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RES 2010-0356 - Loan agmt with Bethesda Homes LLC to rehabilitate properties 0 Op�1AHA,nr�, of Planning Department �; ` Omaha/Douglas las Civic Center �' •- � RECEIVED g ritrilltli 1819 Farnam Street,Suite 1100 Omaha,Nebraska 68183 10 ` R C 2 A I O' 5 5 (4br Nebraska 68150 83 Telefax(402)444-6140�'��D FE.1303 CITY u L E s t c R.E.Cunningham,RA,F.SAME City of Omaha O I:i A H A, N¢E R A S K,, Director Jim Suttle,Mayor March 30, 2010 Honorable President and Members of the City Council, The attached Resolution approves a Neighborhood Stabilization Program (NSP) Loan Agreement in the amount of$1,080,000.00 between the City of Omaha(hereinafter referred to as the "City") and Bethesda Homes, LLC, a Nebraska Limited Liability Company, (hereinafter referred to as the "LLC"). The Managing Member of the LLC is Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, Joseph L. Shannon, Sr., President/CEO, 5116 Terrace Drive, Omaha,Nebraska 68134. The City of Omaha applied for and received NSP funds from the State of Nebraska Department of Economic Development (NDED) under Contract No. 0910S23, CFDA #14.228. The City will use NSP funds to acquire seven (7) abandoned and foreclosed upon properties that will be located between Harrison Street, I-680, 72nd Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Honorable President and Members of the City Council Page 2 Funds shall be payable from the FY 2009 NSP Contract No. 0910S23, CFDA #14.228, Fund No. 12198, Organization No. 129164. The Consolidated Plan identified that this Project provides housing that is determined to benefit low- moderate-, and middle-income (LMMI), households; therefore, the Project is consistent with the Consolidated Plan and is eligible for funding. The total cost for rehabilitation is $1,080,000.00 to be paid from NSP funds. The Contractor: Bethesda Homes, LLC (Bethesda Urban Community Development Corporation, Inc., Managing Member), has on file a current Annual Contract Compliance Report Form (CC- 1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Your favorable consideration of this Resolution for this housing project will be appreciated. Sincerely, Referred to City Council for Consideration: .'4141110 L �/ �i► ��N, ,o in ' 22 Jv rc_ 1: v R. E. Cunnin ha ' ' 7 �"g �;� ' '� _ ��='-'�"" Date Mayor s�®ffice Date Planning Director Approved as to Funding: Approved: ho -/0 ( � 3/,C/ Pam Spaccarotella boa Date Human Rights and Relations Dept. Date Finance Director 3•0.10 Pin lsfl 3 76-cover letter ison Street, I-680, 72nd Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS CONTRACT NO. 0910S23, CFDA#14.228 BETWEEN CITY OF OMAHA AND Bethesda Homes, LLC, a Nebraska Limited Liability Company Managing 1Viember: Bethesda Urban Community Development Corporation,Inc., a Nebraska Non-profit Religious Corporation FOR Lease-Purchase Project consisting of seven (7) abandoned and foreclosed-upon houses that will be conveyed by the City in the area bounded by Harrison Street, I-680, 72nd Street and the Missouri River to the LLC for rehabilitation and sell through a lease-purchase program mutually agreed upon by the City, NDED and the LLC Omaha, Nebraska . ty Council agenda of March 23, 2010 appointing Michael Young to the Transit Authority Board. The term will begin March 23, 2010 aln f e`nd March 22, 2015. . Resume is attached. Revised 03/99 TABLE OF CONTENTS SECTION 1 OF DEVELOPER DEFINITIONS AND ABBREVIATIONS SECTION 2 RESPONSIBILITIES 2.01 Overall Project Performance 2.02 Project Budget 2.03 Term of the Agreement SECTION 3 CONDITIONS FOR RECEIPT OF CITY FINANCING 3.01 Conveyance of Land 3.02 Documents Required by City 3.02.1 Property Insurance 3.02.2 Contracts 3.02.3 Performance and Labor Material Payment Bond and/or an Irrevocable Letter of Credit 3.02.4 Contractors' Insurance and Workers' Compensation 3.02.5 Plans Submission 3.02.6 Affirmative Marketing Plan 3.02.7 Minority/Women Owned Business Enterprise Plan 3.02.8 Eligible Contractors 3.02.9 Funding Compliance Deadline 3.02.10 Section 504 3.02.11 Security for Non-Recourse Repayable Loan SECTION 4 PROJECT RESPONSIBILITIES OF THE DEVELOPER 4.01 Eligible Use of Funds 4.02 Terms and Conditions 4.03 Breach of Agreement 4.04 Lien Waivers 4.05 Ineligible Costs 4.06 Lead-Based Paint Prohibition 4.07 Ongoing Property Restrictions 4.08 Davis-Bacon Wage Determination Exemption Checklist 4.09 Property Standards (24 C.F.R. 92.251) 4.10 Affirmative Marketing Policy(24 C.F.R. 92.351) 4.11 Maintenance of Property 4.12 Pre-Construction Meeting 4.13 National Environment Policy Act of 1969 Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF DEVELOPER 5.01 Financial Management 5.01.1 Accounting Standards 5.01.2 Cost Principles 5.01.3 Audits 5.02 Documentation and Record-keeping (24 C.F.R. 92.508) 5.03 Reports 5.03.1 Rehabilitation/Construction Progress Reports 5.03.2 Housing Activities Report 5.03.3 Occupancy Report 5.04 Financial Status Report 5.05 Record Retention 5.06 Personnel and Participant Conditions 5.06.1 Contract Compliance Clause 5.06.2 Workers' Compensation 5.06.3 Employment Insurance and Bonding 5.06.4 Minority Business/Women Business Enterprise Pan 5.06.5 Section 3-Employment of Low-income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u) 5.06.6 Conflict of Interest SECTION 6 DEVELOPER'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review 6.02 Uniform Relocation Act 6.03 Soil Work Policy SECTION 7 RESPONSIBILITIES OF THE CITY 7.01 Performance Monitoring 7.02 Payments 7.02.1 Funds Allocated to the Developer 7.02.2 Obligation for Payment 7.03 Progress Payments 7.04 Inspections 7.05 Technical Assistance ive Marketing Policy(24 C.F.R. 92.351) 4.11 Maintenance of Property 4.12 Pre-Construction Meeting 4.13 National Environment Policy Act of 1969 Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • SECTION 8 MUTUAL AGREEMENTS BETWEEN CITY AND DEVELOPER 8.01 Release of Information Laws 8.02 Applicable Laws 8.03 Interest of the City 8.04 Independent Contractor 8.05 Project Roles • 8.06 Captions 8.07 Merger 8.08 Modification 8.09 Assignment 8.10 Strict Compliance 8.11 Termination 8.12 Reversion of Assets 8.13 Indemnification 8.14 Unenforceable Provisions 8.15 Disclosure of Lobbying 8.16 Notices 8.17 Applicability SECTION 9 DEFAULT PROVISIONS • 9.01 Remedies 9.02 Non-Recourse Repayable Loan SCHEDULE OF EXHIBITS AND ATTACHMENTS Plnlsf1376-table of contents . The term will begin March 23, 2010 aln f e`nd March 22, 2015. . Resume is attached. Revised 03/99 NEIGHBORHOOD STABILIZATION PROGRAM LOAN AGREEMENT REHABILITATION AND LEASE-PURCHASE OF PROPERTY BETHESDA HOMES, LLC LOW-, MODERATE-, AND MIDDLE-INCOME (LMMI) THIS AGREEMENT is entered into by and between the City of Omaha (hereinafter referred to as the "City") and Bethesda Homes, LLC, a Nebraska Limited Liability Company, (hereinafter sometimes referred to as the "LLC"). The Managing Member of the LLC is Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, 5116 Terrace Drive, Omaha, Nebraska, 68134, based on terms, conditions and provisions as set forth below. RECITALS: WHEREAS, the City is a municipal corporation located in Douglas County, Nebraska, and is organized and existing under the laws of the State of Nebraska, and is authorized and empowered to exercise all powers conferred by the State constitution, laws, Home Rule Charter of the City of Omaha, 1956, as amended, and local ordinances, including but not limited to, the power to contract; and, WHEREAS, the City of•Omaha has applied for and received Neighborhood Stabilization Program (hereinafter sometimes referred to as "NSP") funds from the State of Nebraska Department of Economic Development (NDED) for the purpose of providing affordable housing benefiting low-, moderate-, and middle-income (LMMI) households; and, • 4.12 Pre-Construction Meeting 4.13 National Environment Policy Act of 1969 Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i WHEREAS, the City received approval from the NDED and funds in the amount of $1,080,000.00 were released from the State under Contract No. 091OS23, CFDA #14.228, a copy of which is attached hereto as Attachment No. 1 and incorporated herein by this reference as though fully set forth; and, WHEREAS, the NSP funds were provided under Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA) for redevelopment of abandoned and foreclosed upon properties for the purpose of providing affordable housing opportunities for low-, moderate-, and middle-income households; and, WHEREAS, the City applied for and received NSP funds from the State of Nebraska Department of Economic.Development (NDED) under Contract No. 091OS23, CFDA #14.228 to be used by the City to acquire seven (7) abandoned and foreclosed upon properties located between Harrison Street, I-680, 72' Street and the Missouri River. The City will convey the properties and provide financing in the amount of$1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the "Project"); and, 2 established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i WHEREAS, the estimated rehabilitation cost is $1,080,000.00 to be paid with NSP funds; and, WHEREAS, it is in the best interest of the City and the residents thereof that the City enter into an Agreement with the LLC to complete this worthwhile housing redevelopment. NOW, THEREFORE, IN CONSIDERATION OF THESE MUTAL COVENANTS, the parties do hereby agree as follows: SECTION 1. DEFINITIONS AND ABBREVIATIONS. The following terms shall have the following meanings for all purposes in this Agreement: 1.01 "City" shall mean—the City of Omaha, a Nebraska Municipal Corporation. 1.02 "Developer" shall mean — Bethesda Homes, LLC, a Nebraska Limited Liability Company. The Managing Member of the LLC is Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, 5116 Terrace Drive, Omaha,Nebraska, 68134 (See Exhibit"A"). 1.03 "Director" shall mean—the Planning Director of the City of Omaha. 1.04 "Recipient" shall mean—the City of Omaha. 1.05 "Subrecipient" shall mean — a public agency or private non-profit organization receiving NSP funds to undertake eligible activities. In this Agreement the Subrecipient is the Developer. 1.06 "HUD" shall mean—the U.S. Department of Housing and Urban Development. 1.07 "NDED" shall mean—the Nebraska Department of Economic Development. 1.08 "Neighborhood Stabilization Program (NSP) Funds" shall mean— that portion of the NSP funds awarded to the City from NDED, subject to and conditioned upon actual receipt of same by the City of Omaha, as may be available to loan during the FY 2009 program year for the use specified herein in an amount not to exceed $1,080,000.00 payable from the NSP Contract No. 091OS23, CFDA #14.228, Fund No. 12198, Organization No. 129164, subject to the terms, conditions and requirements of said Agreement. 3 .S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC (hereinafter referred to as the"Project"). This Project is included in the FY 2009 Consolidated Submission for Community Planning Programs approved by the City Council on October 8, 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 1.09 "NSP Program Repayable Loan" shall mean — a Non-Recourse Repayable Loan in an aggregate amount of $1,080,000.00 made subject to the terms, conditions and provisions of the agreement under which said loan is made that shall be paid as follows: The annual interest rate shall be established at Zero Percent (0%) effective January 1, 2011. The Repayable Loan shall become due and payable upon the sale, conveyance, grant, mortgage, assignment or other transfer of interest by the Developer in said property during the term of the Non-Recourse Repayable Loan. Leasing the Property through a Lease-Purchase Program mutually agreed upon by the City, DED and the LLC will not be considered a transfer of interest by the Developer. The loan may only be used for the purposes described herein. (Exhibit"B"). 1.10 "Rehabilitation Financing" shall mean, but is not limited to — billings for rehabilitation, closing costs, contractor's profit and overhead, developer's fee/overhead, predevelopment and public improvement costs, financing, legal, accounting, architectural or construction supervision costs, costs for materials, labor, utility hookups and site preparation associated with the rehabilitation of the Project. 1.10.01 Contractors' or its subcontractors' profit and overhead shall not exceed 15% of hard construction cost. 1.11 "Rehabilitation Completion or Construction Completion" shall mean — the date the Project has been certified by the City as complying with all appropriate state, federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS) as established by HUD, the City of Omaha Property Rehabilitation Standards (PRS), accessibility requirements, where applicable, and the NDED Rehabilitation/Construction Standards. 1.12 "Project Completion" shall mean — the date leveraged funds have been received by the Developer and allocated to the Project, Rehabilitation Completion has been certified and approved by the City, all NSP funds have been disbursed, and all units have been occupied by eligible low-, moderate-, and middle-income families. 1.13 Project Close Out" shall mean — the dates all project NSP funds have been disbursed and the City has completed HUD close out procedures (24 C.F.R. 92.507 and OMB Circular A-110 Subpart A(g)) (Exhibit "C"). The distinction between Project Close Out and Project Completion is that occupancy requirements are required to be satisfied for Project Completion. 4 , 2008, Resolution No. 1492, as amended. he applicant's experience in handling fiduciary responsibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 1.14 "Affordability Period" (24 C.F.R. 92.252(e)) shall mean—that time period, fifteen (15) years after initial occupancy of the property by an eligible household in which Developer shall keep all assisted units affordable. During the Affordability Period, the Developer must ensure that the NSP-assisted rental units continue to meet rent restrictions, occupancy requirements and property standards as described in Section 4.09 herein. For this Agreement, the Affordability Period shall commence with occupancy of the initial tenant through April 30, 2016. In the event the term of the Agreement would be extended, the Affordability Period would be extended for the additional time. Alternately, in the event Project Close Out would be accelerated, the term of the Agreement and Affordability Period shall be moved correspondingly. 1.15 "Property" or "Target Area" shall mean — those seven (7) houses acquired by the City and conveyed to the LLC for this redevelopment project located between Harrison Street, I-680, 72nd Street and the Missouri River. 1.16 "Low-, Moderate-, and Middle- Income (LMMI)" shall mean — a family whose gross annual household income does not exceed 50% percent of median income for the Omaha NE-IA Metropolitan Statistical Area as determined periodically by HUD (Exhibit "C"). 1.17 "Affordable Rents" shall meet the following qualifications: 1.17.1 Rent Limitation: NSP provides the following maximum NSP rent limits. The maximum NSP rents are the lesser of: 1.17.1.1 The fair market rent (Exhibit "C") for existing housing for comparable units in the area as established by HUD under 24 C.F.R. 888.111; or, 1.17.1.2 A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. 1.17.2 Initial rent schedule and utility allowance (Exhibit"C"): 1.17.2.1 The City will establish maximum monthly allowances for utilities and services (excluding telephone). The City will review and approve rents proposed by the Developer for units subject to the maximum rent limitations in Paragraphs 1.17.1.1 or 1.17.1.2 of this section. For all units subject to the maximum rent limitations the City must ensure that the rents do not exceed the maximum rent minus the monthly allowances for utilities and services. 5 ibilities? REFEREE'S Plaintiff Name and address of principal's attorney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 1.17.3 Subsequent rents during the Affordability Period: 1.17.3.1 The maximum HOME rent limits (Exhibit "C") are recalculated on a periodic basis after HUD determines fair market rents and median incomes. HUD then provides the . new maximum HOME rent limits to participating jurisdictions. Regardless of changes in fair market rents and in median income over time, the NSP rents for a project are not required to be lower than the HOME rent limits for the project in effect at the time of project commitment. 1.17.3.2 The Nebraska Department of Economic Development (DED) NSP grantee (City of Omaha) must provide Developers with information on updated NSP rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits in Paragraph 1.17.1 of this section) in accordance with the written agreement between the City and Developer, a copy of which is attached hereto and incorporated herein by this reference as though fully set forth as Attachment No. 1. Developers must annually provide the City with information on rents and occupancy of NSP-assisted units for twelve-month lease agreements and monthly if the lease agreements becomes month-to- month to demonstrate compliance with this section. 1.17.3.3 Any increase in rents for NSP-assisted units is subject to the provisions of outstanding leases, and in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents. NOTE: This definition is an adoption of the HOME program standards at 24 C.F.R. 92.252(a), (c), and(f). 1.18 "Program Income" shall mean — the gross income received by the Recipient or Subrecipient directly generated from the use of NSP Funds (24 C.F.R. 92.503). When such income is generated by an activity that is only partially assisted with NSP Funds, the income shall be prorated to reflect the percentage of NSP Funds used (see Exhibit "D", attached hereto and incorporated herein by.this reference as though fully set forth). Any program income generated by NSP funds through March 31, 2013 shall be returned to the City within thirty (30) days after the program income is received to be used to make housing units located between Harrison Street, I-680, 72I'd Street and the Missouri River affordable to LMMI persons. After March 31, 2013, all program income generated by NSP funds will be limited to eligible CDBG activities, including the benefit to LMI (not LMMI) households during the remaining term of this Agreement and 6 rney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 1.19 "NSP Fixed Units" shall mean — the seven (7) abandoned and foreclosed-upon houses acquired by the City and conveyed to the LLC for this redevelopment project located between Harrison Street, I-680, 72nd Street and the Missouri River. 1.20 Deferred Payment Loan (DPL) to Assist Homebuyer" shall mean— a loan without interest of NSP funding in an amount in accordance with the Lease-Purchase Program that shall be mutually agreed upon by the City, NDED and LLC. The DPL shall become due and payable on the first day after the homebuyer conveys, grants, mortgages, assigns or no longer resides in the property as their principal place of residence, or otherwise, transfer their interest or a portion thereof in the property or improvements without the prior written consent of the Director, in lawful money of the United States at the principal office of the City of Omaha Planning Department, 1819 Farnam Street, Suite 1111, Omaha, Nebraska, 68183, or at such other place as shall be designated by the City. The principal on the DPL shall depreciate at the rate of five percent (5%) per a year from the date of the DPL for ten (10) years if the homebuyer does not convey, grant, mortgage, assign or transfer a portion of the property or improvements thereon and continues to reside in the property as their principal place of residence. The remaining 50% balance of the Principal on the DPL shall become due upon sale or transfer of the property, or the buyer may choose to repay this balance through terms and conditions of repayment as determined by the City. 1.21 "Housing-Income Ratio (HIR)" shall mean — the monthly total of all mortgage payments, real estate taxes, special assessments, property insurance premium mortgage insurance premiums (PITI) included in the first mortgage payment and utilities based on the City's Utilities Allowance Form (excluding Federal income taxes, State income taxes, Social Security payments) divided by the gross monthly house income. The maximum HIR is 30%. 1.22 "Debt-to-Income Ratio (DIR)" shall mean — the monthly total of all mortgage payments, real estate taxes, special assessments, property insurance premiums and liabilities including utilities based on the City's Utilities Allowance Form (excluding federal income taxes, state income taxes and social security payments) divided by the gross monthly household income. The maxim DIR IS 42%. 1.23 "Maximum Initial Sales Price" shall mean - the lesser of the acquisition and rehabilitation cost or the appraised value. 7 to LMMI persons. After March 31, 2013, all program income generated by NSP funds will be limited to eligible CDBG activities, including the benefit to LMI (not LMMI) households during the remaining term of this Agreement and 6 rney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • SECTION 2. RESPONSIBILITIES OF THE DEVELOPER. 2.01 Overall Project Performance • 2.01.1 The Developer shall use NSP Funds for financing for the rehabilitation of seven (7) houses to be occupied by qualified low-, moderate-, and middle-income homeless families whose annual household incomes are 50% or below the Median Family Income (MFI) (Exhibit "C"). 2.01.2 Total Total Total Total LMMI Project Units Assisted Units Fixed Units Unit 7 7 7 7 2.01.3 Number of Maximum Percent of Area LMMI Households Median Income Permitted 7 50% 2.01.4 Construction Completion Date April 30, 2011 2.02 Project Budget • 2.02.1 The Developer and the City asserts that the funding sources and amounts listed below are committed as of this date or will be committed to the Project prior to loan closing with the City. NSP Funds $1,080,000.00 Estimated Project Cost $1,080,000.00 2.03 Term of the Agreement 2.03.1 This Agreement shall be in full force and effect and shall end on April 30, 2016. Project completion as well as services of the Developer will start effective the date of the proceed order issued by the City and Levels of Project Performance stated in Section 2.01 shall be completed as of April 30, 2011. This date may be extended by the Planning Director. In the event the Project Completion would be accelerated, the Term of the Agreement and Affordability Period shall be moved correspondingly. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC throughout the Affordability Period. 8 o (DIR)" shall mean — the monthly total of all mortgage payments, real estate taxes, special assessments, property insurance premiums and liabilities including utilities based on the City's Utilities Allowance Form (excluding federal income taxes, state income taxes and social security payments) divided by the gross monthly household income. The maxim DIR IS 42%. 1.23 "Maximum Initial Sales Price" shall mean - the lesser of the acquisition and rehabilitation cost or the appraised value. 7 to LMMI persons. After March 31, 2013, all program income generated by NSP funds will be limited to eligible CDBG activities, including the benefit to LMI (not LMMI) households during the remaining term of this Agreement and 6 rney 4Ti RECEIVER'S TRUSTEE'S Defendant Name and location of Court Applicant's net worth: BOND $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i SECTION 3. CONDITIONS FOR RECEIPT OF CITY FINANCING. 3.01 Conveyance of Land. Subject to and conditioned upon actual receipt of same, the City agrees to convey by Warranty Deed seven (7) abandoned and foreclosed upon houses in the Target Area to the Developer for the sum of One Dollar ($1.00) and other valuable considerations. The houses to be conveyed will be located in Target Area described in Section 1.15 herein and shall be free of encumbrances. 3.01.1 The Developer shall convey to the City any houses which have not been utilized, though the performance of this Agreement, upon the date the parties reach a mutual decision to teiiiiinate this Agreement and before full development of the project or upon the expiration date of this Agreement as described in Section 2.03, whichever date or event first occurs. 3.02 Documents Required by City. In no event shall the City assume any obligation to make any or all of the above-referenced funding available, nor shall the City incur any liability hereunder, unless and until the Developer has submitted for and received the prior approval of the Director of all the documents listed below. 3.02.1 Property Insurance. Developer' shall procure and maintain, at a minimum, fire and extended coverage insurance in an amount sufficient to protect the City's interest in the Property during the Term of the Agreement and financing security documents (OMB Circular A-110) (Exhibit "E"). The insurance policy shall include the City of Omaha as an additional insured. Written evidence of such insurance shall be submitted to the City for approval. In the event of damage of the property, any insurance proceeds are to be applied, at the discretion of the Director, to the reconstruction of the property or repayment, in full, of the NSP funding. 3.01.2 Contracts. The Developer shall submit duly executed contracts for all Construction Work to the Director for approval prior to the start of construction. 3.02.3 Perfoirnance and Labor Material Payment Bond and/or an Irrevocable Letter of Credit. Developer or General Contractor responsible for Project Construction Work shall acquire and maintain a performance and labor material payment bond and/or a letter of credit in force for one year following the completion of the Construction Work from the Developer/General Contractor and all subcontractors in an aggregate amount of the contract bid. The Bonds and/or Letters of Credit shall be in favor of the City and shall be submitted to the Director for review and approval. The Director reserves the right to reject the Letters of Credit and Choice of Surety of the Bonds. Upon written request by the Developer, the Director may waive this requirement. 9 $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 3.02.4 Contractors' Insurance and Workers' Compensation. The Developer or its contractors and subcontractors shall submit Certificates of Insurance in favor of the City for review and approval by the Director. The insurance coverage shall include pollutant liability for lead reduction work, if applicable, Workers' Compensation, and, at a minimum, the following amount of coverage: Contractor's Personal Liability $1,000,000.00 Combined Bodily Injury and Property Damage ($1,000,000.00 each occurrence) $2,000,000.00 Product, Including Completed Operations $1,000,000.00 3.02.5 Plan Submissions. Developer shall submit all plans, working drawings and/or specifications necessary or incidental to this Project to the Director for review and approval. 3.02.6 Affirmative Marketing Plan. A copy of the Developer's and its subcontractor's affiuuiative action plan shall be submitted to the City for review and approval. 3.02.7 Minority/Women Owned Business Enterprise Plan. Developer shall submit to the Director for his review and approval a minority and women business participation plan, which discusses economic development and employment opportunities. These plans shall ensure that the Developer and its subcontractors will make their best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups. 3.02.8 Eligible Contractors. Developer shall obtain a certificate from each contractor or subcontractor to be used on this Project to the effect that each contractor or subcontractor has not been disbarred or disqualified by HUD (24 C.F.R. Part 5). The Director shall approve all contractors and subcontractors prior to being hired by the Developer. 3.02.9 Funding Compliance Deadline. In the event that all conditions of funding are not met on or before February 15, 2011, then this Agreement shall automatically become null and void and the City shall not be deemed to have assumed any obligation or liability hereunder. Upon the sole discretion of the Director, this date may be extended. • 10 r of credit in force for one year following the completion of the Construction Work from the Developer/General Contractor and all subcontractors in an aggregate amount of the contract bid. The Bonds and/or Letters of Credit shall be in favor of the City and shall be submitted to the Director for review and approval. The Director reserves the right to reject the Letters of Credit and Choice of Surety of the Bonds. Upon written request by the Developer, the Director may waive this requirement. 9 $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 3.02.10 Section 504. Per guidance from our HUD area office, multiple single- family homes in one program should be treated as a multi-family project. Alterations to dwelling units in a multi-family project shall, to the maximum extent feasible, be made to be readily accessible to and usable by individuals with handicaps. Developer shall ensure that five percent of the seven (7) units, or one (1) unit, shall be made accessible for persons with mobility impaiiiiients. A unit that is on an accessible route and is adaptable is considered accessible for this purpose. The Developer shall also ensure that an additional two percent of the units, or one (1) unit, shall be accessible for persons with hearing or vision impaiiiiients. (Exhibit"F"). 3.02.11 Security for Non-Recourse Repayable Loan. Developer shall execute for the benefit of the City a deed of trust, a Non-recourse Repayable • Loan Promissory Note and an Acknowledgement of Covenant Running With Land in an aggregate amount not to exceed $1,080,000.00 for the rehabilitation of seven (7) houses to be secured by no less than second lien positions subordinate to amounts not to exceed the total rehabilitation cost minus $1,080,000.00 or a higher amount approved by the Assistant Planning Director after all contractor/subcontractor bids are received. A copy of the Non-recourse Repayable Loan Promissory Note and an Acknowledgement of Covenant Running With Land in substantial form are attached hereto as Exhibit "B" and incorporated herein by this reference as thought fully set forth. SECTION 4. PROJECT RESPONSIBILITIES OF THE DEVELOPER 4.01 Eligible Use of Funds. The Developer does hereby certify, contract and agree that any and all funding obtained or made available hereunder shall be used solely and exclusively for the purposes described herein. 4.02 Temis and Conditions. The Developer shall abide by all terms and conditions of this Agreement and shall be responsible for the security and maintenance of the sites described in Section 1.15 herein. 4.03 Breach of Agreement. If through breach of this Agreement the Developer fails to maintain the occupancy, affordability and use restrictions as described herein, all NSP funds previously provided to the Developer through fulfillment of this Agreement shall promptly be returned to the City. 4.04 Lien Waivers. Developer agrees to obtain the appropriate lien waivers prior to each construction payment. 4.05 Ineligible Costs. The Developer shall not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs as described in Section 1.10 herein. 11 . Upon written request by the Developer, the Director may waive this requirement. 9 $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 4.05.1 Eligible Costs. The Developer shall be responsible for payment of any Project costs that exceed those specified in this Agreement. 4.05.1.1 Luxury Items. Property amenities shall be those amenities reasonably anticipated in comparable properties. Any items determined by the City as luxury items shall not be considered an eligible cost for construction. 4.06 Lead-Based Paint Prohibition. Developer shall not use lead-based paint in the performance of this Agreement, including the performance of any subcontractor (42 USC 4821 et seq., 24 C.F.R. 92.355 and 24 C.F.R. Part 35). "Lead-based Paint" means any paint containing more than six one-hundredths of one (1) per centum of lead by weight (calculated as lead metal) in the total nonvolatile content of the paint, or the equivalent measure of lead in the dried film of paint already applied. The Developer further agrees to abide by Federal requirements regarding lead-based paint poison prevention. 4.07 Ongoing Property Restrictions. During the construction period of the teiiii of this Agreement and that part of any grant, deed of trust/mortgage, covenant documents, the Developer shall: 4.07.1 maintain the property in a safe and sanitary condition at all times. 4.07.2 ensure that all real estate taxes and special assessments are paid and kept current. 4.07.3 maintain insurance against loss or damage to the Property in an aggregate amount sufficient to protect the City's interest in the Property. Such property insurance policy must be properly endorsed showing the City as an additional insured. In the event of loss or damage, the Developer shall provide immediate written notification to the City of any loss. Proceeds from any claim under this policy may, at the discretion of the Director, be either applied to restore or replace the improvements damaged or be paid to the City to satisfy the Developer's obligation to the City under the terms of this Agreement. 4.08 Davis-Bacon Wage Determination and HUD 4010 Labor Standards. See Exemption Document (Exhibit"G"). 4.09 Property Standards (24 C.F.R. 92.251). During the rehabilitation/construction period, the Developer shall ensure that all work performed and the Rehabilitation/Construction Work meets all state, federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS) as established by HUD, the City of Omaha Rehabilitation Standards, and accessibility requirements, where applicable, and NDED Rehabilitation/ Construction Standards. 12 1.10 herein. 11 . Upon written request by the Developer, the Director may waive this requirement. 9 $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 4.09.1 After completion of Rehabilitation/Construction Work and throughout the term of the Agreement, the Property must comply with all appropriate City codes and ordinances, Federal Section 8 Housing Quality Standards and with fire safety codes (24 C.F.R. 570.02), City of Omaha Property Rehabilitation Standards and accessibility requirements, if applicable, and NDED Rehabilitation/Construction Standards. 4.09.2 Inspections. The City may perform periodic inspections at any reasonable time to ensure compliance with this Agreement. The City shall perform final inspection to certify Project completion prior to final disbursement of NSP Program proceeds. 4.10 Affirmative Marketing Policy (24 C.F.R. 92.351). The Developer agrees to comply with the City's Affirmative Marketing Policy, attached hereto as Exhibit "H" and incorporated herein by this reference as though fully set forth. These affirmative marketing procedures must be employed in the advertising and marketing of this Proj ect for the Affordability Period. In marketing, the Developer shall also conform to the nondiscrimination provisions hereinafter set forth in Section 5.06.1.2. 4.11 Maintenance of Property. The Developer shall maintain the Property in a safe and sanitary condition to the extent possible during the construction phase of the Project. Developer 4.12 Pre-construction Meeting. The D er and its subcontractors shall attend a p preconstruction meeting with the NDED and the City Construction Specialist assigned to the Project prior to the start of any Construction Work. 4.13 National Environmental Policy Act of 1969. The Developer shall not begin any rehabilitation or construction of a Property until it receives approval by the City that all provisions of the National Environmental Policy Act of 1969 (NEPA) and related authorities listed in HUD's implementing regulations at 24 C.F.R. Parts 50 and 58 have been met regarding the Property. SECTION 5. GENERAL ADMINISTRATIVE REQUIREMENTS OF DEVELOPER. 5.01 Financial Management. • 5.01.1 Accounting Standards. The Developer agrees to comply with OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. (Exhibit "E", attached hereto and incorporated herein as though fully set forth). 13 Omaha Rehabilitation Standards, and accessibility requirements, where applicable, and NDED Rehabilitation/ Construction Standards. 12 1.10 herein. 11 . Upon written request by the Developer, the Director may waive this requirement. 9 $ NO FINANCIAL STATEMENT NECESSARY. HAVE PRINCIPAL SIGN Name and location of Court Name of Defendant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 5.01.2 Cost Principles. The Developer shall comply with the requirements and the standards of OMB Circular No. A-122, "Cost Principles for Non- profit Organizations" (Exhibit "G"), and with the requirements of OMB Circular A-110 (Exhibit "I"). Both exhibits are attached hereto and incorporated herein as though fully set forth. 5.01.3 Audits. The Developer shall comply with all provisions and regulations of the Program and have an annual audit completed in compliance with OMB Circular A-133, attached hereto as Exhibit "J", and incorporated herein as though fully set forth. A copy of the audit shall be provided to the Director. The auditor shall determine the appropriate type of audit to be conducted; i.e., limited scope or full compliance. A single audit is not an allowable expense unless the Subrecipient expends total federal funds over $500,000.00 in each fiscal year. A limited-scope audit may be allowable provided the auditor conducts the audit in accordance with generally accepted auditing standards and the recipient expends less than $500,000.00 in each fiscal year. 5.01.3.1 Any deficiencies noted in audit reports must be fully cleared by the Developer within 30 days after receipt of audit by the Developer. Failure of the Developer to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments and may constitute a default subject to default remedies referenced herein in Section 9. 5.02 Documentation and Record-keeping (24 C.F.R. 92.508). All Developer records with respect to any matters covered in this Agreement shall be made available to the City, its designees or the federal government, at any time during normal business hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any contract entered into by the Developer with any contractor or subcontractors shall include this Section to ensure said access. 5.03 Reports. The Developer shall submit to the City the following reports in accordance with 24 C.F.R. 92.505 with the submission timelines as specified. 5.03.01 Rehabilitation/Construction Progress Reports. The Developer shall provide reports to the Director (AIA G702 Form or comparable document) describing the progress of construction, and any significant problems and/or delays in construction on this project. Reports will be submitted at the time of each pay request, or by the 15th day of each month if no pay request is made before the 15th day of the month (or upon written request from the Director, but no more frequently than monthly). The progress reports are required until such time as all • Construction Work is completed and the City issues the final payment of construction to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 5.03.2 Housing Activities Report. The Developer shall provide a quarterly housing activities report to the NSP Housing Coordinator assigned to the Project describing, among other things, the: 5.03.2.1 number of applicants that have submitted applications;. 5.03.2.2 number of applications processed; 5.03.2.3 number.of applicants that received notification of eligibility. to rent units; 5.03.2.4 number of inspections completed on a unit; and, 5.03.2.5 number of applicants that received approval for rental assistance. 5.03.3 Occupancy Report. The Developer shall provide to the Director the following documents when the unit is initially leased and annually thereafter throughout the affordability period until property is sold to an eligible homebuyer(Exhibit"K"). 5.03.3.1 name(s) of tenant(s) 5.03.3.2 address of property 5.03.3.3 Tenant's Attestation as to eligibility for public benefit (Attestation Form) 5.03.3.4 household income as a percent of Median Family Income (MFI) as determined by HUD, income verification forms used in determining MFI including the City's Computing Annual Income Form (Exhibit "C") 5.03.3.5 household size 5.03.3.6 gender of head of household member 5.03.3.7 name and age of each household member 5.03.3.8 race/ethnicity of head of household 5.03.3.9 disability status of any household member 5.03.3.10 copy of annual lease agreement and utility allowances 5.03.3.11. evidence of affirmative marketing efforts For each household or individual occupying a house in the Project, the Developer shall retain the records for ten (10) years after the required Affordability Period as specified in Section 1.14 of this Agreement. For this Agreement, records shall be retained until May 1, 2026. In the event the : Term of the Agreement would be extended, the timeframe for record retention would be extended correspondingly. • 15 ecified. 5.03.01 Rehabilitation/Construction Progress Reports. The Developer shall provide reports to the Director (AIA G702 Form or comparable document) describing the progress of construction, and any significant problems and/or delays in construction on this project. Reports will be submitted at the time of each pay request, or by the 15th day of each month if no pay request is made before the 15th day of the month (or upon written request from the Director, but no more frequently than monthly). The progress reports are required until such time as all • Construction Work is completed and the City issues the final payment of construction to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • 5.04 Financial Status Reports. Developer shall submit financial status reports (OMB Circular A-110) (Exhibit "L") along with pay requests. These reports shall accompany pay requests. In the event pay requests are not submitted for ninety (90) days, financial status report shall be due, at a minimum, 15 calendar days from the end of the calendar year quarter. Attached as Exhibit "L", and incorporated herein by this reference as though fully set forth, is a sample financial status report. 5.05 Record Retention. The Developer, its contractors and subcontractors shall maintain such records and accounts, including property, personnel and financial records, as are deemed necessary by the City to assure a proper accounting for all expenses. The Comptroller General of the United States, or any of their duly authorized representatives, or any duly authorized representatives of the City, as approved by the Director, shall have access to any books, documents, papers, records and accounts of the Developer, Contractor, or subcontractors which are directly pertinent to this Project for the purpose of making audit, examination, excerpts and transcriptions. Such records and accounts shall be retained for ten (10) years after expiration of the Affordability Period (OMB Circular A-110) (Exhibit"E"). 5.06 Personnel and Participant Conditions 5.06.1 Contract Compliance Clause 5.06.1.1 Section 10-192 of the Omaha Municipal Code, Equal Employment Opportunity Clause. The Developer and its contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, national origin, familial or handicap status. As used herein, the word "treated" shall mean and include, without limitation, the following: recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The Developer and its contractor agree to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. 5.06.1.2 The Developer and its contractors shall, 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 to race, religion, color, sex, age, national origin, familial or handicap status. 16 monthly). The progress reports are required until such time as all • Construction Work is completed and the City issues the final payment of construction to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 5.06.1.3 The Developer and its contractors shall send to each representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or workers' representative of the contractor's commitments under the equal employment opportunity clause of the city and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5.06.1.4 The Developer and its contractors shall furnish to the Human Rights and Relations Department all federal fauns containing the information and reports required by the federal government for federal contracts under federal rules and regulations, including the information required by sections 10-192 to 10-194, inclusive, of the Omaha Municipal Code and shall permit reasonable access to his records. Records accessible to the Human Rights and Relations Department shall be those which related to Paragraphs 5.06.1.1 through 5.06.1.7 of this subsection and only after reasonable notice is given the contractor. The purpose of this provision is to provide for investigation to ascertain compliance with the program provided herein. 5.06.1.5 The Developer and its contractors shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 herein, including penalties and sanctions for noncompliance; however, in the event the contractor becomes involved in or is threatened with litigation as the result of such directions by the City, the City will enter into such litigation as is necessary to protect the interests of the City and to effectuate the provisions of this division, and, in the case of contracts receiving federal assistance, the contractor or the City may request the United States to enter into such litigation to protect the interests of the United States. 5.06.1.6 The Developer and its contractors shall file and shall cause his subcontractors, if any, to file compliance reports with the Developer's contractor in the same form and to the extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the City's Human Rights and Relations Department. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Developer, contractor and his subcontractors. 17 to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 5.06.1:7 The Developer and its contractors or its subcontractors shall include the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 of this section, "Equal Employment Opportunity Clause," and Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192; Ord. No. 35344, Sections 1, 9-26-00) 5.06.2 Workers' Compensation. The Developer shall provide Workers' Compensation Insurance coverage for all employees involved in the performance in this Agreement. 5.06.3 Employment Insurance and Bonding. The Developer shall purchase a blanket fidelity bond covering all employees, at a minimum, in an amount equal to cash advances from the City. The Developer shall comply with bonding and insurance requirements of OMB Circular A-110 (Exhibit"E"), Bonding and Insurance. 5.06.4 Minority Business/Women Business Enterprise Plan. The Developer shall make its best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups. As used in this Agreement, the term "women and members of minority groups" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. 5.06.5 Section 3 — Employment of Low-Income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u). The Developer shall make its best efforts to comply with Section 3. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. 5.06.6 Conflict of Interest. The Developer agrees to abide by the provisions of 24 C.F.R. 92.356 with respect to conflicts of interest, and covenants that it presently has financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the perfoiuiance of services required under this Agreement. The Developer further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Developer hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the City or any designated public agencies or subrecipients which are receiving funds under the NSP. 18 employment practices, policies, programs and statistics of the Developer, contractor and his subcontractors. 17 to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i SECTION 6. DEVELOPER'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review. The Developer agrees to comply with the following regulations insofar as they apply to the perfoiniance of this Agreement 6.01.1 Clean Air Act, 42, U.S.C., 1857, et seq. 6.01.2 Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended 1318 relating to inspection, monitoring entry, reports and information as well as other requirements specified in Section 114 and Section 308, and all regulations and guidelines issued thereunder. 6.01.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. 6.01.4 National Environmental Policy Act of 1969. 6.01.5 HUD Environmental Review Procedures (24 C.F.R. Part 58). 6.01.6 Flood Disaster Protection Act of 1973 (24 U.S.C. 4106 and P.L. 2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of the Agreement as it may apply to provisions of this Agreement. 6.01.7 Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Office for all rehabilitation and demolition of historic properties that are 45 years old or older or that are included on a Federal, State or local historic property list. 6.02 Uniform Relocation Act. The Developer shall comply with the applicable regulations of the Uniform Relocation Act of 1970, as amended (URA) (42 U.S.C. 4601-4655), or Section 104 (d) of the Housing and Community Development Act of 1974, as amended (Section 104 (d)), which require relocation assistance be provided to resident owners, tenants, businesses and other occupants that are displaced as a result of a federally-assisted project. In the event that the Developer or its agent displaces any tenant-occupant of the property, it shall immediately notify the City in writing of the circumstances surrounding said displacement and comply with 24 C.F.R. 92.353. 6.03 Soil Work Policy. The Developer and its contractors and subcontractors shall comply with the Soil Work Policy, if applicable, see Exhibit "M", which is incorporated herein by this reference as though fully set forth. 19 official or appointed official of the City or any designated public agencies or subrecipients which are receiving funds under the NSP. 18 employment practices, policies, programs and statistics of the Developer, contractor and his subcontractors. 17 to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i SECTION 7. RESPONSIBILITIES OF THE CITY. 7.01 Performance Monitoring. The City will monitor the performance standards of the Developer as stated herein. Substandard perfoiinance as determined by the City will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Developer within a reasonable period of time after being notified by the City, contract suspension or termination procedures may be initiated. 7.02 Payments. It is expressly agreed and understood that the total amount to be paid by the City under this Agreement shall not exceed $1,080,000.00 in NSP funds. The payment of these funds is subject to and conditioned upon actual receipt by the City of the same. Should adequate funding not be available to the City, the City shall notify the Developer as soon as reasonably possible and the Agreement will be terminated. 7.02.1 Funds Allocated to the Developer. Funds allocated to the Developer shall be in the form of a deferred payment loan for the purposes set forth in this Agreement. Payments will be contingent on Duties and Conditions specified herein. Drawdowns for the payment of eligible expenses shall not be made until the funds are needed based upon the value of the construction, administration, or professional services work completed at the time the payment request is made. 7.02.2 Obligation for Payment. In no event shall the City become obligated to make any payments for any work perfoinied, materials furnished, expense incurred, or any other expenditure of any kind whatsoever, unless same is expressly included in this Agreement, nor shall the City incur any liability hereunder, unless and until the Developer has timely and fully complied with its duties and obligations hereunder. No payments shall be made for any work, labor, material or expenses incurred the Director deems to be: 7.02.2.1 not in confoiniance with applicable state, federal and/or local laws, including but not limited to, the building, plumbing and/or electrical codes; or, 7.02.2.2 not in conformance with all plans, working drawings and/or specifications as approved. 7.02.2.3 unacceptable or substandard; or, 7.02.2.4 not in accordance with this Agreement or related contracts as approved for this Project. 7.03 Progress Payments. Progress payments and final payment, as may be authorized by the Director or his designated representative, are subject to: 20 lly set forth. 19 official or appointed official of the City or any designated public agencies or subrecipients which are receiving funds under the NSP. 18 employment practices, policies, programs and statistics of the Developer, contractor and his subcontractors. 17 to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 7.03.1 receipt, verification and approval of an AIA Document G702 "Application and Certificate for Payment" or comparable document, such document being prepared by the Developer's architect or authorized person and approved by the Developer and the City Construction Specialist before being submitted to the Planning Department for payment. All documents for each pay request submission must be forwarded directly to the Planning Department Construction Specialist assigned to the Project. This shall include all Application and Certificate for Payment (AIA Document G702 or comparable document) for the entire Project. This also includes pay requests that do not require City funds. 7.03.2 receipt of requisite financial status reports. 7.03.3 a 10% retainage of NSP funds, held by the City until all punch list items have been corrected to the satisfaction of the Developer and the City Construction Specialist assigned to this Project and Project Completion as described in Section 1.12 has been satisfied. 7.04 Inspections. The City may perform periodic inspections at any reasonable time to ensure compliance with this Agreement. The City shall perform final inspection to certify Project Completion prior to final disbursement of NSP proceeds. In addition, the City shall perform annual on-site inspections of Property from Project Completion through the fifteen (15) year Affordability Period to ensure compliance with property standards (24 C.F.R. 92.504 (d)(1)). 7.05 Technical Assistance. The Director shall assist the Developer in the same manner the Director provides technical assistance to other developers during the construction phase to ensure compliance with such housing quality standards, property rehabilitation standards and NDED Rehabilitation/Construction Standards. SECTION 8. MUTUAL AGREEMENTS BETWEEN CITY AND DEVELOPER 8.01 Release of Information Laws. The Developer specifically hereby states, agrees and certifies that it is familiar with the limited purpose set forth in the Federal Laws, Rules and Regulations, and in the laws of the State of Nebraska, for which personal information requested may be used and that the infoiination received will be used solely for those limited purposes and not to harass, degrade or humiliate any person. The information released shall be used for the limited purposes stated, and the Developer further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use by the Developer of information provided. 8.02 Applicable Laws. Parties to this Agreement shall conform with all existing and applicable City ordinances, resolutions, state laws, federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the term and the performance under this Agreement. 21 17 to the Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 8.03 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City agreement. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the Agreement voidable by the Mayor or Council. 8.04 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Developer shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Developer is an Independent Contractor. 8.05 Project Roles. The Developer shall ensure that the Project meets the objectives stated herein. The City has selected the Developer to assist in the Project since it is consistent with the Consolidated Plan. With respect to this Project, the City is not acting as the Developer's architect or engineer. The City makes no warranties, express or implied, as to the Construction Work. The City owes no duty to the Developer or any other persons that shall arise because of any inspection of the premises by the City's agents or employees. 8.06 Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. 8.07 Merger. This Agreement shall not be merged into any other oral or written agreement, lease or deed of any type. 8.08 Modification. This Agreement and any related documents securing the financing contain the entire agreement of the parties. No representations were made or relied upon by either party other than those that are expressly set forth herein. No agent, employee, or other representative of either party is empowered to alter any of the terms herein unless done in writing and signed by an authorized officer of the respective parties,pursuant to Section 10-142 of the Omaha Municipal Code. 8.09 Assignment. The Developer may not assign its rights or obligations under this Agreement without the express prior written consent of the City. 8.10 Strict Compliance. All provisions of this Agreement and each and every document that shall be attached shall be strictly complied with as written, and no substitution or change shall be made upon written direction from authorized representatives of the parties. 8.11 Termination. This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i account hereunder shall become the property of the City and shall be returned to the City. 8.12 Reversion of Assets. Upon the expiration of this Agreement, the Developer shall transfer to the City of Omaha any NSP funds on hand at the time of expiration and any accounts receivable attributable to the use of NSP funds (24 C.F.R. 92.504(c)(2)(vii)). 8.13 Indemnification. The Developer shall indemnify and hold the City harmless from and against: (1) any and all claims arising from contracts between the Developer and third parties made to effectuate the purposes of this Agreement; and, (2) any and all claims, liabilities or damages arising from the preparation or presentation of any of the work covered by this Agreement. 8.14 Unenforceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.15 Disclosure of Lobbying. The Developer shall certify and disclose, to the best of its knowledge and belief, that: 8.15.1 No federal appropriated funds have been paid or will be paid, by or on behalf of the Developer, to any person for influencing or attempting to influence 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 into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any federal contract, grant, loan, or cooperative agreement. 8.15.2 If any funds other than federal 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 of employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 8.16 Notices. The City and the Developer hereby expressly agree that for purposes of notice, including legal service or process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter, the following named individuals shall be authorized representatives of the parties: 1) City: City of Omaha Planning Department 1819 Farnam Street, Room 1111 Omaha, Nebraska 68183 2) Developer: Bethesda Homes, LLC, a Nebraska Limited Liability Company, Managing Member: Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, Joseph L. Shannon, Sr., President/CEO 5116 Terrace Drive Omaha Nebraska 68134 In the event the authorized representative changes during the term of this Agreement, prior written notice will be given to the respective party at the address noted above. 8.17 Applicability. This Agreement shall be binding upon the parties hereto and shall run with the Property. SECTION 9. DEFAULT PROVISIONS. 9.01 Remedies. If, through any cause, the Developer shall fail to fulfill in a timely and proper manner any obligations under this Agreement, or violate any of the covenants, representations or agreements hereof, the City may upon written notice terminate this Agreement or such parts thereof as to this Agreement, and may initiate foreclosure proceedings for any damages caused to the City by reasons of such default and termination. 9.02 Non-Recourse Repayable Loan. The Repayable Loan is a non-recourse loan; therefore, in the event of a default, the City shall rely solely upon the Property which is secured by the deed of trust which is the security for the non-recourse promissory note and will not initiate or participate in any claim or proceedings against the maker of the non-recourse promissory note or its members or partners (or officers, directors, or shareholders of any partner) for payment of any sum due under the non-recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below: c ATTEST:'` • CITY 0 i AHA: /,��, fib CI ERK OF THE Y OF OMAHA M 'OR OF E CITY OF OMAHA • BETHESDA HOMES, LLC, a Nebraska Limited Liability Company BY: BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION, INC., a Nebraska Non-profit Religious Corporation, Managing Member WIT SS: By: pZy �`'" Wt7PD Print Name: Y) ate VJoseph L. Shannon, Sr. Date Title: President/CEO APPR VELD S O F •lq•t0 ASSISTANT CITY T ORNEY Date 25 23, 2010 aln f e`nd March 22, 2015. . Resume is attached. Revised 03/99 SCHEDULE OF EXHIBITS Exhibit Agreement Location Description A 1.02 Bethesda Homes, LLC: Articles of Organization and Operating Agreement; Bethesda Urban Community Development Corporation, Inc: Articles of Incorporation, Bylaws and Board Members (Corporate • Resolution is not necessary as powers of the CEO are included in Articles) B 1.09, 3.02.11 Non-Recourse Repayable Loan Promissory . Note and Acknowledgement of Covenant Running With Land C 1.17 and 2.01.1 Median Family Income Chart, Fair Market Rents and HOME Program Rents, and Utility Allowances D 1.18 Definition—Program Income E 3.01.1, 5.01.1, OMB Circular A-110 5.01.2, 5.04, 5.05 F 3.01.10 Section 504 G 4.08 Davis-Bacon Wage Determination • Exemption H 4.10 Affirmative Marketing Policy I 5.01.2 OMB Circular A-133 J 5.01.3 OMB Circular A-122 K 5.03.2 Occupancy Report (Tenant Survey, Utility Allowance and Asset Forms) L 5.04 Financial Status Reports M 6.03 Soil Work Policy N 8.11 Termination—24 C.F.R. 85.43—85.44 ATTACHMENTS: 1. NDED Contract No. 0910S23, CFDA# 14.228 2 City of Omaha Definition of Income 3 Equal Employment Opportunity Clause 4 Section 3 Clause 5 Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist in the amount of$1,080,000.00 for seven (7) houses 8 Environmental/Historical Review 9 United States Citizenship Attestation pl nlsf1376-agreemen t 26 against the maker of the non-recourse promissory note or its members or partners (or officers, directors, or shareholders of any partner) for payment of any sum due under the non-recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i x 1 b►A- „A STATE OF NEBRASKA ♦ SECRETARY OF STATE'S OFFICE 1445 "K" STREET • STATE CAPITOL SUITE 1301 • LINCOLN, NE • 68509 BUSINESS SERVICES DIVISION CORPORATIONS UNIFORM COMMERCIAL CODE NOTARY P.O.BOX 94608 P.O.BOX 95104 P.O.BOX 95104 (402)471-4079 (402)471-4080 (402)471-2558 FAX:471-3666 FAX:471-4429 FAX:471-4429 JOHN A. GALE www.sos.state.ne.us JUDY JOBMAN Secretary of State Deputy Secretary of State CLINE WILLIAMS 1900 US BANK BLDG. 233 SOUTH 13TH STREET LINCOLN,NE 68508 March 15,2010 ACKNOWLEDGEMENT OF FILING The document(s)listed below were filed with the Nebraska Secretary of State's Office, Corporation Division. A label has been affixed to each filing signifying the filing stamp for the Nebraska Secretary of State's Office, Corporation Division. This filing label indicates the date and time of the filing and also references a document number that can be used to reference this filing in the future. Please remember it is your responsibility to notify the Secretary of State's office of any change(s)in the information you filed. ACKNOWLEDGEMENT OF FILING FEES RECEIVED Action/Service Company/Entity Name Fee Received Articles T.imited BETHESDA HOMES,LLC 100.00 Per Page Charge BETHESDA HOMES,LLC 15.00 Certificate BETHESDA HOMES,LLC 10.00 Total Fees Received $125.00 Adam Pedersen Filing Officer Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist in the amount of$1,080,000.00 for seven (7) houses 8 Environmental/Historical Review 9 United States Citizenship Attestation pl nlsf1376-agreemen t 26 against the maker of the non-recourse promissory note or its members or partners (or officers, directors, or shareholders of any partner) for payment of any sum due under the non-recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i STATE OF NEBRASKA ,/4.4, CfI ' 6 met, United States of America, lt'itoim�,/,/r��11 Department of State State of Nebraska ss' Lincoln,Nebraska • I, John A. Gale, Secretary"of State of Nebraska°`do hereby certify, of •;m , 1 5 'a\'' the attached-is°a truer and:cor+rect copy of the Articles•of Organization of / ,�\ v�BETHESDA DOMES LLC: -`,J ' with its,registered office'located in LINCOLN, Nebraska, as filed in this office on March-15,2010 ;''' •;:,/ / f j; fI� n� /, 5 • / 'r,V' t- i t f / Y 1- ii T 'C r ) / J V.i J t t 3 In Testimony Whereof,, .; ' I-have hereunto sets my-handand •1/4`' °'�1l ' , ,•affixed the Great Seal of,the State . of Nebraska on'Marchj`15 2010. , I I `''''' ., !---1 ete&, .. `'` ' _�gE STAe:1,‘,, �'•..' �4 ° �ioe "7 (SECRETARY OF STATE �/v v o oo eoQu°O� '/ <:/:;on =�- g . 4.. - Bd • lo .1` o \ This certificate is not to be construed as an endorsement, eta� ° f 11 = recommendation, or notice of approval of the entity's `': �!1\\AAA sz H 1- i.'i_ financial condition or business activities and practices. IVVV\N i Fees Received $125.00 Adam Pedersen Filing Officer Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist in the amount of$1,080,000.00 for seven (7) houses 8 Environmental/Historical Review 9 United States Citizenship Attestation pl nlsf1376-agreemen t 26 against the maker of the non-recourse promissory note or its members or partners (or officers, directors, or shareholders of any partner) for payment of any sum due under the non-recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • NE Sec of State John R Gala - CORP • 11111111IIIII11111111111111111111I1111 BETHESDA HOMES, LLC �`Fil.ed__03115f2010.,04;i1PM ARTICLES OF ORGANIZATION OF BETHESDA HOMES, LLC The undersigned, acting as organizer of Bethesda Homes, LLC, under the Nebraska Limited Liability Company Act, Neb. Rev. Stat. 21-2601 et seq., as amended, adopts the following Articles of Organization: I. NAME OF COMPANY The name of the limited liability company is Bethesda Homes, LLC (the "Company"). If. PERIOD OF DURATION The period of duration shall be perpetual from the date of filing of these Articles of Organization with the Nebraska Secretary of State,unless the Company is sooner dissolved. III. PURPOSE The Company is organized for the purpose of engaging in any legal and lawful activity incident thereto allowed pursuant to the Nebraska Limited Liability Company Act. IV. PRINCIPAL OFFICE, REGISTERED OFFICE AND AGENT The Company's principal place of business in Nebraska is at the address of its registered agent. The name and address of the initial registered agent is as follows: Thomas C. Huston 233 S 13th Street, Suite 1900 Lincoln, NE 68508 1161407.1 the entity's `': �!1\\AAA sz H 1- i.'i_ financial condition or business activities and practices. IVVV\N i Fees Received $125.00 Adam Pedersen Filing Officer Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist in the amount of$1,080,000.00 for seven (7) houses 8 Environmental/Historical Review 9 United States Citizenship Attestation pl nlsf1376-agreemen t 26 against the maker of the non-recourse promissory note or its members or partners (or officers, directors, or shareholders of any partner) for payment of any sum due under the non-recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • V. MEMBERS; CONTRIBUTIONS The Members of the Company shall be those persons and entities identified in the Operating Agreement. The total amount of cash contributed to stated capital by the Members is the amount set forth in the opening balance sheet of the Company as prepared by Company's accountants, which amount is $100. The Members have not agreed to make any additional contributions, but may agree to do so in the future upon the terms and conditions set forth in the Operating Agreement. Additional rights and preferences of the Members are set forth in the Operating Agreement. VI. ADDITIONAL MEMBERS The Members reserve the right to admit additional Members upon the unanimous agreement of the Members as to the admission of, and the consideration to be paid by, such new Members, and subject to the terms and conditions of the Company's Operating Agreement. VII. OPERATING AGREEMENT The Operating Agreement of the Company shall be executed by each Member of the Company and shall set forth all provisions for the affairs of the Company and the conduct of its business to the extent that such provisions are not inconsistent with law or these Articles. VIII. LIABILITIES OF MEMBERS AND MANAGERS Members and Managers of the Company are not liable under a judgment, decree or order of a court, or in any other manner, for a debt, obligation or liability of the Company. A Member, Manager, or former Member or Manager of the pan y Company shall be indemnified by the Company against expenses actually and reasonably incurred in connection with the defense and settlement of any civil or criminal action, suit, or proceeding in which he or she is made a party by reason of being or having been a Member or Manager except in matters as to which he or she is adjudged liable in the action, suit, or proceeding for gross negligence, reckless disregard of duty, knowing violation of law, or breach of a fiduciary duty, j I 1161407.1 -2- recourse promissory note or any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i or any other act for which indemnification is denied by a vote of a majority in interest of all Members, regardless of whether such Members have the right to vote for the election of Managers. In addition, the Company shall indemnify any other person as set forth in the Operating Agreement. IX. MANAGERS The business and affairs of the Company shall be managed by its Managing Member. The name and business address of the initial Managing Member is: Bethesda Urban Community Development Corporation 5116 Terrace Drive Omaha, NE 68134 The Managers shall be selected by the Members as provided in the Operating Agreement. IN WITNESS WHEREOF, the undersigned has caused these Articles of Organization to be executed this 15th day of March, 2010 Thomas C. Huston, Organizer 1161407.1 -3- a OPERATING AGREEMENT OF BETHESDA HOMES, LLC A NEBRASKA LIMITED LIABILITY COMPANY Dated March i7, 2010 OPERATING AGREEMENT 1161420.1 4 shall indemnify any other person as set forth in the Operating Agreement. IX. MANAGERS The business and affairs of the Company shall be managed by its Managing Member. The name and business address of the initial Managing Member is: Bethesda Urban Community Development Corporation 5116 Terrace Drive Omaha, NE 68134 The Managers shall be selected by the Members as provided in the Operating Agreement. IN WITNESS WHEREOF, the undersigned has caused these Articles of Organization to be executed this 15th day of March, 2010 Thomas C. Huston, Organizer 1161407.1 -3- OF BETHESDA HOMES, LLC • A NEBRASKA LIMITED LIABILITY COMPANY ARTICLE I DEFINITIONS • The following terms used in this Operating Agreement shall have the following meanings (unless otherwise expressly provided herein); (a) "Articles of Organization" shall mean the Articles of Organization of Bethesda Homes, LLC, as filed with the Secretary of State of Nebraska as the same may be amended from time to time. (b) "Capital Account" as of any given date shall mean the Capital Contribution to the Company by a Member as adjusted up to the date in question pursuant to Article VIII hereof. (c) "Capital Contribution" shall mean any contribution to the capital of the Company in cash or property by a Member whenever made. "Initial Capital Contribution"shall mean the initial contribution in cash or property to the capital of the Company by a Member pursuant to this Operating Agreement and as set forth in Appendix A, attached hereto and incorporated by reference herein. (d) "Capital Interest" shall mean the proportion that a Member's positive Capital Account bears to the aggregate positive Capital Accounts of all Members whose Capital Accounts have positive balances,as may be adjusted from time to time. (e) "Code" shall mean the Internal Revenue Code of 1986, or corresponding provisions of subsequent superseding federal revenue laws. (#) "Company" shall refer to Bethesda Homes, LLC. (g) "Deficit Capital Account" shall mean with respect to any Member, the deficit balance, if any, in such Member's Capital Account as of the end of the taxable year, after giving effect to the following adjustments: (i) credit to such Capital Account any amount which such Member is obligated to restore under Section 1.704-1(b)(2)(ii)(c) of the Regulations, as well as any addition thereto pursuant to the next to last sentence of Sections 1.704-2(g)(1) and (i)(5) of the Regulations, after taking into account thereunder any changes during such year in partnership 1161420.1 -2- any other sum due under the deed of trust. 24 contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i minimum gain (as determined in accordance with Section 1.704-2(d) of the Regulations) and in the minimum gain attributable to any partner nonrecourse debt (as determined under Section 1.704-2(i) (3) of the Regulations); and (ii) debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations. This definition of Deficit Capital Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and 1.704-2, and will be interpreted consistently with those provisions. (h) "Distributable Cash" means all cash, revenues and funds received by the Company from Company operations, less the sum of the following to the extent paid or set aside by the Company: (i) all principal and interest payments on indebtedness of the Company and all other sums paid to lenders; (ii) all cash expenditures incurred incident to the normal operation of the Company s business; (iii) such Reserves as the Manager deems reasonably necessary to the proper operation of the Company's business. (i) "Economic Interest" shall mean a Member's or Economic Interest Owner's share of the Company's Net Profits, Net Losses and distributions of the Company's assets pursuant to this Operating Agreement and the Nebraska Act, but shall not include any right to participate in the management or affairs of the Company, including the right to vote on, consent to or otherwise participate in any decision of the Members or Manager. (j) "Economic Interest Owner" shall mean the owner of an Economic Interest who is not a Member. (k) "Entity" shall mean any general partnership, limited partnership, limited liability company, corporation,joint venture, trust, business trust, cooperative or association or any foreign trust or foreign business organization. (1) "Fiscal Year" shall mean the Company's fiscal year,which shall be the calendar year. (m) "Gifting Member"shall mean any Member or Economic Interest Owner who gifts, bequeaths or otherwise transfers for no consideration (by operation of law or otherwise, except with respect to bankruptcy) all or any part of its Membership Interest or Economic Interest. 1161420.1 -3- orm- LLL, "Disclosure Foiiii to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i • (n) "Majority Interest" shall mean one or more Membership Interests of Members which taken together exceed 50% of the aggregate of all Capital Interests. (o) "Manager" shall mean one or more of the Members. References to the Manager in the singular or as him, her, it, itself, or other like references shall also, where the context so requires, be deemed to include the plural or the masculine or feminine reference, as the case may be. (p) "Member" shall mean each of the parties who executes a counterpart of this Operating Agreement as a Member and any other party who may hereafter become a Member. To the extent a Manager has purchased Membership Interests in the Company, he/she will have all the rights of a Member with respect to such Membership Interests. The term "Member," as used herein, shall include a Manager to the extent he! she has purchased such Membership Interests in the Company. If a Person is a Member immediately prior to the purchase or other acquisition by such Person of an Economic Interest, such Person shall have all the rights of a Member with respect to such purchased or otherwise acquired Membership Interest or Economic Interest,as the case may be. (q) "Membership Interest" shall mean a Member's entire interest in the Company including such Member's Economic Interest and the right to participate in the management of the business and affairs of the Company, including the right to vote on, consent to, or otherwise participate in any decision or action of or by the Members granted pursuant to this Operating Agreement and the Nebraska Act. (r) "Minority Interest Member" shall mean a Member whose Membership Interest in the Company is less than 50% of the aggregate of all Capital Interests. (s) "Nebraska Act" shall mean the Nebraska Limited Liability Company Act at Neb. Rev. Stat. § 21-2601 et seq. (t) "Net Profits"and"Net Losses"shall mean the income,gain,loss, deductions and credits of the Company in the aggregate or separately stated, as appropriate, determined in accordance with the accounting principles employed under the cash method of accounting at the close of each fiscal year on the Company's information tax return filed for federal income tax purposes. (u) "Operating Agreement" shall mean this Operating Agreement as originally executed and as amended from time to time. 1161420.1 -4- on shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (v) "Persons" shall mean any individual or Entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such "Person" where the context so permits. (w) "Regulations" shall include proposed, temporary and final regulations promulgated under the Code in effect as of the date of filing the Articles of Organization and the corresponding sections of any regulations subsequently issued that amend or supersede such regulations. (x) "Reserves" shall mean, with respect to any fiscal period, funds set aside or amounts allocated during such period to reserves which shall be maintained in amounts deemed sufficient by the Manager for working capital and to pay taxes, insurance, debt service or other costs or expenses incident to the ownership or operation of the Company's business. (y) "Selling Member"shall mean any Member of Economic Interest Owner which sells, assigns, or otherwise transfers for consideration all or any portion of its Membership Interest or Economic Interest. (z) "Transferring Member"shall collectively mean a Selling Member and a Gifting Member. ARTICLE II FORMATION OF COMPANY 2.01 Formation. On March /.?, 2010, Thomas C. Huston organized a Nebraska limited liability company by executing and delivering the Articles of Organization to the Nebraska Secretary of State in accordance with and pursuant to the Nebraska Act. 2.02 Name. The name of the Company is Bethesda Homes, LLC. 2.03 Principal Place of Business. The initial principal place of business of the Company within the State of Nebraska shall be 2123 Miami Street, Omaha NE 68110. The Company may locate its place of business at any other place or places as the Manager may from time to time deem advisable. 2.04 Registered Office and Registered Agent. The Company's initial registered office shall be located at 233 South 13"' Street, Suite 1900, Lincoln, Nebraska 68508. The name of the initial registered agent at such office is Thomas C. Huston. The registered office and registered agent may be changed from time to time by filing the address of the new registered office and/or the name of the new registered agent with the Nebraska Secretary of State pursuant to the Nebraska Act. 1161420.1 -5- reement" shall mean this Operating Agreement as originally executed and as amended from time to time. 1161420.1 -4- on shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 2.05 Term. The Company shall have perpetual duration. The Company's operations will commence on the date of filing of Articles of Organization with the Nebraska Secretary of State, and will terminate when the Company is dissolved in accordance with either the provisions of this Operating Agreement or the Nebraska Act. ARTICLE III BUSINESS OF COMPANY 3.01 Permitted Businesses. The business of the Company shall be to engage in all lawful business and enterprise and shall include the power to: (a) Accomplish any lawful business whatsoever, or which shall at any time appear conducive to or expedient for the protection or benefit of the P Company and its assets. (b) Exercise all other powers necessary to or reasonably connected with the Company's business which may be legally exercised by limited liability companies under the Nebraska Act. (c) Engage in all activities necessary, customary, convenient, or incident to any of the foregoing. ARTICLE IV NAMES AND ADDRESSES OF INITIAL MEMBERS The names and addresses of the initial Members of the Company are set forth in Appendix A, attached to and incorporated in this Operating Agreement. ARTICLE V RIGHTS AND DUTIES OF MANAGER 5.01 Management. The business and affairs of the Company shall be managed by its Managing Member ("Manager"), who, at least initially, shall be its Member,who may appoint such officers and agents as they from time to time shall deem appropriate under the circumstances. The Manager shall direct the officers, and manage and control the business of the Company to the best of their ability. Except for situations in which the approval of the Members is expressly required by this Operating Agreement or by nonwaivable provisions of applicable law, the Manager shall have full and complete authority, power and discretion to manage 1361420.1 -6- Street, Suite 1900, Lincoln, Nebraska 68508. The name of the initial registered agent at such office is Thomas C. Huston. The registered office and registered agent may be changed from time to time by filing the address of the new registered office and/or the name of the new registered agent with the Nebraska Secretary of State pursuant to the Nebraska Act. 1161420.1 -5- reement" shall mean this Operating Agreement as originally executed and as amended from time to time. 1161420.1 -4- on shall be included in the award documents for all sub-awards at all tiers, (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i and control the business, affairs and properties of the Company, to make all decisions regarding those matters and to perform any and all other acts or activities customary or incident to the management of the Company's business, including the hiring of employees, determining salaries and benefits and entering into any contracts or agreements necessary and appropriate in their discretion to carry out the business of the Company. At any time when there is more than one Manager, any one Manager may take any action permitted to be taken by the Manager, unless the approval of more than one of the Manager is expressly required pursuant to this Operating Agreement or the Nebraska Act. 5.02 Certain Powers of Manager. Without limiting the generality of Section 5.01, the Manager shall have power and authority, on behalf of the Company: (a) To acquire property from any Person as the Manager may determine. The fact that a Manager or a Member is directly or indirectly affiliated or connected with any such Person shall not prohibit the Manager from dealing with that Person; (b) To borrow money for the Company from banks, other lending institutions, the Manager, Members, or affiliates of the Manager or Members on such terms as the Manager deems appropriate, and in connection therewith, to hypothecate, encumber and grant security interests in the assets of the Company to secure repayment of the borrowed sums. No debt shall be contracted or liability incurred by or on behalf of the Company except by the Manager, or to the extent permitted under the Nebraska Act, by agents or employees of the Company expressly authorized to contract such debt or incur such liability by the Manager; (c) To purchase liability and other insurance to protect the Company's property and business; (d) To hold and own any Company real and/or personal properties in the name of the Company; (e) To invest any Company funds temporarily (by way of example but not limitation) in time deposits, short-term governmental obligations, commercial paper or other investments; (f) Upon the affirmative vote of the Members holding at least a majority of all Capital Interests, to sell or otherwise dispose of all or substantially all of the assets of the Company as part of a single transaction or plan so long as such disposition is not in violation of or a cause of a default under any other agreement to which the Company may be bound, provided, however, that the affirmative vote of the Members shall not be required with respect to any sale or 1161420.1 -7- ts, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i disposition of the Company's assets in the ordinary course of the Company's business; (g) To execute on behalf of the Company all instruments and documents, including, without limitation, checks; drafts; notes and other negotiable instruments; mortgages or deeds of trust; security agreements; financing statements; documents providing for the acquisition, mortgage or disposition of the Company s property; assignments; bills of sale; leases; partnership agreements;operating agreements of other limited liability companies; and any other instruments or documents necessary, in the opinion of the Manager, to the business of the Company; (h) To employ officers,accountants,legal counsel,managing agents or other experts to perform services for the Company and to compensate them from Company funds; (i) To enter into any and all other agreements on behalf of the Company, with any other Person for any purpose, in such forms as the Manager may approve; and (j) To do and perform all other acts as may be necessary or appropriate to the conduct of the Company's business. Unless authorized to do so by this Operating Agreement or by the Manager of the Company, no attorney-in-fact, employee or other agent of the Company shall have any power or authority to bind the Company in any way, to pledge its credit or to render it liable pecuniarily for any purpose. 5.03 Liability for Certain Acts. Each Manager shall perform his duties as Manager in good faith, in a manner he reasonably believes to be in the best interests of the Company, and with such care as an ordinarily prudent person in a like position would use under similar circumstances. A Manager who so performs the duties as Manager shall not have any liability by reason of being or having been a Manager of the Company. The Manager does not, in any way, guarantee the return of the Members' Capital Contributions or a profit for the Members from the operations of the Company. The Manager shall not be liable to the Company or to any Member for any loss or damage sustained by the Company or any Member, unless the loss or damage shall have been the result of fraud, deceit, gross negligence, willful misconduct, knowing violation of law or a wrongful taking by the Manager. 5.04 Manager Has No Exclusive Duty to Company. The Manager shall not be required to manage the Company as his sole and exclusive function and he (or any Manager) may have other business interests and may engage in other activities in addition to those relating to the Company. Neither the Company nor 1161420.1 -8- erative agreements) and that all subrecipients shall certify and disclose accordingly. 23 This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "N", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any 22 Developer. 14 ndant THIS APPLICATION. 5 COURT BOND Name and address of attorney If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i any Member shall have any right, by virtue of this Operating Agreement, to share or participate in such other investments or activities of the Manager or to the income or proceeds derived therefrom. The Manager shall incur no liability to the Company or to any of the Members as a result of engaging in any other business or venture. 5.05 Bank Accounts. The Manager may from time to time open bank accounts in the name of the Company, and the Manager shall be the sole signatories thereon, unless the Manager determine otherwise. 5.06 Indemnity of the Manager, Employees and Other Agents. To the maximum extent permitted under Section 21-2603 of the Nebraska Act, the Company shall indemnify the Manager, Members, Officers, Agents or former Manager, Members, Officers or Agents or any other person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit or proceedings,whether civil,criminal, administrative or investigative, other than an action by or in the right of the Company, by reason of the fact that he or she is or was a Manager, Member, Employee, or Agent of the Company, or is or was serving at the request of the Company as a Director, Officer, Manager, Member, Employee, or Agent of another company, corporation, partnership,joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nob contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. The Company shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that he or she is or was a Manager, Member, Employee, or Agent of the Company, or is or was serving at the request of the Company as a Director, Officer, Manager, Member, Employee or Agent of another company, corporation, partnership,joint venture, trust or other enterprise, against expenses, including attorneys'fees, actually and reasonably incurred by him or her in connection with the defense or settlement of such action or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his or her duty to the Company unless and only to the extent that the court in which such action or suit was brought shall determine upon application that despite the adjudication of liability but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. To the extent that a Manager, Member, Employee or Agent of the Company f has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to above or in defense of any claim, issue or matter therein, he or she shall be indemnified against expenses, including attorneys' fees, actually and reasonably incurred by him or her in connection therewith. Any indemnification above unless ordered by a court, shall be made by the Company only as authorized in the specific case upon a determination that indemnification of a Manager, Member, Employee, or Agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth above. Such determination shall be made by the Manager. Expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Company in advance of the final disposition of such action, suit or proceeding as authorized in the manner provided herein upon receipt of an undertaking by or on behalf of a Manager, Member, Employee, or Agent to repay such amount unless it shall ultimately be determined that he or she is entitled to be indemnified by the Company as authorized in this paragraph. No provision for the Company to indemnify a person who is made a party to a proceeding, whether contained in the Articles of Organization, the Bylaws, a resolution of members, an agreement, or otherwise, shall be valid unless • consistent with this Agreement. Nothing contained in this Agreement shall limit the Company's ability to reimburse expenses incurred by a Manager in connection with his or her appearance as a witness in a proceeding at a time when he or she has not been made a named defendant or respondent in the proceeding. For purposes of this Agreement, (i) the Company shall be deemed to have requested a Manager to serve an employee benefit plan when the performance by him or her of his or her duties to the company also imposes duties on, or otherwise involves services by him or her to the plan or participants or beneficiaries of the plan, (ii) excise taxes assessed on a Manager with respect to an employee benefit plan pursuant to applicable law shall be deemed fines, and (iii) action taken or omitted by a Manager with respect to an employee benefit plan in the performance of his or her duties for a purpose reasonably believed by him or her to be in the best interest of the participants and beneficiaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i shall be deemed to be for a purpose which is not opposed to the best interests of the Company The Company shall have the power to purchase and maintain insurance on behalf of any person who is or was a Manager, Member, Employee or Agent of the Company, or is or was serving at the request of the company as a Manager, Member, Employee or Agent of another company, corporation, partnership,joint venture, trust, or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under the provisions of this section. Any indemnification of a Manager, Member, Employee or Agent in accordance with this Agreement, including any payment or reimbursement of expenses, shall be reported in writing to the Member with the notice of the next Members' meeting or prior to such meeting. 5.07 Salaries. The salaries and other compensation of the Manager shall be fixed from time to time by the written agreement of a majority in interest of the Members, and no Manager shall be prevented from receiving such salary by reason of the fact that he is also a Member of the Company. ARTICLE VI RIGHTS AND OBLIGATIONS OF MEMBERS 6.01 Limitation of Liability. Each Member's liability shall be limited as set forth in this Operating Agreement, the Nebraska Act and other applicable law. 6.02 Company Debt Liability. A Member will not be personally liable for any debts or losses of the Company beyond his respective Capital Contributions and any obligation of the Member under Section 8.01 or 8.02 to make Capital Contributions, except as provided in Section 6.07 herein or as otherwise required by law. 6.03 List of Members. Upon written request of any Member, the Manager shall provide a list showing the names, addresses and Membership Interests and Economic Interests of all Members. 6.04 Approval of Sale of All Assets. The Members shall have the right, by the affirmative•vote of Members holding at least a majority of all Capital Interests, to approve the sale, exchange or other disposition of all, or substantially all,of the Company's assets (other than in the ordinary course of the Company's business) which is to occur as part of a single transaction or plan. 1161420.1 -1 1- er of his or her duties to the company also imposes duties on, or otherwise involves services by him or her to the plan or participants or beneficiaries of the plan, (ii) excise taxes assessed on a Manager with respect to an employee benefit plan pursuant to applicable law shall be deemed fines, and (iii) action taken or omitted by a Manager with respect to an employee benefit plan in the performance of his or her duties for a purpose reasonably believed by him or her to be in the best interest of the participants and beneficiaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 6.05 Company Books. In accordance with Section 9.09 herein, the Manager shall maintain and preserve, during the term of the Company, and for five (5) years thereafter, all accounts, books, and other relevant Company documents. 6.06 Priority and Return of Capital. Except as may be expressly provided in Article IX, no Member or Economic Interest Owner shall have priority over any other Member or Economic Interest Owner, either as to the return of Capital Contributions or as to Net Profits, Net Losses or distributions; provided that this Section shall not apply to loans (as distinguished from Capital Contributions) which a Member has made to the Company. 6.07 Liability of a Member to the Company. (a) A Member who rightfully receives the return in whole or in part of its contribution (as defined in Section 21.-2619 of the Nebraska Act) is nevertheless liable to the Company only to the extent now or hereafter provided by the Nebraska Act. (b) A Member who receives a distribution made by the Company: (i) which is either in violation of this Operating Agreement, or (ii) when the Company's liabilities exceed its assets (after giving effect to the distribution), is liable to the Company for a period of six years after such distribution for the amount of the distribution. 6.08 Rights of Members. The Members shall have the voting rights as set forth in this Agreement and any voting rights granted to Members generally under the Nebraska Act. ARTICLE VII MEETINGS OF MEMBERS 7.01 Annual Meeting. The annual meeting of the Members shall be held in the month of March of each year at such time as shall be determined by the Manager, commencing with the year 2011 for the purpose of the transaction of such business as may come before the meeting. 1161420.1 -12- t showing the names, addresses and Membership Interests and Economic Interests of all Members. 6.04 Approval of Sale of All Assets. The Members shall have the right, by the affirmative•vote of Members holding at least a majority of all Capital Interests, to approve the sale, exchange or other disposition of all, or substantially all,of the Company's assets (other than in the ordinary course of the Company's business) which is to occur as part of a single transaction or plan. 1161420.1 -1 1- er of his or her duties to the company also imposes duties on, or otherwise involves services by him or her to the plan or participants or beneficiaries of the plan, (ii) excise taxes assessed on a Manager with respect to an employee benefit plan pursuant to applicable law shall be deemed fines, and (iii) action taken or omitted by a Manager with respect to an employee benefit plan in the performance of his or her duties for a purpose reasonably believed by him or her to be in the best interest of the participants and beneficiaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 7.02 Special Meetings. Special meetings of the Members, for any purpose or purposes, unless otherwise prescribed by statute, may be called by any Manager or Member. 7.03 Place of Meetings. The Members may designate any place, either within or outside the State of Nebraska, as the place of meeting for any meeting of the Members. If no designation is made, or if a special meeting be otherwise called, the place of meeting shall be the principal executive office of the Company in the State of Nebraska. 7.04 Notice of Meetings. Except as provided in Section 7.05,written notice stating the place, day and hour of the meeting and the purpose or purposes for which the meeting is called shall be delivered not less than 10 nor more than 30 days before the date of the meting, either personally or by mail, by or at the direction of the Manager or person calling the meeting, to each Member entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered two calendar days after being deposited in the United States mail, addressed to the Member at its address as it appears on the books of the Company, with postage thereon prepaid. 7.05 Meeting of all Members. If all of the Members shall meet at any time and place, either within or outside of the State of Nebraska, and consent to the holding of a meeting at such time and place, such meeting shall be valid without call or notice, and at such meeting lawful action may be taken. 7.06 Record Date. For the purpose of determining Members entitled to notice of or to vote at any meeting of Members or any adjournment thereof, or Members entitled to receive payment of any distribution, or in order to make a determination of Members for any other purpose, the date on which notice of the meeting is mailed or the date on which the resolution declaring such distribution is adopted, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Section, such determination shall apply to any adjournment thereof. 7.07 Quorum. Members holding at least a majority of all Capital Interests, represented in person or by proxy., shall constitute a quorum at any meeting of Members. In the absence of a quorum at any such meeting, a majority of the Capital Interests so represented may adjourn the meeting from time to time for a period not to exceed 60 days without further notice. However, if the adjournment is for more than 60 days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each Member of record entitled to vote at the meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally noticed. The 1161420.1 -1 3- iaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Members present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal during such meeting of that number of Capital Interests whose absence would cause less than a quorum. 7.08 Mariner of Acting. If a quorum is present, the affirmative vote of Members holding a Majority Interest shall be the act of the Members, unless the vote of a greater or lesser proportion or number is otherwise required by the Nebraska Act, by the Articles of Organization, or by this Operating Agreement. Unless otherwise expressly provided herein or required under applicable law, Members who have an interest (economic or otherwise) in the outcome of any particular matter upon which the Members vote or consent may vote or consent upon any such matter and their Capital Interest,vote or consent, as the case may be, shall be counted in the determination of whether the requisite matter was approved by the Members. 7.09 Proxies. At all meetings of Members a Member may vote in person or by proxy executed in writing by the Member or by a duly authorized attorney-in- fact. Such proxy shall be filed with the Manager of the Company before or at the time of the meeting. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy. 7.10 Action by Members Without a Meeting. Action required or permitted to be taken at a meeting of Members may be taken without a meeting if the action is evidenced by one or more written consents describing the action taken, signed by each Member entitled to vote and delivered to the Manager of the Company for inclusion in the minutes or for filing with the Company records. Action taken under this Section is effective when all Members entitled to vote have signed the consent, unless the consent specifies a different effective date. The record date for determining Members entitled to take action without a meeting shall be the date the first Member signs a written consent. 7.11 Waiver of Notice. When any notice is required to be given to any Member, a waiver thereof in writing signed by the person entitled to such notice, whether before, at, or after the time stated therein, shall be equivalent to the giving of such notice. ARTICLE VIII CONTRIBUTIONS TO THE COMPANY AND CAPITAL ACCOUNTS 8.01 Members' Capital Contributions. Each initial Member shall contribute such amount as is set forth in Appendix A hereto as its or their share of the initial Capital Contribution. If property is contributed in lieu of cash, such Member contributing property shall execute and deliver to the Company a form 1161420.1 -14- er of record entitled to vote at the meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally noticed. The 1161420.1 -1 3- iaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i of assignment transferring the Property referenced in the assignment to the Company. 8.02 Additional Contributions. Except as set forth in Section 8.01, no Member shall be required to make any additional Capital Contributions. To the extent approved by the Manager, from time to time, the Members may be permitted to make additional Capital Contributions if and to the extent they so desire, and if the Manager determines that such additional Capital Contributions are necessary or appropriate in connection with the conduct of the Company s business (including without limitation, expansion or diversification). In such event, each Member shall have the opportunity (but not the obligation) to participate in such additional Capital Contributions on a pro rata basis in proportion to the ratio which the Economic Interests and Membership Interests they own immediately prior to such Capital Contribution bears to the aggregate Economic Interests and Membership Interests then held by all Members and Economic Interest Holders. 8.03 Capital Accounts. (a) A separate Capital Account will be maintained for each Member. Each Member's Capital Account will be increased by (1) the amount of money contributed by such Member to the Company; (2) the fair market value of property contributed by such Member to the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to Section 752 of the Code); (3) allocations to such Member of Net Profits and Net Losses; and (4) allocations to such Member of income described in Section 705(a)(1)(B) of the Code. Each Member's Capital Account will be decreased by (1) the amount of money distributed to such Member by the Company; (2) the fair market value of property distributed to such Member by the Company (net of liabilities secured by such distributed property that such Member is considered to assume or take subject to Section 752 of the code); (3) allocations to such Member of expenditures described in Section 705(a)(2)(B) of the Code; and (4) allocations to the account of such Member of Company loss and deduction as set forth in such Regulations, taking into account adjustments to reflect book value. (b) In the event of a permitted sale or exchange of a Membership Interest or an Economic Interest in the Company, the Capital Account of the transferor shall become the Capital Account of the transferee to the extent it relates to the transferred Membership Interest or Economic Interest in accordance with Section 1.704-1(b)(2)(iv) of the Regulations. (c) The manner in which Capital Accounts are to be maintained pursuant to this Section 8.03 is intended to comply with the requirements of Section 704(b) of the Code and the Regulations promulgated thereunder. If in the opinion of the Company's accountants,tax advisors and legal counsel the manner 1161420.1 -15- -1 3- iaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i in which Capital Accounts are to be maintained pursuant to the preceding provisions of this Section 8.03 should be modified in order to comply with Section 704(b). of the Code and the Regulations thereunder, then notwithstanding anything to the contrary contained in the preceding provisions of this Section 8.03, the method in which Capital Accounts are maintained shall be so modified; provided, however, that any change in the manner of maintaining Capital Accounts shall not materially alter the economic agreement between or among the Members. (d) Upon liquidation of the Company(or any Member's Membership Interest or Economic Interest Owner's Economic Interest), liquidating distributions will be made in accordance with the positive Capital Account balances of the Members and Economic Interest Owners, as determined after taking into account all Capital Account adjustments for the Company's taxable year during which the liquidation occurs. Liquidation proceeds will be paid within sixty days of the end of the taxable year(or, if later, within 120 days after the date of the liquidation). The Company may offset damages for breach of this Operating Agreement by a Member or Economic Interest Owner whose interest is liquidated (either upon the withdrawal of the Member or the liquidation of the Company) against the amount otherwise distributable to such Member. (e) Except as otherwise required in the Nebraska Act (and subject to Section 8.01 and 8.02), no Member or Economic Interest Owner shall have any liability to restore all or any portion of a deficit balance in such Member's or Economic Interest Owner's Capital Account. 8.04 Withdrawal or Reduction of Members' Contributions to Capital. (a) A Member shall not receive out of the Company's property any part of its Capital Contribution until all liabilities of the Company, except liabilities to Members on account of their Capital Contributions, have been paid or there remains property of the Company sufficient to pay them. (b) A Member,irrespective of the nature of its Capital Contribution, has only the right to demand and receive cash in return for his or her Capital Contribution. ARTICLE IX ALLOCATIONS, INCOME TAX, DISTRIBUTIONS, ELECTIONS AND REPORTS 9.01 Allocations of Profits and Losses from Operations. The Net Profits and Net Losses of the Company for each fiscal year will be allocated in proportion to the Capital Accounts of the Members. 1161420.1 -1 6- )(2)(iv) of the Regulations. (c) The manner in which Capital Accounts are to be maintained pursuant to this Section 8.03 is intended to comply with the requirements of Section 704(b) of the Code and the Regulations promulgated thereunder. If in the opinion of the Company's accountants,tax advisors and legal counsel the manner 1161420.1 -15- -1 3- iaries of the plan • 1161420.1 -10- she reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 9.02 Special Allocations to Capital Accounts. Notwithstanding Section 9.01 hereof: (a) No allocations of loss,deduction and/or expenditures described in Section 705(a)(2)(B) of the Code shall be charged to the Capital Accounts of any Member if such allocation would cause such Member to have a Deficit Capital Account. The amount of the loss, deduction and/or Code Section 705(a)(2)(B) expenditure which would have caused a Member to have a Deficit Capital Account shall instead be charged to the Capital Accounts of any Members which would not have a Deficit Capital Account as a result of the allocation, in proportion to their respective Capital Contributions, or, if no such Members exist, then to the Members in accordance with their interests in Company profits pursuant to Section 9.01. (b) In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Sections 1.704- 1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations which create or increase a Deficit Capital Account of such Member, then items of Company income and gain (consisting of a pro rata portion of each item of Company income, including gross income, and gain for such year and, if necessary, for subsequent years) shall be specially credited to the Capital Account of such Member in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Deficit Capital Account so created as quickly as possible. It is the intent that this Section 9.02(b) be interpreted to comply with the alternate test for economic effect set forth in Section 1.704-1(b)(2)(ii)(d) of the Regulations. (c) In the event any Member would have a Deficit Capital Account at the end of any Company taxable year which is in excess of the sum of any amount that such Member is obligated to restore to the Company under Regulations Section 1.704-1(b)(2)(ii)(c)and such Member's share of minimum gain as defined in Section 1.704-2(g)(1) of the Regulations), the Capital Account of such Member shall be specially credited with items of Membership income (including gross income) and gain in the amount of such excess as quickly as possible. (d) Notwithstanding any other provision of this Section 9.02, if there is a net decrease in the Company's minimum gain as defined in Treasury Regulation Section 1.704-2(d) during a taxable year of the Company, then the Capital Accounts of each Member shall be allocated items of income (including gross income) and gain for such year(and if necessary for subsequent years) equal to that Member's share of the net decrease in Company minimum gain. This Section 9.02(d) is intended to comply with the minimum gain chargeback requirement of Section 1.704-2 of the Regulations and shall be interpreted consistently therewith. If in any taxable year that the Company has a net decrease in the Company's minimum gain, if the minimum gain chargeback 1161420.1 -17- to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i requirement would cause a distortion in the economic arrangement among the Members and it is not expected that the Company will have sufficient other income to correct that distortion, the Manager may in his discretion (and shall, if requested to do so by a Member) seek to have the Internal Revenue Service waive the minimum gain chargeback requirement in accordance with Treasury Regulation Section 1.704-2(f)(4). (e) Items of Company loss, deduction and expenditures described in Section 705(a)(2)(B) which are attributable to any nonrecourse debt of the Company and are characterized as Member nonrecourse deductions under Section 1.704-2(i) of the Regulations shall be allocated to the Members' Capital Accounts in accordance with said Section 1.704-2(i) of the Regulations. (f) Beginning in the first taxable year in which there are allocations of"nonrecourse deductions"(as described in Section 1.704-2(b) of the Regulations) such deductions shall be allocated to the Members in accordance with, and as a part of, the allocations of Company profit or loss for such period. (g) In accordance with Section 704(c)(1)(A) of the Code and Section 1.704-1 (b)(2)(iv)(d)(3) of the Regulations, if a Member contributes property with a fair market value that differs from its adjusted basis at the time of contribution, income, gain, loss and deductions with respect to the property shall, solely for federal income tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company and its fair market value at the time of contribution. (h) Pursuant to Section 704(c)(1)(B) of the Code, if any contributed property is distributed by the Company other than to the contributing Member within five years of being contributed, then, except as provided in Section 704(c) (2) of the Code, the contributing Member shall be treated as recognizing gain or loss from the sale of such property in an amount equal to the gain or loss that would have been allocated to such Member under Section 704(c)(1)(A) of the Code if the property had been sold at its fair market value at the time of the distribution. (i) In the case of any distribution by the Company to a Member or Economic Interest Owner, such Member or Economic Interest Owner shall be treated as recognizing gain in an amount equal to the lesser of: (i) the excess (if any) of (A) the fair market value of the property (other than money) receive d in the distribution ove r (B) the adjusted basis of such Member's Membership Interest or Economic Interest Owner's Economic Interest in the Company immediately before the distribution reduced (but not below zero) by the amount of money received in the distribution, or 1161420.1 -1 8- the Company has a net decrease in the Company's minimum gain, if the minimum gain chargeback 1161420.1 -17- to be in or not opposed to the best interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (ii) the Net Precontribution Gain(as defined in Section 737(b) of the Code) of the Member or Economic Interest Owner. The Net Precontribution Gain means the net gain (if any) which would have been recognized by the distributee Member or Economic Interest Owner under Section 704(c)( 1)(B) of the Code if all property which (1) had been contributed to the Company within five years of the distribution, and (2) is held by the Company immediately before the distribution, had been distributed by the Company to another Member or Economic Interest Owner. If any portion of the property distributed consists of property which had been contributed by the distributee Member or Economic Interest Owner to the Company, then such property shall not be taken into account under this Section 9.02(i) and shall not be taken into account in determining the amount of the Net Pre-contribution Gain. If the property distributed consists of an interest in an entity, the preceding sentence shall not apply to the extent that the value of such interest is attributable to the property contributed to such entity after such interest had been contributed to the Company. (j) In connection with a Capital Contribution of moneyor other P property (other than a de minimis amount) by a new or existing Member or Economic Interest Owner as consideration for an Economic Interest or Membership Interest, or in connection with the liquidation of the Company or a distribution of money or other property (other than a de minimis amount) by the Company to a retiring Member or Economic Interest Owner as consideration for an Economic Interest or Membership Interest), the Capital Accounts of the Members shall be adjusted to reflect a revaluation of Company property(including intangible assets) in accordance with Treasury Regulation Section 1.704- 1(b)(2)(iv)(f). If under Section 1.704-1(b)(2)(iv)(f) of the Regulations, Company property that has been revalued is properly reflected in the Capital Accounts and on the books of the Company at a book value that differs from the adjusted tax basis of such property,then depreciation, depletion, amortization and gain or loss with respect to such property shall be shared among the Members in a manner that takes account of the variation between the adjusted tax basis of such property and its book value, in the same manner as variations between the adjusted tax basis and fair market value of property contributed to the Company are taken into account in determining the Members' shares of tax items under Section 704(c) of the Code. (k) All recapture of income tax deductions resulting from sale or disposition of Company property shall be allocated to the Member or Members to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (I) Any credit or charge to the Capital Accounts of the Members pursuant to Sections 9.02(b), (c) and/or (d), hereof shall be taken into account in computing subsequent allocations of profits and losses pursuant to Section 9.01, 50 that the net amount of any items charged or credited to Capital Accounts pursuant to Sections 9.01 and 9.02 shall, to the extent possible, be equal to the net amount that would have been allocated to the Capital Account of each Member pursuant to the provisions of this Article IX if the special allocations required by Sections 9.02(b), (c) and/or (d) hereof had not occurred. 9.03 Distributions. Except as provided in Section 8.03(d),all distributions of cash or other property shall be made to the Members pro rata as follows: Except as provided in Section 9.04, all distributions of Distributable Cash and property shall be made at such time as determined by the Manager. All amounts withheld pursuant to the Code or any provisions of state or local tax law with respect to any payment or distribution to the Members from the Company shall be treated as amounts distributed to the relevant Member or Members pursuant to this Section 9.03. 9.04 Limitation Upon Distributions. No distribution shall be declared and paid unless, after the distribution is made, the assets of the Company are in excess of all liabilities of the Company, except liabilities to Members on account of their contributions. 9.05 Accounting Principles. The profits and losses of the Company shall be determined in accordance with accounting principles applied on a consistent basis using the cash method of accounting. It is intended that the Company will elect those accounting methods which provide the Company and the Members with the greatest tax benefits. 9.06 Interest On and Return of Capital Contributions. No Member shall be entitled to interest on its Capital Contribution or to return of its Capital Contribution, except as otherwise specifically provided for herein. 9.07 Loans to Company. Nothing in this Operating Agreement shall prevent any Member from making secured or unsecured loans to the Company by agreement with the Company. 9.08 Accounting Period. The Company's accounting period shall end on December 31't of each year. 9.09 Records, Audits and Reports. At the expense of the Company, the Manager shall maintain records and accounts of all operations and expenditures 1161420.1 -20- adjusted tax basis and fair market value of property contributed to the Company are taken into account in determining the Members' shares of tax items under Section 704(c) of the Code. (k) All recapture of income tax deductions resulting from sale or disposition of Company property shall be allocated to the Member or Members to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i of the Company. At a minimum, the Company shall keep at its principal place of business the following records: (a) A current list of the full name and last known business, residence, or mailing address of each Member, Economic Interest Owner and Manager, both past and present; (b) A copy of the Articles of Organization of the Company and all amendments.thereto, together with executed copies of any powers of attorney pursuant to which any amendment has been executed; (c) Copies of the Company's federal, state, and local income tax returns and reports, if any, for the four most recent years; (d) Copies of the Company's currently effective written Operating Agreement, copies of any writings permitted or required with respect to a Member's obligation to contribute cash, property or services, and copies of any financial statements of the Company for the three most recent years; (e) Minutes of every annual, special and court-ordered meeting; (f) Any written consents obtained from Members for actions taken by Members without a meeting. 9.10 Returns and Other Elections. The Manager shall cause the preparation and timely filing of all tax returns required to be filed by the Company pursuant to the Code and all other tax returns deemed necessary and required in each jurisdiction in which the Company does business. Copies of such returns, or pertinent information therefrom, shall be furnished to the Members within a reasonable time after the end of the Company's fiscal year. • All elections permitted to be made by the Company under federal or state laws shall be made by the Manager in his sole discretion., provided that the Manager shall make any tax election requested by a Member owning a Majority Interest. ARTICLE X TRANSFERABILITY 10.01 General. Except as otherwise specifically provided herein neither a Member nor an Economic Interest Owner shall have the right to: (a) sell, assign, pledge, hypothecate, transfer, exchange or otherwise transfer for consideration, (collectively, "sell"), 1161420.1 -2 l- nt with the Company. 9.08 Accounting Period. The Company's accounting period shall end on December 31't of each year. 9.09 Records, Audits and Reports. At the expense of the Company, the Manager shall maintain records and accounts of all operations and expenditures 1161420.1 -20- adjusted tax basis and fair market value of property contributed to the Company are taken into account in determining the Members' shares of tax items under Section 704(c) of the Code. (k) All recapture of income tax deductions resulting from sale or disposition of Company property shall be allocated to the Member or Members to whom the deduction that gave rise to such recapture was allocated hereunder to the extent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (b) gift, bequeath or otherwise transfer for no consideration (whether or not by operation of law, except in the case of bankruptcy) all or any part of its Membership Interest or Economic Interest. 10.02 Right of First Refusal. (a) A Selling Member which desires to sell all or any portion of its Membership Interest or Economic Interest in the Company to a third party purchaser, the Selling Member shall obtain from such third party purchaser a bona fide written offer to purchase such interest, stating the terms and conditions upon which the purchase is to be made and the consideration offered therefor. The Selling Member shall give written notification to the remaining Members, by certified mail or personal delivery, of its intention to so transfer such interest, furnishing to the remaining Members a copy of the aforesaid written offer to purchase such interest. (b) The remaining Members, and each of them shall, on a basis pro rata to their Capital Interests or on a basis pro rata to the Capital Interests of those remaining Members exercising their right of first refusal, have the right to exercise a right of first refusal to purchase all (but not less than all) of the interest proposed to be sold by the Selling Member upon the same terms and conditions as stated in the aforesaid written offer to purchase by giving written notification to the Selling Member, by certified mail or personal delivery, of their intention to do so within ten (10) days after receiving written notice from the Selling Member. The failure of all the remaining Members (or any one or more of them) to so notify the Selling Member of their desire to exercise this right of first refusal within said ten (10) day period shall result in the termination of the right of first refusal and the Selling Member shall be entitled to consummate the sale of its interest in the Company, or such portion of its interest, if any, with respect to which the right of first refusal has not been exercised, to such third party purchaser. In the event the remaining Members (or any one or more of the remaining Members) give written notice to the Selling Member of their desire to exercise this right of first refusal and to purchase all of the Selling Member's interest in the Company which the Selling Member desires to sell upon the same terms and conditions as are stated in the aforesaid written offer to purchase, the remaining Members shall have the right to designate the time, date and place of closing, provided that the date of closing shall be within ten (10) days after receipt of written notification from the Selling Member of the third party offer to purchase. (c) In the event of either the purchase of the Selling Member's interest in the Company by a third party purchaser or the gift of an interest in the Company(including an Economic Interest), and as a condition to recognizing one 1161420.1 -22- ent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i or more of the effectiveness and binding nature of any such sale or gift and (subject to Section 10.03, below) substitution of a new Member as against the Company or otherwise, the remaining Members may require the Selling Member or Gifting Member or and the proposed purchaser,donee or successor-in-interest, • as the case may be, to execute, acknowledge and deliver to the remaining Members such instruments of transfer, assignment and assumption and such other certificates, representations and documents, and to perform all such other acts which the remaining Members may deem necessary or desirable to: (i) constitute such purchaser, as a Member, donee or successor-in-interest as such; (ii) confirm that the person desiring to acquire an interest or interests in the Company, or to be admitted as a Member, has accepted, assumed and agreed to be subject and bound by all of the terms, obligations and conditions of the Operating Agreement, as the same may have been further amended (whether such Person is to be admitted as a new Member or will merely be an Economic Interest Owner); (iii) preserve the Company after the completion of such sale, transfer, assignment, or substitution under the laws of each jurisdiction in which the Company is qualified, organized or does business; (iv) maintain the status of the Company as a partnership for federal tax purposes; and (v) assure compliance with any applicable state and federal laws including securities laws and regulations. (d) Any sale or gift of a Membership Interest or Economic Interest or admission of a Member in compliance with this Article X shall be deemed effective as of the last day of the calendar month in which the remaining Members' consent thereto was given, or, if no such consent was required pursuant to Section 10.02(e), then on the last day of the calendar month in which the donee or successor-in-interest has complied with all of the requirements of Section 10.02(c) hereof. The Selling Member agrees, upon request of the remaining Members,to execute such certificates or other documents and perform such other acts as may be reasonably requested by the remaining Members from time to time in connection with such sale, transfer, assignment, or substitution. The Selling Member hereby indemnifies the Company and the remaining Members against any and all loss, damage, or expense (including, without limitation, tax liabilities or loss of tax benefits) arising directly or indirectly as a result of any transfer or purported transfer in violation of this Article X. 1161420.1 -23- the purchase of the Selling Member's interest in the Company by a third party purchaser or the gift of an interest in the Company(including an Economic Interest), and as a condition to recognizing one 1161420.1 -22- ent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (e) Subject to Section 10.03(c), a Transferring Member may gift all or any portion of its Membership Interest and Economic Interest (without regard to Section 10.02(a) and (b) provided that the donee or other successor-in- interest(collectively,"donee")complies with Section 10.02(c),and further provided that the donee is either the Gifting Member's spouse, former spouse, or lineal descendent (including adopted children). In the event of the gift of all or any portion of a Gifting Member's Membership Interest or Economic Interest to one or more donees who are under 21 years of age, one or more trusts shall be established to hold the gifted interest(s) for the benefit of such donee(s) until all of the donee(s) reach the age of at least 21 years. 10.03 Transferee Not Member in Absence of Consent of a Majority in Capital Interests. (a) Notwithstanding anything contained herein to the contrary (including, without limitation, Section 10.02 hereof), if a majority in Capital Interests of the remaining Members do not approve by written consent of the proposed sale or gift of the Transferring member's Membership Interest or Economic Interest to a transferee or donee which is not a Member immediately • prior to the sale or gift, then the proposed transferee or donee shall have no right to participate in the management of the business and affairs of the Company or to become a Member. The transferee or donee shall be merely an Economic Interest Owner. No transfer of a Member's interest in the Company(including any transfer of the Economic Interest or any other transfer which has not been approved by a majority in Capital Interests written consent of the remaining Members) shall be effective unless and until written notice (including the name • and address of the proposed transferee or donee and the date of such transfer) has been provided to the Company and the non-transferring Member(s). (b) Upon and contemporaneously with any sale or gift of a Transferring Member's Economic Interest in the Company which does not at the same time transfer the balance of the rights associated with the Economic Interest transferred by the Transferring Member (including, without limitation, the rights of the Transferring Member to participate in the management of the business and affairs of the Company), the Company shall purchase from the Transferring Member, and the Transferring Member shall sell to the Company for a purchase price of$100.00, all remaining rights and interests retained by the Transferring Member which immediately prior to such sale or gift were associated with the transferred Economic Interest. (c) The restrictions on transfer contained in this Section 10.03 are intended to comply(and shall be interpreted consistently) with the restrictions on transfer set forth in § 21-2621 of the Nebraska Act. 1161420.1 -24- -22- ent that such Member is allocated any gain from the sale or other disposition of such property. 1161420.1 -1 9- interests of the Company, except that no indemnification shall be made in respect 1161420.1 -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 10.04 Company's Option to Purchase Upon Member's Death. In the event of the Death of a Member, the Company shall have an option to purchase the deceased Member's Interest at a price which shall be annually redetermined by the Members for each Member's Interest during the annual meeting each year (the "Purchase Price"). The Purchase Price for each Member's Interest for the initial year of the Company until redetermined at the Company's first annual meeting shall be each Member's initial Capital Contribution, adjusted by his or her pro rata share of Net Profit or Net Loss of the Company through the end of the month in which the deceased Member's death occurred. The Company shall proceed immediately to collect the proceeds of any life insurance policies owned by it on the deceased Member's life and, if the Company elects to exercise its option to purchase the deceased Member's Membership Interest, it shall pay to the legal representative of the deceased Member, at the time of closing, such insurance proceeds up to an amount equal to the Purchase Price as set forth herein. However, if the insurance proceeds aggregate less than the Purchase Price, the Company shall issue and deliver to said legal representative the Company's promissory note for the balance of the Purchase Price, which note shall bear interest at a rate equal to one point over the prime commercial lending rate of U.S. Bank National Association, Lincoln, Nebraska, determined initially as of the date of closing, and redetermined on January 1 of each year thereafter until the principal of the note is paid in full. The note shall be amortized over a period of not more than sixty (60) months, payable on a monthly basis, the first of such payments being due on the first day of the month following the date of closing. The note may be fully or partially prepaid at any time without penalty. 10.05 Insurance Provisions. (a) In order to facilitate the performance of this Operating Agreement, the Company may purchase insurance on the life of any Member. The Company shall have the right to purchase additional insurance on the life of any Member whenever, in the opinion of the Company, additional insurance may be required for the benefit of the Company in order to enable it to carry out its obligations under this Operating Agreement. Such additional policies shall be subject to the provisions hereof. Upon unanimous agreement of the Members, other policies may be substituted for any policies made subject to this Operating Agreement, or any policies subject hereto may be withdrawn. Any addition, substitution or withdrawal of policies shall be subject to all other terms and conditions of this Operating Agreement. (b) The Company shall be named and shall remain the sole beneficiary under any insurance policies covered by this Operating Agreement. The Company shall be the sole owner of the policies and shall have and retain possession of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i preclude the purchase of insurance on the life of any Member by any other Member or the purchase of split-dollar insurance. (c) During the lifetime of any insured Member during the term of this Operating Agreement, the Company shall maintain any such insurance in full force and effect, and shall not cancel any such insurance or encumber or dispose of any of the policies without prior written consent of all of the Members, and shall not take any action that might give rise to the termination, encumbrance or cancellation thereof. During the lifetime of any insured Member during the term of this Operating Agreement, the Company shall pay premiums on all insurance policies carried by it pursuant to this Operating Agreement as they may become due, and shall give due proof of such payment to the respective insured Member within thirty(30) days after the due date of each premium. If any premium is not paid within thirty (30) days after the due date, the insured Member may pay the premium to be paid, and shall be entitled to reimbursement from the Company. The Company shall apply any dividends declared on any such policies to the payment of premiums. (d) In the event of the termination of this Operating Agreement, or if any Member ceases at any time to own Membership Interest in the Company, each Member, or the Member who has ceased to own a Membership Interest in the Company, as the case may be, shall have the option, exercisable within thirty(30) days after such termination or cessation of ownership, to purchase any or all policies on his own life subject to his paying for each a price equal to the amount of(i) the cash surrender value thereof, if any, calculated on a prorated basis to the date of such purchase, exclusive of any dividend, dividend accumulations or policy loans, but inclusive of the cash value of any paid-up insurance additions, plus (ii) the prorated portion of any premiums paid prior to such date which covers a period extending beyond the date of such purchase,plus(iii) any dividend accumulations, and less (iv) any policy loan(s) plus interest then due. Any such policy purchased by a Member in accordance with the foregoing shall be transferred and delivered to him by the Company. Any such policy not acquired by a Member within the above option period may be surrendered to the insurance company by the Company for its cash surrender value, or maybe held or disposed of in any lawful manner which the Company deems advisable. ARTICLE XI ADDITIONAL MEMBERS From the date of the formation of the Company, any Person or Entity acceptable to the Members by their Majority Interest vote thereof may become a Member in this Company either by the issuance by the Company of Membership Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i portion thereof, subject to the terms and conditions of this Operating Agreement. No new Members shall be entitled to any retroactive allocation of losses, income or expense deductions incurred by the Company. The Manager or Manager(s) may, at his or their option, at the time a Member is admitted, close the Company books(as though the Company's tax year had ended) or make pro rata allocations of loss, income and expense deductions to a new Member for that portion of the Company's tax year in which a Member was admitted in accordance with the provisions of Section 706(d) of the Code and the Regulations promulgated thereunder. ARTICLE XII DISSOLUTION AND TERMINATION 12.01 Dissolution. (a) The Company shall be dissolved upon the occurrence of any of the following events: (i) when the period fixed for the duration of the Company shall expire pursuant to Section 2.05 hereof; (ii) by the unanimous written agreement of all Members. (b) As soon as possible following the occurrence of any of the events specified in this Section 12.01 effecting the dissolution of the Company,the appropriate representative of the Company shall execute a statement of intent to dissolve in such form as shall be prescribed by the Nebraska Secretary of State and file same with the Nebraska Secretary of State's office. (c) If a Member who is an individual dies or a court of competent jurisdiction adjudges him to be incompetent to manage his person or his property, the Member's executor, administrator, guardian, conservator, or other legal representative may automatically exercise all of the Member's rights for the purpose of settling his/her estate or administering his/her property, but shall not be deemed or become a Member. 12.02 Effect of Filing of Dissolving Statement. Upon the filing by the Nebraska Secretary of State of a statement of intent to dissolve, the Company shall cease to carry on its business, except insofar as may be necessary for the winding up of its business, but its separate existence shall continue until a certificate of dissolution has been issued by the Secretary of State or until a decree dissolving the Company has been entered by a court of competent jurisdiction. 1161420.1 -27- surrendered to the insurance company by the Company for its cash surrender value, or maybe held or disposed of in any lawful manner which the Company deems advisable. ARTICLE XI ADDITIONAL MEMBERS From the date of the formation of the Company, any Person or Entity acceptable to the Members by their Majority Interest vote thereof may become a Member in this Company either by the issuance by the Company of Membership Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 12.03 Winding Up, Liquidation and Distribution of Assets. (a) Upon dissolution, an accounting shall be made by the Company's independent accountants of the accounts of the Company and of the Company's assets, liabilities and operations, from the date of the last previous accounting until the date of dissolution. The Manager(s) shall immediately proceed to wind up the affairs of the Company. (b) If the Company is dissolved and its affairs are to be wound up, the Manager(s) shall: (i) Sell or otherwise liquidate all of the Company s assets as promptly as practicable (except to the extent the Manager(s) may determine to distribute any assets to the Members in kind), (ii) Allocate any profit or loss resulting from such sales to the Members' and Economic Interest Owners' Capital Accounts in accordance with Article IX hereof, (iii) Discharge all liabilities of the Company, including liabilities to Members and Economic Interest Owners who are creditors, to the extent otherwise permitted by law, other than liabilities to Members and Economic Interest Owners for distributions,and establish such Reserves as may be reasonably necessary to provide for contingencies and foreseeable liabilities of the Company(for purposes of determining the Capital Accounts of the Members and Economic Interest Owners, the amounts of such Reserves shall be deemed to be an expense of the Company), (iv) Distribute the remaining assets in the following order: (1) If any assets of the Company are to be distributed in kind, the net fair market value of such assets as of the date of dissolution shall be determined by independent appraisal or by agreement of the Members. Such assets shall be deemed to have been sold as of the date of dissolution for their fair market value, and the Capital Accounts of the Members and Economic Interest Owners shall be adjusted pursuant to the provisions of Article IX and Section 8.03 of this Operating Agreement to reflect such deemed sale. (2) The positive balance (if any) of each Member's and Economic Interest Owner's Capital 1161420.1 -28- dered to the insurance company by the Company for its cash surrender value, or maybe held or disposed of in any lawful manner which the Company deems advisable. ARTICLE XI ADDITIONAL MEMBERS From the date of the formation of the Company, any Person or Entity acceptable to the Members by their Majority Interest vote thereof may become a Member in this Company either by the issuance by the Company of Membership Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Account (as determined after taking into account all Capital Account adjustments for the Company's taxable year during which the liquidation occurs) shall be distributed to the Members, either in cash or in kind, as determined by the Manager(s), with any assets distributed in kind being valued for this purpose at their fair market value as determined pursuant to Section 12.03(b)(1). Any such distributions to the Members in respect of their Capital Accounts shall be made in accordance with the time requirements set forth in Section 1.704-1(b)(2)(ii)(b)(2) of the Regulations. (3) Notwithstanding anything to the contrary in this Operating Agreement, upon a liquidation within the meaning of Section 1.704-1 (b)(2)(ii)(g) of the Regulations, if any Member has a Deficit Capital Account(after giving effect to all contributions, distributions, allocations and other Capital Account adjustments for all taxable years, including the year during which such liquidation occurs), such Member shall have no obligation to make any Capital Contribution, and the negative balance of such Member's Capital Account shall not be considered a debt owed by such Member to the Company or to any other Person for any purpose whatsoever. (4) Upon completion of the winding up, liquidation and distribution of the assets, the Company shall be deemed terminated. (5) The Manager(s) shall comply with any applicable requirements of applicable law pertaining to the winding up of the affairs of the Company and the final distribution of its assets. 12.04 Articles of Dissolution. When all debts, liabilities and obligations have been paid and discharged or adequate provisions have been made therefor and all of the remaining property and assets have been distributed to the Members, articles of dissolution shall be executed in duplicate and verified by the 1 161420.1 -29- ered to the insurance company by the Company for its cash surrender value, or maybe held or disposed of in any lawful manner which the Company deems advisable. ARTICLE XI ADDITIONAL MEMBERS From the date of the formation of the Company, any Person or Entity acceptable to the Members by their Majority Interest vote thereof may become a Member in this Company either by the issuance by the Company of Membership Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i person signing the articles, which articles shall set forth the information required by the Nebraska Act. Duplicate originals of such articles of dissolution shall be delivered to the Nebraska Secretary of State. 12.05 Certificate of Dissolution. Upon the issuance of the certificate of dissolution, the existence of the Company shall cease, except for the purpose of suits, other proceedings and appropriate action as provided in the Nebraska Act. The Manager(s) shall have authority to distribute any Company property discovered after dissolution, convey real estate and take such other action as may be necessary on behalf of and in the name of the Company. 12.06 Return of Contribution Nonrecourse to Other Members. Except as provided by law or as expressly provided in this Operating Agreement, upon dissolution, each Member shall look solely to the assets of the Company for the return of its Capital Contribution. If the Company property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return the cash contribution of one or more Members, such Member or Members shall have no recourse against any other Member. ARTICLE XIII MISCELLANEOUS PROVISIONS 13.01 Notices. Any notice, demand, or communication required or permitted.to be given by any provision of this Operating Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered personally to the party or to an executive officer of the party to whom the same is directed or, if sent by registered or certified mail, postage and charges prepaid, addressed to the Member's and/or Company's address, as appropriate, which is set forth in this Operating Agreement. Except as otherwise provided herein, any such notice shall be deemed to be given three business days after the date on which the same was deposited in a regularly maintained receptacle for the deposit of United States mail, addressed and sent as aforesaid. 13.02 Books of Account and Records. Proper and complete records and books of account shall be kept or shall be caused to be kept by the Manager in which shall be entered fully and accurately all transactions and other matters relating to the Company's business in such detail and completeness as is customary and usual for businesses of the type engaged in by the Company. . Such books and records shall be maintained as provided in Section 9.09. The books and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the members Economic Interest Owners or their duly authorized representatives during reasonable business hours. 1161420.1 -30- Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 13.03 Application of Nebraska Law. This Operating Agreement, and the application or interpretation hereof, shall be governed exclusively by its terms and by the laws of the State of Nebraska, and specifically the Nebraska Act. 13.04 Waiver of Action for Partition. Each Member and Economic Interest Owner irrevocably waives during the term of the Company any right that it may have to maintain any action for partition with respect to the property of the Company. 13.05 Amendments. This Operating Agreement may not be amended except by the unanimous written agreement of all of the Members. 13.06 Execution of Additional Instruments. Each Member hereby agrees to execute such other and further statements of interest and holdings, designations, powers of attorney and other instruments necessary to comply with any laws, rules or regulations. 13.07 Construction. Whenever the singular number is used in this Operating Agreement and when required by the context, the same shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. 13.08 Headings. The headings in this Operating Agreement are inserted for convenience only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Operating Agreement or any provision hereof. 13.09 Waivers. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Operating Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation. 13.10 Rights and Remedies Cumulative. The rights and remedies provided by this Operating Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 13.11 Severability. If any provision of this Operating Agreement or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Operating Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law. 1161420.1 -31- The books and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the members Economic Interest Owners or their duly authorized representatives during reasonable business hours. 1161420.1 -30- Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 13.12 Heirs, Successors and Assigns. Each and all of the covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Operating Agreement,their respective heirs,legal representatives, successors and assigns. 13.13 Creditors. None of the provisions of this Operating Agreement shall be for the benefit of or enforceable by any creditors of the Company. 13.14 Counterparts. This Operating Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. CERTIFICATE The undersigned hereby agree, acknowledge and certify that this Operating Agreement constitutes the operating agreement of Bethesda Homes, LLC, adopted by the initial Member of the Company on March a 2010 Bethesda Urban Community Development Corporation, a Nebraska nonprofit corporation, Managing Member By:zi l l oseph L. Shannon, Sr., President 1161420.1 -32- 13.08 Headings. The headings in this Operating Agreement are inserted for convenience only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Operating Agreement or any provision hereof. 13.09 Waivers. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Operating Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation. 13.10 Rights and Remedies Cumulative. The rights and remedies provided by this Operating Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 13.11 Severability. If any provision of this Operating Agreement or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Operating Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law. 1161420.1 -31- The books and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the members Economic Interest Owners or their duly authorized representatives during reasonable business hours. 1161420.1 -30- Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i APPENDIX A Bethesda Homes, LLC Initial Capital Initial Capital Contribution - Initial Member Contribution - Non-Cash' Percentage of Name & Address Cash (Agreed Value) Total Capital Bethesda Urban Community Development Corporation 5116 Terrace Drive Omaha, NE 68134 $100.00 100% Total: $100.00 100% 1161420.1 -33- and business address of the initial Managing Member is: Bethesda Urban Community Development Corporation 5116 Terrace Drive Omaha, NE 68134 The Managers shall be selected by the Members as provided in the Operating Agreement. IN WITNESS WHEREOF, the undersigned has caused these Articles of Organization to be executed this 15th day of March, 2010 Thomas C. Huston, Organizer 1161407.1 -3- • STATEOF `ow,,,,„ .,,„?...,,,� NEBRASKA As,--,.4 . T, V/ice/� e. O If Y:N 1. 1 III�..!,''.., ` Ai:k Alivilara United States of America, iparru,�'I,r! e State of Nebraska } ss. +J4r-w, ,s�� Department of State Lincoln, Nebraska I, John A. Gale, Secretary of State of Nebraska do hereby certify; the attached is a true and correct copy of Articles of Incorporation of BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION, INC. with its registered office Iocated in OMAHA, Nebraska, as filed in this office on January 22, 2003. In Testimony Whereof, I have hereunto set my hand and affixed the Great Seal of the State of Nebraska on January 22, in the year of our Lord, two thousand thre . _46---10E s 7,4"1 4. ZP,te., ...___________, _- .,.,.....- 0 1 1 3,i °"-Al ' rt' Ill 4 ��``� �:,.. v\'1h SECRETARY OF STATE E.,°w""""=;5�.: - !4°� / xi 4 o ;- 11 iii •.1ri a 411 ° � 4 o 14h,� IiiTR°°vs°o5T,"$6 for convenience only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Operating Agreement or any provision hereof. 13.09 Waivers. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Operating Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation. 13.10 Rights and Remedies Cumulative. The rights and remedies provided by this Operating Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 13.11 Severability. If any provision of this Operating Agreement or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Operating Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law. 1161420.1 -31- The books and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the members Economic Interest Owners or their duly authorized representatives during reasonable business hours. 1161420.1 -30- Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i R • I D 1111111111II111111111111111IIIIIIIIIIIII ARTICLES OF INCORPORATIONC y 1000337472 Pgs. 5 BETHESDA URBAN COMMUNITY DEVEL Filed 01/22/2003 02:12 PM OF BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION, INC. KNOW ALL MEN BY THESE PRESENTS: That we the undersigned, of full age of majority, have for the purpose of forming a non- profit religious corporation pursuant to the laws of the State of Nebraska, for the purposes expressed in Article III hereof, adopted the following Articles of Incorporation: ARTICLE I. The name of the corporation shall be Bethesda Urban Community Development Corporation, Inc., and its duration is to be perpetual. ARTICLE II. The name of the registered agent and the location and post office address ofthe corporation's registered office in the State of Nebraska is Joseph L. Shannon, Sr., 7184 North 80th Street, Omaha, County of Douglas, State of Nebraska 68122, respectively. ARTICLE III. This non-profit corporation is organized and operated exclusively for the religious purposes of a ministry within the meaning of Section 501 (c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America. In furtherance of its non-profit,tax-exempt purpose,the corporation shall have the following powers and authority; however, the corporation shall not be empowered, and is prohibited from engaging in any activity which is not allowed pursuant to Section 501 (c)(3)of the Internal Revenue Code of 1954, as amended, of the United States of America: • • (a) To operate under the name as set forth in Article I above; (b) To employ qualified counsel and other necessary personnel to carry out the purposes of the corporation; (c) To provide supportive services that help disenfranchised persons of all ages to empower those of our community who need the help to improve their quality of life (d) To associate and cooperate freely with churches, missionaries, organizations and branches;as a free and independent corporation in accord with its own conscience and the wisdom of God, as the corporation perceives to be, but in every case and in every act and in pursuance of or perating Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law. 1161420.1 -31- The books and records shall at all times be maintained at the principal executive office of the Company and shall be open to the reasonable inspection and examination of the members Economic Interest Owners or their duly authorized representatives during reasonable business hours. 1161420.1 -30- Interests for such consideration as the Members by their Majority Interest votes shall determine, or as a transferee of a Member's Membership Interest or any 1161420.1 -26- n of the policies and dispose of them and the proceeds thereof only as provided in this Operating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i adoption of any policy or method or in practice or association does and shall do so as a free corporation,always retaining its sovereignty and independence, and in no case whatsoever,as an act of subjection nor precedent or amenability nor as an active or passive or implied affiliation nor in any way as relinquishing its perpetual, legal independence and sovereignty as a corporation,seeking to improve the lives of all people emotionally,mentally, physically, and spiritually; (e) • To receive tithes,offerings,financial contribution and property by devise or bequest, subject to the laws relating to the transfer of property by will; (f) To act as Trustee under any trust incidental to the principal objects of the corporation and to receive, hold, administer and expend funds and property subject to such trust; (g) To take,purchase or otherwise acquire;to own,hold,occupy,use,and enjoy;manage, improve,develop and work;to grant,sell,exchange,let,demise,and otherwise dispose ofreal estate, buildings, and improvements and every right, interest and estate therein without limit as to the amount thereof and wheresoever the same may be situated; to erect, construct, alter and repair buildings;to assume any and every kind of contract,agreement and obligation by or with any person, firm, corporation or association, or any federal, state or other government for the erection, construction, alteration, repair, renewal, equipment, improvement, development, use, enjoyment, leasing,management or control of any buildings, improvements or structures of any kind wherever the same may be situated; (h) To enter into, make, perform and carry out contracts of every kind for any lawful purpose without limit as to amount and with any person,form, association,or corporation;to draw, make accept, endorse, discount,issue and execute promissory notes,warrants,and other negotiable or transferable interests; (i) To purchase or otherwise acquire, to own, hold, use and enjoy, to sell, assign and transfer, exchange or otherwise dispose of, deal in or deal with personal property of every kind and description without limit as to the amount thereof and wheresoever the same may be situated; (j) To borrow and to loan money and to give and to receive evidence of indebtedness and security therefor; to draw,make, accept, endorse,execute and issue promissory notes,warrants and other debentures of the corporation,or otherwise,to make guarantees of every kind and secure any or all obligations of the corporation by mortgage, trust deed or otherwise; (k) To appoint such officers and employees as may be decreed proper by its Board of Directors;define their authority and duties; fix their compensation;require bonds of such of them as it deems advisable and fix the penalty thereof;dismiss such officers or employees,or any thereof,for any good reason and appoint others to fill their places; (1) To adopt and assume names in the furtherance of its non-profit,tax-exempt purposes; 2 erating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (m) To use any and all media, including,but not limited to,print, television and radio,in the furtherance of its non-profit, tax-exempt purposes; (n) To assume our share of the responsibility and the privilege of improving the lives of all people, as well as disenfranchised persons by all spiritual and natural means; (o) To do all other acts necessary or expedient for the administration of the affairs and attainment of the purposes of the corporation, and to have and exercise all the powers now or hereafter conferred by the laws of the State; (p) To exercise such other incidental powers as may reasonably be necessary to carry out the purposes for which the corporation is established,provided that such incidental powers shall be exercised in a manner consistent with its tax-exempt status as a religious organization as set forth in Section 501 (c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America; and, (q) To construe the several clauses contained in this Article III both as purposes and powers, by reference to or inference from the terms of any other clauses, and in no way to limit or restrict the statements, but to regard as independent purposes and powers. Notwithstanding any provisions of these Articles of Incorporation,the corporation shall not engage in any political activity proscribed by Section 501 (c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America, nor shall any income or assets of the corporation inure to the benefit of any member, private individual or business entity. ARTICLE IV. To assure the corporation of its sovereignty and independence and to perpetually protect the corporation, all legal power and authority'relative to the corporation shall be exercised by and in accordance with the Word of God and its Board of Directors. Thus, the Board of Directors shall conduct all business of the corporation and shall be the only voting entities of the corporation. The number of Directors and their qualifications shall be established in the By-laws of this corporation. The corporation shall have no members. ARTICLE V. This non-profit corporation is formed without purpose of pecuniary profit and shall have no capital stock. ARTICLE VI. The private property of the Board of Directors shall be nonassessable,and shall not be subject to the payment of any corporate debts, nor shall the Directors become individually or corporately liable or responsible for any debts or liabilities of the corporation. 3 oyees as may be decreed proper by its Board of Directors;define their authority and duties; fix their compensation;require bonds of such of them as it deems advisable and fix the penalty thereof;dismiss such officers or employees,or any thereof,for any good reason and appoint others to fill their places; (1) To adopt and assume names in the furtherance of its non-profit,tax-exempt purposes; 2 erating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i ARTICLE VII. Upon dissolution of the corporation, the Board of Directors shall, after paying or making provisions for the payment of all the liabilities of the corporation, dispose of all the assets of the corporation exclusively for the purposes of the corporation in such manner,or to such organization or organizations organized and operated exclusively for the charitable, education, religious or scientific purposes as shall at the time qualify as an exempt organization or organizations under Section 501 (c)(3) of the Internal Revenue Code of 1986 (or the organizations under Section 501 (c)(3) of the United States Internal Revenue Law), as the Board of Directors shall determine. Any such assets not so disposed of shall be disposed of by the Court of Common Pleas of the county in which the principal office of the corporation is then located,exclusively for such purposes or to such organization or organizations as said court shall determine, which are organized and operated exclusively for such purposes. ARTICLE VIII. These Articles may be amended at any regular meeting of the Board of Directors, or at a special meeting called for that purpose, by a two-thirds (2/3)majority. ARTICLE IX. The name and street address of the incorporator is as follows: Joseph L. Shannon, Sr. 7184 North 80th Street • Omaha, NE 68122 Joseph L. Shan non, Sr., Incorporator 4 ted States of America, nor shall any income or assets of the corporation inure to the benefit of any member, private individual or business entity. ARTICLE IV. To assure the corporation of its sovereignty and independence and to perpetually protect the corporation, all legal power and authority'relative to the corporation shall be exercised by and in accordance with the Word of God and its Board of Directors. Thus, the Board of Directors shall conduct all business of the corporation and shall be the only voting entities of the corporation. The number of Directors and their qualifications shall be established in the By-laws of this corporation. The corporation shall have no members. ARTICLE V. This non-profit corporation is formed without purpose of pecuniary profit and shall have no capital stock. ARTICLE VI. The private property of the Board of Directors shall be nonassessable,and shall not be subject to the payment of any corporate debts, nor shall the Directors become individually or corporately liable or responsible for any debts or liabilities of the corporation. 3 oyees as may be decreed proper by its Board of Directors;define their authority and duties; fix their compensation;require bonds of such of them as it deems advisable and fix the penalty thereof;dismiss such officers or employees,or any thereof,for any good reason and appoint others to fill their places; (1) To adopt and assume names in the furtherance of its non-profit,tax-exempt purposes; 2 erating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i STATE OF NEBRASKA ) ) ss. COUNTY OF DOUGLAS ) On this day of January, 2003, before me, the undersigned Notary Public in and for said County, personally appeared JOSEPH L. SHANNON, SR., known to me to be the identical person described in and who executed the foregoing Articles of Incorporation for Bethesda Urban Community Development Corporation,Inc., and he acknowledged the same to be his voluntary act and deed. WITNESS my hand and seal in said County and State, the day and year last written above. �L ROTAAV• e of Nebnae� i . ,646 t11, /h�� r i BEVERLY J.HAZUKA �` G' 1A'Rmun.drp.Dec.31,200B 'Notary Public y:\wDOX\CLIENTS\15347\000\corp\SMH4732.DOC 5 ion to be executed this 15th day of March, 2010 Thomas C. Huston, Organizer 1161407.1 -3- BYLAWS OF BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION (A Nonprofit Corporation) ARTICLE I OFFICES The principal office of the corporation, hereinafter referred to as the "Corporation," shall be located at the address set forth in the Articles of Incorporation. The Corporation may have such other offices, either within or without the State of Incorporation, as the Board of Directors may determine from time to time. ARTICLE II MEMBERSHIP Section 1. Classes of Members. The Corporation shall have only one (1) class of membership, the Board of Directors members, which shall be voting members. ARTICLE III BOARD OF DIRECTORS Section 1. General Powers. The affairs of the Corporation shall be managed by the Board of Directors whose members shall have a fiduciary obligation to the Corporation. Section 2. Number, Term and Qualifications. The number of Directors shall be no less than three (3) and shall have no maximum number. The term of membership shall be for continuous one (1) year periods, unless removed. Those set forth in the original Articles of Incorporation shall comprise the original Board of Directors. Section 3. Regular Meetings. A regular meeting of the Board of Directors shall be held each year. The President or the Board of Directors may provide, by resolution, the time and place for holding additional regular meetings without other notice than such resolution. Additional regular meetings shall be held at the principal office of the Corporation in the absence of any designation in the resolution. Section 4. Special Meetings. Special meetings of the Board of Directors may be called by or at the request of the President or any two (2) Directors, and shall be held at the principal office of the Corporation or at such other place as the Directors may determine. Section 5. Notice. Notice of the annual regular or any special meeting of the Board of Directors shall be given by oral notice to each director. The attendance of a director at any meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. The business to be transacted at the meeting need not be specified in the notice or waiver of notice of such meeting, unless specifically required by law or by these Bylaws. orporately liable or responsible for any debts or liabilities of the corporation. 3 oyees as may be decreed proper by its Board of Directors;define their authority and duties; fix their compensation;require bonds of such of them as it deems advisable and fix the penalty thereof;dismiss such officers or employees,or any thereof,for any good reason and appoint others to fill their places; (1) To adopt and assume names in the furtherance of its non-profit,tax-exempt purposes; 2 erating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Section 6. Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at nay meeting of the Board; but if less than a majority of the Directors are present at any meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice. Section 7. Board Decisions. The act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless the act of a greater number is required by law or by these Bylaws. Section 8. Vacancies,Additions, Elections and Removal. Any vacancy occurring in the Board of Directors and any directorship to be filled by reason or an increase in the number of Directors, shall be filled by the President or a two-third (2/3) majority vote of the Board of Directors. Section 8. Compensation. Directors, as such, shall not receive any.salaries for their services. ARTICLE IV OFFICERS Section 1. Officers. The officers of the corporation shall be a president, a secretary, a treasurer, one or more vice presidents and such other officers as may be elected in accordance with the provisions of this Article. The President or Board of Directors may elect or appoint such other officers, including one or more assistant secretaries and one or more assistant treasurers, as it shall deem desirable, such officers to have the authority and perform the duties prescribed, from time to time, by the President or Board of Directors. Any two or more offices may be held by the same person. Section 2. Election and Term of Office. The officers of the Corporation shall be elected annually by the President or Board of Directors at the regular annual meeting of the Board of Directors. If the election of officers is not held at such meeting, such election shall be held as soon thereafter as is convenient. New offices may be created and filled at any meeting of the Board of Directors. Each officer shall hold office until his successor has been duly elected and qualified. Section 3. Removal. Any officer elected or appointed by the Board of Directors may be removed by the President or Board of Directors whenever in its judgment the best interests of the Corporation would be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the officer so removed. Section 4. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise, may be filled by the President or Board of 'Directors for the unexpired portion of the term. Section 5. Powers of Officers. (a) The President: He shall be designated attorney-in-fact for the corporation by virtue of his office. He shall have the authority to appoint, remove and approve any assistants that would be necessary to properly carry on the business of the corporation. assume names in the furtherance of its non-profit,tax-exempt purposes; 2 erating Agreement. Nothing in this Operating Agreement shall 1161420.1 -25- -9 • - If an Injunction or Restraining Order bond,does applicant OTHER THAN anticipatsaoreclosure or collection action against him? 3 AND 4 rj Yes I I No If so,submit for underwriting. FINANCIAL STATEMENT Explain purpose of bond(submit copy of relevant documents) NECESSARY. HAVE PRINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i The president shall be the chief executive officer of the Corporation. He shall be a continuing member of the Board of Directors. He shall have general management of the business of the Corporation and general supervision of the other officers. He shall preside at all meetings of the Board of Directors and see.that all orders and resolutions of the Board are carried into effect, subject, however, to the right of the Board to delegate to any other officer or officers of the Corporation any specific powers, other than those that may be conferred only upon the President. He shall execute in the name of the Corporation all deeds, bonds, mortgages, contracts and other documents. He shall be ex-officio a member of all standing committees, and shall have the general powers and duties of supervision and management usually vested in the office of president of a corporation. (b) Vice President: The Vice President shall perform the duties and exercise the powers of the President in case of his temporary absence from the office of the Corporation, and shall perform such other duties as may from time to time be granted or imposed by the Board of Directors. He shall serve as an ex-officio member of the Board of Advisors; however, in the event of serving as President, he shall be a voting member of the Board of Advisors. (c) Secretary: The Secretary shall attend all sessions of the Board held at the office of the Corporation and act as clerk thereof and record all votes and the minutes of all proceedings in a book to be kept for that purpose. He shall perform like duties for the executive and standing committees when required. He shall give, or cause to be given, notice of meetings of the Board of Directors when notice is required to be given under these Bylaws or by any resolution of the Board. He shall have custody of the seal to all authorized documents requiring the seal. He shall keep the membership rolls of the Corporation, and in general perform the duties usually incident to the office of Secretary, and such further duties at shall from time to time be prescribed by the Board of Directors or the President. (d) Treasurer: The Treasurer shall keep full and accurate account of the receipts and disbursements in books belonging to the Corporation, and shall deposit all moneys and other valuable effects in the name and to the credit of the Corporation in such banks and depositories as may be designated by the President or Board of Directors, but shall not be personally liable for the safekeeping of any funds or securities so deposited pursuant to the order of the President or Board. He shall disburse the funds of the Corporation as may be ordered by the President or the Board and shall render to the President and Directors at the regular meeting of the Board, and whenever they may be required, accounts of all his transactions as Treasurer and of the financial condition of the Corporation. He shall perform the duties usually incident to the office of the Treasurer and such other duties as may be prescribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i ARTICLE V COMMITTEES AND BOARD OF ADVISORS Section 1. Committees and Directors. The Board of Directors, by resolution adopted by a majority of the Directors in office, may designate one or more committees, which committees, to the extent provided in such resolution, shall have and exercise the authority of the Board of Directors in the management of the Corporation; but the designation of such committees and the delegation thereto of authority shall not operate to relieve the President or Board of Directors, or any individual director, of any responsibility imposed on it or him by law. Section 2. Other Committees. Other committees not having and exercising the authority of the Board of Directors in the management of the Corporation may be designated by a resolution adopted by a majority of the Directors present at a meeting at which a quorum is present. The President shall appoint the members thereof. Any member thereof may be removed by the President whenever in his judgment the best interest of the Corporation shall be served by such removal. Section 3. Board of Advisors. A Board of Advisors may be appointed as set forth below. It shall be the responsibility and privilege of the Board of Advisors to provide counsel to the President and to the Board of Directors. Counsel shall be organizational, financial, legal or other areas wherein the President determines professional counsel is needed and/or desirable. No minimum or maximum number of members of the Board of Advisors shall be established and the appointment of the Board of Advisors and tenure thereon shall be at the pleasure and in the complete discretion of the President. ARTICLE VI CONTRACTS, CHECKS, DEPOSITS AND FUNDS Section 1. Contracts. The President or Board of Directors may authorize any officer or officers, agents or agents of the Corporation, in addition to the officers so authorized by these Bylaws, to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or may be confined to specific instances. Section 2. Checks, Drafts or Orders. All checks, drafts or orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Corporation shall be signed by such officer or officers, agent or agents of the Corporation, and in such manner as shall from time to time be determined by resolution of the Board of Directors and or the President. In the absence of such determination by the Board of Directors, such instruments may be signed by either the Treasurer or the President of the Corporation. Section 3. Deposits. All funds of the Corporation shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors or the President may select. Section 4. Gifts. The President or Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i ARTICLE VII BOOKS AND RECORDS The Corporation shall keep correct and complete books and records of account and shall also keep minutes of the proceeding of its Board of Directors, committees having and exercising any of the authority of the Board of Directors, and any other committee, and shall keep at the principal office a record giving the names and addresses of the Board of Directors members entitled to vote. All books and records of the Corporation may be inspected by any member, or agent for any proper purpose at any reasonable time and reasonable reason with consent of the President. ARTICLE VIII FISCAL YEAR The fiscal year of the corporation shall be the calendar year. ARTICLE IX DISSOLUTION (a) Upon the dissolution of the Corporation, the President or Board of Directors shall, after the payment of all the liabilities of the Corporation, dispose of all of the assets of the Corporation exclusively for the purposes of the Corporation in such manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious or scientific purposes as shall qualify as an exempt corporation or organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (or of the corresponding provisions of any future United States Revenue Law) as the Board of Directors shall determine. (b) No part of the net earnings of the Corporation shall inure to the benefit of, or be distributable to, its members, officers, directors, or any person except that the Corporation shall be authorized and empowered to pay reasonable compensation for services rendered, and to make payments in the furtherance of the Corporation. Notwithstanding any other provisions of the Articles of Incorporation or these Bylaws of the Corporation, the Corporation shall not carry on any activity not permitted to be carried on (a) by a corporation exempt from federal income tax, under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (or by the corresponding section of any future Revenue Code of the United States of America) or(b) by a corporation, contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code of 1986, as amended (or the corresponding section of any future United States revenue law). • ARTICLE X PURPOSES In furtherance of its nonprofit, tax-exempt purposes, the corporation shall have the following powers and authority; however, the corporation shall not be empowered, and is prohibited from engaging in any activity which is not allowed pursuant to Section oration shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors or the President may select. Section 4. Gifts. The President or Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 501(c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America: (a) To operate under the name as set forth in the Articles of Incorporation; (b) To employ qualified legal counsel and other necessary personnel to carry out the purposes of this corporation; (c) To accept financial contributions; (d) To conduct its activities in accordance with and subject to all applicable State and Federal laws and regulations; (e) To adopt and use a corporate seal; (f) To make contracts; (g) By its Board of Directors or President, to appoint such officers and employees as may be decreed proper; define their authority and duties; fix their compensation; require bonds of such of them as it deems advisable and fix the penalty thereof; dismiss such officers or employees, or any thereof for any good reason and appoint others to fill their places; (h) To adopt and assume names in the furtherance of its nonprofit, tax-exempt purposes; (i) To use any and all media, including, but not limited to, print, television and radio, in the furtherance of its nonprofit, tax-exempt purposes; (j) To conduct teaching workshops and seminars in the furtherance of its tax- exempt purposes; (k) To assume our share of the responsibility and the privilege of serving our community and nation by the help of God, through human effort and ability. (I) To acquire, hold, operate, mortgage, hypothecate, and dispose of any property (real, personal or mixed) whenever necessary or appropriate to the carrying out of its nonprofit, tax-exempt status; and (m) To exercise such incidental powers as may reasonable be necessary to carry out the purposes for which the Corporation is established, provided that such incidental powers shall be exercised in a manner consistent with its tax-exempt status a religious organization as set forth in Section 501(c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America. • ARTICLE XI NONASSESSABILITY The private property of the Directors shall be nonassessable and shall not be subject to the payment of any corporate debts, nor shall the Directors of the Corporation become individually or corporately liable or responsible for any debts or liabilities of the Corporation. ARTICLE XII SEAL The President or Board of Directors shall provide a corporate seal,which shall be set forth below. -exempt purposes, the corporation shall have the following powers and authority; however, the corporation shall not be empowered, and is prohibited from engaging in any activity which is not allowed pursuant to Section oration shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors or the President may select. Section 4. Gifts. The President or Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i ARTICLE XIII AMENDMENT OF BYLAWS These Bylaws may be altered, amended or repealed, and new Bylaws may be adopted by a two thirds (2/3) majority vote of the Board of Directors at any regular or special meeting of the Board of Directors. At least fourteen (14)days written advance notice of said meeting shall be given to each member of the Board of Directors. Adopted by the full Board of Directors this . 21.jd day of Fe.h„-uu,4 , 200�. WITNESS my hand and seal in said County and State, the day and year last written above. �L ROTAAV• e of Nebnae� i . ,646 t11, /h�� r i BEVERLY J.HAZUKA �` G' 1A'Rmun.drp.Dec.31,200B 'Notary Public y:\wDOX\CLIENTS\15347\000\corp\SMH4732.DOC 5 ion to be executed this 15th day of March, 2010 Thomas C. Huston, Organizer 1161407.1 -3- p 0101111, f #: ESDA ._,,..�.\.N (.,.;G'1 mil t:Ni rV' I.)„,,,,, f 31',J1;NT �i7lrr. Board of Directors for Bethesda Urban CDC Title,Name,Address Executive Director/ Pastor Joseph L. Shannon, Sr. Sustainability Coordinator: 7184 North 80t Street, Omaha,NE 68122 Board Member/ Helene A. Shannon Family&Community Liaison: 7184 North 80`h Street, Omaha,NE 68122 Board Member/ Patrick W. Sanders, Sr. Public Relations: 8111 Girard Plaza, Omaha,NE 68122 Board Member/ Angela D. Sanders Research Specialist: 8111 Girard Plaza, Omaha,NE 68122 Jeremiah McGhee 45th and Bedford Ave Omaha,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 EXHIBIT "B" NEIGHBORHOOD STABILIZATION PROGRAM (NSP) CONTRACT NO. 0910S23, CFDA#14.228 BETHESDA HOMES,LLC LEASE-PURCHASE REHABILITATION PROJECT NON-RECOURSE REPAYABLE LOAN PROMISSORY NOTE PROJECT: NSP Housing Development Program (Contract No. 0910S23, CFDA#14.228) DEVELOPER: Bethesda Homes, LLC, a Nebraska Limited Liability Company Managing Member: Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation PLACE: Harrison Street to I-680, 72"d Street to Missouri River, Omaha,Nebraska LOAN NO.: DATE: LOAN AMOUNT: $1,080,000.00 ASSISTED UNITS: Seven (7) Abandoned and Foreclosed-upon Properties in area bounded by Harrison Street, I-680, 72"a Street and the Missouri River, Omaha, Nebraska (addresses to be determined at a later date) LEGAL DESCRIPTION: To Be Determined At a Later Date FOR VALUE RECEIVED, the Undersigned jointly and severally promises to pay to the order of the CITY OF OMAHA (hereinafter referred to as the "City"), acting by and through the Director of the Planning Department or its successors, the Principal sum of One Million Eighty Thousand and No/100 Dollars ($1,080,000.00), without interest. The Principal of this Note is payable on the first day after the Undersigned conveys, grants, mortgages, assigns or otherwise transfers their interest or a portion thereon in the property or improvements at and legally described above without the prior written consent of the said Director, and in lawful money of the United States at the principal office of the City of Omaha, Planning Department, 1819 Farnam Street, Room 1111, Omaha, Nebraska 68183 or at such other places as shall be designated by the City. cised in a manner consistent with its tax-exempt status a religious organization as set forth in Section 501(c)(3) of the Internal Revenue Code of 1954, as amended, of the United States of America. • ARTICLE XI NONASSESSABILITY The private property of the Directors shall be nonassessable and shall not be subject to the payment of any corporate debts, nor shall the Directors of the Corporation become individually or corporately liable or responsible for any debts or liabilities of the Corporation. ARTICLE XII SEAL The President or Board of Directors shall provide a corporate seal,which shall be set forth below. -exempt purposes, the corporation shall have the following powers and authority; however, the corporation shall not be empowered, and is prohibited from engaging in any activity which is not allowed pursuant to Section oration shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors or the President may select. Section 4. Gifts. The President or Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Non-Recourse Repayable Loan Bethesda Homes, LLC A Nebraska Limited Liability Company Page 2 The Undersigned reserve(s) the right to prepay at any time all or any part of the principal amount of this Note without the payment of penalties or premiums. In the event that the Undersigned shall fail to pay any installment of principal amount when due, and such default in payment continues for a period of fifteen (15) days after written notice thereof has been given by the City to the Undersigned, the City may at any time thereafter, at its option, declare the entire unpaid balance of the principal at once due and owing, without further notice. Failure of the City to exercise such option shall not constitute a waiver of such default. No default shall exist by reason of nonpayment of any required installment of the principal amount of this Note so long as the amount of any optional prepayments already made pursuant hereto equals or exceeds the amount of the required installments. If the principal amount is not paid during the calendar month which includes the due date, the Undersigned shall pay to the City a late charge of 4% per calendar month, or fraction thereof, on the amount past due and remaining unpaid. This note is secured by no less than a Second Deed of Trust subordinate to aggregate amounts not to exceed the total acquisition and rehabilitation cost minus $1,080,000.00 or a higher amount'approved by the Assistant Planning Director after all constructor/subcontractor bids are received, duly filed in the Office of the Douglas County Register of Deeds. In the event this Note should be reduced to judgment, such judgment shall bear interest thereon at the statutory rate,but not to exceed 9%per annum. If suit is instituted by the City to recover upon this Note, the Undersigned agrees to pay all costs of such collection, including reasonable attorneys' fees and court costs. This loan is a non-recourse loan; therefore, in the event of a default, the City shall rely solely upon the Property which is secured by the deed of trust which is the security for the non- • recourse repayable loan promissory note and will not initiate or participate in any claim or proceedings against the maker of the non-recourse repayable loan promissory note members or its partners (or the officers, directors or shareholders of any partner) for payment of any sum due under this non-recourse repayable loan promissory note or any other sum due under the deed of trust. DEMAND, protest and notice of demand and protest are hereby waived, and the Undersigned hereby waives, to the extent authorized by law, any and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this Note. time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors or the President may select. Section 4. Gifts. The President or Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Non-Recourse Repayable Loan Bethesda Homes, LLC A Nebraska Limited Liability Company Page 3 IN WITNESS WHEREOF, this Note has been duly executed by the Undersigned, as of the day and year set forth below. BY: BETHESDA HOMES, LLC a Nebraska Limited Liability Company BY: BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION, INC., a Nebraska Non-profit Religious Corporation, Managing Member By: Joseph L. Shannon, Sr. Date President/CEO APPROVED AS TO FORM: CITY ATTORNEY DATE Plnlsf1376-note 45th and Bedford Ave Omaha,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 EXHIBIT "B" • ACKNOWLEDGEMENT OF COVENANT RUNNING WITH LAND NEIGHBORHOOD STABILIZATION PROGRAM (NSP) CONTRACT NO. 0910S23, CFDA# 14.228 BETHESDA HOMES,LLC,LEASE-PURCHASE PROJECT WHEREAS, on , 20 ,by Resolution No. , the City Council of the City of Omaha authorized the execution of an Agreement (hereafter referred to as the "Agreement") between the City of Omaha, a Municipal Corporation of the Metropolitan class in the State of Nebraska (hereafter referred to as "the City") and Bethesda Homes, LLC, a Nebraska Limited Liability Company. Managing Member: Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, wherein the City would provide a Loan in an amount of One Million, Eighty Thousand and No/100 Dollars ($1,080,000.00) for the rehabilitation of seven (7) houses located in the area bounded by Harrison Street, I-680, 72nd Street and the Missouri River and the conveyance of the properties and rehabilitation financing for a lease-purchase project. The properties and improvements thereon, are legally described as: NOW, THEREFORE, Bethesda Homes, LLC, (hereinafter referred to as the "Owner") for itself, its successors and assigns, agrees that the restrictions and covenants in the Agreement shall be covenants running with the land, and that it, in any event and without regard to technical classification and designation, legal or otherwise, shall be binding, to the fullest extent permitted by law and equity, and enforceable by the City, its successors and assigns, against the Owner, its successors and assigns, to any part of the property that is the subject of the Agreement, or any interest therein and any party in the possession or occupancy of any part of said property. The Owner, for itself, its successors and assigns, further covenants and agrees, that without regard to whether the City or the United States is an owner of any interest in the land to which the covenants relate, the covenants running with the land shall remain in effect for fifteen (15) years during the Affordability Period that starts after the date of Project Close Out of the project, the period specified or referred to in Section 1.13 in the Agreement, or until such date thereafter to which it may be modified by proper amendment of the Agreement, on which date such covenants may terminate. The Owner, for itself, its successors and assigns, further covenants and agrees that this property shall be maintained as rental property through March 31, 2013; and, beginning April 1, 2013, the property can be sold to an eligible family with a gross annual household income at or below 50% of the Median Income by Family Size as established annually by the U.S. Department of Housing and Urban Development, household under terms and conditions mutually agreed upon by the City, NDED and the Owner for the term of this covenant. Page 1 of 2 Revised and approved 11/30/2009 lf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i Acknowledgement of Covenant Running with Land Neighborhood Stabilization Program (NSP) Contract No. 0910S23, CFDA#14.228 Bethesda Homes, LLC Page 2 • In the event of default, gross negligence or other substantial noncompliance, the outstanding amount of the loan at the time of default shall be due and payable immediately from the Owner, its successors and assigns, to the City. BETHESDA HOMES, LLC, a Nebraska Limited Liability Company By: BETHESDA URBAN COMMUNITY DEVELOPMENT CORPORATION, INC., a Nebraska Non-profit Religious Corporation By: Joseph L. Shannon, Sr. Date President/CEO STATE OF NEBRASKA ) ) § COUNTY OF DOUGLAS ) On this dayof 20 before me, the Undersigned, a NotaryPublic duly , lm � commissioned and qualified in and for said County, personally came Joseph L. Shannon, Sr., President and CEO of Bethesda Urban Community Development Corporation, Inc., a Nebraska Non- profit Religious Corporation; Managing Member of Bethesda Homes, LLC, a Nebraska Limited Liability Company, known to be the identical person whose name is affixed to the above and foregoing instrument as Acknowledgement of Covenant Running With Land, and he has acknowledged the same instrument and the execution thereof to be his voluntary act and deed for the purpose therein expressed on behalf of the company and corporation. In testimony whereof, I have hereunto set my hand and affixed my Notarial Seal at Omaha, Nebraska, on the day and date last above written. Notary Public My commission expires Plnlsf1376-running with land Page 2 of 2 Revised and approved 11/30/2009 r, for itself, its successors and assigns, further covenants and agrees, that without regard to whether the City or the United States is an owner of any interest in the land to which the covenants relate, the covenants running with the land shall remain in effect for fifteen (15) years during the Affordability Period that starts after the date of Project Close Out of the project, the period specified or referred to in Section 1.13 in the Agreement, or until such date thereafter to which it may be modified by proper amendment of the Agreement, on which date such covenants may terminate. The Owner, for itself, its successors and assigns, further covenants and agrees that this property shall be maintained as rental property through March 31, 2013; and, beginning April 1, 2013, the property can be sold to an eligible family with a gross annual household income at or below 50% of the Median Income by Family Size as established annually by the U.S. Department of Housing and Urban Development, household under terms and conditions mutually agreed upon by the City, NDED and the Owner for the term of this covenant. Page 1 of 2 Revised and approved 11/30/2009 lf of the Corporation any contribution, gift, bequest or devise for any purpose of the Corporation. ribed by the Board of Directors or by the President. (e) Delegating Powers to Other Officers: In case of the absence of any officer of the Corporation, or for any other reason that may seem sufficient to the Board, the President or the Board of Directors may delegate his duties and powers for the time being to any other officer, or to any director. RINCIPAL SIGN THIS APPLICATION. Net worth: General liability insurance carried? CI Yes 0 No State license number assigned to applicant,if applicable: LICENSE AND $ (Give limits) 6 PERMIT BOND FINANCIAL STATEMENT Serial Number and description(Please submit a copy or sample of the Date of instrument Payable to applicant only? ®Yesj No NECESSARY WHERE STATE IS form it was on.) If not,who is it payable to? THE OBLIGEE. P Y HAVE PRINCIPAL SIGN THIS APPLICATION. Are securities endorsed? Describe manner of loss Has notice of loss been given?0 YeED No LOST SECURITIES/ 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i xhib,r C. .0 C o = U E •c a) = SD > O O O o O O O O CD O O O O N E -p o O O CDLn It) O O CD C:) N c6 a) Q o Cc) co d• co (C co co N- N CO In N >,"- C co N CO I` In M O N- -a' O N- O N d c r LC) cocoC) C) co �- N"-- N CO COct E .(4 co Eft ff} Eft Eft Eft 6R CO Efl ER 6R Eft 6R Eft Eft `- a) q) LE a) 0 N -- o a (a .co G: a) O E ° . O c) as U O O O Co O O O Co O O O O O C C o OOOOLOOOOOOOOO L>+ N - R Eft Nici -O OLnN O Ln r- Cfl N N.: co- O d O T- d• Ln CO CO N- CO CO O) O) O O r' N U .� N- C H4 ER 03 H9 Eft EH Eft Eft Eft ER Eft Eft Eft o a) O II •N •£ Cm _c (Do tv U +-• E O E cpd E Ex O O NN (c 0 Co Lc) O O O In Ln O O O In O O In E d•td U c,"--.- r- � M O co 00 co 00 co f� N f� N- = 't ME O C) � co- Ln co- d• O M CO N I- O U � 1.0 O N.. d) 0. >O O co V• Ln Ln CO CO (O N- I- CO CO d) E3) CO Cr) >. Q. 0 - N Eft Ef} Eft Eft Eft Eft ER Eft 63 Eft Eft 6R ER Q E 2 • d coC7i I•- -OL- W C 0 co a) (15 a O F- -- r% .= a) v >. V O O O O O O O O O O O O O O _c as W e .' CO L o Ln Ln Ln Ln O O O O O In O O cE 'p �l M If) I� O) M CO O d I� �- ti c- CCa 0 co (B Ct f1 5 d - g O) M N. „- In co N Lf) co- N M O N in j+ a) L i. O a‘o C E 2 > � Cr) 69 � ER ER 03 CO CO CO ( � — = O co E E v "in• 2 U Ln OV L `O ate) c "- o y.. Til O W a) >, O c)cc = , c O c t o O O O O O O O CD o CD CD C:) > >, ea 1:1- Ln LC) Ln LC) Ln Ln Ln Ln Ln Ln O O O CD 7. L c c >, 0C el d• N � `V• N CDcO CO CO •d' I- CDO a3 C E ..CO'. En N N Cr) CO COd' d V• 'I' Ln LC) Ln CO ... Q. CO (6 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i EXHIBIT 2010 FAIR MARKET RENTS FOR EXISTING HOUSING (Effective October 1, 2009) OMAHA, NE-IA METROPOLITAN STATISTICAL AREA (Includes Council Bluffs, Iowa) Single Room Occupancy (SRO) $405 0 Bedrooms $540 1 Bedroom $614 2 Bedrooms $766 3 Bedrooms $1,023 4 Bedrooms $1,052 5 Bedrooms $1,209 6 Bedrooms $1,367 NOTES: Fair Market Rents (FMR) include utilities. The FMR for unit sizes larger than 4' bedrooms are calculated by adding 15% to the 4-bedroom FMR for each additional bedroom. EXAMPLE: The FMR for a 5-bedroom unit is 1.15 times the 4-bedroom FMR or $1,052 x 1.15 = $1,209. A 6-bedroom unit is 1.30 times the 4-bedroom FMR or $1,052 x 1.30 = $1,367. A 7-bedroom unit is 1.45 times the 4-bedroom FMR or 1,052 x 1.45 = $1,525 SRO — These units are typically smaller in size than a studio and are designed for occupancy by one person only. The units often do not contain food preparation or sanitary facilities; however, they may contain either or both. *75% of 0 Bedroom (75% of$540 = $405) Revised and approved 11 9 2009 O E cpd E Ex O O NN (c 0 Co Lc) O O O In Ln O O O In O O In E d•td U c,"--.- r- � M O co 00 co 00 co f� N f� N- = 't ME O C) � co- Ln co- d• O M CO N I- O U � 1.0 O N.. d) 0. >O O co V• Ln Ln CO CO (O N- I- CO CO d) E3) CO Cr) >. Q. 0 - N Eft Ef} Eft Eft Eft Eft ER Eft 63 Eft Eft 6R ER Q E 2 • d coC7i I•- -OL- W C 0 co a) (15 a O F- -- r% .= a) v >. V O O O O O O O O O O O O O O _c as W e .' CO L o Ln Ln Ln Ln O O O O O In O O cE 'p �l M If) I� O) M CO O d I� �- ti c- CCa 0 co (B Ct f1 5 d - g O) M N. „- In co N Lf) co- N M O N in j+ a) L i. O a‘o C E 2 > � Cr) 69 � ER ER 03 CO CO CO ( � — = O co E E v "in• 2 U Ln OV L `O ate) c "- o y.. Til O W a) >, O c)cc = , c O c t o O O O O O O O CD o CD CD C:) > >, ea 1:1- Ln LC) Ln LC) Ln Ln Ln Ln Ln Ln O O O CD 7. L c c >, 0C el d• N � `V• N CDcO CO CO •d' I- CDO a3 C E ..CO'. En N N Cr) CO COd' d V• 'I' Ln LC) Ln CO ... Q. CO (6 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i EXHIBIT 6— City of Omaha Planning Department Housing and Community Development Division 2009 HOME Program Rents Omaha,NE—IA MSA (Effective April 27,2009) HUD HOME Number of Bedrooms Program Limits Efficiency 1 2 3 4 5 6 Low HOME Rent Limit $534 $607 $757 $908 $1013 $1118 $1223 (effective 4/27/09) • High HOME Rent Limit , $534 $607 $757 $1011 $1041 $1197 $1353 (effective 4/27/09) FOR INFORMATION ONLY Fair Market Rent (effective 10/29/08) $534 $607 $757 $1011 $1041 $1197 $1353 50% Rent Limit $611 $655 $786 $908 $1013 $1118 $1223 (effective 10/29/08) 65% Rent Limit $775 $832 $1001 $1148 $1260 $1372 $1485 (effective 10/29/08) NOTE: HOME Program Rent Limits and Fair Market Rents (FMR) include utilities. Attached are the utility allowances for HOME Rents and Fair Market Rents. Deduct utility allowance from the rents to determine maximum rents to be paid by tenants who pay their own utilities. Tenant rents must not be adjusted until their leases are renewed. If on a month-to-month lease, please indicate MTM after the Recertification Lease Date on Tenant Survey Form) Revised and approved 11/9/2009 2009 Rents Ex O O NN (c 0 Co Lc) O O O In Ln O O O In O O In E d•td U c,"--.- r- � M O co 00 co 00 co f� N f� N- = 't ME O C) � co- Ln co- d• O M CO N I- O U � 1.0 O N.. d) 0. >O O co V• Ln Ln CO CO (O N- I- CO CO d) E3) CO Cr) >. Q. 0 - N Eft Ef} Eft Eft Eft Eft ER Eft 63 Eft Eft 6R ER Q E 2 • d coC7i I•- -OL- W C 0 co a) (15 a O F- -- r% .= a) v >. V O O O O O O O O O O O O O O _c as W e .' CO L o Ln Ln Ln Ln O O O O O In O O cE 'p �l M If) I� O) M CO O d I� �- ti c- CCa 0 co (B Ct f1 5 d - g O) M N. „- In co N Lf) co- N M O N in j+ a) L i. O a‘o C E 2 > � Cr) 69 � ER ER 03 CO CO CO ( � — = O co E E v "in• 2 U Ln OV L `O ate) c "- o y.. Til O W a) >, O c)cc = , c O c t o O O O O O O O CD o CD CD C:) > >, ea 1:1- Ln LC) Ln LC) Ln Ln Ln Ln Ln Ln O O O CD 7. L c c >, 0C el d• N � `V• N CDcO CO CO •d' I- CDO a3 C E ..CO'. En N N Cr) CO COd' d V• 'I' Ln LC) Ln CO ... Q. CO (6 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 11/02/2009 09: 09 _. 4024447543 ItLK PAGE 02/03 -41$11 OW Approval No 25i-0169 U.S. Department of Housing • Allowance for end,Urban Development • Office.of Public and Indian Housing Tenant-Furnished Utilities • Effective 10/1/2009 - Annuals and Other Services . 08/0/12009 - Initials/Transfers jUn4TYPO Single FamilylOuplex �„wr"Y Omaha Housing Authority } _—!... V --, - • Monte Holler Allowances _ _--I-- Utility or�crvlr,F 2 BR _ 0 BR __r. 1 BP .. 93 i0H 65 82 Heating 9. Natural Gas L_` 7h 84 97 . b. Electric • — 74 27 135 170 C. Bottle Gas 3113 . �— 180 203 230 119 143 �203 . d. 011 _ 88 _• _ 11 14_- 15 Cooking a Natural Gas _S� - 7... '------ 12 -�3 b.'Electric 5 • .61 --8 70 3 128 33 — c. Boole Gas �, --.— 33 41 qq -• 15 20 28 ,.� Other Electricity _. 14 17 18 7 '8 11 ---..�, Air Conditioning ____ 17 19 _ :., 11 • 1q —�—� 7 Water Heating a. NaturalGet; 8 10 13 16 20 • 3Q b, electric 23 . ... 4 '17 c, Settle Gee 1 34 37 3-''_' 28 • ��d, GII 13 18 18 22 24 _ 1 12 � 14 18 20 2?. Water - 16 Sewer 13 14 _, 18 - Trash Collection •�,.— Q A - "3 � q q Renge/Micrnwave .— 4 e 4 I! 6 Refrigerator— �~ — I -s eclf I — --` —�- Uijliiv or.Service per month cost ._ Other n Y �-- — --' ul�i allowance. .- eityo_ Actual Family Allowances To be used by the family co comp --_ Ce.ati1W ^•-� 0nmploto below for metal unit rented. •:-.—._ •• — e.a11 nle-Glric-Name of of Famlty _. :it�,onditlnni[t9 - letldsating_._ -- - ..._.— Water—._ +�ddross of tint 1o!a . aSeikeor-_-1--i--- ..[rA b C.ollectiort 1 aageLMi.cco3vtr3Ye • ,Refrigerator — Mumbs Ut 9edroame• Totnl 15 form HUD-52661 t12l971 fc( Hsnd000ks 7420,8 0 HAPPY 5nfnvote.1i1c :'N.�YJ.h9(111y40itW 7f0.COrt1 0C el d• N � `V• N CDcO CO CO •d' I- CDO a3 C E ..CO'. En N N Cr) CO COd' d V• 'I' Ln LC) Ln CO ... Q. CO (6 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i 11/02/2009 09:09 _4824447543 MLK PAGE 83/83 ---- --'__� _- _- _ -- � � oms^�nvmm "S77-i'`�� us. oenn**omo/11^o°|"g A||ovvooli;efor and urb*nn"" lnpxlcnu | �| ��u^V TcnaMt~�U[pished Utilities V�cc*/��moa » andOth�r SerVlG0s EMm eiv 1N1�00BAnnua)s ^e 08/01/200 '|nidnb/Trn»sio's ' '- ------~--- --- '' Wu|ti'Fum|ly ! r)' uh*Huunjng /\uKhority64 BPI 0 BR PIG _Heating � b. Electric. 30 c, Bottle��» ^~ | 14 Cooking a. Natural GB,k * 10 18 C, Bottle Ga — .--- -t .--- 6 7 9 . — f-- 1 33 -- sleutri; 14 37 34 — | Water .. Sewer Trash � n �*n�=°= � ----- Refrigerator \ \ noni � snnnfY �ucy�^ wx~ro/ro ily -- '_--_ � *mm � - � ~~_-__ _— --�'-� '-- omw roti| /x fon( na�n��o: Inc -- Hmriow um7ypC=mmm*� °.° /"wrp,^~"'~~^^ .� | ! ` 3Q b, electric 23 . ... 4 '17 c, Settle Gee 1 34 37 3-''_' 28 • ��d, GII 13 18 18 22 24 _ 1 12 � 14 18 20 2?. Water - 16 Sewer 13 14 _, 18 - Trash Collection •�,.— Q A - "3 � q q Renge/Micrnwave .— 4 e 4 I! 6 Refrigerator— �~ — I -s eclf I — --` —�- Uijliiv or.Service per month cost ._ Other n Y �-- — --' ul�i allowance. .- eityo_ Actual Family Allowances To be used by the family co comp --_ Ce.ati1W ^•-� 0nmploto below for metal unit rented. •:-.—._ •• — e.a11 nle-Glric-Name of of Famlty _. :it�,onditlnni[t9 - letldsating_._ -- - ..._.— Water—._ +�ddross of tint 1o!a . aSeikeor-_-1--i--- ..[rA b C.ollectiort 1 aageLMi.cco3vtr3Ye • ,Refrigerator — Mumbs Ut 9edroame• Totnl 15 form HUD-52661 t12l971 fc( Hsnd000ks 7420,8 0 HAPPY 5nfnvote.1i1c :'N.�YJ.h9(111y40itW 7f0.COrt1 0C el d• N � `V• N CDcO CO CO •d' I- CDO a3 C E ..CO'. En N N Cr) CO COd' d V• 'I' Ln LC) Ln CO ... Q. CO (6 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i EXHIBIT 42) PROGRAM INCOME "Program income" means gross income received by the Recipient or a Subrecipient directly generated from the uses of CDBG/HOME and other federal funds. When such income is generated by an activity that is only partially assisted with CDBG/HOME and other federal funds, the income shall be prorated to reflect the percentage of CDBG/HOME and other federal funds used. (1) Program income includes, but is not limited to the following: (i) Proceeds from the disposition by sale or long term lease of real property purchased or improved with CDBG/HOME and other federal funds; (ii) Proceeds from the disposition of equipment purchased with CDBG/HOME and other federal funds; (iii) Gross income from the use or rental of real or personal property acquired by the Recipient or a Subrecipient with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (iv) Gross income from the use or rental of real property owned by the Recipient or a Subrecipient that was constructed or improved with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (v) Payments of principal and interest on loans made using CDBG/HOME and other federal funds; (vi) Proceeds from the sale of loans made with CDBG/HOME and other federal funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG/HOME and other federal funds; (viii) Interest earned on funds held in a revolving fund account; (ix) Interest earned on program income pending disposition of such income; and (x) Funds collected through special assessments made against properties owned and occupied by households not of low- and moderate-income, where such assessments are used to recover all or part of the CDBG/HOME and other federal portion of a public improvement. (2) Program income does not include interest earned (except for interest described in §570.513) on cash advances from the US Treasury. Such interest shall be remitted to HUD for transmittal to the US Treasury and will not be reallocated under Section 106(c) or (d) of the Act. Examples of other receipts that are not considered program income are proceeds from fundraising activities carried out by Subrecipients receiving CDBG/HOME and other federal assistance; funds collected through special assessments used to recover the non- CDBG/HOME and other federal portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG/HOME and other federal funds when such disposition occurs after the applicable time period specified in §570.503(b)(8) for Subrecipient-controlled property or §570.505 for Recipient-controlled property for CDBG program funds and §92.503 for HOME program funds. Revised 1/11/06 CC/N Eft Eft Eft Eft Eft ER IA Eft Eft Eft Eft Eft Eft •U ` ILO O a) f a) 0 E6 = E) a) ° oo c2 O O O O CD O CD CD O CD CI O O c › a) o o L(nfl !ifs) COLQn) LnO coO OLnOMLn OIO� LMn O a) :- ` C)OMf N N , N d co- a .Q— 2 Q4) O (NI. N ,16 >, '—' ER Eft Eft Eft ER to Eft Eft Eft Eft Ef} Eft Eft > N Q LL CD (13 O O c E (6 O O E ,- .c_ U In _ _ EO N a) ca a) to- a) 'Q Q >, Ea) O 0 c ~ O N c 7:3 a) o _ a) >• N Cl) Ln (0 ti co C)) - V- 1. CO E O � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i - --,..- . .... ..« a....aa..aa v.......•v 1WS11....vi ♦.%v iva va wiW 4,4114.a lbl V111V11�J ... 1 I 1 V1 JJ ;. j CIRCULAR A-no REVISED 11/19/93 As Further Amended 9/3o/99 TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non- Profit Organizations • 1. Purpose.This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other nonprofit organizations. 2. Authority. Circular A-110 is issued under the authority of 31 U.S.C. 503 (the Chief Financial Officers Act), 31 U.S.C. 1111, 41 U.S.C.405 (the Office of Federal Procurement Policy Act), Reorganization Plan No. 2 of 1970, and E.O. 11541 ("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President"). • 3. Policy. Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the provisions of the statute shall govern. • The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants, contracts, or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102, "Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies' grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However, this Circular applies to subawards made by State and local governments to organizations covered by this Circular. Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments, organizations under the jurisdiction of foreign governments, and international organizations. 4. Definitions. Definitions of key terms used in this Circular are contained in Section_.2 in the,Attachment. 5. Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education, hospitals, and other non-profit organizations are set forth in this Circular. Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6. OMB Responsibilities. OMB will review agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB, as indicated in Section_.4 in the Attachment. Exceptions will only be made in particular cases where adequate justification is presented. 7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone(202) 395- 3993. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 1 0.html • 8/31/2009 � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i c � . • • 2 ~7, • 8.Termination Review Date.This Circular will have a policy review three years from date of issuance. 9. Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees will be adopted by agencies in codified regulations within six months after publication in the Federal Register. Earlier implementation is encouraged. Attachment Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations SUBPART A-GENERAL' • Sec. • .1 Purpose. .2 Definitions. .3 Effect on other issuances. .4 Deviations. .5 Subawards. • SUBPART B -PRE-AWARD REQUIREMENTS .10 Purpose. .11 Pre-award policies. • _.12 Forms for applying for Federal assistance. • _.13 Debarment and suspension. .14 Special award conditions. _.15 Metric system of measurement. • _.16 Resource Conservation and Recovery Act. .17 Certifications and representations. SUBPART C -POST-AWARD REQUIREMENTS Financial and Program Management _.20 Purpose of financial and program management. • _.21 Standards for financial management systems. _.22 Payment. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 1 0.html • 8/31/2009 to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants, contracts, or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102, "Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies' grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However, this Circular applies to subawards made by State and local governments to organizations covered by this Circular. Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments, organizations under the jurisdiction of foreign governments, and international organizations. 4. Definitions. Definitions of key terms used in this Circular are contained in Section_.2 in the,Attachment. 5. Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education, hospitals, and other non-profit organizations are set forth in this Circular. Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6. OMB Responsibilities. OMB will review agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB, as indicated in Section_.4 in the Attachment. Exceptions will only be made in particular cases where adequate justification is presented. 7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone(202) 395- 3993. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 1 0.html • 8/31/2009 � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i -c- `:i .23 Cost sharing or matching. _.24 Program income. • .25 Revision of budget and program plans. .26 Non-Federal audits. _.27 Allowable costs. .28 Period of availability of funds. • _.29 Conditional exemptions. Property Standards _.30 Purpose of property standards. _.31 Insurance coverage. _.32 Real property. _.33 Federally-owned and exempt property. _.34 Equipment. _.35 Supplies and other expendable property. .36 Intangible property. _.37 Property trust relationship. Procurement Standards _.40 Purpose of procurement standards. _.41 Recipient responsibilities. .42 Codes of conduct, _.43 Competition. _.44 Procurement procedures. _.45 Cost and price analysis. .46 Procurement records. .47 Contract administration. _.48 Contract provisions. Reports and Records _.50 Purpose of reports and records. http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a 110.html 8/31/2009 rd conditions. _.15 Metric system of measurement. • _.16 Resource Conservation and Recovery Act. .17 Certifications and representations. SUBPART C -POST-AWARD REQUIREMENTS Financial and Program Management _.20 Purpose of financial and program management. • _.21 Standards for financial management systems. _.22 Payment. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 1 0.html • 8/31/2009 to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants, contracts, or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102, "Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies' grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However, this Circular applies to subawards made by State and local governments to organizations covered by this Circular. Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments, organizations under the jurisdiction of foreign governments, and international organizations. 4. Definitions. Definitions of key terms used in this Circular are contained in Section_.2 in the,Attachment. 5. Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education, hospitals, and other non-profit organizations are set forth in this Circular. Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6. OMB Responsibilities. OMB will review agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB, as indicated in Section_.4 in the Attachment. Exceptions will only be made in particular cases where adequate justification is presented. 7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone(202) 395- 3993. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 1 0.html • 8/31/2009 � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i .51 Monitoring and reporting program performance. • .52 Financial reporting. .53 Retention and access requirements for records. Termination and Enforcement .60 Purpose of termination and enforcement. • .61 Termination. • . .62 Enforcement. • SUBPART D -AFTER-THE-AWARD REQUIREMENTS • .70 Purpose. • _.71 Closeout procedures. _.72 Subsequent adjustments and continuing responsibilities. ' .73 Collection of amounts due. APPENDIX A - CONTRACT PROVISIONS SUBPART A-General • • _.1 Purpose. This Circular establishes uniform administrative requirements for Federal grants and agreements awarded to institutions of higher education, hospitals, and other non-profit organizations. Federal awarding agencies shall not impose additional or•inconsistent requirements, except as provided in Sections .4, and .14 or unless specifically required by Federal statute or executive order. Non-profit organizations that implement Federal programs for the States are also subject to State requirements. • .2 Definitions. (a)Accrued expenditures means the charges incurred by the recipient during a given period requiring the provision of funds for: (1) goods and other tangible property received; (2) services performed by employees, contractors, subrecipients, and other payees; and, (3)other amounts becoming owed under programs for which no current services or performance is required. (b)Accrued income means the sum of: (1) earnings during a given period from (i) services performed by the recipient, and (ii) goods and other tangible property delivered to purchasers, and (2) amounts becoming owed to the recipient for which no current services or performance is required by the recipient. (c)Acquisition cost of equipment means the net invoice price of the equipment, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, shall be included or excluded from the unit acquisition cost in accordance with the recipient's regular.accounting practices. • (d)Advance means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon its request either before outlays are made by the recipient or through the use of predetermined payment schedules. • • (e)Award means financial assistance that provides support or stimulation to accomplish a public purpose. Awards • include grants and other agreements in the form of money or property in lieu of money, by the Federal Government to an eligible recipient.The term does not include: technical assistance,which provides services instead of money; other assistance in the form of loans, loan guarantees, interest subsidies, or insurance; direct payments of any kind http://www.whitehouse.gov/omb/rewrite/circulars/a 110/all0.html . 8/31/2009 al statute or are approved by OMB. 6. OMB Responsibilities. OMB will review agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB, as indicated in Section_.4 in the Attachment. Exceptions will only be made in particular cases where adequate justification is presented. 7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone(202) 395- 3993. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 1 0.html • 8/31/2009 � � a) EO CD •- ++ U •2 RIB N CO O EB .> X Lc) LL Z U 'a W Eft / 0 Yes No When? To Whom? 7 CERTIFICATE If registered,in whose name? Ira check,has payment been stopped? If a deed of trust or note,has either been involved in a lawsuit?Q OF TITLE BOND es�Io If so,when? Yes No Was a judgment obtained? Yes 0 No FINANCIAL STATEMENT NECESSARY. Vehicle Make Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i to individuals; and, contracts which are required to be entered into and administered under procurement laws and regulations. • (f) Cash contributions means the recipient's cash outlay, including the outlay of money contributed to the recipient by third parties. (g) Closeout means the process by which a Federal awarding agency determines that all applicable administrative actions and all required work of the award have been completed by the recipient and Federal awarding agency. (h) Contract means a procurement contract under an award or subaward, and a procurement subcontract under a recipient's or subrecipient's contract. (i) Cost sharing or matching means that portion of project or program costs not borne by the Federal Government. (j) Date of completion means the date on which all work under an award is completed or the date on the award document, or any supplement or amendment thereto, on which Federal sponsorship ends. (k) Disallowed costs means those charges to an award that the Federal awarding agency determines to be unallowable, in accordance with the applicable Federal cost principles or other terms and conditions contained in the award. (I) Equipment means tangible nonexpendable personal property including exempt property charged directly to the award having a useful life of more than one year and an acquisition cost of$5000 or more per unit. However, consistent with recipient policy, lower limits may be established. (m) Excess property means property under the control of any Federal awarding agency that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities. (n) Exempt property means tangible personal property acquired in whole or in part with Federal funds,where the Federal awarding agency has statutory authority to vest title'in the recipient without further obligation to the Federal . Government.An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), for property acquired under an award to conduct basic or applied research by a non-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research. (o) Federal awarding agency means the Federal agency that provides an award to the recipient. (p) Federal funds authorized means the total amount of Federal funds obligated by the Federal Government for use by the recipient. This amount may include any authorized carryover of unobligated funds from prior funding periods when permitted by agency regulations or agency implementing instructions. (q) Federal share of real property, equipment, or supplies means that percentage of the property's acquisition costs and any improvement expenditures paid with Federal funds. (r) Funding period means the period of time when Federal funding is available for obligation by the recipient. (s) Intangible property and debt instruments means, but is not limited to, trademarks, copyrights, patents and patent applications and such property as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership,whether considered tangible or intangible. (t) Obligations.means the amounts of orders placed, contracts and grants awarded, services received and similar transactions during a given period that require payment by the recipient during the same or a future period. (u) Outlays or expenditures means charges made to the project or program. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of cash disbursements for direct charges for goods and services, the amount of indirect expense charged, the value of third party in-kind contributions applied and the amount of cash advances and payments made to subrecipients. For reports prepared on an accrual basis, outlays are the sum of cash disbursements for direct charges for goods and services,the amount of indirect expense incurred, the value of in-kind contributions applied, and the net increase(or decrease) in the amounts owed by the recipient for goods and other property received,for services performed by employees, contractors, subrecipients and other payees and other amounts becoming owed under programs for which no current services or performance are rent http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 Vehicle Model Vehicle Year Vehicle VIN i HAVE PRINCIPAL SIGN THIS APPLICATION. r Is there a lien or lien holder? El Yes[]No If yes,list and explain. CNA is a registered service mark,trade name and domain name of CNA Financial Corporation. No part of this material,including the CNA Surety logo.may be reproduced �/ r without written permission from CNA Surety Corporation. CNA SURETY P.O.Box 5077 Sioux Falls,South Dakota 57117-5077 1 80 1-6053 www cnasure 1-605-335-0357 ty com i (v) Personal property means property of any kind except real property, It may be tangible, having physical existence, or intangible, having no physical existence, such as copyrights,patents, or securities. • (w) Prior approval means written approval by an authorized official evidencing prior consent. (x) Program income means gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award (see exclusions in paragraphs .24 (e) and (h)). Program income includes, but is not limited to, income from fees for services performed,the.use or rental of real or personal property acquired under federally-funded projects, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal awarding agency regulations or the •terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them. • (y) Project costs means all allowable costs,as set forth in the applicable Federal cost principles, incurred by a recipient and the value of the contributions made by third parties in accomplishing the objectives of the award during the project period. (z) Project period means the period established in the award document during which Federal sponsorship begins and ends. • (aa) Property means, unless otherwise stated, real property, equipment, intangible property and debt instruments. (bb) Real property means land, including land improvements, structures and appurtenances thereto, but excludes movable machinery and equipment. (cc) Recipient means an organization receiving financial assistance directly from Federal awarding agencies to carry out a project or program.The term includes public and private institutions of higher education, public and private hospitals, and other quasi-public and private non-profit organizations such as, but not limited to, community action agencies, research institutes, educational associations, and health centers. The term may include commercial organizations,foreign or international organizations(such as agencies of the United Nations)which are recipients, subrecipients, or contractors or subcontractors of recipients or subrecipients at the discretion of the Federal awarding agency. The term does not include government-owned contractor-operated facilities or research centers providing continued support for mission-oriented, large-scale programs that are government-owned or controlled, or are designated as federally-funded research and development centers. (dd) Research and development means all research activities, both basic and applied, and all development activities that are supported at universities, colleges, and other non-profit institutions. "Research" is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied. "Development" is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function. (ee) Small awards means a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41 U.S.C.403(11)(currently $25,000). • (ff) Subaward means an award of financial assistance in the form of money, or property in lieu of money, made under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient.The term includes financial assistance when provided by any legal agreement, even if the agreement is called a contract, but does not include procurement of goods and services nor does it include any form of assistance which is excluded from the definition of"award" in paragraph (e). (gg) Subrecipient means the legal entity to which a subaward is made and which is accountable to the recipient for the use of the funds provided. The term may include foreign or international organizations(such as agencies of the United Nations)at the discretion of the Federal awarding agency. (hh)Supplies means all personal property excluding equipment, intangible property, and debt instruments as • defined in this section, and inventions of a contractor conceived or first actually reduced to practice in the performance of work under a funding agreement("subject inventions"),as defined in 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 \.ilcUlal 1NU. .t1-11U -- U1111U1111 t`1u1111u1JuaLlvc 1\cL1u1Ic111c11LJ 101 vIa11LJ aiiu t'1gicc11icL1LJ ... r ac / V1 J.J (ii) Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship under an award, pending corrective action by the recipient or pending a decision to terminate the award by the Federal awarding agency..Suspension of an award is a separate action from suspension under Federal agency regulations implementing E.O.s 12549 and 12689, "Debarment and Suspension." (jj) Termination means the cancellation of Federal sponsorship, in whole or in part, under an agreement at any time prior to the date of completion. • (kk) Third party in-kind contributions means the value of non-cash contributions provided by non-Federal third parties.Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefiting and specifically identifiable to the project or program. • • (II) Unliquidated obligations, for financial reports prepared on a cash basis, means the amount of obligations incurred by the recipient that have not been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded. (mm) Unobligated balance means the portion of the funds authorized by the Federal awarding agency that has not been obligated by the recipient and is determined by deducting the cumulative obligations from the cumulative funds authorized. (nn) Unrecovered indirect cost means the difference between the amount awarded and the amount which could have been awarded under the recipient's approved negotiated indirect cost rate. • (oo)Working capital advance means a procedure where by funds are advanced to the recipient to cover its estimated disbursement needs for a given initial period. _.3 Effect on other issuances, For awards subject to this Circular, all administrative requirements of codified program regulations, program manuals, handbooks and other nonregulatory materials which are inconsistent with • the requirements of this Circular shall be superseded, except to the extent they are required by statute, or authorized in accordance with the deviations provision in Section_.4. • _.4 Deviations.The Office of Management and Budget(OMB) may grant exceptions for classes of grants or recipients subject to the requirements of this Circular when exceptions are not prohibited by statute. However, in the interest of maximum uniformity, exceptions from the requirements of this Circular shall be permitted only in unusual • circumstances. Federal awarding agencies may apply more restrictive requirements to a class of recipients when approved by OMB. Federal awarding agencies may apply less restrictive requirements when awarding small awards, except for those requirements which are statutory. Exceptions on a case-by-case basis may also be made by Federal awarding agencies. .5 Subawards. Unless sections of this Circular specifically exclude subrecipients from coverage, the provisions of this Circular shall be applied to subrecipients performing work under awards if such subrecipients are institutions of higher education, hospitals or other non-profit organizations. State and local government subrecipients are subject to the provisions of regulations implementing the grants management common rule,"Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,"published at 53 FR 8034 (3/11/88). • SUBPART B -Pre-Award Requirements _.10 Purpose. Sections_.11 through_.17 prescribes forms and instructions and other pre-award matters to be used in applying for Federal awards. • .11 Pre-award policies. (a) Use of Grants and Cooperative Agreements, and Contracts. In each instance,the Federal awarding agency shall decide on the appropriate award instrument(i.e., grant, cooperative agreement, or contract).The Federal Grant and Cooperative Agreement Act (31 U.S.C:6301-08)governs the use of grants, cooperative agreements and contracts. A grant or cooperative agreement shall be used only when the principal purpose of a transaction is to accomplish a • public purpose of support or stimulation authorized by Federal statute. The statutory criterion for choosing between grants and cooperative agreements is that for the latter,"substantial involvement is expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement."Contracts shall be used when the principal purpose is acquisition of property or services for the direct http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 "subject inventions"),as defined in 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 benefit or use of the Federal Government. (b) Public Notice and Priority Setting. Federal awarding agencies shall notify the public of its intended funding priorities for discretionary grant programs, unless funding priorities are established by Federal statute. • .12 Forms for applying for Federal assistance. (a) Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part.1320, "Controlling Paperwork Burdens on the Public,"with regard to all forms used by the Federal awarding agency in place of or as a supplement to the Standard Form 424(SF-424) series. (b)Applicants shall use the SF-424 series or those forms and instructions prescribed by the Federal awarding agency. (c) For Federal programs covered by E.O. 12372, "Intergovernmental Review of Federal Programs,"the applicant shall complete the appropriate sections of the SF-424(Application for Federal Assistance) indicating whether the application was subject to review by the State Single Point of Contact(SPOC). The name and address of the SPOC for a particular State can be obtained from the Federal awarding agency or the Catalog of Federal Domestic Assistance. The SPOC shall advise the applicant whether the program for which application is made has been selected by that State for review. (d) Federal awarding agencies that do not use the SF-424 form should indicate whether the application is subject to review by the State under E.O. 12372. • _.13 Debarment and suspension. Federal awarding agencies and recipients shall comply with the nonprocurement debarment and suspension common rule implementing E.O.s 12549 and 12689, "Debarment and Suspension."This •common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. _.14 Special award conditions. If an applicant or recipient: (a) has a history of poor performance, (b) is not financially stable, (c) has a management system that does not meet the standards prescribed in this Circular, (d) has not conformed to the terms and conditions of a previous award, or(e) is not otherwise responsible, Federal awarding agencies may impose additional requirements as needed, provided that such applicant or recipient is notified in writing as to: the nature of the additional requirements, the reason why the additional requirements are being imposed, the nature of the corrective action needed, the time allowed for completing the corrective actions, and the method for requesting reconsideration of the additional requirements imposed. Any special conditions shall be promptly removed once the conditions that prompted them have been corrected. .15 Metric system of measurement.The Metric Conversion Act, as amended by the Omnibus Trade and Competitiveness Act(15 U.S.C. 205) declares that the metric system is the preferred measurement system for U.S. trade and commerce. The Act requires each Federal agency to establish a date or dates in consultation with the Secretary of Commerce, when the metric system of measurement will be used in the agency's procurements, grants, and other business-related activities. Metric implementation may take longer where the use of the system is initially impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities. Federal awarding agencies shall follow the provisions of E.O. 12770,"Metric Usage in Federal Government Programs." _.16 Resource Conservation and Recovery Act (RCRA) (Pub. L. 94-580 codified at 42 U.S.C. 6962). Under the Act, any State agency or agency of a political subdivision of a State which is using appropriated Federal funds must comply with Section 6002. Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection Agency (EPA) (40 CFR parts 247-254).Accordingly, State and local institutions of higher education, hospitals, and non-profit organizations that receive direct Federal awards or other Federal funds shall give preference in their procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA guidelines. .17 Certifications and representations. Unless prohibited by statute or codified regulation, each Federal awarding agency is authorized and encouraged to allow recipients to submit certifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 �11V1-41L1.1 _I. . 11711 V — 111111V1111 11U11111110L1t4L4 V 1\VL.L411V111V11LJ 11/1 141 C411L0 C111,1 1151VV111V11LJ ... 1 CLaL. / 1/1 JJ Financial and Program Management • .20 Purpose of financial and program management. Sections .21 through .28 prescribe standards for financial management systems, methods for making payments and rules for: satisfying cost sharing and matching requirements, accounting for program income, budget revision approvals, making audits, determining allowability of • cost, and establishing fund availability. .21 Standards for financial management systems. (a) Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b) Recipients'financial management systems shall provide for the following. • (1)Accurate, current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52. If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system. These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. • (2) Records that identify adequately the source and application of funds for federally-sponsored activities. These records shall contain information pertaining to Federal awards,authorizations, obligations, unobligated balances, assets, outlays, income and interest. (3) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. (4) Comparison of outlays with budget amounts for each award. Whenever appropriate, financial information should be related to performance and unit cost data. (5)Written procedures to minimize the time elapsing between the transfer of funds to the recipient from the • U.S. Treasury and the issuance or redemption of checks,warrants or payments by other means for program purposes by the recipient.To the extent that the provisions of the Cash Management Improvement Act • (CMIA) (Pub. L. 101-453)govern, payment methods of State agencies, instrumentalities, and fiscal agents • shall be consistent with CMIA Treasury-State Agreements or the CMIA default procedures codified at 31 CFR part 205,"Withdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs." (6) Written procedures for determining the reasonableness, allocability and allowability of costs in accordance with the.provisions of the applicable Federal cost principles and the terms and conditions of the award. (7)Accounting records including cost accounting records that are supported by source documentation. (c) Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient,the Federal awarding agency, at its discretion, may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government. • (d) The Federal awarding agency may require adequate fidelity bond coverage where the recipient lacks sufficient coverage to protect the Federal Government's interest. (e) Where bonds are required in the situations described above, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties, as prescribed in 31 CFR part 223, "Surety Companies Doing Business with the United States." _.22 Payment. (a) Payment methods shall minimize the time elapsing between.the transfer of funds from the United States Treasury and the issuance or redemption of checks,warrants, or payment by other means by the recipients. Payment methods of State agencies or instrumentalities shall be consistent with Treasury-State CMIA agreements or default procedures codified at 31 CFR part 205. http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al10.html 8/31/2009 ded with Federal funds to the purchase of recycled products pursuant to the EPA guidelines. .17 Certifications and representations. Unless prohibited by statute or codified regulation, each Federal awarding agency is authorized and encouraged to allow recipients to submit certifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (b) Recipients are to be paid in advance, provided they maintain or demonstrate the willingness to maintain: (1) written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient, and(2)financial management systems that meet the standards for fund control and accountability as established in Section_.21. Cash advances to a recipient organization shall be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the recipient organization in carrying out the purpose of the approved program or project. The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the recipient organization for direct program or project costs and the proportionate share of any allowable indirect costs. (c)Whenever possible, advances shall be consolidated to cover anticipated cash needs for all awards made by the Federal awarding agency to the recipient. (1)Advance payment mechanisms include, but are not limited to, Treasury check and electronic funds transfer. .(2)Advance payment mechanisms are subject to 31 CFR part 205. (3) Recipients shall be authorized to submit requests for advances and reimbursements at least monthly when electronic fund transfers are not used. • (d) Requests for Treasury check advance payment shall be submitted on SF-270,"Request for Advance or Reimbursement,"or other forms as may be authorized by OMB. This form is not to be used when Treasury check advance payments are made to the recipient automatically through the use of a predetermined payment schedule or if precluded by special Federal awarding agency instructions for electronic funds transfer. • (e) Reimbursement is the preferred method when the requirements in paragraph (b)cannot be met. Federal awarding agencies may also use this method on any construction agreement, or if the major portion of the construction project is accomplished through private market financing or Federal loans, and the Federal assistance constitutes a minor portion of the project. • (1)When the reimbursement method is used, the Federal awarding agency shall make payment within 30 days after receipt of the billing, unless the billing is improper. • (2) Recipients shall be authorized to submit request for reimbursement at least monthly when electronic funds transfers are not used. (f) If a recipient cannot meet the criteria for advance payments and the Federal awarding agency has determined that reimbursement is not feasible because the recipient lacks sufficient working capital,the Federal awarding agency may provide cash on a working capital advance basis. Under this procedure, the Federal awarding agency shall advance cash to the recipient to cover its estimated disbursement needs for an initial period generally geared to the awardee's disbursing cycle. Thereafter, the Federal awarding agency shall reimburse the recipient for its actual cash disbursements. The working capital advance method of payment shall not be used for recipients unwilling or unable to provide timely advances to their subrecipient to meet the subrecipient's actual cash disbursements. (g)To the extent available, recipients shall disburse funds available from repayments to and interest earned on a revolving fund, program income, rebates, refunds, contract settlements, audit recoveries and interest earned on such funds before requesting additional cash payments. • (h) Unless otherwise required by statute, Federal awarding agencies shall not withhold payments for proper charges made by recipients at any time during the project period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (1) Except for situations described in paragraph (i)(2), Federal awarding agencies shall not require separate depository accounts for funds provided to a recipient or establish any eligibility requirements for depositories for funds provided to a recipient. However, recipients must be able to account for the receipt, obligation and expenditure of funds. (2)Advances of Federal funds shall be deposited and maintained in insured accounts whenever possible. (j) Consistent with the national goal of expanding the opportunities for women-owned and minority-owned business enterprises, recipients shall be encouraged to use women-owned and minority-owned banks (a bank which is owned at least 50 percent by women or minority group members). • • (k) Recipients shall maintain advances of Federal funds in interest bearing accounts, unless(1), (2)or(3) apply. (1)The recipient receives less than $120,000 in Federal awards per year. (2)The best reasonably available interest bearing account would not be expected to earn interest in excess of$250 per year on Federal cash balances. (3)The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources. (I) For those entities where CMIA and its implementing regulations do not apply, interest earned on Federal advances deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services, Payment Management System, Rockville, MD 20852. Interest amounts up to$250 per year may be retained by the recipient for administrative expense. State universities and hospitals shall comply with CMIA, as it pertains to interest. If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written approval from the Federal awarding agency, it waives its right to recover the interest under CMIA. • (m) Except as noted elsewhere in this Circular, only the following forms shall be authorized for the recipients in requesting advances and reimbursements. Federal agencies shall not require more than an original and two copies of these forms. (1) SF-270, Request for Advance or Reimbursement. Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined • advance methods are not used. Federal awarding agencies, however, have the option of using this form for construction programs in lieu of the SF-271, "Outlay Report and Request for Reimbursement for Construction Programs." (2) SF-271, Outlay Report and Request for Reimbursement for Construction Programs. Each Federal awarding agency shall adopt the SF-271 as the standard form to be used for requesting reimbursement for construction programs. However, a Federal awarding agency may substitute the SF-270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (4)Are allowable under the applicable cost principles. • (5)Are not paid by the Federal Government under another award, except where authorized by Federal • statute to be used for cost sharing or matching. • (6)Are'provided for in the approved budget when required by the Federal awarding agency. (7) Conform to other provisions of this Circular, as applicable. (b) Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of the Federal awarding agency. • (c) Values for recipient contributions of services and property shall be established in accordance with the applicable cost principles:If a•Federal awarding agency authorizes recipients to donate buildings or land for construction/facilities acquisition projects or long-term use, the value of the donated property for cost sharing,or matching shall be the lesser of(1) or(2). • (1)The certified value of the remaining life of the property recorded in.the recipient's accounting records at the time of donation. • (2)The current fair market value. However, when there is sufficient justification, the Federal awarding agency may approve the use of the current fair market value of the donated property, even if it exceeds the certified value at the time of donation to the project. • (d) Volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for volunteer services shall be consistent with those paid for similar work in the recipient's organization. In those instances in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market in which the recipient competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation. • • (e) When an employer other than the recipient furnishes the services of an employee,these services shall be valued at the employee's regular rate of pay(plus an amount of fringe benefits that are reasonable, allowable, and allocable, but.exclusive of overhead costs), provided these services are in the same skill for which the employee is normally paid. (f) Donated supplies may include such items as expendable equipment, office supplies, laboratory supplies or workshop and classroom supplies. Value assessed to donated supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. • http://www.Whitehouse.gov/omb/rewrite/circulars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 V 11VLL11A1 1IV. I] 11V VL111 V111111LL1111111JL1 1.4.1.1 V V 1\Vli1 11 V111Vll I.J 1V1 Vl5411]U ]411LL 1161 VV111 V11... 1 4A6V 1✓ V1 ✓✓ (g)The method used for determining cost sharing or matching for donated equipment, buildings and land for which title passes to the recipient may differ according to the purpose of the award, if(1) or(2) apply. (1) If the purpose of the award is to assist the recipient in the acquisition of equipment, buildings or land,the total value of the donated property may be claimed as cost sharing or matching. • (2) If the purpose of the award is to support activities that require the use of equipment, buildings or land, normally only depreciation or use charges for equipment and buildings may be made. However, the full value of equipment or other capital assets and fair rental charges for land may be allowed, provided that the Federal awarding agency has approved the charges. (h)The value of donated property shall be determined in accordance with the usual accounting policies of the recipient, with the following qualifications. • • • (1)The value of donated land and buildings shall not exceed its fair market value at the time of donation to the recipient as established by an independent appraiser(e.g., certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient. (2)The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation. • (3)The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned building in the same locality. (4)The value of loaned equipment shall not exceed its fair rental value. • (5)The following requirements pertain to the recipient's supporting records for in-kind contributions from third parties. (i)Volunteer services shall be documented and, to the extent feasible, supported by the same methods used by the recipient for its own employees. • (ii) The basis for determining the valuation for personal service, material, equipment, buildings and land shall be documented. _.24 Program income. • (a) Federal awarding agencies shall apply the standards set forth in this section in requiring recipient organizations to account for program income related to projects financed in whole or in part with Federal funds. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a 1 1 0.html 8/31/2009 donated supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. • http://www.Whitehouse.gov/omb/rewrite/circulars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (b) Except as provided in paragraph (h) below, program income earned during the project period shall be retained by the recipient and, in accordance with Federal awarding agency regulations or the terms and conditions of the award, shall be used in one or more of the ways listed in the following. (1)Added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives. (2) Used to finance the non-Federal share of the project or program. • (3) Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based. • (c)When an agency authorizes the disposition of program income as described in paragraphs(b)(1) or(b)(2), program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3). (d) In the event that the Federal awarding agency does not specify in its regulations or the terms and conditions of . the award how program income is to be used, paragraph(b)(3)shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) shall apply automatically unless the awarding agency indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions, as indicated in Section_.14. (e) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period. (f) If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award. • (g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards(See Sections_.30 through_.37). • (h) Unless Federal awarding agency regulations or the terms and condition of the award provide otherwise, recipients shall have no obligation to the Federal Government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments(35 U.S.C. 18) apply to inventions made under an experimental, developmental, or research award. • • • • .25 Revision of budget and program plans. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.httnl 8/31/2009 ching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. • http://www.Whitehouse.gov/omb/rewrite/circulars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (a)The budget plan is the financial expression of the project or program as approved during the award process. It may include either the Federal and non-Federal share, or only the Federal share, depending upon Federal awarding agency requirements. It shall be related to performance for program evaluation purposes whenever appropriate. • (b) Recipients are required to report deviations from budget and program plans, and request prior approvals for budget and program plan revisions, in accordance with this section. • (c) For nonconstruction awards, recipients shall request prior approvals from Federal awarding agencies for one or more of the following program or budget related reasons. • • (1)Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval). • (2) Change in a key person specified in the application or award document. • • (3)The absence for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator. • (4)The need for additional Federal funding. • • • (5)The transfer of amounts budgeted for indirect costs to absorb increases in direct costs, or vice versa, if approval is required by the Federal awarding agency. (6)The inclusion, unless waived by the Federal awarding agency, of costs that require prior approval in accordance with OMB Circular A-21, "Cost Principles for Educational Institutions,"OMB Circular A-122, "Cost Principles for Non-Profit Organizations,"or 45 CFR part 74 Appendix E, "Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals,"or 48 CFR part 31, "Contract Cost Principles and Procedures,"as•applicable. • (7)The transfer of funds allotted for training allowances(direct payment to trainees)to other categories of expense. • in• theapplication and funded in the approved awards, the subaward,transfer or (8) Unless described pp contracting out of any work under an award. This provision does not apply to the purchase of supplies, material, equipment or general support services. (d) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by • OMB. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a 1 10.html 8/31/2009 dget and program plans. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.httnl 8/31/2009 ching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. • http://www.Whitehouse.gov/omb/rewrite/circulars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) of this section, Federal awarding agencies are authorized, at their option,to waive cost-related and administrative prior written approvals required by this Circular and OMB Circulars A-21 and A-122. Such waivers may include authorizing recipients to do any one or more of the following. (1) Incur pre-award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval of the Federal awarding agency.All pre-award costs are incurred at the recipient's risk (i.e., the Federal awarding agency is under.no obligation to reimburse such costs if for any reason the recipient does not receive an award or if the award is less than anticipated and inadequate to cover such costs). (2) Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the following conditions apply. For one-time extensions,the recipient must notify the Federal awarding _ _. agency in writing with the supporting reasons and revised expiration date at least 10 days before the expiration date specified in the award.This one-time extension may not be exercised merely for the purpose of using unobligated balances. (i)The terms and conditions of award prohibit the extension. • (ii)The extension requires additional Federal funds. • (iii)The extension involves any change in the approved objectives or scope of the project. (3)Carry forward unobligated balances to subsequent funding periods. (4) For awards that support research, unless the Federal awarding agency provides otherwise in the award or in the agency's regulations, the prior approval requirements described in paragraph(e)are automatically waived(i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (e)(2)applies. (f)The Federal awarding agency may,at its option, restrict the transfer of funds among direct cost categories or programs,functions and activities for awards in which the Federal share of the project exceeds$100,000 and the cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Federal awarding agency. No Federal awarding agency shall permit a transfer that would cause any Federal appropriation or part thereof to be used for purposes other than those consistent with the original intent of the appropriation. • (g)All other changes to nonconstruction budgets, except for the changes described in paragraph (j), do not require prior approval. (h) For construction awards, recipients shall request prior written approval promptly from Federal awarding agencies for budget revisions whenever(1), (2) or_(3) apply. http://www.whitehouse.gov/omb/rewrite/circulars/al10/al10.html • 8/31/2009 lars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (1)The revision results from changes in the scope or the objective of the project or program. (2)The need arises for additional Federal funds to complete the project. (3)A revision is desired which involves specific costs for which prior written approval requirements may be • imposed consistent with applicable OMB cost principles listed in Section_.27. (i) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB. (j) When a Federal awarding agency.makes an award that provides support for both construction and nonconstruction work,the Federal awarding agency may require the recipient to request prior approval from the Federal awarding agency before making any fund or budget transfers between the two types of work supported. • (k) For both construction and nonconstruction awards, Federal awarding agencies shall require recipients to notify the Federal awarding agency in writing promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient for the project period by more than$5000 or five percent of the Federal award, whichever is greater.This notification shall not be required if an application for additional funding is submitted for a continuation award. • (I)When requesting approval for budget revisions, recipients shall use the budget forms that were used in the .application unless the Federal awarding agency indicates a letter of request suffices. (m) Within 30 calendar days from the date of receipt of the request for budget revisions, Federal awarding agencies shall review the request and notify the recipient whether the budget revisions have been approved. If the revision is still under consideration at the end of 30 calendar days, the Federal awarding agency shall inform the recipient in writing of the date when the recipient may expect the decision. ..26 Non-Federal audits. (a) Recipients and subrecipients that are institutions of higher education or other non-profit organizations (including hospitals)shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501-7507)and revised OMB Circular A-133,"Audits of States, Local Governments, and Non-Profit Organizations." • (b) State and local governments shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501-7507) and revised OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations." !r\ Pnr_nrnfit hncnitalc not nnucrarl hu tha ai hilt nrnuicinnc of rauicari•nIVIR cirri liar A_1 tR chall ha ci ihiart to tho ai hilt http://www.whitehouse.gov%omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 g agencies for budget revisions whenever(1), (2) or_(3) apply. http://www.whitehouse.gov/omb/rewrite/circulars/al10/al10.html • 8/31/2009 lars/a 110/all 0.html 8/31/2009 270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. • (2)Are not included as contributions for any other federally-assisted project or program. • • (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. • • http://www.whitehouse.gov/omb/rewrite/circul ars/a 1 10/a 110.htm1 8/31/2009 ject period unless (1)or(2) apply. (1)A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A- • 129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 requirements of the Federal awarding agencies. (d) Commercial organizations shall be subject to the audit requirements of the Federal awarding agency or the prime recipient as incorporated into the award document. _.27 Allowable costs. For each kind of recipient,there is a set of Federal principles for determining allowable costs.Allowability of costs shall be determined in accordance with the cost principles applicable to the entity incurring the costs.Thus, allowability of costs incurred by State, local or federally-recognized Indian tribal governments is determined in accordance with the provisions of OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments."The allowability of costs incurred by non-profit organizations is determined in accordance with the provisions of OMB Circular A-122, "Cost Principles for Non-Profit Organizations."The allowability of costs incurred by institutions of higher education is determined in accordance with the provisions of OMB Circular A-21, "Cost Principles for Educational Institutions."The allowability of costs incurred by hospitals is determined in accordance with the provisions of Appendix E of 45 CFR part 74, "Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals."The allowability of costs • incurred by commercial organizations and those non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance,with the provisions of the Federal Acquisition Regulation(FAR) at 48 CFR part 31. • _.28 Period of availability of funds. Where a funding period is specified, a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. .29 Conditional exemptions. (a) OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for certain Federal programs with statutorily-authorized consolidated planning and consolidated administrative funding, that are identified by a Federal agency and approved by the head of the Executive department or establishment.A Federal agency shall consult with OMB during its consideration of whether to grant such an exemption. • (b)To promote efficiency in State and local program administration,when Federal non-entitlement programs with common purposes have specific statutorily-authorized consolidated planning and consolidated administrative funding • and where most of the State agency's resources come from non-Federal sources, Federal agencies may exempt these covered State-administered, non-entitlement grant programs from certain OMB grants management requirements. The exemptions would be from all but the allocability of costs provisions of OMB Circulars A-87 (Attachment A, subsection C.3), "Cost Principles for State, Local, and Indian Tribal Governments,"A-21 (Section C, subpart 4), "Cost Principles for Educational Institutions,"and A-122 (Attachment A, subsection A.4), "Cost.Principles for Non-Profit Organizations," and from all of the administrative requirements provisions of OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations,"and the agencies'grants management common rule. (c)When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this option, a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds,which are consistent with the provisions of OMB Circular A-87, and extend such policies to all subrecipients.These fiscal and administrative requirements must be sufficiently specific to ensure that: funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and necessary for operating these programs, and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 �11vu1L1.1 1'IV. 1-1-1 iv -- v1111v1111 AU1111111J L1 au Vl. 1\l.LiuUc1UGi1W Jul .Jia11L6 auu i- 1cc111G11... ragc i Vl JJ supported by a Federal award. Federal awarding agencies shall require recipients to observe these standards under • awards and shall not impose additional requirements, unless specifically required by Federal statute. The recipient may use its own property management standards and procedures provided it observes the provisions of Sections _.31 through .37. • .31 Insurance coverage. Recipients shall, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired with Federal funds as provided to property owned by the recipient. Federally- owned property need not be insured unless required by the terms and conditions of the award. _.32 Real property. Each Federal awarding agency shall prescribe requirements for recipients concerning the use and disposition of.real property acquired in whole or in part under awards. Unless otherwise provided by statute, such requirements, at a minimum, shall contain the following. • (a) Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property for the authorized purpose of the project as long as it is needed and shall not encumber the property without approval of the Federal awarding agency. • (b)The recipient shall obtain written approval by the Federal awarding agency for the use;of real property in other federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of the original project. Use in other projects shall be limited to those under federally-sponsored projects (i.e., awards)or programs that have purposes consistent with those authorized for support by the Federal awarding agency. • • (c) When the real property is no longer needed as provided in paragraphs (a) and (b),the recipient shall request disposition instructions from the Federal awarding agency or its successor Federal awarding agency.The Federal awarding agency shall observe one or more of the following disposition instructions. • (1)The recipient may be permitted to retain title without further obligation to the Federal Government after it compensates the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project. • 2 The recipient maybe directed to sell the property underguidelinesprovided bythe Federal awarding P p p Y agency and pay the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds). When the recipient is authorized or required to sell the property, proper sales procedures shall be established that provide for competition to the extent practicable and result in the highest possible return. • (3)The recipient may be directed to transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases,the recipient shall be entitled to compensation for its attributable percentage of the current fair market value of the property. 33 Federally-owned and exempt property. (a) Federally-owned property. • • (1)Title to federally-owned property remains vested in the Federal Government. Recipients shall submit annually an inventory listing of federally-owned property in their custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • property to the Federal awarding agency for further Federal agency utilization. • (2) If the Federal awarding agency has no further need for the property, it shall be declared excess and reported to the General Services Administration, unless the Federal awarding agency has statutory authority to dispose of the property by alternative methods (e.g., the authority provided by the Federal Technology Transfer Act(15 U.S.C. 3710 (I))to donate research equipment to educational and non-profit organizations in accordance with E.O. 12821, "Improving Mathematics and Science Education in Support of the National Education Goals.")Appropriate instructions shall be issued to the recipient by the Federal awarding agency. (b) Exempt property. When statutory authority exists,the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate. Such property is"exempt property." Should a Federal awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. _.34 Equipment. • (a)Title to equipment acquired by a recipient with Federal funds shall vest in the recipient, subject to conditions of this section. (b)The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically• authorized by Federal statute,for as long as the Federal Government retains an interest in the equipment. (c)The recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds and shall not encumber the property without approval of the Federal awarding agency.When no longer needed for the original project or program,the recipient shall use the equipment in connection with its other federally-sponsored activities, in the following order of priority: (i)Activities sponsored by the Federal awarding agency which funded the original project, • then (ii) activities sponsored by other Federal awarding agencies. • (d) During the time that equipment is used on the project or program for which it was acquired,the recipient shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the equipment was originally acquired. First preference for such other use shall be given to other projects or programs sponsored by the Federal awarding agency that financed the equipment; second preference shall be given to projects or programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by the Federal awarding agency. User charges shall be treated as program income: • (e)When acquiring replacement equipment,the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency. (f)The recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 r custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (1) Equipment records shall be maintained accurately and shall include the following information. • • (i)A description of the equipment. • • (ii) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number. • • • (iii) Source of the equipment, including the award number. • (iv)Whether title vests in the recipient or the Federal Government. (v)Acquisition date (or date received, if the equipment was furnished by the Federal Government) and cost. (vi) Information from which one can calculate the percentage of Federal participation in the cost of the equipment (not applicable to equipment furnished by the Federal Government). (vii) Location and condition of the equipment and the date the information was reported. • (viii) Unit acquisition cost. (ix) Ultimate disposition data, including date of disposal and sales price or the method used to - determine current fair market value where a recipient compensates the Federal awarding agency for its share. (2) Equipment owned by the Federal Government shall be identified to indicate Federal ownership. (3) A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years.Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment. • • /A\ 11 �__a__I _..�,��_ _L_11 L_ .� _LLB_♦a_ .__..__ �J��..�,_ _�L__...__J_ l_ .__�..��, ___ J_�_�_ __,L_4 _L aL_ http://www.whitehouse.gov/omb/rewrite/circul ars/a 110/a 110.html 8/31/2009 ng agency.When no longer needed for the original project or program,the recipient shall use the equipment in connection with its other federally-sponsored activities, in the following order of priority: (i)Activities sponsored by the Federal awarding agency which funded the original project, • then (ii) activities sponsored by other Federal awarding agencies. • (d) During the time that equipment is used on the project or program for which it was acquired,the recipient shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the equipment was originally acquired. First preference for such other use shall be given to other projects or programs sponsored by the Federal awarding agency that financed the equipment; second preference shall be given to projects or programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by the Federal awarding agency. User charges shall be treated as program income: • (e)When acquiring replacement equipment,the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency. (f)The recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following. • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 r custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • equipment.Any loss, damage, or theft of equipment shall be investigated and fully documented; if the • equipment was owned by the Federal Government, the recipient shall promptly notify the Federal awarding agency. • • (5)Adequate maintenance procedures shall be implemented to keep the equipment in good condition. • (6)Where the recipient is authorized or required to sell the equipment, proper sales procedures shall be • established which provide for competition to the extent practicable and result in the highest possible return. (g)When the recipient no longer needs the equipment,the equipment may be used for other activities in accordance with the following standards. For equipment with a current per unit fair market value of$5000 or more, the recipient may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment. If the _ _recipient has no need for the equipment, the recipient shall request disposition instructions from the Federal awarding agency. The Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements. If no requirement exists within that agency, the availability of the equipment shall be reported to the General Services Administration by the Federal awarding agency to determine whether a requirement for the equipment exists in other Federal agencies.The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern. • (1) If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request,the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the recipient shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds,whichever is less, for the recipient's selling and handling expenses. (2) If the recipient is instructed to ship the equipment elsewhere,the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred. • (3) If the recipient is instructed to otherwise dispose of the equipment, the recipient shall be reimbursed by the Federal awarding agency for such costs incurred in its disposition. (4)The Federal awarding agency may reserve the right to transfer the title to the Federal Government or to a . third party named by the Federal Government when such third party is otherwise eligible under existing statutes. Such transfer shall be subject to the following standards. (i)The equipment shall be appropriately identified in the award or otherwise made known to the recipient in writing. • (ii) The Federal awarding agency shall issue disposition instructions within 120 calendar days after receipt of a final inventory. The final inventory shall list all equipment acquired with grant funds and http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a 110.htm1 8/31/2009 s/a 110/al 10.html 8/31/2009 r custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 ---. . .- -. - _. -- -- ---------- -- ------ - ----�----__-___-_- _.._ _.. ....--�- --0-_.,._.__.... ...b.. ,,. • federally-owned equipment. If the Federal awarding agency fails to issue disposition instructions within the 120 calendar day period, the recipient shall apply the standards of this section, as appropriate. (iii)When the Federal awarding agency exercises its right to take title,the equipment shall be subject to the provisions for federally-owned equipment. _.35 Supplies and other expendable property. (a)Title to supplies and other expendable properly shall vest in the recipient upon acquisition. If there is a residual inventory of unused supplies exceeding $5000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other federally-sponsored project or program, the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them, but shall, in either case, compensate the Federal Government for its share.The amount of compensation shall be computed in the same manner as for equipment. (b)The recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute as long as the Federal Government retains an interest in the supplies. _.36 Intangible property. • (a)The recipient may copyright any work that is subject to copyright and was developed, or for which ownership was purchased, under an award. The Federal awarding agency(ies) reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so. (b) Recipients are subject to applicable regulations governing patents and inventions, including government-wide regulations issued by the Department of Commerce at 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements." • (c)The Federal Government has the right to: • (1) obtain, reproduce, publish or otherwise use the data first produced under an award; and (2) authorize others to receive, reproduce, publish,or otherwise use such data for Federal purposes. (d) (1) In addition, in response to a Freedom of Information Act (FOIA)request for research data relating to published research findings produced under an award that were used by the Federal Government in developing an agency action that has the force and effect of law, the Federal awarding agency shall request, and the recipient shall provide,within a reasonable time, the research data so that they can be made available to the public through the procedures established under the FOIA. If the Federal awarding agency obtains the research data solely in response to a FOIA request, the agency may charge the requester a reasonable fee equaling the full incremental cost of obtaining the research data. This fee should reflect costs incurred by the agency, the recipient, and applicable ..,.L......:..:....1.. TF.�.. F.... ...1.1��:.... 1........F......�{... ......n..., ». .....Jn./1.., C(l1A /G I I CC(` FC°)/..\/A\/A\\ • •http://www.whitehouse.gov/omb/rewrite/circulars./a 110/al 1 0.html 8/31/2009 uctions within 120 calendar days after receipt of a final inventory. The final inventory shall list all equipment acquired with grant funds and http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a 110.htm1 8/31/2009 s/a 110/al 10.html 8/31/2009 r custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (2)The following definitions apply for purposes of paragraph (d)of this section: (i) Research data is defined as the recorded factual material commonly accepted in the,scientific community as necessary to validate research findings, but not any of the following: preliminary analyses, drafts of scientific papers, plans for future research, peer reviews, or communications with colleagues.This"recorded" material excludes physical objects (e.g., laboratory samples). Research data also do not include: (A)Trade secrets, commercial information, materials necessary to be held confidential by a researcher until they are published, or similar information which is protected under law; and (B) Personnel and medical information and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, such as information that could be used to identify a particular person in a research study. (ii) Published is defined as either when: (A) Research findings are published in a peer-reviewed scientific or technical journal; or (B)A Federal agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. (iii) Used by the Federal Government in developing an agency action that has the force and effect of law is defined as when an agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. (e) Title to intangible property and debt instruments acquired under an award or subaward vests upon acquisition in the recipient.The recipient shall use that property for the originally-authorized purpose, and the recipient shall not encumber the property without approval of the Federal awarding agency. When no longer needed for the originally authorized purpose, disposition of the intangible property shall occur in accordance with the provisions of paragraph _.34(g) .37 Property trust relationship. Real property, equipment, intangible property and debt instruments that are acquired or improved with Federal funds shall be held in trust by the recipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved.Agencies may require recipients to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with Federal funds and that use and disposition conditions apply to the property. Procurement Standards • • • .40 Purpose of procurement standards. Sections_.41 through,_.48 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property,equipment, real property and other services with Federal funds. These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive orders. No additional procurement standards or requirements shall be imposed by the Federal awarding agencies upon recipients, unless specifically required by Federal statute or executive order or approved by OMB. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • •http://www.whitehouse.gov/omb/rewrite/circulars./a 110/al 1 0.html 8/31/2009 uctions within 120 calendar days after receipt of a final inventory. The final inventory shall list all equipment acquired with grant funds and http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a 110.htm1 8/31/2009 s/a 110/al 10.html 8/31/2009 r custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed,the recipient shall report the http://w-wvv.whitehouse.gov/omb/rewrite/circul ars/a 1 10/al 1 0.html 8/31/2009 nd funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 ..,. i...y..,...,...,.,..., iva \114A1!w ......., ,ab1...........,... i 4-‘5v c...> vl -'✓ • _.41 Recipient responsibilities. The standards contained in this section do not relieve the recipient of the contractual responsibilities arising under its contract(s). The recipient is the responsible authority,without recourse to the Federal awarding agency, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of an award or other agreement.This includes disputes, claims, protests of award, source evaluation or other matters of a contractual nature. Matters concerning violation of statute •are to be referred to such Federal, State or local authority as may have proper jurisdiction. .42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts. No employee, officer, or agent shall participate in the selection, award, or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the firm selected for an award. The officers, employees, and agents of the recipient shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, or parties to subagreements. However, recipients may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct shall provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the recipient. .43Competition. All procurement transactions shall be.conducted in a manner to provide,to the maximum extent practical, open and free competition.The recipient shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient's interest to do so. • _.44 Procurement procedures. (a)All recipients shall establish written procurement procedures. These procedures shall provide for, at a minimum, that (1), (2) and(3) apply. • • (1) Recipients avoid purchasing unnecessary items. • (2) Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government. (3) Solicitations for goods and services provide for all of the following. • (i) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition. (ii) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a 110.html 8/31/2009 e or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (iii)A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards. (iv)The specific features of"brand name or equal"descriptions that bidders are required to meet when such items are included in the solicitation. (v)The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement. • (vi) Preference, to the extent practicable and economically feasible,for products and services that conserve natural resources and protect the environment and are energy efficient. (b) Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms,and women's business enterprises, whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal. (1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable. (2) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises. • • • (3) Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises. (4) Encourage contracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually. (5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms and women's business enterprises. • (c) The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by the recipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved.The"cost-plus-a-percentage-of-cost" or "percentage of construction cost"methods of contracting shall not be used. • • (d) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such http://www.whitehouse.gov/omb/rewrite/circulars/a 1 10/a 110.html 8/31/2009 ny and all bids or offers may be rejected when it is in the recipient's interest to do so. • _.44 Procurement procedures. (a)All recipients shall establish written procurement procedures. These procedures shall provide for, at a minimum, that (1), (2) and(3) apply. • • (1) Recipients avoid purchasing unnecessary items. • (2) Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government. (3) Solicitations for goods and services provide for all of the following. • (i) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition. (ii) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a 110.html 8/31/2009 e or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 vaavua ur r rv. i a a a v vraiiviaai a 1 Ju1.iu r v 1�va.b11r v./11,114.J lvl V1 1.11LJ t111'.1 [151 VV111V11... 1 "5%, L/ Vl J✓ matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources. In certain circumstances,contracts with certain parties are restricted by agencies' implementation'of E.O.s 12549 and 12689, "Debarment and Suspension." • (e) Recipients shall, on request, make available for the Federal awarding agency, pre-award review and procurement documents, such as request for proposals or invitations for bids, independent cost estimates, etc., when any of the following conditions apply. (1)A recipient's procurement procedures or operation fails to comply with the procurement standards in the Federal awarding agency's implementation of this Circular. (2)The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is to be awarded-without competition or only one bid or offer is received in response • to a solicitation. • (3)The procurement,which is expected to exceed the small purchase threshold, specifies a"brand name" product. (4)The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under a sealed bid procurement. (5)A proposed contract modification changes the scope of a contract or increases the contract amount by more than the amount of the small purchase threshold. .45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. _.46 Procurement records. Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum: (a) basis for contractor selection, (b)justification for lack of competition when competitive'bids or offers are not obtained, and (c) basis for award cost or price. • _.47 Contract administration. A system for contract administration shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. Recipients shall evaluate contractor performance and document, as appropriate,whether contractors have met the terms,conditions and specifications of the contract. .48 Contract provisions. The recipient shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts. (a) Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and'provide for such remedial actions as may be appropriate. http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 1 0.html 8/31/2009 nalysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government. (3) Solicitations for goods and services provide for all of the following. • (i) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition. (ii) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. http://www.whitehouse.gov/omb/rewrite/circulars/al 10/a 110.html 8/31/2009 e or its subrecipients. • Property Standards • _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing mononcrnon+onrl rricnncifinn of nrnnnrhi ft ornichori by fho Gorlorol (,n,iornrnon4"n'hnen rne4.nnoc rhornorl in o.nrnior+ • • http://wvvw.whitehouse.gov/omb/rewrite/circulars/al 10/a l 10.html 8/31/2009 http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (b)All contracts in excess of the small purchase threshold shall contain suitable provisions for termination by the • recipient, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. • (c) Except as otherwise required by statute, an award that requires the contracting (or subcontracting)for construction or facility improvements shall provide for the recipient to follow its own requirements relating to bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding$100,000, the Federal awarding agency may accept the bonding policy and requirements of the recipient, provided the Federal awarding agency has made a determination that the Federal Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows. (1)A bid guarantee from each bidder equivalent to five percent of the bid price. The"bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be required within the time specified. (2)A performance bond on the part of the contractor for 100 percent of the contract price. A"performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (3)A payment bond on the part of the contractor for 100 percent of the contract price. A."payment bond" is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract. • • (4)Where bonds are required in the situations described herein, the bonds shall be obtained from companies • holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, "Surety Companies Doing Business with the United States." (d)All negotiated contracts(except those for less than the small purchase threshold) awarded by recipients shall include a provision to the effect that the recipient, the Federal awarding agency,the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions. (e)All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement provisions of Appendix A to this Circular, as applicable. Reports and Records • _.50 Purpose of reports and records. Sections_.51 through_.53 set forth the procedures for monitoring and reporting on the recipient's financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements. • .51 Monitoring and reporting program performance. (a) Recipients are responsible for managing and monitoring each project, program, subaward, function or activity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section .26. • (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph .51(f), performance reports shall not be required more frequently than quarterly or, less frequently than annually.Annual reports shall be due 90 calendar days after the grant year; quarterly or semi-annual reports shall be due 30 days after the reporting period.The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 v+rvw r ,v• a a r v Vaa11 v1a11 a avi111111U1.1 u1.1 ry J. l411 1V1 Vl alit.,, 11.11U 1151 1 C4,\, Ll V1 JJ • (c) If inappropriate, a final technical or performance report.shall not be required after completion of the project. (d)When required, performance reports shall generally contain,for each award, brief information on each of the following. • (1)A comparison of actual accomplishments with the goals and objectives established for the period,the findings.of the investigator, or both.Whenever appropriate and the output of programs or projects can be readily quantified, such quantitative data should be related to cost data for computation of unit costs. • (2) Reasons why established goals were not met, if appropriate. (3) Other pertinent information including, when appropriate,analysis and explanation of.cost overruns or high unit costs. • (e) Recipients shall not be required to submit more than the original and two copies of performance reports. (f) Recipients shall immediately notify the Federal awarding agency of developments that have a significant impact on the award-supported activities.Also, notification shall be.given in the case of problems, delays, or adverse conditions which materially impair the ability to meet the objectives of the award. This notification shall include a statement of the action taken or contemplated, and any assistance needed to resolve the situation. (g) Federal awarding agencies may make site visits, as needed. (h) Federal awarding agencies shall comply with clearance requirements of 5 CFR part 1320 when requesting performance data from recipients. _,52 Financial reporting. • (a)The following forms or such other forms as may be approved by OMB are authorized for obtaining financial information from recipients. (1) SF-269 or SF-269A, Financial Status Report. • (i) Each Federal awarding agency shall require recipients to use the SF-269 or SF-269A to report the status of funds for all nonconstruction projects or programs. A Federal awarding agency may, however, have the option of not requiring the SF-269 or SF-269A when the SF-270, Request for Advance or Reimbursement, or SF-272, Report of Federal Cash Transactions, is determined to provide adequate information to meet its needs, except that a final.SF-269 or SF-269A shall be required at the completion of the project when the SF-270 is used only for advances. • (ii)The Federal awarding agency shall prescribe whether the report shall be on a cash or accrual basis. If the Federal awarding agency requires accrual information and the recipient's accounting records are not normally kept on the accrual basis,the recipient shall not be required to convert its accounting system, but shall develop such accrual information through best estimates based on an analysis of the documentation on hand. . (iii) The Federal awarding agency shall determine the frequency of the Financial Status Report for each project or program, considering the size and complexity of the particular project or program. • However,the report shall not be required more frequently than quarterly or less frequently than annually.A final report shall be required at the completion of the agreement. (iv)The Federal awarding agency shall require recipients to submit the SF-269 or SF-269A(an original and no more than two copies) no later than 30 days after the end of each specified reporting period for quarterly and semi-annual reports, and 90'calendar days for annual and final reports. http://www.whitehouse.gov/ombhtwrite/circulars/al 10/all 0.html 8/31/2009 g agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph .51(f), performance reports shall not be required more frequently than quarterly or, less frequently than annually.Annual reports shall be due 90 calendar days after the grant year; quarterly or semi-annual reports shall be due 30 days after the reporting period.The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 Extensions of reporting due dates may be approved by the Federal awarding agency upon request of the recipient. (2) SF-272, Report of Federal Cash Transactions. • • (i)When funds are advanced to recipients the Federal awarding agency shall require each recipient to .submit the SF-272 and,when necessary, its continuation sheet, SF-272a. The Federal awarding agency shall use this report to monitor cash advanced to recipients and to obtain disbursement information for each agreement with the recipients. • (ii) Federal awarding agencies may require forecasts of Federal cash requirements in the "Remarks" section of the report. • (iii) When practical and deemed necessary, Federal awarding agencies may require recipients to report in the"Remarks" section the amount of cash advances received in excess of three days. Recipients shall provide short narrative explanations of actions taken to-reduce the excess balances. • (iv) Recipients shall be required to submit not more than the original and two copies of the SF-272 15 calendar days following the end of each quarter. The Federal awarding agencies may require a monthly report from those recipients receiving advances totaling$1 million or more per year. (v) Federal awarding agencies may waive the requirement for submission of the SF-272 for any one of the following reasons: (1)•When monthly advances do not exceed $25,000 per recipient, provided that such advances are monitored through other forms contained in this section; (2) If, in the Federal • awarding agency's opinion, the recipient's accounting controls are adequate to minimize excessive Federal advances; or, (3) When the electronic payment mechanisms provide adequate data. • (b) When the Federal awarding agency needs additional information or more frequent reports,the following shall be observed. • (1)When additional information is needed to comply with legislative requirements, Federal awarding . agencies shall issue instructions to require recipients to submit such information under the"Remarks"section • of the reports. (2)When a Federal awarding agency determines that a recipient's accounting system does not meet the standards in Section .21, additional pertinent information to further monitor awards may be obtained upon • written notice to the recipient until'such time as the system is brought up to standard. The Federal awarding agency, in obtaining this information, shall comply with report clearance requirements of 5 CFR part 1320. • (3) Federal awarding agencies are encouraged to shade out any line item on any report if not necessary. (4) Federal awarding agencies may accept the identical information from the recipients in.machine readable format or computer printouts or electronic outputs in lieu of prescribed formats. (5) Federal awarding agencies may provide computer or electronic outputs to recipients when such expedites or contributes to the accuracy of reporting. • _.53 Retention and access requirements for records. • (a) This section sets forth requirements for record retention and access to records for awards to recipients. Federal awarding agencies shall not impose any other record retention or access requirements upon recipients. 1 http://www.whitehouse.gov/omb/rewrite/circulars/a 110/all 0.html 8/31/2009 h specified reporting period for quarterly and semi-annual reports, and 90'calendar days for annual and final reports. http://www.whitehouse.gov/ombhtwrite/circulars/al 10/all 0.html 8/31/2009 g agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph .51(f), performance reports shall not be required more frequently than quarterly or, less frequently than annually.Annual reports shall be due 90 calendar days after the grant year; quarterly or semi-annual reports shall be due 30 days after the reporting period.The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 �11VU11.L1 1\Al. 11-11V "- %J11111)111111111111111JL1 ULl V y 1\VL1U11 V111V11L) 1V1 AJ1 U1)LJ 1.11111 L 151 J• (b) Financial records, supporting documents, statistical records, and all other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure report or,for awards that are renewed quarterly or annually,from the date of the submission of the quarterly or annual financial report, as authorized by the Federal awarding agency. The only exceptions are the following. • • (1) If any litigation, claim, or audit is started before the expiration of the 3-year period,the records shall be retained until all litigation, claims or audit findings involving the records have been resolved and final action taken. • (2) Records for real property and equipment acquired with Federal funds shall be retained for 3 years after final disposition. (3)When records are transferred to or maintained by the Federal awarding agency,the 3-year retention • requirement is not applicable to the recipient. • (4) Indirect cost rate proposals, cost allocations plans,etc. as specified in paragraph_.53(g). (c) Copies of original records may be substituted for the original records if authorized by the Federal awarding agency. • (d)The Federal awarding agency shall request transfer of certain records to its custody from recipients when it determines that the records possess long term retention value. However, in order to avoid duplicate recordkeeping, a Federal awarding agency may make arrangements for recipients to retain any records that are continuously needed for joint use. (e)The Federal awarding agency, the Inspector General,Comptroller General of the United States, or any of their duly authorized representatives, have the right of timely and unrestricted access to any books, documents, papers, or other records of recipients that are pertinent to the awards, in order to make audits, examinations, excerpts, transcripts and copies of such documents. This right also includes timely and reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents.The rights of access in this paragraph are not limited to the required retention period, but shall last as long as records are retained. (f) Unless required by statute, no Federal awarding agency shall place restrictions on recipients that limit public access to the records of recipients that are pertinent to an award, except when the Federal awarding agency can demonstrate that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom of.lnformation Act (5 U.S.C. 552) if the records had belonged to the Federal awarding agency. (g) Indirect cost rate proposals, cost allocations plans, etc. Paragraphs (g)(1) and(g)(2) apply to the following types of documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates). • (1) If submitted for negotiation. If the recipient submits to the Federal awarding agency or the subrecipient • submits to the recipient the proposal, plan,or other computation to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts on the date of such submission. • (2) If not submitted for negotiation. If the recipient is not required to submit to the Federal awarding agency or the subrecipient is not required to submit to the recipient the proposal, plan, or other computation for negotiation purposes, then the 3-year retention period for the proposal, plan, or other computation and its supporting records starts at the end of the fiscal year(or other accounting period)covered by the proposal, plan,or other computation. Termination and Enforcement • http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • .60 Purpose of termination and enforcement. Sections .61 and_.62.set forth uniform suspension, termination and enforcement procedures. .61 Termination. (a)Awards may be terminated in whole or in part only if(1), (2) or(3) apply. • (1) By the Federal awarding agency, if a recipient materially fails to comply with the terms and conditions of an award. • (2) By the Federal awarding agency with the consent of the recipient, in which case the two parties shall agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated. • • (3) By the recipient upon sending to the Federal awarding agency written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However,-if the-Federal awarding agency determines in the-case of partial termination that-the reduced or modified portion of the grant will not accomplish the purposes for which the grant was made, it may terminate the grant in its.entirety under either paragraphs(a)(1)or(2). • (b) If costs are allowed under an award, the responsibilities of the recipient referred to in paragraph .71(a), including those for property management as applicable, shall be considered in the termination of the award, and provision shall be made for continuing responsibilities of the recipient after termination, as appropriate. .62 Enforcement. • (a) Remedies for noncompliance. If a recipient materially fails to comply with the terms and conditions of an award, whether stated in a Federal statute, regulation, assurance, application, or notice of award, the Federal awarding agency may, in addition to imposing any of the special conditions outlined in Section_.14, take one or more of the following actions, as appropriate in the circumstances. • (1)Temporarily withhold cash payments pending correction of the deficiency by the recipient or more severe enforcement action by the Federal awarding agency. (2) Disallow(that is, deny both use of funds and any applicable matching credit for) all or part.of the cost of the activity or action not in compliance. • (3)Wholly or partly suspend or terminate the current award. (4) Withhold further awards for the project or program. • (5)Take other remedies that may be legally available. (b) Hearings and appeals. In taking an enforcement action,the awarding agency shall provide the recipient an opportunity for hearing, appeal, or other administrative proceeding to which the recipient is entitled under any statute or regulation applicable to the action involved. (c) Effects of suspension and termination. Costs of a recipient resulting from obligations incurred by the recipient during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently. Other recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if(1) and (2) apply. • (1)The costs result from obligations which were properly incurred by the recipient before the effective date of suspension or termination, are not in anticipation of it, and in the case of a termination, are noncancellable. < (2)The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect. • http://wvvw.whitehouse.gov/omb/rewrite/circulars/all 0/al 1 0.html 8/31/2009 s not required to submit to the recipient the proposal, plan, or other computation for negotiation purposes, then the 3-year retention period for the proposal, plan, or other computation and its supporting records starts at the end of the fiscal year(or other accounting period)covered by the proposal, plan,or other computation. Termination and Enforcement • http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 V llvuiul 11,. .11 11, V 1111V1111 11l1 0,11.111 V V 1\V91111 V111V111J 1V1 V111111J U11U 1161 V51111i11... 1 U6l� JJ Vl J.J (d) Relationship to debarment and suspension. The enforcement remedies identified in this section, including • suspension and termination,do not preclude a recipient from being subject to debarment and suspension under E.O.s 12549 and 12689 and the Federal awarding agency implementing regulations (see Section_.13). SUBPART D-After-the-Award Requirements • _.70 Purpose. Sections_.71 through .73 contain closeout procedures and other procedures for subsequent disallowances and adjustments. • _.71 Closeout procedures. (a) Recipients shall submit,within 90 calendar days after the date of completion of the award, all financial, performance, and other reports as required by the terms and conditions of the award. The Federal awarding agency may approve extensions when requested by the recipient. (b) Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions. (c)The Federal awarding agency shall make prompt payments to a recipient for allowable reimbursable costs under the award being closed out. (d)The recipient shall promptly refund any balances of unobligated cash that the Federal awarding agency has advanced or paid and that is not authorized to be retained by the recipient for use in other projects. OMB Circular A- 129 governs unreturned amounts that become delinquent debts. (e)When authorized by the terms and conditions of the award, the Federal awarding agency shall make a settlement for any upward or downward adjustments to the Federal share of costs after closeout reports are received. (f)The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with Sections_.31 through_.37. (g) In the event a final audit has not been performed prior to the closeout of an award, the Federal awarding agency shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit, _.72 Subsequent adjustments and continuing responsibilities. • • (a)The closeout of an award does not affect any of the following. .. (1)The right of the Federal awarding agency to disallow costs and recover funds on the basis of a later audit or other review. (2)The obligation of the recipient to return any funds due as a result of later refunds, corrections, or other transactions. • (3)Audit requirements in Section .26. (4) Property management requirements in Sections .31 through .37. • (5) Records retention as required in Section_.53. (b)After closeout of an award, a relationship created under an award may be modified or ended in whole or in part with the consent of the Federal awarding agency and the recipient, provided the responsibilities of the recipient referred to in paragraph—73(a), including those for property management as applicable, are considered and provisions made for continuing responsibilities of the recipient, as appropriate. .73 Collection of amounts due. • http://www.whitehouse.gov/omb/revvrite/circulars/al 10/al10.html 8/31/2009 award were not suspended or expired normally at the end of the funding period in which the termination takes effect. • http://wvvw.whitehouse.gov/omb/rewrite/circulars/all 0/al 1 0.html 8/31/2009 s not required to submit to the recipient the proposal, plan, or other computation for negotiation purposes, then the 3-year retention period for the proposal, plan, or other computation and its supporting records starts at the end of the fiscal year(or other accounting period)covered by the proposal, plan,or other computation. Termination and Enforcement • http://www.whitehouse.gov/omb/rewrite/circulars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (a) Any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government. If not paid within a reasonable period after the demand for payment,the Federal awarding agency may reduce the debt by (1), (2) or (3) (1) Making an administrative offset against other requests for reimbursements. (2)Withholding advance payments otherwise due to the recipient. (3) Taking other action permitted by statute. • (b) Except as otherwise provided by law, the Federal awarding agency shall charge interest on an overdue debt in accordance with 4 CFR Chapter II, "Federal Claims Collection Standards." Appendix A • Contract Provisions All contracts, awarded by a recipient including small purchases, shall contain the following provisions as applicable: 1. Equal Employment Opportunity -All contracts shall contain a provision requiring compliance with E.O. 11246, "Equal Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity,"and as supplemented by regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." 2. Copeland "Anti-Kickback"Act(18 U.S.C. 874 and 40 U.S.C. 276c)-All contracts and subgrants in excess of $2000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland"Anti-Kickback"Act (18 U.S.C. 874),as supplemented by Department of Labor regulations(29 CFR part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States").The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled.The recipient shall report all suspected or reported violations to the Federal awarding agency. 3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)-When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act(40 U.S.C. 276a to a-7)and as supplemented by Department of Labor regulations(29 CFR part 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the • purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 5. Rights to Inventions Made Under a Contract or Agreement- Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,"and any implementing regulations issued by the awarding agency. 6. Clean Air Act(42 U.S.C. 7401 et seq.)and the Federal Water Pollution Control Act(33 U.S.C. 1251 et seq.), as amended-Contracts and subgrants of amounts in excess of$100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards,orders or regulations issued pursuant to the.Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).. 7. Byrd Anti-Lobbying Amendment(31 U.S.C. 1352)-Contractors who apply or bid for an award of$100,000 or • more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal- - - appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 8. Debarment and Suspension (E.O.s 12549 and 12689)- No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 Ito lotF MEMORANDUM TO FILE RE: SECTION 504 ACCESSIBILITY REQUIREMENTS PROJECT: Neighborhood Stabilization Program Acquisition, Rehab, Lease-purchase of seven units Scattered sites between Harrison Street, I-680, 72nd and Missouri River. x The above named project is not exempt from Section 504 Accessibility Requirements. Accessibility modifications required: Per guidance from our HUD area office, multiple single-family homes in one program should be treated as a multi-family project. Alterations to dwelling units in a multi- family project shall, to the maximum extent feasible, be made to be readily accessible to and usable by individuals with handicaps. Five percent of theft or 1 unit, shall be made accessible for persons with mobility impairments. A unit that is on an accessible route and is adaptable is considered accessible for this purpose. An additional two percent of the units, or one (1) unit, shall be accessible for persons with hearing or vision impairments. The above named project is exempt from Section 504 Accessibility Requirements for the following reason(s): Ed 10 antz er, i� _ •pme • :ection Manager Date 3 - /(- /0 Marian Carling, Section 504 Officer Date C. 1251 et seq.). Violations shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).. 7. Byrd Anti-Lobbying Amendment(31 U.S.C. 1352)-Contractors who apply or bid for an award of$100,000 or • more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal- - - appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 8. Debarment and Suspension (E.O.s 12549 and 12689)- No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 EXHIBIT DAVIS BACON EXEMPTION CHECKLIST Project Name: Lease Purchase Project Address: Bethesda Homes LLC Project No. NSP—0910S23 It is determined that the above project is exempt from Davis-Bacon Prevailing Wage Rate Provisions because: Residential rehabilitation or new construction project is funded in whole or in part with CDBG funds and such residential property contains less than 8 units. Residential rehabilitation or new construction contract, including construction and non-construction costs, is funded with HOME funds and such residential property contains less than 12 assisted units. Proceeds of award of federal funds are solely for the acquisition of real property (land, pre-existing buildings and improvements). The entire project consists of demolitions and no construction is eminent on site. Funding solely for demolition to be completed by City or its contractor before transfer of land to developer. Funding for on-site improvements only. On-site improvements are completed on land owned by the City and improvements are completed before transfer of land to developer. Funding for off-site improvements that are separately owned. Off-site and on- site construction are provided for in separate construction contracts. Project funding is for infrastructure improvements owned and operated by utility company. The prime construction contract financed in whole or part with CDBG or HOME funds is incidental and the amount is less than $2,000. Funding for professional services only (legal/acct/architectural/engineering). These services are funded under a separate contract from any construction contract. Funding source is Emergency Shelter Grant (ESG) or Supportive Housing. Grant (SHP), which are exempt from Davis/Bacon. The project will be done through a force account. There is no federal money in the construction contract. Other—Explain: Funded with NSP funds — does not meet threshold for CDBG (NSP) for Davis Bacon compliance if 2 rezihiLeke, �u--� Date: 0'/4° Patricia Evans, Labor Standards A description of the scope of the project is attached. ent. 8. Debarment and Suspension (E.O.s 12549 and 12689)- No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 CITY OF OMAHA EXHIBIT AFFIRMATIVE MARKETING POLICY AND MONITORING PROCEDURES Effective: October 1, 1999 Revised: May 1, 2008 Affirmative Marketing Policy In furtherance of the City of Omaha's commitment to non-discrimination and equal opportunity in housing, the City of Omaha establishes procedures to affirmatively market units constructed or rehabilitated under any City-assisted program or project. These procedures are intended to further the objectives of Title VIII of the Civil Rights Act of 1968 and Executive Order 11063. It is the affirmative marketing goal of the City of Omaha to assure that individuals who normally might not apply for vacant rehabilitated or constructed units because of their race or ethnicity: • know about the vacancies • feel welcome to apply • have the opportunity to rent or purchase the units This policy will be carried out through the following procedures: 1. Informing the public, potential tenants and owners about federal fair housing laws and affirmative marketing policies • The City of Omaha will inform the public, potential tenants, purchasers and owners about its affirmative marketing policy, Title VIII and Executive Order 11063. • The City will place public notices in the Omaha World Herald and the North Omaha Star to inform owners of the program. • City representatives will meet with property owners and assist them in preparing program applications as requested and necessary. • Owners selected for a rehabilitation program shall notify in-place tenants in writing of their involvement in the program and provide them with the following options: 1. Remain in the present unit during rehabilitation. 2. Move temporarily to another unit within the project while his/her unit is being rehabilitated. 3. Permanently relocate or voluntarily abandon the unit during the rehabilitation. • Owners shall post the HUD Equal Housing Opportunity. Logo in the project building and display the Fair Housing Poster in their rental office. 111211 1 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY 12689)- No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • Owners shall use media accessible to minorities when advertising the availability of units. • Owners shall use the Equal Housing Opportunity logo, slogan or statement in all advertising. • Owners shall maintain a non-discriminatory hiring policy. • • Owners shall adopt a fair housing policy. 2. Informing low- and moderate-income persons about available units Property Owners having vacant units may call the Omaha Housing Authority (OHA) at 444-6900 and place units on OHA's "Available Unit" list. This list is distributed to families who have received Certificates of Family Participation and are looking for units to rent. The listing will remain on the "Available" list for 35 calendar days, then be removed. If still vacant, the property may be relisted. If the property is not listed with OHA when rehabilitated or constructed units are available for initial occupancy, the owner shall inform the following outreach agencies and/or other agencies of this fact in writing and submit a copy of the letters to the City of Omaha, Planning Department, Housing and Community Development Division, Loan Section, 1819 Farnam Street, Room 1111, Omaha, Nebraska, 68183. Chicano Awareness Center, Inc. Urban League of Nebraska 4821 South 24th Street 3022 North 24th Street Omaha, NE 68107 Omaha, NE 68111 Family Housing Advisory Services Community Alliance 2401 Lake Street 4001 Leavenworth Street Omaha,NE 68111 Omaha,NE 68105 Eastern Nebraska Human Services Heartland Family Service 900 South 74th Plaza, Suite 200 2101 South 42nd Street Omaha,NE 68114 Omaha, NE 68105 Greater Omaha Community Action Heartland Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Heartland Family Service 5002 South 24th Street, Suite 203 2580 South 90th Street Omaha, NE 68111 Omaha,NE 68124 League of Human Dignity Heartland Family Service 5513 Center Street 11212 Davenport Street Omaha, NE 68106 Omaha, NE 68154 Heartland Family Service Nebraska Commission for the Deaf 116 E. Mission Avenue 1313 Farnam on the Mall Bellevue, NE 68005 Omaha,NE 68102 2 Revised 5/1/08 nistration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 Heartland Family Service Omaha Association for the Blind 302 American Parkway 1024 South 32"d Street Papillion, NE 68046 Omaha,NE 68105 Holy Name Housing Corporation Great Plains Chapter 3014 North 45th Street Paralyzed Veterans of America Omaha, NE 68104 7612 Maple Street Omaha, NE 68134 Mayor's Commission for Citizens with Disabilities 1819 Farnam Street, Room 304 Omaha, NE 68183 3. Record Keeping The Owner shall keep records of the following: • Local media advertisements of the vacant unit • Contact dates with outreach agencies and Omaha Housing Authority • Correspondence informing outreach agencies of vacancies • Race and other demographic data of occupants and persons inquiring about availability of units • Tenant Survey, utility allowance and income determination forms signed and dated by Owner • Name and age of all household members • Verified income for each household • Copy of lease 4. Assessment of Actions The Owner's affirmative marketing efforts will be assessed by the City to: • determine whether Owners have affirmatively marketed vacant units to individuals who normally might not apply; and, • determine whether a sufficient number of racial and ethnic families have applied for vacant units The City will take corrective action if it is found that property owners are not carrying out established procedures of the City's Affirmative Marketing Policy and Monitoring Procedures. 3 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY Omaha, NE 68105 Greater Omaha Community Action Heartland Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Heartland Family Service 5002 South 24th Street, Suite 203 2580 South 90th Street Omaha, NE 68111 Omaha,NE 68124 League of Human Dignity Heartland Family Service 5513 Center Street 11212 Davenport Street Omaha, NE 68106 Omaha, NE 68154 Heartland Family Service Nebraska Commission for the Deaf 116 E. Mission Avenue 1313 Farnam on the Mall Bellevue, NE 68005 Omaha,NE 68102 2 Revised 5/1/08 nistration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 Affirmative Marketing Policy Monitoring Procedures 1. Duties and Responsibilities of the Owner a) The Owner shall post the HUD Equal Housing Opportunity Logo in the project building and in the rental or sales office. b) The Owner shall submit to the City a copy of all letters notifying the outreach agencies of vacancies. Outreach agencies may include, but are not limited to, the agencies listed in Item 2, Page 2. c) The Owner shall submit to the City a copy of all advertisements placed in the local • newspapers. All advertisements must include the Equal Housing Opportunity Logo, Slogan or Statement. d) The Owner shall submit to the City a Demographics for Applicant, attached as Exhibit 1, which includes the'name, racial/ethnic characteristics, income and family size for each person responding to the advertisement. e) The Owner shall meet with each in-place tenants of the occupied vacant units and complete a Tenant Survey, utility allowance and computing annual income form. A copy of each form is attached and marked Exhibit 2. f) The Owner shall submit to the City the original Tenant Survey, utility allowance, income determination form (signed and dated by Owner) and a copy of the lease agreement and retain a copy for proper record keeping. Forms must be updated on lease anniversary date and submitted to the City. g) The Owner shall provide each in-place tenant in the project with a copy of the City of Omaha's written Tenant Assistance Policy (TAP) and shall advise said tenant(s) of the impact of the project on him or her. The Owner shall provide the TAP to the tenant immediately after submission of the Owner's application for participation in the City's program. h) After completion of the project, the Owner shall submit a Tenant Survey, utility allowance and income determination form (signed and dated by Owner) for each occupied unit and a copy of the lease agreement. i) Owner shall insure that the rents, including utilities and Median Family Income, are• consistent with the terms and conditions in the approved Agreement between the Owner and the City of Omaha 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY tion's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 2. Duties and Responsibilities of the City a) The City shall assess the affirmative marketing procedures to determine whether the Owner has affirmatively marketed the vacant units by monitoring the Owner's performance in carrying out the Duties and Responsibilities of the Owner as outlined in Section 1. b) The City shall assess the affirmative marketing efforts of the Owner to determine whether a sufficient number of racial and ethnic families have applied for vacant units. This determination will be made by reviewing the information provided on the Demographics Form for Applicant and Tenant Survey Form to determine the proportion of racial/gender participation versus overall participation. c) The City shall take the following corrective action if it is found that the Owner is not carrying out established procedures of affirmatively marketing units: • Notify the Owner in writing of any violations of the Owner's Duties and Responsibilities. • The Owner will be given thirty (30) days upon receipt of written notification to provide evidence of compliance. Upon the Owner's request, the City will provide technical assistance. • If the Owner fails to comply with the Affirmative Marketing Policy and Monitoring Procedures, the City may declare the loan/grant in default. • • 5 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY vide each in-place tenant in the project with a copy of the City of Omaha's written Tenant Assistance Policy (TAP) and shall advise said tenant(s) of the impact of the project on him or her. The Owner shall provide the TAP to the tenant immediately after submission of the Owner's application for participation in the City's program. h) After completion of the project, the Owner shall submit a Tenant Survey, utility allowance and income determination form (signed and dated by Owner) for each occupied unit and a copy of the lease agreement. i) Owner shall insure that the rents, including utilities and Median Family Income, are• consistent with the terms and conditions in the approved Agreement between the Owner and the City of Omaha 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY tion's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 EXHIBIT 1 CITY OF OMAHA DEMOGRAPHICS FORM FOR APPLICANTS Loan No. Date No. of Vacant Units Owner Project Address Person Completing Person's Phone No. This Report Home: Work Race/Ethnicity Family Monthly Of Head of Applicant Size Income Household NOTE: This form is a list of everyone who inquired about renting or purchasing the unit(s). A EQUAL HOUSING OPPORTUNITY Revised 5/1/08 Date President/CEO APPROVED AS TO FORM: CITY ATTORNEY DATE Plnlsf1376-note 45th and Bedford Ave Omaha,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 Evhihi T Office of Management and Budget Circular No . A- 133 Revised to show changes published • in the Federal Register June 27, 2003 Audits of States, Local Governments, and Non-Profit Organizations • Accompanying Federal Register Materials: -- Audits of States, Local Governments, and Non-Profit . Organizations June 30, 1997 -- Revision published June 27, 2003 TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Audits of States, Local Governments, and Non-Profit Organizations 1. Purpose. This Circular is issued pursuant to the Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of States, local governments, and non-profit organizations expending Federal awards. 2. Authority. Circular A-133 is issued under the authority of sections 503, 1111, and 7501 et seq. of title 31, United States Code, and Executive Orders 8248 and 11541. 3. Rescission and Supersession. This Circular rescinds Circular A-128, "Audits of State and Local Governments," issued April 12, 1985, and supersedes the prior Circular A-133, "Audits of Institutions of Higher Education and Other. Non-Profit Institutions," issued April 22, 1996. For effective dates, see paragraph 10. 4. Policy. Except as provided herein, the standards set forth in this Circular shall be applied by all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein, the provisions of the subsequent statute shall govern. Federal agencies shall apply the provisions of the sections of this Circular to non-Federal entities, whether they are recipients expending Federal awards received directly from Federal awarding agencies, or are subrecipients expending Federal awards received from a pass-through entity (a recipient or another subrecipient). • This Circular does not apply to non-U.S. based entities expending Federal awards received either directly as a recipient or indirectly as a subrecipient. http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a 133.html 8/31/2009 y of Omaha 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY tion's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension."This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 t • r .., ef-• +44. (fir r*....., i CI% I 5. Definitions. The definitions of key terms used in this Circular are contained in § .105 in the Attachment to this Circular. 6. Required Action. The specific requirements and responsibilities of Federal agencies and non- Federal entities are set forth in the Attachment to this Circular. Federal agencies making awards to non-Federal entities, either directly or indirectly, shall adopt the language in the Circular in codified regulations as provided in Section 10 (below), unless different provisions are required by Federal statute or are approved by the Office of Management and Budget (OMB). 7. OMB Responsibilities. OMB will review Federal agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to ensure uniform, effective and efficient implementation. 8. Information Contact. Further information concerning Circular A-133 may be obtained by contacting the Financial Standards and Reporting Branch, Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone (202).395-3993. 9. Review Date. This Circular will have a policy review three years from the date of issuance. 10.. Effective Dates. The standards set forth in § .400 of the Attachment to this Circular, which apply directly to Federal agencies, shall be effective July 1, 1996, and shall apply to audits of fiscal years beginning after June 30, 1996, except as otherwise specified in § .400(a). The standards set forth in this Circular that Federal agencies shall apply to non-Federal entities shall be adopted by Federal agencies in codified regulations not later than 60 days after publication of this final revision in the Federal Register, so that they will apply to audits of fiscal years beginning after June 30, 1996, with the exception that § .305(b) of the Attachment applies to audits of fiscal years beginning after June 30, 1998. The requirements of Circular A-128, although the Circular is rescinded, and the 1990 version of Circular A-133 remain in effect for audits of fiscal years beginning on or before June 30, 1996. . The revisions published in the Federal Register June 27, 2003, are effective for fiscal years ending after December 31, 2003, and early implementation is not permitted with the exception of the definition of oversight agency for audit, which is effective July 28, 2003. Augustine T. Smythe Acting Director Attachment PART_ --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS Subpart A--General • Sec. _.100 Purpose. • .105 Definitions. • Subpart B--Audits • • .200 Audit requirements. • http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 on status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 - - -- --• �� .µ, .,v v�..uii�iiw, cutu 1NV11-1, gaithcauons rage .5 or .SL _.205 Basis for determining Federal awards expended. _.210 Subrecipient and vendor determinations. .215 Relation to other audit requirements. _.220 Frequency of audits. _.225 Sanctions. .230 Audit Costs. _.235 Program-specific audits. Subpart C--Auditees _.300 Auditee responsibilities. .305 Auditor selection. .310 Financial statements. _.315 Audit findings follow-up. _.320 Report submission. Subp_art D--Federal Agencies and Pass-Through Entities _.400 Responsibilities. .405 Management decision. Subpart E--Auditors _.500 Scope of audit. .505 Audit reporting. .510 Audit findings. _.515 Audit working papers. _.520 Major program determination. _.525 Criteria for Federal program risk. .530 Criteria for a low-risk auditee. Appendix A to Part _ - Data Collection Form (Form SF-SAC). Appendix B to Part _ - Circular A-133 Compliance Supplement. • Table of Contents Subpart A--General § .100 Purpose. • This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. § .105 Definitions. Auditee means any non-Federal entity that expends Federal awards which must be audited under this part. Auditor means an auditor, that is a public accountant or a Federal, State or local government audit organization, which meets the general standards specified in generally accepted government auditing standards (GAGAS). The term auditor does not include internal auditors of non-profit organizations. Audit finding means deficiencies which the auditor is .required by § .51O(a) to report in the http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ith the exception that § .305(b) of the Attachment applies to audits of fiscal years beginning after June 30, 1998. The requirements of Circular A-128, although the Circular is rescinded, and the 1990 version of Circular A-133 remain in effect for audits of fiscal years beginning on or before June 30, 1996. . The revisions published in the Federal Register June 27, 2003, are effective for fiscal years ending after December 31, 2003, and early implementation is not permitted with the exception of the definition of oversight agency for audit, which is effective July 28, 2003. Augustine T. Smythe Acting Director Attachment PART_ --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS Subpart A--General • Sec. _.100 Purpose. • .105 Definitions. • Subpart B--Audits • • .200 Audit requirements. • http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 on status and that of its principal employees. •• Return to Top • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 schedule of findings and questioned costs. CFDA number means the number assigned to a Federal program in the Catalog of Federal Domestic Assistance (CFDA). • Cluster of programs means a grouping of closely related programs that share common compliance requirements. The types of clusters of programs are research and development (R&D), student financial aid (SFA), and other clusters. "Other clusters" are as defined by the Office of Management and Budget (OMB) in the compliance supplement or as designated by a State for Federal awards the State provides to its subrecipients that meet the definition of a cluster of programs. When designating an "other cluster," a State shall identify the Federal awards included in the cluster and advise the subrecipients of compliance requirements applicable to the cluster, consistent with § .400(d)(1) and § .400(d)(2), respectively. A cluster of programs shall be considered as one program for determining major programs, as described in § .520, and, with the exception of R&D as described in § .200(c), whether a program-specific audit may be elected. Cognizant agency for audit means the Federal agency designated to carry out the . responsibilities described in § .400(a). - Compliance supplement refers to the Circular A-133 Compliance Supplement, included as Appendix B to Circular A-133, or such documents as OMB or its designee may issue to replace it. This document is available from the Government Printing Office, Superintendent of Documents, Washington, DC 20402-9325. Corrective action means action taken by the auditee that: (1) Corrects identified deficiencies; (2) Produces recommended improvements; or (3) Demonstrates that audit findings are either invalid or do not warrant auditee action. • Federal agency has the same meaning as the term agency in Section 551(1) of title 5, United States Code. Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass- through entities. It does not include procurement contracts,. under grants or contracts, used to buy goods or services from vendors. Any audits of such vendors shall be covered by the terms and conditions of the contract. Contracts to operate Federal Government owned, contractor operated facilities (GOCOs) are excluded from the requirements of this part. Federal awarding agency means the Federal agency that provides an award directly to the recipient. Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals as described in § .205(h) and § .205(i). Federal program means: http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 mb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 -----»•�.- -- +..+u+w ..� u..uw� ivvui vv v%aluli�luo, (Ulu iNull-1 iuill VigataLaumn rage J 01 JG (1) All Federal awards to a non-Federal entity assigned a single number in the CFDA. (2) When no CFDA number is assigned,. all Federal awards from the same agency made for the same purpose should be combined and considered one program. • (3) Notwithstanding paragraphs (1) and (2) of this definition, a cluster of programs. The types of'clusters of programs are: (i);Research and development (R&D); (ii) Student financial aid (SFA); and (iii) "Other clusters," as described in the definition of cluster of programs in this section. • GAGAS means generally accepted government auditing standards issued by the Comptroller General of the United States, which are applicable to financial audits. Generally accepted accounting principles has the meaning specified in generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA). Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation (as defined in, or established under, the Alaskan Native Claims Settlement Act) that is recognized by the United States as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. Internal control means a process, effected by an entity's management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (1) Effectiveness and efficiency of operations; (2) Reliability of financial reporting; and (3) Compliance with applicable laws and regulations. Internal control pertaining to the compliance requirements for Federal programs (Internal control over Federal programs) means a process--effected by an entity's management and other personnel--designed to provide reasonable assurance regarding the achievement of the following objectives for Federal programs: (1) Transactions are properly recorded and accounted for to: (i) Permit the preparation of reliable financial statements and Federal reports; • • (ii) Maintain accountability over assets; and (iii) Demonstrate compliance with laws, regulations, and other compliance requirements; (2) Transactions are executed in compliance with: • http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a133.html 8/31/2009 means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals as described in § .205(h) and § .205(i). Federal program means: http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 mb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (i) Laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on a Federal program; and (ii) Any other laws and regulations that are identified in the compliance supplement; and (3) Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition. Loan means a Federal loan or loan guarantee received or administered by a non-Federal entity. Local government means any unit of local government within a State, including a county, borough, municipality, city, town, township, parish, local public authority, special district, school district, intrastate district, council of governments, and any other instrumentality of local government. Major program means a Federal program determined by the auditor to be a major program in accordance with § .520 or a program identified as a major program by a Federal agency or pass-through entity in accordance with § .215(c). Management decision means the evaluation by the Federal awarding agency or pass-through entity of the audit findings and corrective action plan and the issuance of a written decision as to what corrective action is necessary. Non-Federal entity means a State, local government, or non-profit organization. Non-profit organization means: (1) any corporation, trust, association, cooperative, or other organization that: (i) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; • (ii) Is not organized primarily for profit; and - (iii) Uses its net proceeds to maintain, improve, or expand its operations; and (2) The term non-profit organization includes non-profit institutions of higher education and hospitals. OMB means the Executive Office of the President, Office of Management and Budget. Oversight agency for audit means the Federal awarding agency that provides the predominant amount of direct funding to a recipient not assigned a cognizant agency for audit. When there is no direct funding, the Federal agency with the predominant indirect funding shall assume the oversight responsibilities. The duties of the oversight agency for audit are described in § .400 (b). Effective July 28, 2003, the following is added to this definition: A Federal agency with oversight for an auditee may reassign oversight to another Federal agency which provides substantial funding and agrees to be the oversight agency for audit. Within 30 days after any reassignment, both the old and the new oversight agency for audit shall notify the auditee, and, if known, the auditor of the reassignment. • http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a133.html 8/31/2009 and other assistance, but does not include amounts received as reimbursement for services rendered to individuals as described in § .205(h) and § .205(i). Federal program means: http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 mb/rewrite/circulars/al 10/all 0.html 8/31/2009 rmination. The recipient shall report all suspected or reported violations to the Federal awarding agency. • 4. Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333)-Where applicable, all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 J...ui LA-1 11 1JJ -- J 11-4U11.3 V1 VLULA.), LVliau \JV v 11ll11G11LJ, auu INu11-r1u11L Vig'au1LQuoiis rage / 01 .iL Pass-through entity means a non-Federal entity that provides a Federal award to a subrecipient to carry out a Federal program. Program-specific audit means an audit of one Federal program as provided for in § .200(c) and § .235. Questioned cost means a cost that is questioned by the auditor because of an audit finding: (1) Which resulted from a violation or possible violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the use of Federal funds, including funds used to match Federal funds; (2) Where the costs, at the time of the audit, are not supported by adequate documentation; or (3) Where the costs incurred appear unreasonable and do not reflect the actions a prudent person would take in the circumstances. Recipient means a non-Federal entity that expends Federal awards received directly from a Federal awarding agency to carry out a Federal program. Research and development (R&D) means all research activities, both basic and applied, and all development activities that are performed by a non-Federal entity. Research is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied. The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function. Development is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. Single audit means an audit which includes both the entity's financial statements'and the Federal awards as described in § .500. State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands,any instrumentality thereof, any multi-State, regional, or interstate entity which has governmental functions, and any Indian tribe as defined in this section. Student Financial Aid (SFA) includes those programs of general student assistance, such as those authorized by Title IV of the Higher Education Act of 1965, as amended, (20 U.S.C. 1070 et seq.) which is administered by the U.S. Department of Education, and similar programs provided by other Federal agencies. It does not include programs which provide fellowships or similar Federal awards to students on a competitive basis, or for specified studies or research. Subrecipient means a non-Federal entity that expends Federal awards received from a pass- through entity to carry out a Federal program, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency. Guidance on distinguishing between a subrecipient and a vendor is provided in § .210. Types of compliance requirements refers to the types of compliance requirements listed in the compliance supplement. Examples include: activities allowed or unallowed; allowable costs/cost http://www.whitehouse.gov/omb/revvrite/circulars/al 3 3/print/al 33.html 8/31/2009 ctions 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 principles; cash management; eligibility; matching, level of effort, earmarking; and, reporting. Vendor means a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a Federal program. These goods or services may be for an organization's own use or for the use of beneficiaries of the Federal program. Additional guidance on distinguishing between a subrecipient and a vendor is provided in § .210. Subpart B--Audits • § .200 Audit requirements. (a) Audit required. Non-Federal entities that expend $300,000 ($500,000 for fiscal years ending after December 31, 2003) or more in a year in Federal awards shall have a single or program- specific audit conducted for that year in accordance with the provisions of this part. Guidance on determining Federal awards expended is provided in § .205. (b) Single audit. Non-Federal entities that expend $300,000 ($500,000 for fiscal years ending after December 31, 2003) or more in a year in Federal awards shall have a single audit conducted in accordance with § .500 except when they elect to have a program-specific audit conducted in accordance with paragraph (c) of this section. (c) Program-specific audit election. When an auditee expends Federal awards under only one Federal program (excluding R&D).and the Federal program's laws, regulations, or grant agreements do not require a financial statement audit of the auditee, the auditee may elect to have a program-specific audit conducted in accordance with § .235. A program-specific audit may not be elected for R&D unless all of the Federal awards expended were received from the same Federal agency, or the same Federal agency and the same pass-through entity, and that Federal agency, or pass-through entity in the case of a subrecipient, approves in advance a program- specific audit. (d) Exemption when Federal awards expended are less than $300,000 ($500,000 for fiscal years ending after December 31, 2003). Non-Federal entities that expend less than $300,000 ($500,000 for fiscal years ending after December 31, 2003) a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in § .215(a), but records must be available for review or audit by appropriate officials of the Federal agency, pass- through entity, and General Accounting Office (GAO). (e) Federally Funded Research and Development Centers (FFRDC). Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part. • § .205 Basis for determining Federal awards expended. • (a) Determining Federal awards expended. The determination of when an award is.expended should be based on when the activity related to the award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with laws, regulations, and the provisions of contracts or grant agreements, such as: expenditure/expense transactions associated with grants, cost-reimbursement contracts, cooperative agreements, and direct appropriations; the disbursement of funds passed through to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or . use of program income; the distribution or consumption of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and, the period when insurance.is in force. http://www whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 1 3 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 S./. v�uwv ivvul vv v v1111111i11tJ, C111111v1/4111-11 vlll fa G 7 U1 .3G (b) Loan and loan guarantees (loans). Since the Federal Government is at risk for loans until the debt is repaid, the following guidelines shall be used to calculate the value of Federal awards expended under loan programs, except as noted in paragraphs (c) and (d) of this section: (1) Value of new loans made or received during the fiscal year; plus (2) Balance of loans from previous years for which the Federal Government imposes continuing compliance requirements; plus (3) Any interest subsidy, cash, or administrative cost allowance received. (c) Loan and loan guarantees (loans) at institutions of higher education. When loans are made to students of an institution of higher education but the institution does not make the loans, then only the value of loans made during the year shall be considered Federal awards expended in that year. The balance of loans for previous years is not included as Federal awards expended because the lender accounts for the prior balances. • (d) Prior loan and loan guarantees (loans). Loans, the proceeds of which were received and expended in prior-years, are not considered Federal awards expended under this part when the laws, regulations, and the provisions of contracts or grant agreements pertaining to such loans impose no continuing compliance requirements other than to repay the loans. (e) Endowment funds. The cumulative balance of Federal awards for endowment funds which are federally restricted are considered awards expended in each year in which the funds are still restricted. (f) Free rent. Free rent received by itself is not considered a Federal award expended under this part. However, free rent received as part of an award to carry out a Federal program shall be included in determining Federal awards expended and subject to audit under this part. (g) Valuing non-cash assistance. Federal non-cash assistance, such as free rent, food stamps, food commodities, donated property, or donated surplus property, shall be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency. (h) Medicare. Medicare payments to a non-Federal entity for providing patient care services to Medicare eligible individuals are not considered Federal awards expended under this part. (i) Medicaid. Medicaid payments to a subrecipient for providing patient care services to Medicaid eligible individuals are not considered Federal awards expended under this part unless a State requires the funds to be treated as Federal awards expended because reimbursement is on a cost- reimbursement basis. (j) Certain loans provided by the National Credit Union Administration. For purposes of this part, loans made from the National Credit Union Share Insurance Fund and the Central Liquidity Facility that are funded by contributions from insured institutions are not considered Federal awards expended. § .210 Subrecipient and vendor determinations. (a) General. An auditee may be a recipient, a subrecipient, and a vendor. Federal awards expended as a recipient or a subrecipient would be subject to audit under this part. The payments received for goods or services provided as a vendor would not be considered Federal awards. The guidance in paragraphs (b) and (c) of this section should be considered in determining whether payments constitute a Federal award or a payment for goods and services. http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a 133.html 8/31/2009 lars/al 3 3/print/a 1 3 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (b) Federal award. Characteristics indicative of a Federal award received by a subrecipient are when the organization: (1) Determines who is eligible to receive what Federal financial assistance; (2) Has its performance measured against whether the objectives of the Federal program are met; (3) Has responsibility for programmatic decision making; (4) Has responsibility for adherence to applicable Federal program compliance requirements; and (5) Uses the Federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity. (c) Payment for goods and services. Characteristics indicative of a payment for goods and services received by a vendor are when the organization: • (1) Provides the goods and services within normal business operations; (2) Provides similar goods or services to many different purchasers; (3) Operates in a competitive environment; (4) Provides goods or services that are ancillary to the operation of the Federal program; and (5) Is not subject to compliance requirements of the Federal program. (d) Use of judgment in making determination. There may be unusual circumstances or exceptions to the listed characteristics. In making the determination of whether a subrecipient or vendor relationship exists, the substance of the relationship is more important than the form of the agreement. It is not expected that all of the characteristics will be present and judgment should be used in determining whether an entity is a subrecipient or vendor. (e) For-profit subrecipient. Since this part does not apply to for-profit subrecipients, the pass- through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. The contract with the for-profit subrecipient should describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the contract, and post-award audits. (f) Compliance responsibility for.vendors. In most cases, the auditee's compliance responsibility for vendors is only to ensure that the procurement, receipt, and payment for goods and services comply with laws, regulations, and the provisions of contracts or grant agreements. Program compliance requirements normally do not pass through to vendors. However, the auditee is responsible for ensuring compliance for vendor transactions which are structured such that the vendor is responsible for program compliance or the vendor's records must be reviewed to determine program compliance. Also, when these vendor transactions relate to a major program, the scope of the audit shall include determining whether these transactions are in compliance with laws, regulations, and the provisions of contracts or grant agreements. § .215 Relation to other audit requirements. http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 and a vendor. Federal awards expended as a recipient or a subrecipient would be subject to audit under this part. The payments received for goods or services provided as a vendor would not be considered Federal awards. The guidance in paragraphs (b) and (c) of this section should be considered in determining whether payments constitute a Federal award or a payment for goods and services. http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a 133.html 8/31/2009 lars/al 3 3/print/a 1 3 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (a) Audit under this part in lieu of other audits. An audit made in accordance with this part shall be in lieu of any financial audit required under individual Federal awards. To the extent this audit meets a Federal agency's needs, it shall rely upon and use such audits. The provisions of this part neither limit the authority of Federal agencies, including their Inspectors General, or GAO to conduct or arrange for additional audits (e.g., financial audits, performance audits, evaluations, inspections, or reviews) nor authorize any auditee to constrain Federal agencies from carrying out additional audits. Any additional audits shall be planned and performed in such a way as to build upon work performed by other auditors. (b) Federal agency to pay for additional audits. A Federal agency that conducts or contracts for additional audits shall, consistent with other applicable laws and regulations, arrange for funding the full cost of such additional audits. (c) Request for a program to be audited as a major program. A Federal agency may request an auditee to have a particular Federal program audited as a major program in lieu of the Federal agency conducting or arranging for the additional audits. To allow for planning, such requests should be made at least 180 days prior to the end of the fiscal year to be audited. The auditee, after consultation with its auditor, should promptly respond to such request by informing the Federal agency whether the program would otherwise be audited as a major program using the risk-based audit approach described in § .520 and, if not, the estimated incremental cost. The Federal agency shall then promptly confirm to the auditee whether it wants the program audited as a major program. If the program is to be audited as a major program based upon this Federal agency request, and the Federal agency agrees to pay the full incremental costs, then the auditee shall have the program audited as a major program. A pass-through entity may use the provisions of this paragraph for a subrecipient. § .220 Frequency of audits: Except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, . audits required by this part shall be performed annually. Any biennial audit shall cover both years within the biennial period. (a) A State or local government that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo its audits pursuant to this part biennially. This requirement must still be in effect for the biennial period under audit. (b) Any non-profit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo its audits pursuant to this part biennially. § .225 Sanctions. No audit costs may be charged to Federal awards when audits required by this part have not been made or have been made but not in accordance with this part. In cases of continued inability or unwillingness to have an audit conducted in accordance with this part, Federal agencies and pass- through entities shall take appropriate action using sanctions such as: (a) Withholding a percentage of Federal awards until the audit is completed satisfactorily; (b) Withholding or disallowing overhead costs; (c) Suspending Federal awards until the audit is conducted; or (d) Terminating the Federal award. http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009. 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 § .230 Audit costs. (a) Allowable costs. Unless prohibited by law, the cost of audits made in accordance with the provisions of this part are allowable charges to Federal awards. The charges may be considered a direct cost or an allocated indirect cost, as determined in accordance with the provisions of applicable OMB cost principles circulars, the Federal Acquisition Regulation (FAR) (48 CFR parts 30 and 31), or other applicable cost principles or regulations. (b) Unallowable costs. A non-Federal entity shall not charge the following to a Federal award: (1) The cost of any audit under the Single Audit Act Amendments of 1996 (31 U.S.C. 7501 et seq.) not conducted in accordance with this part. (2) The cost of auditing a non-Federal entity which has Federal awards expended of less than $300,000 ($500,000 for fiscal years ending after December 31, 2003) per year and is thereby exempted under § .200(d) from having an audit conducted under this part. However, this does not prohibit a pass-through entity from charging Federal awards for the cost of limited scope audits to monitor its subrecipients in accordance with § .400(d)(3), provided the subrecipient does not have a single audit. For purposes of this part, limited scope audits only include agreed-upon procedures engagements conducted in accordance with either the AICPA's generally accepted auditing standards or attestation standards, that are paid for and arranged by a pass-through entity and address only one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; matching, level of effort, earmarking; and, reporting. § .235 Program-specific audits. (a) Program-specific audit guide available. In many cases, a program-specific audit guide will be available to provide specific guidance to the auditor with respect to internal control, compliance requirements, suggested audit procedures, and audit reporting requirements. The auditor should contact the Office of Inspector General of the Federal agency to determine whether such a guide is available. When a current program-specific audit guide is available, the auditor shall follow GAGAS and the guide when performing a program-specific audit. (b) Program-specific audit guide not available. (1) When a program-specific audit guide is not available, the auditee and auditor shall have basically the same responsibilities for the Federal program as they would have for an audit of a major program in a single audit. (2) The auditee shall prepare the financial statement(s) for the Federal program that includes, at a minimum, a schedule of expenditures of Federal awards for the program and notes that describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the requirements of § . .315(b), and a corrective action plan consistent with the requirements of § .315(c). (3) The auditor shall: (i) Perform an audit of the financial statement(s) for the Federal program in accordance with GAGAS; (ii) Obtain an understanding of internal control and perform tests of internal control over the Federal program consistent with the requirements of § .500(c) for a major program; http://www.whitehouse.gov/omb/rewrite/circulars/a 133/print/al 33.html 8/31/2009 until the audit is conducted; or (d) Terminating the Federal award. http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009. 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (iii) Perform procedures to determine whether the auditee has complied with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on the Federal program consistent with the requirements of § .500(d) for a major program; and • (iv) Follow up on prior audit findings, perform procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by the auditee, and report, as a current year audit finding, when the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding in accordance with the requirements of § .500(e). (4) The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. The auditor's report (s) shall:state that the audit was conducted in accordance with this part and include the following: (i) An opinion (or disclaimer of opinion) as to whether the financial statement(s) of the Federal program is presented fairly in all material respects in conformity with the stated accounting policies; (ii) A report on internal control related to the Federal program, which shall describe the scope of testing of internal control and the results of the tests; (iii) A report on compliance which includes an opinion (or disclaimer of opinion) as to whether the auditee complied with laws, regulations, and the provisions of contracts or grant agreements which could have a direct and material effect on the Federal program; and (iv) A schedule of findings and questioned costs for the Federal program that includes a summary of the auditor's results relative to the Federal program in a format consistent with § .505(d)(1) and findings and questioned costs consistent with the requirements of § .505(d)(3). (c) Report submission for program-specific audits. (1) The audit shall be completed and the reporting required by paragraph (c)(2) or (c)(3) of this section submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the Federal agency that provided the funding or a different period is specified in a program-specific audit guide. (However, for fiscal years beginning on or before June 30, 1998, the audit shall be completed and the required reporting shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or 13 months after the end of the. audit period, unless a different period is specified in a program-specific audit guide.) Unless restricted by law or regulation, the auditee shall make report copies available for public inspection. (2) When a program-specific audit guide is available, the auditee shall submit to the Federal clearinghouse designated by OMB the data collection form prepared in accordance with § .320(b), as applicable to a program-specific audit, and the reporting required by the program-specific audit guide to be retained as an archival copy. Also, the auditee shall submit to the Federal awarding agency or pass-through entity the reporting required by the program-specific audit guide. (3) When a program-specific audit guide is not available, the reporting package for a http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/al 3 3.html 8/31/2009 8/31/2009. 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 program-specific audit shall consist of the financial statement(s) of the Federal program, a summary schedule of prior audit findings, and a corrective action plan as described in • paragraph (b)(2) of this section, and the auditor's report(s) described in paragraph (b)(4) of this section. The data collection form prepared in accordance with § .320(b), as applicable to a program-specific audit, and one copy of this reporting package shall be submitted to the Federal clearinghouse designated by OMB to be retained as an archival • copy. Also, when the schedule of findings and questioned costs disclosed audit findings or the summary schedule of prior audit findings reported the status of any audit findings, the auditee shall submit one copy of the reporting package to the Federal clearinghouse on behalf of the Federal awarding agency, or directly to the pass-through entity in the case of a subrecipient. Instead of submitting the reporting package to the pass-through entity, when a subrecipient is not required to submit a reporting package to the pass-through entity, the subrecipient shall provide written notification to the pass-through entity, consistent with the requirements of § .320(e)(2). A subrecipient may submit a copy of the reporting package to the pass-through entity to comply with this notification requirement. (d) Other sections of this part may apply. Program-specific audits are subject to § .100 through § .215(b), § .220 through § .230, § .300 through § .305, § .315, § .320(f) through § .320(j), § .400 through § .405, § .510 through § .515, and other referenced provisions of this part unless contrary to the provisions of this section, a program-specific audit guide, or program laws and regulations. Subpart C--Auditees § .300 Auditee responsibilities. The auditee shall: (a) Identify, in its accounts, all Federal awards received and expended and the Federal programs under which they were received. Federal program and award identification shall include, as applicable, the CFDA title and number, award number and year, name of the Federal agency, and name of the pass-through entity. (b) Maintain internal control over Federal programs that provides reasonable assurance that the auditee is managing Federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its Federal programs. (c) Comply with laws, regulations, and the provisions of contracts or grant agreements related to each of its Federal programs. (d) Prepare appropriate financial statements, including the schedule of expenditures of Federal . awards in accordance with § .310. • (e) Ensure that the audits required by this part are properly performed and submitted when due. When extensions to the report submission due date required by § .320(a) are granted by the cognizant or oversight agency for audit, promptly notify the Federal clearinghouse designated by OMB and each pass-through entity providing Federal awards of the extension. (f) Follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action plan in accordance with § .315(b) and § .315(c), respectively. • § .305 Auditor selection. http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 3 3.html 8/31/2009 /omb/rewrite/circulars/a 13 3/print/al 3 3.html 8/31/2009 8/31/2009. 3.html 8/31/2009 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333), as supplemented by Department of Labor regulations(29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 1/2-times the basic rate of nay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is annlicahle to http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/3 1/2009 ars/a110/al 10.html 8/31/2009 dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 ._»..... -- ..... . \J lCIIVJ l v�ui v u v c111111c11LJ, anu 1V 1J11-i roii l urganizaulons rage 1 J or .32 (a) Auditor procurement. In procuring audit services, auditees shall follow the procurement standards prescribed by the Grants Management Common Rule (hereinafter referred to as the "A- 102 Common Rule") published March 11, 1988 and amended April 19, 1995 [insert appropriate CFR citation], Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations," or the FAR (48 CFR part 42), as applicable (OMB Circulars are available from the Office of Administration, Publications Office, room 2200, New Executive Office Building, Washington, DC 20503). Whenever possible, auditees shall make positive efforts to utilize small businesses, minority-owned firms, and women's business enterprises, in procuring audit services as stated in the A-102 Common Rule, OMB Circular A-110, or the FAR (48 CFR part 42), as applicable. In requesting proposals for audit services, the objectives and scope of the audit should be made clear. Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of external quality control reviews, and price. (b) Restriction on auditor preparing indirect cost proposals. An auditor who prepares the indirect cost proposal or cost allocation plan may not also be selected to perform the audit required by this part when the indirect costs recovered by the auditee during the prior year exceeded $1 million. This restriction applies to the base year used in the preparation of the indirect cost proposal or cost allocation plan and any subsequent years in which the resulting indirect cost agreement or cost allocation plan is used to recover costs. To minimize any disruption in existing contracts for audit services, this paragraph applies to audits of fiscal years beginning after June 30, 1998. (c) Use of Federal auditors. Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. § .310 Financial statements. (a) Financial statements. The auditee shall prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. The financial statements shall be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. However, organization-wide financial statements may also include departments, agencies, and other organizational units that have separate audits in accordance with § .500(a) and prepare separate financial statements. (b) Schedule of expenditures of Federal awards. The auditee shall also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple award years, the auditee may list the amount of Federal awards expended for each award year separately. At a minimum, the schedule shall: (1) List individual Federal programs by Federal agency. For Federal programs included in a cluster of programs, list individual Federal programs within a cluster of programs. For R&D, total Federal awards expended shall be shown either by individual award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (4) Include notes that describe the significant accounting policies used in preparing the schedule. (5) To the extent practical, pass-through entities should identify in the schedule the total amount provided to subrecipients from each Federal program. (6) Include, in either the schedule or a note to the schedule, the value of the Federal awards expended in the form of non-cash assistance, the amount of insurance in effect during the year, and loans or loan guarantees outstanding at year end. While not required, it is preferable to present this information in the schedule. § .315 Audit findings follow-up. (a) General. The auditee is responsible for follow-up and corrective action on all audit findings. As part of this responsibility, the auditee shall prepare a summary schedule of prior audit findings. The auditee shall also prepare a corrective action plan for current year audit findings. The summary schedule of prior audit findings and the corrective action plan shall include the reference numbers the auditor assigns to audit findings under § .510(c). Since the summary schedule may include audit findings from multiple years, it shall include the fiscal year in which the finding initially occurred. (b) Summary schedule of prior audit findings. The summary schedule of prior audit findings shall report the status of all audit findings included in the prior audit's schedule of findings and questioned costs relative to Federal awards. The summary schedule shall also include audit findings reported in the prior audit's summary schedule of prior audit findings except audit findings listed as corrected in accordance with paragraph (b)(1) of this section, or no longer valid or not warranting further action in accordance with paragraph (b)(4) of this section. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken. (2) When audit findings were not corrected or were only partially corrected, the summary schedule shall describe the planned corrective action as well as any partial corrective action taken. (3) When corrective action taken is significantly different from corrective action previously reported in a corrective action plan or in the Federal agency's or pass-through entity's __ _ management decision, the summary schedule shall-provide an explanation. (4) When the auditee believes the audit findings are no longer valid or do not warrant further action, the reasons for this position shall be described in the summary schedule. A valid reason for considering an audit finding as not warranting further action is that all of the following have occurred: (i) Two years have passed since the audit report in which the finding occurred was submitted to the Federal clearinghouse; • (ii) The Federal agency or pass-through entity is not currently following up with the auditee on the audit finding; and (iii) A management decision was not issued. (c) Corrective action plan. At the completion of the audit, the auditee shall prepare a corrective action plan to address each audit finding included in the current year auditor's reports. The http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 1 33.html 8/31/2009 award years, the auditee may list the amount of Federal awards expended for each award year separately. At a minimum, the schedule shall: (1) List individual Federal programs by Federal agency. For Federal programs included in a cluster of programs, list individual Federal programs within a cluster of programs. For R&D, total Federal awards expended shall be shown either by individual award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 �11�.ui141 t 1-1JJ -- 11t 1l VL eJ lUl4J LVVUI VV V 1.11U111+111J, U11U.1 V V11-11Vlll V16 U111LU11V11J 1 U6V 1 / 1./1 JG corrective action plan shall provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. If the auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan shall include an explanation and specific reasons. § .320 Report submission. (a) General. The audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. (However, for fiscal years beginning on or before June 30, 1998, the audit shall be completed and the data collection form and reporting package shall be submitted•within the earlier of 30 days after receipt of the auditor's report(s), or 13 months after the end of the audit period.) Unless restricted by law or regulation, the auditee shall make copies available for public inspection. (b) Data Collection. (1) The auditee shall submit a data collection form which states whether the audit was completed in accordance with this part and provides information about the auditee, its Federal programs, and the results of the audit. The form shall be approved by OMB, available • from the Federal clearinghouse designated by OMB, and include data elements similar to those presented in this paragraph. A senior level representative of the auditee (e.g., State controller, director of finance, chief executive officer, or chief financial officer) shall sign a statement to be included as part of the form certifying that: the auditee complied with the requirements of this part, the form was prepared in accordance with this part (and the instructions accompanying the form), and the information included in the form, in its entirety, are accurate and complete. (2) The data collection form shall include the following data elements: (i) The type of report the auditor issued on the financial statements of the auditee (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). (ii) Where applicable, a statement that reportable conditions in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that reportable conditions in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major programs (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). • (vi) A list of the Federal awarding agencies which will receive a copy of the reporting package pursuant to § .320(d)(2) of OMB Circular A-133. (vii) A yes or no statement as to whether the auditee qualified as a low-risk auditee • under § .530 of OMB Circular A-133. http://wvvw.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 . For R&D, total Federal awards expended shall be shown either by individual award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (viii) The dollar threshold used to distinguish between Type A and Type B programs as defined in § .520(b) of OMB Circular A-133. (ix) The Catalog of Federal Domestic Assistance (CFDA) number for each Federal program, as applicable. (x) The name of each Federal program and identification of each major program. Individual programs within a cluster of programs should be listed in the same level of detail as they are listed in the schedule of expenditures of Federal awards. (xi) The amount of expenditures in the schedule of expenditures of Federal awards associated with each Federal program. (xii) For each Federal program, a yes or no statement as to whether there are audit findings in each of the following types of compliance requirements and the total amount of any questioned costs: (A) Activities allowed or unallowed. (B) Allowable costs/cost principles. (C) Cash management. (D) Davis-Bacon Act. (E) Eligibility. • (F) Equipment and real property management. (G) Matching, level of effort, earmarking. (H) Period of availability of Federal funds. (I) Procurement and suspension and debarment. (3) Program income. (K) Real property acquisition and relocation assistance. (L) Reporting. (M) Subrecipient monitoring. (N) Special tests and provisions. (xiii) Auditee Name, Employer Identification Number(s), Name and Title of Certifying Official, Telephone Number, Signature, and Date. (xiv) Auditor Name, Name and Title of Contact Person, Auditor Address, Auditor Telephone Number, Signature, and Date. (xv) Whether the auditee has either a cognizant or oversight agency for audit. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ive officer, or chief financial officer) shall sign a statement to be included as part of the form certifying that: the auditee complied with the requirements of this part, the form was prepared in accordance with this part (and the instructions accompanying the form), and the information included in the form, in its entirety, are accurate and complete. (2) The data collection form shall include the following data elements: (i) The type of report the auditor issued on the financial statements of the auditee (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). (ii) Where applicable, a statement that reportable conditions in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that reportable conditions in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major programs (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). • (vi) A list of the Federal awarding agencies which will receive a copy of the reporting package pursuant to § .320(d)(2) of OMB Circular A-133. (vii) A yes or no statement as to whether the auditee qualified as a low-risk auditee • under § .530 of OMB Circular A-133. http://wvvw.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 . For R&D, total Federal awards expended shall be shown either by individual award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 ___.._.._ _ ..— �...»..... .� ti,..»..... a�v v.w.+ vv •vaaa+++v++ �l a+v 1.v+a a+vla1. Vabua llLuaa vaaJ S. 1 l V1 JL (xvi) The name of the cognizant or oversight agency for audit determined in accordance with § .400(a) and § .400(b), respectively. (3) Using the information included in the reporting package described in paragraph (c) of this section, the auditor shall complete the applicable sections of the form. The auditor shall sign a statement to be included as part of the data collection form that indicates, at a minimum, the source of the information included in the form, the auditor's responsibility for the information, that the form is not a substitute for the reporting package described in paragraph (c) of:this section, and that the content of the form is limited to the data elements prescribed by OMB. (c) Reporting package. The reporting package shall include the: (1) Financial statements and schedule of expenditures of Federal awards discussed in § .31O(a) and § .310(b), respectively; (2) Summary schedule of prior audit findings discussed in § .315(b); (3) Auditor's report(s) discussed in § .505; and (4) Corrective action plan discussed in § .315(c). (d) Submission to clearinghouse. All auditees shall submit to the Federal clearinghouse designated by OMB the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section for: (1) The Federal clearinghouse to retain as an archival copy; and • (2) Each Federal awarding agency when the schedule of findings and questioned costs disclosed audit findings relating to Federal awards that the Federal awarding agency provided directly or the summary schedule of prior audit findings reported the.status of any audit findings relating to Federal awards that the Federal awarding agency provided directly. (e) Additional submission by subrecipients. (1) In addition to the requirements discussed in paragraph (d) of this section, auditees that are also subrecipients shall submit to each pass-through entity one copy of the reporting package described in paragraph (c) of this section for each pass-through entity when the schedule of findings and questioned costs disclosed audit findings relating to Federal awards that the pass-through entity provided or the summary schedule of prior audit findings reported the status of any audit findings relating to Federal awards that the pass-through entity provided. (2) Instead of submitting the reporting package to a pass-through entity, when a subrecipient is not required to submit a reporting package to a pass-through entity pursuant to paragraph (e)(1) of this section, the subrecipient shall provide written notification to the pass-through entity that: an audit of the subrecipient was conducted in accordance with this part (including the period covered by the audit and the name, amount, and CFDA number of the Federal award(s) provided by the pass-through entity); the schedule of findings and questioned costs disclosed no audit findings relating to the Federal award(s) that the pass- through entity provided; and, the summary schedule of prior audit findings did not report on the status of any audit findings relating to the Federal award(s) that the pass-through entity provided. A subrecipient may submit a copy of the reporting package described in paragraph (c) of this section to a pass-through entity to comply with this notification requirement. http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 3 3.html 8/31/2009 all be shown either by individual award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (f) Requests for report copies. In response to requests by a Federal agency or pass-through entity, auditees shall submit the appropriate copies of the reporting package described in paragraph (c) of this section and, if requested, a copy of any management letters issued by the auditor. (g) Report retention requirements. Auditees shall keep one copy of the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section on file for three years from the date of submission to the Federal clearinghouse designated by OMB. Pass-through entities shall keep subrecipients' submissions on file for three years from date of receipt. (h) Clearinghouse responsibilities. The Federal clearinghouse designated by OMB shall distribute the reporting packages received in accordance with paragraph (d)(2) of this section and § .235(c)(3) to applicable Federal awarding agencies, maintain a data base of completed audits, provide appropriate information to Federal agencies, and follow up with known auditees which have not submitted the required data collection forms and reporting packages. (i) Clearinghouse address. The address of the Federal clearinghouse currently designated by OMB is Federal Audit Clearinghouse, Bureau of the Census, 1201 E. 10th Street, Jeffersonville, IN 47132. (j) Electronic filing. Nothing in this part shall preclude electronic submissions to the Federal clearinghouse in such manner as may be approved by OMB. With OMB approval, the Federal clearinghouse may pilot test methods of electronic submissions. Subpart D--Federal Agencies and Pass-Through Entities § .400 Responsibilities. (a) Cognizant agency for audit responsibilities. Recipients expending more than $25 million ($50 million for fiscal years ending after December 31, 2003) a year in Federal awards shall have a cognizant agency for audit. The designated cognizant agency for audit shall be the Federal awarding agency that provides the predominant amount of direct funding to a recipient unless OMB makes a specific cognizant agency for audit assignment. Following is effective for fiscal years ending on or before December 31, 2003: To provide for continuity of cognizance, the determination of the predominant amount of direct funding shall be based upon direct Federal awards expended in the recipient's fiscal years ending in 1995, 2000, 2005, and every fifth year thereafter. For example, audit cognizance for periods ending in 1997 through 2000 will be determined based on Federal awards expended in 1995. (However, for States and local governments that expend more than $25 million a year in Federal awards and have previously assigned cognizant agencies for audit, the requirements of this paragraph are not effective until fiscal years beginning after June 30, 2000.) Following is effective for fiscal years ending after December 31, 2003: The determination of the predominant amount of direct funding shall be based upon direct Federal awards expended in the recipient's fiscal years ending in 2004,. 2009, 2014, and every fifth year thereafter. For example, audit cognizance for periods ending in 2006 through 2010 will be determined based on Federal awards expended in 2004. (However, for 2001 through 2005, the cognizant agency for audit is determined based on the predominant amount of direct Federal awards expended in the recipent's fiscal year ending in 2000). • Notwithstanding the manner in which audit cognizance is determined, a Federal awarding agency with cognizance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 provides substantial direct funding and agrees to be the cognizant agency for audit. Within 30 days after any reassignment, both the old and the new cognizant agency for audit shall notify the auditee, and, if known, the auditor of the reassignment. The cognizant agency for audit shall: (1) Provide technical audit advice and liaison to auditees and auditors. (2) Consider auditee requests for extensions to the report submission due date required by § .320(a). The cognizant agency for audit may grant extensions for good cause. (3) Obtain or conduct quality control reviews of selected audits made by non-Federal auditors, and provide the results, when appropriate, to other interested organizations. (4) Promptly inform other affected Federal agencies and appropriate Federal law enforcement • officials of any direct reporting by the auditee or its auditor of irregularities or illegal acts, as required by GAGAS or laws and regulations. (5) Advise the auditor and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective action by the auditor. When advised of deficiencies, the auditee shall work with the auditor to take corrective action. If corrective action is not taken, the cognizant agency for audit shall notify the auditor, the auditee, and applicable Federal awarding agencies and pass-through entities of the facts and make recommendations for follow-up action. Major inadequacies or repetitive substandard performance by auditors shall be referred to appropriate State licensing agencies and professional bodies for disciplinary action. (6) Coordinate, to the extent practical, audits or reviews made by or for Federal agencies that are in addition to the audits made pursuant to this part, so that the additional audits or reviews build upon audits performed in accordance with this part. (7) Coordinate a management decision for audit findings that affect the Federal programs of more than one agency. (8) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit. (9) For biennial audits permitted under § .220, consider auditee requests to qualify as a low-risk auditee under § .530(a). (b) Oversight agency for audit responsibilities. An auditee which does not have a designated cognizant agency for audit will be under the general oversight of the Federal agency determined in accordance with § .105. The oversight agency for audit: (1) Shall provide technical advice to auditees and auditors as requested. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. (c) Federal awarding agency responsibilities. The Federal awarding agency shall perform the following for the Federal awards it makes: (1) Identify Federal awards made by informing each recipient of the CFDA title and number, award name and number, award year, and if the award is for R&D. When some of this information is not available, the Federal agency shall provide information necessary to clearly • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/3 1/2009 on Federal awards expended in 2004. (However, for 2001 through 2005, the cognizant agency for audit is determined based on the predominant amount of direct Federal awards expended in the recipent's fiscal year ending in 2000). • Notwithstanding the manner in which audit cognizance is determined, a Federal awarding agency with cognizance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 describe the Federal award. (2) Advise recipients of requirements imposed on them by Federal laws, regulations, and the provisions of contracts or grant agreements. (3) Ensure that audits are completed and reports are received in a timely manner and in accordance with the requirements of this part. (4) Provide technical advice and counsel to auditees and auditors as requested. (5) Issue a management decision on audit findings within six months after receipt of the audit report and ensure that the recipient takes appropriate and timely corrective action. (6) Assign a person responsible for providing annual updates of the compliance supplement to OMB. • (d) Pass-through entity responsibilities. A pass-through entity shall perform the following for the Federal awards it makes: (1) Identify Federal awards made by informing each subrecipient of CFDA title and number, • award name and number, award year, if the award is R&D, and name of Federal agency. When some of this information is not available, the pass-through entity shall provide the best information available to describe the Federal award. (2) Advise subrecipients of requirements imposed on them by Federal laws, regulations, and the provisions of contracts or grant agreements as well as any supplemental requirements imposed by the pass-through entity. (3) Monitor the activities of subrecipients as necessary to ensure that Federal awards are used for authorized purposes in compliance with laws, regulations, and the provisions of contracts or grant agreements and that performance goals are achieved. (4) Ensure that subrecipients expending $300,000 ($500,000 for fiscal years ending after December 31, 2003) or more in Federal awards during the subrecipient's fiscal year have met the audit requirements of this part for that fiscal year. (5) Issue a management decision on audit findings within six months after receipt of the subrecipient's audit report and ensure that the subrecipient takes appropriate and timely corrective action. (6) Consider whether subrecipient audits necessitate adjustment of the pass-through entity's own records. (7) Require each subrecipient to permit the pass-through entity and auditors to have access to the records and financial statements as necessary for the pass-through entity to comply with this part. § .405 Management decision. • (a) General. The management decision shall clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. If the auditee has not completed corrective action, a timetable for follow-up should be given. Prior to issuing the management decision, the http://wwvv.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 number, award name and number, award year, and if the award is for R&D. When some of this information is not available, the Federal agency shall provide information necessary to clearly • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/3 1/2009 on Federal awards expended in 2004. (However, for 2001 through 2005, the cognizant agency for audit is determined based on the predominant amount of direct Federal awards expended in the recipent's fiscal year ending in 2000). • Notwithstanding the manner in which audit cognizance is determined, a Federal awarding agency with cognizance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 U4. LJ Vl i Z. Federal agency or pass-through entity may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. The management decision should describe any appeal process available to the auditee. (b) Federal agency. As provided in.§ .400(a)(7), the cognizant agency for audit shall be responsible for coordinating a management decision for audit findings that affect the programs of more than one Federal agency. As provided in § .400(c)(5), a Federal awarding agency is responsible for issuing a management decision for findings that relate to Federal awards it makes to recipients. Alternate arrangements may be made on a case-by-case basis by agreement among the Federal agencies concerned. (c) Pass-through entity. As provided in § .400(d)(5), the pass-through entity shall be responsible for making the management decision for audit findings that relate to Federal awards it makes to subrecipients. (d) Time requirements. The entity responsible for making the management decision shall do so within six months of receipt of the audit report. Corrective action should be initiated within six months after receipt of the audit report and proceed as rapidly as possible. (e) Reference numbers. Management decisions shall include the reference numbers the auditor assigned to each audit finding in accordance with § .510(c). Subpart E--Auditors § .500 Scope of audit. (a) General. The audit shall be conducted in accordance with GAGAS. The audit shall cover the entire operations of the auditee; or, at the option of the auditee, such audit shall include a series of audits that cover departments, agencies, and other organizational units which expended or otherwise administered Federal awards during such fiscal year, provided that each such audit shall encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which shall be considered to be a non-Federal entity. The financial statements and schedule of expenditures of Federal awards shall be for the same fiscal year. (b) Financial statements. The auditor shall determine whether the financial statements of the auditee are presented fairly in all material respects in conformity with generally accepted accounting principles. The auditor shall also determine whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the auditee's financial statements taken as a whole. (c) Internal control. (1) In addition to the requirements of GAGAS, the auditor shall perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk for major programs. (2) Except as provided in paragraph (c)(3) of this section, the auditor shall: (i) Plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; and http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 3 3.html 8/31/2009 for audit is determined based on the predominant amount of direct Federal awards expended in the recipent's fiscal year ending in 2000). • Notwithstanding the manner in which audit cognizance is determined, a Federal awarding agency with cognizance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (ii) Perform testing of internal control as planned in paragraph (c)(2)(i) of this section. (3) When internal'control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph (c)(2) of this section are not required for those compliance requirements. However, the auditor shall report a reportable condition (including whether any such condition is a material weakness) in accordance with§ .510, assess the related control risk at the maximum; and consider whether additional compliance tests are required because of ineffective internal control. (d) Compliance. (1) In addition to the requirements of GAGAS, the auditor shall determine whether the auditee has complied with laws, regulations, and the provisions of contracts or grant agreements that may have a direct and material effect on each of its major programs. (2) The principal compliance requirements applicable to most Federal programs and the compliance requirements of the largest Federal programs are included in the compliance supplement. (3) For the compliance requirements related to Federal programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. Where there have been changes to the compliance requirements and the changes are not reflected in the compliance supplement, the auditor shall determine the current compliance requirements and modify the audit procedures accordingly. For those Federal programs not covered in the compliance supplement, the auditor should use the types of compliance requirements contained in the compliance supplement as guidance for identifying the types of compliance requirements to test, and determine the requirements governing the Federal program by reviewing the provisions of contracts'and grant agreements and the laws and regulations referred to in such contracts and grant agreements. • (4) The compliance testing shall include tests of transactions and such other auditing procedures necessary to provide the auditor sufficient evidence to support an opinion on compliance. (e) Audit follow-up. The auditor shall follow-up on prior audit findings, perform procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by.the auditee in accordance with § .315(b), and report, as a current year audit finding, when the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding. The auditor shall perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. (f) Data Collection Form. As required in § .320(b)(3), the auditor shall complete and sign specified sections of the data collection form. § .505 Audit reporting. The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. The auditor's report(s) shall state that the audit was conducted in accordance with this part and include the following: (a) An opinion (or disclaimer of opinion) as to whether the financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles and an opinion • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 33.html 8/31/2009 zance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 ...a+v wawa . + a�. + a...w+r. va vuavJ .vVvu.a vV•viii+i+vli iJ t41141 i\Vll 1 iVlll Vi s141111�LL 11VliJ i t46V L✓ Vi .-/ (or disclaimer of opinion) as to whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the financial statements taken as a whole. (b) A report on internal control related to the financial statements and major programs. This report shall describe the scope of testing of internal control and the results of the tests; and, where applicable, refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. (c) A report on compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements. This report shall also include an opinion (or disclaimer of opinion) as to whether the auditee complied with laws, regulations, and the provisions of contracts or grant agreements which could have a direct and material effect on each major program, and, where applicable, refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. (d) A schedule of findings and questioned costs which shall include the following three components: (1) A summary of the auditor's results which shall include: (i) The type of report the auditor issued on the financial statements of the auditee (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (ii) Where applicable, a statement that reportable conditions in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses; (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee; (iv) Where applicable, a statement that reportable conditions in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses; (v) The type of report the auditor issued on compliance for major programs (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (vi) A statement as to whether the audit disclosed any audit findings which the auditor is required to report under § .510(a); (vii) An identification of major programs; (viii)The dollar threshold used to distinguish between Type A and Type B programs, as described in § .520(b); and (ix.) A statement as to whether the auditee qualified as a low-risk auditee under § .530. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. (3) Findings and questioned costs for Federal awards which shall include audit findings as defined in § .510(a). http://www.whitehouse.gov/omb/rewrite/circulars/a 1 3 3/print/al 33.html • 8/31/2009 parate reports and may be organized differently from the manner presented in this section. The auditor's report(s) shall state that the audit was conducted in accordance with this part and include the following: (a) An opinion (or disclaimer of opinion) as to whether the financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles and an opinion • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 33.html 8/31/2009 zance for an auditee may reassign cognizance to another Federal awarding agency which http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 13 3.html 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • (i) Audit findings (e.g., internal control findings, compliance findings, questioned costs, or fraud) which relate to the same issue should be presented as a single audit finding. Where practical, audit findings should be organized by Federal agency or pass-through entity. (ii) Audit findings which relate to both the financial statements and Federal awards, as reported under paragraphs (d)(2) and (d)(3) of this section, respectively, should be reported in both sections of the schedule. However, the reporting in one section of the schedule may be in summary form with a reference to a detailed reporting in the other section of the schedule. § .510 Audit findings. (a) Audit findings reported. The auditor shall report the following as audit findings in a schedule of findings and questioned costs: (1) Reportable'conditions in internal control over major programs. The auditor's determination of whether a deficiency in internal control is a reportable condition for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. The auditor shall identify reportable conditions which are individually or cumulatively material • weaknesses. • (2) Material noncompliance with the provisions of laws, regulations, contracts, or grant agreements related to a major program. The auditor's determination of whether a noncompliance with the provisions of laws, regulations, contracts, or grant agreements is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. (3) Known questioned costs which are greater than $10,000 for a type of compliance requirement for a major program. Known questioned costs are those specifically identified by the auditor. In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the best estimate of total costs questioned (likely questioned costs), not just the questioned costs specifically identified (known questioned costs). The auditor shall also report known questioned costs when likely questioned costs are greater than $10,000 for a type of compliance requirement for a major program. In reporting questioned costs, the auditor shall include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. (4) Known questioned costs which are greater than $10,000 for a Federal.program which is not audited as a major program. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program which is not audited as a major program. However, if the auditor does become aware of questioned costs for a Federal program which is not audited as a major program (e.g., as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $10,000, then the auditor shall report this as an' audit finding. (5) The circumstances concerning why the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 audit finding in the schedule of findings and questioned costs for Federal awards. This paragraph does not require the auditor to make an additional reporting when the auditor confirms that the fraud was reported outside of the auditor's reports under the direct reporting requirements of GAGAS. (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with § .315(b) materially misrepresents the status of any prior audit finding. (b) Audit finding detail. Audit findings shall be presented in sufficient detail for the auditee to prepare a corrective action plan and take corrective action and for Federal agencies and pass- through entities to arrive at a management decision. The following specific information shall be included, as applicable, in audit findings: (1) Federal program and specific Federal award identification including the CFDA title and number, Federal award number and year, name of Federal agency, and name of the applicable pass-through entity. When information, such as the CFDA title and number or Federal award number, is not available, the auditor shall provide the best information available to describe the Federal award. (2) The criteria or specific requirement upon which the audit finding is based, including statutory, regulatory, or other citation. (3) The condition found, including facts that support the deficiency identified in the audit finding. (4) Identification of questioned costs and how they were computed. (5) Infor:mation to provide proper perspective for judging the prevalence and consequences of the audit findings, such as whether the audit findings represent an isolated instance or a systemic problem. Where appropriate, instances identified shall be related to the universe and the number of cases examined and be quantified in terms of dollar value. (6) The possible asserted effect to provide sufficient information to the auditee and Federal agency, or pass-through entity in the case of a subrecipient, to permit them to determine the cause and effect to facilitate prompt and proper corrective action. (7) Recommendations to prevent future occurrences of the deficiency identified in the audit finding. (8) Views of responsible officials of the auditee when there is disagreement with the audit findings, to the extent practical. (c) Reference numbers. Each audit finding in the schedule of findings and questioned costs shall include a reference number to allow for easy referencing of the audit findings during follow-up. § .515 Audit working papers. (a) Retention of working, papers. The auditor shall retain working papers and reports for a minimum of three years after the date of issuance of the auditor's report(s) to the auditee; unless the auditor is notified in writing by the cognizant agency for audit, oversight agency for audit, or pass-through entity to extend the retention period. When the auditor is aware that the Federal awarding agency, pass-through entity, or auditee is contesting an audit finding, the auditor shall contact the parties contesting the audit finding for guidance prior to destruction of the working http://www.whitehouse.gov/omb/revvrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 papers and reports. (b) Access to working papers. Audit working papers shall be made available upon request to the cognizant or oversight agency for audit or its designee, a Federal agency providing direct or indirect funding, or GAO at the completion of the audit, as part of a quality review, to resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this part. Access to working papers includes the right of Federal agencies to obtain copies of working papers, as is reasonable and necessary. § .520 Major program determination. • (a) General. The auditor shall use a risk-based approach to determine which Federal programs are major programs. This risk-based approach shall include consideration of: Current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. The process in paragraphs (b) through (i) of this section shall be followed. (b) Step 1. • (1) The auditor shall identify the larger Federal programs, which shall be labeled Type A programs. Type A programs are defined as Federal programs with Federal awards expended during the audit period exceeding the larger of: (i) $300,000 or three percent (.03) of total Federal awards expended in the case of an auditee for which total Federal awards expended equal or exceed $300,000 but are less than or equal to $100 million. (ii) $3 million or three-tenths of one percent (.003) of total Federal awards expended in the case of an auditee for which total Federal awards expended exceed $100 million but are less than or equal to $10 billion. (iii) $30 million or 15 hundredths of one percent (.0015) of total Federal awards expended in the case of an auditee for which total Federal awards expended exceed $10 billion. (2) Federal programs not labeled Type A under paragraph (b)(1) of this section shall be labeled Type B programs. (3.) The inclusion of large loan and loan guarantees (loans) should not result in the exclusion of other programs as Type A programs. When a Federal program providing loans significantly affects the number or size of Type A programs, the auditor shall consider this Federal program as a Type A program and exclude its values in determining other Type A programs. (4) For biennial audits permitted under § .220, the determination of Type A and Type B programs shall be based upon the Federal awards expended during the two-year period. (c) Step 2. (1) The auditor shall identify Type A programs which are low-risk. For a Type A program to be considered low-risk, it shall have been audited as a major program in at least one of the two most recent audit periods (in the most recent audit period in the case of a biennial audit), and, in the most recent audit period, it shall have had no audit findings under § .510(a). However, the auditor may use judgment and consider that audit findings from questioned costs under § .510(a)(3) and § .510(a)(4), fraud under § .510(a) (6), and audit follow-up for the summary schedule of prior audit findings under § .510 http://www.whitehouse.gov/omb/rewrite/circulars/a133/print/a133.html • 8/31/2009 3.html 8/31/2009 the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 (a)(7) do not preclude the Type A program from being low-risk. The auditor shall consider: the criteria in § .525(c), § .525(d)(1), § .525(d)(2), and § .525(d)(3); the results of audit follow-up; whether any changes in personnel or systems affecting a Type A program have significantly increased risk; and apply professional judgment in determining whether a Type A program is low-risk. . (2) Notwithstanding paragraph (c)(1) of this section, OMB may approve a Federal awarding agency's request that a Type A program at certain recipients may not be considered low-risk. For example, it may be necessary for a large Type A program to be audited as major each year at particular recipients to allow the Federal agency to comply with the Government Management Reform Act of 1994 (31 U.S.C. 3515). The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the end of the fiscal year to be audited of OMB's approval. (d) Step 3. (1) The auditor shall identify Type B programs which are high-risk using professional judgment and the criteria in § .525. However, should the auditor select Option 2 under • Step 4 (paragraph (e)(2)(i)(B) of this section), the auditor is not required to identify more high-risk Type B programs than the number of low-risk Type A programs. Except for known reportable conditions in internal control or compliance problems as discussed in § .525 (b)(1), § .525(b)(2), and § .525(c)(1), a single criteria in § .525 would seldom cause a Type B program to be considered high-risk. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed the larger of: (i) $100,000 or three-tenths of one percent (.003) of total Federal awards expended when the auditee has less than or equal to $100 million in total Federal awards expended. (ii) $300,000 or three-hundredths of one percent (.0003) of total Federal awards expended when the auditee has more than $100 million in total Federal awards expended. (e) Step 4. At a minimum, the auditor shall audit all of the following as major programs: (1) All Type A programs, except the auditor may exclude any Type A programs identified as low-risk under Step 2 (paragraph (c)(1) of this section). (2) (i) High-risk Type B programs as identified under either of the following two options: (A) Option 1. At least one half of the Type B programs identified as high-risk under Step 3 (paragraph (d) of this section), except this paragraph (e)(2)(i)(A) does not require the auditor to audit more high-risk Type B programs than the number of low- risk Type A programs identified as low-risk under Step 2. (B) Option 2. One high-risk Type B program for each Type A program identified as low-risk under Step 2. • (ii) When identifying which high-risk Type B programs to audit as major under either Option 1 or 2 in paragraph (e)(2)(i)(A) or (B), the auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 3 3.html 8/31/2009 8/31/2009 3.html 8/31/2009 the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 programs to be audited as major over a period of time. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. This paragraph (e)(3) may require the auditor to audit more programs as major than the number of Type A programs. (f) Percentage of coverage rule. The auditor shall audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 50 percent of,total Federal awards expended. If the auditee meets the criteria in § .530 for a low-risk auditee, the auditor need only audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 25 percent of total Federal awards expended. (g) Documentation of risk. The auditor shall document in the working papers the risk analysis process used in determining major programs. (h) Auditor's judgment. When the major program determination was performed and documented in accordance with this part, the auditor's judgment in applying the risk-based approach to determine major programs shall be presumed correct. Challenges by Federal agencies and pass- through entities shall only be for clearly improper use of the guidance in this part. However, Federal agencies and pass-through entities may provide auditors guidance about the risk of a particular Federal program and the auditor shall consider this•guidance in determining major programs in audits not yet completed. (i) Deviation from use of risk criteria. For first-year audits, the auditor may elect to determine major programs as all Type A programs plus any Type B programs as necessary to meet the percentage of coverage rule discussed in paragraph (f) of this section. Under this option, the auditor would not be required to perform the procedures discussed in paragraphs (c), (d), and (e) of this section. (1) A first-year audit is the first year the entity is audited under this part or the first year of a change of auditors. (2) To ensure that a frequent change of auditors would not preclude audit of high-risk Type B programs, this election for first-year audits may not be used by an auditee more than once in every three years. § .525 Criteria for Federal program risk. (a) General. The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring which could be material to the Federal program. The auditor shall use auditor judgment and consider criteria, such as described in paragraphs (b), (c), and (d) of this section, to identify risk in Federal programs. Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee management and the Federal agency or pass- through entity. (b) Current and prior audit experience. (1) Weaknesses in internal control over Federal programs would indicate higher risk. Consideration should be given to the control environment over Federal programs and such factors as the expectation of management's adherence to applicable laws and regulations and the provisions of contracts and grant agreements and the competence and experience of personnel who administer the Federal programs. (i) A Federal program administered under multiple internal control structures may have http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • higher risk. When assessing risk in a large single audit, the auditor shall consider whether weaknesses are isolated in a single operating unit (e.g., one college campus) or pervasive throughout the entity. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. (iii) The extent to which computer processing is used to administer Federal programs, as well as the complexity of that processing, should be considered by the auditor in assessing risk. New and recently modified computer systems may also indicate risk. (2) Prior audit findings would indicate higher risk, particularly when the situations identified in the audit findings could have a significant impact on a Federal program or have not been corrected. (3) Federal programs not recently audited as major programs may be of higher risk than Federal programs recently audited as major programs without audit findings. (c) Oversight exercised by Federal agencies and pass-through entities. (1) Oversight exercised by Federal agencies or pass-through entities could indicate risk. For • example, recent monitoring or other reviews performed by an oversight entity which disclosed no significant problems would indicate lower risk. However, monitoring which disclosed significant problems would indicate higher risk. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs which are higher risk. OMB plans to provide this identification in the compliance supplement. (d) Inherent risk of the Federal program. (1) The nature of a Federal program may indicate risk. Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. For example, Federal programs that disburse funds through third party contracts or have eligibility criteria may be of higher risk. Federal programs primarily involving staff payroll costs may have a high-risk for time and effort reporting, but otherwise be at low-risk. (2) The phase of a Federal program in its life cycle at the Federal agency may indicate risk. For example, a new Federal program with new or interim regulations may have higher risk than an established program with time-tested regulations. Also, significant changes in Federal programs, laws, regulations, or the provisions of contracts or grant agreements may increase risk. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. For example, during the first and last years that an auditee participates in a Federal program, the risk may be higher due to start-up or closeout of program activities and staff. (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. § .530 Criteria for a low-risk auditee. An auditee which meets all of the following conditions for each of the preceding two years (or, in • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a l 3 3.html 8/31/2009 acts and grant agreements and the competence and experience of personnel who administer the Federal programs. (i) A Federal program administered under multiple internal control structures may have http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 the case of biennial audits, preceding two audit periods) shall qualify as a•low-risk auditee and be eligible for reduced audit coverage,in accordance with § .520: (a) Single audits were performed on an annual basis in accordance with the provisions of this part. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee, unless agreed to in advance by the cognizant or oversight agency for audit. (b) The auditor's opinions on the financial statements and the schedule of expenditures of Federal awards were unqualified. However, the cognizant or oversight agency for audit may judge that an opinion qualification does not affect the management of Federal awards and provide a waiver. • (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. However, the cognizant or oversight agency for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. (d) None of the Federal programs had audit findings from any of the following in either of the preceding two years (or, in the case of biehnial audits, preceding two audit periods) in which they were classified as Type A programs: (1) Internal control deficiencies which were identified as material weaknesses; (2) Noncompliance with the provisions of laws, regulations, contracts, or grant agreements which have a material effect on the Type A program; or(3) Known or likely questioned costs that exceed five percent of the total Federal awards expended for a Type A program during the year. Appendix A to Part _ P .Collection Form (Form SF-SACS Appendix B to Part _ -.Circular A--133 Compliance Supplement • • Return to Top Return to this article at: http://www.whitehouse.gov/omb/circulars/a133/a133.html • • • • • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/al 3 3.html 8/31/2009 nd effort reporting, but otherwise be at low-risk. (2) The phase of a Federal program in its life cycle at the Federal agency may indicate risk. For example, a new Federal program with new or interim regulations may have higher risk than an established program with time-tested regulations. Also, significant changes in Federal programs, laws, regulations, or the provisions of contracts or grant agreements may increase risk. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. For example, during the first and last years that an auditee participates in a Federal program, the risk may be higher due to start-up or closeout of program activities and staff. (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. § .530 Criteria for a low-risk auditee. An auditee which meets all of the following conditions for each of the preceding two years (or, in • http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a l 3 3.html 8/31/2009 acts and grant agreements and the competence and experience of personnel who administer the Federal programs. (i) A Federal program administered under multiple internal control structures may have http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html 8/31/2009 are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an http://www.whitehouse.gov/omb/rewrite/circulars/al 3 3/print/a 13 3.html . 8/31/2009 8/31/2009 ithin the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 --- '---'- -- -__ `........ .......1......, .... v.. . V.6uut[.,uuvuo rage 11 01 3'f • As CIRCULAR NO. A-122 • Revised May io, 2004 TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS • SUBJECT: Cost Principles for Non-Profit Organizations 1. Purpose. This Circular establishes principles for determining costs of grants, contracts and other agreements with non-profit organizations. It does not apply to colleges and universities which are covered by Office of Management and Budget(OMB) Circular A-21, "Cost Principles for Educational Institutions"; State, local, and federally recognized Indian tribal governments which are covered by OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments"; or hospitals. The principles are designed to provide that the Federal Government bear its fair share of costs except where restricted or prohibited by law. The principles do not attempt to prescribe the extent of cost sharing or matching on grants, contracts, or other agreements. However, such cost sharing or matching shall not be accomplished through arbitrary limitations on individual cost elements by Federal agencies. Provision for profit or other increment above cost is outside the scope of this Circular. • • 2. Supersession. This Circular supersedes cost principles issued by individual agencies for non-profit organizations. 3. Applicability. a. These principles shall be used by all Federal agencies in determining the costs of work performed by non- profit organizations under grants, cooperative agreements, cost reimbursement contracts, and other contracts in which costs are used in pricing, administration, or settlement. All of these instruments are hereafter referred to as awards.The principles do not apply to awards under which an organization is not required to account to the Federal Government for actual costs incurred. b. All cost reimbursement subawards(subgrants, subcontracts, etc.)are subject to those Federal cost principles applicable to the particular organization concerned.Thus, if a subaward is to a non-profit organization,this Circular shall apply; if a subaward is to a commercial organization, the cost principles applicable to commercial concerns shall apply; if a subaward is to a college or university, Circular A-21 shall apply; if a subaward is to a State, local, or federally recognized Indian tribal government, Circular A-87 shall apply. • 4. Definitions. • a. Non-profit organization means any corporation, trust, association, cooperative, or other organization which: (1) is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; • (2) is not organized primarily for profit; and (3) uses its net proceeds to maintain, improve, and/or expand its operations. For this purpose, the term"non-profit organization"excludes (i)colleges and universities; (ii) hospitals; (iii) State, local, and federally recognized Indian tribal governments; and (iv)those non-profit organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular. Generally this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitutes approval of that cost. • 5. Exclusion of some non-profit organizations. Some non-profit organizations, because of their size and nature of operations, can be considered to be similar to commercial concerns for purpose of applicability of cost principles. Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns. A http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 s • FM listing of these organizations is contained in Attachment C. Other organizations may be added from time to time. 6. Responsibilities. Agencies responsible for administering programs that involve awards to non-profit organizations shall implement the provisions of this Circular. Upon request, implementing instruction shall be furnished to OMB. Agencies shall designate a liaison official to serve as the agency representative on matters relating to the implementation of this Circular.The name and title of such representative shall be furnished to OMB within 30 days of the date of this Circular. 7. Attachments. The principles and related policy guides are set forth in the following Attachments: Attachment A-General Principles Attachment B- Selected Items of Cost Attachment C.-Non-Profit Organizations Not Subject To This Circular 8. Requests for exceptions. OMB may grant exceptions to the requirements of this Circular when permissible under existing law. However, in the interest of achieving maximum uniformity, exceptions will be permitted only in highly unusual circumstances. . 9. Effective Date.The provisions of this Circular are effective immediately. Implementation shall be phased in by incorporating the provisions into new awards made after the start of the organization's next fiscal year. For existing awards,the new principles may be applied if an organization and the cognizant Federal agency agree. Earlier implementation, or a delay in implementation of individual provisions, is also permitted by mutual agreement between an organization and the cognizant Federal agency. 10. Inquiries. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, OMB, Washington, DC 20503,telephone (202) 395-3993. Attachments ATTACHMENT A Circular No.A-122 GENERAL PRINCIPLES Table of Contents A. Basic Considerations 1. Composition of total costs • 2. Factors affecting allowability of costs 3. Reasonable costs 4. Allocable costs 5. Applicable credits 6. Advance understandings 7. Conditional exemptions B. Direct Costs C. Indirect Costs D. Allocation of Indirect Costs and Determination of Indirect Cost Rates 1. General 2. Simplified allocation method 3. Multiple allocation base method • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 • a. Non-profit organization means any corporation, trust, association, cooperative, or other organization which: (1) is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; • (2) is not organized primarily for profit; and (3) uses its net proceeds to maintain, improve, and/or expand its operations. For this purpose, the term"non-profit organization"excludes (i)colleges and universities; (ii) hospitals; (iii) State, local, and federally recognized Indian tribal governments; and (iv)those non-profit organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular. Generally this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitutes approval of that cost. • 5. Exclusion of some non-profit organizations. Some non-profit organizations, because of their size and nature of operations, can be considered to be similar to commercial concerns for purpose of applicability of cost principles. Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns. A http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 vllvuiul 1 L 1 LL, VV JL 11111V11J1VJ 1V1 1\VIA 11V111 V1�U111 L.Ul.1V 11J 1 U5L ✓ V1 ✓T 1 • • 5. Special indirect cost rates • E. Negotiation and Approval of Indirect Cost Rates • 1. Definitions 2. Negotiation and approval of rates • ATTACHMENT A • Circular No. A-122 GENERAL PRINCIPLES • • A. Basic Considerations 1. Composition•of total costs. The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. 2. Factors affecting allowability of costs.To be allowable under an award,costs must meet the following general criteria: a. Be reasonable for the performance of the award and be allocable thereto under these principles. b. Conform to any limitations or exclusions set forth in these principles or in the award as to types or amount of cost items. c. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the organization. d. Be accorded consistent treatment. • e. Be determined in accordance with generally accepted accounting principles (GAAP). f. Not be.included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. • g. Be adequately documented. 3. Reasonable costs. A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred • by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. The question of the reasonableness of specific costs must be scrutinized with particular care in connection with organizations or separate divisions thereof which-receive the preponderance of Iheir support from awards made by Federal agencies. In determining the reasonableness of a given cost, consideration shall be given to: a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization or the performance of the award. b. The restraints or requirements imposed by such factors as generally accepted sound business practices, arms length bargaining, Federal and State laws and'regulations, and terms and conditions of the award. c. Whether the individuals concerned acted with prudence in the circumstances, considering•their responsibilities to the organization, its members, employees,•and clients, the public at large, and the Federal Government. d. Significant deviations from the established practices of the organization which may unjustifiably increase the award costs. 4. Allocable costs. ' • a. A cost is allocable to a particular cost objective, such as a grant, contract, project, service, or.other activity, in accordance with the relative benefits received.A cost is allocable to a Federal award if it is treated • http://www.whitehouse.gov/omb/rewrite/circulars/a 122/a 1 22_2004.html 8/31/2009 rnments; and (iv)those non-profit organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular. Generally this permission will be in writing. Where an item of cost requiring prior approval is specified in the budget of an award, approval of the budget constitutes approval of that cost. • 5. Exclusion of some non-profit organizations. Some non-profit organizations, because of their size and nature of operations, can be considered to be similar to commercial concerns for purpose of applicability of cost principles. Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns. A http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 the CFDA information is not available. http://www.whitehouse.gov/omb/rewrite/circulars/a 13 3/print/a 1 3 3.html 8/31/2009 multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. • • • http://www.whitehouse.gov/omb/rewrite/circulars/a 110/a l 10.html 8/31/2009 rewrite/circulars/a110/al 10.html 8/31/2009 ifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. • SUBPART C -Post-Award Requirements http://www.whitehouse.gov/omb/rewrite/circulars/a 110/al 10.html 8/31/2009 Government Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 • consistently with other costs incurred for the same purpose in like circumstances and if it: (1) Is incurred specifically for the award. (2) Benefits both the award and other work and can be distributed in reasonable proportion to the benefits received,or (3) Is necessary to the overall operation of the organization, although a direct relationship to any particular cost objective cannot be shown. b. Any cost allocable to a particular award or other cost objective under these principles may not be shifted to other Federal awards to overcome funding deficiencies, or to avoid restrictions imposed by law or by the terms of the award. 5.Applicable credits. a. The term applicable credits refers to those receipts, or reduction of expenditures which operate to offset or reduce expense items that are allocable to awards as direct or indirect costs. Typical examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds, and adjustments of overpayments or erroneous charges.To the extent that such credits accruing or received by the organization relate to allowable cost, they shall be credited to the Federal Government either as a cost reduction or cash refund, as appropriate. • b. In some instances,the amounts received from the Federal Government to finance organizational activities or service operations should be treated as applicable credits. Specifically, the concept of netting such credit items against related expenditures should be applied by the organization in determining the rates or amounts to be charged to Federal awards for services rendered whenever the facilities or other resources used in providing such services have been financed directly, in whole or in part, by Federal funds. c. For rules covering program income (i.e., gross income earned from federally supported activities) see Sec. _.24 of Office of Management and Budget(OMB)Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations." 6. Advance understandings. Under any given award, the reasonableness and allocability of certain items of costs may be difficult to determine,This is particularly true in connection with organizations that receive a preponderance of their support from Federal agencies. In order to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, it is often desirable to seek a written agreement with the cognizant or awarding agency in advance of the incurrence of special or unusual costs. The absence of an advance agreement on any element of cost will not, in itself, affect the reasonableness or allocability of that element. • 7. Conditional exemptions. a. OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for certain Federal programs with statutorily-authorized consolidated planning and consolidated . administrative funding, that are identified by a Federal agency and approved by the head of the Executive department or establishment.A Federal agency shall consult with OMB during its consideration of whether to grant such an exemption. b. To promote efficiency in State and local program administration,when Federal non-entitlement programs with common purposes have specific statutorily-authorized consolidated planning and consolidated administrative funding and where most of the State agency's resources come from non-Federal sources, Federal agencies may exempt these covered.State-administered, non-entitlement grant programs from certain OMB grants management requirements. The exemptions would be from all but the allocability of costs provisions of OMB Circulars A-87(Attachment A, subsection C.3), "Cost Principles for State, Local, and Indian Tribal Governments,"A-21 (Section C, subpart 4),"Cost Principles for Educational Institutions,"and A-122 (Attachment A, subsection A.4), "Cost Principles for.Non-Profit Organizations,"and from all of the administrative requirements provisions of OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations," and the agencies'grants management common rule. c. When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this option, a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds, which are consistent with the provisions of OMB Circular A-87, and extend such policies to all subrecipients. These fiscal and administrative requirements must be sufficiently specific to ensure that: funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 overnment Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 l.,usr rilileipies for ivon-rront organizations Page 5 of 34 necessary for operating these programs, and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. B. Direct Costs 1. Direct costs are those that can be identified specifically with a particular final cost objective, i.e., a particular award, project, service, or other direct activity of an organization. However, a cost may not be assigned to an award as a direct cost if any other cost incurred for the same purpose, in like circumstance, has been allocated to an award as an indirect cost. Costs identified specifically with awards are direct costs of the awards and are to be assigned directly thereto..Costs identified specifically with other final cost objectives of the organization are direct costs of those cost objectives and are not to be assigned to other awards directly or indirectly. 2. Any direct cost of a minor amount may be treated as an indirect cost for reasons of practicality where the accounting treatment for such cost is consistently applied to all final cost objectives. 3. The cost of certain activities are not allowable as charges to Federal awards (see, for example,fundraising costs. in paragraph 17 of Attachment B). However, even though these costs are unallowable for purposes of computing charges to Federal awards,they nonetheless must be treated as direct costs for purposes of determining indirect cost rates and be allocated,their share of the organization's indirect costs if they represent activities which (1) include the salaries of personnel, (2)occupy space, and(3) benefit,from the organization's indirect costs. 4. The costs of activities performed primarily as a service to members, clients, or the general public when significant and necessary to the organization's mission must be treated as direct costs whether or not allowable and be allocated an equitable share of indirect costs.Some examples of these types of activities include: • a. Maintenance of membership rolls, subscriptions, publications, and related functions. b. Providing services and information to members, legislative or administrative bodies, or the public. c. Promotion, lobbying, and other forms of public-relations. d. Meetings and conferences except those held to conduct the general administration of the organization. e. Maintenance, protection, and investment of special funds not used in operation of the organization. f. Administration of group benefits on behalf of members or clients, including life and hospital insurance, • annuity or retirement plans,financial aid, etc. • C. Indirect Costs 1. Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. Direct cost of minor amounts may be treated as indirect costs under the conditions described in subparagraph B.2. After direct costs have been determined and assigned directly to awards or other work as appropriate, indirect costs are those remaining to be allocated to benefiting cost objectives.A cost may not be allocated to an award as an indirect cost if any other cost incurred for the same purpose, in like • circumstances, has been assigned to an award as a direct cost. •2. Because of the diverse characteristics and accounting practices of non-profit organizations, it is not possible to specify the types of cost which may be classified as indirect cost in all situations. However, typical examples of indirect cost for many non-profit organizations may include depreciation or use allowances on buildings and equipment, the costs of operating and maintaining facilities, and general administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting. 3. Indirect costs shall be classified within two broad categories: "Facilities"and"Administration.""Facilities" is defined as depreciation and use allowances on buildings, equipment and capital improvement, interest on debt associated • with certain buildings,equipment and capital improvements, and operations and maintenance expenses. "Administration" is defined as general administration and general expenses such as the director's office, accounting, personnel, library expenses and all other types of expenditures not listed specifically under one of the subcategories of"Facilities" (including cross allocations from other pools,where applicable). See indirect cost rate reporting requirements in subparagraphs D.2.e and D.3.g. • D. Allocation of Indirect Costs and Determination of Indirect Cost Rates http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 st be sufficiently specific to ensure that: funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 overnment Grants, Contracts, and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 \_,111;U1a1 h-1LG, LAJJL 111111.1k.J1liJ 101 1V1J11-110111. V1b'a111La11V11J i • 1.•General. a.. Where a non-profit organization has only one major function, or where all its major functions benefit from its ' indirect costs to approximately the same degree,the allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures, as described in subparagraph 2. • • b. Where an organization has several major functions which benefit from its indirect costs in varying degrees, allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually to benefiting functions by means of a base which best measures the relative degree of benefit.The indirect costs allocated to each function are then distributed to individual awards and other activities included in that function by means of an indirect cost rate(s). c. The determination of what constitutes an organization's major functions will depend on its purpose in being; the types of services it renders to the public, its clients, and its members; and the amount of effort it devotes to such activities as fundraising, public information and membership activities. d. Specific methods for allocating indirect costs and computing indirect cost rates along with the conditions under which each method should be used are described in subparagraphs 2 through 5. e. The base period for the allocation of indirect costs is the period in which such costs are incurred and. accumulated for allocation to work performed in that period.The base period normally should coincide with the organization's fiscal year but, in any event, shall be so selected as to avoid inequities in the allocation of the costs. • .2. Simplified allocation method. • a. Where an organization's major functions benefit from its indirect costs to approximately the same degree, the allocation of indirect costs may be accomplished by (i) separating the organization's total costs for the base period as either direct or indirect, and (ii) dividing the total allowable indirect costs (net of applicable credits) •by an equitable distribution base. The result of this process is an indirect cost rate which is used to distribute indirect costs to individual awards. The rate should be expressed as the percentage which the total amount of allowable indirect costs bears to the base selected. This method should also be used where an organization has only one major function encompassing a number of individual projects or activities, and may be used where the level of Federal awards to an organization is relatively small. b. Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable costs. However, unallowable costs which represent activities must be included in the direct costs under the• conditions described in subparagraph B.3. c. The distribution base may be total direct costs (excluding capital expenditures and other distorting items, such as major subcontracts or subgrants), direct salaries and wages, or other base which results in an equitable distribution. The distribution base shall generally exclude participant support costs as defined in paragraph 32 of Attachment B. d. Except where a special rate(s) is required in accordance with subparagraph 5,the indirect cost rate developed under the above principles is applicable to all awards at the organization. If a special rate(s) is required, appropriate modifications shall be made in order to develop the special rate(s). e. For an organization that receives more than$10 million in Federal funding of direct costs in a fiscal year, a breakout of the indirect cost component into two broad categories, Facilities and Administration as defined in subparagraph C.3, is required.The rate in each case shall be stated as the percentage which the amount of the particular indirect cost category(i.e., Facilities or Administration) is of the distribution base identified with that category. 3. Multiple allocation base method • a. General. Where an organization's indirect costs benefit its major functions in varying degrees, indirect costs shall be accumulated into separate cost groupings, as described in subparagraph b. Each grouping shall then be allocated individually to benefitting functions by means of a base which best measures the relative benefits.The default allocation bases by cost pool are described in subparagraph c. b. Identification of indirect costs. Cost groupings shall be established so as to permit the allocation of each grouping on the basis of benefits provided to the major functions. Each grouping shall constitute a pool of expenses that are of like character in terms of functions they benefit and in terms of the allocation base which http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 and http://www.whitehouse.gov/omb/rewrite/circulars/al 10/al 10.html 8/31/2009 r1i11eip1GJ tut 1vu11-riollt Vrganizauons rage / or J4 best measures the relative benefits provided to each function.The groupings are classified within the two broad categories: "Facilities" and "Administration," as described in subparagraph C.3.The indirect cost pools are defined as follows: (1) Depreciation and use allowances.The expenses under this heading are the portion of the costs of the organization's buildings, capital improvements to land and buildings, and equipment which are computed in accordance with paragraph 11 of Attachment B("Depreciation and use allowances"). • (2) Interest. Interest on debt associated with certain buildings,equipment and capital improvements are computed in accordance with paragraph 23 of Attachment B ("Interest"). (3) Operation and maintenance expenses. The expenses under this heading are those that have been incurred for the administration, operation, maintenance, preservation, and protection of the organization's physical plant. They include expenses normally incurred for such items as:janitorial and utility services; repairs and ordinary or normal alterations of buildings,furniture and equipment; care of grounds; • maintenance and operation of buildings and other plant facilities; security; earthquake and disaster preparedness; environmental safety; hazardous waste disposal; property, liability and other insurance relating to property; space and capital leasing; facility planning and management; and, central receiving. The operation and maintenance expenses category shall also include its allocable share of fringe benefit costs, depreciation and use allowances, and interest costs. • (4) General administration and general expenses. The expenses under this heading are those that have been incurred for the overall general executive and administrative offices of the organization and other expenses of . a general nature which do not relate solely to any major function of the organization. This category shall also include its allocable share of fringe benefit costs, operation and maintenance expense, depreciation and use • allowances, and interest costs. Examples of this category include central offices, such as the director's office, the office of finance, business services, budget and planning, personnel, safety and risk management, general counsel, management information systems, and library costs. • In developing this cost pool, special care should be exercised to ensure that costs incurred for the same purpose in like circumstances are treated consistently as either direct or indirect costs. For example, salaries of technical staff, project supplies, project publication, telephone toll charges, computer costs, travel costs, and specialized services costs shall be treated as direct costs wherever identifiable to a particular program. The salaries and wages of administrative and pooled clerical staff should normally be treated as indirect costs. Direct charging of these costs may be appropriate where a major project or activity explicitly requires and budgets for administrative or clerical services and other individuals involved can be identified with the • program or activity. Items such as office supplies, postage, local telephone costs, periodicals and memberships should normally be treated as indirect costs. c.' Allocation bases.Actual conditions shall be taken into account in selecting the base to be used in allocating the expenses in each grouping to benefitting functions. The essential consideration in selecting a method or a base is that it is the one best suited for assigning the pool of costs to cost objectives in accordance with benefits derived; a traceable cause and effect relationship; or logic and reason,where neither the cause nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited, the allocation shall be made in that manner. When the expenses in a cost grouping are more general in nature, the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization. The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs, or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies (such as an engineering utility study) shall not be used to determine and allocate the indirect costs to sponsored awards. (1) Depreciation and use allowances. Depreciation and use allowances expenses shall be allocated in the following manner: (a) Depreciation or use allowances on buildings used exclusively in the conduct of a single function, and on capital improvements and equipment used in such buildings, shall be assigned to that function. (b) Depreciation or use allowances on buildings used for more than one function, and on capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 allocated to the benefitting functions on the basis of: (i)the employees and other users on a full-time equivalent (FTE) basis or salaries and wages of those individual functions benefitting from the use of that space; or (ii) organization-wide employee FTEs or salaries and wages applicable to the benefitting functions of the organization. (d) Depreciation or use allowances on certain capital improvements to land, such as paved parking areas, fences, sidewalks, and the like, not included in the cost of buildings, shall be allocated to user . categories on a FTE basis and distributed to major functions in proportion to the salaries and wages of all employees applicable to the functions. (2) Interest. Interest costs shall be allocated in the same manner as the depreciation or use allowances on the buildings, equipment and capital equipments to which the interest relates. (3) Operation and maintenance expenses. Operation and maintenance expenses shall be allocated in the same manner as the depreciation and use allowances. • (4) General administration and general expenses. General administration and general expenses shall be allocated to benefitting functions based on modified total direct costs (MTDC), as described in subparagraph D.3.f. The expenses included in this category could be grouped first according to major functions of the organization to which they render services or provide benefits. The aggregate expenses of each group shall then be allocated to benefitting functions based on MTDC. d. Order of distribution. (1) Indirect cost categories consisting of depreciation and use allowances, interest, operation and • maintenance, and general administration and general expenses shall be allocated in that order to the remaining indirect cost categories as well as to the major functions of the organization. Other cost categories could be allocated in the order determined to be most appropriate by the organization. When cross allocation of costs is made as provided in subparagraph (2), this order of allocation does not apply. (2) Normally, an indirect cost category will be considered closed once it has been allocated to other cost objectives, and costs shall not be subsequently allocated to it. However, a cross allocation of costs between two or more indirect costs categories could be used if such allocation will result in a more equitable allocation of costs. If a cross allocation is used, an appropriate modification to the composition of the indirect cost categories is required. e. Application of indirect cost rate or rates. Except where a special indirect cost rate(s) is required in accordance with subparagraph D.5, the separate groupings of indirect costs allocated to each major function shall be . aggregated and treated as a common pool for that function.The costs in the common pool shall then be distributed to individual awards included in that function by use of a single indirect cost rate. f. Distribution basis. Indirect costs shall be distributed to applicable sponsored awards and other benefitting activities within each major function on the basis of MTDC. MTDC consists of all salaries and wages,fringe benefits, materials and supplies, services,travel, and subgrants and subcontracts up to the first$25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Equipment, capital expenditures, charges for patient care, rental costs and the portion in excess of$25,000 shall be excluded from MTDC. Participant support costs shall generally be excluded from MTDC. Other items may only be excluded when the Federal cost cognizant agency determines that an exclusion is necessary.to avoid a serious inequity in the distribution of indirect costs. g. Individual Rate Components. An indirect cost rate shall be determined for each separate indirect cost pool developed. The rate in each case shall be stated as the percentage which the amount of the particular indirect cost pool is of the distribution base identified with that pool. Each indirect cost rate negotiation or determination agreement shall include development of the rate for each indirect cost pool as well as the overall indirect cost rate. The indirect cost pools shall be classified within two broad categories: "Facilities" and"Administration," as described in subparagraph C.3. • 4. Direct allocation method. • • a. Some non-profit organizations treat all costs as direct costs except general administration and general expenses.These organizations generally separate their costs into three basic categories: (i)General administration and general expenses, (ii)fundraising., and (iii)other direct functions (including projects performed under Federal awards). Joint costs, such as depreciation, rental costs, operation and maintenance of f,nilifioc 4elanhnna avnancac anti+ha lu.n ore nrnrofari oc tiirerf rncfe fn.ark rot annr„ anti fn http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • Lircuiar ti-izz, �osi rrincipies ior 'von-rruiit vrgaluzauuns rage 7 01 ..)w 1 • • each award or other activity using a base most appropriate to the particular cost being prorated. b. This method is acceptable, provided each joint cost is prorated using a base which accurately measures the benefits provided to each award or other activity. The bases must be established in accordance with reasonable criteria, and be supported by current data.This method is compatible with the Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations issued jointly by the National Health Council, Inc.,the National Assembly of Voluntary Health and Social Welfare Organizations, and the United Way of America. c. Under this method, indirect costs consist exclusively of general administration and general expenses. In all • other respects,the organization's indirect cost rates shall be computed in the same manner as that described in subparagraph 2. 5. Special indirect cost rates. In some instances, a single indirect cost rate for all activities of an organization or for each major function of the organization may not be appropriate, since it would not take into account those different factors which may substantially affect the indirect costs applicable to a particular segment of work. For this purpose, a particular segment of work may be that performed under a single award or it may consist of work under a group of awards performed in a common environment.These factors may include the physical location of the work, the level of administrative support required,the nature of the facilities or other resources employed,the scientific disciplines or technical skills involved,the organizational arrangements used, or any combination thereof. When a particular segment of work is performed in an environment which appears to generate a significantly different level of indirect costs, provisions should be made for a separate indirect cost pool applicable to such work. The separate indirect cost pool should be developed during the course of the regular allocation process, and the separate indirect cost rate . resulting therefrom should be used, provided it is determined that (i)the rate differs significantly from that which • would have been obtained under subparagraphs 2, 3, and 4, and (ii)the volume of work to which the rate would apply is material. E. Negotiation and Approval of Indirect Cost Rates • • 1. Definitions. As used in this section,the following terms have the meanings set forth below: a. Cognizant agency means the Federal agency responsible for negotiating and approving indirect cost rates for a non-profit organization on behalf of all Federal agencies. • b. Predetermined rate means an indirect cost rate, applicable to a specified current or future period, usually the organization's fiscal year. The rate is based on an estimate of the costs to be incurred during the period. A predetermined rate is not subject to adjustment. c. Fixed rate means an indirect cost rate which has the same characteristics as a predetermined rate, except that the difference between the estimated costs and the actual costs of the period covered by the rate is carried forward as an adjustment to the rate computation of a subsequent period. d. Final rate means an indirect cost rate applicable to a specified past period which is based on the actual costs of the period.A final rate is not subject to adjustment. e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function, organizational subdivision, contract, grant, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, projects, jobs and capitalized projects. • 2. Negotiation and approval of rates. • a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 negotiation process but, after a rate has been agreed upon, it will be accepted by all Federal agencies. When a Federal agency has reason to believe that special operating factors affecting its awards necessitate special indirect cost rates in accordance with subparagraph D.5, it will, prior to the time the rates are negotiated, notify the cognizant agency. b. A non-profit organization which•has not previously established an indirect cost rate with a Federal agency shall submit its initial indirect cost proposal immediately after the organization is advised that an award will be made and, in no event, later than three months after the effective date of the award. c. Organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency within six months after the close of each fiscal year. . d. A predetermined rate may be negotiated for use on awards where there is reasonable assurance, based on past experience and reliable projection of the organization's costs, that the rate is not likely to exceed a rate based on the organization's actual costs. • e. Fixed rates may be negotiated where predetermined rates are not considered appropriate. A fixed rate, however, shall not be negotiated if(i) all or a substantial portion of the organization's awards are expected to expire before the carry-forward adjustment can be made; (ii)the mix of Federal and non-Federal work at the organization is too erratic to permit an equitable carry-forward adjustment; or(iii)the organization's operations fluctuate significantly from year to year. f. Provisional and final rates shall be negotiated where neither predetermined nor fixed rates are appropriate. g. The results of each negotiation shall be formalized in a written agreement between the cognizant agency and • the non-profit organization.The cognizant agency shall distribute copies of the agreement to all concerned • Federal agencies. h. If a dispute arises in a negotiation of an indirect cost rate between the cognizant agency and the non-profit organization, the dispute shall be resolved in accordance.with the appeals procedures of the cognizant agency. i. To the extent that problems are encountered among the Federal agencies in connection with the negotiation and approval process, OMB will lend assistance as required to resolve such problems in a timely manner. ATTACHMENT B Circular No.A-122 SELECTED ITEMS OF COST • Table of Contents _._. . . 1. Advertising and.public relations costs 2. Advisory councils 3. Alcoholic beverages 4. Audit costs and related services • 5. Bad debts 6. Bonding costs 7. Communication costs 8. Compensation for personal services 9. Contingency provisions 10. Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringement 11. Depreciation and use allowances 12. Donations and contributions 13. Employee morale, health, and welfare costs . 14. Entertainment costs 15. Equipment and other capital expenditures 16. Fines and penalties 17. Fund raising and investment management costs • 18. Gains and losses on depreciable assets 19. Goods or services for personal use 20. Housing and personal living expenses 21. Idle facilities and idle capacity • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function, organizational subdivision, contract, grant, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, projects, jobs and capitalized projects. • 2. Negotiation and approval of rates. • a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 utrcuiar A-1LL, Uost trnnciples tor Non-Yrotit Organizations Page 11 of 34 • 22. Insurance and indemnification 23. Interest 24. Labor relations costs 25. Lobbying 26. Losses on other sponsored agreements or contracts 27. Maintenance and repair costs 28. Materials and supplies costs 29. Meetings and conferences 30. Memberships,subscriptions, and professional activity costs • 31. Organization costs • 32. Page charges in professional journals 1 33. Participant support costs 34. Patent costs 35. Plant and homeland security costs 36. Pre-agreement costs 37. Professional services costs • 38. Publication and printing costs 39. Rearrangement and alteration costs • 40. Reconversion costs • 41. Recruiting costs 42. Relocation costs 43. Rental costs of buildings and equipment • 44. Royalties and other costs for use of patents and copyrights 45. Selling and marketing 46. Specialized service facilities • 47. Taxes 48. Termination costs applicable to sponsored agreements • 49. Training costs . . 50. Transportation costs 51. Travel costs 52. Trustees ATTACHMENT B Circular No. A-122 • SELECTED ITEMS OF COST • Paragraphs 1 through 53 provide principles to be applied in establishing the allowability of certain items of cost. These principles apply whether a cost is treated as direct or indirect. Failure to mention a particular item of cost is not intended to imply that it is unallowable; rather, determination as to allowability in each case should be based on the treatment or principles provided for similar or related items of cost. 1. Advertising and public relations costs. • a: -The term advertising costs means the costs of advertising media and corollary administrative costs. Advertising media include magazines, newspapers, radio and television,direct mail, exhibits, electronic or • • computer transmittals, and the like. • b. The term public relations includes community relations and means those activities dedicated to maintaining the image of the non-profit organization or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public. c. The only allowable advertising costs are those which are solely for: (1) The recruitment of personnel required for the performance.by the non-profit organization of obligations arising under a Federal award (See also Attachment B, paragraph 41, Recruiting costs, and paragraph 42, Relocation costs); (2).The procurement of goods and services for the performance of a Federal award; (3) The disposal of scrap or surplus materials acquired in the performance of a Federal award except when non-profit organizations are reimbursed for disposal costs at a predetermined amount; or (4) Other specific purposes necessary to meet the requirements of the Federal award. • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 alties 17. Fund raising and investment management costs • 18. Gains and losses on depreciable assets 19. Goods or services for personal use 20. Housing and personal living expenses 21. Idle facilities and idle capacity • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function, organizational subdivision, contract, grant, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, projects, jobs and capitalized projects. • 2. Negotiation and approval of rates. • a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 L 11l Uldl J- -1LL, L US1 r1111eipics l0l 1VU11-r1U11L V1gai11GauU11s rage 1L Ul J'-F d. The only allowable public relations costs are: • (1) Costs specifically required by the Federal award; • (2) Costs of communicating with the public and press pertaining to specific activities or accomplishments which result from performance of Federal awards (these costs are considered necessary as part of the outreach effort for the Federal award); or (3) Costs of conducting general liaison with news media and government public relations officers,to the extent that such activities are limited to communication and liaison necessary keep the public informed on • matters of public concern, such as notices of Federal contract/grant awards,financial matters, etc. e. Costs identified in subparagraphs c and d if incurred for more than one Federal award or for both sponsored work and other work of the non-profit organization, are allowable to the extent that the principles in Attachment A, paragraphs B. ("Direct Costs") and C. ("Indirect Costs") are observed. f. Unallowable advertising and public relations costs include the following: (1)All advertising and public relations costs other than as specified in subparagraphs c, d, and e; (2)Costs of meetings, conventions, convocations, or other events related to other activities of the non-profit organization, including: (a) Costs of displays, demonstrations, and exhibits; (b) Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events; and • (c) Salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings; • (3) Costs of promotional items and memorabilia, including models, gifts, and souvenirs; (4) Costs of advertising and public relations designed solely.to promote the non-profit organization. 2.Advisory Councils Costs incurred by advisory councils or committees are allowable.as a direct cost where authorized by the Federal awarding agency or as an indirect cost where allocable to Federal awards. • 3.Alcoholic beverages. Costs of alcoholic beverages are unallowable. • 4.Audit costs and related services a. The costs of audits required by, and performed in accordance with,the Single Audit Act, as implemented by Circular A-133,"Audits of States, Local Governments,and Non-Profit Organizations"are allowable.Also see 31 USC 7505(b) and section 230("Audit Costs") of Circular A-133. b. Other audit costs are allowable if included in an indirect cost rate proposal, or if specifically approved.by the awarding agency as a direct cost to an award. • c. The cost of agreed-upon procedures engagements to monitor subrecipients who are exempted from A-133 under section 200(d) are allowable, subject to the conditions listed in A-133, section 230 (b)(2). 5. Bad debts. Bad debts, including losses (whether actual or estimated)arising from uncollectable accounts and other claims,related collection costs, and related legal costs, are unallowable. 6. Bonding costs. a. Bonding costs arise when the Federal Government requires assurance against financial loss to itself or others by reason of the act or default of the non-profit organization.They arise also in instances where the non-profit organization requires similar assurance. Included are such bonds as bid, performance, payment, advance payment, infringement, and fidelity bonds. • b. Costs of bonding required pursuant to the terms of the award are allowable. http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 ent of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function, organizational subdivision, contract, grant, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, projects, jobs and capitalized projects. • 2. Negotiation and approval of rates. • a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 l.114LL141 1-1'1 LLB L'UJL I1111L,WIL•J 1V1 1V011-11V111 L./1 CL111LC1LJV11J I A.6G 1J Vl• J`P C. Costs of bonding required by the non-profit organization in the general conduct of its operations are allowable to the extent that such bonding is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances. • 7. Communication costs. Costs incurred for telephone services, local and long distance telephone calls, telegrams, postage, messenger, electronic or computer transmittal services and the like are allowable. 8. Compensation for personal services. a. Definition. Compensation for personal services includes all compensation paid currently or accrued by the organization for services of employees rendered during the period of the award (except as otherwise provided in subparagraph h). It includes, but is not limited to, salaries, wages, director's and executive committee member's fees, incentive awards,fringe benefits, pension plan costs,allowances for off-site pay, incentive pay, location allowances, hardship pay, and cost of living differentials. b. Allowability. Except as otherwise specifically provided in this paragraph,the costs of such compensation are allowable to the extent that: (1)Total compensation to individual employees is reasonable for the services rendered and conforms to the established policy of the organization consistently applied to both Federal and non-Federal activities; and (2)Charges to awards whether treated as direct or indirect costs are determined and supported as required in this paragraph. c. Reasonableness. (1)When the organization is predominantly engaged in activities other than those sponsored by the Federal Government, compensation for employees on federally sponsored work will be considered reasonable to the extent that it is consistent with that paid for similar work in the organization's other activities. (2)When the organization is predominantly engaged in federally sponsored activities and in cases where the kind of employees required for the Federal activities are not found in the organization's other activities, compensation for employees on federally sponsored work will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor markets in which the organization competes for the kind of employees involved. d. Special considerations in determining allowability. Certain conditions require special consideration and possible limitations in determining costs under Federal awards where amounts_or types of compensation appear unreasonable. Among such conditions are the following: (1) Compensation to members of non-profit organizations, trustees, directors, associates, officers, or the immediate families thereof. Determination should be made that such compensation is reasonable for the actual personal services rendered rather than a distribution of earnings in excess of costs. —(2)Any change in an organization's compensation policy resulting in a substantial increase in the organization's level of compensation, particularly when it was concurrent with an increase in the ratio of • Federal awards to other activities of the organization or any change in the treatment of allowability of specific . types of compensation due to changes in Federal policy. e. Unallowable costs. Costs which are unallowable under other paragraphs of this Attachment shall not be • allowable under this paragraph solely on the basis that they constitute personal compensation. f. Overtime, extra-pay shift, and multi-shift premiums. Premiums for overtime, extra-pay shifts, and multi-shift work are allowable only with the prior approval of the awarding agency except: (1)When necessary to cope with emergencies, such as those resulting from accidents, natural disasters, breakdowns of equipment, or occasional operational bottlenecks of a sporadic nature. (2)When employees are performing indirect functions, such as administration, maintenance, or accounting. • (3) In the performance of tests, laboratory procedures,•or other similar operations which are continuous in nature and cannot reasonably be interrupted or otherwise completed. (4)When lower overall cost to the Federal Government will result. • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 g. Fringe benefits. (1) Fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as vacation leave, sick leave, military leave, and the like, are allowable, provided such costs are absorbed by all organization activities in proportion to the relative amount of time or effort actually devoted to each. (2) Fringe benefits in the form of employer contributions or expenses for social security, employee insurance, workmen's compensation insurance, pension plan costs(see subparagraph h), and the like, are allowable, provided such benefits are granted in accordance with established written organization policies. Such benefits whether treated as indirect costs or as direct costs, shall be distributed to particular awards and other activities in a manner consistent with the pattern of benefits accruing to the individuals or group of employees whose salaries and wages are chargeable to such awards and other activities. (3) (a) Provisions for a reserve under a self-insurance program for unemployment compensation or workers' compensation are allowable to the extent that the provisions represent reasonable estimates of the liabilities for such compensation, and the types of coverage, extent of coverage, and rates and'premiums would have been allowable had insurance been purchased to cover the risks. However, provisions for self-insured liabilities which do not become payable for more than one year after the provision is made shall not exceed the present value of the liability. (b) Where an organization follows a consistent policy of expensing actual payments to,or on behalf of, employees or former employees for unemployment compensation or workers' compensation, such payments are allowable in the year of payment with the prior approval of the awarding agency, provided they are allocated to all activities of the organization. (4) Costs of insurance on the lives of trustees, officers, or other employees holding positions of similar responsibility are allowable only to the extent that the insurance represents additional compensation. The costs of such insurance when the organization is named as beneficiary are unallowable. h. Organization-furnished automobiles. That portion of the cost of organization-furnished automobiles that relates to personal use by employees(including transportation to and from work) is unallowable as fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the employees. These costs are allowable as direct costs to sponsored award when necessary for the performance of the sponsored award and approved by awarding agencies. i. Pension plan costs. (1) Costs of the organization's pension plan which are incurred in accordance with the established policies of the organization are allowable, provided: (a) Such policies meet the test of reasonableness; (b)The methods of cost allocation are not discriminatory; (c)The cost assigned to each fiscal year is determined in accordance with generally accepted accounting principles(GAAP), as prescribed in Accounting Principles Board Opinion No. 8 issued by the American Institute of Certified Public Accountants; and (d)The costs assigned to a given fiscal year are funded for all plan participants within six months after the end of that year. However, increases to normal and past service pension costs caused by a delay in funding the actuarial liability beyond 30 days after each quarter of the year to which such costs are assignable are unallowable. (2) Pension plan termination insurance premiums paid pursuant to the Employee Retirement Income Security Act(ERISA) of 1974 (Pub. L. 93-406) are allowable. Late payment charges on such premiums are unallowable. (3) Excise taxes on accumulated funding deficiencies and other penalties imposed under ERISA are unallowable. j. Incentive compensation. Incentive compensation to employees based on cost reduction,or efficient performance, suggestion awards, safety awards, etc.,are allowable to the extent that the overall compensation is determined to be reasonable and such costs are paid or accrued pursuant to an agreement entered into in good faith between the organization and the employees before the services were rendered,or pursuant to an established plan followed by the organization so consistently as to imply, in effect, an . agreement to make such payment. http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Circular A-122, Lost Principles for Non-Profit Organizations Page 15 of 34 k. Severance pay. (1) Severance pay, also commonly referred to as dismissal wages, is a payment in addition to regular salaries and wages, by organizations to workers whose employment is being terminated. Costs of severance pay are allowable only to the extent that in each case, it is required by • (a) law, (b)employer-employee agreement, (c) established policy that constitutes, in effect, an implied agreement on the organization's part, or (d) circumstances of the particular employment. (2) Costs of severance payments are divided into two categories as follows: (a)Actual normal turnover severance payments shall be allocated to all activities; or, where the organization provides for a reserve for normal severances, such method will be acceptable if the charge to current operations is reasonable in light of payments actually made for normal severances over a representative past period, and if amounts charged are allocated to all activities of the • organization. (b)Abnormal or mass severance pay is of such a conjectural nature that measurement of costs by • means of an accrual will not achieve equity to both parties. Thus, accruals for this purpose are not • allowable, However, the Federal Government recognizes its obligation to participate, to the extent of its fair share, in any specific payment. Thus, allowability will be considered on a case-by-case basis in the event or occurrence. (c) Costs incurred in certain severance pay packages (commonly known as"a golden parachute" payment)which are in an amount in excess of the normal severance pay paid by the organization to an employee upon termination of employment and are paid to the employee contingent upon a change in management control over, or ownership of, the organization's assets are unallowable. (d) Severance payments to foreign nationals employed by the organization outside the United States, to the extent that the amount exceeds the customary or prevailing practices for the organization in the United States are unallowable, unless they are necessary for the performance of Federal programs and approved by awarding agencies. (e) Severance payments to foreign nationals employed by the organization outside the United States due to'the termination of the foreign national as a result of the closing of, or curtailment of activities by, the organization in that country, are unallowable, unless they are necessary for the performance of Federal programs and approved by awarding agencies. I. Training costs. See paragraph 49. • m. Support of salaries and wages. (1) Charges to awards for salaries and wages, whether treated as direct costs or indirect costs,will be based on documented payrolls approved by a responsible official(s) of the organization.The distribution of salaries and wages to awards must be supported by personnel activity reports, as prescribed in subparagraph (2), except when a substitute system has been approved in writing by the cognizant agency. (See subparagraph E.2 of Attachment A.) (2) Reports reflecting the distribution of activity of each employee must be maintained for all staff members (professionals and nonprofessionals)whose compensation is char p ) p charged, inwhole or in part, directly to awards. In addition, in order to support the allocation of indirect costs, such reports must al so p u i a so be maintained for other employees whose work involves two or more functions or activities if a distribution of their compensation between such functions or activities is needed in the determination of the organization's indirect cost rate(s) (e.g., an employee engaged part-time in indirect cost activities and part-time in a direct function). Reports maintained by non-profit organizations to satisfy these requirements must meet the following standards: (a)The reports must reflect an after-the-fact determination of the actual activity of each employee. Budget estimates(i.e., estimates determined before the services are performed)do not qualify as support for charges to awards. (b) Each report must account for the total activity for which employees are compensated and which is required in fulfillment of their obligations to the organization. http://wwvv.whitehouse.gov/omb/rewrite/circulars/a122/a 1 22_2004.html 8/31/2009 te/circulars/a122/a122 2004.html 8/31/2009 of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 l it wa H-1GG, l osi riiiieipies loi INou i 1Vlll V1gi1111Gau111t r arc (c)The reports must be signed by the individual employee,or by a responsible supervisory official having first hand knowledge of the activities performed by the employee,that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the • periods covered by the reports. (d)The reports must be prepared at least monthly and must coincide with one or more pay periods. (3)Charges for the salaries and wages of nonprofessional employees, in addition to the supporting documentation described in subparagraphs (1) and(2), must also be supported by records indicating the total number of hours worked each day maintained in conformance with Department of Labor regulations implementing the Fair Labor Standards Act (FLSA) (29 CFR Part 516). For this purpose,the term • "nonprofessional employee" shall have the same meaning as"nonexempt employee," under FLSA. (4) Salaries and wages of employees used in meeting cost sharing or matching requirements on awards must be supported in the same manner as salaries and wages claimed for reimbursement from awarding agencies. 9. Contingency provisions. Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time, intensity, or with an assurance of their happening, are unallowable. • The term"contingency reserve"excludes self-insurance reserves (see Attachment B, paragraphs 8.g. (3) and 22.a(2) (d)); pension funds (see paragraph 8.i): and reserves for normal severance pay(see paragraph 8.k.) 10. Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringement. a. Definitions. • (1)Conviction, as used herein, means a judgment or a conviction of a criminal offense by any court of competent jurisdiction,whether entered upon as a verdict or a plea, including a conviction due to a plea of nolo contendere. (2)Costs include, but are not limited to, administrative and clerical expenses; the cost of legal services, whether performed by in-house or private counsel; and the costs of the services of accountants, consultants, or others retained by the organization to assist it; costs of employees, officers and trustees,and any similar costs incurred before, during, and after commencement of a judicial or administrative proceeding that bears a direct relationship to the proceedings. (3) Fraud, as used herein, means (i)acts of fraud corruption or attempts to defraud the Federal Government or to corrupt its agents, (ii) acts that constitute a cause for debarment or suspension (as specified in agency regulations), and (iii)acts which violate the False Claims Act, 31 U.S.C., sections 3729-3731, or the Anti- Kickback Act,41 U.S.C., sections 51 and 54. (4) Penalty does not include restitution, reimbursement, or compensatory damages. (5)Proceeding includes an investigation. b. (1)Except as otherwise described herein, costs incurred in connection with any criminal, civil or • administrative proceeding (including filing of a false certification)commenced by the Federal Government, or a State, local or foreign government, are not allowable if the proceeding: (1) relates to a violation of, or failure to comply with, a Federal, State, local or foreign statute or regulation by the organization (including its agents and employees), and (2) results in any of the following dispositions: (a) In a criminal proceeding, a conviction. (b) In a civil or administrative proceeding involving an allegation of fraud or similar misconduct, a determination of organizational liability. (c) In the case of any civil or administrative proceeding, the imposition of a monetary penalty. (d)A final decision by an appropriate Federal official to debar or suspend the organization, to rescind • or void an award, or to terminate an award for default by reason of a violation or failure to comply with a law or regulation. (e) A disposition by consent or compromise, if the action could have resulted in any of the dispositions described in (al. !bl. (c) or(cll. • http://www.whitehouse.gov/omb/rewrite/circulars/a 122/a 1 22_2004.html 8/31/2009 or which employees are compensated and which is required in fulfillment of their obligations to the organization. http://wwvv.whitehouse.gov/omb/rewrite/circulars/a122/a 1 22_2004.html 8/31/2009 te/circulars/a122/a122 2004.html 8/31/2009 of the indirect cost rates and,where necessary, other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Circular A-122, Cost Principles for Non-Profit Organizations • Page 17 of 34 • (2) If more than one proceeding involves the same alleged misconduct, the costs of all such proceedings shall be.unallowable if any one of them results in one of the dispositions shown in subparagraph b.(1). c. If a proceeding referred to in subparagraph b is commenced by the Federal Government and is resolved by consent,or compromise pursuant to an agreement entered into by the organization and the Federal Government, then the costs incurred by the organization in connection with such proceedings that are otherwise not allowable under subparagraph b may be allowed to the extent specifically provided in such agreement. • d. If a proceeding referred to in subparagraph b is commenced by a State, local or foreign government,the authorized Federal official may allow the costs incurred by the organization for such proceedings, if such authorized official determines that the costs were incurred as a result of(1)a specific term or condition of a federally sponsored award, or(2) specific written direction of an authorized official of the sponsoring agency. e. Costs incurred in connection with proceedings described in subparagraph b, but which are not made unallowable by that subparagraph, may be allowed by the Federal Government, but only to the extent that: (1)The costs are reasonable in relation to the activities required to deal with the proceeding and the underlying cause of action; • (2) Payment of the costs incurred, as allowable and allocable costs, is not prohibited by any other provision (s)of the sponsored award; • (3)The costs are not otherwise recovered from the Federal Government or a third party, either directly as a result of the proceeding or otherwise; and, (4)The percentage of costs allowed does not exceed the percentage determined by an authorized Federal official to be appropriate, considering the complexity of the litigation, generally accepted principles governing the award of legal fees in civil actions involving the United States as a party, and such other factors as may be appropriate. Such percentage shall not exceed 80 percent. However, if an agreement reached under subparagraph c has explicitly considered this 80 percent limitation and permitted a higher percentage, then the full amount of costs resulting from that agreement shall be allowable. f. Costs incurred by the organization in connection with the defense of suits brought by its employees or ex- employees under section 2 of the Major Fraud Act of 1988 (Pub. L. 100-700), including the cost of all relief necessary to make such employee whole,where the organization was found liable or settled, are unallowable. g. Costs of legal, accounting, and consultant services, and related costs, incurred in connection with defense against Federal Government claims or appeals, antitrust suits, or the prosecution of claims or appeals • against the Federal Government, are unallowable. h. Costs of legal, accounting, and consultant services, and related costs, incurred in connection with patent • infringement litigation, are unallowable unless otherwise provided for in the sponsored awards. i. Costs which may be unallowable under this paragraph, including directly associated costs, shall be segregated and accounted for by the organization separately. During the pendency of any proceeding covered by subparagraphs b and f,the Federal Government shall generally withhold payment of such costs. However, if in the best interests of the Federal Government, the Federal Government may provide for conditional payment upon provision of adequate security,or other adequate assurance, and agreements by the organization to repay all unallowable costs, plus interest, if the costs are subsequently determined to be unallowable. • 11. Depreciation and use allowances. a. Compensation for the use of buildings, other capital'improvements, and equipment on hand may be made through use allowance or depreciation. However, except as provided in Attachment B, paragraph f, a combination of the two methods may not be used in connection with a single class of fixed assets (e.g., buildings, office equipment,computer equipment, etc.). b. The computation of use allowances or depreciation shall be based on the acquisition cost of the assets involved. The acquisition cost of an asset donated to the non-profit organization by a third party shall be its • fair market value at the time of the donation. c. The computation of use allowances or depreciation will exclude: • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 1 22 2004.html 8/31/2009 assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization. All concerned Federal agencies shall be given the opportunity to participate in the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 l.lreuial 11 1LL l osi r11iieipie 101 1Nu11-rlulll km.Be.u.z.cl 1u11J 1 10 W. --r (1)The cost of land; (2)Any portion of the cost of buildings and equipment borne by or donated by the Federal Government irrespective of where title was originally vested or where it presently resides; and (3)Any portion of the cost of buildings and equipment contributed by or for the non-profit organization in satisfaction of a statutory matching requirement. d. Where depreciation method is followed, the period of useful service (useful life)established in each case for usable capital assets must take into consideration such factors as type of construction, nature of the equipment used, technological developments in the particular program area, and the renewal and replacement policies followed for the individual items or classes of assets involved. The method of depreciation used to assign the cost of an asset(or group of assets)to accounting periods shall reflect the pattern of consumption of the asset during its useful life. In the absence of clear evidence indicating that the expected consumption of the asset will be significantly greater or lesser in the early portions of its useful life than in the later portions,the straight-line method shall be presumed to be the appropriate method. Depreciation methods once used shall not be changed unless approved in advance by the cognizant Federal agency. When the depreciation method is introduced for application to assets previously subject to a use • allowance,the combination of use allowances and depreciation applicable to such assets must not exceed the total acquisition cost of the assets. e. When the depreciation method is used for buildings, a building's shell may be segregated from each building component(e.g., plumbing system, heating, and air conditioning system, etc.) and each item depreciated • over its estimated useful life; or the entire building (i.e., the shell and all components) may be treated.as a single asset and depreciated over a single useful life. f. When the depreciation method is used for a particular class of assets, no depreciation may be allowed on any such assets that, under subparagraph d,would be viewed as fully depreciated. However, a reasonable use allowance may be negotiated for such assets if warranted after taking into consideration the amount of depreciation previously charged to the Federal Government,the estimated useful life remaining at time of negotiation, the effect of any increased maintenance charges or decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. • g. Where the use allowance method is followed,the use allowance for buildings and improvement (including land improvements, such as paved parking areas, fences, and sidewalks)will be computed at an annual rate not exceeding two percent of acquisition cost. The use allowance for equipment will be computed at an annual rate not exceeding six and two-thirds percent of acquisition cost. When the use allowance method is used for buildings,the entire building must be treated as a single asset;the building's components(e.g., plumbing system, heating and air conditioning, etc) cannot be segregated from the building's shell. The two percent limitation, however, need not be applied to equipment which is merely attached or fastened to the building but not permanently fixed to it and which is used as furnishings or decorations or for • specialized purposes (e.g., dentist chairs and dental treatment units, counters, laboratory benches bolted to the floor, dishwashers, modular furniture,carpeting, etc.). Such equipment will be considered as not being permanently fixed to the building if it can be removed without the need for costly or extensive alterations or repairs to the building or the equipment. Equipment that meets these criteria will be subject to the 6 2/3 percent equipment use allowance limitation. h. Charges for use allowances or depreciation must be supported by adequate property records and physical inventories must be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed, adequate • depreciation records.indicating the amount of depreciation taken each period must also be maintained. 12. Donations and contributions. • • a. Contributions or donations rendered. Contributions or donations, including cash, property, and services, made by the organization, regardless of the recipient, are unallowable. b. Donated services received: (1) Donated or volunteer services may be furnished to an organization by professional and technical • nnrcnnnol nnnc,,It ntc and nfhor slrillor1 and ,,nc4illorl lahnr The vale on of fhoco ccn,inec is nn4 rcimh,,rcahle http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 he http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 �ircuiar �v-i zz, i;ost rrinciptes ror loon-rront organizations rage 19 or 34 either as a direct or indirect cost. However, the value of donated.services may be used to meet cost sharing or matching requirements in accordance with the Common Rule. . (2)The value of donated services utilized in the performance of a direct cost activity shall,when material in .amount, be considered in the determination of the non-profit organization's indirect costs or rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs when the following exist: (a)The aggregate value of the services.is material; (b) The services are supported by a significant amount of the indirect costs incurred by the non-profit organization; and • (c)The direct cost activity is not pursued primarily for the benefit of the Federal Government. (3) In those instances where there is no basis for determining the fair market value of the services rendered, the recipient and the cognizant agency shall negotiate an appropriate allocation of indirect cost to the services. • (4)Where donated services directly benefit a project supported by an award,the indirect costs allocated to the services will be.considered as a part of the total costs of the project. Such indirect costs may be reimbursed under the award or used to meet cost sharing or matching requirements. (5)The value of the donated services may be used to meet cost sharing or matching requirements under conditions described in Sec._.23 of Circular A-110.Where donated services are-treated as indirect costs, indirect cost rates will separate the value of the donations so that reimbursement will not be made. c. Donated goods or space. (1) Donated goods; i.e., expendable personal property/supplies, and donated use of space may be furnished to a non-profit organization.The value of the goods and space is not reimbursable either as a direct or • indirect cost. (2)The value of the donations may be used to meet cost sharing or matching share requirements under the conditions described in Circular A-110.Where donations are treated as indirect costs, indirect cost rates will separate the value of the donations so that reimbursement will not be made. • • 13. Employee morale, health, and welfare costs. • a. The costs of employee information publications, health or first-aid clinics and/or infirmaries, recreational activities, employee counseling services, and any other expenses incurred in accordance with the non-profit organization's established practice or custom for the improvement of working conditions, employer-employee relations, employee morale, and employee performance are allowable. b. Such costs will be equitably apportioned to all activities of the non-profit organization. Income generated from any of these activities will be credited to the cost thereof unless such income has been irrevocably set over to — - employee welfare organizations: 14. Entertainment costs. Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals,transportation, and gratuities) are unallowable. 15. Equipment and other capital expenditures. • a. For purposes of this subparagraph,the following definitions apply: (1) "Capital Expenditures" means expenditures for the acquisition cost of capital assets (equipment, buildings, land), or expenditures to make improvements to capital assets that materially increase their value or useful life.Acquisition cost means the cost of the asset including the cost to put it in place:Acquisition cost for equipment,for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in transit insurance,freight, and installation may be included in,or excluded from the acquisition cost in accordance with the non-profit organization's regular accounting practices. (2) "Equipment"means an article of nonexpendable,tangible personal property having a useful life of more http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 ned. 12. Donations and contributions. • • a. Contributions or donations rendered. Contributions or donations, including cash, property, and services, made by the organization, regardless of the recipient, are unallowable. b. Donated services received: (1) Donated or volunteer services may be furnished to an organization by professional and technical • nnrcnnnol nnnc,,It ntc and nfhor slrillor1 and ,,nc4illorl lahnr The vale on of fhoco ccn,inec is nn4 rcimh,,rcahle http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 he http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level • established by the non-profit organization for financial statement purposes, or$5000. (3) "Special purpose equipment" means equipment which is used only for research, medical, scientific, or other technical activities. Examples of special purpose equipment include microscopes,x-ray machines, surgical instruments, and spectrometers. (4)"General purpose equipment" means equipment, which is not limited to research, medical, scientific or other technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. b. The following rules of allowability shall apply to equipment and other capital expenditures: • (1) Capital expenditures.for general purpose equipment, buildings, and land are unallowable as direct charges, except where approved in advance by the awarding agency. (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of$5000 or more have the prior approval of the awarding agency. (3) Capital expenditures for improvements to land, buildings, or equipment which materially increase their value or useful life are unallowable as a direct cost except with the prior approval of the awarding agency. (4) When approved as a direct charge pursuant to paragraph 15.b.(1), (2), and (3) above, capital expenditures will be charged in the period in which the expenditure is incurred, or as otherwise determined appropriate by and negotiated with the awarding agency. (5) Equipment and other capital expenditures are unallowable as indirect costs. However, see Attachment B, paragraph 11., Depreciation and use allowance,for rules on the allowability of use allowances or depreciation on buildings, capital improvements, and equipment. Also, see Attachment B, paragraph 43., Rental costs of buildings and equipment,for rules on the allowability of rental costs for land, buildings, and equipment. (6)The unamortized portion of any equipment written off as a result of a change in capitalization levels may be recovered by continuing to claim the otherwise allowable use allowances or depreciation on the . equipment, or by amortizing the amount to be written off over a period of years negotiated with the cognizant agency. 16..Fines and penalties. Costs of fines and penalties resulting from violations of, or failure of the organization to comply with Federal, State, and local laws and regulations are unallowable except when incurred as a result of compliance with specific provisions of an award or instructions in writing from the awarding agency. 17. Fund raising and investment management costs. • a. Costs of organized fund raising, including financial campaigns, endowment drives, solicitation of gifts and - bequests, and similar expenses,incurred solely to raise capital or obtain contributions are unallowable. b. Costs of investment counsel and staff and similar expenses incurred solely to enhance income from investments are unallowable. c. Fund raising and investment activities shall be allocated an appropriate share of indirect costs under the conditions described in subparagraph B.3 of Attachment A. • 18. Gains and losses on depreciable assets. • • • • a. (1) Gains and losses on sale, retirement, or other disposition of depreciable property shall be included in the year in which they occur as credits or charges to cost grouping(s) in which the depreciation applicable to such property was included. The amount of the gain or loss to be included as a credit or charge to the appropriate cost grouping(s) shall be the difference between the amount realized on the property and the undepreciated basis of the property. (2) Gains and losses on the disposition of depreciable property shall not be recognized as a separate credit or charge under the following conditions: (a)The gain or loss is processed through a depreciation account and is reflected in the depreciation http://www.whitehouse.gov/omb/rewrite/circulars/a122/al22 2004.html 8/31/2009 ww.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 ned. 12. Donations and contributions. • • a. Contributions or donations rendered. Contributions or donations, including cash, property, and services, made by the organization, regardless of the recipient, are unallowable. b. Donated services received: (1) Donated or volunteer services may be furnished to an organization by professional and technical • nnrcnnnol nnnc,,It ntc and nfhor slrillor1 and ,,nc4illorl lahnr The vale on of fhoco ccn,inec is nn4 rcimh,,rcahle http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 he http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Circular A-122, Cost Principles for Non-Profit Organizations Page 21 of 34 • allowable under paragraph 11. (b)The property is given in exchange as part of the purchase price of a similar item and the gain or loss is taken into account in determining the depreciation cost basis of the new item. • (c)A loss results from the failure to maintain permissible insurance, except as otherwise provided in Attachment B, paragraph 22. (d)Compensation for the use of the property was provided through use allowances in lieu of depreciation in accordance with paragraph 9. . (e)Gains and losses arising from mass or extraordinary sales, retirements, or other dispositions shall • be considered on a case-by-case basis. b. Gains Or losses of any nature arising from the sale or exchange of property other than the property covered in subparagraph a shall be excluded in computing award costs. 19. Goods or services for personal use. Costs of goods or services for personal use of the organization's employees are unallowable regardless of whether the cost is reported as taxable income to the employees. • 20. Housing and personal living expenses. a. Costs of housing (e.g., depreciation, maintenance, utilities,furnishings, rent, etc.), housing allowances and personal living expenses for/of the organization's officers are unallowable as fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the employees.These costs are allowable as direct costs to sponsored award when necessary for the performance of the sponsored award and approved by awarding agencies. b. The term "officers"includes current and past officers and employees. 21. Idle facilities and idle capacity. a. As used in this section the following terms have the meanings set forth below: (1)"Facilities" means land and buildings or any portion thereof,equipment individually or collectively, or any other tangible capital asset, wherever located, and whether owned or leased by the non-profit organization. (2)"Idle facilities"means completely unused facilities that are excess to the non-profit organization's current • needs. • • (3)"Idle capacity"means the unused capacity of partially used facilities. It is the difference between: (a) that which a facility could achieve under 100 percent operating time on a one-shift basis less operating interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other normal delays; and (b)the extent to which the facility was actually used to meet demands during the accounting period.A multi-shift basis should be used if it can be shown that this amount of usage would normally be expected for the type of facility involved. (4) "Cost of idle facilities or idle capacity" means costs such as maintenance, repair, housing, rent, and other related costs, e.g., insurance, interest, property taxes and depreciation or use allowances. b. . The costs of idle facilities are unallowable except to the extent that: (1)They are necessary to meet fluctuations in workload; or • • (2)Although not necessary to meet fluctuations in workload, they were necessary when acquired and are now idle because of changes in program requirements, efforts to achieve more economical operations, reorganization, termination, or other causes which could not have been reasonably foreseen. Under the exception stated in this subparagraph, costs of idle facilities are allowable for a reasonable period of time, ordinarily not to exceed one year, depending on the initiative taken to use, lease, or dispose of such facilities. c. The costs of idle capacity are normal costs of doing business and are a factor in the normal fluctuations of usage or indirect cost rates from period to period. Such costs are allowable, provided that the capacity is reasonably anticipated to be necessary or was originally reasonable and is not subject to reduction or elimination by use on other Federal awards, subletting, renting, or sale, in accordance with sound business, economic, or security practices.Widespread idle capacity throughout an entire facility or among a group of /rewrite/cir a122 22/al 2004.html • 8/31/2009 http://www.whitehouse gov/omb ular /c s / _ 122_2004.html 8/31/2009 ned. 12. Donations and contributions. • • a. Contributions or donations rendered. Contributions or donations, including cash, property, and services, made by the organization, regardless of the recipient, are unallowable. b. Donated services received: (1) Donated or volunteer services may be furnished to an organization by professional and technical • nnrcnnnol nnnc,,It ntc and nfhor slrillor1 and ,,nc4illorl lahnr The vale on of fhoco ccn,inec is nn4 rcimh,,rcahle http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 he http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 L.111.U1d1 L'1'1GG, L.VJ1111113-11J1G6 101 INV11-L10111 VLgt1.111Gd11u11J GG 1J1 3'1 assets having substantially the same function may be considered idle facilities. 22. Insurance and indemnification. a. Insurance includes insurance which the organization is required to carry, or which is approved, under the terms of the award and any other insurance which the organization maintains in connection with the general conduct of its operations. This paragraph does not apply to insurance which represents fringe benefits for employees (see subparagraphs 8.g and 8.i(2)). (1) Costs of insurance required or approved, and maintained, pursuant to the award are allowable. (2) Costs of other insurance maintained by the organization in connection with the general conduct of its operations are allowable subject to the following limitations: (a)Types and extent of coverage shall be in accordance with sound business practice and the rates and premiums shall be reasonable under the circumstances. (b) Costs allowed for business interruption or other similar insurance shall be limited to exclude ' co.verage of management fees. (c)Costs of insurance or of any provisions for a reserve covering the risk of loss or damage to Federal property are allowable only to the extent that the organization is liable for such loss or damage. (d) Provisions for a reserve under a self-insurance program are allowable to the extent that types of coverage, extent of coverage, rates, and premiums would have been allowed had insurance been purchased to cover the risks. However, provision for known or reasonably estimated self-insured liabilities,which do not become payable for more than one year after the provision is made, shall not exceed the present value of the liability. (e) Costs of insurance on the lives of trustees, officers, or other employees holding positions of similar responsibilities are allowable only to the extent that the insurance represents additional compensation (see subparagraph 8.g(4)). The cost of such insurance when the organization is identified as the beneficiary is unallowable. (f) Insurance against defects. Costs of insurance with respect to any costs incurred to correct defects in the organization's materials or workmanship are unallowable. (g) Medical liability (malpractice) insurance. Medical liability insurance is an allowable cost of Federal research programs only to the extent that the Federal research programs involve human subjects or • training of participants in research techniques. Medical liability insurance costs shall be treated as a direct cost and shall be assigned to individual projects based on the manner in which the insurer allocates the risk to the population covered by the insurance. (3)Actual losses which could have been covered by permissible insurance(through the purchase of • •- - -insurance or a self-insurance program)are unallowable unless expressly provided for in the award,except: (a) Costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound business practice are allowable. • (b) Minor losses not covered by insurance, such as spoilage, breakage, and disappearance of supplies,which occur in the ordinary course of operations, are allowable. b. Indemnification includes securing the organization against liabilities to third persons and any other loss or damage, not compensated by insurance or otherwise. The Federal Government is obligated to indemnify the organization only to the extent expressly provided in the award. 23. Interest. • a. Costs incurred for interest on borrowed capital,temporary use of endowment funds, or the use of the non- profit organization's own funds, however represented, are unallowable. However, interest on debt incurred after September 29, 1995 to acquire or replace capital assets (including renovations, alterations, equipment, land, and capital assets acquired through capital leases), acquired after September 29, 1995 and used in support of Federal awards is allowable, provided that: (11 For facilities acouisitions(excludino renovations and alterations)costing over$10 million where the http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 s / _ 122_2004.html 8/31/2009 ned. 12. Donations and contributions. • • a. Contributions or donations rendered. Contributions or donations, including cash, property, and services, made by the organization, regardless of the recipient, are unallowable. b. Donated services received: (1) Donated or volunteer services may be furnished to an organization by professional and technical • nnrcnnnol nnnc,,It ntc and nfhor slrillor1 and ,,nc4illorl lahnr The vale on of fhoco ccn,inec is nn4 rcimh,,rcahle http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 he http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 rs/a122/a 122_2004.html 8/31/2009 capital • improvements and equipment used in such buildings, shall be allocated to the individual functions performed in each building on the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Lircular A-122, Lost Principles Tor Non-Profit Organizations Page 23 of 34 • Federal Governments reimbursement is expected to equal or exceed 40 percent of an asset's cost, the non- • profit organization prepares, prior to the acquisition or replacement of the capital asset(s), a justification that • demonstrates the need for the facility in the conduct of federally sponsored activities. Upon request, the needs justification must be provided to the Federal agency with cost cognizance authority as a prerequisite to the continued allowability of interest on debt and depreciation related to the facility.The needs justification for the acquisition of a facility should include, at a minimum,the following: (a) A statement of purpose and justification for facility acquisition or replacement (b)A statement as to why current facilities are not adequate (c)A statement of planned future use of the facility • (d)A description of the financing agreement to be arranged for the facility (e)A summary of the building contract with estimated cost information and statement of source and • use of funds (f)A schedule of planned occupancy dates • (2) For facilities costing over$500,000,the non-profit organization prepares, prior to the acquisition or replacement of the facility, a lease/purchase analysis in accordance with the provisions of Sec. .30 through .37 of Circular A-110,which shows that a financed purchase or capital lease is less costly to the • organization than other leasing alternatives, on a net present value basis. Discount rates used should be equal to the non-profit organization's anticipated interest rates and should be no higher than the fair market rate available to the non-profit organization from an unrelated ("arm's length") third-party. The lease/purchase analysis shall include a comparison of the net present value of the projected total cost comparisons of both alternatives over the period the asset is expected to be used by the non-profit organization.The cost comparisons associated with purchasing the facility shall include the estimated purchase price, anticipated operating and maintenance costs (including property taxes, if applicable) not included in the debt financing, less any estimated asset salvage value at the end of the period defined above. The cost comparison for a capital lease shall include the estimated total lease payments, any estimated bargain purchase option, operating and maintenance costs, and taxes not included in the capital leasing arrangement, less any estimated credits due under the lease at the end of the period defined above. Projected operating lease costs shall be'based on the anticipated cost of leasing comparable facilities at fair market rates under rental agreements that would be renewed or reestablished over the period defined above, and any expected maintenance costs and allowable property taxes to be borne by the non-profit organization directly or as part of the lease arrangement. (3)The actual interest cost claimed is predicated upon interest rates that are no higher than the fair market rate available to the non-profit organization from an unrelated ("arm's length") third party. .(4) Investment earnings, including interest income, on bond or loan principal, pending payment of the • construction or acquisition costs, are used to offset allowable interest cost. Arbitrage earnings reportable to the Internal Revenue Service are not required to be offset against allowable interest costs. (5)Reimbursements are limited to the least costly alternative based on the total cost analysis required under subparagraph (b). For example, if an operating lease is determined to be less costly than purchasing through debt financing,then reimbursement is limited to the amount determined if leasing had been used. In all cases where a lease/purchase analysis is performed, Federal reimbursement shall be based upon the least expensive alternative. • (6) Non-profit organizations are also subject to the following conditions: (a) Interest on debt incurred to finance or refinance assets acquired before or reacquired after September 29, 1995, is not allowable. • (b) Interest attributable to fully depreciated assets is unallowable.. (c) For debt arrangements over$1 million, unless the non-profit organization makes an initial equity contribution to the asset purchase of 25 percent or more, non-profit organizations shall reduce claims for interest expense by an amount equal to imputed interest earnings on excess cash flow,which is to be calculated as follows.Annually, non-profit organizations shall prepare a cumulative (from the • inception of the project) report of monthly cash flows that includes inflows and outflows, regardless of the funding source. Inflows consist of depreciation expense, amortization of capitalized construction interest, and annual interest expense. For cash flow calculations, the annual inflow figures shall be divided by the number of months in the year(usually 12)that the budding is in service for monthly http://vvww.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 share attributable to the unallowable costs of land)and interest payments. Where cumulative inflows exceed cumulative outflows, interest shall be calculated on the excess inflows for that period and be treated as a reduction to allowable interest expense.The rate of interest to be used to compute earnings on excess cash flows shall be the three month Treasury Bill closing rate as of the last business day of that month. (d) Substantial relocation of federally sponsored activities from a facility financed by indebtedness, the cost of which was funded in whole or part through Federal reimbursements, to another facility prior to the expiration of a period of 20 years requires notice to the Federal cognizant agency. The extent of the relocation, the amount of the Federal participation in the financing, and the depreciation and interest charged to date may require negotiation and/or downward adjustments of replacement space charged to Federal programs in the future. (e)The allowable costs to acquire facilities and equipment are limited to a fair market value available to the non-profit organization from an unrelated ("arm's length")third party. • b. For non-profit organizations subject to"full coverage"' under the Cost Accounting Standards(CAS) as defined at 48 CFR 9903.201, the interest allowability provisions of subparagraph a do not apply. Instead, these organizations' sponsored agreements are subject to CAS 414 (48 CFR 9903.414), cost of money as an element of the cost of facilities capital, and CAS 417 (48 CFR 9903.417), cost of money as an element of the cost of capital assets under construction. • c. The following definitions are to be used for purposes of this paragraph: (1) Re-acquired assets means assets held by the non-profit organization prior to September 29, 1995 that have again come to be held by the organization,whether through repurchase or refinancing. It does not include assets acquired to replace older assets. (2) Initial equity contribution means the amount or value of contributions made by non-profit organizations for the acquisition of the asset or prior to occupancy of facilities. (3)Asset costs means the capitalizable costs of an asset, including construction costs, acquisition costs, and other such costs capitalized in accordance with GAAP. 24. Labor relations costs. Costs incurred in maintaining satisfactory relations between the organization and its employees, including costs of labor management committees, employee publications, and other related activities are allowable. 25. Lobbying. a. Notwithstanding other provisions of this Circular, costs associated with the following activities are unallowable: • (1)Attempts to influence the outcomes of any Federal, State, or local election, referendum, initiative, or similar procedure, through in kind or cash contributions, endorsements, publicity, or similar activity; (2) Establishing, administering, contributing to, or paying the expenses of.a political party, campaign,political action committee, or other organization established for the purpose of influencing the outcomes of elections; (3)Any attempt to influence: (i)The introduction of Federal or State legislation; or(ii)the enactment or modification of any pending Federal or State legislation through communication with any member or employee of the Congress or State legislature (including efforts to influence State or local officials to engage in similar lobbying activity), or with any Government official or employee in connection with a decision to sign or veto enrolled legislation; (4)Any attempt to influence: (i)The introduction of Federal or State legislation; or(ii)the enactment or modification of any pending Federal or State legislation by preparing, distributing or using publicity or propaganda, or by urging members of the general public or any segment thereof to contribute to or participate in any mass demonstration, march, rally,fundraising drive, lobbying campaign or letter writing or telephone campaign; or (5)Legislative liaison activities, including attendance at legislative sessions or committee hearings, gathering .information regarding legislation, and analyzing the effect of legislation,when such activities are carried on in • support of or in knowing preparation for an effort to engage in unallowable lobbying. b. The following activities are excepted from the coverage of subparagraph a: http://www.whitehouse.gov/omb/rewrite/circulars/a 122/a 1 22_2 004.html 8/31/2009 hall reduce claims for interest expense by an amount equal to imputed interest earnings on excess cash flow,which is to be calculated as follows.Annually, non-profit organizations shall prepare a cumulative (from the • inception of the project) report of monthly cash flows that includes inflows and outflows, regardless of the funding source. Inflows consist of depreciation expense, amortization of capitalized construction interest, and annual interest expense. For cash flow calculations, the annual inflow figures shall be divided by the number of months in the year(usually 12)that the budding is in service for monthly http://vvww.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 the basis of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 �iieuiai 1-1-1GG, L,uSI rrincipies for ivon-Front urgamzations Page 25 of 34 (1) Providing a technical and factual presentation of information on a tdpic directly related to the performance of a grant, contract or other agreement through hearing testimony, statements or letters to the Congress or a • State legislature, or subdivision, member, or cognizant staff member thereof, in response to a documented request(including a Congressional Record notice requesting testimony or statements for the record at a regularly scheduled hearing) made by the recipient member, legislative body or subdivision, or a cognizant staff member thereof; provided such information is readily obtainable and can be readily put in deliverable form; and further provided that costs under this section for travel, lodging or meals are unallowable unless incurred to offer testimony at a regularly scheduled Congressional hearing pursuant to a written request for such presentation made by the Chairman or Ranking Minority Member of the Committee or Subcommittee conducting such hearing. (2)Any lobbying made unallowable by subparagraph a(3)to influence State legislation in order to directly reduce the cost, or to avoid material impairment of the organization's authority to perform the grant, contract, or other agreement. (3)Any activity specifically authorized by statute to be undertaken with funds from the grant, contract, or other agreement. c. (1)When an organization seeks reimbursement for indirect costs, total lobbying costs shall be separately identified in the indirect cost rate proposal, and thereafter treated as other unallowable activity costs in accordance with the procedures of subparagraph B.3 of Attachment A. (2)Organizations shall submit, as part of the annual indirect cost rate proposal, a certification that the requirements and standards of this paragraph have been complied with. (3) Organizations shall maintain adequate records to demonstrate that the determination of costs as being allowable or unallowable pursuant to paragraph 25 complies with the requirements of this Circular. (4)Time logs, calendars, or similar records shall not be required to be created for purposes of complying with this paragraph during any particular calendar month when: (1)the employee engages in lobbying (as defined in subparagraphs (a) and (b)) 25 percent or less of the employee's compensated hours of employment during that calendar month, and (2)within the preceding five-year period,the organization has not materially misstated allowable or unallowable costs of any nature, including legislative lobbying costs. When conditions (1)and (2) are met, organizations are not required to establish records to support the allowabliliy of claimed costs in addition to records already required or maintained. Also, when conditions (1)and (2) are met, the absence of time logs, calendars, or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month. • (5)Agencies shall establish procedures for resolving in advance, in consultation with OMB, any significant questions or disagreements concerning the interpretation or application of paragraph 25. Any such advance resolution shall be binding in any subsequent settlements, audits or investigations with respect to that grant •or contract for purposes of interpretation of this Circular; provided, however, that this shall not be construed • to prevent a contractor or grantee from contesting the lawfulness of such a determination. d. Executive lobbying costs.Costs incurred in attempting to improperly influence either directly or indirectly,an employee or officer of the Executive Branch of the Federal Government to give consideration or to act regarding a sponsored agreement or a regulatory matter are unallowable. Improper influence means any influence that induces or tends to induce a Federal employee or officer to give consideration or to act regarding a federally sponsored agreement or regulatory matter on any basis other than the merits of the matter. 26. Losses on other sponsored agreements or contracts. Any excess of costs over income on any award is • unallowable as a cost of any other award. This includes, but is not limited to,the organization's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums for, or ceilings on, indirect costs. 27. Maintenance and repair costs. Costs incurred for necessary maintenance, repair,or upkeep of buildings and equipment(including Federal property unless otherwise provided for)which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • • allowable. b. Purchased materials and supplies shall be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper part of materials and supplies costs. c. Only materials and supplies actually used for the performance of a Federal award may be charged as direct costs. • d. Where federally donated or furnished materials are used in performing the Federal award, such materials will be used without charge. - • 29. Meetings and conferences. Costs of meetings and conferences, the primary purpose of which is the dissemination of technical information, are allowable.This includes costs of meals,transportation, rental of facilities, speakers'fees, and other items incidental to such meetings or conferences. But see Attachment B, paragraphs 14., Entertainment costs, and 33., Participant support costs. 30. Memberships, subscriptions, and professional activity costs. • a. Costs of the non-profit organization's membership in business, technical, and professional organizations are allowable. b. Costs of the non-profit organization's subscriptions to business, professional, and technical periodicals are allowable. c. Costs of membership in any civic or community organization are allowable with prior approval by Federal cognizant agency. d. Costs of membership in any country club or social or dining club or organization are unallowable. 31. Organization costs. Expenditures, such as incorporation fees, brokers'fees,fees to promoters, organizers or management consultants, attorneys, accountants, or investment counselors,whether or not employees of the organization, in connection with establishment or reorganization of an organization, are unallowable except with prior approval of the awarding agency. 32. Page charges in professional journals. Page charges for professional journal publications are allowable as a necessary part of research costs, where: a. The research papers report work supported by the Federal Government; and b. The charges are levied impartially on all research papers published by the journal, whether or not by federally sponsored authors. 33. Participant support costs. Participant support costs are direct costs for items such as stipends or subsistence allowances,travel allowances, and registration fees paid to or on behalf of participants or trainees (but not • employees) in connection with meetings, conferences, symposia,or training projects. These costs are allowable with the prior approval of the awarding agency. 34. Patent costs. • a. The following costs relating to patent and copyright matters are allowable: (i)cost of preparing disclosures, reports, and other documents required by the Federal award and of searching the art to the extent necessary to make such disclosures; (ii) cost of preparing documents and any other patent costs in connection with the filing and prosecution of a United States patent application where title or royalty-free license is required by the Federal Government to be conveyed to the Federal Government; and (iii) general counseling services relating to patent and copyright matters, such as advice on patent and copyright laws, regulations, clauses, and employee agreements(but see paragraphs 37., Professional services costs, and 44., Royalties and other costs for use of patents and copyrights). b. The following costs related to patent and copyright matter are unallowable: (1)Cost of preparing disclosures, reports, and other documents and of searching the art to the extent naraccary to makes riicrinci irac not rani iirarl by tha award http://www.whitehouse.gov/omb/rewrite/circulars/a 122/a122_2004.html 8/31/2009 per influence means any influence that induces or tends to induce a Federal employee or officer to give consideration or to act regarding a federally sponsored agreement or regulatory matter on any basis other than the merits of the matter. 26. Losses on other sponsored agreements or contracts. Any excess of costs over income on any award is • unallowable as a cost of any other award. This includes, but is not limited to,the organization's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums for, or ceilings on, indirect costs. 27. Maintenance and repair costs. Costs incurred for necessary maintenance, repair,or upkeep of buildings and equipment(including Federal property unless otherwise provided for)which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 l.L1l.U.1Q1 !"'1'1GG1 LOJL 1 11111.11J1GJ lul 1Vu11-11u11L V16R111LA.11u11J i' vl ✓ I • (2) Costs in connection with filing and prosecuting any foreign patent application, or any United States patent application, where the Federal award does not require conveying title or a royalty-free license to the Federal Government(but see paragraph 45., Royalties and other costs for use of patents and copyrights). • 35. Plant and homeland security costs. Necessary and reasonable expenses incurred for routine and homeland security to protect facilities, personnel, and work products are allowable. Such costs include, but are not limited to, wages and uniforms of personnel engaged in security activities; equipment; barriers; contractual security services; • consultants; etc. Capital expenditures for homeland and plant security purposes are subject to paragraph 15., Equipment and other capital expenditures, of this Circular. 36. Pre-agreement costs. Pre-award costs are those incurred prior to the effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency. • 37. Professional services costs. a. Costs of professional and consultant services rendered by persons who are'members of a particular profession or possess a special skill, and who are not officers or employees of the non-profit organization, are allowable, subject to subparagraphs b and c when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Federal Government. In addition, legal and related services are limited under Attachment B, paragraph 10. b. In determining the allowability of costs in a particular case, no single factor or any special combination of factors is necessarily determinative. However, the following factors are relevant: (1)The nature and scope of the service rendered in relation to the service required. (2)The necessity of contracting for the service,considering the non-profit organization's capability in the particular area. (3)The past pattern of such costs, particularly in the years prior to Federal awards. (4)The impact of Federal awards on the non-profit organization's business (i.e.,what new problems have arisen). • (5)Whether the proportion of Federal work to the non-profit organization's total business is such as to influence the non-profit organization in favor of incurring the cost, particularly where the services rendered are not of a continuing nature and have little relationship to work under Federal grants and contracts. (6)Whether the service can be performed more economically by direct employment rather than contracting. (7)The qualifications of the individual or concern rendering the service and the customary fees charged, especially on non-Federal awards. (8)Adequacy of the contractual agreement for the service (e.g., description of the service, estimate of time required, rate of compensation, and termination provisions). c. In addition to the factors in subparagraph b, retainer fees to be allowable must be supported by evidence of bona fide services available or rendered . 38. Publication and printing costs. • • • a. Publication costs include the costs of printing (including the processes of composition, plate-making, press work, binding, and the end products produced by such processes), distribution, promotion, mailing, and general handling. Publication costs also include page charges in professional publications. • b. If these costs are not identifiable with a particular cost objective, they should be allocated as indirect costs to all benefiting activities of the non-profit organization. c. Page charges for professional journal publications are allowable as a necessary part of research costs where: • • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 ny excess of costs over income on any award is • unallowable as a cost of any other award. This includes, but is not limited to,the organization's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums for, or ceilings on, indirect costs. 27. Maintenance and repair costs. Costs incurred for necessary maintenance, repair,or upkeep of buildings and equipment(including Federal property unless otherwise provided for)which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 (1)The research papers report work supported by the Federal Government: and (2)The charges are levied impartially on all research papers published by the journal,whether or not by federally sponsored authors. • 39. Rearrangement and alteration costs. Costs incurred for ordinary or normal rearrangement and alteration of facilities are allowable. Special arrangement and alteration costs incurred specifically for the project are allowable • •with the prior approval of the awarding agency. • 40. Reconversion costs. Costs incurred in the restoration or rehabilitation of the non-profit organization's facilities to approximately the same condition existing immediately prior to commencement of Federal awards, less costs related to normal wear and tear, are allowable. 41. Recruiting costs. a. Subject to subparagraphs b, c, and d, and provided that the size of the staff recruited and maintained is in keeping with workload requirements, costs of"help wanted"advertising, operating costs of an employment office necessary to secure and maintain an adequate staff, costs of operating an aptitude and educational testing program,travel costs of employees while engaged in recruiting personnel,travel costs of applicants for interviews for prospective employment, and relocation costs incurred incident to recruitment of new employees, are allowable to the extent that such costs are incurred pursuant to a well-managed recruitment program.Where the organization uses employment agencies, costs that are not in excess of standard commercial rates for such services are allowable. • b. In publications, costs of help wanted advertising that includes color, includes advertising material for other than recruitment purposes,or is excessive in size (taking into consideration recruitment purposes for which intended and normal organizational practices in this respect),are unallowable. c. Costs of help wanted advertising, special emoluments, fringe benefits, and salary allowances incurred to attract professional personnel from other organizations that do not meet the test of reasonableness or do not conform with the established practices of the organization, are unallowable. d. Where relocation costs incurred incident to recruitment of a new employee have been allowed either as an allocable direct or indirect cost,and the newly hired employee resigns for reasons within his control within twelve months after being hired, the organization will be required to refund or credit such relocation costs to the Federal Government. 42. Relocation costs. a. Relocation costs are costs incident to the permanent change of duty assignment(for an indefinite period or for a stated period of not less than 12 months) of an existing employee or upon recruitment of a new employee. Relocation costs are allowable, subject to the limitation described in subparagraphs b, c, and d, provided that: (1)The move is for the benefit of the employer. . • (2) Reimbursement to the employee is in accordance with an established written policy consistently followed by the employer. (3)The reimbursement does not exceed the employee's actual (or reasonably estimated) expenses. • b. Allowable relocation costs for current employees are limited to the following: (1)The costs of transportation of the employee, members of his immediate family and his household, and personal effects to the new location. • • (2)The costs of finding a new home,such as advance trips by employees and spouses to locate living • quarters and temporary lodging during the transition period, up to maximum period of 30 days, including advance trip time. (3) Closing costs, such as brokerage, legal, and appraisal fees, incident to the disposition of the employee's former home.These costs, together with those described in (4), are limited to 8 percent of the sales price of the employee's former home. http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 1 22 2004.html 8/31/2009 nal publications are allowable as a necessary part of research costs where: • • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a 122_2004.html 8/31/2009 ny excess of costs over income on any award is • unallowable as a cost of any other award. This includes, but is not limited to,the organization's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums for, or ceilings on, indirect costs. 27. Maintenance and repair costs. Costs incurred for necessary maintenance, repair,or upkeep of buildings and equipment(including Federal property unless otherwise provided for)which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 l lrl Ulal ti-142, l osl rrmnt:vies for 1Non-rrolll. Vrgamzauons rage Gy 01 _I'+ (4) The continuing costs of ownership of the vacant former home after the settlement or lease date of the employee's new permanent home, such as maintenance of buildings and grounds (exclusive of fixing up expenses), utilities, taxes, and property insurance. (5) Other necessary and reasonable expenses normally incident to relocation, such as the costs of canceling an unexpired lease, disconnecting and reinstalling household appliances, and purchasing insurance against loss of or damages to personal property. The cost of canceling an unexpired lease is limited to three times the monthly rental. c. Allowable relocation costs for new employees are limited to those described in (1) and (2) of subparagraph b. When relocation costs incurred incident to the recruitment of new employees have been allowed either as a direct or indirect cost and the employee resigns for reasons within his control within 12 months after hire,the organization shall refund or credit the Federal Government for its share of the cost. However,the costs of travel to an overseas location shall be considered travel costs in accordance with paragraph 50 and not relocation costs for the purpose of this paragraph if dependents are not permitted at the location for any reason and the costs do not include costs of transporting household goods. d. The following costs related to relocation are unallowable: (1) Fees and other costs associated with acquiring a new home. (2) A loss on the sale of a former home. (3) Continuing mortgage principal and interest payments on a home being sold. • (4) Income taxes paid by an employee related to reimbursed relocation costs. 43. Rental costs of buildings and equipment. a. Subject to the limitations described in subparagraphs b. through d. of this paragraph 43, rental costs are allowable to the extent that the rates are reasonable in light of such factors-as: rental costs of comparable property, if any; market conditions in the area; alternatives available; and, the type, life expectancy, condition, and value of the property leased. Rental arrangements should be reviewed periodically to determine if circumstances have changed and other options are available. b. Rental costs under"sale and lease back"arrangements are allowable only up to the amount that would be allowed had the non-profit organization continued to own the property.This amount would include expenses such as depreciation or use allowance, maintenance, taxes, and insurance. c. Rental costs under"less-than-arms-length"leases are allowable only up to the amount(as explained in subparagraph b. of this paragraph 43.)that would be allowed had title to the property vested in the non-profit organization. For this purpose, a less-than-arms-length lease is one under which one party to the lease agreement is able to control or substantially influence the actions of the other. Such leases include, but are not limited to those between (i) divisions of a non-profit organization; (ii) non-profit organizations under common control through common officers, directors, or members; and (iii)a non-profit organization and a director,trustee,officer, or key employee of the non-profit organization or his immediate family, either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest. For example, a non-profit organization may establish a separate corporation for the sole purpose of owning property and leasing it back to the non-profit organization. d. Rental costs under leases which are required to be treated as capital leases under GAAP are allowable only up to the amount(as explained in subparagraph b)that would be allowed had the non-profit organization purchased the property on the date the lease agreement was executed. The provisions of Financial Accounting Standards Board Statement 13,Accounting for Leases, shall be used to determine whether a • lease is a capital lease. Interest costs related to capital leases are allowable to the extent they meet the criteria in subparagraph 23. Unallowable costs include amounts paid for profit, management fees, and taxes •that would not have been incurred had the non-profit organization purchased the facility. • 44. Royalties and other costs for use of patents and copyrights. . • a. Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright, patent, or rights thereto, necessary for the proper performance of the award are allowable unless: (1)The Federal Government has a license or the right to free use of the patent or copyright. (21 The patent or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 invalid. • • (3) The patent or copyright is considered to be unenforceable. (4)The patent or copyright is expired. b. Special care should be exercised in determining reasonableness where the royalties may have arrived at as • a result of less-than-arm's-length bargaining, e.g.: (1) Royalties paid to persons, including corporations, affiliated with the non-profit organization. (2) Royalties paid to unaffiliated parties, including corporations, under an agreement entered into in contemplation that a Federal award would be made. (3) Royalties paid under an agreement entered into after an award is made to a non-profit organization. • c. In any case involving a patent or copyright formerly owned by the non-profit organization;the amount of royalty allowed should not exceed the cost which would have been allowed had the non-profit organization. retained title thereto. 45. Selling and marketing. Costs of selling and marketing any products or services of the non-profit organization are unallowable (unless allowed under Attachment B, paragraph 1. as allowable public relations cost. However, these costs are allowable as direct costs, with prior approval by awarding agencies, when they are necessary for the performance of Federal programs. • 46. Specialized service facilities. a. The costs of services provided by highly complex or specialized facilities operated by the non-profit organization, such as computers, wind tunnels, and reactors are allowable, provided the charges for the services meet the conditions of either 46 b. or c. and, in addition, take into account any items of income or Federal financing that qualify as applicable credits under Attachment A, subparagraph A.5. of this Circular. b. The costs of such services, when material, must be charged directly to applicable awards based on actual usage of the services on the basis of a schedule of rates or established methodology that(i) does not discriminate against federally supported activities of the non-profit organization, including usage by the non- • profit organization for internal purposes, and (ii)is designed to recover only the aggregate costs of the services.The costs of each service shall consist normally of both its direct costs and its allocable share of all • indirect costs. Rates shall be adjusted at least biennially, and shall take into consideration over/under applied costs of the previous period(s). c. Where the costs incurred for a service are not material,they may be allocated as indirect costs. d. Under some extraordinary circumstances,where it is in the best interest of the Federal Government and the institution to establish alternative costing arrangements, such arrangements may be worked out with the cognizant Federal agency. 47. Taxes. • .a. In general, taxes which the organization is required to pay and which are paid or accrued in accordance with GAAP, and payments made to local governments in lieu of taxes which are commensurate with the local government services received are allowable, except for(i)taxes from which exemptions are available to the organization directly or which are available to the organization based on an exemption afforded the Federal Government and in the latter case when the awarding agency makes available the necessary exemption certificates, (ii) special assessments on land which represent capital improvements, and (iii) Federal income taxes. • b. Any refund of taxes, and any payment to the organization of interest thereon,which were allowed as award costs,will be credited either as a cost reduction or cash refund, as appropriate,to the Federal Government. 48. Termination costs applicable to sponsored agreements. • Termination of awards generally gives rise to the incurrence of costs,or the need for special treatment of costs, which would not have arisen had the Federal award not been terminated. Cost principles covering these items are set forth below. They are to be used in conjunction with the other provisions of this Circular in termination situations. • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html ' 8/31/2009 axes •that would not have been incurred had the non-profit organization purchased the facility. • 44. Royalties and other costs for use of patents and copyrights. . • a. Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright, patent, or rights thereto, necessary for the proper performance of the award are allowable unless: (1)The Federal Government has a license or the right to free use of the patent or copyright. (21 The patent or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 a. The cost of items reasonably usable on the non-profit organization's other work shall not be allowable unless the non-profit organization submits evidence that it would not retain such items at cost without sustaining a loss. In deciding whether such items are reasonably usable on other work of the non-profit organization, the awarding agency should consider the non-profit organization's plans and orders for current and scheduled activity. Contemporaneous purchases of common items by the non-profit organization shall be regarded as evidence that such items are reasonably usable on the non-profit organization's other work. Any acceptance of common items as allocable to the terminated portion of the Federal award shall be limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of the reasonable quantitative requirements of other work. b. If in a particular case, despite all reasonable efforts by the non-profit organization, certain costs cannot be discontinued immediately after the effective date of termination, such costs are generally allowable within the limitations set forth in this Circular, except that any such costs continuing after termination due to the negligent or willful failure of the non-profit organization to discontinue such costs shall be unallowable. • c. Loss of useful value of special tooling, machinery,and is generally allowable if: • (1) Such special tooling, special machinery, or equipment is not reasonably capable of use in the other work of the non-profit organization, • (2)The interest of the Federal Government is protected by transfer of title or by other means deemed appropriate by the awarding agency, and (3)The loss of useful value for any one terminated Federal award is limited to that portion of the acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of the Federal award bears to the entire terminated Federal award and other Federal awards for which the special tooling, special machinery, or equipment was acquired. d. Rental costs under unexpired leases are generally allowable where clearly shown to have been reasonably necessary for the performance of the terminated Federal award less the residual value of such leases, if: • (1)the amount of such rental claimed does not exceed the reasonable use value of the property leased for the period of the Federal award and such further period as may be reasonable, and (2)the non-profit organization makes all reasonable efforts to terminate, assign, settle, or otherwise reduce the cost of such lease.There also may be included the cost of alterations of such leased property, provided such alterations were necessary for the performance of the Federal award, and of reasonable restoration required by the provisions of the lease. e. Settlement expenses including the following are generally allowable: (1)Accounting, legal, clerical, and similar costs reasonably necessary for: (a)The preparation and presentation to the awarding agency of settlement claims and supporting • data with respect to the terminated portion of the Federal award, unless the termination is for default (see Subpart_.61 of Circular A-110); and (b)The termination and settlement of subawards. • (2) Reasonable costs for the storage,transportation, protection, and disposition of property provided by the Federal Government or acquired or produced for the Federal award, except when grantees or contractors are reimbursed for disposals at a predetermined amount in accordance with Subparts_.32 through .37 of Circular A-110. (3) Indirect costs related to salaries and wages incurred as settlement expenses in subparagraphs(1) and (2). Normally, such indirect costs shall be limited to fringe benefits, occupancy cost, and immediate supervision. f. Claims under sub awards, including the allocable portion of claims which are common to the Federal award, and to other work of the non-profit organization are generally allowable: An appropriate share of the non-profit organization's indirect expense may be allocated to the amount of settlements with subcontractors and/or subgrantees, provided that the amount allocated is otherwise consistent with the basic guidelines contained in Attachment A. The indirect expense so allocated shall exclude the same and similar costs claimed directly or indirectly as settlement expenses. • • http://www.whitehouse.gov/omb/rewrite/circulars/al 22/a 122_2004.html 8/31/ 2009 e patent or copyright. (21 The patent or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • 49. Training costs. a. Costs of preparation and maintenance of a program of instruction including but not limited to on-the-job, classroom, and apprenticeship training, designed to increase the vocational effectiveness of employees, including training materials, textbooks, salaries or wages of trainees (excluding overtime compensation which might arise therefrom), and (i) salaries of the director of training and staff when the training program is conducted by the organization; or(ii)tuition and fees when the training is in an institution not operated by the organization, are allowable. b. Costs of part-time education, at an undergraduate or post-graduate college level, including that provided at the organization's own facilities, are allowable only when the course or degree pursued is relative to the field in which the employee is now working or may reasonably be expected to work, and are limited to: • (1) Training materials. (2) Textbooks. (3) Fees charges by the educational institution. (4)Tuition charged by the educational institution or, in lieu of tuition, instructors'salaries and the related share of indirect costs of the educational institution to the extent that the sum thereof is not in excess of the tuition which would have been paid to the participating educational institution. (5) Salaries and related costs of instructors who are employees of the organization: (6) Straight-time compensation of each employee for time spent attending classes during working hours not • in excess of 156 hours per year and only to the extent that circumstances do not permit the operation of classes or attendance at classes after regular working hours; otherwise, such compensation is unallowable. c. Costs of tuition,fees, training materials, and textbooks (but not subsistence, salary, or any other emoluments) in connection with full-time education, including that provided at the organization's own facilities, at a post-graduate (but not undergraduate) college level, are allowable only when the course or degree pursued is related to the field in which the employee is now working or may reasonably be expected to work, and only where the costs receive the prior approval of the awarding agency. Such costs are limited to the costs attributable to a total period not to exceed one school year for each employee so trained. In unusual cases the period may be extended. d. Costs of attendance of up to 16 weeks per employee per year at specialized programs specifically designed - to enhance the effectiveness of executives or managers or to prepare employees for such positions are allowable. Such costs include enrollment fees,training materials, textbooks and related charges, employees' salaries, subsistence, and travel. Costs allowable under this paragraph do not include those for courses that are part of a degree-oriented curriculum,which are allowable only to the extent set forth,in subparagraphs b and c. e. Maintenance expense, and normal depreciation or fair rental, on facilities owned or leased by the organization for training purposes are allowable to the extent set forth in paragraphs 11, 27, and 50. f. Contributions or donations to educational or training institutions, including the donation of facilities or other properties, and scholarships or fellowships, are unallowable. • g. Training and education costs in excess of those otherwise allowable under subparagraphs b and c may be allowed with prior approval of the awarding agency. To be considered for approval, the organization must demonstrate that such costs are consistently incurred pursuant to an established training and education program,and that the course or degree pursued is relative to the field in which the employee is now working or may reasonably be expected to work. 50. Transportation costs. Transportation costs include freight, express, cartage, and postage charges relating either to goods purchased, in process, or delivered.These costs are allowable. When such costs can readily be identified with the items involved,they may be directly charged as transportation costs or added to the cost of such items (see paragraph 28). Where identification with the materials received cannot readily be made, transportation costs may be charged to the appropriate indirect cost accounts if the organization follows a consistent, equitable procedure in this respect. • 51. Travel costs. a. General. Travel costs are the expenses for transportation. lodaino. subsistence, and related items incurred by • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 employees who are in travel status on official business of the non-profit organization. Such costs may be charged on an actual cost basis, on a per diem or mileage basis in.lieu of actual costs incurred, or on a combination of the two, provided the method used is applied to an entire trip and not to selected days of the trip, and results in charges consistent with those normally allowed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence. Costs incurred by employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, shall be considered reasonable and allowable only to the extent such costs do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy. In the absence of an acceptable,written non- profit organization policy regarding travel costs, the rates and amounts established under subchapter I of Chapter.57, Title 5, United States Code("Travel and Subsistence Expenses; Mileage Allowances"), or by the Administrator of General Services, or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent), Federal Government contract airfare (where authorized and available), or the lowest commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing; (b) require travel during unreasonable hours; (c) excessively prolong travel; (d)result in additional costs that would offset the transportation savings; or(e) offer accommodations not reasonably adequate for the traveler's medical needs. The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. • (2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following: (a)that such airfare was not available in the specific case; or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • • IIT Research Institute, Chicago, Illinois • Institute of Gas Technology, Chicago, Illinois • • Institute for Defense Analysis, Alexandria,Virginia •. LMI,.McLean, Virginia • Mitre Corporation, Bedford, Massachusetts • Mitretek Systems, Inc., Falls Church,Virginia • • National Radiological Astronomy Observatory, Green Bank,West Virginia • National Renewable Energy Laboratory, Golden, Colorado • Oak Ridge Associated Universities, Oak Ridge,Tennessee • Rand Corporation, Santa Monica, California • Research Triangle Institute, Research Triangle Park, North Carolina • Riverside Research Institute, New York, New York • South Carolina Research Authority(SCRA), Charleston, South Carolina • Southern Research Institute, Birmingham, Alabama • Southwest Research Institute, San Antonio, Texas • SRI International, Menlo Park, California • Syracuse Research Corporation, Syracuse, New York • Universities Research Association, Incorporated(National Acceleration Lab),Argonne, Illinois • Urban Institute,Washington D.C. • Non-profit insurance companies, such as Blue Cross and Blue Shield Organizations • Other non-profit organizations as negotiated with awarding agencies Return to Top • • • • • ° http://www.Whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 nment contract airfare (where authorized and available), or the lowest commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing; (b) require travel during unreasonable hours; (c) excessively prolong travel; (d)result in additional costs that would offset the transportation savings; or(e) offer accommodations not reasonably adequate for the traveler's medical needs. The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. • (2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following: (a)that such airfare was not available in the specific case; or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 EXHIBIT k CITY OF OMAHA PLANNING DEPARTMENT-HOUSING AND COMMUNITY DEVELOPMENT OCCUPANCY REPORT Project Name Borrower/Head of Household Name DOB SSN Co-Borrower Name DOB SSN Address City Funds Requested $ Fund Source: HOME ❑ CDBG ❑ NAHTF ❑ OTHER❑ • Head of Household is: Male (l Female ❑ Elderly ❑ Number of Occupants: Total No. Adults No. Children Under 18 Please enter ethnicity and race for each household member in accordance with the attached definitions. Ethnicity—Choose either H or NH. Enter H for Hispanic or Latino. Enter NH for Not Hispanic or Latino Race Categories—Choose all that apply for each household member. Enter one or more of the following abbreviations: W,B, A, AI, PI, O. White(W) Black or African American (B) Asian(A) American Indian or Alaska Native(AI) Native Hawaiian or Other Pacific Islander(PI) Other(0)(Please specify) HOUSEHOLD MEMBERS AND DEMOGRAPHICS (See Above) Ethnicity Name of Household Member Relationship to Borrower Age (H or NH) Race Handicap Borrower/Head of Household Co-Borrower Notes: I certify that the above information is accurate. Borrower Date Co-Borrower Date Authorized Agency Representative Date Page 1 of 2 Revised 6-1-06 nment contract airfare (where authorized and available), or the lowest commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing; (b) require travel during unreasonable hours; (c) excessively prolong travel; (d)result in additional costs that would offset the transportation savings; or(e) offer accommodations not reasonably adequate for the traveler's medical needs. The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. • (2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following: (a)that such airfare was not available in the specific case; or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 DEFINITIONS: Ethnicity: 1. Hispanic or Latino. A person of Cuban, Mexican, Puerto Rican, South or Central American or other Spanish culture or origin, regardless of race. The term of "Spanish origin" can be used in addition to "Hispanic" or"Latino". 2. Not Hispanic or Latino. A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. Race: 1. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. 2. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam. 3. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as "Haitian" or"Negro" can be used in addition to "Black" or"African American". 4. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa or other Pacific Islands. 5. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. Page 2 of 2 Revised 6-1-06 Page 1 of 2 Revised 6-1-06 nment contract airfare (where authorized and available), or the lowest commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing; (b) require travel during unreasonable hours; (c) excessively prolong travel; (d)result in additional costs that would offset the transportation savings; or(e) offer accommodations not reasonably adequate for the traveler's medical needs. The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. • (2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following: (a)that such airfare was not available in the specific case; or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 PLEASE COMPLETE THE ENTIRE FORM. EXHIBIT Choose Funding Program: (Circle all applicable) CDBG HOME ESG SHP Other CITY OF OMAHA-TENANT SURVEY FORM 200 A. GENERAL INFORMATION Tenant Name(s) Telephone Address Apt.No. Initial Date of Lease Recertification Lease Date DEMOGRAPHICS & ANTICIPATED INCOME OF ALL HOUSEHOLD MEMBERS Head of Household is: Male ❑ Female❑ Elderly ❑ Number of Occupants: Total No. Adults No. Children Under 18 Please enter ethnicity and race for each household member in accordance with the attached definitions. Ethnicity—Choose either H or NH. Enter H for Hispanic or Latino. Enter NH for Not Hispanic or Latino. Race Categories—Choose all that apply for each household member. Enter one or more of the following abbreviations: W, B, A, Al, PI, O. White(W); Black or African American (B); Asian (A); American Indian or Alaska Native (AI); Native Hawaiian or Other Pacific Islander(PI) Other(0)(Please specify) • Anticipated Anticipated Name of Household Member (H or NH) (See Above) Monthly Annual Age Ethnicity Race Handicap Income Income $ $ $ $ $ $ $ TOTAL $ '$ 100% MEDIAN FAMILY INCOME(MFI)FOR HH SIZE $ %OF MFI FOR HH SIZE B. HOUSING CHARACTERISTICS Housing Costs HUD Rent Limits Monthly Housing Cost: Actual Contract Rent $ Average Monthly Utility Cost $ Total Monthly Housing Cost $ $ Subsidized Rent Assistance Received (Please list source and amount): Section 8: $ Other Assistance: Source Amount $ No Assistance Unit Type: Efficiency ❑ 1 BR ❑ 2 BR ❑ 3 BR ❑ Other❑ Handicap Accessible Unit: Yes ❑ No ❑ Check one: 50% Unit❑ 60% Unit❑ 80% Unit C. TENANTS IN-PLACE AT TIME OF LOAN CLOSING -Non-disclosure Form Required D. REMARKS: Owner or Authorized Representative Phone Date Please attach utility allowance determination form, City of Omaha Computing Annual Income Form and current lease agreement with each Tenant Survey. 1112111 EQUAL HOUSING OPPORTUNITY • Revised 5/1/08 Page 1 of 2 )that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 DEFINITIONS: 1. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. 2. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam. 3. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as "Haitian" or"Negro" can be used in addition to "Black" or"African American". 4. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa or other Pacific Islands. 5. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. • o i Revised 5/1/08 Page 2 of 2 0)(Please specify) • Anticipated Anticipated Name of Household Member (H or NH) (See Above) Monthly Annual Age Ethnicity Race Handicap Income Income $ $ $ $ $ $ $ TOTAL $ '$ 100% MEDIAN FAMILY INCOME(MFI)FOR HH SIZE $ %OF MFI FOR HH SIZE B. HOUSING CHARACTERISTICS Housing Costs HUD Rent Limits Monthly Housing Cost: Actual Contract Rent $ Average Monthly Utility Cost $ Total Monthly Housing Cost $ $ Subsidized Rent Assistance Received (Please list source and amount): Section 8: $ Other Assistance: Source Amount $ No Assistance Unit Type: Efficiency ❑ 1 BR ❑ 2 BR ❑ 3 BR ❑ Other❑ Handicap Accessible Unit: Yes ❑ No ❑ Check one: 50% Unit❑ 60% Unit❑ 80% Unit C. TENANTS IN-PLACE AT TIME OF LOAN CLOSING -Non-disclosure Form Required D. REMARKS: Owner or Authorized Representative Phone Date Please attach utility allowance determination form, City of Omaha Computing Annual Income Form and current lease agreement with each Tenant Survey. 1112111 EQUAL HOUSING OPPORTUNITY • Revised 5/1/08 Page 1 of 2 )that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 . ,. d CO • E w L as a J� � � 4 ¢ w 0 s. +.+ LO ° Vs d Er V C.I. V a) > ¢ C L o m — pp _ U °� W ¢ W es. a '.C$ • v� OOA U Q ¢ °' a 4r a) a) a) ° B c i o 0 03 o Tt C U > L t Q. • — 0 L Y, a L • _E > a, Q Q . ..a - c' = • z z v, c v C7 C7 c; ° = CO) N U) W a) _° b t ° u Z -o o O Q W ¢ ¢ .0 dOU = w � o. c)0 0 a Z u • a) - • .•.o G 44 Q A L. Q y w u � H y z o zz • w Q z z ¢ a; H G ,�, J Z d w Ca F r . E� � c O G. L. .za wwwLa. 4. w o U 0 ¢ `.`....`.`.', H U) O cct a. z .ca an 0 T w JD E U a' 0 . ' H a) CC 0 3 0 rob L a) E o.73 a) . .0 a) cd «i NI L N CI ti) En ' y U �, o -0 •o ..... • c ) ( d C4. )En in c otnc . L a) N LU�i L. a) o . o •,1 W CU U) 0 a) E F a) ct o � > , c 8 = 0 ¢ c t= ce o 3 Z ai E ,_ z • z ° � ¢ .°, ri5 > ¢ U tz. — ° 0. 1. -- N w C rC ¢ • 3 C M O w y -o o o 0 ozi as ca 0 H z ¢w z moo carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 FINANCIAL STATUS REPORT FORM EXHIBIT L- (Please attach AIA G702 form and other comparable supporting documentation for expenditures) N Developer Name: Program: CDBG ❑ ESG ❑ Developer's Contractor: HOME ❑ NAHTF ❑ Project Address: NSP ❑ SHP ❑ Project Type: Acquisition ❑ Loan #: New Constr ❑ Rehab ❑ Reporting Period: From: to DEVELOPMENT PROJECT % BUDGET COSTS BUDGET COMPLETE REMAINING Hard costs $ % $ - Soft costs: Developer's overhead * $ % $ Property Taxes $ % $ Property Insurance $ % $ Real Estate Transfer Fees $ % $ Recording Fees $ % $ Appraisal Fee(s) $ % $ Title Insurance $ % $ Omaha 100 Loan Fee $ % $ FHAS Counseling Fee $ % $ Advertising $ % $ Utilities $ % $ Grounds Maintenance $ % $ Other(explain: $ % $ Other(explain: ) $ % $ Other: $ % $ TOTALS $ % $ * Developer's overhead percentage is based on the percent of hard cost work completed in the attached in AIA or comparable document. TOTAL PAY REQUEST: $ Amount . Amount City Funds Other Funds $ $ FUNDING SOURCES PROJECT % BUDGET • BUDGET COMPLETE REMAINING $ % $ $ % $ $ % $ Other: $ % $ Other: $ % $ Other: • $ % ' $ TOTALS: $ % $ I certify to the best of my knowledge that the above information is correct and complete and is for the purpose set forth in the award documents. Financial records are available for audit or review. Authorized Certifying Officer Title Date Printed Name: Revised and approved 11/5/2009 0. 1. -- N w C rC ¢ • 3 C M O w y -o o o 0 ozi as ca 0 H z ¢w z moo carrier. Costs of travel by non-profit organization-owned, -leased, or- chartered aircraft include the cost of lease,charter, operation(including personnel costs), maintenance, depreciation, insurance, and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 EXHIBIT M SOIL WORK POLICY FEDERAL CDBG, HOME, ECONOMIC DEVELOPMENT INITIATIVE and NEIGHBORHOOD INITIATIVE PROGRAMS Housing Development Programs The City of Omaha operates several housing development programs with federal funds from the Community Development Block Grant, HOME Investment Partnerships Program, Economic Development Initiative Grant and Neighborhood Initiative Grant Programs. The City's housing development programs may involve the removal of structures, installation of public infrastructure and site preparation work prior to the construction of new residential structures by developers. The Governor has made a request to the U.S. Environmental Protection Agency (EPA) to declare a portion of the eastern part of Omaha a Superfund Site as a result of high concentrations of lead in the soil. The area in question is generally bound by Ames Avenue, Missouri River, "L" Street and 45th Street, subject to the actual testing of individual lots. Policy: The soil work requirements for housing development projects involving the removal of structures, installation of public infrastructure and/or site preparation work within the Superfund Site are as follows: The lead content of the soil on the property will be determined by laboratory analysis using either flame or furnace atomic absorption spectroscopy. Laboratories performing analysis for lead in soil will be certified by the National Lead Laboratories Accreditation Program (NLLAP) by mandatory participation in the Environmental Lead Proficiency Analytical Testing (ELPAT) program. Lead content will be reported as parts per million (pPm)• Should any of the soil samples report a lead concentration greater than 400 ppm, the affected soil will be removed to a depth where the soil samples report a lead concentration of less than 400 ppm or to a depth of one foot below the finished grade, whichever depth is less. In addition to requirements for soil integrity used for structural fill, all soil brought onto the property must be tested for environmental contaminants. Borrow soils used for purposes other than for structural fill, such as finish grade, topsoil or surcharge, are required to be tested in the same manner for environmental contaminants. The contractor will inform the City of the location of borrow soil no less than ten days prior to its use on the property. Testing will include the collection of not less than three samples per borrow site. The City and/or its designated representative will complete soil sample collection. Should any of the soil samples report a lead concentration greater than 400 ppm, the soil will not be allowed for use on housing development program properties. Effective 9/1/2002 ial air travel, as provided for in subparagraph] c., is unallowable. e. Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency. Each separate foreign trip must receive such approval. For purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United States, and any United States territories and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 24 CFR 85.43 ENFORCEMENT EXHIBIT JV (a) Remedies for non-compliance. If a grantee or sub-grantee materially fails to comply with any term of an award, whether stated in a federal statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere, the awarding agency may take one or more of the following actions, as appropriate in the circumstances: (I) Temporarily withhold cash payments pending correction of the deficiency by the grantee or sub-grantee or more severe enforcement action by the awarding agency, (2) Disallow(that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance, • (3) Wholly or partly suspend or terminate the current award for the grantee's or sub-grantee's program, (4) Withhold further awards for the program,or, (5) Take other remedies that may be legally available. (b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the grantee or sub-grantee an opportunity for such hearing, appeal or other administrative proceeding to which the grantee or sub-grantee is entitles under any statute or regulation applicable to the action involved. (c) Effects of suspension and termination. Costs of grantee or sub-grantee resulting from obligations incurred by the grantee or sub-grantee during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently. Other grantee or sub-grantee costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: (1) The costs result from obligations which were properly incurred by the grantee or sub- grantee before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are non-cancelable, and, (2) The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect. (d) Relationship to Debarment and Suspension. The enforcement remedies identified in this section, including suspension and termination, do not preclude grantee or sub-grantee from being subject to "Debarment and Suspension" under EO 12549 (see § 85.35). 24 CFR 85.44 TERMINATION FOR CONVENIENCE Except as provided in § 85.43 awards may be terminated in whole or in part only as follows: (a) By the awarding agency with the consent of the grantee or sub-grantee in which case the two parties shall agree upon the termination conditions, including the effective date and in the case of partial termination, the portion,to be terminated, or (b) By the grantee or sub-grantee upon written notification to the awarding agency, setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 47t/-4 P-4.Ohmen-}- 1 STATE OF NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT NEIGHBORHOOD STABILIZATION PROGRAM (NSP) CONTRACT NO. 0910S23 CFDA#14.228 This contract is entered into between the State of Nebraska, Department of Economic Development ("Department"), and the City of Omaha, 1819 Farnam Street, Omaha, NE 68183 ("Grantee"), upon the date of signature by both parties. RECITALS: A. HERA. Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA), federal Public Law 110-289—Approved July 30, 2008, appropriated funds for emergency assistance for the redevelopment of abandoned and foreclosed upon homes and residential properties. B. CDBG. HERA provides that grants using HERA funding are to be considered as though such funds were Community Development Block Grant (CDBG) funds under Title I of the Housing and Community Development Act of 1974, 42 U.S.C. §5301 et seq., unless HERA specifically states otherwise. C. HUD and NSP. The State of Nebraska has received HERA funds from the U.S. Department of Housing and Urban Development (HUD), such funds to be distributed as grants to eligible grantees to undertake and carryout eligible projects under Title III of HERA, which HUD grant program is commonly referred to as the Neighborhood Stabilization Program (NSP). D. NSP Regulations. HUD has directed that except as provided in HUD regulatory notices concerning NSP, the statutory and regulatory provisions governing the regular CDBG program shall apply to use of HERA funds in NSP projects. HUD has published, in the Federal Register, notices concerning NSP dated October 6, 2008, and dated June 15, 2009, which is the so-called "Bridge" notice which applies retroactively to the October 6, 2008, notice. Complete copies of: (1) the portion of HERA referenced in ¶A above; (2) the October 2, 2008, HUD notice referenced in this¶D; and (3) the June 15, 2009, "Bridge" notice referenced in this ¶D; are attached to this contract and incorporated herein by this reference. The Grantee is expected to be familiar with, and adhere to, these specific HUD NSP regulations, as well as the regular CDBG program regulations, in carrying out the terms of this contract. E. NSP LMMI National Objective. The NSP activities must satisfy a modified (for purposes of NSP) CDBG national objective of principally benefitting low-,moderate-, and middle-income (LMMI) persons. LMMI (the term to be used in referring to the CDBG national objective of the NSP), is defined to mean households whose incomes do not exceed 120% of area median income. Only this LMMI national objective may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 to meet the further requirement that not less than 25% of funds the Department receives from HUD for NSP are used to benefit persons with household incomes not exceeding 50% of area median income. This task will be accomplished in specific contracts with specific grantees, and is not a general requirement of this contract unless specifically noted here: All funds under this contract must benefit persons with household incomes not exceeding 50% of area median income by providing housing that was abandoned or foreclosed upon residential property. F. Application and the "Project". The Grantee has submitted an application (Application) to the Department for NSP funds, which Application the Department has approved and the contents of which were relied upon by the Department in making its funding decision to award funds for this NSP project. The Application is incorporated herein by this reference, setting forth a project which will undertake NSP activities and which must satisfy the NSP national objective of principally benefitting LMMI persons, (the "Project"). The Project may be summarized as immediately follows. This is a summary only, not a comprehensive rendition of all that the project entails. Such detail of Project requirements must be gleaned from a combination of Grantee's Application and the Department's particular requirements as documented in contract negotiations and discussions with Grantee. Program A (Demolition and Construction of New Housing Program): The acquisition of 7 abandoned or foreclosed homes that are also vacant in the North Omaha Neighborhood Revitalization Stabilization Area that will be demolished and newly constructed. The Grantee should particularly note the provision in §4.18 of this contract which requires the Department's written approval prior to any demolition activity being conducted. AND Program B (Urban Homestead Rehabilitation and Resale Program): The acquisition of 13 abandoned or foreclosed homes that are also vacant that will be rehabilitated and made available for homeownership in the North and South Omaha Neighborhood Revitalization Stabilization Area. AND Program C (Rent to Own Rehabilitation Program): The acquisition and rehabilitation of 6 abandoned or foreclosed homes that are also vacant in the North Omaha Neighborhood Revitalization Stabilization Area. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 2 of 34 (+attached statutes and regulations comprising 34 additional pages) s. LMMI (the term to be used in referring to the CDBG national objective of the NSP), is defined to mean households whose incomes do not exceed 120% of area median income. Only this LMMI national objective may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 G. Definitions, Affordability Requirements, Housing Rehabilitation Standards, and Housing Counseling. Depending upon the nature of the Project, certain definitions, affordability requirements, and/or housing rehabilitation standards, all as adopted and approved in the NSP plan submitted by the Department and approved by HUD, will apply to the Project. These definitions, affordability requirements; and housing rehabilitation standards are set forth as Appendix pages following the signature page of this contract, and are incorporated herein by this reference. The Grantee must adhere to these definitions and requirements when applicable to the Project. The definitions and requirements applicable to the Project are: • Definition of blighted structure for NSP • Definition of affordable rents for NSP. • Description of continued affordability for NSP • Description of housing rehabilitation standards for NSP If the Project NSP activities involve assistance to homebuyers, then the Grantee is responsible for fulfilling the HUD requirement that such homebuyers must receive at least eight (8) hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage loan. In the circumstance where such a HUD-approved housing counseling agency is not within the Grantee's jurisdiction, then the required homebuyer counseling may be obtained from a REACH Affiliate Organization (REACH = Readiness Education Awareness Collaborative for Homebuyer and Homeowners Education). This substitute use of REACH affiliates for homebuyer counseling has been specifically approved by HUD at the Department's request, for the Department's NSP projects, including this Project. H. NSP Housing Units. The Project includes assisting housing units, as such units are described, and as the project requirements are prescribed, in ¶G and in this ¶H and in the Table of Project Requirements for NSP Project found below, which Table is incorporated within this paragraph by this reference. The percentage references in the table below, e.g., 120%, include the implied phrase "at or below" prior to the % and the implied phrase "of the area median income per the most recent HUD income limits" after the %. • fa. A,.' 3 S�P 9 d�\is\u Total number of units in the Project--* 7 units Total number of NSP-assisted units—, 7 units Number of NSP units 120%—> 0 units Number of NSP units 50%—+ 7 units AND CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 3 of 34 (+attached statutes and regulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 0 y� gj3�? b '„ar a3. l , 3+Z Total number of units in the Project—> 13 units Total number of NSP-assisted units—* 13 units Number of NSP units 120%-- 0 units Number of NSP units 50%-4 13 units AND s-^':0 r,„�D�`�, d Table 3 `�ect eui '11Fo S ':;e 7 ec2t 5 F iaer e; S3 vg 'W �4��if�j �'(Tiq (� ]j, emu[ i ,*(�`�p� , `� � y � c�'F'�7 'a ,y; is' —'�^.>7 ,' f Y: it,+o ns .�'i> z ..�' .F �.rti��A_3 z q gyLF�.:s Total number of units in the Project—> 6 units Total number of NSP-assisted units---* 6 units Number of NSP units 120%—i 0 units Number of NSP units 50%—> 6 units AGREEMENT: Premised on the Recitals above, and in consideration of the mutual promises and understandings of the parties set forth below, the parties agree as follows: PART I: TERMS AND CONDITIONS. §1.01 Amount, Use, and Payment of NSP Funds. The total amount of NSP funds paid by the Department to the Grantee for allowable expenses incurred will not exceed $4,160,000. Of that amount, approved administrative and audit expenses will not exceed $160,000. The NSP grant funds must be used to fund the Project as detailed in the Application. Part V (Compliance with Applicable Laws and Regulations) of this contract incorporates, as being applicable to this contract, all of the Department's administrative requirements which are contained in the Nebraska Community Development Block Grant Program Administration Manual. Those administrative requirements contain many restrictions governing the receipt of CDBG funds from the Department. These requirements also apply to NSP funds from the Department. Requests by the Grantee for reimbursement of project administration expenses will not be paid by the Department unless the CDBG Certified Administrator who was identified = in the Application, and thus was approved by the Department as part of the approval of the Application, is available to conduct administration of the Project, at the time of each request for reimbursement of administration expenses, with this requirement applicable at all times through project completion (including final project reports). Any change in this identified CDBG Certified Administrator for this Project, in order to be recognized by the Department, must have the written approval of the Department. As a CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 4 of 34 (+ attached statutes and regulations comprising 34 additional pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 cross-reference, note that §2.08 requires a CDBG Certified Administrator to achieve the initial Release of Funds for the Project. To request payment of allowable expenses, the Grantee must submit a request for payment to the Department, in the manner and form prescribed from time to time by the Department, mailed to the Community and Rural Development Division, Department of Economic Development, 301 Centennial Mall South, P.O. Box 94666, Lincoln, Nebraska 68509-4666. §1.02 Time of Performance. (a) The period covered under this contract will be 36 months from August 13, 2009. The termination date of this contract will be August 12, 2012. All of the activities and services required of the Grantee, except for administration and audit, will be completed on or before this date. (b) 03/19/13 absolute expenditure deadline. HUD has imposed upon the Department an expenditure deadline of March 19, 2013, (four years after the Department's receipt of the NSP award from HUD). Any funds not expended by the Department by March 19, 2013, will be recaptured from the Department by HUD. The Grantee is, by this reference, notified of this requirement, the obvious consequence of which is that Grantee must appropriately obligate and request all NSP funds from the Department for the Project which is the subject of this contract by no later than the March 19, 2013, deadline, notwithstanding any contractual or award timelines which might (even by extensions) exceed such deadline. (c) 07/31/10 obligation deadline. The Grantee must provide documentation satisfactory to the Department, prior to July 31, 2010, that all NSP activity funds are "obligated", as that term is used and defined in the NSP Regulations. Grantee's failure to adhere to this requirement may (at the Department's option) result in Grantee's award hereunder being deobligated with respect to all unexpended funds. (d) 03/31/10 interim performance measurement deadline. The Grantee must provide documentation satisfactory to the Department, prior to March 31, 2010, of successful completion of the following interim performance measurement requirement(s): 1. Program A: The Grantee will have $1,000,000 under contract for demolition and new construction activities. 2. Program B: The Grantee will have $1,000,000 under contract for acquisition and rehabilitation activities. 3. Program C: The Grantee will have $1,650,000 under contract for acquisition and rehabilitation activities. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 5 of 34 (+ attached statutes and regulations comprising 34 additional pages) onal pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • Grantee's failure to adhere to the interim performance measurement requirement(s) may (at the Department's option) result in Grantee's award hereunder being deobligated with respect to all unexpended funds. §1.03 Incorporation of RECITALS Paragraphs as Agreed Terms of Contract. All provisions of paragraphs A, B, C, D, E, F, G and H of the RECITALS above are incorporated as agreed provisions of the contract. §1.04 National Objective Requirement. Failure by the Grantee to fulfill the national objective requirement for NSP funds, as noted in ¶E of the RECITALS, will result in grant funds being disallowed and required to be returned to the Department. §1.05 Program Income. . Program income is regulated by the provisions of the NSP Regulations. The text of those Regulations should be consulted for definitions and for other guidance concerning program income. PART II: SPECIAL CONDITIONS FOR RELEASE OF FUNDS. Funding of the amount stipulated in §1.01 of this contract will not be released to the Grantee by the Department until the following special conditions for release of funds are met. These special conditions must be satisfactorily completed no later than October 12, 2009, which is two calendar months after the contract inception date. The Department reserves the right to cancel the contract if these special conditions are not met within this specified time frame. §2.01 Grantee Information Sheet. • Submission and completion of the Grantee Information Sheet. §2.02 Environmental Review. Documentation evidencing the Grantee's completion of its responsibilities for environmental review and decision making pertaining to the Program, and its compliance with the National Environmental Policy Act of 1969 (NEPA), other provisions of Federal law as specified in 24 C.F.R. Part 58, which furthers the purposes of NEPA. §2.03 Authorization to Request Funds Form. Completion by the appropriate official of the Grantee, and submission to the Department, of the Department's Authorization to Request Funds form. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 6 of 34 (+ attached statutes and regulations comprising 34 additional pages) new construction activities. 2. Program B: The Grantee will have $1,000,000 under contract for acquisition and rehabilitation activities. 3. Program C: The Grantee will have $1,650,000 under contract for acquisition and rehabilitation activities. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 5 of 34 (+ attached statutes and regulations comprising 34 additional pages) onal pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 §2.04 Financial Management. Documentation evidencing completion of all financial management system requirements and execution of the Financial Management Certification form prescribed by the Department. §2.05 Procurement Standards. Documentation evidencing adoption of procurement standards equivalent to those established in 24 C.F.R. §85.36 and 24 C.F.R. §570.489. §2.06 Excessive Force Certification. Documentation that the Grantee has adopted a policy to prohibit the use of excessive force by local law enforcement agencies against any individual engaged in nonviolent civil rights demonstrations. §2.07 Fair Housing. Documentation that the Grantee has specifically provided a description of the actions it will take during the course of the grant to fulfill the requirements to affirmatively further fair housing. §2.08 CDBG Certified Administrator Required. Documentation must be submitted to the Department identifying the CDBG Certified Administrator the Grantee will use for the project. The Department's Nebraska Community Development Block Grant Program Administration Manual contains details about the certification process. In addition to satisfying this special condition as a prerequisite for receiving a Notice of Release of Funds, Grantee should note as a cross-reference the contract provision in §1.01 regarding the need for maintaining a Department-approved CDBG Certified Administrator in order to be paid for Project administrative costs. §2.09 Other Special Conditions. Program A: Grantee's program guidelines must be approved, in writing, as acceptable to the Department, by the Department's Program Representative for Grantee's program. Program B: Grantee's program guidelines must be approved, in writing, as acceptable to the Department, by the Department's Program Representative for Grantee's program. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 7 of 34 (+attached statutes and regulations comprising 34 additional pages) ent, of the Department's Authorization to Request Funds form. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 6 of 34 (+ attached statutes and regulations comprising 34 additional pages) new construction activities. 2. Program B: The Grantee will have $1,000,000 under contract for acquisition and rehabilitation activities. 3. Program C: The Grantee will have $1,650,000 under contract for acquisition and rehabilitation activities. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 5 of 34 (+ attached statutes and regulations comprising 34 additional pages) onal pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Program C: Grantee's Tenant Selection Process, Sample Lease Agreement and Transition Plan must be approved, in writing, as acceptable to the Department, by the Department's Program Representative for Grantee's program. PART Ill: SOURCES AND USES OF FUNDS. §3.01 Sources and Uses of Funds. SOURCES—► NSP OTHER TOTAL USES (Activities) . 030 Clearance/Demolition $60,000 $0 $60,000 541 SF Housing Rental Rehab. $1,650,000 $0 $1,650,000 542 SF Hsg. New Const. $940,000 $0 $940,000 Homeownership 531 Hsg. $1,350,000 $0 $1,350,000 Purchase/Rehab/Resale Total Project Cost $4,000,000 l $0 $4,000,000 181 General Administration $160,000 $0 $160,000 Total Project + General Admin. $4,160,000 $0 $4,160,000 The Sources and Uses of Funds table above reflects: • The anticipated total costs of the NSP-assisted project. • The NSP-assisted activities being funded. • The sources and amounts of other matching funds required for each activity. • The maximum authorized NSP funds for each NSP-assisted activity. • The proportionality (derived by computation, not expressly shown) of funding from all funding sources, for each activity and for the project in total. Disbursement of NSP funds will be made only on a pro rata basis with all other funding sources, for each activity and for the project in total. NSP funds will not be the first funds invested in the project—but rather—NSP funds will flow into the project in proportion to all other funding sources. Grantee shall adhere to the limitations and matching proportionality requirements reflected in the Sources and Uses of Funds table and the expressions of what such table reflects as explained in the bullet-points immediately above. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 8 of 34 (+ attached statutes and regulations comprising 34 additional pages) 0910S23—Page 7 of 34 (+attached statutes and regulations comprising 34 additional pages) ent, of the Department's Authorization to Request Funds form. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 6 of 34 (+ attached statutes and regulations comprising 34 additional pages) new construction activities. 2. Program B: The Grantee will have $1,000,000 under contract for acquisition and rehabilitation activities. 3. Program C: The Grantee will have $1,650,000 under contract for acquisition and rehabilitation activities. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 5 of 34 (+ attached statutes and regulations comprising 34 additional pages) onal pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 PART IV: OTHER CONTRACTUAL CONDITIONS. • §4.01 Legal Authority and Acceptance of Environmental Review Responsibility. By signing this contract, the Grantee, if it is a unit of general local government, certifies that it possesses legal authority to accept NSP funds, and to carry out the Project described in this contract; and that the Grantee's chief elected official: (a) Consents to assume the status of responsible Federal official and the responsibilities for environmental review and decision making under the National Environmental Policy Act of 1969 (NEPA) and other provisions of Federal law as specified in 24 C.F.R. Part 58 which further the purposes of NEPA; and, (b) Is authorized and consents on behalf of the Grantee that they accept the jurisdiction of the Federal courts for the purpose of enforcement of their responsibilities as such responsible Federal official. §4.02 Designation of Officials to Execute Contract and Amendments. The Director of the Department or their designee is the official authorized to execute this contract and any amendments to this contract, on behalf of the Department. The Chief Elected Official (in the case a Grantee which is a unit of general local government); or a duly authorized officer (in the case of a Grantee which is not a governmental entity) is the official authorized to execute this contract and any amendments to this contract, on behalf of the Grantee. The Grantee or the Department may request amendments to this contract. Amendments will not take effect until mutually agreed to in writing by both parties. Grantee should note that the Department is not contemplating being favorably disposed to allowing amendments/extensions of the contract's termination date. §4.03 Grantee Compliance with NSP Regulations, CDBG Regulations Generally, and Particularly Regarding Uniform Administrative Requirements. The Grantee will comply with the NSP Regulations, with CDBG Regulations generally at 24 C.F.R. Part 570, including particularly the Uniform Administrative Requirements set forth in 24 C.F.R. §570.502, or any reasonably equivalent procedures and requirements that the Department may prescribe. i CDBG—NSP 1(rev 08/20/09)-City of Omaha-091 OS23—Page 9 of 34 (+ attached statutes and regulations comprising 34 additional pages) ilitation activities. 3. Program C: The Grantee will have $1,650,000 under contract for acquisition and rehabilitation activities. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 5 of 34 (+ attached statutes and regulations comprising 34 additional pages) onal pages) ulations comprising 34 additional pages) may be used for the NSP program activities. The Department is tasked by HERA and by HUD CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 1 of 34 (+ attached statutes and regulations comprising 34 additional pages) on to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • §4.04 Record Keeping. The Grantee agrees to keep such records as specified in 24 C.F.R. §570.506, Records P to be Maintained, and any other records as the Department may reasonably require. The Grantee agrees to keep such records so as to allow the Department to perform a 24 C.F.R. §570.492, State's review and audits. All records pertinent to this grant and work undertaken as part of the Project, will be retained by the Grantee for a period of ten (10) years after notification by the Department that the grant has been closed. If any claim, litigation, or audit is initiated before the expiration of the ten-year period, the records must be retained until all claims, litigation, or audits have been resolved. The Department and duly authorized officials of the state and federal government will have full access to, and the right to examine, audit, excerpt and/or transcribe, any of the Grantee's records pertaining to all matters covered by this contract. §4.05 Reports. The Grantee will submit reports to the Department, in such form and with such frequency, as the Department may prescribe, pertaining to the activities undertaken as a result of this contract. The Grantee will also be required to submit a final performance and financial report, in such form and within such times as the Department may prescribe, at the occasion of grant closeout. Additional Reporting Requirements Resulting from NSP funding. Because of the NSP funding of this Project, the Department has additional, and more frequent, reporting requirements imposed upon it by HUD than is the case in the usual CDBG-assisted project. Consequently, the Grantee will be required to adhere to these additional reporting requirements, in order to provide the information to the Department which the Department must report to HUD. HUD reserves the right to restrict or withhold access to NSP funds in the event of delinquent, incomplete, or inaccurate reporting to HUD by the Department. Any such inability of the Department to access NSP funds from HUD, when the inability arises from the Grantee's reporting deficiencies to the Department, will result in the consequence to the Grantee that Project funds will be withheld from access by the Grantee. As a basic deadline, NSP requires calendar quarter reporting of various aspects of the Project. The information for a calendar quarter must be provided by the Department to HUD within 30 calendar days of the end of the calendar quarter. Grantee quarter rtin informationtheDepartment hin is required to provide the calendarreporting t to within 10 calendar days of the end of the calendar quarter. The Grantee is hereby acknowledging and agreeing that the Grantee's Project reporting duties to the °3 Department will be those as are required under both the regular CDBG program as well as those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 §4.06 Audits. Audits of this grant will be conducted in accordance with the Single Audit Act of 1984, as amended, and the Office of Management and Budget (OMB) Circular A-133. Generally Accepted Government Auditing Standards (GAGAS) must be followed. If the Grantee meets the requirement for a Program-specific audit as defined in OMB Circular A-133, Department approval for such a Program-specific audit is required and audit procedures established by the Department will be followed. Audit costs are an allowable general administration cost subject to limitations established by the Act and the Department. §4.07 Conflict of Interest. The Grantee will comply with the conflict of interest prohibitions set forth for the CDBG program at 24 C.F.R. §570.489. In the event prohibited conflicts of interest arise, exceptions to the prohibition may be granted, on a case-by-case basis, by the Department. The procedures governing such exception requests are set forth in the Department's CDBG Administration Manual. §4.08 Applicability to Subrecipients and Contractors. The provisions of the contract will be made binding on any subrecipient or contractor of the Grantee, and the Grantee will remain fully obligated under the provisions of this contract. §4.09 Waivers; and Assignment of Interest. No conditions or provisions of this contract can be waived unless approved by the Department in writing. The Grantee will not assign or transfer any interest in this contract to any other party without the written consent of the Department. §4.10 Non-Waiver of Rights. The Department's failure to insist upon the strict performance of any provision of this contract, or failure to exercise any right based upon breach, will not constitute a waiver of any rights under this contract. §4.11 Severability. If any provision of this contract, or its application to any person or circumstances, is held invalid by any court of competent jurisdiction, the invalidity will not affect other provisions of this contract. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 11 of 34 (+ attached statutes and regulations comprising 34 additional pages) onsequence to the Grantee that Project funds will be withheld from access by the Grantee. As a basic deadline, NSP requires calendar quarter reporting of various aspects of the Project. The information for a calendar quarter must be provided by the Department to HUD within 30 calendar days of the end of the calendar quarter. Grantee quarter rtin informationtheDepartment hin is required to provide the calendarreporting t to within 10 calendar days of the end of the calendar quarter. The Grantee is hereby acknowledging and agreeing that the Grantee's Project reporting duties to the °3 Department will be those as are required under both the regular CDBG program as well as those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 §4.12 Termination by Mutual Agreement. This contract may be terminated in whole or in part, prior to the completion of contract project activities, when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds. The parties must agree on the termination conditions, including effective date and the portion to be terminated. The Grantee will not incur new obligations for the terminated portion after the effective date, and will cancel as many outstanding obligations as possible. The Department will make funds available to the Grantee to pay for allowable expenses incurred before the effective date of termination. §4.13 Termination for Cause. In the event of a default or violation of the terms of this contract by the Grantee or failure to use the grant for only those purposes set forth, the Department may take the following actions (which are additional to other default remedies specified elsewhere in this contract): (a) Suspension. After notice to the Grantee, suspend the contract and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate. (b) Termination. Terminate the contract in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the terms and conditions of the contract. The Department will promptly notify the Grantee in writing of the determination and the reasons for the termination, together with the effective date. Payments made to the Grantee or recoveries by the Department under contracts terminated for cause will be in accord with the legal rights and liabilities of the parties. Payments and recoveries may include, but are not limited to, payments allowed for costs determined to be in compliance with the terms of this contract up to the date of termination. The Grantee will return to the Department all unencumbered funds. Further, any costs previously paid by the Department which are subsequently determined to be unallowable through audit and closeout procedures may be recovered from present grant funds or deducted from future grants. §4.14 Termination Due to Loss of Funds. This contract will terminate in full or in part, at the discretion of the Department, in the event the Department suffers a loss of funding or termination of the federal funds which permit it to fund this grant. In the event the Department suffers such a loss of funding, the Department will give the Grantee written notice which will set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 12 of 34 (+ attached statutes and regulations comprising 34 additional pages) s those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • §4.15 State of Nebraska Non-Liability/Hold Harmless. The Grantee will hold the State of Nebraska and the Department harmless from any and all claims, demands, and actions based upon or arising out of any services performed by the Grantee itself, or by their officials, officers, employees, agents, or associates under this contract. §4.16 Entire Agreement, Binding Effect, and Counterparts. This instrument, along with any attachments, the approved grant Application, and those items incorporated by reference, contain the entire agreement between the parties. Any statements, inducements, or promises not contained therein will not be binding upon the parties. This agreement will be binding upon, and will inure to the benefit of, the successors, assigns, and legal representatives of the parties. This agreement, or any amendment of this agreement, may be signed in any number of counterparts, each of which will be an original, but all of which taken together will constitute one agreement (or amendment, as the case may be). §4.17 Governing Law. This agreement shall be governed by; construed according to the laws and regulations of; and subject to the jurisdiction of; the State of Nebraska. §4.18 Demolition Activity Written Pre-approval Requirement. Since demolition is a part of the Project, the Department's written approval must be obtained by the Grantee prior to any demolition activity being undertaken by the Grantee. PART V: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. The Grantee agrees the NSP and the CDBG program, and with the provisions of the Department's CDBG Application Guidelines applicable to the Project, and with all • federal (and state) laws, regulations, and executive orders applicable to the NSP-assisted project, including, but not limited to: • National Environmental Policy Act of 1969 and regulations at 24 C.F.R. Part 58. • The Davis-Bacon Act (and related acts). _ • Section 3 of the Housing and Urban Development Act of 1968. • The Architectural Barriers Act of 1968 and the Americans with Disabilities Act. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 13 of 34 (+attached statutes and regulations comprising 34 additional pages) re grants. §4.14 Termination Due to Loss of Funds. This contract will terminate in full or in part, at the discretion of the Department, in the event the Department suffers a loss of funding or termination of the federal funds which permit it to fund this grant. In the event the Department suffers such a loss of funding, the Department will give the Grantee written notice which will set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 12 of 34 (+ attached statutes and regulations comprising 34 additional pages) s those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 ACCEPTANCE PROVISIONS. The parties acknowledge they have read and understand this contract and agree to its provisions, and that it will be effective on the date when both parties have signed. NEBRASKA DEPARTMENT OF GRANTEE- City of Omaha ECONOM DEVELOPMENT By: � i' By: (Director or Designee) (Signs a of Authorized Official) G- Nis 7R7 I3,.(Pc r im Suttle, Mayor T ed or Printed N e/Title (Typed or Printed Name/Title) ) ( YP ) -.-4;140drY)-)71,14- 41/ 0 September 9,2009 (Dat (Date) 47-6006304 (Federal Identification Number) APPENDIX The Appendix is found on several pages following, and contains: • Definition of blighted structure for NSP • Definition of affordable rents for NSP • Description of continued affordability requirements applicable to NSP housing • Description of housing rehabilitation standards for NSP • Title Ill of Division B of the Housing and Economic Recovery Act of 2008 (HERA), federal Public Law 110-289—Approved July 30, 2008 • October 2, 2008, HUD Regulatory notice regarding NSP • June 15, 2009, HUD Regulatory "Bridge" notice regarding NSP CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 14 of 34 (+ attached statutes and regulations comprising 34 additional pages) y the Grantee prior to any demolition activity being undertaken by the Grantee. PART V: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. The Grantee agrees the NSP and the CDBG program, and with the provisions of the Department's CDBG Application Guidelines applicable to the Project, and with all • federal (and state) laws, regulations, and executive orders applicable to the NSP-assisted project, including, but not limited to: • National Environmental Policy Act of 1969 and regulations at 24 C.F.R. Part 58. • The Davis-Bacon Act (and related acts). _ • Section 3 of the Housing and Urban Development Act of 1968. • The Architectural Barriers Act of 1968 and the Americans with Disabilities Act. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 13 of 34 (+attached statutes and regulations comprising 34 additional pages) re grants. §4.14 Termination Due to Loss of Funds. This contract will terminate in full or in part, at the discretion of the Department, in the event the Department suffers a loss of funding or termination of the federal funds which permit it to fund this grant. In the event the Department suffers such a loss of funding, the Department will give the Grantee written notice which will set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 12 of 34 (+ attached statutes and regulations comprising 34 additional pages) s those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • Nebraska Department of Economic Development (DED) Community Development Block Grant Neighborhood Stabilization Program 1 (CDBG NSP1) Definition of Blighted Structure The State of Nebraska definition of blighted structure for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows: Blighted structure includes, but is not limited to, any dwelling, garage, outbuilding, warehouse, commercial building, or any other structure or part of a structure, which: (a) because of the effects of fire, wind, flood, or other natural disaster; (b) because of physical deterioration; or, (c) because of demolition, or partial demolition, not carried out to completion within a reasonable period of time; is no longer habitable as a dwelling or, in the case of a non-dwelling structure, is no longer useful for the purpose for which the non-dwelling structure was intended, and which has been designated by a State CDBG-recipient unit of local government or non-profit organization as detrimental to the public health or safety in its present condition and use. Source: Substantial Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSP1. • CDBG—NSP 1(rev 08/20109)—City of Omaha-091OS23—Page 15 of 34 (+ attached statutes and regulations comprising 34 additional pages) Grantee prior to any demolition activity being undertaken by the Grantee. PART V: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. The Grantee agrees the NSP and the CDBG program, and with the provisions of the Department's CDBG Application Guidelines applicable to the Project, and with all • federal (and state) laws, regulations, and executive orders applicable to the NSP-assisted project, including, but not limited to: • National Environmental Policy Act of 1969 and regulations at 24 C.F.R. Part 58. • The Davis-Bacon Act (and related acts). _ • Section 3 of the Housing and Urban Development Act of 1968. • The Architectural Barriers Act of 1968 and the Americans with Disabilities Act. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 13 of 34 (+attached statutes and regulations comprising 34 additional pages) re grants. §4.14 Termination Due to Loss of Funds. This contract will terminate in full or in part, at the discretion of the Department, in the event the Department suffers a loss of funding or termination of the federal funds which permit it to fund this grant. In the event the Department suffers such a loss of funding, the Department will give the Grantee written notice which will set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 12 of 34 (+ attached statutes and regulations comprising 34 additional pages) s those additional reporting requirements imposed as a result of NSP funding. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23---Page 10 of 34 (+attached statutes and regulations comprising 34 additional pages) y terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Nebraska Department of Economic Development (DED) Community Development Block Grant Neighborhood Stabilization Program 1 (CDBG NSP1) Definition of Affordable Rents The State of Nebraska definition of affordable rents for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows: Affordable Rents must meet the following qualifications: a. Rent Limitation: NSP provides the following maximum NSP rent limits. The maximum NSP rents are the lesser of: 1. The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or 2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. b. Initial rent schedule and utility allowance: 1. The participating jurisdiction must establish maximum monthly allowances for utilities and services (excluding telephone). The participating jurisdiction must review and approve rents proposed by the owner for units subject to the maximum rent limitations in paragraphs (a) or(b) of this section. For all units subject to the maximum rent limitations in paragraphs (a) or(b) of this section for which the tenant is paying utilities and services, the participating jurisdiction must ensure that the rents do not exceed the maximum rent minus the monthly allowances for utilities and services. c. Subsequent rents during the affordability period: 1. The maximum HOME rent limits are recalculated on a periodic basis after HUD determines fair market rents and median incomes. HUD then provides the new maximum HOME rent limits to participating jurisdictions. Regardless of changes in fair market rents and in median income over time, the NSP rents for a project are not required to be lower than the HOME rent limits for the project in effect at the time of project commitment. 2. The Nebraska Department of Economic Development(DED) NSP grantee (subrecipient) must provide project owners with information on updated NSP rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits in paragraph (a) of this section) in accordance with the written agreement between the DED NSP grantee and the owner. Owners must annually provide the DED with information on rents and occupancy of NSP-assisted units to demonstrate compliance with this section. 3. Any increase in rents for NSP-assisted units is subject to the provisions of outstanding leases, and in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents. This definition is an adoption of the HOME program standards at 24 CFR 92.252 (a), (c), and (f). Source: Substantial Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSPI. • CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 16 of 34 (+ attached statutes and regulations comprising 34 additional pages) (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Nebraska Department of Economic Development (DED) Community Development Block Grant Neighborhood Stabilization Program 1 (CDBG NSP1) Description of Continued Affordability The State of Nebraska description of how the Nebraska Department of Economic Development (DED) will ensure continued affordability for purposes of implementing the Community Development Block.Grant Neighborhood Stabilization Program is as follows: NSP-assisted housing must meet the following affordability requirements: Rental Housing a. Periods of Affordability. The NSP-assisted units must meet°the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership. They must be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by the Nebraska Department of Economic Development(DED), except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The DED NSP grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Rental Housing Activity Minimum period of affordability in years Rehabilitation or acquisition of existing 5 housing per unit amount of NSP funds: Under$15,000 $15,000 to $40,000 10 Over$40,000 or rehabilitation involving 15 refinancing New Construction or acquisition of newly 20 constructed housing Homeownership a. Acquisition with or without rehabilitation. Housing that is for acquisition by a family must meet the affordability requirements of this paragraph (a). 1. The housing must be single-family housing. 2. The housing must be modest housing as follows: i. In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that does not exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)(iii) of this section. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 17 of 34 (+ attached statutes and regulations comprising 34 additional pages) an 30 days prior written notice before implementing any increase in rents. This definition is an adoption of the HOME program standards at 24 CFR 92.252 (a), (c), and (f). Source: Substantial Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSPI. • CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 16 of 34 (+ attached statutes and regulations comprising 34 additional pages) (a) of this section. Rev. 5/7/08 ies and possessions. However,the term "foreign travel"for a non-profit organization located in a foreign country means travel outside that country. 52. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph 51. ATTACHMENT C • Circular No. A-122 • • NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 ii. In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section. iii. If a DED NSP grantee intends to use NSP funds for homebuyer assistance or for rehabilitation of owner-occupied single-family properties, the DED NSP grantee must use the Single Family Mortgage Limits under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) (which may be obtained from the HUD Field Office). 3. The housing must be acquired by a homebuyer whose family qualifies as a income qualified family and the housing must be the principal residence of the family throughout the period described in paragraph (a)(4) of this section. 4. Periods of affordability. The NSP-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of NSP funds and the affordability period that they trigger are described more fully in paragraphs (a)(5)(i) (resale) and (ii) (recapture) of this section. Homeownership assistance NSP Minimum period of affordability in years amount per-unit Under$15,000 5 $15,000 to $40,000 10 Over$40,000 15 5. Resale and recapture. To ensure affordability, the DED NSP-grantee must impose either resale or recapture requirements, at its option. The DED NSP-grantee must establish the resale or recapture requirements that comply with the standards of this section and set forth the requirements in its program guidelines. DED must determine that they are appropriate. i. Resale. Resale requirements must ensure, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, that the housing is made available for subsequent purchase only to a buyer who is an income-qualified family and will use the property as its principal residence. The resale requirement must also ensure that the price at resale provides the original NSP- assisted owner a fair return on investment(including the homeowner's investment and any capital improvement) and ensure that the housing will remain affordable to a reasonable range of income eligible homebuyers as defined by the CDBG NSP. The period of affordability is based on the total amount of NSP funds invested in the housing. A. Except as provided in paragraph (a)(5)(i)(B) of this section, deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose the resale requirements. The affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The DED NSP-grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure • to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, obtains an ownership interest in the housing. B. Certain housing may be presumed to meet the resale restrictions (i.e., the housing will be available and affordable to a reasonable range of income-eligible homebuyers; an income-eligible homebuyers will occupy the housing as the CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 18 of 34 (+ attached statutes and regulations comprising 34 additional pages) ONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI), Charleston, South Carolina • Aerospace Corporation, El Segundo, California • • American Institutes of Research (AIR),Washington D.C. • Argonne National Laboratory, Chicago, Illinois • Atomic Casualty Commission, Washington, D.C. • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 family's principal residence; and the original owner will be afforded a fair return on investment) during the period of affordability without the imposition of enforcement mechanisms by the DED NSP-grantee. The presumption must be based upon a market analysis of the neighborhood in which the housing is located. The market analysis must include an evaluation of the location and characteristics of the housing and residents in the neighborhood (e.g., sale prices, age and amenities of the housing stock, incomes of residents, percentage of owner-occupants) in relation to housing and incomes in the housing market area. An analysis of the current and projected incomes of neighborhood residents for an average period of affordability for homebuyers in the neighborhood must support the conclusion that a reasonable range of low-income families will continue to qualify for mortgage financing. For example, an analysis shows that the housing is modestly priced within the housing market area and that families with incomes of 65% to 120% of area median can afford monthly payments under average FHA terms without other government assistance and housing will remain affordable at least during the next five to seven years compared to other housing in the market area; the size and amenities of the housing are modest and substantial rehabilitation will not significantly increase the market value; the neighborhood has housing that is not currently owned by the occupants, but the DED-NSP grantee is encouraging homeownership in the neighborhood by providing homeownership assistance and by making improvements to the streets, sidewalks, and other public facilities and services. If a DED NSP-grantee in preparing a neighborhood revitalization strategy under 24 CFR Part 91.215(e)(2) of its consolidated plan or Empowerment Zone or Enterprise Community application under 24 CFR part 597 has incorporated the type of market data described above, that submission may serve as the required analysis under this section. If the DED NSP-grantee continues to provide homeownership assistance for housing in the neighborhood, it must periodically update the market analysis to verify the original presumption of continued affordability. ii. Recapture. Recapture provisions must ensure that the DED NSP-grantee recoups all or a portion of the NSP assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The DED NSP-grantee may structure its recapture provisions based on its program design and market conditions. The period of affordability is based upon the total amount of NSP funds subject to recapture described in paragraph (a)(5)(ii)(A)(5) of this section. A. The following options for recapture requirements are acceptable to DED. The DED NSP-grantee may adopt, modify or develop its own recapture requirements for DED approval. In establishing its recapture requirements, the DED NSP- grantee is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP investment due, the DED NSP-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 3. Shared net proceeds. If the net proceeds are not sufficient to recapture the full NSP investment (or a reduced amount as provided for in paragraph (a)(5)(ii)(A)(2) of this section) plus enable the homeowner to recover the amount of the homeowner's downpayment and any capital improvement investment made by the owner since purchase, the DED NSP-grantee may share the net proceeds. The net proceeds are the sales price minus loan repayment (other than NSP funds) and closing costs. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP Investment/NSP X Net Proceeds = NSP amount to Investment + homeowner be recaptured investment Homeowner Investment X Net Proceeds = Amount to /NSP Investment+ homeowner homeowner investment 4. Owner investment returned first. The DED NSP-grantee may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP investment. 5. Amount subject to recapture. The NSP investment that is subject to recapture is based on the amount of NSP assistance that enabled the homebuyer to buy the dwelling unit. This includes any NSP assistance that reduced the purchase.price from fair market value to an affordable price, but excludes the amount between the cost of producing the unit and the market value of the property(i.e., the development subsidy). The recaptured funds must be used to carry out NSP-eligible activities in accordance with the NSP requirements. If the NSP assistance is only used for the development subsidy and therefore not subject to recapture, the resale option must be used. 6. Special considerations for single-family properties with more than one unit. If the NSP funds are only used to assist an income qualified homebuyer to acquire one unit in single-family housingcontaining 9 more than one unit and the assisted unit will be the principal residence of the homebuyer, the affordability requirements of this section apply only to the assisted unit. If NSP funds are also used to assist the income qualified homebuyer to acquire one or more of the rental units in the single-family housing, the affordability requirements of Rental Housing apply to assisted rental units, except that the DED NSP- grantee may impose resale or recapture restrictions on all assisted units (owner-occupied and rental units) in the single family housing. If resale restrictions are used, the affordability requirements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 targeting or affordability provisions of homeownership housing affordability requirements.) 7. Lease-purchase. NSP funds may be used to assist homebuyers through lease-purchase programs for existing housing and for housing to be constructed. The housing must be purchased by a homebuyer within 36 months of signing the lease-purchase agreement. The homebuyer must be an income-qualified family at the time the lease- purchase agreement is signed. If NSP funds are used to acquire housing that will be resold to a homebuyer through a lease-purchase program, the NSP affordability requirements for rental housing shall apply if the housing is not transferred to a homebuyer within forty-two months after project completion. 8. Contract to purchase. If NSP funds are used to assist a homebuyer who has entered into a contract to purchase housing to be constructed, the homebuyer must be an income-qualified family at the time the contract is signed. b. Ownership interest. The ownership in the housing assisted under this section must meet the following definition of "homeownership": 1. homeownership means ownership in fee simple title or a 99 year leasehold interest in a. one-to four-unit dwelling or in a condominium unit, or equivalent form of ownership approved by DED. The ownership interest may be subject only to the restrictions on resale required under homeownership (a) ; mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the DED NSP-grantee; or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest. For purposes of the insular areas, homeownership includes leases of 40 years or more. For purposes of housing located on trust or restricted Indian lands, homeownership includes leases of 50 years. The DED NSP- grantee must determine whether or not ownership or membership in a cooperative or mutual housing project constitutes homeownership under State law. c. New construction without acquisition. Newly constructed housing that is built on property currently owned by a family which will occupy the housing upon completion, qualifies as affordable housing if it meets the requirements under paragraph (a) of this section. This description is an adoption of the HOME program standards applicable provisions at 24 CFR 92.252 (e) and 92.254. Source: Substantial Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSP1. • CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 Nebraska Department of Economic Development (DED) Community Development Block Grant Neighborhood Stabilization Program 1 (CDBG NSP1) Description of Housing Rehabilitation Standards The State of Nebraska description of housing rehabilitation standards that will apply to NSP-assisted activities for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows: NSP-assisted housing activities including rehabilitation of housing must meet the following housing rehabilitation standards: (1) All housing units rehabilitated as an NSP-assisted housing activity must meet local codes that apply; and (2) All housing units rehabilitated as an NSP-assisted housing activity must meet the Nebraska Department of Economic Development (DED) Rehabilitation Standards required for the Nebraska HOME program, Nebraska CDBG program, and Nebraska Affordable Housing Trust Fund. The current DED Rehabilitation Standards are described below. MINIMUM STANDARDS FOR REHABILITATION Nebraska Department of Economic Development A. MINIMUM STANDARDS FOR BASIC EQUIPMENT AND FACILITIES 1. KITCHENS — Every dwelling shall have a kitchen room or kitchenette equipped with a kitchen sink, properly connected to both hot and cold running water lines, under pressure, and in working order. 2. TOILET ROOM REQUIRED — Every dwelling unit, except as otherwise permitted for rooming houses, shall contain a room that is equipped with a flush water closet and properly installed lavatory. Said lavatory shall be properly connected to both hot and cold running water, under pressure, and shall be in working order. Fixtures shall be properly installed, free of hazards, leaks and defects, and in functional and sanitary order. Said flush water closet shall be properly connected to the water supply, under pressure, and shall be in working order. 3. SHARED TOILET FACILITIES — Shared toilet rooms shall be equipped with a flush water closet and lavatory basin, and shall be connected as provided in Section 2 above. In rooming house type structures, at least 1 toilet and 1 lavatory basin, properly connected as set forth above, shall be supplied for each 8 persons or fractions thereof residing within a rooming house, including members of the operator's family whenever they share the use of said facilities, provided CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 22 of 34 (+ attached statutes and regulations comprising 34 additional pages) Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSP1. • CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 that in rooming houses where rooms are let only to males, flush urinals may be substituted for not more than % of the required number of toilets. 4. BATH REQUIRED — Every dwelling unit shall contain a bathtub and/or shower. Fixtures shall be properly installed, free of hazards, leaks and defects, and shall be in functional and sanitary order. Potable water supply piping, water discharge outlets, backflow prevention devices or similar equipment shall not be so located as to make possible their submergence in any contaminated or polluted liquid or substance. Said bathtub and/or shower may be in the same room as the flush water closet and lavatory, or said bathtub and/or shower may be in a separate room. In all cases, these facilities shall be properly connected to both hot and cold running water lines, under pressure, and shall be in working order. In rooming house type structures, at least 1 bathtub and/or shower, properly connected as set forth above, shall be supplied for each 8 persons or fractions thereof, residing within a rooming house, including members of the operator's family whenever they share the use of said facilities. 5. PRIVACY IN ROOM CONTAINING TOILET AND BATH — Every toilet and every bath shall be contained in a room or within separate rooms which affords privacy to a person within said room or rooms. Said rooms shall not be the only passageway to the exterior. Toilets and bathrooms shall have doors with a privacy type lock and such doors, locks and hardware shall be in working order. 6. LOCATION OF COMMUNAL TOILETS AND BATHS— Every communal bath required to be provided in accordance with other provisions, shall be located within a room or rooms accessible to the occupants of each dwelling unit sharing such facilities, without going through a dwelling unit of another occupant and without going outside of the dwelling. In rooming houses, said room or rooms shall be located on the same floor of the dwelling as, or on the floor immediately above or below, the dwelling unit whose occupants share the use of such facilities. 7. WATER SUPPLY—All fixture water supplies shall be properly connected to public or private water system. All water supply inlet orifices (mouth of an opening from any pipe or faucet supplying water) shall have an air gap (The unobstructed vertical distance through the free atmosphere between the lowest opening from any pipe or faucet supplying water to a tank, plumbing fixture or other device and the floor level rim CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 23 of 34 (+ attached statutes and regulations comprising 34 additional pages) CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 of the receptacle.) or shall be protected by vacuum breakers (also known as backflow preventers). 8. HOT AND COLD WATER LINES TO BATH AND KITCHEN — Every dwelling shall have supplied water-heating facilities which are properly installed; in working condition and free of leaks; properly connected to hot water lines required; and are capable of supplying hot or tempered water at not less than 110°F to be drawn for every bath, as well as general usage. Hot water storage associated with water heating facilities shall not be less than the following minimum capacities: a. 1 dwelling unit 30 gallons • b. 2 dwelling units 40 gallons c. 3 or more dwelling units 50 gallons or more and rooming houses Sizes and/or number of water heaters are to be based upon the number of units served. No water heaters shall be allowed in bathrooms or bedrooms. All hot water heaters shall be properly vented and sealed and equipped with a pressure relief valve and drip leg a maximum of 6" above the floor. The local rehabilitation division and/or building inspection division may adjust the above-required capacities upward or downward based on the type and recovery time of the hot water system. 9. CONNECTION OF SANITARY FACILITIES TO SEWAGE SYSTEM — Every kitchen sink, toilet, lavatory basin and bathtub/shower shall be in working condition and properly connected to an approved public or private sewage system. All sewers and vents shall function properly and be free of leaks and blockages. 10.EXITS — Every exit from every dwelling and/or dwelling unit shall comply with the following requirements: a. It shall be functional; b. It shall be unobstructed; c. All stairways and steps of 4 or more risers shall have at least 1 handrail, and all stairways and steps that are 5 feet or more in width or open on both sides shall have a handrail on each side where possible; d. Every dwelling unit shall have 2 independent ways of egress; e. All handrails shall be not less than 30" or more than 42" vertically above the nose of the stair treads and not less than 36" above the stairway platform; f. All balconies and platforms that are 30" or more above grade, shall have protective guards not less than 30" in height above the balcony or platform level; CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 24 of 34 (+ attached statutes and regulations comprising 34 additional pages) loor level rim CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 23 of 34 (+ attached statutes and regulations comprising 34 additional pages) CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 g. All multiple dwellings (1 & 2 family residences exempted) shall have a second exit stairway or approved fire escape available to all occupants of units located on second or higher stories; h. All stairs and steps shall have a riser height of no more than 8" and a tread depth of no less than 9". This requirement may be waived on the programmatic level if in an existing structure, it would be impossible or cost prohibitive to meet this requirement. In such cases, new stairs could be put in having the same rise and run as the old; i. In basement units where one means of an exit shall be a window, it shall comply with the International Residential Code, Section 310 Emergency Escape and Rescue Openings. 11.FIRE PROTECTION AND SMOKE ALARMS—All fire protection systems and devices shall be in operable condition. When a dwelling is occupied by any hearing impaired person, smoke alarms shall have an alarm system designed for hearing impaired persons in accordance with NFPA 74 (or successor standards). Smoke alarms shall be installed: • On each story, including basement and cellar(Alarms are not required in unfinished attics and crawl spaces) • Outside of each bedroom • In each bedroom B. MINIMUM STANDARDS FOR LIGHT, VENTILATION AND HEATING • 1. REQUIRED WINDOW AREA— Every habitable room, provided such rooms are adequately lighted, shall have at least one open air space. The minimum total window area, measured between stops, for every habitable room shall be as follows: a. 1/12 of the floor area if two or more separate windows exist; or b. 1/10 of the floor area if only one window exists; c. a minimum of 12 square feet of window area is required in habitable rooms other than kitchens; d. a kitchen may pass without a window area, provided there is a mechanical means of ventilation in working order. Whenever the only window in a room is a skylight type window,the total window area of such skylight shall be equal to at least 15% of the total floor area of such room. Skylight type windows, if less than 15% of the total floor area shall be increased to 15% of the total floor area, unless another window is to be installed to provide adequate light and ventilation. 2. ADEQUATE VENTILATION REQUIRED - Every habitable room shall have at least one window or skylight which can easily be opened, or other such device as will adequately ventilate the room. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 25 of 34 (+ attached statutes and regulations comprising 34 additional pages) pages) CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 3. LIGHT AND VENTILATION REQUIREMENTS FOR BATHROOMS, TOILET ROOMS AND KITCHENS Every bathroom, toilet room, and kitchen shall comply with the light and ventilation requirements for habitable rooms contained above, except that no window shall be required in adequately ventilated bathrooms, toilet rooms, or kitchens equipped with a ventilation system that filters or exhausts to the exterior. 4. ALTERNATIVE LIGHT AND VENTILATION —Artificial light or mechanical ventilation complying with the International Building Code shall be permitted. 5. CLOTHES DRYER VENTING — Clothes dryer exhaust vent shall be a single purpose vent in compliance with the manufacturer's instructions and vent to the exterior. 6. ELECTRIC OUTLETS AND SERVICE REQUIRED - Where there is suitable electricity available from supply lines no more than 300 feet away from a dwelling, including all existing dwellings now supplied with electrical services, every habitable room within such dwelling shall contain a minimum of two separate and remote wall type electric convenience outlets. Habitable rooms measuring more than 120 square feet shall contain a minimum of three separate and remote wall type electric convenience outlets. Temporary wiring, extension, or zip cords shall not be used as permanent wiring. Every habitable room shall have at least one ceiling or.wall type electric light fixture, controlled by a wall switch, or a wall type grounded electric convenience outlet controlled by a remote switch. Every toilet room, bathroom, laundry room, furnace room, and hallway (hallway where applicable) shall contain at least 1 supplied ceiling or wall type electric light fixture, controlled by a wall switch, and at least one wall type grounded electric convenience outlet. Convenience outlets used in bathrooms shall be the GFI type. Each individual kitchen based on its size and layout shall be wired to meet the requirements of the National Electric Code (N.E.C.). Receptacle convenience outlets in or on open porches, breezeways or garages shall be of the GFI type with a weather proof receptacle box. All wall and/or ceiling type lighting fixtures shall be controlled by a wall switch, except porcelain type fixtures used in cellars and/or attics, which may be controlled with a proper pull chain. All electrical equipment, appliances and wiring shall be properly installed and in safe condition. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091 OS23—Page 26 of 34 (+attached statutes and regulations comprising 34 additional pages) attached statutes and regulations comprising 34 additional pages) pages) CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 All broken and/or missing switch and receptacle plates shall be replaced. All outlets and fixtures shall be properly installed, shall be in working condition and shall be connected to the source of electric power in a proper manner and in accordance with the electrical code of the city and/or the N.E.C., as applicable. Minimum electrical service for each dwelling and/or dwelling unit's circuit breaker box shall be by a three wire 120/240 volt single phase service rated no less than 100 amps, or as adjusted for size and usage of equipment and appliances in accordance with the ICC Electrical Code and approved, in writing, by the electrical inspector of the local jurisdiction or program. 7. HAZARDOUS ELECTRICAL CONDITIONS —Where any condition of the electrical system in the dwelling or structure is identified as, and constitutes a hazard, the hazardous conditions shall be corrected. 8. HEATING FACILITIES —Heating facilities shall be properly installed, be in working condition and be capable of adequately heating all habitable rooms, and toilet rooms contained therein, or intended for use by the occupants capable of maintaining a room temperature of 68°F (20°C) when the outdoor temperature is within the winter outdoor design temperature for the locality as cited in Appendix D of the International Plumbing Code. Space heaters shall not substitute for a central heating unit. Every installed central heating system shall comply with the following requirements: a. The central heating unit shall be safe and in good working condition; b. Every heat duct, steam pipe and hot water pipe shall be free of leaks and obstructions and deliver an adequate amount of heat where intended; c. Every seal between any and all sections of a hot air furnace shall be air-tight so noxious gases and fumes will not escape into the heat ducts; d. Required clearance from combustible materials shall be maintained; e. All chimneys and vents shall have a flue liner intact and in safe working condition. Every existing space heater shall comply with the following requirements: a. No space heater burning solid, liquid or gaseous fuels shall be of a portable type; b. Every space heater burning solid, liquid or gaseous fuels shall be properly vented to a chimney or duct leading to outdoor space and be installed to provide proper draft; c. Every fuel burning space heater shall have a fire-resistant panel between it and the floor or floor covering as required by the unit's manufacturer; CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 27 of 34 (+ attached statutes and regulations comprising 34 additional pages) ha-0910S23—Page 21 of 34 (+attached statutes and regulations comprising 34 additional pages) irements on all • assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 d. Whenever a space heater is located within 2 feet of a wall, said wall shall be protected with insulation sufficient to prevent overheating of the wall as required by the unit's manufacturer; e. Every space heater smoke pipe shall be equipped with approved thimbles or guards, properly constructed of non-flammable material, at the point where the pipe goes through any wall, ceiling or partition; f. Each dwelling and/or dwelling unit shall be supplied with its own heating systems. Local option may provide for one central forced air system to serve no more than two separate dwelling units. 9. LIGHTING OF PUBLIC HALLS AND STAIRWAYS a. Public halls and stairways in every dwelling containing 2 to 4 dwelling units shall be provided with convenient wall-mounted light switches controlling an adequate lighting system that will provide at least 2 foot candles of illumination on all parts thereof and be turned on when needed. An emergency circuit is not required for this lighting; b. Public halls and stairways in every dwelling containing 5 or more dwelling units shall be lighted at all times with an artificial lighting system. Said system shall provide at least 2 foot candles of illumination on all parts thereof at all times by means of properly located electric light fixtures, provided that such artificial lighting may be omitted from sunrise to sunset where an adequate natural lighting system is provided; c. Wherever the occupancy of the building exceeds 100 persons, the artificial lighting system as required herein, shall be on an emergency circuit; d. All basements and cellars shall be provided with a lighting system that permits safe occupancy and use of the space and contained equipment as intended, and which may be turned on when needed; e. The required intensity of illumination shall apply to both natural and artificial lighting. 10.SCREENS REQUIRED - For protection against flies, mosquitoes and other insects, every door opening directly from a dwelling unit or rooming unit, to the outdoor space where feasible, shall be supplied with a screen covering at least 50% of the window area of the door, and said door shall be equipped with a self- closing device. Every window or other opening to outdoor space used or intended to be used for ventilation shall likewise be supplied with screens covering the entire window areas required for ventilation. The material used for all such screens shall be no less than 16 mesh per inch, properly installed, and repaired when necessary to prevent the entrance of flies, mosquitoes uitoes and other insects.q Half-screens on windows may be allowed, provided they are properly installed and are bug and insect proof. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 11.SCREENS FOR BASEMENT AND CELLAR WINDOWS - Every dwelling unit having operable basement or cellar windows shall be screened to prevent the entry of insects and rodents. 12. EXISTING HEATING TO DWELLINGS OR PARTS THEREOF - Every dwelling owner or operator who rents, leases or lets for human habitation any unit contained within such dwelling, on terms either expressed or implied, shall supply or furnish heat to the occupants. Whenever a dwelling is heated by means of a furnace, boiler or other heating apparatus under the control of the owner or operator, in the absence of a written contract or agreement to the contrary, said owner and/or operator shall be deemed to have contracted, undertaken, or bound to furnish heat in accordance with the provisions of this section to every unit that contains radiators, furnace heat duct outlets, or other heating apparatus outlets,and to every communal bathroom and communal toilet room located within such unit. a. Every central heating unit, space heater, water heater and cooking appliance shall be located and installed in a safe working manner to protect against involvement of egress facilities or egress routes in the event of uncontrolled fires in the structure; b. Every fuel burning heating unit or water heater shall be effectively vented in a safe manner to a chimney or duct leading to the exterior of the building. The chimney duct and vents shall be designed to assure proper draft, shall be adequately supported, and shall be clean; c. No fuel-burning furnace shall be located in any sleeping room or bathroom unless provided with adequate ducting for air supply from the exterior, and the combustion chamber for such heating unit is sealed from the room in an airtight manner. Water heaters are prohibited in bathrooms and sleeping rooms. d. Every steam or hot water boiler and every water heater shall be protected against overheating by appropriate temperature and pressure limit controls; e. Every gaseous or liquid fuel burning heating unit and water heater shall be equipped with electronic ignition or with a pilot light and an automatic control to interrupt the flow of fuel to the unit in the event of failure of the ignition device. All such heating units with plenum have a limit control to prevent overheating. C. MINIMUM STRUCTURAL STANDARDS 1. SIDEWALKS AND DRIVEWAYS —All sidewalks, driveways, stairs and similar areas shall be free of hazardous conditions and in proper repair. 2. PREMISE IDENTIFICATION NUMBERS —Address numbers easily visible and legible from the street or road shall be installed. Numbers shall contrast in color CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 29 of 34 (+ attached statutes and regulations comprising 34 additional pages) age 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 with their background and be at least 4 inches high with a minimum stroke width of one half inch. 3. FOUNDATIONS, EXTERIOR WALLS, ROOFS, SOFFITS AND FASCIA- Every foundation, exterior wall, roof, soffit, and fascia shall be structurally sound, weather-tight, and rodent/insect-proof. All exterior surface materials shall be protected by lead-free paint or other protective coating in accordance with acceptable standards. The exception is all types of exterior materials acceptable to weatherizing without deterioration. 4. INTERIOR WALLS, FLOORS, CEILINGS, DOORS, AND WINDOWS — Every interior partition, wall floor, ceiling, door and window shall be structurally sound. Holes in walls should be replastered before new paint is applied. All interior doors shall be capable of affording privacy for which they were intended. 5. GRADING AND RAINWATER DRAINAGE FROM ROOF -All rainwater shall be drained and conveyed from every roof so as not to cause dampness within the dwelling. All rainwater drainage devices, such as gutters, downspouts, leaders and splashblocks shall be in safe working order. Ground areas around the habitable unit shall be sloped or drain away from foundation walls to prevent standing water. 6. WINDOWS, EXTERIOR DOORS AND BASEMENT OR CELLAR HATCHWAYS - Every front, rear, side and basement or cellar door shall be no less than 2'4" in width and no less than 6' 6" in height. In existing structures, if replacement to meet these requirements would be impossible or cost-prohibitive, said requirement may be waived by the grantee. Every window, exterior door and basement or cellar hatchway shall be substantially tight and rodent-proof. In addition, the following requirements shall be met: a. All exterior doors to the outside or to a common public hall shall be equipped with adequate security locks. Means of egress door locks shall be easily opened from the egress side without a key or special knowledge. All windows accessible from ground level without the aid of mechanical devices shall have a security device. Emergency escape windows shall be openable from the inside without the use of a key, code or tool; b. Every window sash shall be fully equipped with windowpane glazing materials free of cracks or holes, and all panes shall be secured with retaining devices or an adequate amount of putty. Said putty shall not be cracked, broken or missing; c. Every window sash shall be in good condition and fit tightly within its frame; CDBG—NSP 1(rev 08/20/09)-City of Omaha-0910S23—Page 30 of 34 (+attached statutes and regulations comprising 34 additional pages) shall be installed. Numbers shall contrast in color CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 29 of 34 (+ attached statutes and regulations comprising 34 additional pages) age 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 d. Every window, other than a fixed window, shall be easily opened and held in position by window hardware; e. Every exterior and interior door, door hinge, door latch, and/or lock shall be in good working condition; f. Every exterior and interior door, when closed, shall fit well within its frame; g. Every window, door and frame shall be constructed in relation to the adjacent wall construction, to exclude rain and wind as completely as possible from entering the dwelling or structure; 7. STAIRWAYS, DECKS, BALCONIES AND PORCHES - Every interior and exterior stairway, porch, deck, balcony and appurtenance thereto, including hand and guard rails, shall be constructed to be sound and safe to use and capable of supporting the load that normal use may place upon it. 8. SUPPLIED PLUMBING FIXTURES - Every plumbing fixture and water and waste pipe shall be properly installed in safe, sanitary working condition, free from leaks, defects, and obstructions. 9. BATHROOM, TOILET ROOM, KITCHEN AND UTILITY ROOM FLOORS - Every bathroom, toilet room, kitchen, and utility room floor surface shall be constructed to be impervious to water and to permit such floors to be easily kept clean and sanitary. Indoor-outdoor type carpeting, when properly installed, shall be allowed in bathrooms, toilet rooms, kitchens and utility rooms except when in conflict with required interim controls or standard treatments required to comply with the lead- based paint regulation. 10.CHIMNEYS AND SMOKE PIPES - Every chimney and smoke pipe shall be adequately supported, structurally sound, and clean. 11.TREES AND VEGETATION —Trees and vegetation endangering the unit and/or it occupants shall be eliminated. 12.INTERNATIONAL RESIDENTIAL CODE FOR ONE AND TWO-FAMILY DWELLINGS —All rehabilitation work must meet or exceed the requirements of the International Residential Code as promulgated by the International Code Council in its current edition or as adopted in ordinance by the local jurisdiction. a. Work must comply with the permitting and inspection requirements of the local jurisdiction. • b. In the absence of local permitting and inspection services, the local recipient program shall engage qualified inspectors and document code inspection and compliance. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091 OS23—Page 31 of 34 (+ attached statutes and regulations comprising 34 additional pages) w sash shall be in good condition and fit tightly within its frame; CDBG—NSP 1(rev 08/20/09)-City of Omaha-0910S23—Page 30 of 34 (+attached statutes and regulations comprising 34 additional pages) shall be installed. Numbers shall contrast in color CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 29 of 34 (+ attached statutes and regulations comprising 34 additional pages) age 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • 13.LEAD-BASED PAINT—As required under 24 CFR Part 35, the Final HUD Regulation on Lead-Based Paint Hazards in Federally Owned Housing and Housing Receiving Federal Assistance, all assisted dwelling units constructed before January 1, 1978, will be evaluated for lead-based paint hazards or presumed to have lead-based paint present throughout the unit when paint is disturbed. a. Evaluation will be done by a qualified, certified or licensed person as required under the regulation. b. All lead-based paint hazards will be identified and reduced or eliminated through paint stabilization, interim controls or abatement with work being done by supervised, trained, qualified, certified or licensed persons as required under the regulation. c. Safe work practices will be followed at all times. d. Occupants shall be protected or temporarily relocated as required by the regulation. With some exceptions, as listed at 24 CFR 35.1345, occupants shall be temporarily relocated before and during hazard reduction activities to a suitable, decent, safe and similarly accessible dwelling unit that does not have lead hazards. e. The dwelling unit and worksite shall be secured. The worksite shall be prepared and warning signs shall be posted as required by the regulation. f. Clearance examinations will be performed by qualified personnel and final clearance shall be achieved as required by the regulations. 14.ENERGY CONSERVATION - a. Equipment, appliances, windows, doors and appurtenances replaced during rehabilitation shall be replaced with Energy Star qualified products. b. If feasible, attics should be insulated to R38 and walls to a minimum of R11. c. Replacement heating and/or cooling systems shall be properly sized as evidenced by completion of ACCA/ANSI Manual J®or an equivalent sizing calculation tool. d. All accessible air ducts shall be tightly sealed. e. Heating or cooling supply running through unconditioned space should be avoided or rerouted, but when present and accessible, shall be insulated. 15. INDOOR AIR QUALITY— The scope and conduct of rehabilitation of each dwelling unit shall take into consideration the improvement and maintenance of satisfactory and healthy air quality within the unit. a. A carbon monoxide detector installed per manufacturers' recommendations shall be present in each unit, and receive primary power from the building wiring or battery. If the house is all electric a carbon monoxide detector is not required. b. Devices and appurtenances identified to contain mercury shall be removed or replaced excluding CFL bulbs. CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 32 of 34 (+ attached statutes and regulations comprising 34 additional pages) ge 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 c. Materials and methods used in carrying out rehabilitation, shall to the extent feasible, minimize and prevent dust, outgassing, volatile organic compounds and other contaminants within the dwelling unit. 16. UNIVERSAL DESIGN AND ACCESSIBILITY— Rehabilitation of each unit shall be carried out with consideration for the needs of its occupants and to the maximum practical extent in accordance with the principles of universal design. For guidance in implementing universal design features, visit www.design.ncsu.edu/cud . D. MINIMUM SPACE, USE AND LOCATION REQUIREMENTS 1. CEILING HEIGHT - Wherever possible, no habitable room in a dwelling or dwelling unit shall have a ceiling height of less than 7' 6". At least 1/2 of the floor area of every habitable room located above the first floor shall have a ceiling height of 7' 6", and the floor area of that part of any room where the ceiling height is less than 5' shall be considered as part of the floor area in computing the total floor area of the room for the purpose of determining maximum floor area. 2. ROOM WIDTH -All rooms, except kitchens and/or kitchenettes and baths, shall have a minimum width of 7'. Kitchens shall have a clear passage dimension of no less than 3 feet between walls, appliances and cabinets. 3. CELLAR SPACE NOT HABITABLE - No cellar space shall be converted or rehabilitated as habitable room or dwelling unit. 4. REQUIREMENTS FOR HABITABLE BASEMENT SPACE - No basement space shall be used as a habitable room or dwelling unit unless all of the following requirements are met: a. Such required minimum window area is located entirely above the grade of ground adjoining such window area, or an adequate window well of sufficient size as to allow escape of inhabitants residing within such basement apartment, has been constructed; b. Such basement dwelling unit or rooming unit shall be entirely sealed off from the central heating plant with a one hour fire separation. To assist grantees in evaluating existing building components, HUD has published the "Guideline on Fire Ratings of Archaic Materials and Assemblies", February 2000, available at http://www.huduser.orq/publications/destech/fire.html; c. Such basement dwelling unit or rooming unit provides two means of exit, with at least one means of opening directly to the outside; 5. MINIMUM STORAGE AREAS - Each dwelling unit shall have at least one closet with a minimum of 6 square feet of floor area and a minimum height of 6', located within the dwelling unit. Dwelling units with 2 or more bedrooms shall CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 33 of 34 (+ attached statutes and regulations comprising 34 additional pages) 4 (+ attached statutes and regulations comprising 34 additional pages) ge 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 have a storage floor area of at least 4 square feet per bedroom. This storage requirement does not necessarily have to be located in the bedrooms. E. MINIMUM STANDARDS FOR GARAGES, FENCES AND PREMISES 1. PROTECTION OF EXTERIOR WOOD SURFACES - All exterior wood surfaces shall be properly protected from the elements against decay and rot by lead-free paint, or other approved protective coating. 2. FENCES - Every residential fence shall be in a state of maintenance and repair or shall be removed. Wood materials that are not decay resistant shall be protected against decay by use of lead-free paint or by other preservative material. If a fence is removed and replaced, said installation shall conform with all local requirements. 3. CONDITION OF PREMISES -All areas and all parts of the premises upon which any dwelling or dwelling units are located and all areas adjacent thereto and a part of the premises shall be in a clean and sanitary condition. This shall include, but not be limited to, removal of abandoned and junked automobiles, automobile bodies, chassis, parts, and trailers; inoperable machines and appliances; lumber piles and building materials not used in actual construction; tin cans, broken glass, broken furniture, boxes, crates, and other debris, rubbish, junk and garbage. 4. WATER SUPPLY - CONNECT TO WATER MAIN - Every owner of a dwelling situated on property that abuts any street or alley in which a water main is laid, shall be connected to such main to provide water service. 5. ABANDONED WELLS AND CISTERNS - Every owner of a dwelling that contains an abandoned well or cistern on the premises shall permanently seal or fill it in a proper manner. 6. INFESTATION AND EXTERMINATION — Structures shall be free from rodent and insect infestation. Source: Substantial Amendment to the State of Nebraska 2008 Annual Action Plan for CDBG NSP9. CDBG—NSP 1(rev 08/20/09)-City of Omaha-0910S23—Page 34 of 34 (+ attached.statutes and regulations comprising 34 additional pages) ntees in evaluating existing building components, HUD has published the "Guideline on Fire Ratings of Archaic Materials and Assemblies", February 2000, available at http://www.huduser.orq/publications/destech/fire.html; c. Such basement dwelling unit or rooming unit provides two means of exit, with at least one means of opening directly to the outside; 5. MINIMUM STORAGE AREAS - Each dwelling unit shall have at least one closet with a minimum of 6 square feet of floor area and a minimum height of 6', located within the dwelling unit. Dwelling units with 2 or more bedrooms shall CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 33 of 34 (+ attached statutes and regulations comprising 34 additional pages) 4 (+ attached statutes and regulations comprising 34 additional pages) ge 28 of 34 (+attached statutes and regulations comprising 34 additional pages) terminated, at the discretion of the DED NSP- grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income CDBG—NSP 1(rev 08/20/09)—City of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 PUBLIC LAW 110-289- JULY 30, 2008 HOUSING AND ECONOMIC RECOVERY ACT OF 2008 Date No. of Vacant Units Owner Project Address Person Completing Person's Phone No. This Report Home: Work Race/Ethnicity Family Monthly Of Head of Applicant Size Income Household NOTE: This form is a list of everyone who inquired about renting or purchasing the unit(s). A EQUAL HOUSING OPPORTUNITY Revised 5/1/08 Date President/CEO APPROVED AS TO FORM: CITY ATTORNEY DATE Plnlsf1376-note 45th and Bedford Ave Omaha,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 122 STAT. 2850 PUBLIC LAW 110-289-JULY 30, 2008 "(2) OBLIGATION OR LIABILITY.—The term `obligation or liability'includes an obligation or liability consisting of a mort- gage, trust deed,or other security in the nature of a mortgage.". 50 USC app.533 (C)EFFECTIVE DATE;SUNSET.— note. (1) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on the date of enactment of this Act. (2)SUNSET.—The amendments made by subsection(a)shall expire on December 31, 2010. Effective January 1, 2011, the provisions of subsections (b) and (c) of section 303 of the Servicemembers Civil Relief Act, as in effect on the day before the date of the enactment of this Act, are hereby revived. TITLE HI-EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABAN- DONED AND FORECLOSED HOMES 42 USC 5301 SEC. 2301. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF note. ABANDONED AND FORECLOSED HOMES. (a). DIRECT APPROPRIATIONS.—There areappropriated anyin the Treasuryd out e money not otherwise appropriated for the fiscal year 2008,$4,000,000,000, to remain available until expended, for assistance to States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) for the redevelopment of abandoned and foreclosed upon homes and resi- dential properties. . (b)ALLOCATION OF APPROPRIATED AMOUNTS.- State and (1) IN GENERAL.—The amounts appropriated or otherwise local made available to States and units of general local government governments. under this section shall be allocated based on a funding formula established by the.Secretary of Housing and Urban Develop- • ment(in this title referred to as the"Secretary"). Deadline. (2)FORMULA TO BE DEVISED SWIFTLY.—The funding formula required under paragraph (1) shall be established not later than 60 days after the date of enactment of this section. (3) CRITERIA.—The funding formula required under para- graph(1)shall ensure that any amounts appropriated or other- ' wise made available under this section are allocated to States • and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on— (A) the number and percentage of home foreclosures in each State or unit of general local government; (B) the number and percentage of homes financed by a subprime mortgage related loan in each State or unit of general local government;and (C) the number and percentage of homes in default or delinquency in each State or unit of general local govern • - men t. Deadline. (4) DISTRIBUTION.—Amounts appropriated or otherwise made available under this section shall be distributed according to the funding formula established by the Secretary under paragraph (1) not later than 30 days after the establishment of such formula. (c)USE OF FUNDS.- y of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 PUBLIC LAW 110-289- JULY 30, 2008 122 STAT. 2851 (1)IN GENERAL.—Any State or unit of general local govern- Deadline. ment that receives amounts pursuant to this section shall, not later than 18 months after the receipt of such amounts, use such amounts to purchase and redevelop abandoned and foreclosed homes and residential properties. (2) PRIORITY.—Any State or unit of general local govern- Urban and ment that receives amounts pursuant to this section shall in rural areas. distributing such amounts give priority emphasis and consider- ation to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need,including those— (A) with the greatest percentage of home foreclosures; (B) with the highest percentage of homes financed by a subprime mortgage related loan;and (C) identified by the State or unit of general local government as likely to face a significant rise in the rate of home foreclosures. (3) ELIGIBLE USES.—Amounts made available under this section may be used to— (A) establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties,including such mechanisms as soft-seconds,loan loss reserves, and shared-equity loans for low- and mod- erate-income homebuyers; (B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and prop- erties; (C) establish land banks for homes that have been foreclosed upon; (D)-demolish blighted structures;and (E)redevelop demolished or vacant properties. (d)LIMITATIONS.— (1) ON PURCHASES.—Any purchase of a foreclosed upon Discounts. home or residential property under this section shall be at a discount from the current market appraised value of the home or property, taking into account its current condition, and such discount shall ensure that purchasers are paying below-market value for the home or property. (2) REHABILITATION.Any rehabilitation of a foreclosed- upon home or residential property under this section shall- be to the extent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes and properties. Rehabilitation may include improvements to increase the energy efficiency or conservation of such homes and properties or provide a renewable energy source or sources for such homes and properties. (3) SALE OF HOMES.—If an abandoned or foreclosed upon home or residential property is purchased, redeveloped, or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent,safe,and habitable condition. (4)REINVESTMENT OF PROFITS.— (A) PROFITS FROM SALES, RENTALS, AND REDEVELOP- MENT.— a. (c)USE OF FUNDS.- y of Omaha-0910S23—Page 20 of 34 (+ attached statutes and regulations comprising 34 additional pages) s, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 122 STAT. 2852 PUBLIC LAW 110-289—JULY 30, 2008 (i) 5-YEAR REINVESTMENT PERIOD.—During the 5- year period following the date of enactment of this Act, any revenue generated from the sale, rental, redevelopment, rehabilitation, or any other eligible use that is in excess of the cost to acquire and redevelop (including reasonable development fees)or rehabilitate an abandoned or foreclosed upon home or residential property shall be provided to and used by the State • or unit of general local government in accordance with, and in furtherance of, the intent and provisions of this section. (ii)DEPOSITS IN THE TREASURY.— (I) PROFITS.—Upon the expiration of the 5- year period set forth under clause (i), any revenue generated from the sale, rental, redevelopment, rehabilitation, or any other eligible use that is in excess of the cost to acquire and redevelop (including reasonable development fees) or rehabilitate an abandoned or foreclosed upon home or residential property shall be deposited in the Treasury of the United States as miscellaneous receipts, unless the Secretary approves a request to use the funds for purposes under this Act. (II) OTHER AMOUNTS.—Upon'the expiration of the 5-year period set forth under clause (i), any other revenue not described under subclause (I) generated from the sale, rental, redevelopment, rehabilitation,or any other eligible use of an aban- doned or foreclosed upon home or residential prop- erty shall be deposited in the Treasury of the • United States as miscellaneous receipts. State and local (B) OTHER REVENUES.—Any revenue generated under governments. subparagraphs (A), (C) or (D) of subsection (c)(3) shall be provided to and used by the State or unit of general local government in accordance with, and in furtherance of,the intent and provisions of this section. State and local (e)RULES OF CONSTRUCTION.— governments. (1) IN GENERAL.—Except as otherwise provided by this section, amounts appropriated, revenues generated, or amounts otherwise made available to States and units of general local government under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.). (2) No MATCH.—No matching funds shall be required in order for a State or unit of general local government to receive any amounts under this section. (f)AUTHORITY TO SPECIFY ALTERNATIVE REQUIREMENTS.— (1) IN GENERAL.—In administering any amounts appro- priated or otherwise made available under this section, the Secretary may specify alternative requirements to any provision under title I of the Housing and Community Development Act of 1974 (except for those related to fair housing, non- discrimination, labor standards, and the environment) in accordance with the terms of this section and for the sole purpose of expediting the use of such funds. he sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • PUBLIC LAW 110-289—JULY 30, 2008 122 STAT. 2853 (2) NOTICE.—The Secretary shall provide written notice Deadline. of its intent to exercise the authority to specify alternative requirements under paragraph (1) to the Committee on Banking, Housing and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representa- tives not later than 10 business days before such exercise of authority is to occur. (3)LOW AND MODERATE INCOME REQUIREMENT.— (A)IN GENERAL.—Notwithstanding the authority of the Secretary under paragraph(1)-- (i) all of the funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income;and (ii) not less than 25 percent of the funds appro- priated or otherwise made available under this section shall be used for the purchase and redevelopment of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income. (B) RECURRENT REQUIREMENT.—The Secretary shall, Regulations. by rule or order,ensure,to the maximum extent practicable Orders. and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed upon homes and residential properties under this section remain afford- able to individuals or families described in subparagraph • (A). (g) PERIODIC AUDITS.—In consultation with the Secretary of Housing and Urban Development, the Comptroller General of the United States shall conduct periodic audits to ensure that funds appropriated, made available, or otherwise distributed under this section are being used in a manner consistent with the criteria provided in this section. SEC.2302.NATIONWIDE DISTRIBUTION OF RESOURCES. 42 USC 5301 Notwithstanding any other provision of this Act or the amend- note. ments made by this Act, each State shall receive not less than 0.5 percent of funds made available under section 2301 (relating to emergency assistance for the redevelopment of abandoned and foreclosed homes). SEC.2303.LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT 42 USC 5301 DOMAIN. note. No State or unit of general local government may use any amounts received pursuant to section 2301 to fund any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use: Provided, That for pur- poses of this section, public use shall not be construed to include economic development that primarily benefits private entities. SEC.2304.LIMITATION ON DISTRIBUTION OF FUNDS. 42 USC 5301 (a) IN GENERAL.—None of the funds made available under note. this title or title IV shall be distributed to— (1) an organization which has been indicted for a violation under Federal law relating to an election for Federal office; or (2) an organization which employs applicable individuals. IL the terms of this section and for the sole purpose of expediting the use of such funds. he sales price minus superior loan repayment (other than NSP funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 • 122 STAT. 2854 PUBLIC LAW 110-289—JULY 30, 2008 (b)APPLICABLE INDIVIDUALS DEFINED.—In this section,the term "applicable individual"means an individual who— (1)is— (A) employed by the organization in a permanent or • temporary capacity; (B)contracted or retained by the organization;or (C)acting on behalf of, or with the express or apparent authority of,the organization;and (2) has been indicted for a violation under Federal law relating to an election for Federal office. 42 USC 5301 SEC.2305.COUNSELING INTERMEDIARIES. note. Notwithstanding any other provision of this Act, the amount appropriated under section 2301(a) of this Act shall be $3,920,000,000 and the amount appropriated under section 2401 Disadvantaged of this Act shall be $180,000,000: Provided, That of the amount persons. appropriated under section 2401 of this Act pursuant to this section, not less than 15 percent shall be provided to counseling organize tions that target counseling services regarding loss mitigation to minority and low-income homeowners or provide such services in neighborhoods with high concentrations of minority and low-income Grants. homeowners:Provided further, That of amounts appropriated under such section 2401 $30,000,000 shall be used by the Neighborhood Reinvestment Corporation (referred to in this section as the "NRC") to make grants to counseling intermediaries approved by the Department of Housing and Urban Development or the NRC to hire attorneys to assist homeowners who have legal issues directly related to the homeowner's foreclosure, delinquency or short sale. Such attorneys shall be capable of assisting homeowners of owner- occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure and who have legal issues that cannot be handled by counselors already employed by such Legal assistance. intermediaries: Provided further, That of the amounts provided Deadline. for in the prior provisos the NRC shall give priority consideration to counseling intermediaries and legal organizations that(1)provide legal assistance in the 100 metropolitan statistical areas (as defined • by the Director of the Office of Management and Budget) with the highest home foreclosure rates, and (2) have the capacity to begin using the financial assistance within 90 days after receipt of the assistance: Provided further, That no funds provided under this Act shall be used to provide, obtain, or arrange on behalf of a homeowner, legal representation involving or for the purposes of civil litigation: Provided further, That the NRC, in awarding counseling grants under section 2401 of this Act, may consider, where appropriate, whether the entity has implemented a written plan for providing in-person counseling and for making contact, including personal contact, with defaulted mortgagors, for the pur- pose of providing counseling or providing information about avail- able counseling. TITLE IV-HOUSING COUNSELING RESOURCES Appropriations SEC.2401.HOUSING COUNSELING RESOURCES. authorization. There are appropriated out of any money in the Treasury not otherwise appropriated for the fiscal year 2008,for an additional funds) and any closing costs. 1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner. 2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. CDBG—NSP 1(rev 08/20/09)—City of Omaha-091OS23—Page 19 of 34 (+ attached statutes and regulations comprising 34 additional pages) . • Battelle Memorial Institute, Headquartered in Columbus, Ohio • Brookhaven National Laboratory, Upton, New York • Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts • CNA Corporation (CNAC),Alexandria,Virginia • Environmental Institute of Michigan,Ann Arbor, Michigan • • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research • Institute;Atlanta, Georgia • Hanford Environmental Health Foundation, Richland, Washington • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a.122 2004.html 8/31/2009 a122/a122 2004.html 8/31/2009 or coovrioht has been adiudicated to be invalid. or has been administratively determined to be http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 n, are allowable. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures (see paragraph 15). • 28. Materials and supplies costs. a. Costs incurred for materials. suoolies. and fabricated harts necessary to carry out a Federal award are • http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122 2004.html 8/31/2009 such as hallways, stairwells, and restrooms. (c) Depreciation or use allowances on buildings, capital improvements and equipment related space (e.g., individual rooms, and laboratories) used jointly by more than one function (as determined by the :.—.. — ..[♦L— \ —L�11 L— •..—..a..J --t-11�...— TL— ��—� —[ —..—L :—:.- 1.. ....—J ...�:a �t —L�11 . http://www.whitehouse.gov/omb/rewrite/circulars/a122/a122_2004.html 8/31/2009 PAD.REc , . ,M� 'Pos9 Monday, """' of October 6, 2008 oft kir ��: .;,'<`" 1 19.8.5. e) Fnni Amok J to i a 3,,,,9 1 or JO Part III • pi. Department of Housing and Urban Development Notice of Allocations, Application �✓ Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing and ° ° ° Economic Recovery Act, 2008; Notice a,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 58330 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices DEPARTMENT OF HOUSING AND of abandoned and foreclosed homes and Except as described in this notice, URBAN DEVELOPMENT residential properties,and provides statutory and regulatory provisions (Docket No.FR-5255—N-011 under a rule of construction that,unless governing the CDBG program,including HERA states otherwise,the grants are to those at 24 CFR part 570 subpart I for Notice of Allocations,Application be considered Community Development states or,for CDBG entitlement Procedures,Regulatory Waivers Block Grant(CDBG)funds.The grant communities,including those at 24 CFR Granted to and Alternative program under Title III is commonly part 570 subparts A,C,D,J,K,and 0, Requirements for Emergency referred to as the Neighborhood as appropriate,shall apply to the use of Assistance for Redevelopment of Stabilization Program(NSP).When these funds,(The State of Hawaii will be Abandoned and Foreclosed Homes referring to a provision of the allocated funds and will be subject to Grantees Under the Housing and appropriations statute itself,this notice part 570,subpart I,as modified by this Economic Recovery Act,2008 will refer to HERA;when referring to notice.)Other sections of the notice will the grants,grantees,assisted activities, provide further details of the changes, AGENCY:Office of the Secretary,HUD. and implementation rules,this notice the majority of which deal with ACTION:Notice of allocation method, will use the term NSP, adjustments necessitated by HERA waivers granted,alternative HERA authorizes the Secretary to provisions,simplifying program rules to requirements applied,and statutory specify alternative requirements to any expedite administration,or relate to the program requirements. provision under Title I of the Housing ability of state grantees to act directly and Community Development Act of instead of solely through distribution to SUMMARY:This notice advises the public 1974,as amended,(the HCD Act)except local governments.In a separate of the allocation formula and allocation for requirements related to fair housing, guidance issuance,HUD also will amounts,the list of grantees,alternative nondiscrimination,labor standards,and provide a simplified"crosswalk"of requirements,and the waivers of the environment(including lead-based NSP and State CDBG requirements for regulations granted to grantees under paint),in accordance with the terms of state grantee administrators. Title III of Division B of the Housing section 2301 of HERA and for the sole and Economic Recovery Act of 2008,for purpose of expediting the use of grant Table of Contents the purpose of assisting in the funds.(Current and former disaster I.Allocations 1 redevelopment of abandoned and recovery CDBG grantees should note A.Formula;Allocation foreclosed homes under the Emergency that this authority is substantially and B.Formula:Reallocation Assistance for Redevelopment of significantly more limited from that II.Alternative Requirements and Regulatory Abandoned and Foreclosed Homes generally provided with disaster Waivers heading,referred to throughout this recovery CDBG supplemental A.Definitions for purposes of the CDBG notice as the Neighborhood appropriations;therefore,waivers under Neighborhood Stabilization Program Stabilization Program(NSP).As the NSP are much more limited.For B.Pre-Grant Process described in the SUPPLEMENTARY example,HUD does not have authority 1.General INFORMATION section of this notice,HUD to provide alternative requirements for 2.Contents of an NSP Action Plan is authorized by statute to specify the National Affordable Housing Act Substantial Amendment alternative requirements and make (NAHA)or for the Uniform Relocation 3.Continued Affordability regulatory waivers for this purpose.This Assistance Real Property Acquisition 4.Citizen Participation Alternative notice also notes statutory issues Policies Act of 1970(URA).Unless this Requirement affecting program design and notice describes how HERA has 5.Joint Requests implementation. superseded one of their provisions, s.Effect of Existing Cooperation these statutes will apply as in the CDBG Agreements Governing Joint Programs DATES:20TE Effective Date:September 29, program.Such regulatory relief as HUD and Urban Counties C.Reimbursement for Pre-Award Costs deemed necessary and was authorized D.Grant Conditions FOR FURTHER INFORMATION CONTACT: to provide under 24 CFR 5.110 and E.Income Eligibility Requirement Changes Stanley Gimont, Director,Office of 91.600 to permit implementation of the F.State Distribution to Entitlement Block Grant Assistance,Department of NSP is provided in this notice.) Communities and Indian Tribes Housing and Urban Development,451 The Secretary finds that the following G.State's Direct Action Seventh Street,SW.,Room 7286, alternative requirements are necessary H.Eligibility and Allowable Costs Washington,DC 20410,telephone to expedite the use of these funds for I.Rehabilitation Standards number 202-708-3587.Persons with their required purposes. J.Sale of Homes hearing or speech impairments may Under the requirements of HERA,the K.Acquisition and Relocation access this number via TTy by calling Secretary must provide Congress written L.Note on Eminent Domain the Federal Information Relay Service at notice of its intent to exercise the M.Timeliness of Use and Expenditure of 800-877-8339.FAX inquiries may be authority to specify alternative NSP Funds sent to Mr. Gimont at 202-401-2044. requirements not less than 10 business N.Alternative Requirement for Program (Except for the"800"number,these days before such exercise of authority is Income(Revenue)Generated by telephone numbers are not toll-free.) to occur.Under the HUD Reform Act, Activities Assisted With Grant Funds SUPPLEMENTARY INFORMATION: regulatory waivers must be justified and O.Reporting published in the Federal Register.The P.Note That FHA Properties Are Eligible Authority To Provide Alternative Department is also using this notice to for NSP Acquisition and Redevelopment Requirements and Grant Regulatory provide grantees information about Q.Purchase Discount Waivers R.Removal of Annual Requirements other ways in which the requirements S.Affirmatively Furthering Fair Housing Title III of Division B of the Housing for this grant vary from regular CDBG T.Certifications and Economic Recovery Act,2008 program rules.Compiling this U.Note on Statutory Limitation on (HERA) (Pub. L. 110-289,approved July information in a single notice creates a Distribution of Funds 30, 2008)appropriates$3.92 billion for helpful resource for grant administrators V.Information Collection Approval Note emergency assistance for redevelopment and HUD field staff. W.Duration of Funding Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58331 I.Allocations some of the statutory items applicable to fit the requirements of HERA and the A.Formula:Allocation the grants.This background narrative is use of the DRGR. followed by the NSP requirement(s), The waivers,alternative requirements, HERA provides$3.92 billion of funds HUD's resources for implementing and statutory changes apply only to the that are generally to be construed as HERA are limited and have other calls grant funds appropriated under HERA CDBG program funds for the upon them(for managing the regular and not to the use of regular formula communities and in the amounts listed CDBG and HOME Investment allocations of CDBG funds,even if they in Attachment A to this notice. Partnership programs(HOME)and the are used in conjunction with NSP funds Attachment A also includes a New York,Gulf Coast,and Midwest for a project.They provide expedited description of the allocation formula disaster recovery grants),and the program implementation and used to determine the grant amounts,as Department wants to target the use of its implement statutory requirements required by HERA. resources toward achieving NSP unique to this appropriation. B.Formula:Reallocation program performance,and preventing and eliminating fraud,waste,and A.Definitions for Purposes of the CDBG 1.a.To expedite the use of NSP funds, misuse of program funds.Because no Neighborhood Stabilization Program the Department is specifying alternative funds were available specifically for Background requirements to 42 U.S.C.5306(c).If a tracking the use of NSP grants,HUD is unit of general local government applying an existing system, Certain terms are used in HERA that receiving an allocation of NSP funds unmodified.This all militates toward are not used in the regular CDBG under this notice(as designated in keeping standards simple or familiar, program,or the terms are used Attachment A)fails to submit a wherever possible.Therefore, differently in HERA and the HCD Act. substantially complete application for throughout this notice,where HUD had In the interest of speed and clarity of its grant allocation by December 1,2008, any choice of a standard to use to administration,HUD is defining these or submits an application for less than measure compliance,HUD selected the terms in this notice for all grantees, the total allocation amount,HUD will simplest one to administer,giving a including states.For the same reason, simultaneously notify the jurisdiction of preference to a standard already in HUD is also defining eligible fund uses the cancellation of all or part of its common use. for all grantees,including states.States allocation amount and proceed to Each grantee eligible for an NSP grant may define other program terms under reallocate the funds to the state in already receives annual CDBG the authority of 24 CFR 570.481(a),and which the jurisdiction is located. allocations,has carried out needs will be given maximum feasible b.If a state or insular area receiving hearings,has a consolidated plan,an deference in accordance with 24 CFR an allocation of funds under this notice annual action plan,a citizen 570.480(c)in matters related to the fails to submit a substantially complete participation plan,a monitoring plan, administration of their NSP programs. application for its allocation by an analysis of impediments to fair Requirement December 1,2008,or submits an housing choice,and has made CDBG application for less than the total certifications,The consolidated plan Abandoned.A home is abandoned allocation amount,HUD will already discusses housing needs related when mortgage or tax foreclosure simultaneously notify the state or to up to four major grant programs: proceedings have been initiated for that insular area of the reduction in its CDBG,HOME,Emergency Shelter property,no mortgage or tax payments allocation amount and proceed to Grants(ESG),and Housing have been made by the property owner reallocate the funds to the 10 highest- Opportunities for Persons With AIDS for at least 90 days,AND the property need states based on original rankings of (HOPWA).A grantee's annual action has been vacant for at least 90 days. need. plan describes the activities budgeted Blighted structure.A structure is 2. If any jurisdiction,state,insular,or under each of those annual programs. blighted when it exhibits objectively local area fails to meet the requirement HUD is treating a grantee's use of its determinable signs of deterioration to use its grant within 18 months of NSP grant to be a substantial sufficient to constitute a threat to receipt of the amounts,as required, amendment to its current approved human health,safety,and public HUD,on the first business day after that consolidated plan and annual action welfare. deadline,will simultaneously notify the plan.The NSP grant is a special CDBG CDBG funds.CDBG funds means,in grantee and restrict the amount of allocation to address the problem of addition to the definition at 24 CFR unused funds in the grantee's line of abandoned and foreclosed homes. 570.3,grant funds distributed under this credit.HUD will allow the grantee 30 HERA establishes the need,targets the notice. days to submit information to HUD geographic areas,and limits the eligible Current market appraised value.The regarding any additional"use"of funds uses of NSP funds.Treating the NSP as current market appraised value means not already recorded in the Disaster a substantial amendment will expedite the value of a foreclosed upon home or Recovery Grant Reporting system the distribution of NSP funds,while residential property that is established _ (DRGR).Then HUD will proceed to ensuring citizen participation on the though an appraisal made in recapture the unused funds.HUD will specific use of the funds.HUD is conformity with the appraisal reallocate these unused funds in waiving the consolidated plan requirements of the URA at 49 CFR _ accordance with 42 U.S.C.5306(c)(4). regulations on the certification of 24.103 and completed within 60 days consistency with the consolidated plan prior to an offer made for the property II.Alternative Requirements and to mean the NSP funds will be used to by a grantee,subrecipient,developer,or Regulatory Waivers meet the congressionally identified individual homebuyer. This section of the notice briefly needs of abandoned and foreclosed Foreclosed.A property"has been provides a justification for alternative homes in the targeted areas set forth in foreclosed upon"at the point that, requirements,where additional the grantee's substantial amendment.In under state or local law,the mortgage or explanation is necessary,and describes addition,HUD is waiving the tax foreclosure is complete.HUD the necessary basis for each regulatory consolidated plan regulations to the generally will not consider a foreclosure waiver.This section also highlights extent necessary to adjust reporting to to be complete until after the title for the 58332 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices property has been transferred from the amendments for NSP funds,in grant. (Grantees choosing this option former homeowner under some type of accordance with this notice.(Insular should consider the Consolidated Plan foreclosure proceeding or transfer in areas should follow the requirements for and citizen participation implications of lieu of foreclosure,in accordance with entitlement communities.) , this approach.The lead entity's state or local law, To receive NSP funding,each CDBG substantial amendment will cover any Land bank.A land bank is a grantee listed in Attachment A must participating members.The citizen governmental or nongovernmental submit an action plan substantial participation process must include nonprofit entity established,at least in amendment to HUD in accordance with citizens of all jurisdictions participating part,to assemble,temporarily manage, this notice by December 1,2008. in the joint NSP program,not just those and dispose of vacant land for the HUD encourages each grantee to carry of the lead entity.) purpose of stabilizing neighborhoods out its NSP activities in the context of Given the rule of construction in and encouraging re-use or a comprehensive plan for the HERA that NSP funds generally are redevelopment of urban property.For community's vision of how it can make construed as CDBG program funds, the purposes of the NSP program,a land its neighborhoods not only more stable, subject to CDBG program requirements, bank will operate in a specific,defined but also more sustainable,competitive, HUD generally is treating NSP funds as geographic area.It will purchase and integrated into the overall a special allocation of Fiscal Year(FY) properties that have been abandoned or metropolitan fabric,including access to 2008 CDBG funding.This has important foreclosed upon and maintain, transit,affordable housing,employers, consequences for local governments assemble,facilitate redevelopment of, and services. presently participating in an existing . HUD encourages each local urban county program,and for market,and dispose of the land-banked properties.If the land bank is a jurisdiction receiving an allocation to metropolitan cities that have joint carefully consider its administrative agreements with urban counties.HUD governmental entity,it may also maintain abandoned or foreclosed capacity to use the funds within the will consider any existing cooperation property that it does not own,provided statutory deadline versus the capacity of agreements between a local government the ate strator. full8 it cost oes f the service oe owner of tr ple aces a lieerty n a that after such consideration,some expects CDBG funding and an (for n county poses of either an on the property for the full cost of the jurisdictions may choose to apply for urban county or a joint program)to service. less than the full amount,which will automatically cover NSP funding as Revenue for the purposes of section allow the balance of their grants to pass well.These cooperation agreements will 2301(d)(4).Revenue has the same to the NSP administrator at the state continue to apply to the use of NSP level. funds for the duration of the NSP grant, meaning as program income,as defined at 24 CFR 570.500(a)with the Another way jurisdictions may just as cooperation agreements covering modifications in this notice. cooperate to carry out their grant regular CDBG Entitlement program Subrecipient.Subrecipient shall have programs is through a joint request to funds continue to apply to any use of the same meaning as at the first HUD.HUD is providing regulatory the funds appropriated during the 3- sentence of 24 CFR 570.500(c).This waivers and alternative requirements to year period covered by the agreements. includes any nonprofit organization allow joint requests among entitlement For example,a local government (including a unit of general local communities and to allow joint requests presently has a cooperation agreement government)that a state awards funds between an entitlement community and covering a joint program or participation to. a state.Any two or more contiguous in an urban county for federal FYs 2007, Use for the purposes of section entitlement communities(metropolitan 2008 and 2009.The local government 2301(c)(1).Funds are used when they cities or urban counties)that are in the may choose to discontinue its are obligated by of same metropolitan area and that are participation with the county at the end local obligated gover by a,state,any unitsubrecipient general eligible to receive an NSP grant may of the applicable qualification period for instead make a joint request to HUD to purposes of regular CDBG entitlement thereof,for a specific NSP activity; for ! example,for acquisition of a specific implement a joint NSP program.A funding.However,the county will still jurisdiction need not have a joint be responsible for anyNSP projects property.Funds are obligated for an agreement with an urban countyunder p p l activity when orders are placed, g funded in that community,and for any contracts are awarded,services are the regular CDBG entitlement program NSP funding the local government received,and similar transactions have to request a joint program for NSP receives from the county,until those funding.Similarly,any entitlement funds are expended and the funded occurred that require payment by the community eligible to receive an NSP activities are completed. state,unit of general local government, grant may instead make a request for a A third method of cooperating is also or subrecipient during the same or a joint NSP program with its state.An available.A jurisdiction may choose to future period. Note that funds are not NSP joint request under a cooperation apply for its entire grant,and then enter obligated for an activity when agreement results in a single combined into a subrecipient agreement with subawards (e.g.,grants to subrecipients grant and a single action plan another jurisdiction or nonprofit entity - or to units of local government)are substantial amendment.Potential to administer the grant.In this manner, made. requestors should contact HUD as soon for example,all of the grantees .B.Pre-Grant Process as possible(as far as possible in advance operating in a single metropolitan area - Background of publishing a proposed NSP could designate the same land-bank substantial amendment)for technical entity(or the state housing finance With this notice,HUD is establishing guidance.The requestors will specify agency)as a subrecipient for some or all the NSP allocation formula,including which jurisdiction will receive the of their NSP activities. reallocation provisions,and announcing funds and administer the combined Each grantee will have until the distribution of funds.CDBG grantees grant on behalf of the requestors;in the December 1,2008,to complete and receiving NSP allocations may case of a joint request between a local submit a substantial amendment to its immediately begin to prepare and government jurisdiction and a state,the annual action plan.A grantee that submit action plan substantial state will administer the combined wishes to initially submit its action plan Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58333 amendment to HUD electronically in the CDBG funds are not used in entitlement Annual Action Plan required for the DRGR system rather than via paper may areas,State CDBG staffs may not be CDBG program under part 91 are: do so by contacting its local field office aware of limited English proficient a.General information about needs, for the DRGR submission directions, (LEP)speaking populations in those distribution,use of funds,and Paper submissions to HUD also will be metropolitan jurisdictions. definitions: allowed, although each grantee must set HUD will review each grantee i.Summary needs data identifying the up its action plan in DRGR prior to the submission for completeness and geographic areas of greatest need in the deadline for the first required consistency with the requirements of grantee's jurisdiction.(A state must performance report after receiving a this notice and will disapprove include the needs of the entire state and grant. incomplete and inconsistent action plan not just the areas not receiving an NSP HUD is using DRGR for the NSP amendments.HUD will allow revision allocation.To include the needs of an because no other application and and resubmission of a disapproved entitlement community,the state may reporting system was sufficiently action plan in accordance with 24 CFR either incorporate an entitlement flexible to deal with the alternative 91.500 so long as any such resubmission jurisdiction's consolidated plan and requirements.The emergency nature of is received by HUD 45 days or less NSP needs by reference and hyperlink this legislation and corresponding following the date of first disapproval on the Internet,or state the needs for statutory time frames do not give HUD and in no case later than the close of that jurisdiction in the state's own plan); sufficient time to develop a new system business February 13,2009. ii.A narrative describing how the or modify an existing system to In combination,the notice alternative distribution and uses of the grantee's perfectly fit NSP. requirements provide the following NSP funds will meet the requirements HUD encourages grantees,during expedited steps for NSP grants: of Section 2301(c)(2)of HERA that development of their action plan funds be distributed to the areas of amendments,to contact HUD field • Proposed action plan amendment published need,includingthose with the offices for guidance in complying with Published via the usual methods and on greatest percentage of ome these requirements,or if they have any the Internet for no less than 15 calendar foreclosures,with the highest questionsregarding meeting grant days of public comment; percentage of homes financed by a re nts. • Final action plan amendment q Y program, posted on the Internet and submitted to subprime mortgage related loan,and Normally,in the CDBG a identified by the grantee as likely to face grantee takes at least 30 days solicitingHUD by December 1,2008(grant Y a significant rise in the rate of home comment from its citizens before it application includes Standard Form 424 foreclosures.The grantee's narrative submits an annual action plan to HUD, (SF-424)and certifications); must address the three need categories which then has 45 days to accept or • HUD expedites review, in the NSP statute,but the grantee may reject the plan.To expedite the process • HUD accepts the plan and prepares also consider other need categories; and to ensure that the NSP grants are a cover letter,grant agreement,and iii.For the purposes of the NSP,the awarded in a timely manner,while grant conditions; narratives will include: preserving reasonable citizen • Grant agreement signed by HUD (A)A definition of"blighted participation,HUD is waiving the and immediately transmitted to the structure"in the context of state or local requirement that the grantee follow its grantee; law; citizen participation plan for this • Grantee signs and returns the grant (B)A definition of"affordable rents;" substantial amendment.HUD is agreements; (C)A description of how the grantee shortening the minimum time for • HUD establishes the line of credit will ensure continued affordability for citizen comments and requiring the and the grantee requests and receives NSP-assisted housing;and substantial amendment materials to be voice response system(VRS)access; (D)A description of housing posted on the grantee's official website • After completing the environmental rehabilitation standards that will apply as the materials are developed, review(s)pursuant to 24 CFR part 58 to NSP-assisted activities. published,and submitted to HUD. and,as applicable,receiving from HUD b.Information by activity describing Each grantee must use its NSP funds or the state an approved Request for how the grantee will use the funds, within 18 months of receipt.A grantee Release of Funds and certification,the identifying: will be deemed by HUD to have grantee may draw-down funds from the i.The eligible use of funds under received its NSP grant at the time HUD line of credit. NSP; signs its NSP grant agreement(or The action plan substantial ii.The eligible CDBG activity or vi amendment thereof,in the case of a amendment and citizen participation actiies; state that later receives reallocated grant alternative requirement will permit an iir.T The areasof greatest n addressed bye the activity or ed activities; 'funds). expedited grant-making process,but one iv,The expected benefit to income- Grantees are cautioned that,despite that still provides for public notice, qualified persons or households or the expedited application and plan appraisal,examination,and comment areas; process,they are still responsible for on the activities proposed for the use of v.Appropriate performance measures ensuring that all citizens have equal NSP grant funds. for the activity(e.g.,units of housing to access to information about the Requirement be acquired,rehabilitated,or programs.Among other things,this demolished for the income levels - means that each grantee must ensure 1.General note.Except as described represented in DRGR,which are that program information is available in in this notice,statutory and regulatory currently 50 percent of area median the appropriate languages for the provisions governing the CDBG program income and below,51 to 80 percent, and geographic area served by the for states and entitlement communities, 81 to 120 percent); jurisdiction.This will be a particular as applicable,shall apply to the use of vi.Amount of funds budgeted for the issue for those states that this notice is these funds. activity; allowing to make grants throughout the 2.Contents of an NSP Action Plan vii.The name and location of the state,including into regular CDBG substantial amendment.The elements in entity that will carry out the activity; entitlement areas.Because regular State the NSP substantial amendment to the and 58334 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices viii,The expected start and end dates a mortgage loan from a lender who funds allocated for that grantee.HUD is of the activity. agrees to comply with the bank providing alternative requirements to 42 c.A Description of the general terms regulators'guidance for non-traditional U.S.C. 5304(a)(2)and waiving 91.105(k) under which assistance will be mortgages(see,Statement on Subprime and 91.115(i)to the extent necessary to provided, including: Mortgage Lending issued by the Office allow the grantee to provide no fewer i.If the activity includes acquisition of the Comptroller of the Currency, than 15 calendar days for citizen of real property,the discount required Board of Governors of the Federal comment(rather than 30 days)for its for acquisition of foreclosed-upon Reserve System,Federal Deposit initial NSP submission,and to require properties; Insurance Corporation,Department of that,at the time of submission to HUD, ii.Range of interest rates(if any); the Treasury,and National Credit Union each grantee post its approved action iii.Duration or term of assistance; Administration,available at http:// plan amendment and any subsequent iv.Tenure of beneficiaries(e.g.,rental wwwfdic.gov/regulations/laws/rules/ NSP amendments on its official website or homeownership);and 5000-5160,htm1).Grantees must design along with a summary of citizen v.If the activity produces housing, NSP programs to comply with this comments received within the 15-day how the design of the activity will requirement and must document comment period.After HUD processes ensure continued affordability;and compliance in the records,for each and approves the plan amendment and vi.If the funds used for the activity homebuyer.Grantees are cautioned both HUD and the grantee have signed are to count toward the requirement at against providing or permitting the grant agreement,HUD will establish section 2301(f)(3)(A)(ii)to provide homebuyers to obtain subprime the grantee's line of credit in the amount benefit to low-income persons(earning mortgages for whom such mortgages are of funds included in the Action Plan 50 percent or less of area median inappropriate,including homebuyers amendment,up to the allocation income). who qualify for traditional mortgage amount. d.Information on how to contact loans. 5.Joint requests.To expedite the use grantee program administrators,so that c.If NSP funds assist a property that of funds,HUD is providing an citizens and other interested parties was previously assisted with HOME alternative requirement to 42 U.S.C. know who to contact for additional funds,but on which the affordability 5304(i)and is waiving 24 CFR 570.308 information. restrictions were terminated through to the extent necessary to allow for 3.Continued affordability.Grantees foreclosure or transfer in lieu of additional joint programs described shall ensure,to the maximum extent foreclosure pursuant to 24 CFR part 92, below. practicable and for the longest feasible the grantee must revive the HOME a.Entitlement Community Joint term,that the sale,rental,or affordability restrictions for the greater Agreements.Two or more contiguous redevelopment of abandoned and of the remaining period of HOME entitlement communities(metropolitan foreclosed-upon homes and residential affordability or the continuing cities or urban counties)that are eligible properties under this section remain affordability requirements of this notice. to receive a NSP allocation and are affordable to individuals or families 4.Citizen participation alternative located in the same metropolitan area whose incomes do not exceed 120 requirement.HUD is providing an may enter into joint agreements.All percent of area median income or,for alternative requirement to 42 U.S.C. members to the joint agreement must be units originally assisted with funds 5304(a)(2)and(3),to expedite eligible to receive NSP funds,and one under the requirements of section distribution of grant funds and to unit of general local government must 2301(f)(3)(A)(ii),remain affordable to provide for expedited citizen be designated as the lead entity.The individuals and families whose incomes participation for the NSP substantial lead entity must execute the NSP grant do not exceed 50 percent of area median amendment.Provisions of 24 CFR agreement with HUD.Consistent with income. 570.302 and 570.486 and those of 24 24 CFR 570.308,the lead entity must a.In its NSP action plan substantial CFR 91.105(k)and 91.115(i),with assume responsibility for administering amendment,a grantee will define respect to following the citizen the NSP grant on behalf of all members, "affordable rents"and the continued participation plan,are waived to the in compliance with applicable program affordability standards and enforcement extent necessary to allow requirements.The substantial mechanisms that it will apply for each implementation of the requirements amendment to the lead entity's action (or all) of its NSP activities.HUD will below. plan will include all participating consider any grantee adopting the a.To receive its grant allocation,a entitlement communities. HOME program standards at 24 CFR grantee must submit to HUD for b.Joint agreements with a state.Any 92.252(a), (c), (e),and(f),and 92.254 to approval an NSP application by entitlement community that is eligible be in minimal compliance with this December 1,2008.This submission will to receive an NSP allocation may enter standard and expects any other include a signed standard federal form into a joint agreement with its state.The standards proposed and applied by a SF-424,signed certifications,and a state shall be the lead entity and must grantee to be enforceable and longer in substantial action plan amendment assume responsibility for administering _ duration. (Note that HERA's continued meeting the requirements of paragraph b the NSP grant on behalf of the affordability standard is longer than that below.(24 CFR 91.505 is waived to the entitlement community,in compliance required of subrecipients and extent necessary to require submission with applicable program requirements. - participating units of general local of the substantial amendment to HUD The substantial amendment to the government under 24 CFR 570.503 and for approval in accordance with this state's action plan will include any 570.501(b).) notice.) participating entitlement community. b.The grantee must require each NSP- b.Each grantee must prepare and 6.Effect of existing cooperation assisted homebuyer to receive and submit its annual Action Plan agreements governing joint programs complete at least 8 hours of homebuyer amendment to HUD in accordance with and urban counties.Any cooperation counseling from a HUD-approved the consolidated plan procedures for a agreement between a unit of general housing counseling agency before substantial amendment under the local government and a county, obtaining a mortgage loan.The grantee annual CDBG program as modified by concerning either a joint program or must ensure that the homebuyer obtains this notice or HUD will reallocate the participation in an urban county under its immediately begin to prepare and government jurisdiction and a state,the annual action plan.A grantee that submit action plan substantial state will administer the combined wishes to initially submit its action plan Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58335 IIIIIMMIIIMMIIMMEINIMINI 24 CFR 570.307 or 570.308,and D.Grant Conditions or below 120 percent of area median governing CDBG funds appropriated for For NSP grantees that HUD income(LMMA); federal FY 2008,will be considered to determines are high risk in accordance • Creates or retains jobs for persons whose household incomes are at or Any incorporate ch coope ation ag eemen sdwill with t additional grant co4 CFR nditions o), ns in apply below 120 percent of median income continue to apply to the use of NSP accordance with 24 CFR 85.12(b). (LMMJ);or funds until the NSP funds are expended • Serves a limited clientele whose and the NSP grant is closed out. E.Income Eligibility Requirement incomes are at or below 120 percent of Grantees should note that certain Changes area median income(LMMC). provisions in existing cooperation Background HUD will use the parenthetical terms agreements that govern FY2008 CDBG above to refer to NSP national objectives The NSP program includes two low- in program implementation,to avoid funding may be inconsistent with parts and moderate-income requirements at confusion with the regular HCD Act of HERA and this notice.For instance, section 2301(f)(3)(A)that supersede definitions. set minimum and/or maximum existing CDBG income qualification Land banks are not allowed in the allocation amounts may conflict with requirements.Under the heading"Low regular CDBG program because of the priority distributions to areas of greatest and Moderate Income Requirement," very high risk that the delay between need identified in the grantee's action HERA states that: "All of the funds acquiring property and meeting a plan substantial amendment. appropriated or otherwise made national objective can be excessively Conforming amendments should be available under this section shall be long,attenuating the intended CDBG made to existing cooperation used with respect to individuals and program benefits by delaying benefit far agreements,as necessary,to comply families whose income does not exceed beyond the annual or even the 5-year with HERA and this notice. 120 percent of area median income." consolidated plan cycles.In the regular C.Reimbursement for Pre-Award Costs This provision does two main things. CDBG program(and in the NSP other First,for the purposes of the NSP,it than in an eligible land-bank use),a Background effectively supersedes the overall property acquisition activity is benefit provisions of the HCD Act and dependent on the national objective met NSP allocatees will need to move the CDBG regulations,which allow up by the subsequent reuse of the property forward rapidly to prepare the NSP to 30 percent of a grant to be used for in order to demonstrate program substantial amendment and to activities that meet a national objective compliance.Given this,the HERA undertake other administrative actions, other than the low-and moderate- direction that assistance to land banks is including environmental reviews,as income one.Thus,NSP allows the use an eligible use of NSP funds requires an soon as allocations are known. of only the low-and moderate-income alternative requirement and policy Therefore,HUD is granting permission national objective.Activities may not clarification. to states and entitlement jurisdictions qualify under NSP using the"prevent or For grantees choosing to assist land receiving a direct allocation of NSP eliminate slums and blight"or"address banks or demolition of structures with funds(see Attachment A)to incur pre- urgent community development needs" NSP funds,the change to the income award costs as if each was a new grantee objectives. qualification level for low-,moderate-, preparing to receive its first allocation of Second,this provision also redefines and middle-income areas will likely CDBG funds. and supersedes the definition of"low- include most of the neighborhoods and moderate-income,"effectively where property stabilization is required. Requirement allowing households whose incomes If an assisted land bank is not merely 24 CFR 570.200(h)is waived to the exceed 80 percent of area median acquiring properties,but is also carrying extent necessary to grant permission to income but do not exceed 120 percent out other activities intended to arrest entitlement jurisdictions receiving a of area median income to qualify as if neighborhood decline,such as direct NSP allocation under this notice their incomes did not exceed the maintenance,demolition,and to incur pre award costs as if each was published low-and moderate-income facilitating redevelopment of the new grantee to receive its levels of the regular CDBG program.To properties,HUD will,for NSP-assisted airst preparing CDBG fundc prevent confusion,HUD will refer to activities only,accept that the f in allocationo OMB this new income group as"middle acquisition and management activities Circular Similarly, accordance-87,Attachment with M rah income,"and keep the regular CDBG of the land bank may provide sufficient paragraph P definitions of"low-income"and benefit to an area generally(as described 31,HUD is allowing states to incur pre- "moderate income"in use.Further, in 24 CFR 570.208(a)(1)and award costs as if each was a new grantee HUD will characterize aggregated 570.483(b)(1))to meet a national preparing to receive its first allocation of households whose incomes do not objective(LMMA)prior to final CDBG funds.As a new grantee,an NSP exceed 120 percent of median income as disposition of the banked property. allocatee will be allowed to incur costs "low-,moderate-,and middle-income HUD notes that the grantee must necessary to develop the NSP. households,"abbreviated as LMMH.For determine the actual service area substantial action plan amendment and the purposes of NSP CDBG only,an benefiting from a land bank's activities, undertake other administrative actions activity may meet the HERA low-and in accordance with the regulations. necessary to receive its first grant,prior moderate-income national objective if However,HUD does not believe the to the costs being included in the final the assisted activity: benefits of just holding property are plan,provided that the other conditions • Provides or improves permanent sufficient to stabilize most of 24 CFR 570.200(h)are met. (For units residential structures that will be neighborhoods or that this is the best of general local government(including occupied by a household whose income use of limited NSP funds absent a re-use entitlements not receiving a direct NSP is at or below 120 percent of area plan.Therefore,HUD is requiring that a allocation under this notice)applying to median income(abbreviated as LMMH); land bank may not hold a property for the state,24 CFR 570.489(b)applies • Serves an area in which at least 51 more than 10 years without obligating unmodified.) percent of the residents have incomes at the property for a specific,eligible 58336 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices redevelopment of that property in superseded and 24 CFR 570.208(a)and receiving a direct formula allocation of accordance with NSP requirements. 570.483 are waived to the extent funds from HUD under the regular Note that if a state provides funds to necessary to allow the following CDBG program or this notice. an entitlement community,the alternative requirements: Requirement entitlement community must apply the a.For purposes of NSP only,the term q area median income levels applicable to "low-and moderate-income person"as Alternative requirement for its regular CDBG program geography it appears throughout the CDBG distribution to CDBG metropolitan and not the"balance of state"levels. regulations at 24 CFR part 570 shall be cities,urban counties,and Tribes.In Other than the change in the defined as a member of a low-, accordance with the direction of HERA applicable low-and moderate-income moderate-,and middle-income that grantees distribute funds to the qualification level from 80 percent to household,and the term"low-and areas of greatest need,HUD is providing 120 percent,the area benefit,housing, moderate-income household"as it an alternative requirement to 42 U.S.C. jobs,and limited clientele benefit appears throughout the CDBG 5302(a)(7)(definition of requirements at 570.208(a)and regulations shall be defined as a "nonentitlement area")and waiving 570.483(b)remain unchanged,as does household having an income equal to or provisions of 24 CFR part 570,including the required documentation. less than 120 percent of area median 24 CFR 570.480(a),that would prohibit The other NSP low-and moderate income,measured as 2.4 times the states electing to receive CDBG funds income related provision states that: current Section 8 income limit for from distributing such funds to units of "not less than 25 percent of the funds households below 50 percent of median general local government in entitlement appropriated or otherwise made income,adjusted for family size.A state communities or to Tribes.The available under this section shall be choosing to carry out an activity directly appropriations law supersedes the used for the purchase and must apply the requirements of 24 CFR statutory distribution prohibition at 42 redevelopment of abandoned or 570.208(a)to determine whether the U.S.C. 5306(d)(1)and(2)(A). foreclosed homes or residential activity has met the low-,moderate, Alternatively,the state is required to properties that will be used to house and middle income(I_MMI)national distribute funds without regard to a individuals or families whose incomes objective and must maintain the local government status under any other do not exceed 50 percent of area median documentation required at 24 CFR CDBG program and must use funds in income." 570.506 to demonstrate compliance to entitlement jurisdictions if they are HUD advises grantees to take note of HUD identified as areas of greatest need, this new threshold as they design NSP b.The national objectives related to regardless of whether the entitlement activities.This provision does not have prevention and elimination of slums receives its own NSP allocation. a parallel in the regular CDBG program. and blight and addressing urgent G.State's Direct Action 1 Grantees must document that an amount equal to at least 25percent of a grantee's community development needs(24 CFR q 570.208(b)and(c)and 570.483(c)and Background NSP grant(initial allocation plus any (d))are not applicable to NSP-assisted In the State CDBG program,states reallocations)has been budgeted in the activities. receiving CDBG funds may not directly initial approved action plan substantial c.Each grantee whose plan includes use the funds for activities,but must amendment for activities that will assisting rental housing shall develop distribute them to units of general local provide housing for income-qualified and make public its definition of government,which then use the funds individuals or families.Prior to and at affordable rents for NSP-assisted rental for program activities.States may still grant closeout,HUD will review projects. use this"method of distribution" grantees for compliance with this d.An NSP-assisted property may not program model under NSP,but HUD provision by determining whether at be held in a land bank for more than 10 reminds the states of the 18-month least 25 percent of grant funds have years without obligating the property for "use"requirement.HUD also notes the been expended for housing for a specific,eligible redevelopment of that language of section 2301(c)that says,in individual households whose incomes property in accordance with NSP part,that: do not exceed 50 percent of area median requirements. income. Any State* *that receives amounts F. State Distribution to Entitlement pursuant to this section shall* * *use such Requirements amounts to purchase and redevelop* * *. Communities and Indian Tribes 1.Overall benefit supersession and Background This clearly speaks to the states using alternative requirement.The funds directly for projects and requirements at 42 U.S.C.5301(c),42 This notice includes an alternative supersedes the HCD Act direction for U.S.C.5304(b)(3)(A), 24 CFR 570.484 requirement to the HCD Act and a states to only distribute funds to (for states),and 24 CFR 570.200(a)(3) regulatory waiver allowing distribution nonentitlement areas.Direct use of that 70 percent of funds are for activities of funds by a state to CDBG regular funds by a state may also result in more that benefit low-and moderate-income entitlement communities and Tribes. expeditious use of NSP funds. - persons are superseded and replaced by This is consistent with the provision of Therefore,a state receiving NSP funds section 2301(f)(3)(A)of HERA.One HERA that specifically sets distribution may carry out NSP activities directly for - hundred percent of NSP funds must be priorities for areas with the greatest some or all of its assisted grant used to benefit individuals and need,including"metropolitan areas, activities,just as CDBG entitlement households whose income does not metropolitan cities,urban areas,rural communities do under 24 CFR exceed 120 percent of area median areas,low-and moderate-income areas 570.200(f),including,but not limited to, income.NSP shall refer to such * * *"Therefore,states receiving carrying out activities using its own households as "low-,moderate-,and allocations under this notice may employees,procuring contractors, middle-income." distribute funds to or within any private developers,and providing loans 2.National objectives supersession jurisdiction within the state that is and grants through nonprofit and alternative requirements.The among those with the greatest need, subrecipients(including local requirements at 42 U.S.0 5301(c)are even if the jurisdiction is among those governments and other public .) percent of the residents have incomes at the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58337 nonprofits such as regional or local statutes,regulations,waivers and long-established CDBG rules and . planning or development authorities alternative requirements,and other controls.The table in the requirements and public housing authorities). federal requirements,the content of paragraph below shows the eligible uses For those activities a state chooses to records maintained by the state shall be under NSP and the corresponding carry out directly,HUD strongly advises sufficient to:(1)Enable HUD to make eligible activities from the regulations 1 the state to adopt the recordkeeping the applicable determinations described for the regular CDBG entitlement I required for an entitlement community at 24 CFR 570.493;(2)make compliance program that HUD has determined best at 570.506 and the subrecipient determinations for activities carried out correspond to those uses.If a grantee agreement provisions at 570.503,Also, directly by the state;and(3)show how creates a program design that includes in such cases,as an alternative activities funded are consistent with the a CDBG-eligible activity that is not requirement to 42 U.S.C.5304(i),the descriptions of activities proposed for shown in the table to support an NSP- state may retain and re-use program funding in the action plan.For fair eligible use,the Department is income as if it were an entitlement housing and equal opportunity providing an alternative requirement to community. purposes,and as applicable,such 42 U.S.C.5305(a)that HUD may allow HUD is granting regulatory waivers of records shall include data on the racial, a grantee an additional eligible-activity State CDBG regulations to conform the ethnic,and gender characteristics of category if HUD finds the activity to be applicable management,real property persons who are applicants for, in compliance with the NSP statute.As change of use,and recordkeeping rules participants in,or beneficiaries of the under the regular CDBG program, when a state chooses to carry out grantees may fund costs,such as activities as if it were an entitlement program.4.State compliance with certifications reasonable developer's fees,related to community. for state grantees acting directly.This is NSP-assisted housing rehabilitation or Requirements a conforming change related to the construction activities.NSP funds may 1.Responsibility for state review and waiver to allow a state to act directly. be used to redevelop acquired property .This Because a state grantee under this for nonresidential uses,such as a public handling of noncompliance chan a conforms NSP re ui This s appropriation may carry out activities park,commercial use,or mixed g q directly,HUD is applying the residential and commercial use. with the waiver allowing the state to regulations at 24 CFR 570.480(c)with The annual entitlement CDBG carry out activities directly. 24 CFR respect to the basis for HUD program allows up to 20 percent of any 2 is waived and the following ant amount plus program income may determining whether the state has failed gr alternative requirement applies:The to carry out its certifications,so that be used for general administration and state shall make reviews and audits, such basis shall be that the state has planning costs.The State CDBG including on-site reviews of any failed to carry out its certifications in program is also subject to the 20 percent subrecipients, designated public limitation,but within that cap up to 3 complianceith applicable program w agencies,and units of general local requirements. percent may be used by the state for government as may be necessary or 5.Clarifying note on the process for• state administrative cost and technical appropriate to meet the requirements of environmental release of funds when a assistance to potential local government 42 U.S.C.5304(e)(2),as amended,as State carries out activities directly. program grant recipients,with the modified by this notice.In the case of Usually,a state distributes CDBG funds remainder available to be granted to noncompliance with these to units of local government and takes local government recipients for their requirements,the state shall take such administrative costs.Because some of actions as maybe appropriate to revent on HUD's role in receiving P environmental certifications from the the costs usually allocated under these a continuance of the deficiency,mitigate grant recipients and approving releases caps are not applicable to NSP grants any adverse effects or consequences, of funds.For this grant,HUD will allow (for example,the costs of completing the and prevent a recurrence.The state shall a state grantee to also carry out activities entire consolidated plan process),these establish remedies for noncompliance amounts seem excessive to HUD in the directly instead of distributing them to by any designated public agencies or other governments.According to the context of the NSP program.On the units of general local governments and environmental regulations at 24 CFR other hand,HUD wants to encourage for its subrecipients. and support expeditious,appropriate, 2.Change of use of real property for 58.4,when a state carries out activities g p p ty directly,the state must submit the state grantees acting directly.This and compliant use of grant funds,and certification and request for release of to prevent fraud,waste,and abuse of waiver conforms the change of use of funds to HUD for approval. funds.Therefore,HUD is providing an real property rule to the waiver allowing alternative requirement that an amount a state to carry out activities directly. H,Eligibility and Allowable Costs of up to 10 percent of an NSP grant For purposes of this program,in 24 CFR Background provided to a jurisdiction and of up to 570.489(j), (j)(1),and the last sentence of 10 percent of program income earned (j)(2),"unit of general local Most of the activities eligible under may be used for general administration government"shall be read as"unit of NSP represent a subset of the eligible and planning activities as those are - general local government or state." activities under 42 U.S.C. 5305(a).Due defined at 24 CFR 570.205 and 206.For 3.Recordkeeping for a state grantee to limitations in the reporting system, all grantees,including states,the 10 - acting directly.Recognizing that the DRGR,the NSP-eligible uses must be percent limitation applies to the grant as state may carry out activities directly, 24 correlated with CDBG-eligible activities. a whole. CFR 570.490(b)is waived in such a case The alternative to this approach,using The regulatory and statutory and the following alternative provision a paper-based action plan and reporting requirements for state match for shall apply:State records.The state process using NSP-eligible uses only program administration at 24 CFR _ shall establish and maintain such would be much slower to implement. 570.489(a)(i)are superseded by the records as may be necessary to facilitate This correlation also reduces statutory direction at section 2301(e)(2) review and audit by HUD of the state's implementation risks,because it will that no matching funds shall be required administration of NSP funds under 24 ensure that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, 58338 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices Requirements 3.a,Certain CDBG-eligible activities below)or with permission granted,in 1.Use ofgrant funds must constitute correlate to specific NSP-eligible uses writing,by HUD upon a written request and vice versa.42 U.S.C.5305(a)and 24 by the grantee that demonstrates that the an eligible use under HERA. CFR 570.201-207 and 482(a)through(d) proposed activity constitutes an eligible 2.In addition to being an eligible NSP are superseded to the extent necessary use under NSP,All NSP grantees, use of funds,each activity funded under to allow the eligible uses described. including states,will use the NSP this notice must also be CDBG-eligible under section 2301(c)(3)of HERA in categories and CDBG entitlement under 42 U.S.C. 5305(a)and meet a accordance with this paragraph regulations listed below. CDBG national objective. (including the table and subparagraphs NSP-eligible uses Correlated eligible activities from the CDBG entitlement regulations (A)Establish financing mechanisms for purchase and redevelopment of • As part of an activity delivery cost for an eligible activity as defined in foreclosed upon homes and residential properties, including such 24 CFR 570.206. mechanisms as soft-seconds, loan loss reserves, and shared-equity • Also,the eligible activities listed below to the extent financing mech- loans for low-and moderate-income homebuyers. anisms are used to cany them out. (B) Purchase and rehabilitate homes and residential properties that • 24 CFR 570.201(a)Acquisition have been abandoned or foreclosed upon, in order to sell, rent, or (b)Disposition, redevelop such homes and properties. (i) Relocation,and (n)Direct homeownership assistance(as modified below); • 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (C)Establish land banks for homes that have been foreclosed upon 24 CFR 570.201(a)Acquisition and(b)Disposition. (D)Demolish blighted structures • 24 CFR 570.201(d)Clearance for blighted structures only. (E)Redevelop demolished or vacant properties • 24 CFR 570.201(a)Acquisition, (b)Disposition, (c)Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or ten- ants of the redeveloped properties, (i) Relocation,and (n)Direct homeownership assistance(as modified below). • 204 Community based development organizations. b. HUD will not consider requests to NSP funds under this 10 percent neighborhoods in the short-term,but to allow foreclosure prevention activities, limitation to provide technical strategically incorporate modern,green or to allow demolition of structures that assistance to local governments and building and energy-efficiency are not blighted,or to allow purchase of nonprofit program participants.) improvements in all NSP activities to residential properties and homes that provide for long-term affordabilityand I.Rehabilitation Standards have not been abandoned or foreclosed increased sustainability and upon as provided in HERA and defined Background attractiveness of housing and in this notice.HUD does not have the neighborhoods. HERAprovides thatNSP-assisted g authority to permit uses or activities not any authorized by HERA. rehabilitation of a foreclosed-upon J.Sale of Homes home c.New construction of housing is or residential property shall be to Background eligible as part of eligible-use(E)to the extent necessary to comply with redevelop demolished or vacant applicable laws,codes,and other Section 2301(d)(2)of HERA directs properties. requirements relating to housing safety, that,if an abandoned or foreclosed-upon d. 24 CFR 5 70.201(n)is waived and quality,and habitability,in order to sell, home or residential property is an alternative requirement provided for rent,or redevelop such homes and purchased,redeveloped,or otherwise 42 U.S.C.5305(a)to the extent necessary properties.This imposes a requirement, sold to an individual as a primary to allow provision of NSP-assisted that does not exist in the CDBG residence,then such sale shall be in an homeownership assistance to persons program.This means that each grantee amount equal to or less than the cost to whose income does not exceed 120 must describe or reference in its NSP acquire and redevelop or rehabilitate percent of median income. action plan amendment what such home or property up to a decent, 4.Alternative requirement for the rehabilitation standards it will apply for safe,and habitable condition.(Sales and limitation on planning and NSP-assisted rehabilitation.HUD will closing costs are eligible NSP - administrative costs. 24 CFR 570.200(g) monitor to ensure the standards are redevelopment or rehabilitation costs.) and 570.489(a)(3)are waived to the implemented. Note that the maximum sales price for extent necessary to allow each grantee HERA defines rehabilitation to a property is determined by aggregating under this notice to expend no more include improvements to increase the all costs of acquisition,rehabilitation, • than 10 percent of its grant amount,plus energy efficiency or conservation of and redevelopment(including related 10 percent of the amount of program such homes and properties or to provide activity delivery costs,which generally income received by the grantee,for a renewable energy source or sources for may include,among other items,costs activities eligible under 24 CFR 570.205 such homes and properties.Such related to the sale of the property). or 206.The requirements at 24 CFR improvements are also eligible under Requirements 570.489 are waived to the extent that the regular CDBG program.HUD they require a state match for general strongly encourages grantees to use NSP 1.In its records,each grantee must administrative costs. (States may use funds not only to stabilize maintain sufficient documentation BG entitlement households whose income does not metropolitan cities,urban areas,rural communities do under 24 CFR exceed 120 percent of area median areas,low-and moderate-income areas 570.200(f),including,but not limited to, income.NSP shall refer to such * * *"Therefore,states receiving carrying out activities using its own households as "low-,moderate-,and allocations under this notice may employees,procuring contractors, middle-income." distribute funds to or within any private developers,and providing loans 2.National objectives supersession jurisdiction within the state that is and grants through nonprofit and alternative requirements.The among those with the greatest need, subrecipients(including local requirements at 42 U.S.0 5301(c)are even if the jurisdiction is among those governments and other public .) percent of the residents have incomes at the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58339 • about the purchase and sale amounts of acquisitions.While the URA and its and involuntary property acquisition each property and the sources and uses regulations do not require appraisals for activities,even for vacant and of funds for each activity so that HUD such acquisitions,the URA acquisition abandoned property.HUD reminds can determine whether the grantee is in policies do not prohibit acquiring grantees to be aware of the requirement compliance with this requirement.A agencies from obtaining appraisals. to have and follow a residential grantee will be expected to provide this Appendix A,49 CFR 24.101(b)(2) antidisplacement and relocation plan documentation individually for each acknowledges that acquiring agencies for the CDBG and HOME programs.This activity. may still obtain an appraisal to support requirement is not waived for those 2.In determining the sales price their determination of fair market value. programs and continues to apply to limitation,HUD will not consider the Section 2301(d)(1)of HERA requires an activities assisted with regular CDBG costs of boarding up,lawn mowing, appraisal for purposes of determining and HOME funds. simply maintaining the property in a the statutory purchase discount.This Requirements static condition,or,in the absence of appraisal requirement applies to any NSP-assisted rehabilitation or NSP-assisted acquisition of a foreclosed- 1.The one-for-one replacement redevelopment of the property,the costs upon home or residential property requirements at 24 CFR 570.488, of completing a sales transaction or (including voluntary acquisitions). 570.606(c),and 42.375 are waived for other disposition to be redevelopment One-for-One Replacement.HUD is low-and moderate-income dwelling or rehabilitation costs.These costs may providing an alternative requirement to units demolished or converted in not be included by the grantee in the the one-for-one replacement connection with an activity assisted determination of the sales price for an requirements set forth in 42 U.S.C. with NSP funds.As an alternative NSP-assisted property. 5304(d)(2),as implemented at 24 CFR requirement to 42 U.S.C. 3.For reporting purposes only,for a 42.375.The Department anticipates a 5304(d)(2)(A)(i)and(ii),each grantee housing program involving multiple large number of requests from grantees planning to demolish or convert any single-family structures under the for whom the requirements will be low-and moderate-income dwelling management of a single entity,HUD will onerous given the pressing rush to units as a result of NSP-assisted permit reporting the aggregation of implement NSP,and several of the activities must identify all of the activity delivery costs across the total major housing markets affected by the following information in its NSP portfolio of projects until completion of foreclosure crisis have a surplus of substantial amendment: the program or closeout of the grant abandoned and foreclosed-upon (a)The number of low-and moderate- with HUD,whichever comes earlier. residential properties.The additional income dwelling units reasonably expected workload of reviewing requests under to be demolished or converted as a direct 1 K.Acquisition and Relocation 42 U.S.C.5304(d)(3)and 24 CFR result of NSP-assisted activities; Background 42.375(d)could cause a substantial (b)The number of NSP affordable housing backlog at HUD and delay NSP program units(made available to low-,moderate-,and Acquisition of Foreclosed-Upon operations.Therefore,the alternative middle-income households)reasonably Properties.HUD notes that section requirement is that an NSP grantee will expected to be produced,by activity and 2301(d)(1)of HERA conflicts with qincome level as provided for in DRGR,by not be required to meet the each NSP activity providing such housing section 301(3)of the URA(42 U.S.C. d requirements of 42 U.S.C.5304 ,as regulatory q ( ) (including a proposed time schedule for 4651)and related re g y implemented at 24 CFR 42.375,to commencement and completion);and requirements at 49 CFR 24.102(d).As provide one-for-one replacement of low- (c)The number of dwelling units discussed further,section 2301(d)(1)of and moderate-income dwelling units reasonably expected to be made available for HERA requires that any acquisition of a demolished or converted in connection households whose income does not exceed foreclosed-upon home or residential with activities assisted with NSP funds. 50 percent of area median income. property under NSP be at a discount Alternatively,each grantee must submit The grantee must also report on actual from the current market-appraised value the information described below performance for demolitions and of the home or property and that such relating to its demolition and production,as required elsewhere in discount shall ensure that purchasers conversion activities in its action plan this notice. are paying below-market value for the substantial amendment.The grantee home or property.Section 301 3 of the L.Note on Eminent Domain P P Y� ( ) will report to HUD and citizens(via URA,as implemented at 49 CFR prominent posting of the DRGR reports Although section 2303 of HERA 24.102(d),provides that an offer of just on the grantee's official Internet site)on appears to allow some use of eminent compensation shall not be less than the progress related to these measures until domain for public purposes,HUD agency's approved appraisal of the fair the closeout of its grant with HUD. cautions grantees that section 2301(d)(1) market value of such property.These As noted earlier,HUD does not have may effectively ensure that all NSP- URA acquisition policies apply to any the authority to waive or specify assisted property acquisitions must be acquisition of real property for a alternative requirements to the URA's voluntary acquisitions as the term is federally funded project,except for acquisition policies or relocation defined by the URA and its - acquisitions described in 49 CFR provisions.Those requirements that do implementing regulations.Section 24.101(b)(1)through(5)(commonly not conflict with HERA continue to 2301(d)(1)directs that any purchase of referred to as"voluntary acquisitions"). apply.HUD is not specifying alternative a foreclosed-upon home or residential _ As the more recent and specific requirements to the relocation property under NSP be at a discount statutory provision,section 2301(d)(1) assistance provisions at 42 U.S.C. from the current market appraised value of HERA prevails over section 301 of the 5304(d).Guidance on meeting these of the home or property and that such URA for purposes of NSP-assisted requirements is available on the HUD discount shall ensure that purchasers acquisitions of foreclosed-upon homes Web site and through local HUD field are paying below-market value for the or residential properties. offices.HUD urges grantees to consider home or property.However,the Fifth NSP Appraisal Requirements.As URA requirements in designing their Amendment to the U.S.Constitution noted above,section 301 of the URA programs and to remember that there are provides that private property shall not does not apply to voluntary URA obligations related to voluntary be taken for public use without just e that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, 58340 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices compensation.The Supreme Court has (expenditures)and unliquidated or subrecipient on or after July 30,2013, ruled that a jurisdiction must pay fair obligations for approved activities that, that is generated by activities carried out market value for the purchase of in the aggregate,are at least equal to the pursuant to Section 2301(c)(3)(B)and property through eminent domain.A NSP allocation.(The DRGR system (E)(e.g„proceeds from the sale of rental grantee contemplating using NSP funds collects information on expenditures housing by a state,unit of general local to assist an acquisition involving an and obligations.) government,or subrecipient)and is not eminent domain action is advised to 2.Timely expenditure of NSP funds. authorized to be retained as described consult appropriate legal counsel before The timely distribution or expenditure below must be remitted to HUD for taking action. requirements of sections 24 CFR deposit in the Treasury.Any program M. Timeliness of Use and Expenditure 570.494 and 570.902 are waived to the income received by a state,unit of of NSP Funds extent necessary to allow the following general local government,or alternative requirement:All NSP subrecipient on or after July 30,2013, Background grantees must expend on eligible NSP that is generated by activities carried out One of the most critical NSP activities an amount equal to or greater pursuant to Section 2301(c)(3)(B)and provisions is the HERA requirement at than the initial allocation of NSP funds (E)and that is in excess of the cost to section 2301(c)(1)that any grantee within 4 years of receipt of those funds acquire and redevelop or rehabilitate an receiving a grant: or HUD will recapture and reallocate the abandoned or foreclosed-upon home or amount of funds not expended. residential property may be retained if * * *shall,not later than 18 months after HUD approves a request to use the the receipt of such amounts,use such N.Alternative Requirement for Program funds for other NSP purposes.Note that amounts to purchase and redevelop Income(Revenue)Generated by no profit can be earned on the sale of abandoned and foreclosed homes and Activities Assisted With Grant Funds on home an abandoned or foreclosed-upon residential properties. p HUD has defined the term"use"in Requirement or residential property to an individual this notice to include obligation of Revenue received by a state,unit of as a primary residence; as provided funds. general local government,or under Section 2301(c)(3),the sale must A further complication is that HERA subrecipient(as defined at 24 CFR be in an amount equal to or less than the clearly expects grantees to earn program 570.500(c))that is directly generated cost to acquire and redevelop or I income under this grant program.As from the use of CDBG funds(which rehabilitate the home or property up to provided under 24 CFR 85.21 for term includes NSP grant funds) a decent,safe,and habitable condition. entitlements,grantees and subrecipients constitutes CDBG program income.To Example:A unit of general local shall disburse program income before ensure consistency of treatment of such government acquires a foreclosed-upon requesting additional cash withdrawals revenue,the definition of program multi-family residential property for from the U.S.Treasury.States are income at 24 CFR 570.500(a)shall be $100,000,spends$100,000 to redevelop the governed similarly by 24 CFR 489(e)(3) applied to amounts received by states, property,and sells the property for$225,000. 013, and 31 CFRpart 205.This requirement units of general local government,and If thehe sale to to be remittedo r after July)by the q amount to be to HUD the is reflected in the regulations governing subrecipients.However,Section state or unit of general government is use of program income by States and 2301(d)(4)imposes certain limitations $200,000 if HUD authorizes the profit of units of general local government under and requirements that necessitate an $25,000 to be used for other NSP purposes, the CDBG program.This means that a alternative requirement to govern the or$225,000 if HUD does not authorize such grantee that successfully and quickly use of program income generated by use. deploys its program and generates activities carried out pursuant to c.Revenue received by a private program income may obligate,draw Section 2301(c).The limitations and individual or other entity that is not a down,and expend an amount equal to requirements are based on the NSP subrecipient. its NSP allocation amount,and still activity that generated the program have funds remaining in its line of income and on the date the income is i.Any revenue generated by activities credit,possibly subject to recapture at received.In addition,Section 2301(d)(4) carried out pursuant to Section the 18-month deadline, requires any revenue from the sale, 2301(c)(3)(B)and(E)that is in excess of On consideration,the Department rental,redevelopment,rehabilitation or the cost to acquire and redevelop chose to implement the use test based any other eligible use of NSP funds to (including reasonable development fees) on whether the state or unit of general be provided to and used by the state or or rehabilitate an abandoned or local government has expended or unit of local general government.This foreclosed upon home or residential obligated the NSP grant funds and includes revenue received by a private property must be provided to the state program income in an aggregate amount individual or other entity that is not a or unit of general local government and at least equal to the NSP allocation. subrecipient. treated as program income.The HUD is also imposing a deadline for 1.Program income generated by disposition of the program income by expending NSP grant funds because the activities carried out pursuant to the state or unit of general local intent of these grants clearly is to Section 2301(c)(3)(B)and(E). government is governed by a.and b. _ quickly address an emergency situation a.Program income received before above. in areas of the greatest need. July 30,2013,may be retained by the ii.Any revenue that is generated by Requirements state or unit of general local government activities carried out pursuant to if it is treated as additional CDBG funds Section 2301(c)(3)(B)and(E)and is 1.Timely use of NSP funds.At the and used in accordance with the received on or after July 30,2013,shall _ end of the statutory 18-month use requirements of Section 2301. be provided to the State or unit of period,which begins when the NSP b.Program income received on or general local government and treated as grantee receives its funds from HUD,the after July 30,2013—Return to the program income.The disposition of the state or unit of general local government Treasury. program income by the state or unit of NSP grantee's accounting records and Any program income received by a general local government is governed by DRGR information must reflect outlays state,unit of general local government, b.above. noted above,section 301 of the URA programs and to remember that there are provides that private property shall not does not apply to voluntary URA obligations related to voluntary be taken for public use without just e that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58341 Example:A unit of general local promptly if a grantee lags in prescribes,no later than 30 days government uses NSP funds to make a loan implementation and risks recapture of following the end of each quarter, (or grant)to a developer to finance the its grant funds.For NSP only,HUD is beginning 30 days after the completion acquisition and rehabilitation of a foreclosed- waiving the annual reporting of the first full calendar quarter after upon multi-family residential property.The requirements of the consolidated plan to grant award and continuing until the developer uses$200,0in NSP funds(loan allow HUD to collect more regular end of the 15th month after initial or grant)from thee unit unit o of general local g government to pay the total costs of information on various aspects of the receipt of grant funds. In addition to this acquisition and rehabilitation(including uses of funds and of the activities quarterly performance reporting,each reasonable development fees)and funded with these grants.HUD will use grantee will report monthly on its NSP subsequently sells the property for$225,000. the reports to exercise oversight for obligations and expenditures beginning The developer is required to provide compliance with the requirements of 30 days after the end of the 15th month $225,000 to the unit of general local this notice and for prevention of fraud, following receipt of funds,and government.(If the NSP funding was a loan, waste,and abuse of funds. continuing until reported total the sale proceeds would be used to repay the The regular CDBG performance obligations are equal to or greater than NSP loan.)If the sale occurs on or after July measurement requirements will not the total NSP grant.After HUD has 30,2013,the unit of general local apply to the he NSP funds.To the extent accepted grantee government must remit$225,000 to HUD forP a report from a deposit in the United States Treasury,unless feasible,HUD will configure DRGR showing such obligation of funds,the HUD approves a request to use$25,000 of performance measures to fit the NSP monthly reporting requirement will end that amount for other NSP purposes.If in this activities and will provide additional and quarterly reports will continue until same example,the developer received guidance on NSP performance all NSP funds(including program $100,000 of NSP funding and used$100,000 measures. income)have been expended and those of its own funds for eligible costs,the . To collect these data elements and to expenditures are included in a report to revenue to be provided to the local meet its reporting requirements,HUD is HUD,or until HUD issues other government would be$125,000. requiring each grantee to report on its instructions pursuant to paragraph b.ii. 2.Program income generated by NSP funds to HUD using the online below.Each report will include activities carried out pursuant to DRGR system,which uses a information about the uses of funds, Section 2301(c)(3)(A),(C)and(E). streamlined,Internet-based format.HUD including,but not limited to,the project Program income received may be . will use grantee reports to monitor for name,activity,location,national retained by the State or unit of general anomalies or performance problems that objective,funds budgeted and local government if it is treated as suggest fraud,waste,and abuse of expended,the funding source and total additional CDBG funds and used in funds;to reconcile budgets,obligations, amount of any non-NSP funds,numbers accordance with the requirements of fund draws,and expenditures;to of properties and housing units, Section 2301.Revenue received ba calculate applicable administrative and beginning and endingdates of activities, private individual or other entity that is public service limitations and the and numbers of low-and moderate- not a subrecipient must be returned to overall percent of benefit to LMMI income persons or households the State or unit of general local persons;and as a basis for risk analysis benefiting.Reports must be submitted government. in determining a monitoring plan. using HUD's web-based DRGR system 3. Cash management.Substantially all The grantee must post the NSP report and,at the time of submission,be program income must be disbursed for on a Web site for its citizens when it posted prominently on the grantee's eligible NSP activities before additional submits the report to HUD(DRGR official Web site. cash withdrawals are made from the generates a version of the report that the ii.During the winter of 2008-2009, U.S.Treasury. grantee can download,save,and post). HUD is undertaking a major 4. Agreements with subrecipients and Requirements enhancement of DRGR,initiated as part other entities.States and units of of a series of improvements designed to 1.Performance report alternative prevent fraud,waste,and abuse of funds general local governments must incorporate in subrecipient agreements requirement.The Secretary may specify in the Gulf Coast CDBG disaster such provisions as are necessary to the form and timing of reports provided recovery programs,whose grantees are ensure compliance with the by the grantee under both 42 U.S.C. reporting on the uses of more than$19 requirements of this paragraph, 5304(e)(the HCD Act)and 42 U.S.C. billion of CDBG disaster recovery funds including the requirement that program 12708(NAHA).Therefore,the through DRGR.Prior to roll-out of the income described in N.1.(b)be remitted consolidated plan regulation at 24 CFR enhancement,NSP grantees will use the to HUD for deposit in the Treasury. 91,520 is waived and the alternative Voice Response System(VRS)to access States,units of general local reporting form and timing for the NSP the line of credit and will prepare and government,and subrecipients must funds is that: submit action plans and performance incorporate in agreements with private a.Each grantee must enter its NSP reports through DRGR.After this individuals and other entities that are i Acton Plan amendment into HUD's enhancement is complete,grantees also not subrecipients such provisions as are web-based DRGR system in sufficient will be able to access their lines of necessary to ensure compliance with the detail to meet the NSP action plan credit through DRGR.At that time,HUD content requirements governing disposition of requirements of this notice and will issue updated guidance on all to serve as the basis for acceptable DRGR reporting and require most revenue generated by activities carried performance reports.(Because DRGR activity data to be updated on a out pursuant to Section 2301(c). was not specifically redesigned for the transactional basis. O.Reporting NSP,HUD field staff will provide grantees with specific technical P.Note That FHA Properties Are - Background assistance on where in DRGR the Eligible for NSP Acquisition and HUD is requiring regular reporting on required NSP narrative and data Redevelopment each NSP grant in the DRGR system to elements must be placed.) The Department notes that it is an ensure the Department gets sufficient b.i.Each grantee must submit a eligible use of CDBG grant funds to management information to follow-up quarterly performance report,as HUD acquire and redevelop FHA foreclosed be taken for public use without just e that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, 58342 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices properties.The Department strongly individual property is determined.If the NSP-eligible use and benefit to income- urges every community to consider and state,unit of general local government, qualified persons. include such properties under their NSP or subrecipient determines the discount 3.The address,appraised value, programs because the nature and through use of a methodology that purchase offer amount,and discount location of many of these homes will incorporates the factors discussed above amount of each property purchase must make them very compatible with the (keeping in mind that the discount must be documented in the grantee's program eligible uses of grant funds,the areas of be at least 5 percent),then the minimum records. greatest need,and the income eligibility average discount for the NSP portfolio is R.Removal of Annual Requirements thresholds and limits.Furthermore,in 10 percent.If not,the minimum average many areas,FHA foreclosed properties discount is 15 percent.Recipients and Requirement will be available for purchase at below- subrecipients are cautioned that a Throughout 24 CFR parts 91 and 570, market value to meet HERA purchase discount negotiated with the all references to"annual"requirements requirements.FHA provides quick seller on an individual property that is such as submission of plans and reports access to location,condition,and sales below the minimum average discount are waived to the extent necessary to price information;FHA may also offer requirement must be offset by a allow the provisions of this notice to expedited closing time frames.These purchase discount that is above the apply to NSP funds,with no recurring factors may help expedite NSP fund use. minimum average discount. annual requirements other than those HUD will provide technical assistance Requirements related to civil rights and fair housing on its Web site regarding how these certifications and requirements. programs can effectively interact. l.a.Individual purchase transaction. Grantees may also contact their local Each foreclosed-upon home or S.Affirmatively Furthering Fair Housing HUD FHA field office for further residential property shall be purchased Nothing in this notice may be information. at a discount of at least 5 percent from construed as affecting each grantee's Q.Purchase Discount the current market-appraised value of responsibility to carry out its the home or property. certification to affirmatively further fair Background b.Purchase transactions in the housing.HUD encourages each grantee Section 2301(d)(1)limits the purchase aggregate.Except as set forth below,the to review its analysis of impediments to price of a foreclosed home,as follows: average purchase discount for all fair housing choice to determine Any purchase of a foreclosed upon home properties purchased with NSP funds whether an update is necessary because or residential property under this section during the 18-month use period shall be of current market conditions or other shall be at a discount from the current market at least 15 percent.The average factors. appraised value of the home or property, purchase discount shall be at least 10 T.Certifications taking into account its current condition,and percent if the state,unit of general local such discount shall ensure that purchasers government,or subrecipient determines Background are paying below-market value for the home the maximum reasonable discount for HUD is substituting alternative or property. each purchase transaction through use certifications.The alternative To ensure that uncertainty over the of a methodology that results in a certifications are tailored to NSP grants meaning of this section does not delay discount equivalent to the total carrying and remove certifications and references program implementation,HUD is costs that would be incurred by the that are appropriate only to the annual defining"current market appraised seller if the property were not CDBG formula program. value"in this notice.For mortgagee purchased with NSP funds(provided foreclosed properties,HUD is requiring the discount is at least 5 percent).Such Requirements that grantees seek to obtain the methodology shall provide for an Certifications for states and for "maximum reasonable discount"from analysis of the estimated holding period entitlement communities,alternative the mortgagee,taking into consideration for the property and the nature and requirement.Although the NSP is being likely"carrying costs"of the mortgagee amount of the carrying costs of holding implemented as a substantial if it were to not sell the property to the the property for this period.Such amendment to the current annual action grantee or subrecipient.These likely carrying costs shall include,but not be plan,HUD is requiring submission of carrying costs are different from market limited to:Taxes,insurance, this alternative set of certifications as a to market,and the"maximum maintenance,marketing,overhead,and conforming change,reflecting reasonable discount"is likely to be interest.The procedures to implement alternative requirements and waivers higher in markets where homes are such methodology shall be in writing under this notice.Each jurisdiction will taking many months to more than a year and applied consistently to all submit the following certifications: to sell as compared to markets with purchases.The analysis for each 1.Affirmatively furthering fair shorter average time to sell a property. purchase transaction shall be housing.The jurisdiction certifies that it In recognition of the need for flexibility documented in the grantee's program will affirmatively further fair housing, in administering the purchase discount records. which means that it will conduct an requirement,HUD has adopted an 2.An NSP recipient may not provide analysis to identify impediments to fair approach that requires a minimum NSP funds to another party to finance housing choice within the jurisdiction, discount of 5 percent for each an acquisition of tax foreclosed(or any take appropriate actions to overcome the residential property purchased with other)properties from itself,other than effects of any impediments identified NSP funds and a minimum average to pay necessary and reasonable costs through that analysis,and maintain discount for all properties acquired with related to the appraisal and transfer of records reflecting the analysis and NSP funds over the 18-month HERA use title.A property conveyed in this actions in this regard. period.The minimum average discount manner to a subrecipient,homebuyer, 2.Anti-lobbying.The jurisdiction for the "portfolio"of properties developer,or jurisdiction will be NSP- must submit a certification with regard acquired with NSP funds depends upon assisted and subject to all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58343 together with disclosure forms,if funds are used to pay the proportion of 3520).OMB approval is under OMB required by that part. a fee or assessment attributable to the control number 2506-0165.In 3.Authority of jurisdiction.The capital costs of public improvements accordance with the Paperwork jurisdiction certifies that the (assisted in part with NSP funds) Reduction Act,HUD may not conduct or consolidated plan is authorized under financed from other revenue sources,an sponsor and a person is not required to state and local law(as applicable)and assessment or charge may be made respond to, a collection of information, that the jurisdiction possesses the legal against the property with respect to the unless the collection displays a valid authority to carry out the programs for public improvements financed by a control number. which it is seeking funding,in source other than CDBG funds.In W.Duration of Funding accordance with applicable HUD addition,with respect to properties regulations and other program owned and occupied by moderate- The appropriation accounting requirements. income(but not low-income)families, provisions in 31 U.S.C. 1551-1557, 4.Consistency with plan.The an assessment or charge may be made added by section 1405 of the National jurisdiction certifies that the housing against the property with respect to the Defense Authorization Act for Fiscal activities to be undertaken with NSP public improvements financed by a Year 1991 (Pub.L.101-510),limit the funds are consistent with its source other than NSP funds if the availability of certain appropriations for consolidated plan. jurisdiction certifies that it lacks NSP or expenditure.Such a limitation may not 1 5.Acquisition and relocation.The CDBG funds to cover the assessment. be waived.The appropriations acts for jurisdiction certifies that it will comply 11.Excessive force.The jurisdiction NSP grants direct that these funds be with the acquisition and relocation certifies that it has adopted and is available until expended.However,the requirements of the Uniform Relocation enforcing: Department is imposing a shorter Assistance and Real Property a.A policy prohibiting the use of deadline on the expenditure of NSP Acquisition Policies Act of 1970,as excessive force by law enforcement funds in this notice. amended(42 U.S.C.4601),and agencies within its jurisdiction against Catalog of Federal Domestic Assistance implementing regulations at 49 CFR part any individuals engaged in nonviolent 24,except as those provisions are civil rights demonstrations;and The Catalog of Federal Domestic modified by the notice for the NSP b.A policy of enforcing applicable Assistance numbers for grants made program published by HUD. state and local laws against physically under NSP are as follows:14.218; 6.Section 3.The jurisdiction certifies barring entrance to,or exit from,a 14.225;and 14.228. that it will comply with section 3 of the facility or location that is the subject of Finding of No Significant Impact Housing and Urban Development Act of such nonviolent civil rights 1968(12 U.S.C. 1701u),and demonstrations within its jurisdiction. A Finding of No Significant Impact implementing regulations at 24 CFR part 12.Compliance with anti- with respect to the environment has 135. discrimination laws.The jurisdiction been made in accordance with HUD 7.Citizen participation.The certifies that the NSP grant will be regulations at 24 CFR part 50,which jurisdiction certifies that it is in full conducted and administered in implement section 102(2)(C)of the compliance and following a detailed conformity with Title VI of the Civil National Environmental Policy Act of citizen participation plan that satisfies Rights Act of 1964(42 U.S.C.2000d), 1969(42 U.S.C.4332(C)(2)).The the requirements of Sections 24 CFR the Fair Housing Act(42 U.S.C.3601— Finding of No Significant Impact is 1 91.105 or 91.115,as modified by NSP 3619),and implementing regulations. available for public inspection between requirements. 13.Compliance with lead-based paint 8 a.m.and 5 p.m.weekdays in the 8.Following a plan.The jurisdiction procedures.The jurisdiction certifies Office of the Rules Docket Clerk,Office certifies it is following a current that its activities concerning lead-based of General Counsel,Department of consolidated plan(or Comprehensive paint will comply with the requirements Housing and Urban Development,451 Housing Affordability Strategy)that has of part 35,subparts A,B,J,K,and R of Seventh Street,SW.,Room 10276, been approved by HUD. this title. Washington,DC 20410-0500. 9. Use of funds.The jurisdiction 14.Compliance with laws.The Establishment of Formula certifies that it will comply with Title III jurisdiction certifies that it will comply I hereby establish the funding formula of Division B of the Housing and with applicable laws. Economic Recovery Act of 2008 by set out in Attachment A to this notice. using all of its grant funds within 18 U.Note on Statutory Limitation on Dated:September 29,2008. Distribution of Funds months of receipt of the grant. Steven C.Preston, 10.The jurisdiction certifies: Section 2304 of HERA states that none Secretary. a. that all of the NSP funds made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible • 58344 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices State or unit of general local Association National Delinquency Survey increased with data from the government." Survey(MBA—NDS).Because the MBA— Home Mortgage Disclosure Act to It further directs that"each State shall NDS may have uneven coverage from capture the proportion of total receive not less than 0.5 percent of state-to-state in respect to the total mortgages made within a state made to funds".The allocation formula operates number of mortgages reported,the total investors between 2004 and 2006.The as follows.In this formula,the primary count of mortgages is calculated as the first step of the allocation is to make a data on foreclosure rates,subprime loan number of owner-occupied mortgages "statewide"allocation using the rates,and rates of loans delinquent or in from the 2006 American Community following formula: default come from the Mortgage Bankers Statewide Allocation=$3.92 billion* (State';number of foreclosure starts in last 6 quarters)* (Percent of all loans in state to enter foreclosure last 6 quarters) {[0.70" + National number of foreclosure starts in last 6 quarters Percent of all loans in nation to enter foreclosure last 6 quarters State';number of subprime loans)* ercent of all loans in state subprime 0.15* ( P ) (P P )+ National number of subprime loans Percent of all loans in nation subprime 0.10* (State';number of loans in default(90+days delinquent)* (Percent of all loans in state in default)+ National number of loans in default Percent of all loans in nation in default (Statet number of loans 60 to 89 days delinquent)* (Percent of all loans in state 60 to 89 days delinquent)]* 0.05• National number of loans 60 to 89 days delinquent National percent of all loans 60 to 89 days delinquent (Pct of all addresses in state vacant in Census Tracts where more than 40%of the 2004 to 2006 loans were high costs)) Pct of all addresses in nation vacant in Census Tracts where more than 40%of the 2004 to 2006 loans were high cost This formula allocates 70 percent of aggregated by HUD to the Census Tract allocation,their grant is rolled up into the funds based on the number and level.The residential vacancy the state government grant. percent of foreclosures,15 percent for adjustment factor reflects a state's Note that HUD has determined that subprime loans, 10 percent for loans in vacancy rate relative to the national HERA's direction that a minimum of default(delinquent 90 days or longer), average and cannot increase or decrease $19.6 million be allocated to the state and 5 percent for loans delinquent 60 to a state's proportional share of the means that a minimum grant must be 90 days.The higher weight on allocation based on foreclosures, provided to each state government of foreclosures is based on the emphasis subprime loans,and delinquencies and $19.6 million.As a result,this approach the statute places on targeting foreclosed defaults by more than 10 percent. provides state governments with homes.The percentage adjustments,the Finally,if a statewide allocation is proportionally more funding than their rate of a problem in a state relative to less than$19.6 million,the statewide estimated need.As such,state the national rate of a problem,are grant is increased to$19.6 million. governments should use their best restricted such that a state's allocation Because this approach will result in a judgment to serve both those areas not based on its proportional share of a total allocation in excess of receiving a direct grant and those areas problem cannot be increased or appropriation,all grant amounts above that do receive a direct grant,making decreased by more than 30 percent. $19.6 million are reduced pro-rata to sure that the total of all funds in the Because HERA specifically indicates make the total allocation equal to the state are going proportionally more to P Y those places(as prescribed by HERA): that the funds are needed for the total appropriation. • "With the greatest percentage of "redevelopment of abandoned and From each statewide allocation,a P home foreclosures; foreclosed upon homes and residential substate allocation is made as follows: • With the highest percentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58345 entitlement balances using the following formula: Local Allocation=(Statewide allocation — $19,600,000)* [(Local estimate number of foreclosure starts in last 6 quarters)* State total number of foreclosure starts in last 6 quarters (Local vacancy rate in Census Tracts with more than 40%of the loans High-cost)] State vacancy rate in Census Tracts with more than 40%of the loans High-cost Where the residential vacancy rate communities and they are good foreclosures from the model will equal adjustment cannot increase or reduced a predictors of foreclosure risk,they are the total foreclosure starts in the state local jurisdiction's allocation by more used in a model to calculate the from the Mortgage Bankers Association than 30 percent and the estimated estimated number of foreclosures in National Delinquency Survey. number of foreclosures is calculated each jurisdiction within a state.The As noted above,for entitlement cities based on a predicted foreclosure rate formula used is as follows: and urban counties that would receive times the estimated number of Predicted Foreclosure Rate= —2.211 an NSP allocation of less than$2 mortgages in a community.HUD —(0.131*Percent change in MSA million,the funds are allocated to the analysis shows that 75 percent of the OFHEO current price relative to the state grantee.The District of Columbia variance between states on foreclosure maximum in past 8 years) and the four Insular Areas receive direct rates can be explained by three variables +(0.152*Percent of total loans made allocations and are not subject to the available from public data: between 2004 and 2006 that are minimum grant threshold. • Office of Federal Housing high cost) Because this funding is one-time Enterprise Oversight(OFHEO)data on +(0.392*Percent unemployed in the funding and the eligible activities under change in home values as of June 2008 place our county in June 2008). the program are different enough from compared to peak home value since This predicted foreclosure rate is then the regular program,HUD believes that 2000. multiplied times the estimated number a grantee must receive a minimum • Percent of all loans made between of mortgages within a jurisdiction amount of$2 million to have adequate 2004 and 2006 that are high cost as (number of HMDA loans made between staffing to properly administer the reported in the Home Mortgage 2004 and 2006 times the ratio of ACS program effectively.In addition,fewer Disclosure Act(HMDA). 2006 data on total mortgages in state/ grants will allow HUD staff to more • Unemployment rate as of June 2008 HMDA loans in state).This"estimated effectively monitor grantees to ensure (from Bureau of Labor Statistics). number of mortgages in the proper implementation of the program .Because these three variables are jurisdiction"is further adjusted such and reduce the risk for fraud,waste,and publicly available for all CDBG eligible that the estimated number of abuse. State Grantee name NSP grant amount AK ALASKA STATE PROGRAM $19,600,000 AL ALABAMA STATE PROGRAM 37,033,031 AL BIRMINGHAM 2,580,214 AL JEFFERSON COUNTY 2,237,876 AR ARKANSAS STATE PROGRAM 19,600,000 AZ PHOENIX 39,478,096 AZ ARIZONA STATE PROGRAM 38,370,206 AZ MARICOPA COUNTY 9,974,267 AZ MESA 9,659,665 AZ TUCSON 7,286,911 AZ GLENDALE 6,184,112 AZ PIMA COUNTY 3,086,867 AZ AVONDALE CITY 2,466,039 • AZ CHANDLER 2,415,100 AZ SURPRISE TOWN 2,197,786 CA CALIFORNIA STATE PROGRAM 145,071,506 CA RIVERSIDE COUNTY 48,567,786 CA LOS ANGELES 32,860,870 CA SAN BERNARDINO COUNTY 22,758,188 CA SACRAMENTO COUNTY 18,605,460 CA LOS ANGELES COUNTY 16,847,672 CA SACRAMENTO 13,264,829 CA STOCKTON 12,146,038 CA MORENO VALLEY 11,390,116 CA KERN COUNTY 11,211,385 CA FRESNO 10,969,169 rcentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible 58346 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices State Grantee name NSP grant amount CA STANISLAUS COUNTY 9,744,482 CA SAN DIEGO 9,442,370 CA SAN JOAQUIN COUNTY 9,030,385 CA BAKERSFIELD 8,982,836 CA SAN BERNARDINO 8,408,558 CA OAKLAND 8,250,668 CA MODESTO 8,109,274 CA PALMDALE 7,434,301 CA FRESNO COUNTY 7,037,465 CA LANCASTER 6,983,533 CA RIVERSIDE 6,581,916 CA CONTRA COSTA COUNTY 6,019,051 CA FONTANA 5,953,309 CA SANTA ANA 5,795,151 CA SAN JOSE 5,628,283 CA RIALTO 5,461,574 CA VICTORVILLE 5,311,363 CA SAN DIEGO COUNTY 5,144,152 CA LONG BEACH 5,070,310 CA HESPERIA 4,590,719 CA ANTIOCH 4,049,228 CA CORONA 3,602,842 CA POMONA 3,530,825 CA RICHMOND 3,346,105 CA ORANGE COUNTY 3,285,926 CA COMPTON 3,242,817 CA APPLE VALLEY 3,064,836 CA HEMET 2,888,473 CA CHULA VISTA 2,830,072 CA ONTARIO 2,738,309 CA VALLEJO 2,657,861 CA ANAHEIM 2,653,455 CA ELK GROVE 2,389,651 CA VISALIA 2,388,331 CA RANCHO CUCAMONGA 2,133,397 CA ALAMEDA COUNTY 2,126,927 CO COLORADO STATE PROGRAM 34,013,566 CO DENVER 6,060,170 CO ADAMS COUNTY 4,600,211 CO ............ AURORA 4,474,097 CO COLORADO SPRINGS 3,904,989 CT CONNECTICUT STATE PROG 25,043,385 DC WASHINGTON 2,836,384 DE DELAWARE STATE PROGRAM 19,600,000 FL FLORIDA STATE PROGRAM 91,141,478 FL MIAMI-DADE COUNTY 62,207,200 FL ORANGE COUNTY 27,901,773 FL PALM BEACH COUNTY 27,700,340 FL JACKSONVILLE-DUVAL 26,175,317 FL PASCO COUNTY 19,495,805 FL HILLSBOROUGH COUNTY 19,132,978 FL LEE COUNTY 18,243,867 FL BROWARD COUNTY 17,767,589 FL POLK COUNTY 14,586,258 FL TAMPA 13,600,915 FL PORT ST LUCIE 13,523,132 FL MIAMI 12,063,702 FL ST PETERSBURG 9,498,962 FL MIRAMAR 9,312,658 FL PINELLAS COUNTY 8,063,759 FL HOLLYWOOD 7,534,603 FL COLLIER COUNTY 7,306,755 FL SARASOTA COUNTY 7,140,861 = FL CAPE CORAL 7,065,484 FL SEMINOLE COUNTY 7,019,514 FL MIAMI GARDENS CITY 6,866,119 FL ORLANDO 6,730,263 FL DELTONA 6,635,909 FL MARION COUNTY 6,324,055 FL HIALEAH 5,385,046 FL MANATEE COUNTY 5,283,122 FL BREVARD COUNTY 5,269,667 FL VOLUSIA COUNTY 5,222,831 600,000 AZ PHOENIX 39,478,096 AZ ARIZONA STATE PROGRAM 38,370,206 AZ MARICOPA COUNTY 9,974,267 AZ MESA 9,659,665 AZ TUCSON 7,286,911 AZ GLENDALE 6,184,112 AZ PIMA COUNTY 3,086,867 AZ AVONDALE CITY 2,466,039 • AZ CHANDLER 2,415,100 AZ SURPRISE TOWN 2,197,786 CA CALIFORNIA STATE PROGRAM 145,071,506 CA RIVERSIDE COUNTY 48,567,786 CA LOS ANGELES 32,860,870 CA SAN BERNARDINO COUNTY 22,758,188 CA SACRAMENTO COUNTY 18,605,460 CA LOS ANGELES COUNTY 16,847,672 CA SACRAMENTO 13,264,829 CA STOCKTON 12,146,038 CA MORENO VALLEY 11,390,116 CA KERN COUNTY 11,211,385 CA FRESNO 10,969,169 rcentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58347 State Grantee name NSP grant amount FL PALM BAY 5,208,104 FL TAMARAC 4,772,218 FL ESCAMBIA COUNTY 4,565,918 FL PEMBROKE PINES 4,398,575 FL POMPANO BEACH 4,366,157 FL WEST PALM BEACH 4,349,546 FL LAUDERHILL 4,293,288 FL FT LAUDERDALE 3,700,096 FL SUNRISE 3,494,986 FL CORAL SPRINGS 3,378,142 FL LAKE COUNTY 3,136,967 FL BOYNTON BEACH 2,963,311 FL HOMESTEAD CITY 2,887,010 FL NORTH MIAMI 2,847,089 FL KISSIMMEE 2,371,749 FL — MYE1 S — --2;297;318 FL MARGATE 2,106,555 FL PLANTATION 2,016,309 FL LAKELAND 2,005,781 FL DEERFIELD BEACH 2,005,699 GA GEORGIA STATE PROGRAM 77,085,125 GA DE KALB COUNTY 18,545,013 GA ATLANTA 12,316,082 GA GWINNETT COUNTY 10,507,827 GA FULTON COUNTY 10,333,410 GA CLAYTON COUNTY 9,732,126 GA COBB COUNTY 6,889,134 GA COLUMBUS-MUSCOGEE 3,117,039 GA AUGUSTA 2,473,064 GA SAVANNAH 2,038,631 HI HAWAII STATE PROGRAM 19,600,000 A IOWA STATE PROGRAM 21,607,197 D IDAHO STATE PROGRAM 19,600,000 L CHICAGO 55,238,017 L ILLINOIS STATE PROGRAM 53,113,044 L COOK COUNTY 28,156,321 L DU PAGE COUNTY 5,176,438 L WILL COUNTY 5,160,424 L LAKE COUNTY 4,600,800 L JOLIET • 3,531,810 L MCCHENRY COUNTY 3,085,695 L AURORA 3,083,568 L KANE COUNTY 2,576,369 L ROCKFORD 2,287,004 L ST CLAIR COUNTY 2,262,015 L ELGIN 2,159,623 L CICERO 2,078,351 N INDIANA STATE PROGRAM 83,757,048 N INDIANAPOLIS 29,051,059 N FORT WAYNE 7,063,956 N LAKE COUNTY 5,738,024 N SOUTH BEND 4,098,521 N HAMMOND 3,860,473 N GARY 3,836,758 N EVANSVILLE 3,605,204 N HAMILTON COUNTY 2,343,868 N ELKHART 2,251,346 N KOKOMO 2,181,088 N ANDERSON 2,141,795 N MUNCIE 2,007,356 KS KANSAS STATE PROGRAM 20,970,242 KY KENTUCKY STATE PROGRAM 37,408,788 - KY LOUISVILLE 6,973,721 _ LA LOUISIANA STATE PROGRAM 34,183,994 LA BATON ROUGE 2,308,848 LA NEW ORLEANS 2,302,208 MA MASSACHUSETTS STATE PROG 43,466,030 MA BOSTON 4,230,191 MA .. SPRINGFIELD 2,566,272 MA WORCESTER 2,390,858 MA BROCKTON 2,152,979 MD MARYLAND STATE PROGRAM 28,778,469 MD PRINCE GEORGES COUNTY 10,883,234 UNTY 9,974,267 AZ MESA 9,659,665 AZ TUCSON 7,286,911 AZ GLENDALE 6,184,112 AZ PIMA COUNTY 3,086,867 AZ AVONDALE CITY 2,466,039 • AZ CHANDLER 2,415,100 AZ SURPRISE TOWN 2,197,786 CA CALIFORNIA STATE PROGRAM 145,071,506 CA RIVERSIDE COUNTY 48,567,786 CA LOS ANGELES 32,860,870 CA SAN BERNARDINO COUNTY 22,758,188 CA SACRAMENTO COUNTY 18,605,460 CA LOS ANGELES COUNTY 16,847,672 CA SACRAMENTO 13,264,829 CA STOCKTON 12,146,038 CA MORENO VALLEY 11,390,116 CA KERN COUNTY 11,211,385 CA FRESNO 10,969,169 rcentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible 58348 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices State Grantee name NSP grant amount MD BALTIMORE 4,112,239 MD BALTIMORE COUNTY 2,596,880 ME MAINE STATE PROGRAM 19,600,000 MI MICHIGAN STATE PROGRAM 98,653,915 MI DETROIT 47,137,690 MI WAYNE COUNTY 25,909,153 MI OAKLAND COUNTY 17,383,776 MI MACOMB COUNTY 9,765,375 MI GENESEE COUNTY 7,506,343 MI GRAND RAPIDS 6,187,686 MI LANSING 5,992,160 MI WARREN 5,829,447 MI FLINT 4,224,621 MI KENT COUNTY 3,912,796 MI PONTIAC 3,542,002 MI SOUTHFIELD 3,241,457 MI REDFORD 3,041,364 MI WASHTENAW COUNTY 3,024,719 MI TAYLOR 2,495,056 MI STERLING HEIGHTS 2,454,961 MI DEARBORN 2,436,246 MI LINCOLN PARK 2,417,688 MI CANTON TWP 2,182,988 MI CLINTON TWP 2,147,608 MI WESTLAND 2,061,722 MI WATERFORD TOWNSHIP 2,014,489 MN MINNESOTA STATE PROGRAM 38,849,929 MN MINNEAPOLIS 5,601,967 MN ST PAUL 4,302,249 MN HENNEPIN COUNTY 3,885,729 MN DAKOTA COUNTY 2,765,991 MN ANOKA COUNTY 2,377,310 MO MISSOURI STATE PROGRAM 42,664,187 MO ST LOUIS COUNTY 9,338,562 MO KANSAS CITY 7,323,734 MO ST LOUIS 5,532,792 MS MISSISSIPPI STATE PROG 43,151,914 MS JACKSON 3,116,049 MT MONTANA STATE PROGRAM 19,600,000 NC NORTH CAROLINA STA PROG ... 52,303,004 NC CHARLOTTE 5,431,777 ND NORTH DAKOTA STATE PROG 19,600,000 NE NEBRASKA STATE PROGRAM 19,600,000 NH NEW HAMPSHIRE STATE PROG 19,600,000 NJ NEW JERSEY STATE PROGRAM 51,470,620 NJ NEWARK 3,406,849 NJ UNION COUNTY 2,601,755 NJ PATERSON 2,266,641 NJ JERSEY CITY 2,153,431 NJ BERGEN COUNTY 2,096,194 NM NEW MEXICO STATE PROGRAM 19,600,000 NV NEVADA STATE PROGRAM 24,287,240 NV CLARK COUNTY 22,829,062 NV LAS VEGAS 14,775,270 NV NORTH LAS VEGAS 6,837,736 NV HENDERSON ..... 3,205,044 NY NEW YORK STATE PROGRAM ''• 54,556,464 NY NEW YORK CITY 24,257,740 NY NASSAU COUNTY 7,767,916 NY SUFFOLK COUNTY 5,681,443 NY ISLIP TOWN 3,720,392 NY BABYLON TOWN 2,170,909 NY ORANGE COUNTY 2,163,744 _ OH OHIO STATE PROGRAM 116,859,223 OH COLUMBUS 22,845,495 OH CLEVELAND 16,143,120 OH TOLEDO 12,270,706 OH CUYAHOGA COUNTY 11,212,447 OH AKRON 8,583,492 OH CINCINNATI 8,361,592 OH HAMILTON COUNTY 7,970,490 OH MONTGOMERY COUNTY 5,988,000 OH DAYTON 5,582,902 9,659,665 AZ TUCSON 7,286,911 AZ GLENDALE 6,184,112 AZ PIMA COUNTY 3,086,867 AZ AVONDALE CITY 2,466,039 • AZ CHANDLER 2,415,100 AZ SURPRISE TOWN 2,197,786 CA CALIFORNIA STATE PROGRAM 145,071,506 CA RIVERSIDE COUNTY 48,567,786 CA LOS ANGELES 32,860,870 CA SAN BERNARDINO COUNTY 22,758,188 CA SACRAMENTO COUNTY 18,605,460 CA LOS ANGELES COUNTY 16,847,672 CA SACRAMENTO 13,264,829 CA STOCKTON 12,146,038 CA MORENO VALLEY 11,390,116 CA KERN COUNTY 11,211,385 CA FRESNO 10,969,169 rcentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58349 State Grantee name NSP grant • amount OH FRANKLIN COUNTY 5,439,664 OH BUTLER COUNTY 4,213,742 OH STARK COUNTY 4,181,673 OH SUMMIT COUNTY 3,767,144 OH CANTON 3,678,562 OH LAKE COUNTY 3,402,859 OH LORAIN 3,031,480 OH YOUNGSTOWN 2,708,206 OH EUCLID 2,580,464 OH ELYRIA 2,468,215 OH HAMILTON CITY 2,385,315 OH SPRINGFIELD 2,270,009 OH MIDDLETOWN 2,144,379 OK OKLAHOMA STATE PROGRAM 29,969,459 OK OKLAHOMA CITY 2,882,282 OR OREGON STATE PROGRAM 19,600,000 PA PENNSYLVANIA STATE PROG 59,631,318 PA PHILADELPHIA 16,832,873 PA ALLEGHENY COUNTY 5,524,950 PA ALLENTOWN 2,113,456 PA YORK COUNTY 2,017,253 PA PITTSBURGH 2,002,958 PR PUERTO RICO STATE PROG 19,600,000 RI RHODE ISLAND STATE PROG 19,600,000 SC SOUTH CAROLINA STA PROG 44,673,692 SC GREENVILLE COUNTY 2,262,856 SC RICHLAND COUNTY 2,221,859 SD SOUTH DAKOTA STATE PROG 19,600,000 TN TENNESSEE STATE PROGRAM 49,360,421 TN MEMPHIS 11,506,415 TN NASHVILLE•DAVIDSON 4,051,398 TN SHELBY COUNTY 2,752,708 TN KNOXVILLE 2,735,980 TN CHATTANOOGA . 2,113,727 TX ... TEXAS STATE PROGRAM 101,996,848 TX HARRIS COUNTY 14,898,027 TX HOUSTON 13,542,193 TX SAN ANTONIO 8,635,899 TX DALLAS 7,932,555 TX FORT WORTH 6,307,433 TX DALLAS COUNTY 4,405,482 TX TARRANT COUNTY 3,293,388 TX EL PASO 3,032,465 TX HIDALGO COUNTY 2,867,057 TX FORT BEND COUNTY 2,796,177 TX GRAND PRAIRIE 2,267,290 TX MESQUITE 2,083,933 TX ARLINGTON 2,044,254 TX GARLAND 2,040,196 UT UTAH STATE PROGRAM 19,600,000 VA VIRGINIA STATE PROGRAM 38,749,931 VA PRINCE WILLIAM COUNTY 4,134,612 VA FAIRFAX COUNTY 2,807,300 VT VERMONT STATE PROGRAM 19,600,000 WA WASHINGTON STATE PROGRAM 28,159,293 WI WISCONSIN STATE PROGRAM 38,779,123 WI MILWAUKEE 9,197,465 WV WEST VIRGINIA STATE PROG 19,600,000 WY WYOMING STATE PROGRAM 19,600,000 XX INSULAR AREAS 1,144,289 [FR Doc.E8-23476 Filed 10-3-08;8:45 am] BILLING CODE 4210-67-P ,443 NY ISLIP TOWN 3,720,392 NY BABYLON TOWN 2,170,909 NY ORANGE COUNTY 2,163,744 _ OH OHIO STATE PROGRAM 116,859,223 OH COLUMBUS 22,845,495 OH CLEVELAND 16,143,120 OH TOLEDO 12,270,706 OH CUYAHOGA COUNTY 11,212,447 OH AKRON 8,583,492 OH CINCINNATI 8,361,592 OH HAMILTON COUNTY 7,970,490 OH MONTGOMERY COUNTY 5,988,000 OH DAYTON 5,582,902 9,659,665 AZ TUCSON 7,286,911 AZ GLENDALE 6,184,112 AZ PIMA COUNTY 3,086,867 AZ AVONDALE CITY 2,466,039 • AZ CHANDLER 2,415,100 AZ SURPRISE TOWN 2,197,786 CA CALIFORNIA STATE PROGRAM 145,071,506 CA RIVERSIDE COUNTY 48,567,786 CA LOS ANGELES 32,860,870 CA SAN BERNARDINO COUNTY 22,758,188 CA SACRAMENTO COUNTY 18,605,460 CA LOS ANGELES COUNTY 16,847,672 CA SACRAMENTO 13,264,829 CA STOCKTON 12,146,038 CA MORENO VALLEY 11,390,116 CA KERN COUNTY 11,211,385 CA FRESNO 10,969,169 rcentage of _ properties",HUD has included a • Each state government is allocated homes financed by a subprime mortgage - variable to proxy where abandonment of $19.6 million. related loan;and homes due to foreclosure is more likely, • If the statewide allocation is more • Identified by the State or unit of • specifically each state's rate of vacant than$19.6 million,the remaining funds general local government as likely to residential addresses in neighborhoods are allocated to FY 2008 CDBG face a significant rise in the rate of home with a high proportion(more than 40 entitlement cities,urban counties,and foreclosures." percent)of loans in 2004 to 2006 that non-entitlement balance of state For the amount of funds above each were high cost.Information on vacant proportional to relative need. state's$19.6 million,the remaining addresses is based on United States • If a local government receives less funds are allocated among the Postal Service data as of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible • Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices 29223 response,and recovery capabilities at Objectives.The State Preparedness in the Target Capabilities List(TCL)2.0. the regional,State,local,and Tribal Report collection tool will address FEMA collects this data to guide policy levels In the National Incident questions about current capabilities that and resource allocation decisions. Management System collection tool, have not already been answered through Affected Public:State,Local and data will be collected on the other assessments and reports,focusing Tribal Government. respondent's ability to meet the on level of performance of individual Estimated Total Annual Burden established NIMS Implementation activities for the 37 capabilities set forth Hours:24,278 hours. TABLE A.12—ESTIMATED ANNUALIZED BURDEN HOURS AND COSTS Form name/Form Number of Number of Avg.burden Total annual Avg.hourlyTotal annual Type of respondent No. respondents responses per per response burden wage rate respondent respondent (in hours) (in hours) g cost State, local or Trib- National Incident 3926 1 5 19,630 28.60 $785,985 al government. Management System/No Form Number. State, local or Trib- State Prepared- 56 1 83 4,648 28.60 186,106 al government. ness Report/No Form Number. Total 24,278 972,091 Estimated Cost:There is no annual DEPARTMENT OF HOUSING AND Dated:June 11,2009. reporting and recordkeeping cost URBAN DEVELOPMENT Mark R.Johnston, associated with this collection. Deputy Assistant Secretaryfor Special Needs. Comments [Docket No.FR-5280-N-23] [FR Doc.E9-14118 Filed 6-18-09;8:45 am] BILLING CODE 4210-67-P Comments may be submitted as Federal Property Suitable as Facilities indicated in the ADDRESSES caption To Assist the Homeless above.Comments are solicited to(a) DEPARTMENT OF HOUSING AND AGENCY:Office of the Assistant URBAN DEVELOPMENT evaluate whether the proposed data Secretary for Community Planning and collection is necessary for the proper. Development,HUD. [Docket No.FR-5255-N-02] performance of the agency,including ACTION:Notice. Notice of Allocations,Application whether the information shall have practical utility;(b)evaluate the SUMMARY:This Notice identifies Procedures,Regulatory Waivers accuracy of the agency's estimate of the unutilized,underutilized,excess,and Granted to and Alternative burden of the proposed collection of surplus Federal property reviewed by Requirements for Emergency information,includingthe validityof Assistance for Redevelopment of HUD for suitability for possible use to Abandoned and Foreclosed Homes the methodology and assumptions used; assist the homeless. Grantees Under the Housing and (c)enhance the quality,utility,and DATES:Effective Date:June 19,2009. Economic Recovery Act,2008; clarity of the information to be collected;and(d)minimize the burden FOR FURTHER INFORMATION CONTACT: Revisions to Neighborhood of the collection of information on those Kathy Ezzell,Department of Housing Stabilization Program(NSP)and who are to respond,including through and Urban Development,451 Seventh Technical Corrections the use of appropriate automated, Street,SW.,Room 7262,Washington, AGENCY:Office of the Assistant electronic,mechanical,or other DC 20410;telephone(202)708-1234; Secretary for Community Planning and technological collection techniques or TTY number for the hearing-and Development,HUD. other forms of information technology, telephone speech-impaired numbers rs are not toll-free),708-2565,(these ACTION:Notice of allocation method, not or e.g.,permitting electronic submission of call the toll-free Title V information line waivers granted,alternative responses. at 800-927-7588. requirements applied,and statutory program requirements;revisions to Larry Gray, SUPPLEMENTARY INFORMATION:In Neighborhood Stabilization Program Director,Records Management Division, accordance with the December 12,1988 and technical corrections. Office of Management,Federal Emergency court order in National Coalition for the Management Agency,Department of Homeless v. Veterans Administration, SUMMARY:On October 6,2008,the Homeland Security. No.88-2503-0G(D.D.C.),HUD Department published a notice advising [FR Doc.E9-14480 Filed 6-18-09;8:45 am] publishes a Notice,on a weekly basis, the public of the allocation formula and BILLING CODE 9111-e6 P identifying unutilized,underutilized, allocation amounts,the list of grantees, excess and surplus Federal buildings alternative requirements,and the • and real property that HUD has waivers of regulations granted.to reviewed for suitability for use to assist grantees under Title III of Division B of the homeless.Today's Notice is for the the Housing and Economic Recovery purpose of announcing that no Act of 2008,for the purpose of assisting additional properties have been in the redevelopment of abandoned and determined suitable or unsuitable this foreclosed homes under the Emergency week. Assistance for Redevelopment of June 30,2008 than$2 million under this sub- entitlement communities and non- made of the funds made available under this available to it will be used with respect Title or title IV shall be distributed to an Attachment A to individuals and families whose organization that has been indicted for HERA calls for allocating funds"to incomes do not exceed 120 percent of a violation under federal law relating to States and units of general local area median income;and an election for federal office;or an government with the greatest need,as b.The jurisdiction will not attempt to organization that employs applicable such need is determined in the - recover any capital costs of public individuals.Section 2304 defines discretion of the Secretary based on— - improvements assisted with CDBG applicable individuals. (A)The number and percentage of funds,including Section 108 loan V.Information Collection Approval home foreclosures in each State or unit guaranteed funds,by assessing any Note of general local government; amount against properties owned and (B)The number and percentage of occupied by persons of low-and HUD has approval from the Office of homes financed by a subprime mortgage moderate-income,including any fee Management and Budget(OMB)for related loan in each State or unit of charged or assessment made as a information collection requirements in general local government;and condition of obtaining access to such accordance with the Paperwork (C)The number and percentage of public improvements. However,if NSP Reduction Act of 1995 (44 U.S.C.3501— homes in default or delinquency in each L o all program to compliance with restrictions on how the purchase discount for an requirements,such as requirements for lobbying required by 24 CFR part 87, A the property for a specific,eligible 29224 Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices Abandoned and Foreclosed Homes American Recovery and Reinvestment returned to the grantee as was required . heading,referred to throughout this Act of 2009(the"Recovery Act")(Pub. by section 2301(d)(4).Notwithstanding notice as the Neighborhood L. 111-005,approved February 17, the elimination of this requirement, Stabilization Program(NSP).This 2009),Today's notice also makes a grantees are strongly encouraged to document advises the public of number of non-substantive technical avoid the undue enrichment of entities substantive revisions to the October 6, corrections to the October 6,2008 that are not subrecipients.For example, 2008,notice,primarily as a result of publication. grantees are encouraged to structure changes to NSP made by the American Substantive Revisions assistance to developers that undertake Recovery and Reinvestment Act of 2009. acquisition and/or rehabilitation as This document also makes a number of The substantive revisions made by loans rather than grants.Grantees are non-substantive technical corrections or this notice follow.The Federal Register also encouraged to include language in clarifications to the October 6,2008 page number identifies where the agreements with entities that are not notice. language to be revised can be found in subrecipients that provides for grantees the October 6,2008,notice. to share in anyexcess cash flow DATES:The effective date(except as A.Section 2301(c)(3)(C)of HERA was specified herein)remains as published amended to permit NSP funds to be generated by the assisted project to the in the Federal Register on October 6, extent practicable.(Generally,excess 2008. used to establish and operate land banks cash flow on a real estate project is the for homes and residential properties amount of cash generated from FOR FURTHER INFORMATION CONTACT: that have been foreclosed upon.As a operations,sales,or refinancing that is Stanley Gimont,Director,Office of result,and to ensure consistency with in excess of the amount required to Block Grant Assistance,Department of section 2301(c)(3)(C)of HERA,HUD is provide the owner a reasonable return Housing and Urban Development,451 amending the definition of"Land Bank" on its equity investment.)A further Seventh Street,SW.,Room 7286, at page 58332 to read as follows: result of the repeal of this provision is Washington,DC 20410,telephone Land bank.A land bank is a that program income received after July number 202-708-3587.Persons with governmental or nongovernmental 30,2013 is not required to be returned hearing or speech impairments may nonprofit entity established,at least in to HUD for deposit in the Treasury. access this number via TTY by calling part,to assemble,temporarily manage, However,the program income the Federal Information Relay Service at and dispose of vacant land for the requirements CDBG program are 800-877-8339.FAX inquiries may be purpose of stabilizing neighborhoods stillg reqapuirements ofe theo income pdirogram sent to Mr.Gimont at 202-401-2044. and encouraging re-use or tly (Except for the"800"number,these redevelopment of urban property.For generated from the use of NSP funds telephone numbers are not toll-free.) the purposes of NSP,a land bank will and received by grantees or SUPPLEMENTARY INFORMATION:Title III of operate in a specific,defined geographic subrecipients.Accordingly,the Division B of the Housing and Economic area.It will purchase properties that definiti `on of Revenue for the purposes Recovery Act,2008(HERA)(Pub.L. have been foreclosed upon and of section 2301(d)(4)"on page 58332, 110-289,approved July 30,2008) maintain,assemble,facilitate first column,of the October 6,2008, appropriated$3.92 billion for redevelopment of,market,and dispose notice is removed.In addition,Section • emergency assistance for the of the land-banked properties.If the N beginning on page 58340,second redevelopment of abandoned and land bank is a governmental entity,it column,of the October 6,2008 notice is foreclosed homes and residential may also maintain foreclosed property revised to read as follows: properties,and provides under a rule of that it does not own,provided it charges N.Alternative Requirement for Program construction that,unless HERA states the owner of the property the full cost Income Generated by Activities Assisted otherwise,the grants are to be of the service or places a lien on the With Grant Funds considered Community Development property for the full cost of the service. Block Grant(CDBG)funds.The grant The table of NSP eligible uses on pageRequirement program under Title III is commonly 58338 has also been revised to reflect 1.Revenue(i.e.,gross income) referred to as the Neighborhood this change.The corrected table of received by a state,unit of general local Stabilization Program(NSP).HERA eligible NSP uses is published below.In government,or subrecipient(as defined authorizes the Secretary to specify addition,the definition of Subrecipient at 24 CFR 570.500(c))that is directly alternative requirements to any on page 58332 is revised to clarify that generated from the use of CDBG funds provision under Title I of the Housing a land bank is a subrecipient,as follows: (which term includes NSP grant funds) and Community Development Act of Subrecipient.Subrecipient shall have constitutes CDBG program income.To 1974,as amended,(the HCD Act)except the same meaning as at the first ensure consistency of treatment of such for requirements related to fair housing, sentence of 24 CFR 570.500(c).This program income,the definition of nondiscrimination,labor standards,and includes any nonprofit organization program income at 24 CFR 570.500(a) the environment(including lead-based (including a unit of general local shall be applied to amounts received by paint),in accordance with the terms of government)that a state awards funds states,units of general local section 2301 of HERA and for the sole to.The term also includes any land government,and subrecipients. - purpose of expediting the use of grant bank receiving NSP funds from the 2.Cash management.Substantially all funds. On October 6,2008,HUD grantee or other subrecipient. published a notice(73 FR 58330) B.Section 2301(d)(4)of HERA,which. program income must be disbursed for advising the public of the allocation established requirements for the eligible NSP activities before additional formula and allocation amounts,the list disposition of revenue generated by NSP cash withdrawals are made from the of grantees,alternative requirements, assisted activities,was repealed by the U.S.Treasury. and waivers granted.Today's notice Recovery Act.As a result of this repeal, 3.Agreements with subrecipients. advises the public of substantive revenue generated from the use of NSP States and units of general local revisions to the October 6,2008 notice, funds and received by a private government must incorporate in primarily as a result of changes to NSP individual or other entity that is not a subrecipient agreements such made by Title XII of Division A of the subrecipient is not required to be provisions as are necessary to ensure formation to follow-up quarterly performance report,as HUD acquire and redevelop FHA foreclosed be taken for public use without just e that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices 29225 compliance with the requirements of the purchase discount will be reflected "Any purchase of a foreclosed upon this section. in two sales transactions involving the home or residential property under this C.Section 2301(d)(1)of HERA limits same property,i.e.,the sale of the section shall be at a discount from the the purchase price of a foreclosed upon foreclosed property to the grantee and current market appraised value of the home or residential property by the subsequent resale of the property by home or property,taking into account requiring the property to be purchased the grantee to an individual as a primary its current condition,and such discount at a discount from the current market residence.Again,while neither of these shall ensure that purchasers are paying appraised value. Section Q of the transactions should be used as a below-market value for the home or October 6,2008,notice implemented comparable for subsequent appraisals in property." purchase discount requirements on the neighborhood,the grantee cannot To ensure that uncertainty over the individual purchase transactions and assure that the transaction(s)will be meaning of this section does not delay purchase transactions in the aggregate. ignored for such purpose.Based on the program implementation,HUD is HUD has received numerous foregoing considerations,HUD has defining"current market appraised expressions of concern from grantees determined that the current value"in this notice.In recognition of and other interested parties that the requirements for purchase discounts in the statutory discount requirement, current requirements need to be the aggregate impair the effective HUD is requiring a minimum discount modified to permit greater flexibility in implementation of HERA and should be of 1 percent for each residential addressing local market conditions and deleted.As a result,today's publication property purchased with NSP funds. to avoid a downward spiral in property eliminates at page 58342,second Grantees are nonetheless encouraged to values in neighborhoods where column,the 15 percent aggregate negotiate with lenders to obtain price discounts are reflected in valuations for discount requirement at Section Q.1.b of reductions commensurate with the subsequent sales.HUD agrees that the the October 6,2008,notice.However, avoided costs of holding,marketing and current purchase discount requirements although section 2301(d)(1)requires that selling the homes. should be modified.Additional a foreclosed upon home or residential Requirements flexibility is needed for those situations property be purchased at a discount,the 1.Each foreclosed upon home or that involve acquisition of foreclosed level of the discount is not specified, residential property shall be purchased upon properties that cannot be HUD has decided to reduce the P P P minimum individual discount at a discount of at least 1 percent from purchased at the minimum discount of the current market-appraised value of 5 required for individual requirement from 5 percent to 1 percent. percentthe home or property. transactions and the 15 percent HUD believes that this reduction will provide grantees with maximum 2.An NSP grantee may not provide minimum discount required for P e NSP funds to another party to finance transactions in the aggregate. flexibility to avoid the potentially Many adverse impact of discounts on an acquisition of tax foreclosed(or any grantees have indicated that some real P other)properties from itself,other than estate owned(REO)holders are unable neighborhood property values.Grantees to pay necessary and reasonable costs or unwilling to sell a property at a price are nonetheless encouraged to negotiate related to the appraisal and transfer of that reflects such a discount.Of more with lenders to obtain price reductions title.If NSP funds are used to pay such concern to many grantees is the commensurate with the avoided costs of costs when property owned by the potentially adverse impact that holding,marketing and selling the grantee is conveyed to a subrecipient, discounted sales prices on foreclosed homes.Grantees are also encouraged to homebuyer,developer,or other properties may have on other properties take reasonable steps to ensure jurisdiction,the property is NSP- in the neighborhood where the disclosure of any discount/price assisted and subject to all program foreclosures occurred.One concern is reduction resulting from compliance requirements,such as requirements for that a property sold at a discount may with HERA or other applicable legal NSP-eligible use and benefit to income- be used as a comparable sale for requirements.Such steps may include qualified persons. purposes of subsequent appraisals in the posting sales data on individual 3.The address,appraised value, neighborhood where the foreclosure acquisitions(sales price,current market purchase offer amount,and discount occurred. Since the discount has to be appraised value,and discount/price amount of each property purchase must taken against the current market reduction)on the grantee's Web site, be documented in the grantee's program appraised value,the use of the providing such data to multiple listing records.D.As noted in the discussion discounted sales price as a comparable services,and including the information of the NSP purchase discount would understate the true market value in the deed transferring title to the requirements,section 2301(d)(1)of of that property.Although HUD has purchaser(if permitted under state or HERA requires that the purchase price confirmed with representatives of the local laws or regulations).Grantees are of a foreclosed upon home or residential appraisal industry that such sales also reminded that they can prohibit the property must reflect a discount from transactions should not be used as use of NSP-funded acquisitions as the current market appraised value of comparables in other appraisals,no comparables in the scope of work the property.The October 6,2008, guarantee exists that appraisers would developed for appraisals procured in notice defined"current market in all cases be aware that the sales price connection with subsequent appraised value"to mean the value of reflected a governmentally required acquisitions.Accordingly,the the property established through an - discount.Of further concern to many background and requirements for appraisal made in conformity with URA grantees is the effect of section Section Q,Purchase Discount,at page appraisal requirements.HUD has 2301(d)(3)of HERA which provides that 58342 of the October 6.2008,notice are determined that compliance with URA the sale of a foreclosed upon property revised to read as follows: appraisal requirements is unnecessarily that was acquired with NSP assistance Q.Purchase Discount burdensome if the anticipated value of to an individual as a primary residence Back ound the proposed acquisition is estimated at cannot be greater than the cost to gT $25,000 or less and the acquisition is acquire and rehabilitate or redevelop Section 2301(d)(1)limits the purchase voluntary.Consequently,if the grantee such property.Thus,it is possible that price of a foreclosed home,as follows: determines that the anticipated value of e without just e that the NSP grants are for a state or unit of general local CFR 570.493. Consistent with applicable administered largely in accordance with government to receive a grant, 29226 Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices the proposed acquisition is estimated at foreclosure,The use of NSP funds for to a utility provider in lieu of payments $25,000 or less and the acquisition is acquisition of such property is subject to to the owner,except prior notification voluntary,the current market appraised a determination by the grantee that the shall not be required in any case in value of the property may be established initial successor in interest complied which the unit will be or has been by a valuation of the property that is with these requirements. rendered uninhabitable due to the based on a review of available data and a.The initial successor in interest in termination or threat of termination of is made by a person qualified to make a foreclosed upon dwelling or service,in which case the public the valuation.The definition of"current residential real property shall provide a housing agency shall notify the owner market appraised value"on page 58331, notice to vacate to any bona fide tenant within a reasonable time after making third column,of the October 6,2008 at least 90 days before the effective date such payment;or(2)for the family's notice is revised to read as follows: of such notice.The initial successor in reasonable moving costs,including Current market appraised value.The interest shall assume such interest security deposit costs. current market appraised value means subject to the rights of any bona fide c.For purposes of this section,a lease the value of a foreclosed upon home or tenant,as of the date of such notice of or tenancy shall be considered bona fide residential property that is established foreclosure:(i)Under any bona fide only if:(i)The mortgagor under the through an appraisal made in lease entered into before the notice of contract is not the tenant;(ii)the lease conformity with the appraisal foreclosure to occupy the premises until or tenancy was the result of an arms requirements of the URA at 49 CFR the end of the remaining term of the length transaction;and(iii)the lease or 24.103 and completed within 60 days lease,except that a successor in interest tenancy requires the receipt of rent that prior to an offer made for the property may terminate a lease effective on the is not substantially less than fair market by a grantee,subrecipient,developer,or date of sale of the unit to a purchaser rent for the property. individual homebuyer;provided, who will occupy the unit as a primary d.The grantee shall maintain however,if the anticipated value of the residence,subject to the receipt by the documentation of its efforts to ensure proposed acquisition is estimated at tenant of the 90-day notice under this that the initial successor in interest in $25,000 or less,the current market paragraph;or(ii)without a lease or with a foreclosed upon dwelling or appraised value of the property may be a lease terminable at will under State residential real property has complied established by a valuation of the law,subject to the receipt by the tenant with the requirements under section property that is based on a review of of the 90-day notice under this K.2.a.and K.2.b.If the grantee available data and is made by a person paragraph,except that nothing in this determines that the initial successor in the grantee determines is qualified to section shall affect the requirements for interest in such property failed to make the valuation. termination of any Federal-or State- comply with such requirements,it may E.The Recovery Act included several subsidized tenancy or of any State or not use NSP funds to finance the provisions concerning tenants'rights local law that provides longer time acquisition of such property unless it that are applicable to acquisitions under periods or other additional protections assumes the obligations of the initial HERA.A grantee must document its for tenants. successor in interest specified in section efforts to ensure that the initial b.i.In the case of any qualified K.2.a.and K.2.b.If a grantee elects to successor in interest in a foreclosed foreclosed housing in which a recipient assume such obligations,it must upon dwelling or residential real of assistance under section 8 of the provide the relocation assistance property(typically,the initial successor United States Housing Act of 1937(42 required pursuant to 24 CFR 570,606 to in interest in property acquired through U.S.C. 1437f)(the"Section 8 Program") tenants displaced as a result of an foreclosure is the lender or trustee for resides at the time of foreclosure,the activity assisted with NSP funds and holders of obligations secured by initial successor in interest shall be maintain records in sufficient detail to mortgage liens)has provided bona fide subject to the lease and to the housing demonstrate compliance with the tenants with the notice and other assistance payments contract for the provisions of that section. protections outlined in the Recovery occupied unit. 3.The recipient of any grant or loan Act.Grantees are cautioned that NSP ii.Vacating the property prior to sale made from NSP funds may not refuse to funds may not be used to finance the shall not constitute good cause for lease a dwelling unit in housing with acquisition of property from the initial termination of the tenancy unless the such loan or grant to a participant under successor in interest that failed to property is unmarketable while the Section 8 Program because of the comply with applicable requirements occupied or unless the owner or status of the prospective tenant as such unless it assumes the obligations of such subsequent purchaser desires the unit a participant. initial successor in interest with respect for personal or family use. 4,This section shall not preempt any to bona fide tenants.Grantees who elect iii.If a public housing agency is Federal,State or local law that provides to assume such obligations are unable to make payments under the more protections for tenants, reminded that tenants displaced as a contract to the immediate successor in F.HUD has determined that HUD- result of the NSP funded acquisition are interest after foreclosure,due to(A)an approved homebuyer counseling PP Y entitled to the benefits outlined in 24 action or inaction by the successor in services may not be available to all - CFR 570.606.Section K,Acquisition interest,including the rejection of grantees.To provide for such situations, and Relocation,on page 58339 of the payments or the failure of the successor section B.3.b.on page 58334 of the , _ October 6,2008 notice is amended by to maintain the unit in compliance with October 6,2008 notice,is revised as adding the following requirements at the Section 8 Program or(B)an inability follows to allow a grantee to submit a the end thereof: to identify the successor,the agency request for an exception to the 2.The following requirements apply may use funds that would have been requirement that each NSP-assisted to any foreclosed upon dwelling or used to pay the rental amount on behalf homebuyer must receive and complete residential real property that was of the family—(1)to pay for utilities that at least 8 hours of homebuyer acquired by the initial successor in are the responsibility of the owner counseling from a HUD-approved interest pursuant to the foreclosure after under the lease or applicable law,after counseling agency. February 17, 2009 and was occupied by taking reasonable steps to notify the b.The grantee must require each NSP- •a bona fide tenant at the time of owner that it intends to make payments assisted homebuyer to receive and I Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices 29227 complete at least 8 hours of homebuyer substantial amendment under the Second,this provision also redefines counseling from a HUD-approved annual CDBG program as modified by and supersedes the definition of"low- housing counseling agency before this notice or HUD will reallocate the and moderate-income,"effectively obtaining a mortgage loan.If the grantee funds allocated for that grantee.HUD is allowing households whose incomes is unable to meet this requirement for a providing alternative requirements to 42 exceed 80 percent of area median good cause(e.g.,there are no HUD- U.S.C.5304(a)(2)and waiving income but do not exceed 120 percent approved housing counseling agencies 91.105(c)(2),91.105(k),91.115(c)(2),and of area median income to qualify as if within the grantee's jurisdiction,or 91.115(i)to the extent necessary to their incomes did not exceed the there are no HUD-approved housing allow the grantee to provide no fewer published low-and moderate-income counseling agencies within the grantee's than 15 calendar days for citizen levels of the regular CDBG program.To jurisdiction that engage in homebuyer comment(rather than 30 days)for its prevent confusion,HUD will refer to counseling),the grantee may submit a initial NSP submission and any this new income group as"middle request for an exception to this subsequent substantial NSP action plan income,"and keep the regular CDBG requirement to the responsible HUD amendment,and to require that,at the definitions of"low income"and field office,and the HUD field office has time of submission to HUD,each "moderate income"in use.Further, the authority to grant an exception for grantee post its approved action plan HUD will characterize aggregated good cause.The grantee must ensure amendment and any subsequent NSP households whose incomes do not that the homebuyer obtains a mortgage amendments on its official website exceed 120 percent of median income as loan from a lender who agrees to along with a summary of citizen "low-,moderate-,and middle-income comply with the bank regulators' comments received within the 15-day households,"abbreviated as LMMH.For guidance for non-traditional mortgages comment period.After HUD processes the purposes of NSP only,an activity (see,Statement on Subprime Mortgage and approves the plan amendment and may meet the HERA low-and moderate- Lending issued by the Office of the both HUD and the grantee have signed income national objective if the assisted Comptroller of the Currency,Board of the grant agreement,HUD will establish activity: Governors of the Federal Reserve the grantee's line of credit in the amount • Provides or improves permanent System,Federal Deposit Insurance of funds included in the Action Plan residential structures that will be Corporation,Department of the amendment,up to the allocation occupied by a household whose income Treasury,and National Credit Union amount. is at or below 120 percent of area Administration,available at http:// B.On page 58335 under Section E and median income(abbreviated as LMMH); www.fdic.gov/regulations/laws/rules/ the paragraph entitled"Background," • Serves an area in which at least 51 5000-5160.htm1).Grantees must design HUD erroneously included a statement percent of the residents have incomes at NSP programs to comply with this that an activity may meet the HERA or below 120 percent of area median requirement and must document low-and moderate-income national income(LMMA);or compliance in the records,for each objective if the assisted activity, • Serves a limited clientele whose homebuyer.Grantees are cautioned "Creates or retains jobs for persons incomes are at or below 120 percent of 1 against providing or permitting whose household incomes are at or area median income(LMMC). homebuyers to obtain subprime below 120 percent of median income C.On page 58336,Section E., mortgages for whom such mortgages are (LMMI)."As a result,HUD is removing paragraph 2.e.under"National inappropriate,including homebuyers on page 58335,third column,the objectives supersession and alternative who qualify for traditional mortgage bulleted statement that reads:"Creates requirements,"HUD inadvertently loans. or retains jobs for persons whose omitted a requirement regarding the household incomes are at or below 120 amount of grant funds to house Technical Corrections percent of median income(LMMI)."If individuals or families whose incomes Summaries of the technical an NSP Action Plan substantial do not exceed 50 percent of area median corrections made by this document amendment included an activity that income. follow.The Federal Register page addressed the HERA low-and moderate- Correction number identifies where the language to income national objective requirement On page 58336,Section on the basis of job creation or retentionparagraph be corrected can be found in the October P gE., 6,2008 notice.The corrected text made and funds have not been obligated for 2.e.is added as follows: by this notice follows. that activity,the grantee should submit e.Not less than 25 percent of any NSP A. On page 58334 under Section an amendment that includes one or grant shall be used for the purchase and B.4.b.,HUD inadvertently omitted to more new activities that comply with redevelopment of abandoned or apply the alternative requirement for the the NSP income eligibility foreclosed homes or residential minimum citizen comment period of 15 requirements.If funds have already properties that will be used to house calendar days to substantial action plan been obligated for the original activity individuals or families whose incomes amendments submitted subsequently to in reliance on the October 6,2008 notice do not exceed 50 percent of area median the initial NSP submission.The language,the activity may be completed income. _ application of this alternative provided it is designed to create or D.On page 58338,in the second requirement to all substantial retain permanent jobs and at least 51 column of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 29228 Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices indicated that rehabilitation may activity delivery cost for any correlated Correction include counseling for those seeking to eligible activity that requires an NSP- take part in the activity,HUD assisted homebuyer to complete On page 58338,the table should read inadvertently omitted to clarify that homebuyer counseling pursuant to as follows: housing counseling is an eligible section B,3.b. NSP-eligible uses Correlated eligible activities from the CDBG entitlement regulations (A) Establish financing mechanisms for purchase and re- • As part of an activity delivery cost for an eligible activity as defined in 24 CFR • development of foreclosed upon homes and residential 570.206. properties, including such mechanisms as soft-sec- • Also, the eligible activities listed below to the extent financing mechanisms are onds, loan loss reserves, and shared-equity loans for used to carry them out. low-and moderate-income homebuyers. (B) Purchase and rehabilitate homes and residential • 24 CFR 570.201(a)Acquisition, properties that have been abandoned or foreclosed (b)Disposition, upon, in order to sell, rent, or redevelop such homes (i)Relocation,and and properties. (n)Direct homeownership assistance(as modified below); • 570.202 eligible rehabilitation and preservation activities for homes and other resi- dential properties. • HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. . (C)Establish and operate land banks for homes and resi- • 24 CFR 570.201(a)Acquisition and(b) Disposition. dential properties that have been foreclosed upon. • HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. (D)Demolish blighted structures • 24 CFR 570.201(d)Clearance for blighted structures only. (E) Redevelop demolished or vacant properties • 24 CFR 570.201(a)Acquisition, (b)Disposition, (c)Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, (i) Relocation,and (n)Direct homeownership assistance(as modified below). • 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. • 24 CFR 570.204 Community based development organizations. • HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. • E.On page 58338 Section J,the third and redevelopment(including related regulations governing use of program column,HUD incorrectly cited the legal activity delivery costs,which generally income by States and units of general authority in characterizing the may include,among other items,costs local government under the CDBG substance of the paragraph. related to the sale of the property). program.This means that a grantee that Correction F.On page 58340,first column,under successfully and quickly deploys its Section M and the third paragraph program and generates program income On page 58338 Section J,third entitled"Background",HUD may obligate,draw down,and expend column,the paragraph should read as inadvertently included an incorrect an amount equal to its NSP allocation follows: citation for cash management amount,and still have funds remaining Background requirements governing States. in its line of credit. Correction G.On page 58347 in Attachment A to Section 2301(d)(3)of HERA directs the Notice,HUD inadvertently left one that,if an abandoned or foreclosed-upon On page 58340,the third paragraph grantee off the list of local governments home or residential property is after"Background"should read as that qualify to receive an NSP allocation purchased,redeveloped,or otherwise follows: and included that grantee's allocation sold to an individual as a primary A further complication is that HERA amount in the state's allocation. residence,then such sale shall be in an clearly expects grantees to earn program amount equal to or less than the cost to income under this grant program.As Correction acquire and redevelop or rehabilitate provided under 24 CFR 85.21 for At the bottom of page 58347,the such home or property up to a decent, entitlements,grantees and subrecipients allocation amount for the State of safe,and habitable condition.(Sales and shall disburse program income before Maryland is corrected to read: - closing costs are eligible NSP requesting additional cash withdrawals $26,704,504.A new line is inserted redevelopment or rehabilitation costs.) from the U.S.Treasury.States are below the allocation for the State of Note that the maximum sales price for governed similarly by 24 CFR Maryland and above the line for the a property is determined by aggregating 570.489(e)(3)and 31 CFR part 205.This allocation for Prince Georges County, _ all costs of acquisition,rehabilitation, requirement is reflected in the Maryland to read: ent that includes one or grant shall be used for the purchase and B.4.b.,HUD inadvertently omitted to more new activities that comply with redevelopment of abandoned or apply the alternative requirement for the the NSP income eligibility foreclosed homes or residential minimum citizen comment period of 15 requirements.If funds have already properties that will be used to house calendar days to substantial action plan been obligated for the original activity individuals or families whose incomes amendments submitted subsequently to in reliance on the October 6,2008 notice do not exceed 50 percent of area median the initial NSP submission.The language,the activity may be completed income. _ application of this alternative provided it is designed to create or D.On page 58338,in the second requirement to all substantial retain permanent jobs and at least 51 column of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Federal Register/Vol. 74, No. 117/Friday, June 19, 2009/Notices 29229 State Grantee name NSP grant amount MD Montgomery County $2,073,965 • H.In Attachment A to the Notice, specify the grounds for approving the Assistance Act of 1978,Public Law 95— HUD only listed a single allocation for waiver. 471 (Act),and implementing regulations multiple Insular Areas,without Dated:June 11,2009. at 25 CFR part 41.The information indicating the allocated amount for each Nelson R.Bregon, collection associated with the grant Insular Area.Also,without this application allows Bureau of Indian correction,Insular Areas were unable to General DeputyAssistont Secretary,Office Education(BIE)staff to review grants to submit amendments by the Notice of Community Planning and Development. ensure that the Tribally controlled deadline. [FR Doc.E9-14360 Filed 6-18-09;8:45 am] college or university is legally eligible BILLING CODE 4210-67-P for the grant.The information collection Correction associated with the annual report allows HUD directly notified the Insular BIE to obtain an accounting of amounts Areas to establish a January 15,2009, DEPARTMENT OF THE INTERIOR and purposes for which financial deadline for submission of an NSP Bureau of Indian Affairs assistance was expended for the substantial amendment.At the end of preceding academic year.A request for Attachment A,the allocations for the Tribal Colleges and Universities Grants comments on this information Insular Areas are inserted as follows: and Annual Reports collection request appeared in the Federal Register on Wednesday,March Insular area Allocation AGENCY:Bureau of Indian Affairs, 11,2009(74 FR 10609).No comments Virgin Islands $579,451 Interior. were received regarding these Northern Marianas 364,162 ACTION:Notice of Submission to the information collections in response to Guam 100,674 Office of Management and Budget. the announcement. American Samoa 100,000 SUMMARY:As required by the Paperwork II.Request for Comments Total 1,144,287 Reduction Act,the Bureau of Indian You are invited to send your Affairs(BIA)is submitting the following comments on these information . Additional Amendments information collections to the Office of collections to the two locations listed in 1. A of No Management and Budget for renewal: (1) the ADDRESSES section.Your comments Significant Impact Environmental.A Finding with NoTribal Colleges and Universities Annual should address: Si thei has been made respectfor Report Form,25 CFR 41.9,OMB Control (a)The necessity of this information to environment accordance HUD No. 1076-0105;and(2)Tribal Colleges collection for the proper performance of regulations thisNotice in 24 part with which and Universities Grant Application the functions of the agency,including implement at section CFR 5 ,wf hich Form,25 CFR 41.8,OMB Control No. whether the information will have 1076-0018. practical utility; National Environmental Policy Act of • DATES:Submit comments on or before (b)The accuracy of the agency's 1969(42 U.S.C. 4332(2)(C)).The FONSI July 20,2009. estimate of the burden(hours and cost) is available for public inspection of the collection of information, between 8 a.m. and 5 p.m.weekdays in ADDRESSES:You may submit comments the Regulations Division,Office of on the information collections to the including the validity of the General Counsel,Department of Desk Officer for the Department of the methodology and assumptions used; Housing and Urban Development,451 Interior at the Office of Management and (c)W ut lys ei e and claritycoul of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible CITY OF OMAHA - DEFINITION OF INCOME Attachment 2- . Annual Income Includes: f • 1. Wages, salaries, tips, commissions, etc.; 2. Self-employment income from owned non-farm business, including proprietorships and partnerships; 3. Farm self-employment income; 4. Interest, dividends, net rental income, or income from estates or trusts 5. Social security or railroad retirement; 6. Supplemental Security Income, Aid to Families with Dependent Children, or other public assistance or public welfare programs; 7. Retirement, survivor or disability pensions; 8. Any other sources of income received regularly including Veterans' (VA) payments, unemployment compensation, child support and alimony; and 9. Income from assets, as shown below: a. Amounts in savings certificates, money market funds and other investment accounts. b. Stocks, bonds, savings certificates, money market funds and other investment accounts. c. Equity in real property or other capital investments. Equity is the estimated current market value of the • asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as broker fees) that would be incurred in selling the asset. Do not include equity in principle residence (home equity). d. The cash value of trusts that are available to the household. e. IRA, Keogh and similar retirement savings accounts, even though withdrawal would result in a penalty. f. Contributions to company retirement/pension funds that can be withdrawn without retiring or terminating employment. g. Assets which, although owned by more than one person, allow unrestricted access by the applicant. h. Lump sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements and • other claims. i. Personal property held as an investment such as gems,jewelry, coin collections, antique cars, etc. j. Cash value of life insurance policies. k. Assets disposed of for less than fair market value during two years preceding certification or re- certification. 10. Actual income from assets if total assets are $5,000 or less. 11. If assets are more than $5,000, the greater of (a) actual income from assets, or (b) total assets times passbook rate. Annual Income Does Not Include the Following Assets: 1. Necessary personal.property, except as noted in 9(i). 2. Interest in Indian trust lands. 3. Assets that are a part of an active business or farming operation. NOTE: Rental properties are considered personal assets held as an investment rather than business assets unless real estate is the applicant's/tenant's main occupation. 4. Assets not accessible to the family and which provide no income for the family. 5. Vehicles especially equipped for the handicapped. 6. Equity in owner-occupied cooperatives and manufactured homes in which the family lives. 7. Equity in principle residence (home equity). I (we) acknowledge receipt of a copy of this Definition of Income. Date Witness Date • • Date Witness Date EQUAL HOUSING OPPORTUNITY Revised and approved 11/18/2009 DATES:Submit comments on or before (b)The accuracy of the agency's 1969(42 U.S.C. 4332(2)(C)).The FONSI July 20,2009. estimate of the burden(hours and cost) is available for public inspection of the collection of information, between 8 a.m. and 5 p.m.weekdays in ADDRESSES:You may submit comments the Regulations Division,Office of on the information collections to the including the validity of the General Counsel,Department of Desk Officer for the Department of the methodology and assumptions used; Housing and Urban Development,451 Interior at the Office of Management and (c)W ut lys ei e and claritycoul of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Attachment 3 EQUAL EMPLOYMENT OPPORTUNITY CLAUSE During the performance of this Contract, the Contractor agrees as follows: (1) The Contractor and its subcontractors shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, national origin, handicap or familial status. As used herein, the work "treated" shall mean and include, without limitation, the following: Recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The Contractor agrees to and shall post in conspicuous places, available to employees and applicants for employment,notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (2) The Contractor and its subcontractors shall, 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 to race, religion, color,sex, national origin,age,handicap or familial status. (3) The Contractor and its subcontractors shall send to each representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of the Contractor's commitments under the equal employment opportunity clause of the City and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The Contractor and its subcontractors shall furnish to the City's Human Relations Director all federal forms containing the information and reports required by the federal government for federal contracts under federal rules and regulations, including the information required by Omaha Municipal Code Sections 10-192 to 10- 194, inclusive, and shall permit reasonable access to his records. Records accessible to the Human Relations Director shall be those which are related to Paragraphs (1) through (7) of this subsection and only after reasonable notice is given to the Contractor. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. (5) The Contractor and its subcontractors shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs (1) through (7) herein, including penalties and sanctions for noncompliance; however, in the event the Contractor becomes involved in or is threatened with litigation as the result of such directions by the City, the City will enter into such litigation as is necessary to protect the interests of the City and to effectuate the provisions of this division; and in the case of contracts receiving federal assistance, the Contractor or the City may request the United States to enter into such litigation to protect the interests of the United States. (6) The Contractor shall file and shall cause his subcontractors, if any, to file compliance reports with the Contractor in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Attachment y SECTION 3 CLAUSE All Section 3 covered contracts shall include the following clause (referred to as the Section 3 clause): A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any,, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will no6t subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD- assisted contracts. ce reports with the Contractor in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible G. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 8 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 87 (b). Providing Other Economic Opportunities. (a) General. In accordance with the findings of the Congress, as stated in Section 3, that other economic opportunities offer an effective means of empowering low- income persons, a recipient is encouraged to undertake efforts to provide to low- income persons economic opportunities other than training, employment and contract awards, in connection with Section 3 covered assistance. (b) Other training and employment-related opportunities. Other economic opportunities to train and employ Section 3 residents include, but need not be limited to, use of "upward mobility", "bridge" and trainee positions to fill vacancies; and hiring Section 3 residents in part-time positions. (c) Other business-related economic opportunities: (I) A recipient or contractor may provide economic opportunities to establish, stabilize or expand Section 3 business concerns, including micro-enterprises. Such opportunities include, but are not limited to formation of Section 3 joint ventures, financial support for affiliating with franchise development, use of labor only contracts for building trades, purchase of supplies and materials from housing authority resident-owned businesses, purchase of materials and supplies from PHA resident-owned businesses and use of procedures under 24 CFR part 963 regarding HA contracts to HA resident-owned businesses. A recipient or contractor may employ these methods directly or may provide incentives to non-Section 3 businesses to utilize such methods to provide other economic opportunities to low-income persons. (2) A Section 3 joint venture means an association of business concerns, one of which qualifies as a Section 3 business concern, formed by written joint venture agreement to engage in and carry out a specific business venture for which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible ATTACHMENTS • MINORITY BUSINESS & WOMEN BUSINESS • ENTERPRISE PLAN October 26, 2009 (,<ISHA,siv->N\74 1 D FE$RN)r�� PLANNING^ OMAHA Jim Suttle, Mayor PLANNING DEPARTMENT R.E. Cunningham, RA, F.SAME City of Omaha CITY OF OMAHA City of Omaha Planning Department Omaha/Douglas Civic Center 1819 Farnam Street Omaha,Nebraska 68183 1 Reviewed and approved 10/26, 2009 stance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing and ° ° ° Economic Recovery Act, 2008; Notice a,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 MINORITY BUSINESS/WOMEN BUSINESS ENTERPRISE PLAN INTRODUCTION Minority and women business sectors play an important part in Omaha's overall plans for future growth, progress, and prosperity. It is vital to the City's economic condition and well-being that minority and women businesses expand, thrive and prosper, generating economic stability and increased job opportunities. Towards the fulfillment and accomplishment of these important objectives, the City of Omaha remains committed to minority and women business development. The City of Omaha's approach to minority/women business development is embedded in its policy of non- discrimination in the conduct of City business including the procurement of goods, materials and services, construction and community and economic development projects. The City recognizes its obligations to each segment of the various communities it serves. It is in recognition of these responsibilities that the City established the City's Contract Compliance Ordinance. The Ordinance commits the City to: 1. Require contractors and/or vendors to provide employment opportunities without regard to race, color, sex, religion, or national origin; 2. Monitor contractor and vendor equal opportunity performance; and 3. Increase the total number and total dollar volume of City contracts awarded to minority-owned and women-owned firms. GOALS AND OBJECTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 4. Implement an outreach effort informing MBE and WBE firms and capture information on these firms doing business with the Planning Department. 5. Implement a system to identify MBE and WBE firms and capture information on these firms doing business with the Planning Department. 6. Require developers, corporations, partnerships and/or sole proprietors to register with the Human Relations Department and the Purchasing Department. In addition, require these entities to: A. Complete CC-1 (Human Relations Department) B. Complete Bid List Registration (Finance Department, Purchasing Division C. Complete Business Certification (Human Relations Department) 7. Require developers, corporations, partnerships and/or sole proprietors to provide registration information on all sub-contractors. 8. Require loan agreements to include a statement that jobs created will be made available to low-to- moderate income persons. withour request following application package has been developed to assist you inwrt complying req st for information on your business and all sub-contractors providing goods and/or services on projects financed by and/or implemented through an agreement with the City of Omaha. If you have any questions or require further assistance in completing the application package, please contact Mr. Kenneth Johnson, Sr. at 444-5165. 3 Reviewed and approved 10/26, 2009 CTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible MBE/WBE FOR EMPLOYMENT The following list of organizations is provided to assist you in identifying low-to-moderate income persons for employment opportunities. You must make concerted efforts to hire low-to-moderate income persons and document specific actions taken to achieve these objectives. To help accomplish the above goals, the following agencies should be notified of initial employment opportunities for low to moderate income persons: Nebraska Work Force Development Employment YWCA Services 222 South 29th Street 5717"F" Street Omaha, NE 68131 Omaha,NE 68117 Natalia Peart, Executive Director Mike Eastman 345-6555 593-3023 Nebraska Work Force Devt. Employment Services Omaha Opportunities Industrialization Center Blue Lion Centre 2724 North 24th Street 2421-23 North 24th Street Omaha, NE 68110 Omaha, NE 68110 Clara Ellis-Watts, Interim Director Shirley Carlson, Director 457-4222 444-3510 Urban League of Nebraska, Inc. Girls Incorporated of Omaha 3040 Lake Street 2811 North 45th Street Omaha,NE 68110 Omaha, NE 68104 Thomas H. Warren, President/CEO Miss Roberta Wilhelm, Executive Director 453-9730 457-4676 4 Reviewed and approved 10/26. 2009 Reviewed and approved 10/26, 2009 CTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible MBE/WBE FOR GOODS AND SERVICES Your company must make vendors aware of your policy to support equal opportunity utilization of minority, disabled and women-owned businesses. To accomplish this goal, you must provide a copy of the approved MBE/WBE Participation Plan to all businesses providing goods and/or services to the project. Your company must provide the opportunity for Minority Business Enterprises and Women Business Enterprises to provide goods and services through all phases of the project. A concerted effort must be made to allow these businesses to actively compete for project contracts. This effort will include utilization of the following resources and documentation of your actions to achieve these objectives. Omaha Small Business Network, Inc. 2505 North 24th Street Omaha, NE 68110 Vicki Wilson Tederman, Executive Director 453-5336 Housing and Community Development Division City Planning 1819 Farnam Street, Room 1111 Omaha, NE 68183 Kenneth E. Johnson, Sr., Economic Development Manager 444-5165 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln, NE 68509-4666 Steve Williams, Business Assistance Manager 471-3111 Purchasing Department 1819 Farnam Street, Room 1003 Omaha, NE 68183 John Leming, Purchasing Agent 444-5407 Human Rights and Relations Department Contract Compliance (MBE/WBE) 1819 Farnam Street, Room 502 Omaha, NE 68183 444-5050 5 Reviewed and approved 10/26, 2009 es: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible MBE/WBE FOR GOODS AND SERVICES Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha, NE 68102 Winsley Duran, Director 345-5000 Small Business Administration 10675 Bedford Avenue, Suite 100 Omaha, NE 68134 Kathleen Piper, ADD/MED 221-7205 U.S. Corps of Engineers 1616 Capitol Avenue Omaha, NE 68102 Hubert J. Carter, Jr., Deputy for Small Business 995-2910 • • • 6 Reviewed and approved 10/26, 2009 ed 10/26, 2009 stance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing and ° ° ° Economic Recovery Act, 2008; Notice a,NE Nebraska Continuum of Services STAFF: Angela D. Sanders Grant Writer/Research Specialist P.O. Box 11068, Omaha,Ne 68110 402-341-2231 Fax 402-341-0168 City of Omaha BUSINESS QUALIFICATION RESUME DATE: I. FIRM IDENTIFICATION: COMPANY NAME STREET ADDRESS CITY STATE ZIP CODE BUSINESS PHONE HOME PHONE MONTH & YEAR ESTABLISHED II. OWNERSHIP OF FIRM: IS THE FIRM OWNED AND CONTROLLED BY MEMBER OF MINORITY OR OTHER DISADVANTAGED GROUP?: YES n NO ❑ MINORITY WOMAN N/A ❑ TYPE OF OWNERSHIP: INDIVIDUAL n PARTNERSHIP n CORPORATION n IS 51% OWNED BY A MINORITY? YES n NO ❑ NAME AND ADDRESS OF ALL STOCKHOLDERS AND/OR PARTNERS: NAME, TITLE, HOME ADDRESS % OF OWNERSHIP III. MANAGEMENT (USE SAME FORMAT FOR ADDITIONAL MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 City of Omaha CONTRACTOR INFORMATION FORM: DATE: PROJECT ADDRESS OWNER INFORMATION: (To be filled out by the City of Omaha) OWNER'S NAME OWNER'S ADDRESS CITY/STATE/ZIP CODE . OWNER'S PHONE NUMBER OWNER'S FEDERAL TAX IDENTIFICATION NUMBER: MINORITY INFORMATION: The Owner meets the following criteria: MINORITY n WOMAN Li N/A n (If the company does not have a Federal Tax Identification Number, then provide the Owner's Social Security Number.) GENERAL CONTRACTOR INFORMATION: COMPANY'S NAME COMPANY'S ADDRESS CITY/STATE/ZIP CODE COMPANY'S PHONE NUMBER COMPANY'S FEDERAL TAX IDENTIFICATION NUMBER: MINORITY INFORMATION: The Company meets the following criteria: MINORITY (1 WOMAN n N/A n CONTRACT AMOUNT: SUBCONTRACTOR LIST: SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: MINORITY ❑ WOMAN CONTRACT AMOUNT: N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: U MINORITY WOMAN CONTRACT AMOUNT: ❑ N/A 8 Reviewed and approved 10/26, 2009 Farnam Street, Room 1003 Omaha, NE 68183 John Leming, Purchasing Agent 444-5407 Human Rights and Relations Department Contract Compliance (MBE/WBE) 1819 Farnam Street, Room 502 Omaha, NE 68183 444-5050 5 Reviewed and approved 10/26, 2009 es: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible City of Omaha SUBCONTRACTOR LIST: (Continuation) SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: n MINORITY ❑ WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: n MINORITY WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: MINORITY ❑ WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: ❑ MINORITY I WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: U MINORITY C WOMAN CONTRACT AMOUNT: n N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: n MINORITY Li WOMAN CONTRACT AMOUNT: N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A 9 Reviewed and approved 10/26, 2009 5 Reviewed and approved 10/26, 2009 es: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and, growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan. 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 10/26, 2009 or which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern: (i) Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (ii) Performs at least 25 percent of the work and is contractually entitled to compensation proportionate to its work. ntracts under federal rules and regulations. Such compliance reports shall be filed with the Human Relations Director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, `Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible ATTACHMENT (i CITY OF OMAHA SUBSIDY LAYERING STANDARDS FOR THE HOME/NSP/NAHTF PROGRAM Standard: Before committing funds to a project, the City of Omaha will evaluate the project in accordance with the following guidelines and will not invest any more HOME/NSP/NAHTF funds, in combination with other, private and/or governmental assistance, than is necessary to provide affordable housing. This standard is established in accordance with Cranston Gonzalez National Affordable Housing Act, Section 212(F)as amended and 24 CFR Part 91. Layering Guidelines: Generally, there will be multiple levels of review of the assistance received on a project. The City of Omaha will rely on the determinations of the Nebraska Investment Finance Authority, the City's Tax Increment Financing Authority and the Nebraska Equity Fund, as appropriate, in evaluating such assistance. City of Omaha Community Development staff will review the project pro-forma in assessing whether or not the proposed HOME/NSP/NAHTF fund allocation is necessary to ensure feasibility of the project. All sources and uses of funds will be detailed in applications and reviewed to determine that funding sources are committed, an evaluation of all costs associated with the development will be conducted and the reasonableness and appropriateness of the development costs will be assessed. All costs will be compared to industry standards as to their reasonableness and certified by the Construction Specialist. The City shall ensure that costs being funded by HOME/NSP/NAHTF are eligible and that per unit assistance does not exceed the maximum. Developers will be required to provide a project pro forma to the City of Omaha. The aggregate amount of assistance from the US Department of Housing and Urban Development and all other sources will be considered to ensure the viability of the project. Factors relevant to the feasibility of the project will include, among other things, rates of returns to owners and investors relative to current interest rates, long-term needs of the project and the usual and customary fees charged to the project. The target population and the needs of tenants will also be considered when reviewing a project. The City's policy is that projects serving extremely low-income persons will generally require a higher subsidy than projects serving low-income persons, and that projects serving low-income persons will require a higher subsidy than projects serving moderate-income persons, and so forth. Other factors may include whether or not the project serves primarily persons with physical or mental disability, elderly persons, or others with special needs. Additionally, non-profit organizations will generally require a higher subsidy than for-profit businesses. • Project cash flow and rate of return will also be evaluated. The City of Omaha normally will not allow an excessive gain or profit to be derived from a project. The specific standard governing rate of return is the return on investment shall not exceed twenty percent (20%); except in the case of a Single-Family Rental Rehabilitation Program project with no first mortgage, the project costs have been certified by the Planning Department, rents are affordable, and operating expenses are reasonable, the maximum return on investment shall not exceed forty percent(40%). Certification: The Bethesda Homes, LLC project located at scattered sites between Harrison Street, I-680, 72nd and Missouri River, has been evaluated in accordance with the above Subsidy Layering Standards for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Com unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Housing and Community Development Division City of Omaha Planning Department Cost Certification Form Project Name: Bethesda Homes, LLC. Rehabilitation & Lease Purchase project Project Owner: Bethesda Homes, LLC. Project Address: Scattered sites between Harrison Street, I -680, 72nd and Missouri River PROJECT COST: $ 1,080,000.00 (Note: Project consist of(7) units) The Rehabilitation Division has reviewed the project cost. In our opinion the project cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 • m-tezdintecf s V,AANA Nf �' !% City of Omaha i1=.';prey. erh;s t .'4 Housing and Community rf0 EEO,'"ro-+ Development Division ENVIRONMENTAL REVIEW RECORD DETERMINATION OF LEVEL OF REVIEW Project Name: City-wide Rehabilitation Programs ERR Project Number: 2010-001 Funding Source(s): CDBG/NSP/CDBG-R/NAHTF • Program Year: 2010 Project Location: Omaha, Nebraska Project Description: The City-wide Rehabilitation and Repair Program includes many programs that deal with the rehabilitation of single-family and multi-family housing that meet the provisions established in 24 CFR 58.35 (a)(3). This includes programs that acquire, rent, or sell the property. This also includes programs run by other agencies, but only if the Housing and Community Development Division of the City of Omaha Planning Department is the responsible environmental entity. A Tier II form must be filled out for each project site, and must also list the program under which the work is being completed. The subject project has been reviewed pursuant to HUD regulations 24 CFR Part 58, "Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities," and the following determination with respect to the project is made: ❑ Exempt from NEPA review requirements per 24 CFR 58.34( )( ) n Categorically Excluded NOT Subject to §58.5 authorities per 24 CFR 58.35()() ® Categorically Excluded SUBJECT to §58.5 authorities per 24 CFR 58.35(a)(6)"4` (A Statutory Checklist for the §58.5 authorities is attached.) ❑ An Environmental Assessment (EA) is required to be performed. (An Environmental Assessment performed in accordance with subpart E of 24 CFR Part 58 is on record.) n An Environmental Impact Statement (EIS) is required to be performed. The ERR (see §58.38) must contain all the environmental review documents, public notices and written determinations or environmental findings required by Part 58 as evidence of review, decision making and actions pertaining to a particular project. Include additional information including checklists,studies,analyses and documentation as appropriate. Prepared by: 7 !V.'e!' i/ aviZ/ti' b?-Arc -Oct Preparer Sig ture Date 17/ 2—e.0 i yzi5mg vironmental Certifying Officer Signature Date require a higher subsidy than projects serving moderate-income persons, and so forth. Other factors may include whether or not the project serves primarily persons with physical or mental disability, elderly persons, or others with special needs. Additionally, non-profit organizations will generally require a higher subsidy than for-profit businesses. • Project cash flow and rate of return will also be evaluated. The City of Omaha normally will not allow an excessive gain or profit to be derived from a project. The specific standard governing rate of return is the return on investment shall not exceed twenty percent (20%); except in the case of a Single-Family Rental Rehabilitation Program project with no first mortgage, the project costs have been certified by the Planning Department, rents are affordable, and operating expenses are reasonable, the maximum return on investment shall not exceed forty percent(40%). Certification: The Bethesda Homes, LLC project located at scattered sites between Harrison Street, I-680, 72nd and Missouri River, has been evaluated in accordance with the above Subsidy Layering Standards for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Com unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible As of December 4, 2009, the City-wide Rehabilitation Programs CEST covers the following: • HCD: o Target Area Program o Reinvestment Area Program o Barrier Removal Program o Emergency Repair Program o Urban Homestead Rehabilitation and Resale Program red sites between Harrison Street, I -680, 72nd and Missouri River PROJECT COST: $ 1,080,000.00 (Note: Project consist of(7) units) The Rehabilitation Division has reviewed the project cost. In our opinion the project cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 STATUTORY CHECKLIST Use this worksheet for projects that are Categorically Excluded under 24 CFR §58.35(a) Project Name: City-Wide Rehabilitation Programs ERR FILE#2010-001 Note: This document is a Tier I Categorically Excluded Subject to ("CEST") Statutory Checklist for all programs where the City of Omaha is the Environmental Certifying Party, and only if they involve the rehabilitation of single-family (1 to 4 units) residences and/or multi-family (5 or more) residences where the unit density will not be changed by 20% or more, and meet other requirements specified 24 CFR 58.35 (a)(3). Project activities may also include the purchase of property prior to rehabilitation, and the sale or rental of property once rehabilitation is completed. The Environmental Review Record ("ERR") for each program under this Tier I CEST must reference this document in the ERR Level of Review Determination, and a copy of this document must be included in the program's ERR file. A Tier II CEST must be completed for each project site. A blank copy of the Tier II CEST form is attached. A map of the City of Omaha boundaries/program area is also attached. This ERR must be evaluated and prepared on an annual basis. An "ERR Determination" form should be provided as a cover to this checklist. This checklist is a component of the Environmental Review Record (ERR) [§58.38]. Supplement the ERR, as appropriate, with photographs, site plans, maps, narrative and other information that describe the project. 24 CFR §58.5— NEPA-Related Federal Statutes and Authorities DIRECTIONS— For each authority, check one of the appropriate boxes under"Status". "A box" The project is in compliance, either because: (1) the nature of the project does not implicate the authority under consideration, or (2) supporting information documents that project compliance has been achieved. In either case, information must be provided as to WHY the authority is not implicated, or HOW compliance is met; OR "B box" The project requires an additional compliance step or action, including, but not limited to, consultation with or approval from an oversight agency, performance of a study or analysis, completion of remediation or mitigation measure, or obtaining of license or permit. IMPORTANT: Compliance documentation consists of verifiable source documents and/or relevant base data. Appropriate documentation must be provided for each law or authority. Documents may be incorporated by reference into the ERR provided that each source document is identified and available for inspection by interested parties. Proprietary material and studies that are not otherwise generally available for public review shall be included in the ERR. Refer to HUD guidance for more information. Statute, Authority, STATUS Executive Order, Compliance Documentation Regulation or Policy. A B cited at 24 CFR§58.5 1. Air Quality Proposed rehabilitation work at project sites, and the acquisition and • (Clean Air Act sections ® sale of project sites, will not affect air quality standards. None of the 17(c)&(d). and 40 CFR 6, 51.931 proposed project activities require an air quality permit, according to Nebraska Title 129: Air Quality Standards. Title 129 is the State of Nebraska's Air Quality Implementation Plan develped in accordance with Federal reguations(1). There are currently no non-attainment areas in Nebraska, according to the EPA(2). Asbestos will be covered under Contamination and Toxic Substances. ds for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Com unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Supporting Documentation (1)Nebraska Title 129: Air Quality Standards,Nebraska Department of Environmental Quality(NDEQ), (http://www.deq.state.ne.us/), Accessed 2-December-09. (2)Nonattainment Areas Map (http://www.epa.gov/air/data/nonat.html?st—NE—Nebraska), Accessed 2-December-09 2. Airport Hazards Based on maps provided to HCD by the Omaha Airport Authority (Clear Zones and Accident ® ❑ ("OAA"), there are no residential structures located within the Clear Potential Zones)[24 CFR Zone of Eppley Airfield and/or Millard Airport (1)(2). Offutt Air 51D] Force Base,the closest military runway, is located over four miles from the City of'Omaha(3). Based on this information, Airport Hazards will not be present for individual project sites. Supporting Documentation (1) Airport Layout Drawing, Eppley Airfield, Coffman Associates, December 2, 1997. (2) Airport Layout Plan, Millard Airport, Lamp, Rynearson, & Associates,January 6,2009. (3)www.earth.google.com,accessed 23-June-09 3. Coastal Zone There are no coastal zones within Nebraska(1). Management ® ❑ [Coastal Zone Management Supporting Documentation Act sections 307(c)&(d)] (1)Ocean and Coastal Resource Management, http://coastalmanagement.noaa.gov/mystate/welcome.html,Accessed 2-December-09 4. Contamination and Lead Toxic Substances ❑ [24 CFR 58.5(i)(2)] Project sites may contain lead-based paint on exterior and interior surfaces. Project sites must be evaluated for lead-based paint prior to the start of rehabilitation. Alternatively, it may be assumed that a project site contains lead-based paint. In either case, lead-safe work practices must be followed by contractors working for the City. Additionally, the City must ensure that lead-risk reduction measures have been implemented at the project site. Potential project sites located east of 72nd Street may fall within the Omaha Lead Superfund Site. Properties within this area may have lead • concentrations in soil which exceed the residential screening level (400 parts per million). Where required, the EPA is conducting soil remediation and exterior paint stabilization in these areas. HUD has stated that the presence of the superfund site does not prevent the use of HUD funds for projects located within its boundaries (I). However, HCD must work with the EPA to evaluate soil conditions at all project sites. Prior to the start of rehabilitaiton, the address of the project location will be given to the EPA. The EPA will then determine if the property has been tested for lead contamination. If not, the EPA will test the yard for lead contamination. Remediation of contamination will then occur, if needed. HCD will not wait for EPA to complete soil remediation before starting rehabilition(2). Other Potential Contaminants Each project site must be evaluated for the presence of contamination • and/or toxic substances prior to acquisition, or if acquisition is not part of the scope of work, prior to the start of rehabilitation. If there are no Asbestos will be covered under Contamination and Toxic Substances. ds for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Com unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible obvious signs of contamination and/or toxic substances, then planned project activities may proceed. If contamination and/or toxic substance are present,then the scope of work will need to be modified. If contamination and/or toxic substances are discovered through the course of rehabilitation and/or repair work, then they will be dealt with according to Section 7.20 Hazardous Material presented in Standard Specification for Public Works Construction (3). A copy of Section 7.20 is attached. The presence of contamination and/or toxic substances must be evaluated for each project site and the results must be summarized • on a project specific Tier II CEST form. The Tier II CEST form must also identify what measures were taken to address contamination and/or toxic substances. • Supporting Documentation (I) Email from Paul Mohr, HUD, to Bill Lukash, City of Omaha, regarding the Omaha Lead Superfund Site, dated 5-March-09. (2) Verbal agreement established between Robert Field, EPA Omaha Lead Superfund Site Project Manager and Bill Lukash, HCD City Planner,2009. (3) Standard Specifications for Public Works Construction, 2003 3rd Edition, August 2003 Version. 5. Endangered Species 150 CFR 402} El The United State Fish and Wildlife Service and the Nebraska Game ® and Parks Commission have established agreements with HCD that ICI rehabilitation of existing single-family residences will not adversely impact threatened or endangered species, or critical habitats(1)(2). Supporting Documentation Letter from June DeWeese, US Fish and Wildlife Service, to Bill Lukash, HCD, 8-October-2009. Letter from Carey Grell, Nebraska Game and Parks Commission, to Bill Lukash, HCD, 12-August-2009. 6. Environmental Justice The City's rehabilitation programs will have a positive impact on [Executive Order 12898] ® ❑ individuals living in older housing. Acquisition and resale of rehabilitated properties will provide more suitable housing in older, at-risk neighborhoods. No individuals or groups will be adversely impacted by housing rehabilitation programs. If residents are relocated during rehabilitation activities,then they will receive moving costs and relocation payments in accordance with the Federal Uniform Relocation Act and the Nebraska Relocation Assistance Act. Programs run by other agencies which fall under this environmental review will utilize programs identified in the Consolidated Plan to provide replacement dwelling units (1). Supporting Documentation (1) Omaha-Council Bluffs Consortium Consolidted Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy and 2008 Action Plan, undated. Not included in ERR. 7. Explosive and The presence of explosives and/or flammable operations at or near Flammable Operations ❑ ® project sites must be evaluated. The results must be summarized on a [24 CFR 51C] project specific Tier II CEST form. 8. Farmland Protection Acquisition, resale, and rehabilitation will not affect farmland (1). [7 CFR 658] ® ❑ Additionally, project sites will be located within the Omaha city limits, in a residential neighborhood. Farmland is not present within the m unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • Omaha city limits(2). Supporing Documentation (1) Omaha-Council Bluffs Consortium Consolidted Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy and 2008 Action Plan,undated. (2)City of Omaha GIS records, accessed 23-June-09. 9. Floodplain Each project site must be evaluated to determine if it falls within a Management ❑ El Each Fringe area(also known as the 100-year or 1% flood plain). The [24 CFR 55,Executive Order 11988] results must be summarized on a project specific Tier II CEST form. 10. Historic Preservation Each project site must be evaluated to determine if it is a historic [36 CFR 800] El ® property or falls within a historic neighborhood. The evaluation must be conducted following the procedures established in the Programmatic Agreement with the State Historic Preservation Officer (1). A blank Section 106 Review form is attached. The results of the evaluation must be included on a project-specific Tier II CEST form. Supporting Documentation (1) Programmatic Agreement Between the City of Omaha, Nebraska and the Nebraska State Historic Preservation Officer, for the U.S. Department of Housing and Urban Development Programs Administered by the City of Omaha,Nebraska, May,2009. 11. Noise Control Proposed work at project sites will include the acquisition, resale, and [24 CFR SIB] ❑ ® rehabilitation of existing single-family homes(1 to 4 units). HUD does not prohibit the purchase, resale, and rehabilitation and/or repair of housing in Normally Unacceptable and Unacceptable noise zones, however they do encourage adopting noise abatement strategies(1). Individual projects must be evaluated to determine if they are near loud noise sources. If so, noise abatement should be conducted whenever possible, cost allowing. • Supporting Documentation (1)24 CFR 51,Subpart B—Noise Abatement and Control 12. Water Quality(Sole There are no sole source aquifers within Nebraska, according to the Source Aquifers) ® ❑[40 CFR 149] Environmental Protection Agency, Region VII (1). Additionally, proposed activities at the project site will not impact water quality (2). Supporting Documentation (1) EPA Sole Source Aquifer Designations, http://www.epa.gov/safewater/sourcewater/pubs/grg_ssamap_reg7.pdf, Accessed 3-February-09. (2) Omaha-Council Bluffs Consortium Consolidted Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy and 2008 Action Plan, undated. Not included in ERR. 13. Wetland Protection According to United States Fish and Wildlife Service records there are 4 CFR 55. Executive ® ❑ Order 11990] no residential properties located within designated wetland areas at this time(1). Programs under this environmental review will not acquire vacant or undeveloped land which could impact wetlands(2). Supporting Documentation (1)US Fish and Wildlife Wetland GIS records, http://www.fws.gov/wetlands/, Accessed 4-February-09. otection Acquisition, resale, and rehabilitation will not affect farmland (1). [7 CFR 658] ® ❑ Additionally, project sites will be located within the Omaha city limits, in a residential neighborhood. Farmland is not present within the m unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible PREPARER: /!) SIGNATURE: L� r DATE: 07' ✓.6cr+l — �, PREPARER NAME & TITLE: �� // // Gv -s `l /-/�4r cr PREPARER'S AGENCY (If Different from Responsible Entity): RESPONSIBLE ENTITY APPROVING OFFICIAL: SIGNATURE: r ' "� " DATE: /2'I)—$l4'1' APPROVING OFFICIAL NAME &TITLE: i River PROJECT COST: $ 1,080,000.00 (Note: Project consist of(7) units) The Rehabilitation Division has reviewed the project cost. In our opinion the project cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 (2)Omaha-Council Bluffs Consortium Consolidted Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy and 2008 Action Plan, undated. Not included in ERR. 14. Wild and Scenic Rivers The nearest wild and/or scenic river (the Niobrara River) is located [36 CFR 297] ® over 100 miles from the City of Omaha(1)(2). Acquisition, resale, and rehabilitation of residences will not impact wild and/or scenic rivers. Supporting Documentation (1) Wild and scenic Rivers, http://www.rivers.gov/publications/rivers-table.pdf,Accessed 3-February-09. (2)www.google.earth.com, Accessed 10-April-09. DETERMINATION: I=1 Box "A" has been checked for all authorities. The project can convert to Exempt, per §58.34(a)(12), since the project does not require any compliance measure (e.g., consultation, mitigation, permit or approval) with respect to any law or authority cited at §58.5. The project is now made Exempt and funds may be drawn down; OR Box "B" has been checked for one or more authority. The project cannot convert to exempt since one or more authority requires compliance, including but not limited to consultation with or approval from an oversight agency, performance of a study or analysis, completion of remediation or mitigation measure, or obtaining of license or permit. Complete pertinent compliance requirement(s) publish NOI/RROF, request release of funds (HUD-7105.15) and obtain HUD's Authority to Use Grant Funds (HUD-7015.16) per §§58.70 & 58.71 before committing funds; OR The unusual circumstances of this project may result in a significant environmental impact. The project requires preparation of an Environmental Assessment(EA). Prepare the EA according to 24 CFR Part 58 Subpart E. Part 58.6 Requirements [24 CFR §58.6] Complete the following table for all projects. §58.6.Requirements: Status(Y/N) Source Documentation Flood Disaster Protection Act [Flood Each project site located in a floodplain must have floodplain Insurance] [§58.6(a)] No insurance. Proof of floodplain insurance must be attached to the project specific Tier II CEST form. Coastal Barrier Resources There are no coastal zones within Nebraska(1). Act/Coastal Barrier Improvement Yes Act [§58.6(c)] Supporting Documentation (I)Ocean and Coastal Resource Management, http://coastalmanagement.noaa.gov/mystate/welcome.html, Accessed 2-December-09 Airport Runway Clear Zone As previously stated, there are no residential properties within any Disclosure&Notification [58.6(d)] Yes airport runway clear zones within Omaha. Supporting Documentation See Airport Hazards, above. tegy and 2008 Action Plan, undated. Not included in ERR. 13. Wetland Protection According to United States Fish and Wildlife Service records there are 4 CFR 55. Executive ® ❑ Order 11990] no residential properties located within designated wetland areas at this time(1). Programs under this environmental review will not acquire vacant or undeveloped land which could impact wetlands(2). Supporting Documentation (1)US Fish and Wildlife Wetland GIS records, http://www.fws.gov/wetlands/, Accessed 4-February-09. otection Acquisition, resale, and rehabilitation will not affect farmland (1). [7 CFR 658] ® ❑ Additionally, project sites will be located within the Omaha city limits, in a residential neighborhood. Farmland is not present within the m unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible . • . • : - ii. 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City of Omaha Planning Department Housing and Community Development Division Tier II Environmental Assessment For City-wide Rehabilitation Programs (2010-001) Project Name: Project Address: Project Activity: Program: The Tier I CEST requires a Tier II review for project specific activities. The Tier II review must address the following Statutory Checklist items and Section 58.6 Requirements: • Contamination and Toxic Substances • Explosive and Flammable Operations • Floodplain Management • Historic Preservation • Noise Control • Floodplain Insurance for project sites in flood plains. Enter A in the Status box if there are no compliance issues associated with this site-specific project. Enter B in the Status box if additional steps are required to address this issue (e.g., removal of hazardous materials). The following table presents the Tier II determinations for these categories. Status Impact Categories A or B Source Documentation Contamination and Toxic Substances Explosives and Flammable Operations Floodplain Management Historic Preservation Noise Control Flood Disaster Protection Act A project-specific Tier II environmental review has been performed at the above location in compliance with HUD environmental review regulations (24 CFR Part 58) and related laws, authorities and requirements. The review has been performed prior to the commitment of HUD or non-HUD funds, as required by §58.22(a) and (c). er §§58.70 & 58.71 before committing funds; OR The unusual circumstances of this project may result in a significant environmental impact. The project requires preparation of an Environmental Assessment(EA). Prepare the EA according to 24 CFR Part 58 Subpart E. Part 58.6 Requirements [24 CFR §58.6] Complete the following table for all projects. §58.6.Requirements: Status(Y/N) Source Documentation Flood Disaster Protection Act [Flood Each project site located in a floodplain must have floodplain Insurance] [§58.6(a)] No insurance. Proof of floodplain insurance must be attached to the project specific Tier II CEST form. Coastal Barrier Resources There are no coastal zones within Nebraska(1). Act/Coastal Barrier Improvement Yes Act [§58.6(c)] Supporting Documentation (I)Ocean and Coastal Resource Management, http://coastalmanagement.noaa.gov/mystate/welcome.html, Accessed 2-December-09 Airport Runway Clear Zone As previously stated, there are no residential properties within any Disclosure&Notification [58.6(d)] Yes airport runway clear zones within Omaha. Supporting Documentation See Airport Hazards, above. tegy and 2008 Action Plan, undated. Not included in ERR. 13. Wetland Protection According to United States Fish and Wildlife Service records there are 4 CFR 55. Executive ® ❑ Order 11990] no residential properties located within designated wetland areas at this time(1). Programs under this environmental review will not acquire vacant or undeveloped land which could impact wetlands(2). Supporting Documentation (1)US Fish and Wildlife Wetland GIS records, http://www.fws.gov/wetlands/, Accessed 4-February-09. otection Acquisition, resale, and rehabilitation will not affect farmland (1). [7 CFR 658] ® ❑ Additionally, project sites will be located within the Omaha city limits, in a residential neighborhood. Farmland is not present within the m unity Development Ma ager. 17bolo iisy Burton, Contract Administration and Compliance Manager Revised and approved 12/4/2009 provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192;Ordinance No. 35344, Sections 1, 9-26-00) of theance Seventh Street,SE.,Room 10276, Budget,by facsimile to(202)395-5806 quality, Washington,DC 20410-0500.Due to or you may send an e-mail to: information to be collected;and g OIRA DOCKE7'@omb.eop.gov.Please (d)Ways we could minimize the security measures at the HUD — p'g burden of the collection of the Headquarters building,an advance send a copy of your comments to Kevin information on the respondents,such as appointment to review the FONSI must Skenadore,Bureau of Indian Education, through the use of automated collection be scheduled bycallingthe Regulations 1849 C Street,NW.,Mail Stop 3609— MIB,Washington,DC 20240-0001. techniques or other forms of information Division at(202) 708-3055(this is not a technolo toll-free number). Facsimile to 202-208-3271. Please note that an agency may not 2. Waivers of Alternative FOR FURTHER INFORMATION CONTACT:You sponsor or request,and an individual Requirements.Alternative requirements may request further information or need not respond to,a collection of in this Notice and the October 6,2008, obtain copies of the information information unless it has a valid OMB - Notice(73 FR 58330)may be waived in collections from Chris Redman, Control Number. the same manner as regulatory Education Planning Specialist, OMB has up to 60 days after - requirements.Grantees must submit a Telephone(405)605-6051,extension publication of this document in the written request to HUD.Upon a 305, Federal Register to make a decision on determination of good cause,the SUPPLEMENTARY INFORMATION: the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible This review shall be retained as a component of the City's Environmental Review Record (ERR). Consult the Tier I review listed above for further information as to compliance with other laws and authorities for this HUD-assisted project or program. Prepared by: Date: Approved by: Date: May 2009 FFICIAL NAME &TITLE: i River PROJECT COST: $ 1,080,000.00 (Note: Project consist of(7) units) The Rehabilitation Division has reviewed the project cost. In our opinion the project cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 ___ 8'8' • w11,4 ... g,,,_ . GO CIO 'ii°: •-k- ._..citsr,,,a-Q0c, ',%.____71- c'c•tack, - ccaN. ..0•%,. i iu.,'FPi'tzW' , tr-o_c24 ..,a. ____ fozo`'aots „r!0=-•a617aW.--- .- ///,\ _____—=—/\__ ------77 ---------1:<0. -7. 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Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible _ i� f _ t 3G 7 g ref I o/ a _: `KE=" s''l His .,. 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A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Page 1 of 1 • Lukash, William H. (Ping) From: Mohr, Paul F [PauI.F.Mohr@hud.gov] Sent: Thursday, March 05, 2009 10:09 AM To: Lukash, William H. (Ping) Subject: RE: Omaha Superfund Bill, The presence of the Omaha Lead Superfund site does not preclude the City or the Omaha Housing Authority from using HUD assistance in that area. However, HUD projects need to conform to remedial actions that the EPA and its contractors are undertaking to address the lead contamination and must also comply with HUD's lead-safe housing rule, 24 CFR Part 35. Hope this helps. Paul Mohr • HUD Regional Environmental Officer From: Lukash, William H. (Ping) [mailto:William.Lukash@ci.omaha.ne.us] Sent: Thursday, March 05, 2009 9:06 AM To: Mohr, Paul F Subject: Omaha Superfund Paul, We discussed the Omaha Superfund problem a few weeks ago and I think we probably need a • determination made in.writing, rather than just a verbal "it's okay." I have to have something for my records. Could you provide a statement that the presence of the Superfund Site does not limit our ability to use HUD funds on housing rehab projects. Thanks, Bill • William H. Lukash, P.G. City Planner City of Omaha Planning Department (402) 444-4248 william.lukash(a.ci.omaha.ne.us 1 _ a-::e:, {.d 9 /tpW 'R / / J '!Nlyll r_� 2�.68a.°3� �'Q .' 3 A P /f• / . 11J1(l r i - +9b 5' I I i E. gaagy; 4.111..13 // J�r �- 11 yp i,;. it s3`- s. 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Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • .... ...•• . •I . • • NA NB.A, Nit- •‘ - 04.-. • -- ,• , -°•51 . . . , cl,..,i;.,, ' '-..'. 1. 4 ,i... -4i...; • ,... -i . .....„. , . • . , • . ,..„ _., ,. • 4••-, .. . .,•;,.. 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F.. -.e. tio 1'/ \ •`\.; =may.I t 11:i : ' ' ,A 1 0; z 1-: I I,/ / I-- �-/f j - a o 1 1 ' -'1 �1 I I rvl� , �� iji•t/ /I�...- ' \ • - -51 Q ,_ 3a l 1 I I /ii >f'/ \\ • 1 c- 3 t, I I I `-jam 1 I o 1 i g1 .' � " K '� I I :I_,1 1�� z •�; w4,- ./F4. / % m ;at (� pc = i l�glo0 • 1%v;' ;� I i- sl at .. 33l lo_'F 1 12 11 ;.IS}., ..\0°\\'\''''' -lif : IIIIII. •-s*:•• ., \: • -r- ,S 1 ;i!!! E • \ • \ ,-01, %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible . i 7—Legal Relations And Public Responsibility I property damage, injury. or death resulting from the use of explosives. The ! Contractor shall notify property owners and public utility companies near WM the proposed detonation before using any explosives. '' 7.19 Third:Party Beneficiary Clause. t� The parties executing this contract specifically agree that the intent of the ,; contract is not to create any individual or legal entity as a third-party lila '' beneficiary. Furthermore, the contract does not authorize any individual or :' , legal entity not party to the contract to maintain an action for damages fall 44,, under said contract provisions. 1 7.20 Hazardous Material. GO gr i.i. In the event the Contractor encounters material on site reasonably believed ,+' to be a CERCLA hazardous substance in concentrations that may constitute A a substantial hazardous waste as defined in 40 CFR Part 261 that has not been rendered harmless, the Contractor may test (at the Contractor's ell i- •. expense) the suspected material using the appropriate EPA technology. If the material is determined to be hazardous,the Contractor shall immediately so stop work in the affected area, safely secure the work site, and immediately • notify the Engineer. The.Contractor shall continue work in other areas of .11011 the project unless otherwise directed. Yi OP The Contractor shall-treat abnormal conditions with extreme caution. The Contractor shall meet the requirements and regulations-of all applicable • OP Local, State, and Federal Agencies when handling, transporting, and L; !` disposing of hazardous material or toxic waste. 111.1 1 : ;It:. Unless specifically addressed in the contract documents, handling, so l° processing, and/or disposing of such hazardous material shall be considered y£. 1 outside of the scope of the contract. Additional work associated with • 'Y ,, ii. handling, processing, and/or disposing of the hazardous waste or materials will constitute Extra Work as defined in section 4.03. IP i The City of Omaha shall not consider the Contractor the "Generator, " �I!I1 Owner, or Responsible Party" for any hazardous waste or hazardous 11111 ,o, 31; material discovered in the normal performance of work associated with this • ' i1 contract, nor during the performance of any "Extra Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible I Nebraska Game and Parks Commission 33r:t,St. P.O. Box oS503-037o Phone:4.02-.471-o(ol I Fax:4.02-471-.5528 itdoorNebraska.orp.. August 12, 2009 William Lukash City of Omaha, Planning Department 1819 Fantail StreCt, Suite I 100 Omaha, NE 68183 Dear Mr. Lukash: This is in regard to your June 10, 2009 letter which outlines the efforts of the City of Omaha Planning Department, Housing and Community Development Division to conduct rehabilitative work on single-family residences and establish new housing in existing neighborhoods to stabilize and revitalize the community. The Housing and Community Development Division has many federally funded programs, and thus.are required to conduct annual ,environmental reviews Oar each program, The [lousing and Community Development Division believes that a majority of the programs, specifically those identified in the June 10, 2009 letter, will not impact slate- listed threatened and endangered species or critical habitats, and requests our review pursuant to the National Environmental Policy Act (NEPA). • Nebraska Game and Parks Commission (NG-.PC) staff members have reviewed the list of programs and projects in your June 10`h letter. We are granting a programmatic clearance for proposed projects where impacts to state-listed threatened and endangered species, general fish. and wildlife resources. and migratory birds are not likely to occur. The projects identified in your June letter are included in this clearance. The identified projects will occur within the city limits or Omaha and: . a[Tee existing housing. • 2. or provide new housing in established neighborhoods on previously disturbed ground Per our phone conversation, a report listing. the Frojec:s covered under this programmatic clearance will be due on an annual basis by Juiy 31, and should he sent to my attention at the address listed above or by email. Tins programmatic ,:.;learance s valid until July 3 i. 2012. F„mire clearances must he requested in vdiiit to toy attention at the address above or by email. No additional review or clearance is required b this office for those protects identified in your .1une 0`11 let ter that lit one of the two categories listed :Move, • ii. handling, processing, and/or disposing of the hazardous waste or materials will constitute Extra Work as defined in section 4.03. IP i The City of Omaha shall not consider the Contractor the "Generator, " �I!I1 Owner, or Responsible Party" for any hazardous waste or hazardous 11111 ,o, 31; material discovered in the normal performance of work associated with this • ' i1 contract, nor during the performance of any "Extra Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible Thank you for the opportunity to streamline the review process while ensurint4 the protection of Nebraska's w ldfif resources. If ou have any questions, r(CaSC COlit3C1 me at (402) 471-5423 or carcv.ereIVp:net:usaska.,20,,. Sincerely. • e7L) Carey Grell Environmental Analyst Realty and Environmental Services Division • • er PROJECT COST: $ 1,080,000.00 (Note: Project consist of(7) units) The Rehabilitation Division has reviewed the project cost. In our opinion the project cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 3 . • / U, 200 o`•� , •Q Planning Department ' Omaha/Douglas Civic Center 'j 1819 Farnam Street,Suite 1100 • Omaha,Nebraska 68183 ti• (402)443-5150 Telefax(402)44.4-6140 R 'rFn FEB1' r City of Omaha Steven N.Jensen,AICP,LA Jim Suttle,Mayor June 10, 2009 Director Carey Grell • Environmental Analyst Supervisor Nebraska Game and Parks Commission 2200 North 33rd Street Lincoln, NE 68503 Dear Ms. Grell: The Housing and Community Development ("HCD") division of the City of Omaha Planning , Department conducts rehabilitative work on single-family residences and establishes new housing in existing neighborhoods to stabilize and revitalize our community. Page 101 of the enclosed Omaha-Council Bluffs Consortium Consolidated Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy ("Consolidated Plan") and 2008 Action Plan ("Action Plan")presents our list of objectives. HCD has many federally funded programs, which.we use to achieve these objectives. Because the programs are federally funded, we are required to conduct an annual environmental review for each program. Nearly all of the environmental reviews for our rehabilitation, repair, and infill new construction programs are tiered, meaning that an overall program review is conducted first ("Tier I"), and then a subsequent, site-specific review ("Tier II") is conducted later. Our environmental reviews are conducted in this way'because target properties will not be identified when the Tier I review is conducted. Typically there are several hundred Tier II reviews conducted each year. HCD believes that a majority of our programs will not impact threatened and endangered species and/or critical habitats because they only affect existing housing, or new housing in established neighborhoods. We seek concurrence on this opinion for the following programs (generally following the list starting on page 220 of the Consolidated Plan.) Community Development Block Grant Sinnle-Family Rehabilitation • Target Area Program —Rehabilitation of single-family housing • Reinvestment Area Program— Rehabilitation of single-family housing • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program — Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • .t' 4T.r32- • ;u�w.`. Accessibilit • Barrier Removal Program—Removal of ban-iers for persons with special physical needs pc, T7o„sing Development ry�� Neighborhood Revitalization Strategy.Area Infill Housing Redevelopment— Construction -- `r ; :'' of new housing units in existing neighborhoods ` • HOME Investment Partnership Program • Rental Housing Rehabilitation • Rental Housing Rehabilitation — Rehabilitation of existing, vacant single-family rental residences Owner-occupied Housing Development • Single-family New Infill Housing Program — Construction of new housing in existing neighborhoods • Single-family Rehabilitation and Resale Program — Rehabilitation and resale Of vacant single family homes Neighborhood Stabilization Program (To be included in 2010 Action Plan) • • Single-family Home CROWN Rent-to-Own Rehabilitation Program — Acquisition and rehabilitation of abandoned and foreclosed homes • Urban Homestead Rehabilitation and Resale Program — Acquisition, rehabilitation, and resale of abandoned and foreclosed homes • Demolition and Construction of New Housing Program — Acquisition and demolition of abandoned and foreclosed homes, and construction of new housing (Note: this program • requires an Environmental Assessment) Other • Lead-based Paint Hazard Control Program — Mitigation of lead-based paint hazards in single-family and multi-family residences HCD is also the responsible entity for Omaha Housing Authority ("OHA") and New Community Development Corporation("NCDC") environmental reviews. We also seek concurrence for the following NCDC and OHA programs: • NCDC Leap Grant— Lead Based Paint • OHA Housing Maintenance — Maintenance and repair of single-family and multi-family residences. • OHA Housing Purchase—Purchase and renovation of existing homes None of the programs listed above require an Environmental Assessment or Environmental Impact Statement unless unusual circumstances are encountered, or as noted above, they are part of the Demolition Program or the Demolition and Construction of New Housing Program. We Sinnle-Family Rehabilitation • Target Area Program —Rehabilitation of single-family housing • Reinvestment Area Program— Rehabilitation of single-family housing • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program — Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible k,. o°: •l tted programs that are classified as Exempt (Title 24, Part 58, Subpart D, Section 58.34 ,pt Activities) or Categorically Excluded Not Subject to Section 58.5 (Title 24, Part 58, D, Section 58.35). you have any questions or comments, please feel free to contact me at your convenience. My •::�s'telephone number is (402) 444-4248 and my email address is william.lulcash cr,ci.onzaha.ne.us. Thank you, • William H. Lukash,PG City Planner Enclosures ct cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 K�ENT OF Ty United States Department of the Interior ; , 2 FISH AND WILDLIFE SERVICE �;� Ecological Services Nebraska Field Office ARCH 3.��a� 203 West Second Street Grand Island,Nebraska 6880 i October 8, 2009 FWS-NE: 2010-082 William H. Lukash, PG City of Omaha, Planning Dept. 1819 Farnam Street, Suite 1100 Omaha,NE 68183 RE: Community Development Program,Douglas County, Nebraska Dear Mr. Lukash: This responds to your September 30, 2009,request to the U.S. Fish and Wildlife Service (Service) regarding the subject project. The Service has responsibility for conservation and management of fish and wildlife resources for the benefit of the American public under the following authorities: 1 p Endangered Species Act of 1973 (ESA),2) Fish and Wildlife Coordination Act, 3) Bald and g Golden Eagle Protection Act, and 4) Migratory Bird Treaty Act. The National Environmental Policy Act (NEPA)requires compliance with all of these statutes and regulations. Based on the information submitted,the Service concurs that the proposed project will have no adverse affects to fish and wildlife resources protected under the above authorities. Should changes to the proposed project occur or new information regarding fish and wildlife resources become available, this determination is no longer yalid. Further consultation with the Service will be necessary. All federally listed species under ESA are also State-listed under the Nebraska Nongame and Endangered Species Conservation Act. However, there are also State-listed species that are not federally listed. To determine if the proposed project may affect State-listed species, the Service recommends that the project proponent contact Michelle Koch, Nebraska Game and Parks Commission, 2200 N. 33rd Street, Lincoln,NE 68503-0370 The Service appreciates the opportunity to review and comment on the subject project proposal. If you have any questions regarding these comments, please contact John Cochnar of this office at John Cochnar(fws.gov or telephone number(308) 382-6468, extension 20. Sincerely, L1.4cu1 June DeWeese Nebraska Field Supervisor cc: NGPC; Lincoln, NE (Attn: Michelle Koch) NGPC; Lincoln, NE (Attn: Carey Grell) on of single-family housing • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program — Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 0I.+AiIA•.vR-, Planning Department °', f�. Omaha/l)uuglas civic( cnur tfio �! Omaha,Nebraska 68183 ;,- -?--7. 1 cictax(402)444-614il r "'�"l�yP R. E. Cunningham, RA,ESAME City Of Omaha Director aim Soule,Mayor June 9, 2 0 5, -- 3° Robert Harms 1,'N`' United States Fish and Wildlife Service 203 West 2id Street Federal Building, 2oi1 Floor Grand Island, NE 68801 Dear Mr. Harms: • The Housing and Community Development ("HCD") division of the City of Omaha Planning Department conducts rehabilitative work on single-family residences and establishes new housing in existing neighborhoods to stabilize and revitalize our community. Page 1.01 of the enclosed Omaha-Council Bluffs Consortium Consolidated Submission for Community Development Programs: 2008 to 2012 Five-Year Strategy ("Consolidated, Plan") and 2008 Action.Plan ("Action Plan") presents our list of objectives. HCD has many federally funded programs which we use to achieve these objectives. Because the programs are federally funded, we are required to conduct an annual environmental review for each program. Nearly all of the environmental reviews for our rehabilitation, repair, and infill new construction programs are tiered, meaning that an overall program review is conducted . first ("Tier I"), and then a subsequent, site-specific review ("Tier II") is conducted later. Our environmental reviews are conducted .in this way because target properties will not be identified when the Tier I review is conducted. Typically there are several hundred Tier I1 reviews conducted each year. HCD believes that a majority of our programs will not impact threatened and endangered species and/or critical habitats because they only affect existing housing, or new housing in established neighborhoods. We seek concurrence on this opinion for the following programs (generally following the list starting on page 220 of the Consolidated Plan.) Community Development Block Grant Single-Family Rehabilitation • Target Area Program—Rehabilitation of single-family housing • Reinvestment Area Program—Rehabilitation of single-family housing • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program—Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) ram — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • • Housing Accessibility • Barrier Removal Program—Removal of barriers for persons with special physical needs Housing Development • • Neighborhood Revitalization Strategy Area infill Housing Redevelopment—Construction of new housing units in existing neighborhoods HOME Investment Partnership Program Rental Housing Rehabilitation • Rental Housing Rehabilitation — Rehabilitation of existing, vacant single-family rental residences . • Owner-occupied Housing Development • Single-family New Infill Housing Program — Construction of new housing in existing neighborhoods • Single-family Rehabilitation and Resale Program — Rehabilitation and resale of vacant single family homes Neighborhood Stabilization Program(To be included in 2010 Action Plan) • Single-family Home CROWN Rent-to-Own Rehabilitation Program — Acquisition and rehabilitation of abandoned and foreclosed homes • Urban Homestead Rehabilitation and Resale Program — Acquisition, rehabilitation, and resale of abandoned and foreclosed homes • Demolition and Construction of New Housing Program —Acquisition and demolition of abandoned and foreclosed homes, and construction of new housing (Note: this program requires an Environmental Assessment) Other • Lead-based Paint Hazard Control Program— Mitigation of lead-based paint hazards in single-family and multi-family residences • Streetscaping—Although not specifically covered in the Consolidated Plan, streetscaping is commonly undertaken to improve the visual quality of a neighborhood or business district. Streetscaping include removing existing sidewalks, and replacing them with new walking surfaces, and other land scaping. HCD is also the responsible entity for Omaha Housing Authority("OHA") and New Community Development Corporation ("NCDC") environmental reviews. We also seek concurrence for the following NCDC and OHA programs: • NCDC Leap Grant—Lead Based Paint • OHA Housing Maintenance — Maintenance and repair of single-family and multi-family residences. • OHA Housing Purchase—Purchase and renovation of existing homes • • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program—Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) ram — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible None of the programs listed above require an Environmental Assessment or Environmental Impact Statement unless unusual circumstances are encountered, or as noted above, they are part of the Demolition Program or the Demolition and Construction of New Housing Program. We have omitted programs that are classified as Exempt (Title 24, Part 58, Subpart D, Section 58.34 Exempt Activities) or Categorically Excluded Not Subject to Section 58.5 (Title 24, Part 58, • Subpart D, Section 58.35). HCD currently has a working agreement with the Nebraska Game and Parks Commission. In addition to the Consolidated Plan, I have included our letter to Nebraska Game and Parks and their response letter which establishes our working agreement. Streetscaping was not addressed in our letter to them, and that is being addressed by an addendum to our current agreement. The addendum is not included because it has not yet been agreed to. Through personal communication with Carey Grell, Nebraska Game and Parks indicated they will accept the streetscaping addendum. If you have any questions or comments, please feel free to contact me at your convenience. My telephone number is (402) 444-4248 and my email address is william.Iukash( ci.omaha.ne.us. Thank you, J • William H. L[ikash, PG • City Planner Enclosures Control Program— Mitigation of lead-based paint hazards in single-family and multi-family residences • Streetscaping—Although not specifically covered in the Consolidated Plan, streetscaping is commonly undertaken to improve the visual quality of a neighborhood or business district. Streetscaping include removing existing sidewalks, and replacing them with new walking surfaces, and other land scaping. HCD is also the responsible entity for Omaha Housing Authority("OHA") and New Community Development Corporation ("NCDC") environmental reviews. We also seek concurrence for the following NCDC and OHA programs: • NCDC Leap Grant—Lead Based Paint • OHA Housing Maintenance — Maintenance and repair of single-family and multi-family residences. • OHA Housing Purchase—Purchase and renovation of existing homes • • Emergency Repair Program — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program—Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) ram — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible PROGRAMMATIC AGREEMENT BETWEEN THE CITY OF OMAHA, NEBRASKA AND THE NEBRASKA STATE HISTORIC PRESERVATION OFFICER, FOR U.S. DEPARTMENT OF HOUSING AND URBANDEVELOPMENT PROGRAMSADMINISTERED BY THE CITY OF OMAHA,NEBRASKA WHEREAS, the City of Omaha, State of Nebraska ("City"), administers grant programs from the United States Department of Housing and Urban Development ("HUD"), which include, but are not limited to the Community Development Block Grant ("CDBG") program, HOME program, Neighborhood Stabilization Program, and other HUD programs (collectively, "HUD Programs") for which the City assumes HUD's environmental review responsibility pursuant to 24 C.F.R. Part 58; and WHEREAS, in the administration of HUD Programs and pursuant to 24 C.F.R. Part 58, the City assumes responsibility for compliance with the requirements of Section 106 of the National Historic Preservation Act, as amended [16 USC Sec. 470f] as implemented at 36 C.F.R. Part 800 ("Section 106"); and WHEREAS, the City or other participant in the development process,including public or private nonprofit or for-profit entities, or any of their contractors, may undertake activities that include, but are not limited to, acquisition, land-banking, leasing, repair, rehabilitation, renovation, improvement, demolition, conversion, and new construction of residential and non-residential properties, structures or facilities, each of which is an undertaking ("Undertaking") as defined pursuant to 36 C.F.R. Part 800.16; and WHEREAS, the City has determined that Undertakings may have an effect on properties included in or eligible for inclusion in the National Register of Historic Places and has consulted with the Nebraska State Historic Preservation Officer ("SHPO") and the Advisory Council on Historic Preservation (hereinafter"ACHP") pursuant to 36 C.F.R. Part 800.14; and WHEREAS, the principles set forth in the ACHP's Policy Statement on Affordable Housing and Historic Preservation, which is attached as Appendix A and incorporated herein, shall be taken into consideration by all parties when carrying out the stipulations of this Programmatic Agreement; and WHEREAS, citations made to Section 106 within this agreement relate to the version of 36 C.F.R. Part 800 that became effective on August 5, 2004. m — Emergency repairs to single-family housing for very low-income and/or elderly households • Handyman Program—Minor repairs and maintenance of single-family homes • Demolition Program — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) ram — Demolition of vacant, single-family homes in target areas (Note: this program requires an Environmental Assessment) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible NOW, THEREFORE, the City and SHPO agree that the City's HUD-funded programs shall be administered in accordance with the stipulations provided below to satisfy the City's Section 106 responsibilities for all individual Undertakings. STIPULATIONS The City shall ensure that the following measures are carried out: I. Qualifications of Personnel A. The City shall ensure that all activities and reviews carried out pursuant to this agreement are implemented by or under the supervision of a person(s) qualified in accordance with The Secretary of the Interior's Professional Qualifications Standards (hereinafter "Professional Qualifications") (48 FR 44716), attached as Appendix C. The City shall assign a staff person (hereinafter "Head Preservation Administrator" or "HPA"), or retain a consultant, that possesses the Professional Qualifications necessary to monitor the administration of this agreement. When archaeological review and monitoring is necessary, the services of a person(s) meeting the Professional Qualifications for,the. discipline of archaeology shall be retained. B. The City shall notify the SHPO of the personnel responsible for complying with this agreement and shall notify the SHPO when there is a change in personnel. The City shall submit a report to the SHPO verifying the qualifications of the HPA when the PA is renewed, and when a new HPA, either assigned staff person or consultant, is assigned. C. If the City does not employ or contract with a qualified HPA, the City shall consult with the SHPO to develop alternate administrative procedures. II. Section 106 Review Process The City shall follow the process outlined in Appendix B: Section 106 Review Process for projects covered by this PA unless circumstances dictate an alternate review process is necessary. III. Activities Exempt from Further Review All Undertakings not identified under Stipulation II, "Activities Exempt from Further Review," must be reviewed in accordance with 36 C.F.R. Part §§ 800.3 through 800.7. A. General Exemptions The following undertakings have no potential or limited potential to affect historic properties and do not require further review or consultation with the SHPO or ACHP. Further compliance with the ACHP's regulation (36 C.F.R. Part 800) is not required. 1. Repair or rehabilitation, but not demolition or new construction, that involves buildings, structures, or facilities less than fifty (50) years old at the time of the proposed undertaking, provided that: a) The property has not been listed in the National Register of Historic Places (NRHP) at the time of the proposed undertaking, and 2of16 ) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible b) The property has not been determined to be eligible for listing in the NRHP as • identified in the records of the SHPO at the time of the proposed undertaking. 2. Refinancing, without demolition, repair, rehabilitation or construction. 3. Leasing, without demolition, repair, rehabilitation or construction. 4. Acquisition or land-banking of vacant real property (i.e., property without buildings or structures) for which there is no reasonably foreseeable plan for redevelopment, reuse, or new construction and without any reasonably foreseeable plan for ground disturbing activity. Properties acquired under this exemption require review pursuant to 36 CFR Parts 800.3 through 800.6, as appropriate, upon identification of a plan for redevelopment, reuse, new construction, or ground disturbance. IV. Exempt Activities The following undertakings have no potential or limited potential to affect historic properties and do not require further review or consultation with the SHPO or ACHP, provided the undertakings comply with The Secretary of the Interior's Standards for the Treatment of Historic Properties. For purposes of this agreement, the terms "in-kind repair" and "in-kind replacement" are defined as installation of a new element that matches the original material in terms of composition, appearance, dimension, detailing, and durability. In addition, and to the extent practicable, original materials will be preserved and reused for in-kind replacement/repair. Exempt activities apply to projects not otherwise made exempt under Section II A, "General Exemptions." A. Acquisition and Design 1. Purchase and acquisition of real property. 2. Architectural and engineering fees. B. Site Work. 1. Removal and installation of non-historic retaining walls driveways, curbs and gutters, and parking areas; and for in-kind repair using like materials, techniques, and design of historic retaining walls driveways, curbs and gutters, and parking areas. 2. Installation or repair of concrete or asphalt sidewalks and alleys. 3. Installation or repair of brick or stone sidewalks and alleys with like materials. 4. Maintenance, repair or in-kind replacement of masonry steps not attached•to any building. • 5. Installation of landscaping when no grading is required and when excavation of holes for individual plantings is no more than thirty (30) inches deep. 6. Installation or repair of utilities such as water, gas, sewer, and electrical lines. 7. Installation of temporary, reversible barriers such as fencing and. construction of pedestrian tunnels. C. Exterior Rehabilitation. 3of16 dertaking, and 2of16 ) Work" unless such 4 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 1. Securing and "mothballing" of structures, using methods defined in the National Park Service's Preservation Brief 31, Mothballing Historic Structures. 2. Installation of scaffolding. 3. Temporary stabilization that causes no permanent damage to the building or site, including installation of temporary bracing, shoring, and tarps. 4. Exterior maintenance and repair made with in-kind materials that do not affect the external appearance and building fabric, including, but not limited to the following: a) Repointing of mortar joints with mortar similar in composition, joint profile, color, and texture. The mortar used in the tuckpointing shall be no harder than the existing mortar and bricks. b) Repair and in-kind replacement of foundations, floor joists, and ceiling joists. c) Removal of exterior paint by non-destructive means, limited to hand scraping, low-pressure water wash of less than 400 psi, heat plates or hot air guns, chemical paint removal. d) Application of exterior paint, other than on previously unpainted masonry. e) All lead paint abatement that does not involve removal or alteration of exterior features and/or windows. f) Repair or partial in-kind replacement of wood siding and trim.. g) Repair or in-kind replacement of existing porch elements such as columns, flooring, floor joists, ceilings, railing, balusters and balustrades, and lattice. h) Maintenance, repair, and in-kind replacement of roof cladding and sheeting, gutters, soffits, and downspouts with no change in roof pitch or configuration. i) Window repair, including caulking and weather stripping of existing window frames, installation of new clear glass in existing sashes, and replacement of glazing. j) Maintenance, repair, or in-kind replacement of handicapped accessible improvements such as wheelchair ramps, but not including exterior elevators. 5. Installation of storm windows provided the windows are anodized or painted to match the trim and with horizontal and vertical divisions that align with the existing window divisions. 6. Placement and installation of exterior heating, ventilating or air conditioning (HVAC) mechanical units and vents, provided any exterior HVAC mechanical units at the front of the building are screened from public view. 7. Installation, replacement, or repair of basement bulkhead doors. D. Interior rehabilitation. 1. All plumbing work, including installation of water heaters. In no case shall ceilings be dropped to accommodate such work • 2. All electrical work not involving demolition of walls, ceilings, and/or floors. 4 of 16 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 3. All HVAC systems and their components. In no case shall ceilings be dropped to accommodate such work. 4. Installation of insulation in attics and crawl spaces. In no case shall ceilings be dropped to accommodate such work. 5. Repair and in-kind replacement of plaster walls and ceilings. 6. Installation of drywall where original plaster wall surfaces are missing and where the installation of drywall will not appreciably change the trim profile. 7. Repair and refinishing of interior floors. 8. All painting and carpeting,•provided that carpet installation damages no underlying wood or masonry floor surfaces. 9. All kitchen and bathroom remodeling provided the location of walls, windows, or doors are not altered. 10. All lead paint abatement that does not involve removal or alteration of interior features. 11. All asbestos abatement that does not involve removal or alteration of interior features. E. Demolition. 1. Securing and "mothballing" of structures, using methods defined in the National Park Service's Preservation Brief 31,Mothballing Historic Structures. 2. Installation of temporary fencing and barriers for the purpose of site control or security. 3. Demolition of structures or building additions less than fifty years old, following review of City records, other than those eligible for listing in the National Register of Historic Places as defined by National Register Bulletin 22, Guidelines for Evaluating and Nominating Properties that Have Achieved Significance Within the Past Fifty Years. 4. Demolition of buildings, structures or facilities where a designated City official has determined that the structural integrity has been lost and there is an imminent threat to public health and safety; provided: a) That the property has been evaluated for inclusion in the National Register of Historic Places at the time of the proposed undertaking, and b) That the historical significance of the site has been, evaluated for archaeological or other capacity to yield information that may contribute to the understanding of Omaha history, and c) In all such circumstances, photo-documentation shall take place prior to demolition and photography shall follow guidelines established in The Secretary of the Interior's Documentation Standards, when and where safely feasible. 5. Demolition of structures determined by the Nebraska SHPO within the past four years to be ineligible for listing in the National Register of Historic Places, either individually or as part of a district, unless changes in condition or status of the 5 of 16 loors. 4 of 16 .• oi 11 material has been brought to the site by the Contractor. 1110 ""1. 1.... The Contractor shall maintain sole responsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible property necessitate review. The four-year time period shall be applied from the date of request for demolition. 6. Demolition of noncontributing accessory structures and those ineligible for listing on the National Register of Historic Places with a building footprint of less than 300 square feet, including, but not limited to, garages, sheds, and carports. 7. Removal and disposal of collapsed building debris and rubble not attached to any structure, except where the building debris is determined to be a contributing element of a site, or district, or archaeological site. 8. Removal of metal awnings, except where the awnings have been deemed to be a contributing element of the structure. 9. Removal of dead trees and brush. 10. Cleanup and removal of trash, refuse, and abandoned vehicles. 11. Grading and seeding sites where demolition has already taken place. V. Technical Assistance. Nothing in this agreement shall be construed as meaning that the City cannot request advice, counsel, or assistance of the SHPO at any time. VI. Monitoring. The SHPO may monitor activities carried out pursuant to this PA. The City shall cooperate with the SHPO in carrying out their monitoring and review responsibilities. A. The City shall retain and make available to the SHPO public records documenting the date of construction of buildings, structures and facilities less than fifty years old that were demolished under programs covered by this PA. B. The City shall submit a copy of the yearly Omaha-Council Bluffs Consortium Consolidated Submission for Community Development Programs: Action Plan within 15 days after release. C. The City shall provide an annual reporrto the SHPO which lists properties that were reviewed for programs covered by this PA. VII. Public Participation. Public participation shall occur in accordance with Implementation Principle II of Appendix A:ACHP's Policy Statement on Affordable Housing and according to the process outlined in Appendix B: Section 106 Review Process. A. Consultation with Interested Parties. 1. The City shall identify and invite interested parties (IP) to comment in accordance with the process outlined Appendix B. IP are defined in Part II of Appendix B. VIII. Dispute Resolution. A. At any time during implementation of the measures stipulated in this agreement, should an objection to any measure or manner of implementation be raised by a member of the public, the City shall take the objection into account and consult with the objecting party and the SHPO to resolve the objection. B. If the City determines that such objection cannot be resolved, the City shall: 1. Forward all documentation relevant to the dispute, including the City's proposed resolution and SHPO comments, to the ACHP. The ACHP shall provide the City 6of16 onsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • comment on resolving the objection within fifteen (15) days of receiving adequate documentation. If the ACHP does not provide comment within this period, the City may make a final decision on the dispute and proceed accordingly. 2. Prior to making a final decision on the dispute, the City shall prepare a written response to the ACHP and SHPO that takes into account any timely advice or comments regarding the dispute,from the ACHP and SHPO and/or other known interested parties, and provide them with a copy of this written response. The City will then proceed according to its final decision. C. The responsibilities of the signatories to carry out all other actions subject to the terms of this Agreement that are not the subject of the dispute remain unchanged. IX. Effective Dates. This PA will continue in full force and effect until April 1, 2013. At any time during the six-months prior to this date, the City may request in writing that the ACHP and SHPO review the City's program and consider an extension or modification of this PA. No extension or modification will be effective unless all parties to the PA have agreed to such extension in writing. • X. Amendments. Any party to this PA may request that it be amended, whereupon the parties will consult in accordance with 36 CFR § 800.14 to consider such amendment. Twelve months after the execution of this agreement, the consulting parties shall review the process and procedures of this agreement; and if agreed to, make recommendations for amendments to this agreement in writing. XI. Termination. Any party to this Programmatic Agreement may terminate it by providing thirty (30) days notice to the other party, provided that the parties will consult during the period prior to termination to seek agreement on amendments or other actions that would avoid.termination. In the event of termination, the City will comply with 36 CFR §§ 800.3 through 800.6 with regard to individual undertakings covered by this PA. Execution and implementation of this PA provides evidence that the City has afforded ACHP a reasonable opportunity to comment on the program and that the City has taken into account the effects of the program on historic properties. SIGNED: • City of maha, State of Nebraska By: ( — Date: y/ 1 N/o/ ames R. Thele, Assistant Director—Planning Department Nebraska State His 'c Preservation Officer Bv:..r'' � ;, <� Date: •-37WVJ R. Robert Puschendorf, Deputy State Historic Preservation Officer .17 7of16 ction. B. If the City determines that such objection cannot be resolved, the City shall: 1. Forward all documentation relevant to the dispute, including the City's proposed resolution and SHPO comments, to the ACHP. The ACHP shall provide the City 6of16 onsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible APPENDIX A ACHP'S POLICY STATEMENT ON AFFORDABLE HOUSING and HISTORIC PRESERAVATION (Adopted June 26, 1995) The National Historic Preservation Act of 1966 (NHPA) mandates preservation of the historical and cultural foundations of the Nation as a living part of community life and development in order to provide the American people with a sense of orientation. It further states that increased knowledge about historic resources, establishment of a better means to identify and administer them, and encouragement of their preservation will not only improve planning and execution of Federal and federally assisted projects and but also assist economic growth and development. Toward that end, NHPA directs the Federal Government to foster conditions under which modern society and prehistoric and historic resources can exist in productive harmony and "fulfill the social, economic, and other requirements of present and future generations." Federal agencies that assist in the construction and rehabilitation of housing, most notably the Department of Housing and Urban Development (HUD) and the Department of Agriculture, are tasked with meeting Americans basic needs for safe, decent and affordable housing. Historic properties have played a vital role in fulfilling this objective; this must continue. It is, however, important that Federal and State agencies, local governments, housing providers, and the preservation community in general actively seek ways to reconcile national historic preservation goals with the special economic and social needs associated with affordable housing, given that this is now one of the Nation's most pressing challenges. In issuing this policy statement, ACHP seeks to promote a new, flexible approach toward affordable housing and historic preservation, which is embodied in the following Implementation Principles. State Historic Preservation Officers (SHPOs), Federal and State agencies, and local governments involved in the administration of the Section 106 review process for affordable housing projects funded or assisted by Federal agencies are encouraged to use these principles as a framework for Section 106 consultation and local historic preservation planning. ACHP also encourages HUD, in consultation with the national preservation community, including the National Conference of State Historic Preservation Officers, the National Park Service, and the National Trust for Historic Preservation, to develop comprehensive historic preservation training programs for HUD staff, State, county, and local officials, and housing providers who implement affordable housing projects. Such training should advance the Implementation Principles and the initiatives outlined in the Secretary of HUD's May 5, 1995,. Historic Preservation Directive, focusing on: 8of16 tion and SHPO comments, to the ACHP. The ACHP shall provide the City 6of16 onsibility for workers' health and '_ ii" safety including, but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • 1) improving coordination of Section 106 reviews; 2) evaluating the National Register eligibility of historic properties; 3) applying the Secretary's Standards; 4) providing technical assistance for routine maintenance and repairs to historic buildings; 5) developing financial packages for affordable housing projects; and 6) integrating historic preservation into Consolidated Plan Documents and local comprehensive plans. Implementation Principles I. Section 106 reviews for affordable housing projects should place principal emphasis on broad-based consensus reflecting the interests, desires, and values of affected communities, neighborhoods, and residents. Consensus-building should be facilitated through training, education, and consultation focused on historic preservation values, collaborative planning, and dispute resolution. II. Identification of historic properties and evaluation of their eligibility for the National Register for Historic Places should include discussions with the local community and neighborhood residents to ensure that their views concerning architectural and historic significance and traditional and cultural values receive full consideration by the Federal agency, State, county, or local government, and the SHPO. III. When assessing the effects of affordable housing projects on historic properties, consultation should focus not just on individual buildings which may contribute to a historic district but on the overall historic preservation potentials of the broader community, neighborhood, or "target area." This practice will ensure proper consideration is given to the cumulative impacts of projects within a designated area. Historic preservation issues should be related to social and economic development, housing, safety, and programmatic issues integral to community viability. IV. Plans and specifications for rehabilitation, new construction, and abatement of hazardous conditions associated with affordable housing projects should adhere to the recommended approaches in The Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, when feasible. When economic or design constraints preclude application of the Standards, consulting parties may develop alternative design guidelines tailored to the district or neighborhood to preserve historic materials and spaces to the maximum extent feasible. Alternative guidelines shall be incorporated into executed Memoranda of Agreement or Programmatic Agreements. V. Proposals for non-emergency demolitions of historic properties should include adequate background documentation to demonstrate to the SHPO and/or ACHP that rehabilitation is not economically or structurally feasible, or that retention of such properties would jeopardize the implementation of an affordable housing project. 9of ]6 but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible VI. The Section 106 review process for affordable housing rehabilitation projects and abatement of hazardous conditions should emphasizethat treatment contr of exteriors t terith rsp and be limited to significant interior features and spaces eligibility for the National Register, unless otherwise agreed to by all consulting parties. VII. Where appropriate, Section 106 reviews for affordable housing projects should be conducted in conjunction with the Historic Rehabilitation Tax Credits and other State and local administrative reviews. to ensure consistency of reviews and to minimize delays. When Section 106 reviews for affordable housing projects precede other related reviews, applicants who are seeking Historic Tax Credits are encouraged to seek the advice of the SHPO and to obtain early review by the National Park Service to assure final eligibility for the Historic Rehabilitation Tax Credit. VIII. Archeological investigations should not be required for affordable housing projects which are limited to rehabilitation and require minimal ground disturbance activities. IX. State, county, and local governments are encouraged to develop Programmatic Agreements that promote creative solutions to implement affordable housing projects and to streamline Section 106 reviews through the exemption of categories of routine activities; the adoption of "treatment and design protocols" for rehabilitation and infill new construction; and the delegation of Section 106 reviews to qualified preservation professionals employed by the local community. X. Certified local governments and/or communities that employ qualified preservation professionals, as set forth in The Secretary of the Interior's Professional Qualification Standards should be allowed to conduct Section 106 reviews on behalf of ACHP and/or the SHPO for affordable housing projects when the local government and/or community has executed a Programmatic Agreement with ACHP and the SHPO. • 10of16 The Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, when feasible. When economic or design constraints preclude application of the Standards, consulting parties may develop alternative design guidelines tailored to the district or neighborhood to preserve historic materials and spaces to the maximum extent feasible. Alternative guidelines shall be incorporated into executed Memoranda of Agreement or Programmatic Agreements. V. Proposals for non-emergency demolitions of historic properties should include adequate background documentation to demonstrate to the SHPO and/or ACHP that rehabilitation is not economically or structurally feasible, or that retention of such properties would jeopardize the implementation of an affordable housing project. 9of ]6 but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible APPENDIX B SECTION 106 REVIEW PROCESS The following is an outline of the Section 106 Review process for projects covered under this Programmatic Agreement (PA). This document also presents the public participation process to be used for all programs covered under the PA unless a party to this agreement determines that a specific project requires an alternative public participation process. Part I - Section 106 Review Process 1) A request for environmental review is submitted to the responsible City Planner or designee. a) Designees may be appointed for projects requiring a Tier II. (or project specific) environmental review. Typically the designee will be a project manager with the City of Omaha (City). 2) A Section 106 Review form must be filled out for each property containing a structure that lies within the project area unless it is being considered for an archeological review. If a Section 106 Review has previously been conducted, a subsequent review is not required unless a new scope of work at the project site has been developed. This does not apply to new scopes of work developed in conj unction with the City of Omaha Historical Preservation Administrator (HPA) and/or the SHPO. A blank copy of the Section 106 Review form is attached. a) Projects involving the development of open space may require an archeological review of the affected properties. A Section 106 Review form is not needed for these areas. i) The City shall inform the SHPO of projects involving open space and provide a general description of the scope of work and a map of the project location. ii) The SHPO will make a recommendation to the City about conducting an archeological review at the property. iii) The City will act on the SHPO's recommendation. 3) The Section 106 Review form includes the following information: a) Property Owner b) Property Address c) Turn-Around Date d) Description of Proposed Undertaking 4) The City Planner, or designee, forwards the request for a Section 106 Review to the City of Omaha's HPA. 5) The HPA reviews the project and makes one of the following determinations: a) Not a Historic Structure. i) If the HPA determines the property is not historic then further consultation with the HPA, the Nebraska State Historic Preservation Office (SHPO), or Interested Parties (IP), as defined in Part JI, below, is not required. b) Historic Structure 11 ofl6 tive guidelines shall be incorporated into executed Memoranda of Agreement or Programmatic Agreements. V. Proposals for non-emergency demolitions of historic properties should include adequate background documentation to demonstrate to the SHPO and/or ACHP that rehabilitation is not economically or structurally feasible, or that retention of such properties would jeopardize the implementation of an affordable housing project. 9of ]6 but not necessarily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible i) If the HPA determines the property is historic, then the HPA must evaluate if the project activities meet the requirements for exemptions listed under Section III of the PA. (1) If all project activities meet the definition of an exempt activity listed under Section III of the PA, then modification to the project's scope of work is not required. (2) If any of the project activities do not meet the definition of an exempt activity listed under Section III of the PA,then modification to the project's scope of work is required. ii) Modification to the project's scope of work will be conducted by the project manager and/or program manger after consultation with the HPA. Consultation shall provide direction to the project manager and/or program manager regarding steps which must be taken to preserve the historical significance of the property. (1) The H PA, project manager,er, or program manager must document the results of the g consultation by preparing a modified scope of work. iii) The Section 106 Review form and the modified scope of work will be submitted to the SHPO and IP. As previously stated, IP are defined in Part II, presented below. The modified scope of work will be included in a letter and will be accompanied by the City's Section 106 documentation. (1) The SHPO will provide comment to the City within 30 days of the receipt of the documents. Work at the project site will not proceed until the SHPO has provided comment, or until the 30-day response period has expired. It will be assumed that the SHPO concurs with modified scope of work if they do not respond by the end of the 30-day response period. (a) If the SHPO concurs with the determination of the HPA, then no further modifications to the scope of work are required. The SHPO will provide a letter stating their concurrence to the City. (b) If the SHPO does not concur with the determination of the HPA, then the SHPO, HPA, and project manager and/or program manager must resolve the dispute. Once the dispute has been resolved, another modified scope of work must be prepared by the City and a letter of concurrence must be provided from the SHPO. (c) If the dispute cannot be resolved, the City will consult with the Advisory Council on 'Historic Preservation (ACHP). This process is described in Section VI of the PA. (2) IP are not required to provide comment to the City and the City will not wait for comment from IP before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • Part II - Interested Parties IP are agencies and/or organizations which have an interest in the preservation of historic sites and/or potentially historic sites within Douglas County, Nebraska. IP will be notified of the City's scope of work for historic or potentially historic properties during the public participation process described in Part I. IP will be sent electronic copies of the Section 106 Review form and modified scope of work, if required, sent from the City to the SHPO. The electronic documents will be in .pdf format. The SHPO will also send an electronic copy of their response to IP. The following organizations have been identified as IP, and have indicated the following email addresses as their preferred means of contact: • 2020 Omaha, email: (2020omaha@cox.net) • Landmarks, Inc., email: (board a,omahalandmarks.org) • Omaha Landmarks Commission, will be processed by the City of Omaha Head Preservation Administrator This list can be amended by the agreement of the SHPO and the City. IP are responsible for notifying both the City and the SHPO of any changes to their preferred means of contact. Additional IP may be added to this list by the agreement of the SHPO and the City. • 13 of 16 ed in a letter and will be accompanied by the City's Section 106 documentation. (1) The SHPO will provide comment to the City within 30 days of the receipt of the documents. Work at the project site will not proceed until the SHPO has provided comment, or until the 30-day response period has expired. It will be assumed that the SHPO concurs with modified scope of work if they do not respond by the end of the 30-day response period. (a) If the SHPO concurs with the determination of the HPA, then no further modifications to the scope of work are required. The SHPO will provide a letter stating their concurrence to the City. (b) If the SHPO does not concur with the determination of the HPA, then the SHPO, HPA, and project manager and/or program manager must resolve the dispute. Once the dispute has been resolved, another modified scope of work must be prepared by the City and a letter of concurrence must be provided from the SHPO. (c) If the dispute cannot be resolved, the City will consult with the Advisory Council on 'Historic Preservation (ACHP). This process is described in Section VI of the PA. (2) IP are not required to provide comment to the City and the City will not wait for comment from IP before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible SECTION 106 REVIEW PROPERTY OWNER: PROPERTY ADDRESS: TURN-AROUND DATE: DESCRIPTION OF PROPOSED UNDERTAKING: To be completed by the Head Preservation Administrator: Not a Historic Structure — Historic Structure James Krance Date Dead Preservation Administrator 14of16 s (402) 444-4248 and my email address is william.lulcash cr,ci.onzaha.ne.us. Thank you, • William H. Lukash,PG City Planner Enclosures ct cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 Appendix C Professional Qualification Standards In the September 29, 1983, issue of the Federal Register (48 FR 44716), the National Park Service published the following Professional Qualification Standards as part of the larger Secretary of the Interior's Standards and Guidelines for Archeology and Historic Preservation. These Professional Qualification Standards are in effect currently. Since 1983, the National Park Service has not issued any revisions for effect, although the National Park Service is in the process of drafting such revisions. The following requirements are those used by the National Park Service, and have been previously published in the Code of Federal Regulations, 36 CFR Part 61. The qualifications define minimum education and experience required to perform identification, evaluation, registration, and treatment activities. In some cases, additional areas or levels of expertise may be needed, depending on the complexity of the task and the nature of the historic properties involved. In the following definitions, a year of full-time professional experience need not consist of a continuous year of full-time work but may be made up of discontinuous periods of full-time or part-time work adding up to the equivalent of a year of full-time experience. History • The minimum professional qualifications in history are a graduate degree in history or closely related field; or a bachelor's degree in history or closely related field plus one of the following: 1. At least two years of full-time experience in research, writing, teaching, interpretation, or other demonstrable professional activity with an academic institution, historical organization or agency, museum, or other professional institution; or 2. Substantial contribution through research and publication to the body of scholarly knowledge in the field of history. Archeology The minimum professional qualifications in archeology are a graduate degree in archeology, anthropology, or closely related field plus: 1. At least one year of full-time professional experience or equivalent specialized training in archeological research, administration or management; 2. At least four months of supervised field and analytic experience in general North American archeology; and 3. Demonstrated ability to carry research to completion. 15 of 16 n Section VI of the PA. (2) IP are not required to provide comment to the City and the City will not wait for comment from IP before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible In addition to these minimum qualifications, a professional in prehistoric archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the prehistoric period. A professional in historic archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the historic period. • Architectural History The minimum professional qualifications in architectural history are a graduate degree in architectural history, art history,historic preservation, or closely related field, with coursework in American architectural history; or a bachelor's degree in architectural history, art history, historic preservation or closely related field plus one of the following: 1. At least two years of full-time experience in research, writing, or teaching in American architectural history or restoration architecture with an academic institution, historical organization or agency, museum, or other professional institution; or 2. Substantial contribution through research and publication to the body of scholarly knowledge in the field of American architectural history. Architecture The minimum professional qualifications in architecture are a professional degree in architecture plus at least two years of full-time experience in architecture; or a State license to practice architecture. Historic Architecture The minimum professional qualifications in historic architecture are a professional degree in architecture or a State license to practice architecture,plus one of the following: 1. At least one year of graduate study in architectural preservation, American architectural history, preservation planning, or closely related field; or 2. At least one year of full-time professional experience on historic preservation projects. Such graduate study or experience shall include detailed investigations of historic structures, preparation of historic structures research reports, and preparation of plans and specifications for preservation projects. 16of16 training in archeological research, administration or management; 2. At least four months of supervised field and analytic experience in general North American archeology; and 3. Demonstrated ability to carry research to completion. 15 of 16 n Section VI of the PA. (2) IP are not required to provide comment to the City and the City will not wait for comment from IP before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • SECTION 106 REVIEW PROPERTY OWNER: PROPERTY ADDRESS: TURN-AROUND DATE: CONSTRUCTION SPECIALIST: DESCRIPTION OF PROPOSED UNDERTAKING: • TO BE COMPLETED BY HEAD PRESERVATION ADMINISTRATOR: I Not a Historic Structure Historic Structure • • Tames Krance. Date Head Preservation Administrator u, • William H. Lukash,PG City Planner Enclosures ct cost is reasonable. gager Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 • CERTIFICATION OF CONTINUED ENVIRONMENTAL COMPLIANCE Nebraska Department of Economic Development CDBG, HOME, & NAHTF Projects jrantee Name: City of Omaha Grant Number: 0910S23 Driginal Level of Finding: CEST Subject to -No Significant Impact Date of Determination: July 31, 2009 Date Notice of Intent (NOI-RROF) Published: N/A Date Request for Release Funds Submitted to DED: September 9, 2009 Date of Environmental Clearance: October 6, 2009 Description of Project: The Single-family Home CROWN Rent-to Own Program will be used to acquire six foreclosed 3 to 4 bedroom single-family homes east of 72nd Street in Category A zip codes. The homes will be rehabilitated and then used as CROWN Rent-to-Own Homes, and be made available to home buyers at or below 50 percent of the MFI. The Urban Homestead Rehab and Resale Program acquire or below 50 per foreclosed cent osingle-family f the MFI by theCity of rehabilitate them. The homes will then be sold to familes at Omaha. Both programs fell under the 2009 City-wide Rehabilitation environmental review in 2009. They now fall under the 2010 version. In accordance with the provisions of 24 C.F.R. Part 58.47, it is the finding of the Certifying Officer of the above referenced grantee that [check one of the following]: 1. FIThe scope, scale, nature, magnitude and location of the project are substantially unchanged from that as originally reviewed and approved; further, no new circumstances or environmental conditions which may affect the project or have a bearing on its impact, such as concealed or unexpected conditions, have been discovered: and the selection of an alternative not in the original finding is not proposed. Re-evaluation of the project under §58.47 is therefore not required. The same conditions that previously applied to the project remain unchanged and are summarized on the next page. OR 2. I iThe scope. scale. nature, magnitude and/or location of the project have substantially changed from that as originally reviewed and approved: or, new circumstances or environmental conditions which may affect the project or have a bearing on its impact, such as concealed or unexpected conditions. have been discovered; or, the selection of an alternative not in the original finding is now proposed. Re-evaluation of the project under §58.47 is required;a the findings in the ERR have been updated per §58.47(b) and are described on the next p g e. Page 1 July 2009 P before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible 1 certify that the above statements accurately reflect the revisions to the project scope of work and that such revisions do not alter the basis under which the project received its original environmental status determination. Si J ature of RE Certify Officer. Address: 1819 Farnam Street. Suite 1 1 1 1 • Title: Assistant Director - Planning Department Omaha, Nebraska Date: February 22, 2010 68183 • • • • • • • Page 2 July 2009 Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 ATTACHMENT/ UNITED STATES CITIZENSHIP ATTESTATION FORM FOR PUBLIC BENEFIT For the purposes of complying with Neb. Rev. Stat. §§ 4-108 through 4-114, I attest as follows: I/ I am a citizen of the United States. OR ❑ I am a qualified alien under the Federal Immigration and Nationality Act. My immigration status and alien number as follows: , and I agree to provide a copy of my USCIS (United States Citizenship and Immigration Services) documentation upon request. I hereby attest that my response and the information provided on this form and any related application for public benefits are true, complete and accurate and I understand that this information may be used to verify my lawful presence in the United States. PRINT NAME: ✓o 7s ' ' - ? /Vd By: SIGNATURE: �_ DATE: //-7/rd Created and approved I0/26/2009 1 ld to familes at Omaha. Both programs fell under the 2009 City-wide Rehabilitation environmental review in 2009. They now fall under the 2010 version. In accordance with the provisions of 24 C.F.R. Part 58.47, it is the finding of the Certifying Officer of the above referenced grantee that [check one of the following]: 1. FIThe scope, scale, nature, magnitude and location of the project are substantially unchanged from that as originally reviewed and approved; further, no new circumstances or environmental conditions which may affect the project or have a bearing on its impact, such as concealed or unexpected conditions, have been discovered: and the selection of an alternative not in the original finding is not proposed. Re-evaluation of the project under §58.47 is therefore not required. The same conditions that previously applied to the project remain unchanged and are summarized on the next page. OR 2. I iThe scope. scale. nature, magnitude and/or location of the project have substantially changed from that as originally reviewed and approved: or, new circumstances or environmental conditions which may affect the project or have a bearing on its impact, such as concealed or unexpected conditions. have been discovered; or, the selection of an alternative not in the original finding is now proposed. Re-evaluation of the project under §58.47 is required;a the findings in the ERR have been updated per §58.47(b) and are described on the next p g e. Page 1 July 2009 P before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS, that the CITY OF OMAHA, a Municipal Corporation in the State of Nebraska, hereinafter referred to as CITY, in consideration of One Dollar ($1.00) and other valuable consideration, in hand paid, does hereby grant, bargain, sell, convey and confirm unto Bethesda Homes, LLC, a Nebraska Corporation, hereinafter referred to as Grantee, the following described real estate as defined in Neb. Rev. Stat. 76-201), situated in the County of Douglas and State of Nebraska to-wit: Lot 29, Conestoga Place, an Addition to the City of Omaha,Nebraska together with all the tenements, hereditaments, and appurtenances to the same belonging, and all the estate, title, claim or demand whatsoever of the CITY of, in, or any part thereof. TO HAVE AND TO HOLD the above described premises, with the appurtenances, unto the Grantee and to its successors and assigns forever, and the CITY for itself and its successors and assigns, do. covenant with said Grantee and its successors and assigns that the CITY..is lawfully seized of said premises, that they are free from encumbrance except those of record,that the CITY has good right and lawful authority to sell the same,and that the CITY will and its successors and assigns shall warrant and defend the same unto the said Grantee and its successors and assigns forever, against the lawful claims of all persons whomsoever. . IN WITNESS WHEREOF, the CITY OF OMAHA, a Municipal Corporation, has caused _ these pre is to be executed by its Mayor and its Corporate Seal to be affixed hereto this_ day of , 2010. . THE CITY OF OMAHA, (Corporate Seal) A Municipal Corporation • By: _. ATTEST: APPROVED AS TO FORM: n / 4 '") CI CLE ASSISTANT ITY AT 0 EY oject remain unchanged and are summarized on the next page. OR 2. I iThe scope. scale. nature, magnitude and/or location of the project have substantially changed from that as originally reviewed and approved: or, new circumstances or environmental conditions which may affect the project or have a bearing on its impact, such as concealed or unexpected conditions. have been discovered; or, the selection of an alternative not in the original finding is now proposed. Re-evaluation of the project under §58.47 is required;a the findings in the ERR have been updated per §58.47(b) and are described on the next p g e. Page 1 July 2009 P before beginning work on the project if the SHPO has already concurred with the scope of work. Comments by IP about the scope of work for a project should be directed to the City of Omaha's HPA. 6) A copy of the signed Section 106 Review form, and modified scope of work, if required, will be returned to the City Planner, or designee, and included as supporting documentation for the environmental review. 12 of 16 arily limited to. interpreting monitoring or IP �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible t ; -0F1'11/ ) 1 .11.1 tAt % • /-t • rf' , A 4t t 4. ;i •:` i• `;.;! ,„ • . . ) - I • t I 0-'71 if"! , . 7e ";" .J: ',4"0 j' •jr{!;1, ,!;• nr.fif.6; - L J4.511 `J-J.1,14„ '10.5 trIV • * ) •'.50)1 -' 1 /Mr July 2009 Construction Specialist: 1,(0 / �� Date: 2/46// 0 Development Section Mgr.: 41?...d ` r—mate: /I&/io MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 7 Reviewed and approved/0/26, 2009 ,Ne 68110 402-341-2231 Fax 402-341-0168 1 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, under Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA), Federal Public Law 110-289, approved July 20, 2008,the federal government appropriated funds for emergency assistance for the redevelopment of abandoned and foreclosed upon properties for the purpose of providing affordable housing opportunities for low-, moderate-, and middle-income households; and, WHEREAS, the State of Nebraska has received HERA funds from the U.S. Department of Housing and Urban Development (HUD) to be distributed as grants to eligible grantees to undertake • and carryout eligible projects under Title III of the HERA, commonly referred to as the Neighborhood Stabilization Program(NSP); and, WHEREAS, the City of Omaha applied for and received NSP funds under Contract No. 0910S23, CFDA #14.228, to provide $1,080,000.00 to the City and to Bethesda Homes, LLC, a Nebraska Limited Liability Company; (hereinafter referred to as the "LLC"); Managing Member: Bethesda Urban Community Development Corporation, a Nebraska Non-profit Religious Corporation and, WHEREAS, the City will use NSP funds to acquire seven (7) abandoned and foreclosed upon properties located between Harrison Street, I-680, 72nd Street and the Missouri River. The City will convey the properties and provide financing in the amount of $1,080,000.00 to the LLC for the rehabilitation work. After the rehabilitation work is completed, the LLC will lease the properties through a Lease-Purchase Program to eligible low- moderate-, and middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development. The Affordability Period for this Project shall be fifteen (15) years beginning with the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period. The properties shall be and remain as rental properties through March 31, 2013. Beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City,LADED and the LLC (hereinafter referred to as the "Project"); and, WHEREAS, the Mayor recommended various projects in the 2009 Consolidated Submission for Community Planning and Development Programs ("Consolidated Plan"), and, WHEREAS, the City Council approved the 2009 Consolidated Plan on October 8, 2008, by Resolution No. 1492, as amended, and $1,080,000.00 in NSP funds was allocated to the City for this acquisition of abandoned and foreclosed upon properties, rehabilitations and the subsequent sale of the houses through a Lease-Purchase Program; and, By Councilmember Adopted City Clerk Approved Mayor �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible • 1 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska Page 2 • WHEREAS, the total rehabilitation cost is estimated to be $1,080,000.00 in NSP funds; and, - WHEREAS, this Project meets the NSP Program national objective for providing affordable housing to qualified low- moderate-, and middle-income (LMMI) households; therefore, the Project is consistent with the Consolidated Plan and is eligible for funding; and, WHEREAS, it is in the best interest of the City of Omaha and the residents thereof to enter into an Agreement with the LLC for the development of this worthwhile Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: • THAT, as recommended by the Mayor, the attached Loan Agreement between the City of Omaha and Bethesda Homes, LLC, a Nebraska Limited Liability Company (LLC); Managing Member: Bethesda Urban Community Development Corporation, Inc., a Nebraska Non-profit Religious Corporation, Joseph L. Shannon, Sr., President/CEO, 5116 Terrace Drive, Omaha, Nebraska, 68134 1) for the City to acquire seven (7) abandoned and foreclosed upon properties located between Harrison Street, I-680, 72nd Street and the Missouri River. with other NSP funds, 2) authorizing the City to provide financing in the amount of$1,080,000.00 to the LLC for the rehabilitation work; 3)after the rehabilitation work is completed, permitting the LLC to lease the properties through a Lease-Purchase Program to eligible low- moderate-, arid middle-income (LMMI) households whose gross annual household incomes are 50% and below the Median Income by Family Size (MFI) as established periodically by the U.S. Department of Housing and Urban Development; throughout the fifteen (15) year Affordability Period beginning with the occupancy of the property by the initial tenant while the property is rental property and continues with the homebuyer for the remainder of the Affordability Period; 4) establishing that the properties shall be and remain as rental properties through March 31, 2013; and 5) agreeing that beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC, is hereby approved. Funds in the amount of$1,080,000.00 shall be paid from the NSP Contract No. 0910S23, CFDA #14.228, Fund No. 12198, Organization No. 129164. APPROVE AS TO FCRM: C 3 •t1. to CITY ATTOI NEY DATE Plnlsf1376-res �j�,/, e By 1°447 _�- Counoi4rrmefrnber Adopted M R 30 2010 !-Q '''' it Clerk 4/80 Approved /esi. Mayor acquisition of abandoned and foreclosed upon properties, rehabilitations and the subsequent sale of the houses through a Lease-Purchase Program; and, By Councilmember Adopted City Clerk Approved Mayor �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible /, c�D ., oc 0. PO P CD w o rD w C G co 0 O xOCL O "n Z 'd w . oo n C wcD a p A) CD cD z o c) o CD o 0 co r o.i 0 o ° '0 • Z C CCC nOn p' ° .CD CD O h n p CD t-I- ' o � c�D oa. CDD o\o o � `' O` i vCD _ O CD r" V n H Q' i°-n 0 � � bNo o' er C �. 0 -• \ ... a �. i p -Y O UQ O (/) d O n ° 0.., N n � "' 0 Cr� ten°° 0 '-f CD ° � r � PO O v O O a N O p� cn (D 0-' 0P) 0 O P n PP i Ito a' a ' CDAN r G a a„, a, , c CD CD `' a. D7 CD . P P 0 0 0". A) 0" oW02' Y � P 'th0 awCD rr o .. NJcr 0 0_, . o '� D . v0o� oW pp - cD ^aoa O CD o CD Cr . poc .CIal-` o " � � �, OCD.o O co co W C G. (D A ,OpO ` a CD .c N N ' nCO 0 , np � — • Oer -> - o. � � caCD � + P, Po a� . w �• AC .y e co O CD D cn aQ ° "� r,po'0 co `G Cr 'd ONO p a.ril O P.0 0" CD " 't co f]. CD 0rD r+ O CD CD a �. CD 0• ' p' cp c' 0, Z O .j. p �"s' at d Z cn �. �' O co n p, ,_:-. .o O �d 5 co Sao o �. w nor CD > o o -5• 0, N0 � r � r'. c 2' � i 0Q � r n w w -4 cD M) emainder of the Affordability Period; 4) establishing that the properties shall be and remain as rental properties through March 31, 2013; and 5) agreeing that beginning April 1, 2013, the properties can be sold to eligible LMMI households under terms and conditions mutually agreed upon by the City, NDED and the LLC, is hereby approved. Funds in the amount of$1,080,000.00 shall be paid from the NSP Contract No. 0910S23, CFDA #14.228, Fund No. 12198, Organization No. 129164. APPROVE AS TO FCRM: C 3 •t1. to CITY ATTOI NEY DATE Plnlsf1376-res �j�,/, e By 1°447 _�- Counoi4rrmefrnber Adopted M R 30 2010 !-Q '''' it Clerk 4/80 Approved /esi. Mayor acquisition of abandoned and foreclosed upon properties, rehabilitations and the subsequent sale of the houses through a Lease-Purchase Program; and, By Councilmember Adopted City Clerk Approved Mayor �11 sampling results provided by the City or any another governmental agency, p[' 1110 or performing Contractors own monitonng or sampling to ensure worker - .,- i health and safety. r. `: 46 551.< , %,•7' ' N •- --dol., ;•.;. if. ;;E: : • .., wok; ,. ...-, \ ,.." ; ._.: \,\•!:.. \....-777.-:71‘.c`I.,7. S , . ,.• sr.°- -- \:',.•`1,9P . .', / A- . . 14- •milt .1 , ,i inhi rr;1=z-,Fr4-rzr ---- I igV1 Ecittruur A ill kr ' -: ;v - ,....,... . ., , • -1, /,-- - 1.. - ,,ori 77f7f7:::777 Fr' .___L/:/ __ _ !P.m.J___. _ .7,-7-_,,i_4•1!.:::_,-_ _ _:::-. : -,.- 7 „..• /.., 4gli '.g“ ...'t'''':-.:::'• )",- II .--- - - - ;T -t" ---: • •— -----' -.' . \ •.:, 1 Z' _, 7.4 F, -,2 t.. - ... ...sgm - ?-!•.= -,.. `,.;', ,ir• #."40. 1 i fl i 1 ,Il c 1 r ' ' • . '----' '3 . qp.--viiii ' h;:hi i i ',i; / -1 ' • ;Ig - I ) . .... - 1-.:-.,—; F.- :.. , ( . 1. , .f_ • 1 . :-/ - ,:, --..i' .,%., 1- --P•r, ., , ...e.. , . !i'llc,• ' • . .._', • . ,....- 2.:-.. .., _ ,..0 . •-:-.. 'd SI ','.v,Z..! :Z Ti.i 111111 '5•.7...._-',1,-''..r.z.=A,:'"r•':.• l j--.--; ('''‘t'l .-•:-•• • ,,._, tn •':••,-. ,.• '882. .aeig 1 ;I ;;; -„- .-e • 1 . ''.'..--'- - - '''0•06"3 7,, -- .1":„,•,-: _ ., . A'r Olitt ' 09 ------ 0P rlill 1 • • ' • . . iiiti22att2LtC212222t2242 ----- . 4-I--2-41,-"".14 8-°"• '1. . . > .. . . f -3 , s,:,...1 I , - --ic) ' e eiw,-.-rElf,FAR?wirmem4,zzauieiirTzvezzgtim:gzgeq-iciiF,u,Riaimi. i7?-_- i .r t. ag ita: ;N: tInigiptiWgzieed.laigtM-4t2VP V.I.q ndig!7:7; i: i. f.), gli 1 1 1 " trl ? r- _:,- Fi+ H g --!: t, 1 1;:.11 ' laiNir4PIE„150.iiE0, gaWgqi0 geiE-iiii-E;:inThrc':IVH"MiM S 7 i 1, :i --' a 7,0 e / '51 . ---= gi .: F; .1•.) ' c 3 • i -I \ ' the submission for renewal,but may Assistant Secretary for Community make the decision after 30 days. Development and Planning or the I.Abstract Therefore,to receive the best General Deputy Assistant Secretary for These information collections allow consideration of your comments,you Community Development and Planning the Department of the Interior to should submit them during the first 30- may,subject to statutory limitations, provide Tribally controlled colleges and day period. waive any provision of this Notice.Each universities with financial assistance Before including your address,phone waiver must be in writing and must under the Tribally Controlled College number,e-mail address or other 4 of the table of NSP-eligible uses - amendments is necessary to expedite percent of the jobs will be held by or and correlated eligible activities from the use of grant funds. made available to persons whose the CDBG entitlement regulations,HUD incomes are at or below 120 percent inadvertently omitted 24 CFR 570.202 Correction median income. from the list of activities correlated with On page 58334,Section B.,paragraph Correction eligible use(E).HUD inadvertently 4.b. should read as follows: omitted"24 CFR 570"in the citation for b.Each grantee must prepare and On page 58335 under Section E and community-based development submit its annual Action Plan the second paragraph under the section organizations in the list of activities amendment to HUD in accordance with entitled"Background,"should read as eligible correlated with eligible use(E). the consolidated plan procedures for a follows: Although the October 6,2008 notice by 24 CFR part 87, A the property for a specific,eligible