N o. C-2�71 �S Rev. 5-17- i 3
b. to Le�der, th� full amaunt of principal, inte�•est, atto�•ney's fees, and other
chaz�ges due and unpaid;
c. any ama��nts r�quized by law to be paid be�are paym�nt to Grantor; and
d. to Gz•antor, any balance; and
4. b� inde�rnnified, held harmless, and defended by Lende�� against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution oz• enfarcement of the tr�tst created
by this deed o� t��ust, which includes all coui�t and other costs, inciuding attorney's fees, incu�•red
by Trustee ir� defense of any actior� or p�'oceeding taken against Trustee in that capaciry,
D. General Provisions
1, If any of the Property is sold undea• this Deed of Trust, G�•antor must immediately
�uzz•ende�' possessio�� to the purchasei•. If Grantox faiis to do so, Granto�• will b�come a tenant at
suf�erance of the purchaser, subject to an action for foi•cible detainer.
2. Recitals in ai�y trustee's deed canveying the Propez�ty will be presumed to be true.
3, P�•oeeeding �nder this Deed of Trust, fiiing suit for fo�•eciosure, or pu�suing any
other remedy will not constitute an. electioal of remedies.
4. This lien wi11 zemain supe�•ior to lier�s later created even if the time of payment of
all o�• pa��t of tihe Obligation is extcnded or part of tl�e Prope�•ty is released.
5. If any partion of the Obliga#ian cannot be lawfully secured by this Deed o� Trust,
payments wiil be applied first to discha�•ge that portion.
6. Grantor assigns to Lendei• ali amounts payable to or received by Grantor from
condemnation of al l or pa�•t oi the Yrope��ty, from private sale in lieu of candexnnation, and fi•om
darnages caused by public wo�•ks or construction on or near the Property. Aftei• ded�cting any
eYpenses incurred, including attorney's fees and cau�� and other eosts, Lender will either release
any z•ernaining amounts to Grantor or apply stizc� amnunts to red�ce the C)bligation. Lender will
not be liable for faiiu�•e to collect or to exercise diligence in collecting any such amounts.
G�•antor will immediately give Lender notice of any actual oa threatened proceedings �ar
cande�nnation of aIl o�� pat� of the Prope�•ry.
'�. Gxanto�• assigns to Lez�der absolutely, not only as cnilate�•al, all p�•esent and future
rent and other incorne and receipts from the 1'rope�•ty. Grantor wa�•rants the validity and
enforceability of the assignm.ent. Grantor may as Lender's Iicensee collect �•ent and other income
and �-eceipts as long as G�•antnr is noi in de�ault with respect to the 4bligation or this Deed of
Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and
D��D OF TRUST -- TCHP Page 5
CSC No. G24714 Rev. 5-17-13
pe�•�orir�ance of this Deed of Trust, 6ut if the rent and othe�• incarn� and r�ceipts exeeed #he
amaunt due with respect to the Obligation and the deed of t�•ust, Gra��toc may retaiz� the e�cess. �f
Granto�• defaults in pay�nent of the Obligation oi� perfo��mance of this Deed of T�•ust, Lender may
terminate Granto�•'s license ta collect r�nt and othe�• incaine and then as Gz•a�ztar's agent may �•ent
the Property and collect all �•ent and other incon�e and receipts. Lende�• neither has no�• assumes
any obligations as lessor oz• landlord with respect ta any occupant of the Property. Lender may
exe�•cis� Lender's �•ights and re�nedies under this parag�•apk� without takin� possession of the
Properry. Lender will apply all �•ent and other incoine and 1•eceipts coliected under this paragraph
first to expenses incurred in exezcising Lendei•'s rights and re�nedies a�d then to Grantoz•'s
obligations with respect #o the �bligation and ti�is Deed oi Trust in the ardc�• determined by
Lender. Lende�• is not rec�uired to act under this pazagraph, and acting unde� this paragraph daes
not waive any of Lender's othei• rights or �•eza-�edies. If Grantor becom�s a voluntaxy ar
involuniazy debtor in bankruptcy, Lender's filin� a proof of claim in. bankruptcy wiil be deemed
equivalea�t ta the appointment af a receiver under Texas law.
8, Interest on tlie debt secu�•ed by this Deed of Trust will not exceed the �na�imum
amouni of nonusurious anterest that nlay �e cant�•acted fa�•, taken, reserved, charged, a�• received
uz�der Iaw. Any interest in excess of that maximuin atnou��t will be credited on the principai of
the d�bt o�•, if that has been paid, re�und�d. On any accele�'ation or r�quired ar pe�•mitted
prepayment, any sL�ch excess will be cane�ied automatically as of the acceleratian or prepaymcnt
ar, if already paid, cr�dited on the principal of the debi ar, if the principal of the debt has been
paici, refunded. This p�•ovision ov�rrides any conflicting p�•ovisions in this and ali other
instruments cancerning the debt.
9, In no event rnay this Deed af Trust secure payment of any deht that may not
lawfully be secured by a lien an reai estate or create a lien otherwis� prohibited by law.
10. When the context requires, singula�• nou�zs and pronouns include the plural,
11. The t�rm Note includes all extensions, inadiiications, and renevvals of the Note
and a11 amounts s�cured by this De�d of Trust.
12. This Deed of Trust binds, bene�"its, ar�d may be enfo�•e�d by the successors in
interest o£ all parties.
13. If G�•anto�� and Borrowe�• a�e not the same pe�•san, the ierr�i Gs�at�tor includes
Bo�•z awer.
14. Gxantor and eacl� surety, endorser, and guarantor of the �bligation waive all
demand fo�• payment, presentation for payment, notice of intention to accelerate �naiurity, notice
of accelez�ation of maiurity, protest, and notice of protest, to the extent permitted by law.
15. Grantor agrees to pay reasonable atto�•ney's fees, trustee's �ees, and coui�t a��d
DEED OF TRUS'C — TCHP Page 6
CSC No. G24714 Rev. 5-17-13
other costs of enforcing Lendei's rights unde�� tkiis D�ad of Trust if this De�d of Trust is placed in
�he hands of an atto��ney.
16. Ii any provisio� of this Deed of T��ust is determined to be invalid ar
unenfo�ceable, the validity or enforceability of any other provision will not be affected.
17. The te��rra Lender• includes any rnortgag� sej�vicer for Lender.
18. G�anta�� r�presents that this Deed of Trust and �he Nate are given for the following
purposes:
The debt evidenced by the Note is in payinent of the purcl�ase price af the
Property; the debt is secured both by the Deed of Trust and by a vendor's lien an
the Property, whic� is exp�'essly retai��ed in a deed to Grantor of even date. T�is
D�ed of Trust does nnt wai��e the ve�do�•'s lien, and the two liens and tlle rights
created by tl�is Deed of Trust are cun�ulative. Lender may elect tn enforee either
of the liens withaut waiving the othe�• or may enfa�•ce both.
19. If the P��ope��y is transf�rred by fareclos��re, the trans�eree r�vill acquire title �o ail
insurance policies on the Propei�ty inciuding all paid but unearned pretniu�ns.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and invoke any remedies p�•ovided in this Deed of Trusfi far d�fault if Grantoz• t�•ansfers any of the
P�•operty to a person who is not a permitted ti•ansferee without Lender's px�ar wriften consent.
"Pe�•rnitted transferee" naeans any other pe�•son cantroiling, cant�•olied by, or under common
control with Grantor. Lender shall not exercise this aption if federal law as of the date of tk�is
Deed af Tru�t prol�ibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RE�TRICTIONS:
The Note is the Note required in Ciry Secreta�y Contract No. between. G�'antor
and Lender dated , 20_ and has been executed and delive�•ed in accordance
wit� that contract (the "Cant�'act"). The f�nds advanced by Lender are HOME funds and
the Contract requires that the residential housing located on the P�•aperty and constructed
with a portion af the HOME fi�nds must qualify and �•emain affo�•dable housing in
acco�•dance with the HOME Program and the HOME Regulations for a specifi�d time
period as more pa��ticularly described in the Cnntract (the "Afi'o�•dabiiity Pe�•iod"). Th.e
loan evidenced by the Note and secured by this Deed of Trusi �vili be in default and the
Principal Amaunt and any othe�• sums due thereunder may be declared im�nediately
payable if all of the �•csidential housin� located on the Prope�•ry is not sold to eligible
homebuyers as more pat•ticuia�•Iy ctescribed in the Cont�•act and the HOME Re�uiations.
This Deed of Tz ust has also b�en executed and deliv�red pursuant to the terms af the
DEED OF TRUST -- TCHP Page 7
C�C No. C-2�714 Rev. 5-17-13
Cantract. G��antor agrees to perfo��� each and every obligation set forth therein and wiil
not pez•n�it a default to occu�• t�ereunder. Any d�fault in the performance of G�•antor's
obligations under the te�•ms af the Contract or the HOME Prog�•am or HOME Regulations
shall be deemed a default in the #e�•ms of the Note and Lender may declare the debt
secured by this Deed af Trust immediately payabl� and invoke any �•emedies provided
herein for default.
22. Pz•ovided that Grantor is not in default under any of the terms and conditions o�
this Deed of Trust, the Note, o�� the Contract, and provideci no event has occurred that, with
notice, passage of time, or both, wiil becoine an event of default, Grantor is entitled to pa�•tial
releases of the lien of this De�d of T�•ust.
23. THE N�TE AND THE DEED OF TRUST CON�TITUTE 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.
TARTZANT COUNTY HOUS�NG PARTNERSHIP,
INC.
Donna VanNess, P�•esident
STATE OF TEXAS
COUNTY OF TARRANT
This inst�•ument was acknowiedged before me on , 20� by Donna
VanNess, the P�•esid�nt of Tarrant Caunty Housing Pat�trzexship, Inc., a Texas non-prafit
corpo�•ation, on behalf of said corpoz•ation.
NOTARY PUSLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Foi� Worth
C!O Housing anci Economic Development Department
iooa Tn��o��a��on st.
Foxt Wai�h, Tarrant Coti�nty, TX 7b102
DE�D OF TRUST — TCHP Page 8
CSC No. C-24714 Rev. 5-17-13
EXHIBIT "A"
1330 E. Jeffe�•son �venue; Lot 1, Block 52, Highland Pa�•� Additia��, an Addition
to the City of �'ort Worth, Ta�•rant Caunty, Texas, accoxdin� to the Plat recorded
in Volume , Pa�e _, Plat Records, Tarrant County, T�xas.
DEED OF TRUST — TCHP Page 9
CSCNo. G24714 Re�. 5-17-13
PROMISS�RY NOTE
Date:
20
Borro�ver: Tar�•ant County Housing Partnership, Inc.
a Texas non-profit co�•paratioi�
I3orrower's Maiiing Adciress:
3204 Colli��swoi•th Street, Fort Wo�•tk�, Tar�•ant County, TX 76107
Lender: City of I'oxt Worth, Texas, a Texas municipal carporation
Place for Paymenr:
C/O Directoz• of Housing and Economic Deveiopment Departrz�ent
1000 T�rockmo�ton �t.
Fort Worth, Tarrant County, TX 76102
oz• at any other place that Lender may designate in wx iting
Pri�cxpal A�nount: ONE HUNDRED SEVENTEEN THQUSAND AND E�GHTY SIX/100
DOLLARS ($117,OSb.00)
Loan Autharity:
The loan evidenced by this Note is being made pu�`suant to the HOME Investment
Partnerships P�'og�•am authoz•ized under Title II oi t�e Cranston-Gonzalez National
Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq. ("HOME Program")
and the HOME Investment Partnerships Program Final Rule, as amended, 24 CFR Part
92 et seq. (ihe "HOME Regulaiinns"} with HOME funds.
Annual Interes# Rate: Zero Percent (0%)
M��r�rity Date: , 20_
Ann�al Interesf Rate on Matu�•ed, Unpaid Amnunts: Six Percent (6%)
Terms of Pa�ment {principal and inferest):
This Note is the Nate r�quired in City Secretary Contract No. between
Bo�'row�r and Lender dated , 20 and has been executed and d�livered in
accordance vvith that conizact {th� "Cantraci"). The funds advanced by Lender are
HOME funds and the Conti•act �•equires that the i•esidential housing located oz� the
Property and constructed with a por�ioz� of th� HOME funds rraust qualify and re�nain
affordable housing in accordance with the H�ME Pi•ogram and ihe I�OME Regulations
for a speciiied time period as more particulaz•ly desci•ibed in ihe Contract {the
"Affordability Period"). "The loan evidenced by this Note will be in default and the
Pi•incipai Amount and any other surns due hereunder may be declared irt�rnediately
payable if all of the �esidential housing located on the Propei�ty is not sald to eligible
homehuyers as more particula�'ly described in �he Cantract and the HOME Regulations.
PROMiSSO[�Y NOTE -- TCHP Page I
CSC No. rev. OS-17-13
The Principal Amount is due and payable on , 20_ and any interest is due
and payable at maturity. Payments wil( be applied fi�•st to acciued int�rest and the
remainder to reduction of th� Principal Axnount.
Secur�ty fnr Payment:
This Note is secu�•ed by a Deed of Trust of even date fi•om Bori•ower to Vicki S, Ganske
or Leann Guzman, Trustee, both af which cover the follawing real property:
SE� EXH3BIT "A" ATTACHED HERETO AND 1NCORPORA'I'ED HEREIN �"OR ALL PURI'OSES
Other Sec�rity for Payrnent:
4ther real propei�ty acquiz•ed by Borrow�r pursuani to the terms of th� Contract to
const�•uct a total of ane (1) residential hom� for saie to an eligible low-income
l�omebuyer.
Bo�•rower p�•omises to pay to the a;•der of Lender the �'rincipal Amount, This Note is
payable at the Place for Payment and accarding ta t�e Terms of Payz�r�ent. All unpaid amounts
are due by the Maturity Date. Afte�• matuz•ifiy, Ba�'rower promises to pay any unpaid principal
baiance plus interest at the Annual Interest Rate on Matu�•ed, Unpaid Amounts.
If Borrower defaults in the payment of this Note a�• az� the perfor�nance of its obligatioz�s
unde�• the Cantract oc the HOME P�•ogram or the HOME Regulations or any other obligation in
any instrun�eni securing or collateral to this Note, Lender inay declare the unpaid principal
balance, eai•ned interest, and any other amounts awed on tk�e Nate immediately due. Bo�•�•ower
and each sur�ty, endorser, and guaranto�' waive all demand foz• payment, presentation for
payment, notice of intention to accele�•ate maturity, notiee of acceleration of maturity, protest,
and notice of protest, to the extent pern�itted by Iaw.
Borrowe� also pz•amises to pay reasonable attorney's f�es and coui-� and othez costs if this
Note is placed in the hands of an attorney ta collect o�• enfa�•ce the Note. Thes� expenses will
bea� interesti fram the date of advance at the Annual Inte�•est Rate an Matured, Unpaid Amounts.
Bo�•rower will pay Lende�� these e,�penses and inte�•est on derr�and a# the Place for Payment.
Thes� expenses and interest will becoxrae part o� the debt evidenced by the Note and will be
secured by any secux ity f�r payment.
Borrower may prepay this Note at any time before the Maturity Date withou�# penalty or
premium so long as the ��eszdential housing iocated on the Prop�rty and any other z•eal praperty
acquired by Bo�•rower pursuant to the te�•m� of the Contract and const�•uct�d with a portion of the
HOME funds qualiiies and remains a��ordable housing in aecordance with the HOME Program
and the HOME Regulations for the applicable Affardability Period specified in the Contract.
Interest on the debt evidenced hy this Nofie wi11 not exceed the inaximum �•ate ar amount
of nanusurious interest that z�ay be cont�•acted for, taken, reserved, charged, or received under
law. Ar�y interest in excess of that maximu�n amount will be credited on the Principal �maunt
or, if the Pz•in.cipal Amount has been paid, refunded. On any accele�•ation o�• �•equired or permitted
prepayment, any excess interest will be ca�celed automatically as of the acceleration or
pr�payment or, if tl�e excess interest has already been paid, credited on the Pi•incipal Amout�t or,
PROMISSORY NOTE — TCHP Page 2
CSC No. rev. OS-17-13
if t�ie Principal Amotiint has been paid, refiinded. This provision ove�•�ides any conflicting
pz•ovisions in this Note and all other ir�struinents conce��ning the debt.
Each Borrower 15 F�S�lOX1Slb1� for all obligations represe�lted hy this Note. V+jh�n the
cantext requires, singular nouns and p�•anouns include the pluzal.
TARRANT COUNTY HOUSING PARTNERSKIP,
INC.
Donna VanNess, President
PROMISSORY NOTE -- TCHP Page 3
CSC No. rev. OS-17-13
EXHIBIT "A"
1300 E. Je�fersan Avenue; Lot 1, Block 52, Highland Park Add�tion, an Additio�i
to the City of Fo�•t Worth, Tarrant Couniy, Texas, according to the Plat recorded
in Volume , Page _, Plat Records, Tarrant County, Texas.
PROMISSORY NC)TE — TCHP Page 4
CSC No. re�. OS-17- I 3
EXHIBIT "J"
ENVIRONMENTAL MITIGATION ACTION
NOT APPLICAI3LG
EYHIBIT "K"
SCCTi�N 3 REPORTING REQUIltE�IENTS
EXHIBIT "K"
Section 3 Summary Report
Economic O�partunities for
Low — and Very l.ow-Income Persons
Secdon ba�h of page fa PuWic ReporEing fiurden stalemenl
U.S. Deparlment of Housing
and Urban Developmenl
ON'ice ot Fair Housing
And Equal Opportuniiy
OMB Approval No; 2529-Op43
{exp. 1113012414)
HUO Field Off�co:
1. Roapiani Nama & Address: (stteeE, city, slate, zip) 2. Federa] Ident,ficauon: (grant no.► 3. iolsl Amounl of Award:
4. Conkact Per3at 5. Phone: (Induda fltea coda�
6. Lenglh of GraM: 7. Reporting PeAod:
8. Dala RQport Submitlsd: 9. P�og�am Code'. (Use 5eparate shao! 10. f'rogrpm Name;
fa� eath p�ogram codo}
Part !: Em !o ment and Trafnln `" Golumns B, C and F are mendato fi�lds. Include IVew Hires in �&F
A B C � E F
Number of Nur�ber of Hew Ya of Aggregale N�mber %of Tolai Slalf riaurs Nurnber W Seciion 3
Job Cate9ory New Hirea Hiraa �ha1 ara of StaFl Hours oE A'ew F�res for Saction 3 Employeas 7rainees
Sec. 3 Rosidan4s lhet ere Sec. 3 Residenls and 7rairrees
Protesslonals
Technicians
Oft€ceFCterical
Conslr�ction by Trade (tist}
Trade
Trade
Trade
"frade
Trade
oEher List
7ota1
' Program Codes
1 = FloxibP9 S�bs[dy
2 = SeUion 292l8t 1
3 = P�,bliGindian Housing
A = Oeti�elopmenl,
8 = 6pereSion
G = Modemfzalion
Page ! of 2
4 = Homeless Assislance
S=HOME
8 = HOME Stala Adminfsterad
7 = COBG Enlillement
8 = C�OG SIa1a Administared
4 = Olher C� Programs
10 = 6ther Housing Programs
torm NUO &OUO2 (sn00i)
fte! 24 CFFt 135
Part It: Canlracfs Awarded
1. canslruction contracls:
A. Tntal dollsr smount of all wnlracls awarded on !he project
8. Total doller amount of conttacts awerded to Sectson 3 husinesses
C. Petcentaga of lhe iotal dOlidt am04nt Ehat was awardad ta SeCRiOn 3 businesses
D, 7otaE number of Section 3 pusiqasses recaiving wntracts
2. Non-Conslr�cllon Contracts:
A. To1al dollar amount all non-cansltuclinn contracis awarded on ihe projecUaclihly
B. Tota1 dalfar amount af nomconesruction co�iracts awarded io Seclion � businesses
C. Percentage of 1he total doller amount lhat was awarded Eo Sacfion 3 businesses
D. Tatai numUer of Section � businessss receiving nan-construction wnt[acEs
Part Ill: Summary
[ndicate lhe efiorts made to ddrect ihe empfoyrrtent and olher economic appprtunifles generated by HUb financ€al assistance far housing
and comrnunity developrttent programs, lo the greatest exEen! feasible, loward low-and vary !ow-incoma persons, particu(arly Ehose wiio
are recipients of government assislance for housing. {ChecEc a11 Ihat apply.)
Attempted to recruil [ow-ineo�ne residents fhrough: local advertising media, sfgns prar►tinenEly displayed at lhe project siie,
eontracls wiih lhe comrttunity organizalions anc! public or private agencies operaiing wilhin the mefropolitan area (o€
nanmetropolilan county) in which lhe Seclion 3 covered program or projecl is localed, or similar meihads.
Participated in a HUD program or ather program whlch promates ihe Irainkng or empfoymenl of Seciion 3 residents.
Pariicipaled in a HUD program nr oiher peogram vhtich promates the award of caniracis to husiness cancerns whlch meei Ehe
definitian of Section 3 business concerns.
Goordinaled wilh Youthbuild Programs administeted (n th� metrapolitan area In which lhe Seciion 3 covered project is located.
f}ther, ctesc€i6e below.
Publfc reparEing [or lhis colfection of infarmatian {s esiimated to average 2 hours per response, includ[ng lhe iime for revlewing instrucl�ons,
searching exisling data saurces, gathering and maintaining ihe data needed, and corr�pleting and reviewing Ihe colfecEian af information.
This agency �nay nol colEecE this intormaiion, and yau are nat requlred to compleEe lhis Form, unless il displays a currently valid OM8
number.
Secl�on 3 of it�e Fiousing and Urban Qevelopmenf AcE o( 1968, as amended, 12 U.S.C. 1701u, manda#es lhat lhe Oepartmenl ensures that
employment and other economic opporlunilies generated hy iis I�ousing and community deveiopmertt assistance programs are directed
toward !ow- and very-fnw income �ersons, patlicularly lhase wha are Eeclpienis of government assislance housing. The regulalions ara
found a124 CFR Par� 135. The informatian will be used by lhe I�epartrtsent to moniior program recipients' compliance with Section 3, Eo
assess the results af ihe Deparimen!'s e(toris ta meet [he staluEory objeclives ofi 5ection 3, to prapare reports to Congress, and by
reciplenls as self-monitoring toof, The data Is entered inio a daEabase and will be analyzed and dlstri6uted. The collection af lnformation
invo[ves recipients receiving Federal fnancial assisiance tor hausing and communiEy developmenl programs covered 6y Seclion 3. The
in[ormation will he collected annually to assist iiUf] in meeting its reporting requirements under SecEion 808(e)(6) af 1he Fair Fiousing Act
and Seclion 91fi ot lhe FlCDA af 1992. An assurance of co�tfideniiality is noi appEicable tq Ehis [orm. The Privacy Act oF 1974 and E3MB
Cfrcular A-1o8 are not applicable. The reporting requiremenis do not contain sensitive queslions. €7ata is cumulalive; personal ideniifying
i€iformation is nqt included.
Page z a 2 rartn riuo saoo2 [> >noiof
Ref 2d C�ft 135
�orm HUD-60002, Sectlnn 3 Summary itapart, Economlc OpporlunlUes ior Low- and Very Low•Incomo Persons.
Inafructlone: This tarm is to be used to report annual
accompl[shments regarding employment and olher econo�rtic
oppoAunities prov€ded fo iow- and very low-income persons under
Sectian � of !he Housing and Urtran Oevelopment Acl of 1988. ifie
SecRian 3 regulaGons apply lo any publlc and Indla» houaing
prngrems ihat receive: (1} development assislance pursuant to
Saclian 5 of lhe U.S. Housing Acl of 1937; {2) operaiing assisiance
pursuant to Secfion 9 0! ihe U.S. kiousing Act oi 4937, ar (3}
moderniza6on grants pursuanl in Section 1A of the ll.S. Fiousing Act
ot 1937 and to reclple�la nf hauaing and cammunEty duveEopment
asststance In excaaa of 5�00,000 expended Eor. (1) housing
rahabiiitation (Induding reduclion and abatement oF fead-hased paint
hazards); (2) housing consfruction; or (3) other puhlic canslrucHon
pro;ecis; ar�d io confracfa and subcontracfa In excesa ol 5100,00a
awardad In cannection wilks Ute Sectian-3�overed aclivily.
Farm HUO-80002 has threa parts, which are to he campteted €or
a11 programs covared by Section 3. Part I rel8lea 3a employment
and lralrring. The recipient has 1he option to determine numerical
employmenUcraining goals efiher on 1he hasia oF the numbar ol hours
worked by new hires {cafumns B, a, E and F). Part it oi ihe farm
relates Eo conEraating, and Part III sutnmarizas reciPienls' e!larts io
comply wilh Sectlon 3.
Recipienls or canlracmrs su6ject to Section 3 requiremenls must
maintain appropriata documentation to establish ihat HU(J financial
assistance (or housing arsd commun3ty devalopment progrems were
directad taward low- and very low-income persons.` A recipient of
Seclion 3 co�ered assistance shaA su6rnit ane copy o# lhis re}�ort to
HUD Headquarters, Qfrice oi �air Nausing and Equai Opportunity.
Whera !he program prnviding assistance raquitas en annual
perfomtanca repart, ihis Seclion 3 report is to ba su6m'stted at the
same l�me Iha program peAormance report is su6miited. 4Vhere an
annual peAarmance report is not required, IhBs Sectfon 3 report is !o be
submilied by January 10 ancf, if the prajact ends hefore Oecembar 31,
wilhin 10 days of projecl completion. OnFy Prlme Reclpfer�fs are
req+ilred to raport fo NUD. ihe report mustlncl�tda
accompNshmenfs of all raclpler�ts and thelr SectJon 3 cavered
contractors and sehconfracfo�s,
kUt] Field Olfite: �nterlhe Field O[fsca name .
1. E2ecipienl: Enter Ihe nama and address of the recipienE
submiiRing this reporf.
2. Federai tdentification: �nter iha number that appears on tha
awerd form {with dashes). The award may ba a qrant,
caoparative agreemani ar contracl.
3. �ollar Amount of Award: �nter Ehe dollxr amaunl, rounded to Ihe
nearesl dollar, recaived hy the recipie�t.
4& 5. Coniact PersoNPhona: Enter 1he name and ietephone numher
oF the pevson with &nowledga ot Ihe avrar8 and 1he recipient's
implementation of Seclion 3.
B. Reporting Periad: Indicaie the lime periad {rnanths and year)
�his repostcovers.
�, flaie Report 5ubmiitad: EnRer lhe appropriaEe date.
progrem Code: �nler ihe appropriala program code as listed at
tha hottom af the paga.
Pragram lVame: Entar tlia name of HUD Program carrasponding
avilh lhe `Program Code' in number 8.
f'arf 1: Emptoyment and Training QpgortunEUsa
Calumn A: Cantains various Jab caEegorias. Professionals are
de[ined as peopla who hava special knowledge of an otcupalian (i.e.
supervisars, archisecta, sunrayora, planners, and wmputer
programmers). Far conslnFcUon pasitians, tist eatn Erade and prohde
cfata in cofumna B Ihrough F for each trede whete persons ware
employecE. 7he caiegory of'QtheP inc[ades accupations auch as
service workers.
Colam� B: (Mandatory Pleld) �nter the number of new hires for
each category of workers ideniifted in Colu�nn A in eanrsectian wilh
lhis award. New hira refers ta a person wha is not on the contractor's
or redpienYs payro4l tor empEoymenE allhe tima of aelecUon for tha
Secllon 9 wvered award ar at the time ot receipE o( Seci�on 9 covered
assisiante.
Column C: {tJlandatory Klaidj Enter !he number of Section 3 new
hires for each caiegory of v�orkers ldentified €n Column A in
connection wilh this award. Seclian 3 new hire retets to a Seclian 3
resident who is nol on iha contractor's or reeipianE's payroll !or
emp[ayment at lha Ume oE selection far tha Seclbn 3 covered award or
at iha time ot recaipl of Seclinn 3 covered assisfante.
Ca[umn U: �nter ihe percenlage of a11 iha staf( haurs of naw hiras
(Sectian 3 residenta) in wnneclion wilh Ihis award.
Cofumn E: Enter ihe percen(age of ihe lotai staH hou[s worRed far
Seclion 3 employees and irainees {including new hires) connacted
with this award. InGude alaff haurs for paR-lime and tull-iima
posilions.
Column F: {Mandatary Flaldj Enter 1he number of Section 3
rasidersis ihat were trained in wnnect€on wilh this award.
Part tl: Conlracl Opportuniftes
E3tack 1: Conslruction Cantracts
Item A: Entet the tatat do!!ar arttaunt of all contracis a�varded on ihe
grojecVpragram.
Item B: Enter Ihe total dollar amount oE conlracts connected with th€s
projectlprogram litat ware awarded to 5ecEian 3 businesses.
[tom C: Enter lha percentage of !ha totai dollar amoun! aF coniracls
conr�ected with this project/program awarded tn Secllan 3 businessas.
ltam R: Enter the number o( Section 3 businesses receiving awards.
Black 2: Non-CanatrucFion Canlracix
liam R: Enier the totat dollar amount of a!I conlracls awarded on lhe
proJecVpragram.
item 8: Enter the toEal doilar amount af coniracts cannecled with lisis
project awarded to Section 3 bus€nesses.
]lem C: EnRer the perceniage of ihe toEal dallar amount af canlsacls
connected wilh lhis projecUprogram awarded ia Seclion 3 businesses.
Itortt U; �nter fhe numher of SecGon 3 businessea receiving awards.
part lll: Summary of �Horts — Snlf exptanatory
Suhmit orse {1} copy oE th'ss repa�t to fhe Hll� Headquarters Office of
Fair Hous€ng and Equa1 Oppa�tunity, al the same lime tha
performance report is suhmifted to the pragrarn offica. The Seclio� 3
report is submitted by January iil. InGude only contratts executed
during tha period specified in ilem 8. PNAs11HAs are lo report ali
conV acEslsubtanlracEs.
• The terms'tow-Incame persans' and very low•i�come persons' have
lhe sama meanings given !he terms in seclian 3(b) (2) of the Uniled
Sia3es iiousing Act of 1537. Low-lncome persons mean famiiies
(incfuding single persans) whase incomes do noE exceed 8D percent of
tha medien incoma !o[ lhe area, as determined by tha Secre€ary, with
adjustmanEs for srr�aller and farger fami€ies, except tha(
7he Sec€elary mey eslabNsh inwme ceilings higheror lower khan &0 percant
ot Ihe median for tEte area nn the basis of Ihe Secrelery's Findirtgs such that
veriations are necassary hecausa of prevailing levels of tqnslruclion wsis
or unusual ly high• or taw-income families. Very lowdncoma pe�sons mean
low-income families (induding sfngle persons) whose incomes do not
axceed 50 parcent of iha median family inwme area, as datermined by iha
Sectelary wilh adjustments or smaller and [arger Fami€ies, axcepE that the
5ecrelary may estabiish income ceilings higher or fower than 59 percent oF
the median far the araa on iho basis of lhe Seaelary's findings that such
variaGons ara necessary F�ccause of unusualiy high or iaw family incames.
Page i fam HUP fi0002 (1112016J
Ref24CFR 335
M&C - Councii Agenda
City of Fort Worth, Texas
iVlayor and Council Communication
C�UNCiL ACTI�M;' Approved'on 312712�12 ' i
DATE: Tuesday, March 27, 2012
LOG NAME: 17TCHP HILLSIDEIMORNINGSIDE_10
REFERENCE NO.. CW25631
,SUBJECT:
Autt�arize Expenditure in the Amount of $1,115,000.00 of HOME Investment Partnerships Program
Grant F�nds to Tarrant County Housing Partnership, lnc., for the Development of Ten Single Family
Houses in the Hillside-Morningside Neighborhood, Authorize Execution of Conditional Cornmitments
and Contracts (COUNCIL DISTRICT 8)
REC EN�
It is recommended that the City Council:
1. Authorize substitution of funding years in arder to meet commitment, disbursement and expenditure
deacllines for grant funds frorn the United States Department of Housing and Urban Develo�ment;
2. Authorize expenditure of $1,115,O�Q.O� in HOME lnvestment Partnerships Program Grant funds as
allocated in the 2011-2012 Action Plan to Tarrant Ca�niy Housing Partnership, inc., a certified
Comr�uniiy Housing De�elopment Organization, for the develapment of up to ten single famiiy houses
in the Hillside-Morningside neighborhood;
3. Authorize execukion of conditionai commitments with Tarrar�t County Hausing Pa�#nership, lnc., that
conditions funding, among other things, on satisfactory completion of HOM� InWestment Par�nerships
Program requirements;
4. Authorize execution of contracts with the Tarrant County Housing Partnership, Inc., for the praject
for a three year term beginni�g on the date of execution of the contract;
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Ni3cC - Council Agenda
5. Authorize extension or renewal of the conditiona! cornmitment{s) or ti�e contract(s} i# Tarrant Coun#y
Housing Partrtership, Inc., requests an extension and such extension is necessary for completion of
the project; and
6. Authorize amendment of the canditiona! cc�mmifinent{s) or the contract(s) if necessary to achieve
project goals pro�id�c� that the amendment is within the scope of the proj�ct and in eornpiiance wiih
City policies and applicable iaws and regulations governing th�; use of federal grant funds.
DISCUSSEON:
On May 14, 2011, the Cify issued a R�quest for Pro�osals (R�P) for certified Community Housing
Development Organiza�ions {CHDO} to award and expenc! up ta $1,261,931A0 of HOME Investmen�
�'artnerships Program Grant funds. On November 18, 2011, the Tarrani County Housing Parknership,
Inc., (TCHP) submitted a response requesting $617,884.00 of the available HOME funds to acquire 17
sites on which it proposed to construct s�ngle family houses. �"he request also included funds for
CHDO operating expenses.
Sfaff reviewed all RFP submissions and recommended the award ta TCHP of $'f,115,000.00 in HOME
funds to the Community Development Council (CDC) at its meeiing held an May 25, 201'(. The CDC
agreed with Staff s funding recammendatian for the Project. Up ia $100,000.00 0# the awarded funds
will be used for operating expenses and $1,008,943.10 for construction of 10 �ouses and other
de�elopment exper��es including th� developer fee, which is based on #he cost of construc�ion.
TCHP plans ta develop up to 10 single farnily houses to I�e located in the Hillside-Morningside
neighborhood. There are three #loor plan options avaifable varying in square footage from
approximateiy 130a to 1600 square feet with thr�e bedrooms, two baths and a rear detached garage.
The houses will be sold ta an indi�idual or family that earns 80 percen# or less of Area Median income
as determined by the United States Department of Housing and Urban De��loprnent (HUD}. Buyers
mus# meet al! HOME Program requirements, including applying for ar�d receiving at least $1,000.00 in
down payment and/or closing cost assistance from the City's Hamebuyer Assistance Prograrn and
occupying the hause as iheir primary r�sid�nce for five years.
i. Construction must begin within six months of date of cantract ex�cution;
ii. TCHP's performance under the contract and use of the HOME funds will be secured by a recorded
Deed af Trust;
iii. Nouses musk k�e sold to a HOME eligible buyer; and
iv. TCHP will be allow�d a 10 percent developer's fee based on the cast to construct the houses.
ThP �x�enditure of HOM funds is conditioned_u�on #i�P falfowinc�:
i. Satisfaciory completian of the en�iron�-nenta! review per 24 CFR Part 58; and
ii. Authorizatian to use grant funds from HUD.
The Action Plan's funding years far federal funcls selected may �ary and be substituted based on the
principle of First In, First �ut (F1F0) in order to expend oldest grant funds first. The HOME funds may
be used #or any eligib[e costs related to the development.
Staff recommends the exper�diture up ta $1,115,Q0�.00 in HOME funds for the f'roject to benefit !ow
anci very law income citizens by �roviding affordable housing. A public comment period on the
expenditure of these HOME funds was hefd from June 28, 201 � to July 27, 2011, Any cornments are
maintained by the Nousing and Economic Development Department in accordance with federal
regulations.
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M&C - Council Agenda
This �roj�:ct is loca�ed in COUNCIL DISiRIC7 8.
FISCAL INFORMATtON 1 CERTI_Ejr�ILQ.L�I:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fur�d.
►� . :
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ili •� i �� • 1 1 1s 1�1 IIi •� 1
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a � �. • �-•.Y R.��-�
l.. .�. • �i: • •.� .
ATTACHMENT�
1. 17TCHP.MAP.�df (Public)
2. Addiiional Available �unds.�df (C�w Internai)
3. Available Funds.PD� (CFW Internal)
Fernando Costa (6122)
Jay Chapa {5804)
Cyr�thia Garcia (8187}
Fabiola Suarez {6811)
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