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HomeMy WebLinkAboutContract 1921 AGREEMENT ANOKA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM between THE COUNTY OF ANOKA, A POLITICAL SUBDIVISION OF THE STATE OF MINNESOTA, BY AND THROUGH THE ANOKA COUNTY HOUSING & REDEVELOPMENT AUTHORITY, A PUBLIC BODY CORPORATE AND POLITIC AND CITY OF COLUMBIA HEIGHTS This Agreement is entered into this 1st day of July, 2006, between the County of Anoka, a political subdivision of the State of Minnesota, by and through the Anoka County Housing and Redevelopment Authority, a public body corporate and politic (hereinafter referred to as the "HRA"), and City of Columbia Heights (hereinafter referred to as the "Agency"): RECITALS A. The County of Anoka (hereinafter "County") is an urban county applicant for block grant funds under the Housing and Community Development Act of 1974 (the Act), Pub. L. 93-383 as amended, and will receive block grant funds for the purpose of carrying out eligible community development and housing activities under the Act and under regulations promulgated by the Department of Housing and Urban Development (HUD) at 24 CFR p. 570; B. An Urban County Consortium has been established by a Joint Cooperation Agreement between the County and municipal corporations within the County, the terms of which specify allocation of block grant funds to those participating jurisdictions for use in accordance with the County Housing Assistance and Community Development Plans accepted by participating jurisdictions and reviewed by HUD; C. The County has entered into a joint powers agreement with the HRA to administer the Community Development Block Grant Program and delegated to the HRA the rights, duties and obligations to disperse, monitor and administer funds under the Community Development Block Grant program, in a manner consistent with terms and conditions imposed on the County by agreement, County resolution, HUD regulations, and the Community Development Block Grant Plan; D. The HRA desires to have certain services performed by the Agency as described within this agreement, and as authorized by County resolutions for the purpose of implementing eligible activities under the Act and HUD regulations; E. It is appropriate and mutually desirable that the Agency be designated by the HRA to undertake the aforementioned eligible activities, so long as the requirements of the Act, HUD Regulations, state law and local law are adhered to, as provided for herein; F. The purpose of this Agreement is to provide for cooperation between the HRA and the Agency, as the parties in this agreement, in implementing such eligible activities in the manner described above; G. The parties are authorized and empowered to enter into this Agreement by the Laws of the State of Minnesota. -1- H. The attached exhibits as listed below are hereby incorporated in this agreement and made a part hereof: PART I. PART II. PART III. Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G GENERAL CONDITIONS FEDERAL AND LOCAL PROGRAM REQUIREMENTS EVALUATION AND RECORD KEEPING HUD Project Activity Sheet Objectives of CDBG Funds Anoka County Board Resolution No. 85-23 Anoka County Board Resolution No. 85-42 Anoka County Board Resolution No. 86-70 Certification Equal Employment Opportunity Certification I. In consideration of payments, covenants, and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties mutually covenant and agree as provided for in this agreement. COUNTY: By: AGENCY: B. Steve No ak, Division Manager Governmental Services (print) Date: Name: ?- ZZ-trt. Mayor Title: Date: APPROVED AS TO FORM: By: A Vl,fu By: 0. B t~w.bo (signature) Name: t~alter R. Fehst (print) Title: Ci ty Manager Date: ;;U --.f ~ Ob Date: Hereinafter, references to the "County" shall be deemed to be references to the Anoka County Housing and Redevelopment Authority. - 2- PART I. GENERAL CONDITIONS 1. SCOPE OF AGREEMENT The Agreement between the parties shall consist of the signature page, the general conditions; the federal, state and local program requirements; the evaluation and record keeping requirements, each and every project exhibit incorporated into the Agreement; all matters and laws incorporated by reference herein; and any written amendments made according to the general conditions. This Agreement supersedes any and all former agreements applicable to projects attached as exhibits to this Agreement. 2. SCOPE OF SERVICES The Agency shall perform and carry out in a satisfactory and proper manner the services set forth in the Exhibit(s) attached hereto. In the case of multiple projects, each project shall correspond to a separate exhibit. This Agreement may be amended from time to time, in accordance with the general conditions, for the purpose of adding new projects, amending the scope of work, or for any other lawful purpose. 3. COMMENCEMENT AND TERMINATION OF PROJECTS Upon release of project-related funds by HUD pursuant to federal regulations, the County shall furnish the Agency with written notice to proceed. No work on the proiect shall occur prior to the notice to proceed without written approval from the County. Termination dates for individual projects shall be specified in the appropriate exhibits and be in compliance with County Board Resolution #85-23, attached as Exhibit C. Costs incurred after the termination date will not be reimbursed. The termination date may be changed through amendment of this Agreement. 4. ADMINISTRATION A. The Aqency shall appoint a liaison person who shall be responsible for overall administration of block qrant funded proiect(s) and coordination with the County Housinq and Community Development Proqram. The Aqency shall also desiqnate one or more representatives who shall be authorized to siqn the Disbursement Request Form. The names of the liaison persons and representatives shall be specified in the Exhibit A. B. For all agencies that are presently parties to Joint Cooperation Agreements with the County covering planning, distribution of funds, and program execution under the Act, the Agency remains subject to the provisions of such agreement. 5. COMPENSATION AND METHOD OF PAYMENT A. The County shall reimburse the Agency for the services specified in the Exhibits in an amount specified on Exhibit A. Reimbursement shall be based on a Community Development Disbursement Request Form submitted with supporting documents and signed by the Agency's authorized representative. B. The Agency shall submit a properly executed Disbursement Request Form no later than fifteen (15) working days after the close of each billing period. The County will make payment to the Agency not more than twenty-one (21) working days after said invoice is received and approved by Anoka County. The County will issue a statement of correction voucher in the event that the voucher request is erroneous. Payment does not constitute absolute approval. 6. OPERATING BUDGET The Agency shall apply the funds received from the County under this Agreement in accordance with the requirements of the Exhibit(s) attached hereto. - 3 - 7. FUNDING ALTERNATIVES AND FUTURE SUPPORT A. The Agency shall report all program income generated under this Agreement for the purposes specified herein or generated through the project(s) funded under this Agreement. All program income shall be forwarded to Anoka County, except as provided in Exhibit D. The County will maintain a record of program income received by individual projects for future use by the sub grantee for eligible CDBG activities. B. The County makes no commitment to future support and assumes no obligation for future support of the activities contracted for herein, except as expressly set forth in this Agreement. C. Should anticipated sources of revenue not become available to the County for use in the Community Development Block Program, the County shall immediately notify the Agency in writing and the County will be released from all contracted liability for that portion of the Agreement covered by funds not received by the County. 8. AMENDMENTS Either party may request modifications in the scope of services, terms, or conditions of this Agreement. Proposed modifications that are mutually agreed upon shall be incorporated by written amendment to this Agreement. A written amendment may affect a project or projects authorized by this Agreement or may be of general application. 9. ASSIGNMENT AND SUBCONTRACTING A. The Agency shall not assign any portion of this Agreement without the written consent of the County, and it is further agreed that said consent must be sought by the Agency not less than fifteen (15) days prior to the date of any proposed assignment. B. Any work or services assigned or subcontracted hereunder shall be subject to each provision of this Agreement and proper bidding procedures contained therein. The Agency agrees that it is as fully responsible to the County for the acts and omissions of its subcontractors and of their employees and agents, as it is for the acts and omissions of its own employees and agents. 10. HOLD HARMLESS AND INDEMNIFICATION A. The Agency further agrees that it is financially responsible (liable) for any audit exception that occurs due to its negligence or failure to comply with the terms of the Agreement. B. The Agency agrees to protect and save the County, its elected and appointed officials, agents, and employees while acting within the scope of their duties as such, and agrees to hold them harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of the Agency's employees or third parties on account of personal injuries, death or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the Agency and/or its agents, employees, subcontractors or representatives under this Agreement. 11. INSURANCE For all agencies that are not municipal corporations organized under the laws of the State of Minnesota, the following insurance requirements shall apply: A. Public Liability Insurance The Agency shall obtain and maintain continuously public liability insurance necessary to protect the public on the subject premises naming the County of Anoka and the Anoka County Housing and Redevelopment Authority as additional insured to the extent of One Million and no/100 Dollars ($1,000,000.00) General Liability Insurance including bodily injury and property damage with umbrella excess liability of One Million and no/100 Dollars ($1,000,000.00) and provide proof of Worker's Compensation Insurance pursuant to the Statutes of the State of Minnesota. - 4- B. Buildinq Risk Insurance The Agency shall cause to be maintained, during the period that contract work is in progress, All Risk Builder's Insurance, (including fire, vandalism, malicious mischief and extended coverage) in an amount not less than the value of destructible contract work in place. C. Proof of Insurance The Agency shall provide certificates of insurance required under this section, or, upon request of the County, duplicates of the policies as evidence of the insurance protection afforded. Such insurance policies shall not be reduced or canceled without thirty (30) days prior written notice to the County. 12. CONFLICT OF INTEREST A. Interest of Officers, Employees, or Aqents - No employee, agent, consultant, officer, or elected or appointed official of the Agency who exercises any functions or responsibilities with respect to Block Grant Program activities assisted under this Program or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. B. Interest of Subcontractor and Their Employees - The Agency agrees that it will incorporate into every subcontract required to be in writing and made pursuant to this Agreement the following provisions: The Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the Block Grant Program has any personal financial interest, direct or indirect, in this Contract. The Contractor further covenants that he presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of his services hereunder. The Contractor further covenants that in the performance of this Contract no person having any conflicting interest shall be employed. Any interest on the part of the Contractor or his employees must be disclosed to the Agency and the County. 13. DATA PRIVACY All data collected, created, received, maintained, or disseminated, or used for any purposes in the course of the Provider's performance of this Agreement is govemed by the Minnesota Government Data Practices Act, Minnesota Statutes 2003, Section 13.01 et seq. or any other applicable State statutes and any State rules adopted to implement the Act, as well as State statutes and Federal regulations on data privacy. The Provider agrees to abide by these statutes, rules, and regulations and as they may be amended. 14. TERMINATION A. This Agreement is subject to termination upon thirty (30) days written notice by the County should: (1) The Agency mismanage or make improper or unlawful use of Agreement funds; (2) The Agency fail to comply with the terms and conditions expressed herein or the applicable regulations and directives of the Federal Government, State, or County; (3) The Agency fail to provide work or services expressed by this Agreement; or (4) The Agency fail to submit reports or submit incomplete or inaccurate reports in any material respect. B. This Agreement may be terminated by the County immediately upon the receipt by the County of notice of the loss of federal funding for the Community Development Block Grant Program or any project of the Agency. - 5- C. This Agreement is subject to termination upon thirty (30) days written notice by the Agency should: (1) The County fail in its commitment under this Agreement to provide funding for services rendered, as herein provided; or (2) Block Grant funds become no longer available from the Federal Government or through the County. D. Otherwise this Agreement shall terminate on the latest termination date specified on the Exhibit(s) attached hereto and shall be subject to extension only by mutual agreement and amendment in accordance with the General Conditions of this Agreement except the County may terminate the agreement if funds are not expended as required by Exhibit C. E. Upon termination of this Agreement any unexpended balance of Agreement funds shall remain in the County Block Grant fund. F. In the event that termination occurs under paragraph A (1) of this section, the Agency shall return to the County all funds which were expended in violation of the terms of this Agreement. 15. REVERSION OF ASSETS Upon the expiration or termination of this agreement. the Agency shall transfer to the County any CDBG funds on hand or in the accounts receivable attributable to the use of CDBG funds. In addition. at the expiration or termination of this agreement, any real property under the Agency's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 shall be disposed of in a manner which results in the agency being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to the expenditures of non-CDBG funds for acquisition of, or improvement to, the real property. Such reimbursement shall not be required if the conditions of 24 CFR 570.503(b)(7)(i) are met and satisfied. 16. DISPOSITION OF PROGRAM INCOME Upon the expiration or termination of this agreement, any unexpended program income or program income that has not been spent on the project, shall be returned by the Agency to the County. PART II. FEDERAL AND LOCAL PROGRAM REQUIREMENTS 1. GENERAL REQUIREMENTS The Agency shall comply with the Housing and Community Development Act of 1974, Public Law 93-383 as amended, and Implementing Regulations at 24 CFR p. 570. 2. PROCUREMENT STANDARDS In awarding contracts pursuant to this Agreement, the Agency shall comply with all applicable requirements of local and state law for awarding contracts, including but not limited to procedures for competitive bidding, contractor's bonds, and retained percentages. In addition, the Agency shall comply with the requirements of the U.S. Office of Management and Budget Circular A-102 or A-110 as appropriate, relating to bonding, insurance and procurement standards; and with Executive Order 11246 regarding nondiscrimination bid conditions for projects over Ten Thousand and no/100 Dollars ($10,000.00). Where federal standards differ from local or state standards, the stricter standards shall apply. The federal standard ofTen Thousand and no/100 Dollars ($10,000.00) for competitive bidding shall apply only if the applicable state or local standard for competitive bidding is less strict than Ten Thousand and no/100 Dollars ($10,000.00). 3. ENVIRONMENTAL REVIEW A. National Environmental Policy Act - The County retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act as implemented by HUD - 6 - Environmental Review Procedures (24 CFR pt. 58). The County may require the Agency to furnish data, information and assistance for the County's review and assessment in determining whether an Environmental Impact Statement must be prepared. B. State Environmental Policy Act - Agencies that are branches of government under Minnesota Law, retain responsibility for fulfilling the requirements of the State Law regarding environmental policy and conseNation, and regulations and ordinances adopted thereunder. If the agency is not a branch of government under Minnesota Law, the County may require the agency to furnish data, information and assistance as necessary to enable the County to comply with the State Environmental Policy Act. C. Satisfaction of Environmental Requirements - Project execution under this Agreement by either the County or the Agency shall not proceed until satisfaction of all applicable requirements of the National and State Environmental Policy Acts. A written notice to proceed will not be issued by the County until all such requirements have been met. 4. NON.DISCRIMINA TION A. General The Agency shall comply with all federal, state and local laws prohibiting discrimination on the basis of age, sex, sexual orientation, marital status, race, creed, color, national origin or the presence of any sensory, mental or physical handicap or any other basis now or hereafter prohibited by Law. These requirements are specified in Section 109 of the Housing and Community Development Act of 1974; Civil Rights Act of 1964, Title VI; Civil Rights Act of 1964, Title VII; Executive Order 11063; Executive Order 11246; and Section 3 of the Housing and Urban Development Act of 1968. Specifically, the Agency is prohibited from taking any discriminatory actions defined in the HUD Regulations at 24 CFR 570.602 Section 109 and shall take such affirmative and corrective actions as are required by the Regulations at CFR 570.602. These requirements are summarized in the following paragraphs: B. Proqram Benefit The Agency shall not discriminate against any resident of the project service area by denying benefit from or participation in any block grant funded activity on the basis of race, color, sex, sexual orientation, or national origin. (Civil Rights Act of 1964, Title VI; Civil Rights Act of 1964, Title VII; Section 109, Housing and Community Development Act of 1974). C. Fair Housinq The Agency shall take necessary and appropriate actions to prevent discrimination in federally assisted housing and lending practices related to loans insured or guaranteed by the federal government. (Civil Rights Act of 1964, Title VII; Executive Order 11063) D. Employment (1) In all solicitations under this Agreement, the Agency shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer" in advertisements shall constitute compliance with this section. (2) The Agency shall not discriminate against an employee or applicant for employment in connection with this Agreement because of age, marital status, sexual orientation, race, creed, color, national origin, or the presence of any sensory, mental or physical handicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training. (Executive Order 11246 as amended) (3) To the greatest extent feasible, the Agency shall provide training and employment opportunities for lower income residents within the area served by block grant assisted projects (Section 3, Housing and Community Development Act of 1968, as amended). - 7 - E. Contractors and Suppliers (1) No contractor, subcontractor, union or vendor engaged in any activity under this Agreement shall discriminate in the sale of materials, equipment or labor on the basis of age, sex, sexual orientation, marital status, race, creed, color, national origin, or the presence of any sensory, mental, or physical handicap. Such practices include upgrading, demotion, recruiting, transfer, layoff, termination, pay rate, and advertisement for employment. (Executive Order 11246 as amended.) (2) All firms and organizations described above shall be required to submit to the Agency certificates of compliance demonstrating that they have, in fact, complied with the foregoing provisions; provided, that certificates of compliance shall not be required from firms and organizations on contracts and/or yearly sales of less than $10,000. (3) To the greatest extent feasible, the Agency shall purchase supplies and services for activities under this agreement from vendors and contractors whose businesses are located in the area served by block grant funded activities or owned in substantial part by project area residents. (Section 3, Housing and Community Development Act of 1968, as amended.) F. Notice (1) The Aqency shall include the provisions of the appropriate precedinq subsections A. B, C, 0, and E of this section in every contract or purchase order for qoods and services under this Aqreement and shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice advising the said labor union or worker's representative of the commitments made in these subsections. (2) In advertising for employees, goods or services for activities under this Agreement, the agency shall utilize minority publications in addition to publications of general circulation. 5. LABOR STANDARDS The Agency shall require that project construction contractors and subcontractors pay their laborers and mechanics at wage rates in accordance with the Davis-Bacon Act, as amended (40 USC sections 327-333); provided that this section shall not apply to rehabilitation of residential property designed for residential use by fewer than eight families. A copy of the current Davis-Bacon wage rate and HUD form 4010 and 92010 must be included in all construction bid specs and contracts over Two Thousand and no/100 Dollars ($2,000.00). 6. PROPERTY MANAGEMENT A. The Agency agrees that any nonexpendable personal property, purchased wholly or in part with agreement funds at a cost of Five Hundred and no/100 Dollars ($500.00) or more per item, is upon its purchase or receipt the property of the County and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of the U.S. Office of Management and Budget Circular No. A-102 or A-11 0 as appropriate. B. The Agency shall be responsible for all such property, including its care and maintenance. C. The Agency shall admit the County's property management officer to the Agency's premises for the purpose of marking such property, as appropriate, with county property tags. D. The Agency shall meet the following procedural requirements for all such property: (1) Property records shall be maintained accurately and provide for: a description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of - 8 - the property; percentage of block grant funds used in the purchase of property; and location, use, and condition of the property. (2) A physical inventory of property shall be taken and the results reconciled with the property records at least once every two (2) years to verify the existence, current utilization, and continued need for the property. (3) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. (4) Adequate maintenance procedures shall be implemented to keep the property in good condition. 7. ACQUISITION AND RELOCATION A. Any acquisition of real property for any activity assisted under this Agreement shall comply with Title III of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (hereinafter referred to as the Uniform Act) (42 USC section 4601) and the Regulations at 24 CFR pt. 42. B. Any displacement of persons, business, nonprofit organizations or farms as the result of acquisition of real property assisted under this Agreement shall comply with Title II of the Uniform Act as amended by the Uniform Relocation Act as amended Title IV of the Surface Transportation and Uniform Relocation Assistance Act as amended (Pub. L 100-17,101 Stat. 246-256) and the Regulations at49 CFR pt. 24. The Agency shall comply with the Regulations pertaining to costs of relocation and written policies, as specified by 24 CFR section 570.606 (a) & (b). C. In any activity assisted under this agreement which results in demolition or conversion to another use of low/moderate income housing, the agency will follow the requirements set forth in the revised section 104(d) of the Housing and Community Development Act of 1974, as amended, and implementing regulations. 8. HISTORIC PRESERVATION The Agency shall meet the historic preservation requirements of Public Law 89-665 and the Archeological and Historic Preservation Act of 1974 (Pub. L. 93-291) and Executive Order 11593, including the procedures prescribed by the Advisory Council on Historic Preservation in the Regulations at 36 CFR pt. 800. Activities affecting property listed in or found to be eligible for inclusion in the National Register of Historic Places will be subject to requirements set forth in HUD Environmental Review Procedures at 24 CFR pt. 58. 9. ARCHITECTURAL BARRIERS Any facility constructed pursuant to this Agreement shall comply with design requirements of the Architectural Barriers Act of 1968 (42 USC section 4151 et. seq. & 24 CFR 40, et. seq.). 10. NONPARTICIPATION IN POLITICAL ACTIVITIES The Agency shall comply with the provisions of the Hatch Act (5 USC Chapter 15). 11. CONDITIONS FOR RELIGIOUS ORGANIZATIONS The Agency agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 570.2000). 12. NATIONAL FLOOD INSURANCE The Agency may not receive Community Development Block Grant funding for acquisition or construction for use in any area that has been identified as having special flood hazards and is not participating in the National Flood Insurance Program, as provided by Section 3(a) of the Flood Disaster Protection Act of 1973 - 9- (Pub. L. 93- 234) and the Regulations thereunder (24 CFR Ch. 58.6, sub chap. B). The Agency shall comply with the Regulations at 24 CFR section 570.605. 13. AIR AND WATER POLLUTION The Agency shall comply with the provisions of the Clean Air Act, as amended (42 USC section 1857 ill ~ and the Federal Water Pollution Control Act, as amended (33 USC sections 1251 ill seq.) and the regulations issued thereunder (40 CFR pt. 15). 14. LEAD-BASED PAINT POISONING The Agency shall comply with the HUD Lead-Based Paint Regulations (24 CFR pt. 35) issued pursuant to the Lead-Based Paint Poisoning Prevention Act (42 USC sections 4831 ill seq.) requiring (1) prohibition of the use of lead-based paint (whenever funds under this Agreement are used directly or indirectly for construction, rehabilitation, or modernization of residential structures); (2) elimination of immediate lead-based paint hazards in residential structures; and (3) notification of the hazards of lead-based paint poisoning to purchasers and tenants of residential structures constructed prior to 1978. All work performed on lead-containing surfaces must conform to lead-safe practices and be completed by workers who are either supervised by an EPA-certified abatement supervisor or be performed by workers trained in lead-safe work practices. If abatement options are specified in the work write-up, the contractor must hire an EPA-certified and state-licensed abatement contractor and submit proof of their current state license and insurances. 15. ENERGY STANDARDS To further affordable housing goals, Anoka County requires the use of Energy Star products for HUD assisted new construction and rehabilitation projects. Energy Star products include washers, dryers, refrigerators, windows, heating and cooling equipment as well as light fixtures and bulbs. This standard applies to commercial and industrial and both single-family and multi-family housing units. 16. NON-DISCRIMINATION BASED ON DISABILITY When and where applicable, the agency shall comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794) and Title II of the Americans with Disabilities Act as amended, Public Law 101- 336 (1990), to ensure that no otherwise qualified individual with a disability in the United States shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving financial assistance under this agreement. 17. NON-SUBSTITUTION FOR LOCAL FUNDING The Block Grant Funding made available under this Agreement shall not be utilized by the Agency to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of funds under this Agreement. 18. PUBLIC OWNERSHIP For Agencies which are not municipal corporations organized under the laws of the State of Minnesota, it may become necessary to grant the County a property interest where the subject project calls for the acquisition, construction, reconstruction, rehabilitation, or installation of publicly-owned facilities and improvements. The Agency shall comply with current County policy regarding transfer of a property interest sufficient to meet the public ownership requirement. 19. PUBLIC INFORMATION A. In all news releases and other public notices related to projects funded under this Agreement, the Agency shall include information identifying the source of funds as the Anoka County Community Development Block Grant Program. - 10- B. For all construction projects the Agency shall erect a sign to County specifications at the construction site, identifying the source of funds, except that this requirement may be waived for construction projects of Ten Thousand and no/100 ($10,000.00) Dollars or less. 20. APPLICABLE UNIFORM ADMINISTRATIVE REQUIREMENTS A. An Agency (recipients and subrecipients) that is a govemmental entity (including public agencies) shall comply with the requirements and standards of OMB Circular No. A-87, "Cost Principles for State, Local and Indian Tribal Governments"; OMB Circular A-128, "Audits of State and Local Governments (implemented at 24 CFR part 44); and with the following sections of 24 CFR Part 85 "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" or the related CDBG provision, as specified in this paragraph: (1) Section 85.3, "Definitions"; (2) Section 85.6, "Additions and Exceptions"; (3) Section 85.12, "Special grant or subgrant conditions for 'high-risk' grantees"; (4) Section 85.20, "Standards for financial management systems," except paragraph (a); (5) Section 85.21, "Payment," except as modified by 9570.513; (6) Section 85.22, "Allowable costs"; (7) Section 85.26, "Non-federal audits"; (8) Section 85.32, "Equipment," except in all cases in which the equipment is sold, the proceeds shall be program income; (9) Section 85.33, "Supplies"; (10) Section 85.34, "Copyrights"; (11) Section 85.35, "Subawards to debarred and suspended parties"; (12) Section 85.36, "Procurement," except paragraph (a); (13) Section 85.37, "Subgrants"; (14) Section 85.40, "Monitoring and reporting program performance," except paragraphs (b) through (d) and paragraph m; (15) Section 85.41, "Financial reporting," except paragraphs (a), (b), and (e); (16) Section 85.42, "Retention and access requirements for records," except that the period shall be four years; (17) Section 85.43, "Enforcement"; (18) Section 85.44, "Termination for convenience"; (19) Section 85.51, "Later disallowances and adjustments" and (20) Section 85.52, "Collection of amounts due." B. An Agency (subrecipient), except agencies that are governmental entities, shall comply with the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non-profit Organizations" or OMB Circular No. A-21, "Cost Principles for Educational Institutions," as applicable, and OMB Circular A-133, "Audits of Institutions of Higher Education and Other Non-profit Institutions (as set forth in 24 CFR part 45). Audits shall be conducted annually. Such subrecipients shall also comply with the following provisions of Uniform Administrative requirements of OMB Circular No. A-11 0 (implemented at 24 CFR part 84, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-profit Organizations") or the related CDBG provision as specified in this paragraph: (1) Subpart A -"General"; (2) Subpart B - "Pre-Award Requirements," except for 984.12, "Forms for Applying for Federal Assistance"; (3) Subpart C - "Post-Award Requirements," except for: (i) Section 84.22, "Payment Requirements." Grantees shall follow the standards of 99 85.20 (b) (7) and 85.21 in making payments to subrecipients; (ii) Section 84.23, "Cost Sharing and Matching"; (iii) Section 84.24, "Program Income." In lieu of 9 84.24, CDBG subrecipients shall follow 9 570.504; (iv) Section 84.25, "Revision of Budget and Program Plans"; - 11 - (v) Section 84.32, "Real Property." In lieu of S 84.32, CDBG subrecipients shall follow S 570.505; (vi) Section 84.34(g), "Equipment." In lieu of the disposition provisions of S 84.34(g), the following applies: (A) In all cases in which equipment is sold, the proceeds shall be program income (prorated to reflect the extent to which CDBG funds were used to acquire the equipment); and (B) Equipment not needed by the subrecipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient; (vii) Section 84.51 (b), (c), (d), (e), (D, (g), and (h), "Monitoring and Reporting Program Performance"; (viii) Section 84.52, "Financial Reporting"; (ix) Section 84.53(b), "Retention and access requirements for records." Section 84.53(b) applies with the following exceptions: (A) See the retention period referenced in S 84.53(b) pertaining to individual CDBG activities; and (B) The retention period starts from the date of submission of the annual performance and evaluation report, as prescribed in 24 CFR 91.520, in which the specific activity is reported on for the final time rather than from the date of submission of the final expenditure report for the award; (x) Section 84.61, "Termination." In lieu of the provisions of 984.61, CDBG subrecipients shall comply with 9 570.503(b)(7); and (4) Subpart D - "After-the-Award Requirements," except for 984.71, "Close-out Procedures." PART III. EVALUATION AND RECORD KEEPING 1. EVALUATION The Agency agrees to participate with the County in any evaluation project or performance report, as designed by the County or the appropriate Federal agency, and to make available all information required by any such evaluation process. 2. AUDITS AND INSPECTIONS The Agency shall obtain an independent audit for any calendar year during which the agency expended at least $500,000 of Federal funds. Qualified individuals who are sufficiently independent of those who authorize the expenditure of Federal funds shall make such audit. The audit report shall state that the audit was performed in accordance with the generally accepted governmental audit standards for financial and compliance audits of the U. S. General Accounting Office Standards for Audit of Governmental Orqanizations. Proqrams, Activities, and Functions, and the provisions of OMB A-11 O. When applicable, the Agency shall also comply with the audit requirements of revised OMB Circular A-133 dated June 24, 1997. The records and documents with respect to all matters covered by this contract shall be subject at all times to inspection, review or audit by the County, Federal or State officials so authorized by law during the performance of this contract and during the period of retention specified in this Part III. 3. RECORDS As required by HUD Regulations, 24 CFR pt. 570, the Agency shall compile and maintain the following records: A. Financial Manaqement - such records shall identify adequately the source and application of funds for activities within this Agreement, in accordance with the provisions of the U.S. Office of Management and Budget Circular A-102 or A-110 as appropriate. These records shall contain information pertaining to grant awards and authorizations, obligations, un-obligated balances, assets, liabilities, outlays, and income. -12- B. Citizen Participation - Narrative and other documentation describing the process used to inform citizens concerning the amount of funds available, the ranges of project activities undertaken, and opportunities to participate in funded block grant projects. C. Relocation -Indication of the overall status of the relocation workload and a separate relocation record for each person, business, organization, and farm operation displaced or in the relocation workload. D. Property Acquisition - Agency files must contain (a) invitation to owner to accompany appraiser during inspection, (b) at least one property appraisal, (c) statement of basis for determination of just compensation, (d) written offer of just compensation, (e) all documents involving conveyance, (0 settlement cost reporting statement, and (g) notice to surrender possession of premises. E. Equal Opportunity - The Agency shall maintain racial, ethnic, and gender data showing the extent to which these categories of persons have participated in, or benefited from, the activities carried out under this Agreement. The Agency shall also maintain data which records its affirmative action in equal opportunity employment, and its good-faith efforts to identify, train, and/or hire lower-income residents of the project area and to utilize business concerns which are located in or owned in substantial part by persons residing in the area of the project. F. Labor Standards - Records shall be maintained regarding compliance of all contractors performing construction work under this Agreement with the labor standards made applicable by 24 CFR 570.603. G. Determinations of Condition of Slum and Bliqht - The agency will submit: (1) An attorney's opinion that an area designated as slum or blighted for the purpose of qualifying a CDBG activity meets the State or local definition of same; (2) The boundary of the area so designated; (3) A list of the conditions the CDBG-funded activity is intended to address. In the event that a single property is designated as blighted, the community must submit a certified building inspector's report on the conditions leading to that determination. H. Economic Development - The agency will maintain copies of financial statements that indicate the historical and projected income of a company approved for CDBG assistance. Those records will include three years of profit and loss statements, balance statements and projected income statements. The agency will also keep records indicating the amount and terms of assistance provided together with an explanation of how the assistance provided meets the "necessary and appropriate" requirements communicated in the June 2, 1987 Stokvis memorandum. I. Such other records as may be required by the County and/or HUD. 4. RETENTION OF RECORDS Records documenting this 2006-funded project shall be retained by the Agency through June 30, 2012, except as follows: (1) Records that are the subject of audit findings shall be retained for five (5) years after such findings have been resolved. (2) Records for nonexpendable property shall be retained for five (5) years after its final disposition. Nonexpendable property is defined in the U.S. Office of Management and Budget Circular No. A-102 or A-11 0 as appropriate. 5. REPORTS The Agency shall submit such reports as required by the County on a monthly and annual basis and also prior to project execution. - 13 - EXHIBIT A 2006 Community Development Block Grant Project Anoka County Jurisdiction's Name: Anoka County Priority Need: High Sub recipient Name and Project Title: City of Columbia Heights - Demolition of Mady's Bowl and Retail Center Project Description: Redevelopment of the property to preserve and enhance the existing viable commercial areas, enhance the image and viability of the Central Avenue corridor, and create a friendlier and safer downtown environment for both residents and visitors. Location/Target Area: 3919 Central Avenue NE, Columbia Heights, MN 55421 Federal regulations triggered by this project: Fair Housing, Environmental, Flood, Relocation, Equal Employment, Debarred Contractors, Conflict of Interest Performance Measurements specific to this project: Objective category: 0 Suitable Living Environment 0 Decent Housing l8J Economic Opportunity Outcome category: 0 Availability/Accessibility 0 Affordability l8J Sustainability Anoka County Project ID Objective Number 624 4 HUD Matrix Code CDBG Citation 04-Clear and Demo 570.201(d) CDBG National Objective Type of Recipient Slum Blight Spot Subrecipient Project Start Date Completion Date 07/01/2006 12/31/2007 Performance Indicator Annual Units Business 2 Units Upon Completion HUD Project ID / CPS Total CDBG Awarded: $200,000 Budget indicates funds will be used for/as: Proj ect Costs This project will meet a presumed benefit of: Liaison per Section 4A: Robert Streetar Authorized to sign vouchers and reports per Section 4A: Robert Streetar By signing below, an authorized representative of the Subrecipient acknowledges that this Exhibit A document has be read and the project description and terms understood. 7/7'O~, Date Exhibit B Urban Anoka County CDBG 2005 Statement of Community Development Objectives of Funds Pursuant to Community Development Block Grant regulation, Anoka County has made available to the public the following statement of final use of 2005 - 2009 Anoka County CDBG funds. Citizens, non-project groups, and other interested persons are invited to comment upon this statement and upon Anoka County's performance of the CDBG program by contacting Anoka County Community Development, Government Center, th Floor, 2100 Third Avenue, Anoka, Minnesota 55303, telephone number 763-323-5709, Attention: Karen Skepper. SPECIFIC OBJECTIVES FOR 2005 - 2009 ANOKA COUNTY CDBG PROGRAM The following objectives have been established for assisting communities and citizen groups in the formulation of specific program activities: 1. Provide Decent Housing . Assist homeless persons obtain affordable housing . Assist persons at risk of becoming homeless . Retention of affordable housing stock . Make available permanent housing that is affordable to low-income residents without discrimination . Increase the supply of supportive housing for persons with special needs . Provide affordable housing that is accessible to job opportunities 2. Provide a Suitable Living Environment . Improve the safety and livability of neighborhoods . Increase access to quality facilities and services . Reduce the isolation of income groups within an area through decentralization of housing opportunities and revitalization of deteriorating neighborhoods . Restore and preserve properties of special historic, architectural, or aesthetic value . Conservation of energy resources 3. Expand Economic Opportunities . Job creation and retention . Establish, stabilize and expand small businesses . Provision of public services concerned with employment . Provision of jobs to low-income persons living in areas affected by those programs, or resulting from activities under programs covered by the plan . Available mortgage financing for low-income persons at reasonable rates . Access to capital and credit for development activities that promote long-term economic and social viability of the community . Empower low-income persons to reduce generational poverty in federally assisted housing and public housing The above objectives were developed in cooperation with the communities in Anoka County and are based on need as illustrated by statistics drawn from 2000 Census data. Overall, they are a continuation of past CDBG programs, and many communities sustaining efforts begun in those years. Exhibit C BOARD OF COUNTY COMMISSIONERS Anoka County, Minnesota DATE OFFERED BY COMMISSIONER Langfeld February 21, 1985 RESOLUTION NO. 85-23 TIMELY EXPENDITURE OF C.D.B.G. FUNDS WHEREAS, Anoka County is on Entitlement County and therefore receives annual Community Development B lock Grant (CDBG) allocations from the U.S. Department of Housing and Urban Development; and, WHEREAS, the Anoka County Board of Commissioners mokes these CDBG funds available to municipalities in Anoka County for eligible projects; and, WHEREAS, Anoka County, as the grantee, is responsible for the timely expenditure of CDBG funds; and, WHEREAS, Anoka County's performance is measured in port by such timely performance; and, WHEREAS, Anoka County may be subject to HUD fiscal sanctions for failure to expend CDBG funds within a reasonable period of time: NOW, THEREFORE, BE IT RESOLVED that the .Anoka County Board of Commissioners adopts the following Policy Regarding Schedule for Expenditure of Community Development Block Grant Funds by Anoka County Subgrantees: POLICY REGARDING SCHEDULE FOR EXPENDITURE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS BY ANOKA COUNTY SUB GRANTEES Community Development Block Grant Funds will be reserved for eligible budgeted subgrantee activities for up to 18 months after notice of availability of such funds for expenditure. If a community fails to expend CDBG project funds within that time limit, the Anoka County Board of Commissioners will withdraw the allocation for that project. In order that communities may hove adequate notice of the impending withdrawal, County CDBG staff will notify those communities which have not committed CDBG project funds within 12 months after the start of the applicable CDBG program year of that condition. Such notice will enable those communities to re-evaluate projects and to program the funds if necessary. Those communities which ore in violation of the 18 month rule at the time of adoption of this policy will be given six months from the dote of the County Boord Resolution referencing this policy, to expend their CDBG project funds. A' the end of the six month period, !he funds will be subject to withdrawal. The Anoka County Board may on an individual case basis, elect to waive the 18 month rule if the Boord should determine that the project delay is caused by forces outside the control of the community and that project completion is feasible within a reasonable amount of time. Funds which revert to Anoka County shall be reallocated at the discretion of the County Board to either other projects submitted by communities or to County-wide activities. Any community based groups or other subgrantees of communities must be notified of this policy when they are considered for CDBG funding. RESOLUTION 1185-23 (Continued) YES NO District III - Haas District 112 - Burman District In - Langfeld District 114 - Kordiak District 115 - Cenaiko District 116 - McCarron District In - Erhart x X X X X X X Haas Burman Langfeld Kordiak Cenaiko McCarron Erhart State of Minnesota ) SS County of Anoka ) I, John "Joy" Mclinden, County Administrator, Anoka County, Minnesota, hereby certify that I have compared the foregoing copy of the resolution of the County Board of said County with the original record thereof on file in the Administratian Office, Anoka County, Minnesoto, as stated in the minutes of the proceedings of said Board at a meeting duty held on February 21, 1985, and that the same is a true and corree t copy of said original record and of the whole thereof, and that said resolution was duly passed by said Board at said meeting. Witness my hand and seal this 21st day of February, 1985. Exhibit D BOARD OF COUNTY COMMISSIONERS Anoka County, Minnesota DATE April 23, 1985 RESOLUTION NO. 85-42 OFFERED BY COMMISSIONER Langfeld COUNTY BOARD POLICY - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME AMENDING RESOLUTIONS 81-107 AND 82-53 WHEREAS, Title I of the Housing and Community Development Act of 1974 as amended provides for a program of Community Development Block Grants; and, WHEREAS, the Anoka County Board of Commissioners has been designoted as an "Urban County" by the Federal Housing and Urban Development Department and consequently is eligible to participate in the National Community Development Block Grant Program; and, WHEREAS, the Anoka County Board of Commissioners has directed the preparation of a plan under the Community Development Block Grant Program in concert with the municipalities of Anoka County; and, WHEREAS, as a portion of said plan, municipalities as the sub-grantee of Community Development Block Grant funds may utilize said funds in various program forms to benefit low and moderate income persons, to aid in the prevention or elimination of slums or blight or to meet other community development needs having a particular urgency because of threat to health and safety; and, \ WHEREAS, "program income" means gross income earned by the sub-grantee from the grant supported activity such as: proceeds from the sale of real or personal property, interest earned on escrow accounts, revolving rehabilitation accounts or lump sum rehabilitation accounts, incame from service fees, sale of commodities, usage or rental fees, loan proceeds from rehabilitation or economic development loans, and interest earned on revolving loans ond proceeds from special assessments levied to recover the cost of constructing a public warks or facility to the extent that such cost was initially paid with the Community Development Block Grant funds; and, WHEREAS, in accordanCe with Federal regulations, Anoka County as the Community Development Block Grant recipient must receive all program income. The County then may use said funds for any eligible Community Development Block Grant activity and the County must expend revenues generated by program income before further drawdown requests will be authorized; and, WHEREAS, payments of interest and principal due on economic . development loans to private industry, which are made to a revolving loan account which was approved os a C.D.G.B. grant to a State-certified local development corporation are not considered by HUD to be "program income": NOW, TrlEREFORE, BE IT RESOLVED that the Anoka County Boord af Commissioners does hereby establish as a matter of policy that: I) All income from CDBG-funded activities which meets the above definitian of program income, shall be promptly forwarded to Anoka County. 2) Each LDC which has a CDSG revolving loan account for economic development will retain loan repayments within the account for continued use for economic development and that the County or the city will execute an agreement with the LDC which will include: a) Prohibition of canflict of interest as provided in HUD Regulation 24CFR Part 570.611. b) Compliance with Title VI of the Civil Rights Act of 1964. c) Requirement for the LDC to submit quarterly reports to the Anoka County Community Development Director regarding the use and results of expenditure of funds from the revolving loan account for so long as Anoka County remains an entitlement county. d) Any other provisions required by S tate or Federal law or regulation. RESOLUTION 1185-42 (Continued) Page 2 3) Anoka County will establish as of May I, 1985, a revolving loan account for deposit of all economic development loon payments received by Anoka County. BE IT FURTHER RESOLVED that, all program income received by Anoka County fram activities funded in total or port from a municipality's CDBG project will increase that community's budget far eligible CDBG activities and shalf therefore be available to the community for future expenditure pursuant to the Joint Cooperation Agreement in effect at the time of expenditure. YES NO District III - Haas X Haas Dis trict 112 - Burman X Burman District 113 - Langfeld X Langfeld District 04 - Kofdiak X Kordiak District 115 - Cenaiko X Cenaiko District 116 - McCarron X McCarron District 117 - Erhart X Erhart State of Minnesota ) SS County of Anoka ) I, Jahn "Jay" Mclinden, County Administrator, Anoka County, Minnesota, hereby certi"fy that I have compared the foregoing copy of the resolution of the Caunty Board of said County with the original record thereof on file in the Administration Office, Anoka County, Minnesota, as stated in the minutes of the proceedings of said Board at a meeting duly held on April 23, 1985, and that the some is a true and correct copy of said original record ond of the whole thereof, and that said resolution was duly passed by said Board at said meeting. Witness my hand and seal this 23rd day of April, 1985. ~~~~ COUNT AD INISTRA TOR Exhibit E BOARD OF COUNTY COMMISSIONERS Anoka County I Minnesota August 12, 1986 RESOLUTION NO. Haas Steffen 86-70 DATE OFFERED BY COMMISSIONER COUNTY BOARD POLICY - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME AMENDING RESOLUTION 85-42 WHEREAS, Title I of the Housing and Community Development Act of 1974 as amended provides for a program of Community Development Block Grants; and, WHEREAS, the Anoka County Board of Commissioners has been designated as an "Urban County" by the Federal Housing and Urban Development Department and consequently is eligible to participate in the Notional Community Development Block Grant Program; and, WHEREAS, the Anoka County Boord of Commissioners has directed the preparation of a plan under the Community Development Block Grant Program in concert with the municipalities of Anoka County; and, WHEREAS, as a portion of said plan, municipalities as the sub-grantee of Community Development Block Grant funds may utilize said funds in various program forms to benefit low and moderate income persons, to aid in the prevention or elimination of slums or blight or to meet other community development needs having a particular urgency because of threat to health and safety; and, WHEREAS, "program income" means income earned by the sub-grantee from the grant supported activity such as: proceeds from the sale of real or personal property, interest earned on escrow accounts, revolving rehabilitation accounts or lump sum rehabilitation accounts, income from service fees, sale of commodities, usage or rental fees, loan proceeds from rehabilitation or economic development loans, and interest earned on revolving loans and proceeds from special assessments levied to recover the cost of constructing a public works or facility to the extent that such cos t was initially paid with the Community Development Block Grant funds; and, WHEREAS, in accordance with Federal regulations, Anoka County as the Community Development Slock Grant recipient must receive 011 program income, to be used for any eligible Community Development Block Grant activity and the County must expend revenues generated by program income before further drawdown requests will be authorized: NOW, THEREFORE, BE IT RESOLVED that the Anoka County Boord of Commissioners does hereby establish os a matter of policy that: I) All CDSG program income meeting the above definition, except payments to a County-approved LDC revolving loan account, shall be promptly forwarded to Anoka COtInty. 2) Each LDC which has 0 CDBG revolving loon account for economic development will retain loon repayments within the account for continued use far economic development subject to all CDSG regulations, and that the County or the city will execute an agreement with the LDC which will include: . a) Prohibition of conflict of interest as provided in HUD Regulation 24CFR Part S70.611. b) Compliance with Title VI of the Civil Rights Act of 1964. c) Requirement for the LDC to submit quarterly reports to the Anoka County Community Develop(Tlent Director regarding the use ond results of expenditure of funds from the revolving loan account for so long as Anoka County remains an entitlement county. d) Any other provisions required by State or F ederallaw or regulation. 3) Anoka County has established os of May I, 1985, a revolving loon account for deposit of all economic development loon payments received by Anoka County. BE IT FURTHER RESOLVED that, all progrom income received by Anoka County from activities funded in total or part from 0 municipality's CDSG project will increase that community's budget for eligible CDSG activities and shall therefore be available to the community for future expenditure pursuant to the Joint Cooperation Agreement in effect at the time of expenditure. RESOLUTION 086-70 Page 2 District III - Haas Steffen District 112 - Burman District /13 - Langfeld District 114 - Kordiak District IJS - Cenaiko District IJ6 - McCarron District In - Erhart YES X X NO Haas Steffen Burman X X X X Langfeld Kordiak Cenaiko McCarron Erhart Absent State of Minnesota ) SS County of Anoka ) I, John "Jay" Mclinden, County Administrator, Anoka County, Minnesota, hereby certify that I have compared the foregoing copy of the resolution of the County Board of said County with the original record thereof on file in the Administration Office, Anoka County, Minnesota, as stated in the minutes of the proceedings o"f said Board at a meeting duly held on August 12, 1986, and that the same is a true and correct copy of said original record and of the whole thereof, and that said resolution was duly passed by said Board at said meeting. Witness my hand and seal this 12th day of August, 1986. ~~ltt~L.. HN "Jp.;r" LINDE COUNTY ADMINISTRATOR Exhibit F CERTIFICATION The Undersigned, on behalf of the Agency, certifies, to the best of his or her knowledge and belief, that: (1) No federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1332, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less that $10,000 and not more than $100,000 for each such failure. Its: Its: AGENCY: By: By: Date: Date: BY: ITS: DATE: Equal Employment Opportunity Certification Excerpt From 41 CFR S60-1.4(b) Exhitit G u.s. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner Department of Veterans Affairs The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work. or modifi- cation thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant. contract. loan insurance. or guarantee. or undertaken pursuant to any Federal program involving such grant. contract, loan. insur~ ance. or guarantee. the following equal opportunity clause: During the performance of this contract. the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race. color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that em- ployees are treated during employment without regard to their race. color, religion, sex. or national origin. such action shall include. but not be limited to the following: Employ- ment. upgrading, demotion, or transfer; recruitment or re- cruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to P?st in conspicuous places. available to employees and applIcants for employment. notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The contractor will. in all solicitations or advertisements for employees placed by or on behalf of the contractor. state that all qualified applicants will receive considerations for em- ployment without regard to race. color, religion. sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which it has a collective bargaining agree- ment or other contract or understanding. a notice to be provided advising the said labor union or workers' represen- tatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965. and of the rules. regu- lations and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports re- quired by Executive Order 11246 of September 24, 1965. and by rules. regulations. and orders of the Secretary of Labor, or pursuant thereto. and will permit access to its books, records. and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compli- ance with such rules. regulations. and orders. Firm Name and Address (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations. or orders, this contract may be can- celed. terminated. or suspended in whole or in part and the contractor may be declared ineligible for further Govern- ment contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24. 1965. or by rule, regulation, or order of the Secretary of Labor , or as otherwise provided by law. (7) The contractor will include the portion of the sentence imme- diately preceding paragraph (1) and the provisions of para- graphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations. or orders of the Sec- retary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcon- tract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event a contractor becomes involved in, or is threatened with. litigation with a subcontractor or vendor as a result of such direction by the administering agency the contractor may request the United States to enter into such litigation to protect the interests of the United States. The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government. the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules. regulations. and relevant orders of the Secretary of Labor. that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance. and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965. with a contractor debarred from. or who has not demonstrated eligibility for. Government contracts and Federally-assisted construction contracts pursuant to the Executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed By Tille 7;/ f form HUD-92010 (1/82) VA form 26.421 upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel. terminate, or suspend in whole or in part this grant (contract. loan, insurance, guarantee); refrain from extending any further assis: tance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. Excerpt from HUD Regulations 200.410Definition of term "applicant". (a) In multifamily housing transactions where controls over the mortgagor are exercised by the Commissioner either through the ownership of corporate stock or under the provisions of a regulatory agreement, the term "applicant" as used in this subpart shall mean the mortgagor. (b) In transactions other than those specified in paragraph(a) of this section, the term "applicant" as used in this subpart shall mean the builder, dealer or contractor performing the con- struction, repair or rehabilitation work for the mortgagor or other borrower. 200.420Equal Opportunity Clause to be included in contracts and subcontracts. (a) The following equal opportunity clause shall be included in each contract and subcontract which is not exempt: During the performance of this contract, the contractor agrees as follows: r (1) The contractor will not discriminate against any em- ployee or applicant for employment because of race. creed, color, or national origin. The contractor will take affirmative action to ensured that applicants are employed, and that employees are treated during employment without regard to their race, creed, color, or national origin. Such action shall include. but not be limited to the following: employment. upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including ap- prenticeship. The contractor agrees to post in conspicuous places, available to employees and ap.plicants for employ- ment, notices to be provided setting forth the provisions of the nondiscrimination clause. (2)The contractor will in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard race, creed, color, or national origin. (3) The contractor will send to each labor union or repre- sentati ve of workers with which he has a collective bargain- ing agreement or other contract or understanding, a notice, to be provided. advising the said labor union or workers' repre- sentati ve of the contractor's commitments under this section. and shall post copies of the notices in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Ex- ecutive Order 10925 of March 61961, as amended, and of the regulations, and relevant orders of the President's Commit- tee on Equal Employment Opportunity created thereby. (5) The contractor will furnish all information and reports required by Executive Order 10925 of March 6, 1961, as amended, and by the regulations, and orders of the said Committee, or pursuant thereto, and will permit access to his books, records, and accounts by HUD and the Committee for purposes of investigation to ascertain compliance with such regulations, and orders. (6) In the event of the contractor's non-compliance with the nondiscrimination clause of this contract or with any of the said regulations, or orders, this contract may be can- celled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Govern- ment contracts or Federally-assisted construction contracts in accordance with procedures authorized in Executive Order 10925 of March 6, 1961, as amende, and such other sanctions may be imposed and remedies invoke s provided in the said Executive Order or by regulations, or order of the President's Committee on Equal Employment Opportunity, or as other- wise provided by law. (7) The contractor will include the provisions of Para- graphs(l) through (7) in every subcontract or purchase order unless exempted by regulations. or orders of the President's Committee on Equal Employment Opportunity issued pursu- ant to Section 303 of Executive Order 10925 of March 6, 1961, as amended, so that such provisions will be binding upon each subcontractor or vender. The contractor will take such action with respect to any subcontract or purchase orders as HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vender as a result of such direction by HUD, the contractor may request the United States to enter into such litigation to protect the interests of the United States. (b) Except in subcontracts for the performance of construction work at the site of construction, the clause is not required to be inserted in subcontracts below the second tier. Subcontracts may incorporate by referenced to the equal opportunity clause. 200.425Modification in and exemptions from the regulations in this subpart. (a) The following transactions and contracts are exempt from the regulations in this subpart: (1) Loans, mortgages, contracts and subcontracts not ex- ceeding $10,000. (2) Contract and subcontracts not exceeding $100,000 for standard commercial supplies or raw material; (3)Contracts and subcontracts under which work is to be or has been performed outside the United States and where no recruit- ment of workers within the United States in involved. To the extent that work pursuant to such contracts is done within the Untied States, the equal opportunity clause shall be applicable; (4) Contracts for the sale of Government property where no appreciable amount of work is involved; and (5) Contracts and subcontracts for an indefinite quantity which are not to extend for ore than one year if the purchaser determines that the amounts to be ordered 'under any such contract or subcontract are not reasonably expected to exceed $100,000 in the case of contracts or subcontracts for standard commercial supplies and raw materials, or $10,000 in the case of all other contracts and subcontracts. form HUD-92010 (1/82) VA form 26-421