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RES 1997-2180 - Agmt with Bull Durham LP to renovate Bull Durham building 471 4 , reel 1 P,'6 of ONIAHA,NF�� fIanning Department .4&11 c' � 7 RECEIVED Omaha/Douglas Civic Center MAT1%t 1819 Farnam Street,Suite 1100 `7r!* T I � Omaha,Nebraska 68183-0110 o P- ' r':.'.. 97 �- Z J �� (402)444-5200 �,o „ (402)444-5150 A1TfD FE511.° CITY CLERK Telefax(402)444-6140 City of Omaha `Au11At1, '1 '�B `A`�11 f Hal Daub,Mayor Honorable President and Members of the City Council, The attached proposed Resolution approves an Agreement between the City of Omaha and Bull Durham Limited Partnership, a Nebraska Limited Partnership, to provide partial financing in the - amount of$500,000.00 to renovate the historic Bull Durham Building located at 1013 Leavenworth Street into leasable commercial space on the main floor and 48 spacious one,two and three bedroom apartments on the upper floors. Funding from the City will be provided through the FY97 HOME Rental Rehabilitation Program. Following a request for proposals and an in-depth review of each, the Bull Durham Limited Partnership was awarded $500,000.00 for the renovation of the Bull Durham Building. Total project cost is estimated at$4,774,350.00. In addition to the $500,000.00 HOME Repayable Loan, sources of funds include an $750,000.00 bank loan and $3,524,350.00 in the form of tax increment financing, historic tax credits, and a developer's note. This Project encourages the creation of additional residential units affordable to low and moderate income residents. The Bull Durham Limited Partnership shall comply with the Federal Fair Housing Act,as amended, and Section 504 of the Rehabilitation Act of 1973, and renovate the appropriate number of units accessible and adaptable for persons having mobility, hearing or vision impairments. 1 Honorable President and Members of the City Council Page 2 The Contract Compliance Ordinance requires that the Human Relations Director conduct a pre- award review of the employment practices of a contractor and its proposed subcontractors with a City contract over $500,000.00. The Human Relations Director will review the Bull Durham Limited Partnership's and its proposed subcontractors' affirmative action plans, required by Ordinance to be submitted, and make its determination and recommendations to the Mayor prior to the disbursement of funds. Your favorable consideration of this Resolution will be appreciated. Sincerely, Referred to City Council for Consideration: ./ 7• z • q7 7//7 7 Robert C. Peters Date Mayor's Office/Title ate Acting Planning Director Approved: Approved:,trjO •„ ?16 / Louis A. D'Ercole ,p Date George L' .D is, Jr. • Date Finance Director (/�✓ Human Relations Director -7_`)- %' P:\PLN2\3129.PJM v am. Following a request for proposals and an in-depth review of each, the Bull Durham Limited Partnership was awarded $500,000.00 for the renovation of the Bull Durham Building. Total project cost is estimated at$4,774,350.00. In addition to the $500,000.00 HOME Repayable Loan, sources of funds include an $750,000.00 bank loan and $3,524,350.00 in the form of tax increment financing, historic tax credits, and a developer's note. This Project encourages the creation of additional residential units affordable to low and moderate income residents. The Bull Durham Limited Partnership shall comply with the Federal Fair Housing Act,as amended, and Section 504 of the Rehabilitation Act of 1973, and renovate the appropriate number of units accessible and adaptable for persons having mobility, hearing or vision impairments. 1 AGREEMENT• THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal Corporation in Douglas County, Nebraska; and Bull Durham Limited Partnership, a Nebraska Limited Partnership,309 South 16th Street,Omaha,Nebraska 68102. The General Partners are THI, Inc., and Securities Project Corporation, Tammy Barrett, President. RECITALS: WHEREAS, the City of Omaha (hereinafter referred to as "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, Bull Durham Limited Partnership has its principal place of business at 309 South 16th Street, Omaha,Nebraska 68102; and, WHEREAS,Bull Durham Limited Partnership has submitted a preliminary application and has had the property inspected, a work write-up completed and have solicited bids which indicate the total renovation cost of the-Bull Durham Building, which will be comprised of leasable commercial space on the main level and 48 spacious one,two and three bedroom apartments on the upper levels located at 1013 Leavenworth Street,Omaha,Nebraska 68102 to be$4,774,350.00; and, WHEREAS,it is in the best interest of the City to enter into an agreement with Bull Durham Limited Partnership to provide partial financing to renovate the Bull Durham Building located at 1013 Leavenworth Street. IN CONSIDERATION OF THESE MUTUAL COVENANTS, Bull Durham Limited Partnership and the City of Omaha agree as follows: with the Federal Fair Housing Act,as amended, and Section 504 of the Rehabilitation Act of 1973, and renovate the appropriate number of units accessible and adaptable for persons having mobility, hearing or vision impairments. 1 • Section 1. Definitions-Abbreviations 1.1 "City" shall mean-the City of Omaha. 1.2 "Owner" shall mean Bull Durham Limited Partnership,a Nebraska Limited Partnership General Partners: THI,Inc. and Securities Project Corporation. The Securities Project Corporation is a wholly owned Subsidiary of South Omaha Affordable Housing Corporation, a Nebraska Non-profit Corporation, formerly known as Holy Name Affordable Housing Corporation (Exhibit "A"). 1.3 "Director" shall mean-the Planning Director of the City of Omaha. 1.4 "HOME Rental Rehabilitation Program Repayable Loan" shall mean- a non-recourse HOME Repayable Loan in the amount of$500,000.00 made subject to the terms, conditions and provisions of the loan agreement under which said loan is made, which shall provide, inter alia,that same shall be repayable in fifty (50) years from and after December 1, 1998. The Repayable Loan repayment shall be deferred for twenty (20) years. Beginning January 1, 2019, the loan, at the rate of 0% per annum, will begin amortizing over the remaining 30 year term(360 payments), with monthly payments of $1,388.89. The principal balance shall become due and payable upon sale or transfer of the property except as provided in Paragraph 6.8 of this Agreement. The loan may only be used for the purposes described herein. 1.5 "Construction Contract" shall mean - the contract for all renovation work to be performed upon the Subject Property, more specifically the property located at 10th and Leavenworth Streets,together with any work to be performed upon the land upon which said building is situated as may be required hereunder or deemed necessary or advisable and occasioned by said work upon structure. 1.6 "Rehabilitation Work" shall mean - all construction work provided for in the Construction Contract and as may be required hereunder. 1.7 "OHA" shall mean-the Omaha Housing Authority which is a governmental entity that administers the Section 8 Program. 1.8 "RRP" shall mean-the HOME Rental Rehabilitation Program. 1.9 "Subject Property" or "Property" shall mean-the land located at 1013 Leavenworth Street, Omaha,Nebraska, legally described as Lots 1, 2, 3 and the East 22 feet of Lot 4, Block 203, Original City of Omaha, as surveyed and lithographed in Douglas County,Nebraska,together with the North 1/2 of vacated alley adjoining on the South of said Lot 1, together with all improvements thereon. - 2 - 1.10 "HOME" shall mean - the program conducted under the provisions of the Cranston- Gonzalez National Affordable Housing Act, Title II, Subtitle A-HOME Investment Partnerships (P.L. 101-625) and the Code of Federal Regulations 24 CFR Part 92 (Exhibit B). 1.11 "HOME Funds" shall mean - that portion of the HOME Investment Partnerships Program awarded to the City as may be available to loan during the 1997 Program Year for rehabilitation of the Subject Property in an amount not to exceed$500,000.00, subject to the terms, conditions and requirements of this Agreement. 1.12 "Progress Payment" shall mean- that portion of the total Construction Contract paid in one or more disbursements, based upon the value of the construction work completed at the time the payment request is made. Section 2. Duties and Conditions of City Financing 2.1 The City will provide $500,000.00 comprised of FY97 HOME Rental Rehabilitation Program funds for the rehabilitation of the property located at 10th and Leavenworth Streets in the form of a HOME Rental Rehabilitation Program-Repayable Loan. 2.1.1 The Owner may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the actual amount needed. 2.2 The City shall review and monitor the required reports that identify the progress/accomplishments of the Owner, on the activities included in this Agreement and on contracts entered into with third parties pursuant thereto. 2.2.1 The Contract Compliance Officer will review the Owner's, and its proposed subcontractors', affirmative action plans, required by Ordinance to be submitted and make its determination and recommendations to the Mayor prior to the disbursement of funds. 2.3 After completion of rehabilitation,the property must comply with all appropriate City codes and ordinances, and with Federal Section 8 Housing Quality Standards and Property Rehabilitation Standards as established by the City of Omaha Planning Department, Housing and Community Development Division for the duration of the period of affordability as specified in Section 3.16.3 of this Agreement. 2.3.1 The City shall perform annual inspections of the property to ensure compliance with Section 2.3. 2.4 The City will secure its HOME Rental Rehabilitation Program-Repayable Loan with a second mortgage/deed of trust subordinate to an amount not to exceed$1,175,000.00. - 3 - � I The City shall ensure that the Owner repays the HOME Rental Rehabilitation Program- Repayable Loan, as set forth in Paragraph 1.4 supra. 2.5 Progress and final payments for the Rehabilitation Work shall be made on a percentage basis from each rehabilitation funding account as determined by the Director. 2.6 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 Owner has submitted for and received the approval of the Director of all of the following: 2.6.1 evidence that Owner funding is available as required by Paragraph 3.1 herein; and, 2.6.2 - a duly executed Construction Contract and evidence that the Owner and subcontractors have complied with the recommendations of the Contract Compliance Officer as required in Paragraph 2.2.1 above; and, 2.6.3. a Performance and Labor Materials Bond and/or an Irrevocable Letter of Credit in force for one year following the completion of the Rehabilitation Work from the electrical,plumbing and HVAC subcontractors in aggregate amounts of their contract bid and lien waivers for the remainder of the Rehabilitation Work. The Bonds and/or Letters of Credit shall be in favor of • the City and shall be submitted for review and approval by the Director. The City reserves the right to reject the Letters of Credit and choice of surety for the Bonds. The City shall pay its $500,000.00 Repayable Loan upon completion of the Rehabilitation Work. 2.7 In no event shall the City assume any obligations to make or continue to make any and all of the above-referenced funding available nor shall the City incur any liability hereunder unless and until the Owner has timely and fully complied with its duties and obligations arising hereunder. 2.8 In the event that all of the terms and conditions for funding as set forth hereinabove have been fully complied with,the City does hereby agree to make only those progress payments as may be authorized to be paid by the Director or his designate upon receipt, verification and approval of an AIA Document G702 "Application and Certificate for Payment", provided that no payments shall be made for any work, labor, material or expense incurred which the Director, in his sole discretion, deems to be: 2.8.1 unacceptable or substandard; or, -4 - with a second mortgage/deed of trust subordinate to an amount not to exceed$1,175,000.00. - 3 - � I 2.8.2 not in accordance with this Agreement or the Construction Contract as approved; or, 2.8.3 not in conformance with the applicable state, federal and local laws, including but not limited to,the building,plumbing and/or electrical codes; or, 2.8.4 not in conformance with the work write-up and/or proposals as approved. 2.9 In the event that all of the conditions of funding are not met on or before December 31, 1997,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 up to an additional six months. 2.10 With respect to Property units that are currently occupied, if any, the Owner shall provide the City with a Tenant Survey Form for each rental unit. Upon the Owner's request, the City will provide a copy of each Tenant Survey Form to OHA for each unit; and at the Owner's request, the City will notify OHA of the completion of the Rehabilitation Work. 2.11 During the period of project development and construction work, and for the term of the loan, the Owner shall maintain insurance in at least the amount of the HOME Rental Rehabilitation Program-Repayable Loan and apply such insurance proceeds to the reconstruction of the project or repayment in full of the HOME Rental Rehabilitation Program-Repayable Loan. 2.12 The HOME Rental Rehabilitation Program Repayable Loan shall be a non-recourse loan; therefore, in the event of a default, the City shall rely solely upon the property which is secured by the mortgage/deed of trust which is the security for the promissory note and will not initiate or participate in any claim or proceedings against the Maker of the promissory note or its Partners (or the partners, officers, directors, or shareholders of any partner)for payment of any sum due under the promissory note or any other sum due under the mortgage/deed of trust. (Exhibit "C") Section 3. Duties and Conditions of the Owner 3.1 The Owner shall secure $4,274,350.00 in the form of a bank loan, tax increment financing, historic tax credits, and/or a developer's note for the Rehabilitation Work. The Owner shall certify the availability of these funds to the Director in a manner designated by him. 3.2 The Owner does hereby certify, contract and agree that any and all funding obtained by it or made available to it hereunder shall be used solely and exclusively for the express purpose of rehabilitating the Subject Property in strict compliance with this Agreement and the Construction Contract as approved, as well as the proposals, drawings and other specifications as approved. - 5 - 3.3 The Owner shall execute a promissory note and mortgage/deed of trust for the benefit of the City of Omaha securing the HOME Rental Rehabilitation Program-Repayable Loan. 3.4 The Owner shall submit to the Director, for his review and approval, all proposals, working drawings,plans and specifications necessary or incidental to this project. In addition, the Owner shall submit a duly authorized Construction Contract for the Director's review and approval. The Director reserves the right to reject,modify and amend any or all of the foregoing. Upon approval,no changes or amendments may be made to any of the foregoing without the written approval of the Director. In no event shall the City become obligated to make any payments for any work performed, materials furnished, expenses incurred, or any other expenditure of whatsoever kind or nature unless same was expressly included in one or more of the above-mentioned documents as approved. 3.4.1 The Owner shall submit to the Contract Compliance Officer for approval the :- Owner's and its Subcontractors' affirmative action plans. 3.5 The Owner shall procure and maintain insurance and secure Performance and Labor Materials Bonds and/or Irrevocable Letters of Credit from the electrical,plumbing and HVAC subcontractors,in favor of the City, in aggregate amounts of their contract bid and liens shall be provided for the remainder of the Rehabilitation Work. The Letters of Credit shall be in force for one year following the completion of the Rehabilitation Work. The Bonds and/or Letters of Credit shall be submitted for review and approval by the Director. The Director reserves the right to reject the Letters of Credit and the choice of surety for the Bonds. 3.6 The Owner shall not commence any work hereunder until such time as it has received a written notice to proceed as issued by the Director. Any work performed prior to the issuance of such notice shall be the sole responsibility of the Owner. 3.7 The Owner agrees to rehabilitate the Property located at 10th and Leavenworth Streets into leasable commercial space on the main floor and 48 spacious one,two and three bedroom apartments on the upper floors, in accordance with this Agreement and any and all approved proposals,plans, drawings or specifications. 3.8 The Owner shall maintain the Property being rehabilitated at all times in a safe and sanitary condition. 3.9 The Owner shall ensure that all work performed and the Rehabilitation Work as completed is in conformance with all State, Federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Houses(HQS) and Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 3.10 The Owner 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 the U.S. Department of Housing and Urban Development (HUD). 3.11 The Owner shall ensure that all taxes, regular and special, and property insurance are paid up-to-date of the scheduled time for loan closing and must remain current throughout the term of the HOME Rental Rehabilitation Program-Repayable Loan. 3.12 The Owner shall begin Rehabilitation work no later than sixty (60) days from the date of loan closing and make best efforts to complete construction by December 1, 1998. The Director may extend the construction completion date, but in no event may the construction completion date exceed twenty-four months from the date of execution of this Agreement. 3.13 The Owner shall comply with the City of Omaha's HOME/Community Development Block Grant Rental Rehabilitation Program Guidelines,attached hereto as Exhibit"D" and incorporated herein by this reference as though fully set forth. 3.14 The Owner shall comply with the City of Omaha's Affirmative Marketing Policy of the HOME/Community Development Block Grant Rental Rehabilitation Program Guidelines, attached hereto as Exhibit "D" and incorporated herein by reference as though fully set forth. 3.15 The Owner shall comply with the City of Omaha Tenant Assistance Policy of the HOME/Community Development Block Grant Rental Rehabilitation Program Guidelines, attached hereto as Exhibit "D" and incorporated herein by this reference as though fully set forth, while the Owner maintains title. The Owner further agrees to pay any costs the City deems necessary for the displacement of tenants, either permanent or temporary, pursuant to the City of Omaha Tenant Assistance Policy. 3.16 The Owner agrees that 80% of the units, or 38 apartments, shall be occupied by low income families whose annual income does not exceed 60% of the "Median Income by Family Size" as published by HUD, and as further updated and revised annually by HUD to reflect the current or most recent income level statistics,a copy of the relevant portion of which is attached hereto, marked as Exhibit C and incorporated herein by this reference. 3.16.1 In addition to the above, the Owner agrees that 20% of the multi-family housing units, or 10 apartments, shall be occupied by a very low income family whose annual income does not exceed 50%of the "Median Income by Family Size" as published by HUD, and as further updated and revised annually by HUD to reflect the current or most recent income level statistics, Exhibit "E". - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 3.16.2 In no event shall eligible families be charged rental amounts in excess of the regulatory limits as specified in the HOME Regulations, 24 CFR Part 92, Subpart F, Section 92.252, attached hereto as Exhibit B and incorporated herein by this reference as though fully set forth, for the leasing of the rental housing units rehabilitated with the HOME-Repayable Loan funds. 3.16.3 The Owner agrees that the occupancy and affordability requirements of Sections 3.16, 3.16.1, and 3.16.2 will remain in effect for a term of not less than five (5)years beginning after project completion. 3.16.4 If, through breach of this Agreement, the Owner fails to maintain the occupancy and affordability restrictions enumerated in Sections 3.16, 3.16.1, 3.16.2 and 3.16.3 of this Agreement, all HOME funds previously provided to the Owner through fulfillment of this Agreement shall promptly be returned to the City of Omaha. 3.17 The Owner shall maintain such records and accounts, including property, personnel and financial records, as are deemed necessary by the City to assure a proper accounting of all expenses. The Comptroller General of the United States, or any of their duly authorized representatives,or any duly authorized representatives of the City of Omaha, as approved by the Planning Director, shall have access to any books, documents, papers, records and accounts of the Owner, contractor or subcontractor 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 five (5) years from the contract period completion. Any contract entered into by the Owner with any contractor or subcontractor shall include this Section to ensure said access. • 3.18 The Owner agrees to use no lead-based paint in the performance of this Agreement, including the performance of any subcontractor. "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 to lead in the dried film of paint already applied. The Owner further agrees to abide by all Federal requirements regarding the lead-based paint poison prevention. 3.19 The Owner shall retain the following records for each family or individual occupying a rental unit for three (3) years after the required period of affordability specified in Section 3.16.3 of this Agreement: 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 3.19.4 The median family income as determined annually pursuant to Section 3.16 of this Agreement. 3.20 Occupancy Reports - During the term of the Agreement, as defined in Section 4, the Owner shall provide to the Director the following information: a) name(s)of tenant(s) b) address of property c) household income as a percent of Median Family Income as determined by HUD d) household size e) gender of head of household member age of each household member g) race/ethnicity of head of household h) disabled status of any household member 3.21 Comply with and insure that applicable bid documents, contracts, and subcontracts contain the Federal Labor Standards provision and applicable Department of Labor wage determination and that no contractor is ineligible for Federally-assisted work. The wage determination may be modified to keep it current. All actions modifying a general wage determination apply unless notice of such action is published less than 10 days before contract award. The City will send these modifications to the Developer(Exhibit "F"). 3.22 The Owner shall submit to the Director a certified audit of all construction costs including developer and contractor costs. This audit shall be performed by a duly qualified professional,whom shall first be approved by the Director in writing. This audit shall be submitted to the Director for review and approval. The final amount of HOME assistance will be based on the audited costs. If the final project cost is less than the estimated cost, the City and the Owner will share the cost savings proportionately. 3.23 The Owner specifically hereby states 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 information 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 purpose stated, and the Owner further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use of the information provided. 3.24 The Owner shall complete a certified rehabilitation of the building located at 1013 Leavenworth Street under the Historic Preservation Certification Program. • - 9 - tal unit for three (3) years after the required period of affordability specified in Section 3.16.3 of this Agreement: 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - • 3.25 The Owner shall obtain final certification from the National Park Service, Denver, Colorado,verifying that the Owner has complied with and met the Secretary of the Interior's "Standards for Rehabilitation". 3.26 The Owner shall comply with the Federal Fair Housing Act,as amended,and Section 504 of the Rehabilitation Act of 1973, and renovate the appropriate number of units accessible and adaptable for persons having mobility,hearing or vision impairments. Section 4. Term of Agreement This Agreement shall be in full force and effect for a period of five years from the date of completion of the Rehabilitation Work. Section 5. Mutual Agreements The Owner agrees, and the City states,that the City: 5.1 Is not acting as the Owner's architect or engineer. 5.2 Makes no warranties, express or implied, as to the Rehabilitation Work. 5.3 Owes no duty to the Owner or any other person that shall arise because of any inspection of the premises by the City's agent or employees. 5.4 May inspect the Property at any reasonable time, including a final inspection, to certify completion prior to final disbursement of loan proceeds. 5.5 Is held harmless for all injury and damages arising by virtue of this Agreement. Section 6. Provisions of the Agreement 6.1 Equal Employment Opportunity/Section 3 Clause/Affirmative Action Plan Attached hereto as Exhibit "G" and made a part hereof by reference are the equal employment provisions of this Agreement. 6.2 Non-Discrimination. The Owner shall not in the performance of this Agreement, discriminate or permit discrimination in violation of race, color, sex, age, political or religious opinions, affiliations, national origin, familial status, disability, or handicap. 6.3 Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. - 10 - purposes and not to harass, degrade or humiliate any person. The information released shall be used for the limited purpose stated, and the Owner further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use of the information provided. 3.24 The Owner shall complete a certified rehabilitation of the building located at 1013 Leavenworth Street under the Historic Preservation Certification Program. • - 9 - tal unit for three (3) years after the required period of affordability specified in Section 3.16.3 of this Agreement: 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 6.4 Applicable Law. 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 terms and the performance under this Agreement. 6.5 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 this Agreement voidable by the Mayor or the City Council. 6.6 Merger. This Agreement shall not be merged into any other oral or written Agreement, lease or deed of any type. 6.7 Modification. This Agreement contains 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. 6.8 Assignment. The Owner may not assign its rights or obligations under this Agreement without the express prior written consent of the City; except, that the Mayor may, without City Council approval, approve, in writing, the assignment to a limited partnership so long as the Owner remains a general partner. 6.9 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 except upon written direction from authorized representatives of the parties, pursuant to Section 10-142 of the Omaha Municipal Code. 6.10 Termination. This Agreement may also be suspended or terminated in accordance with 24 CFR 85.43, Enforcement or 24 CFR 85.44, Termination for Convenience (Exhibit "H"). Upon termination of this Agreement, all funds and interest in any account hereunder become the property of the City and shall be returned to the City of Omaha. 6.11 Other Program Requirements. The Owner shall be required to carry out each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 6.12 Reversion of Assets. Upon the expiration of this Agreement, the Owner shall transfer to the City of Omaha any HOME Funds on hand at the time of expiration and not required for the purpose of this Agreement. 6.13 The Owner shall indemnify and hold the City harmless from and against: (1)any and all claims arising from contracts between the Owner 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. 6.14 This Agreement shall be binding upon the parties hereto and shall run with the Property. 6.15 The Owner certifies, to the best of its knowledge and belief,that: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,to any person for influencing or attempting to influence an officer or employee of 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. (b) 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 or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - and for the period of any applicable statute of limitations thereafter,the following named individuals shall be authorized representatives of the parties: (1) City of Omaha (2) Bull Durham Limited Partnership, a Director, Planning Department Nebraska Limited Partnership Omaha/Douglas Civic Center General Partners: THI, Inc. and 1819 Farnam Street Securities Project Corporation Omaha,Nebraska 309 South 16th Street Omaha,NE 68102 IN WITNESS WHEREOF,the parties have executed this Agreement as of the date indicated below: ATTEST: CITY OF ea ‘±FE:::• fr/S" f� ; .0 TY...404 RK.OF THE CITY OF OMAHA Dat MAYOR OF THE CITY OF OMAHA Date BULL DURHAM LIMITED PARTNERSHIP, a Nebraska Limited Partnership By: THI,INC., GENERALp PARTNER By: 12' DamAte- -1'j"q Tammy Barrett,President Date By: SECURITIES PROJECT CORPORATION, GENERAL PARTNER, a wholly owned . Subsidiary of South Omaha Affordable Housing Corporation,a Nebraska Non-Profit Corporation By:i47-1-q 1 Name Date Title ta7 APPROVED /TO F07.1 7-d-i'7 P:\PLN2\3131.PJM ASSISTANT CITY ATTORNEY Date - 13 - r influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - • I SCHEDULE OF EXHIBITS Agreement Exhibit Location Description A 1.2 Bull Durham Partnership Agreement; THI, Inc. Articles of Incorporation, Corporate Resolution, Board Members; Securities Project Corporation Articles of Incorporation, Corporate Resolution, Board Members, Affidavit B 1.10, 3.16.2, 6.11 HOME Investment Partnerships (P.L. 101-625) and the Code of Federal Regulations 24 CFR Part 92 C 2.12 Non-Recourse Repayable Loan Promissory Note D 3.13, 3.14, 3.15 - HOME Rental Rehabilitation Program Guidelines, Affirmative Marketing Policy, and Tenant Assistance Policy E 3.16 Median Family Income F 3.21 Davis-Bacon Wage Decision G 6.1 Equal Employment Opportunity/Section 3 Clause/ Affirmative Action Plan H 6.10 Termination- CFR 85.43 - 85.44 P:\PLN2\3131.PJM _ - 14 - f� ER, a wholly owned . Subsidiary of South Omaha Affordable Housing Corporation,a Nebraska Non-Profit Corporation By:i47-1-q 1 Name Date Title ta7 APPROVED /TO F07.1 7-d-i'7 P:\PLN2\3131.PJM ASSISTANT CITY ATTORNEY Date - 13 - r influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - );b .f "A" CERTIFICATE AND AGREEMENT OF LIMITED PARTNERSHIP THIS CERTIFICATION AND AGREEMENT made as of the 27th day of Feb., 1997, between THI, Inc'. (a "General Partner"), Securities Project Corporation (a "General Partner"), and Tammy Barrett (the "Initial Limited Partner"). WITNESSETH: That the parties hereto, for good and valuable consideration, receipt of which is hereby acknowledged, hereby form a limited partnership (the "PARTNERSHIP")under the laws of the State of Nebraska for the term and upon the conditions set forth herein, MAk 7 1997 and each of the parties hereby mutually covenants and agrees as follows: i vi E OF RAsKA SECRETARY'S OOFFICE I Received filed and recorded on film roll no. Zy The name of the Partnership is "BULL DURHAM LIMITED at page PARTNERSHIP." secretary of State II. The purpose Partnership ose of the shall be to covert, own, rent, and operate the premises at 1013 Leavenworth Street in Omaha, Nebraska as a multi-family residential apartment project. III. The principal place of business and office of the Partnership shall be do Tammy Barrett, 309 South 16th Street, Omaha, Nebraska 68102. • IV. Tammy Barrett, whose address is 309 South 16th Street, Omaha, Nebraska 68102, shall be the agent for services of process on the Partnership. ZO'd £Z9£-St'£ ZO'b 1.uawdoLanaO aL1Cq-SnN d9Z =£O L6-ZO-uric, of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - V. The name and business addresses of the General Partners are: THI, Inc. 309 South 16th Street Omaha, Nebraska 68102 Securities Project Corporation 1704 South Tenth Street Omaha, Nebraska 68108 VI. The Partners' interest in the Profits and Losses of the Partnership are as follows: General Partners THI, Inc. 0 .50% Securities Project Corporation 0 .50% Initial Limited Partner 99.00% VII. The Partnership will allocate all items of Partnership income, profits and losses to the Partners on a pro rata basis according to the proportionate interest held by each Partner in the Partnership. VIII. The Initial Limited Partner hereby consents and agrees that the Partnership may sell additional Limited Partnership interests at the election of the General Partner to investors pursuant to a private placement of such interests and they hereby consent to the admission of additional Limited Partners to the Partnership upon the approval of the General Partner. IX. In the event of the bankruptcy or dissolution of the General Partner, the Partnership will be dissolved unless the initial Limited Partner elects to continue the Partnership and select one or more successor General Partner. £O'd £Z9£-Sts£ 2017 1.uawdoLanaa aLCISnN d9Z = £O L6-ZO-unr gent for services of process on the Partnership. ZO'd £Z9£-St'£ ZO'b 1.uawdoLanaO aL1Cq-SnN d9Z =£O L6-ZO-uric, of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - • • X. Tammy Barrett is hereby empowered and authorized as President of the General Partner and on behalf of the Partnership to execute any and all documentation in the name of the Partnership regarding any financing or governmental grants or loans to be obtained by the Partnership and/or real estate to be acquired in the name of the Partnership. XI. This Certificate and Agreement of Limited Partnership shall be amended at such time or times as may be required by the Nebraska Uniform Limited Partnership Act. GENERAL PARTNERS: THI, INC. p By: 1 � &<A Tammy Barrett, President SECURITIES PROJECT CORP. Robert DeLay, Executive Dir ctor LIMITED PARTNER: j� fa��'�'f'''vi �Sl m Tammy Barrett 17O'd EZ9E-SVE ZOb q.uawdoLanaQ aL/C -SnN dLZ :EO L6-ZO-unr • h r f STATE OF NEBRASKA ) ) COUNTY OF DOUGLAS ) SUBSCRIBED AND SWORN to before me this 27th day of February, 1997 by Tammy Barrett, President of THI, Inc. tary Public STATE OF NEBRASKA ) COUNTY OF DOUGLAS ) SUBSCRIBED AND SWORN to before me this 27th day of February, 1997 by Robert DeLay, Executiv irector of Securities Proje Corp. Gc-NkrA 1 rnT ARY•Statr,of NeEraska OU!E 14 FEr R lAY Comm.ExP• epl.£1,t939 otary Public STATE OF NEBRASKA ) COUNTY OF DOUGLAS ) SUBSCRIBED AND SWORN to before me this 27 day of February, 1997 by Tammy Barrett. GENERAL NOTARY•slate"t t4ebraska JULIE tt,WEBERg t999 Comm Exp-SeP ,A, SO'd EZ9E-SVE ZOV 1uawdoLena❑ aLA SnN dLZ :EO L6-ZO-unr �bl.ro ��_ '�� r' r .-.J J u l • .�c� �� . �,. OCT 2 3 ��'� STATE 0r NEBP SKAj ss • C AM'g� ( %; .'e 'S OF t 'i\l F_t(?OPtaPAt`i. record ;a!;d .• rt-., c? c::t ARTICLES OF INCORPORATION film roll qj 3 a` ,,..,:, 1 OF THI, INC. I, the undersigned natural person of the age of twenty-one years or more, acting as incorporator of a corporation under the Nebraska Business Corporation Act, adopt the following Articles of Incorporation for such corporation: ARTICLE I NAME The name of the corporation is THI, Inc. • ARTICLE H DURATION The period of the corporation's duration is perpetual. ARTICLE III PURPOSES (a) The transaction of any and all lawful business for which corporations may be incorporated under the Nebraska Business Corporation Act; and (b) To do everything necessary, proper, advisable and convenient for the accomplishment of the purposes hereinabove set forth, and to do all other things incidental thereto or connected therewith which are not forbidden by the laws of the State of Nebraska or by these Articles of Incorporation. ARTICLE IV POWERS • The corporation shall have and exercise all powers and rights conferred upon corporations by the Nebraska Business Corporation Act and any enlargement of such powers conferred by subsequent legislative acts; and, in addition thereto, the corporation shall have and exercise all powers and rights, not otherwise denied corporations by the laws of the State of Nebraska, as are necessary, suitable, proper, convenient or expedient to the attainment of the purposes set forth in ARTICLE III above. • oerporeUen consultants me. October 22,1991 1 • I4 or all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loan and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Section 7. Authorized Representative In further consideration of the mutual covenants herein contained,the parties hereto expressly agree that for purpose of notice,including legal service of process,during the term of this Agreement - 12 - � each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A,E,F and H of the HOME Investment Partnerships Program;Interim Rule (24 CFR Part 92) (Exhibit "B"). - 1 *. 0 1 - 3.19.1 The name, address, and unit occupied, 3.19.2 A copy of the lease/rental agreement entered into with the Owner, 3.19.3 The date(s) of occupancy, and - 8 - - 7 - Property Rehabilitation Standards (PRS) as established by the Planning Department, Housing and Community Development Division. - 6 - 9OO!4 / .�.�Ir+G.PAGSW ARTICLE V AUTHORIZED SHARES The aggregate number of shares which the corporation shall have the authority to issue is 10,000 shares of common stock and the par value of each of said shares shall be $1.00. Shares of the capital stock of any class or series now or hereafter authorized may be issued by this corporation for such consideration as shall be fixed from time to time by the Board of Directors of this corporation; provided, however, that the consideration for the issuance of shares having par value not be less than such par value. Any and all shares of stock so issued for which the consideration so fixed has been paid or delivered to this corporation shall be declared and taken to be fully paid stock and shall not be liable to any further call or assessments thereon, and the holders of such shares shall not be liable for any further payments in respect of such shares. Subscriptions to, or the purchase price of, shares of the capital stock of any class of this corporation may be paid for, wholly or partly, by cash, by labor done, by personal property or by real property or leases thereof. In the absence of actual fraud in the transaction, the judgment of the Board of Directors as to the value of such labor, property, real estate or leases thereof shall be conclusive. No holder of any capital stock of this corporation of any class or series now or hereafter authorized shall, as such holder, have any preemptive or other right to purchase or subscribe for any shares of the capital stock of any class or series which this corporation may issue or sell. ARTICLE VI INTEREST OF DIRECTORS IN TRANSACTIONS In the absence of fraud, no contract or other transaction between the corporation and any other person,corporation, firm,syndicate, association,partnership or joint venture shall be wholly or partially invalidated or otherwise affected by reason of the fact that one or more of the directors of the corporation are or become directors or officers of such other corporation,firm,syndicate or association, or members of such partnership or joint venture, or are pecuniarily or otherwise interested in such contract or transaction; provided, that the fact such director or directors of the corporation are so situated or so interested, or both, shall be disclosed or shall have been known to the Board of Directors of the corporation. Any director or directors of the corporation who is also a director or officer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • f � BOO .6PA,G3_, De ARTICLE VII RESTRICTIONS ON SHAREHOLDER'S SALE OF STOCK By agreement, the shareholders may provide restrictions upon the sale and transfer of issued and outstanding stock in the corporation by the holders thereof, giving to other holders of issued and outstanding shares of stock in the corporation or to the corporation itself, rights to purchase any such shares as may be sought to be sold or transferred. The corporation may, but need not, become a party to any such agreement. Any such agreement shall be recorded in the minute book of the corporation, be filed with the Secretary of the corporation and shall be open to inspection by any person having a legitimate interest in the provisions thereof, whether as a holder of, one interested in any way in, or one interested in purchasing or otherwise acquiring interests in shares of stock of the corporation or warrants, options, or other instruments evidencing rights to subscribe for, purchase, or otherwise acquire such shares. The existence of any such agreement and its availability for inspection shall be stated upon each certificate representing the shares issued by the corporation. If all of the shareholders are then a party to any such agreement, any person purchasing or otherwise acquiring shares of stock of the corporation subsequent to the existence of such an agreement shall be obligated to become a signatory thereto, unless otherwise provided in such agreement or in the By-laws. ARTICLE VIII INITIAL REGISTERED OFFICE AND INITIAL REGISTERED AGENT The street address of the initial registered office of the corporation is: 1704 South 10th Street, Omaha, Nebraska 68108. The name of the registered agent at such address is: Tammy I. Heistand. ARTICLE IX NAME AND ADDRESS OF INCORPORATOR The name and address of the incorporator is: Thomas E. Whitmore, 10801 Pacific Street, Omaha, Nebraska 68154. Dated: October 22, 1991. 0/01/OA/IL Thomas E. Whitmore Sole Incorporator Corporation Conautunu P.C. October 22,1991 3 or transaction; provided, that the fact such director or directors of the corporation are so situated or so interested, or both, shall be disclosed or shall have been known to the Board of Directors of the corporation. Any director or directors of the corporation who is also a director or officer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Officer's of THI, Inc. Tammy Barrett, President Todd Heistand, Vice-president and Secretary Cynthia Koster, Treasurer this 27th day of February, 1997 by Tammy Barrett, President of THI, Inc. tary Public STATE OF NEBRASKA ) COUNTY OF DOUGLAS ) SUBSCRIBED AND SWORN to before me this 27th day of February, 1997 by Robert DeLay, Executiv irector of Securities Proje Corp. Gc-NkrA 1 rnT ARY•Statr,of NeEraska OU!E 14 FEr R lAY Comm.ExP• epl.£1,t939 otary Public STATE OF NEBRASKA ) COUNTY OF DOUGLAS ) SUBSCRIBED AND SWORN to before me this 27 day of February, 1997 by Tammy Barrett. GENERAL NOTARY•slate"t t4ebraska JULIE tt,WEBERg t999 Comm Exp-SeP ,A, SO'd EZ9E-SVE ZOV 1uawdoLena❑ aLA SnN dLZ :EO L6-ZO-unr • CERTIFIED CORPORATE RESOLUTION WHEREAS, THE, Inc. desires to develop a 48-unit multi-family residential project in order to address the critical shortage of housing for low-income families; WHEREAS, the most appropriate vehicle for generating the necessary equity for such projects is through a limited partnership which is authorized to sell the low-income housing tax credits pursuant to Internal Revenue Code S42; THEREFORE BE IT RESOLVED by the President of THE, Inc., that: THI, Inc. establish a limited partnership entitled Bull Durham Limited Partnership, and that THI, Inc. act as the general partner of Bull Durham Limited Partnership; BE IT FURTHER RESOLVED that Tammy Barrett, President of THI, Inc., or Todd Heistand, Vice-President of THI, Inc., a Nebraska corporation in good standing with the State of Nebraska, is given full authority to represent THI, Inc., in its capacity as the general partner of Bull Durham Limited Partnership, and that Tammy Barrett or Todd Heistand is authorized to sign any and all official documents, contracts, loan agreements, promissory notes, mortgages, trust deeds, or other legal instruments pertaining to the necessary financing required for the affordable housing project to be developed by Bull Durham Limited Partnership, when THI, Inc., is acting in its capacity of general partner of the limited partnership. &(3/q-7 rocire Date Todd Heistand, Secretary, THE, Inc. aws. ARTICLE VIII INITIAL REGISTERED OFFICE AND INITIAL REGISTERED AGENT The street address of the initial registered office of the corporation is: 1704 South 10th Street, Omaha, Nebraska 68108. The name of the registered agent at such address is: Tammy I. Heistand. ARTICLE IX NAME AND ADDRESS OF INCORPORATOR The name and address of the incorporator is: Thomas E. Whitmore, 10801 Pacific Street, Omaha, Nebraska 68154. Dated: October 22, 1991. 0/01/OA/IL Thomas E. Whitmore Sole Incorporator Corporation Conautunu P.C. October 22,1991 3 or transaction; provided, that the fact such director or directors of the corporation are so situated or so interested, or both, shall be disclosed or shall have been known to the Board of Directors of the corporation. Any director or directors of the corporation who is also a director or officer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • STATE OF NEBRASKA SECRETARY'S OFFICE and orded on 5!m roil no. —o� •t pie / ARTICLES OF INCORPORATION Sal Secretary of State 3: • OF N►G f LG irci96;. 7/ - SECURIT -ps PROJECT CORPORATION The undersigned person, being of the age of majority and acting as Incorporator of the Corporation under the Nebraska Business Corporation Act, adopts the following Articles of Incorporation for such Corporation: ARTICLE I NAME The name of the Corporation is Securities Project Corporation. ARTICLE 11 AUTHORIZED SHARES The aggregate number of shares which the Corporation shall have the authority to issue is 1,000,000 shares of Common Stock, par value of $ 0.01 per share and a total value of $10,000.00. All transfers of the shares of this corporation shall be made in accordance with the provisions of the Bylaws of the Corporation. ARTICLE III The corporation reserves the right to amend or repeal any provisions contained in these Articles of Incorporation in the manner now and hereafter permitted by law, and all rights conferred upon shareholders herein are granted subject to this reservation. 01/525849.1 v v of the limited partnership. &(3/q-7 rocire Date Todd Heistand, Secretary, THE, Inc. aws. ARTICLE VIII INITIAL REGISTERED OFFICE AND INITIAL REGISTERED AGENT The street address of the initial registered office of the corporation is: 1704 South 10th Street, Omaha, Nebraska 68108. The name of the registered agent at such address is: Tammy I. Heistand. ARTICLE IX NAME AND ADDRESS OF INCORPORATOR The name and address of the incorporator is: Thomas E. Whitmore, 10801 Pacific Street, Omaha, Nebraska 68154. Dated: October 22, 1991. 0/01/OA/IL Thomas E. Whitmore Sole Incorporator Corporation Conautunu P.C. October 22,1991 3 or transaction; provided, that the fact such director or directors of the corporation are so situated or so interested, or both, shall be disclosed or shall have been known to the Board of Directors of the corporation. Any director or directors of the corporation who is also a director or officer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • ARTICLE IV PREEMPTIVE RIGHTS Shareholders of the corporation shall have preemptive rights. ARTICLE V • LIABILITY A director of the Corporation shall not be personally liable to the Corporation or its shareholders for monetary damages for any action taken, or any failure to take action as a director except for liability (i) for the amount of a financial benefit received by a director to which he or she is not entitled; (ii) for intentional infliction of harm on the corporation or its shareholders; (iii) for a violation of Neb. Rev. Stat. § 21-2096; and (iv) for an intentional violation of criminal law. ARTICLE VI INDEMNIFICATION • To the extent permitted by law, the corporation 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, suit proceeding, whether civil, criminal, administrative or.investigative, including any action or suit by or in the right of the corporation to procure a judgment in its favor, by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture or other enterprise or as a trustee, officer, employee or agent of an employee benefit plan, against expenses, including attorney fees, and, except for actions by or in the right of the corporation, 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 corporation, and, with respect to any criminal action or proceeding, has no reasonable cause to believe his or her conduct was unlawful. To the extent permitted by law, the corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against any liability asserted against him or her and incurred by him or her in such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • other rights to which those indemnified may be otherwise entitled, nor shall the provisions of this Article be deemed to prohibit the corporation from extending its indemnification to cover other persons or activities to the extent permitted by law or pursuant to any provisions in the Bylaws. ARTICLE VII INITIAL REGISTERED OFTICE AND REGISTERED AGENT The street address of the initial registered office of the Corporation is 1650 Farnam Street, Omaha, Douglas County, Nebraska 68102 and the name of its initial registered agent at such address is P. Thomas Pogge. ARTICLE VIII NAME AND ADDRESS OF INCORPORATOR The name and address of the Incorporator is: P. Thomas Pogge, 1650 Farnam Street, Omaha, Nebraska 68102. DATED this 13th day of September, 1996. P. omas Pogge, Incorporato 01/525s49.1 3 SnN dLZ :EO L6-ZO-unr „ Jun. 12-.97 03: 22P NuStyle Development 402 345-3623 P.02 Securities Project Corporation Affidavit Be a hereby certified that the Securities Project Corporation is a wholly owned subsidiary of South Omaha Affordable Housing. IN WITNESS WHEREOF, the undersigned has executed this Securities Project Corporation .Affidavit, this 12th day of June, 1997. Sister Marilyn Ross, Exec vc Director the Corporation is 1650 Farnam Street, Omaha, Douglas County, Nebraska 68102 and the name of its initial registered agent at such address is P. Thomas Pogge. ARTICLE VIII NAME AND ADDRESS OF INCORPORATOR The name and address of the Incorporator is: P. Thomas Pogge, 1650 Farnam Street, Omaha, Nebraska 68102. DATED this 13th day of September, 1996. P. omas Pogge, Incorporato 01/525s49.1 3 SnN dLZ :EO L6-ZO-unr ^ '~ JUL Oy '87 11:28 TO-4448 4O F8OH~C[TAC T[CM~88L[S8MKkT{MG T~RN P.08/08 F~085 M", cmi IT at ro PI At mA oil Ilk (516k- z � � n .Affidavit, this 12th day of June, 1997. Sister Marilyn Ross, Exec vc Director the Corporation is 1650 Farnam Street, Omaha, Douglas County, Nebraska 68102 and the name of its initial registered agent at such address is P. Thomas Pogge. ARTICLE VIII NAME AND ADDRESS OF INCORPORATOR The name and address of the Incorporator is: P. Thomas Pogge, 1650 Farnam Street, Omaha, Nebraska 68102. DATED this 13th day of September, 1996. P. omas Pogge, Incorporato 01/525s49.1 3 SnN dLZ :EO L6-ZO-unr J5/1997 16:05 4024517187 HOLYNAMEHOUSING PAGE 06 ss Mufti ARTICLES OF AMENDMENT pieAria TO THE ARTICLES OF INCORPORATION .3/ asuiwyetais HOLY NAME AFFORDABLE HOUSING CORPORATION (N/K/A SOUTH OMAHA AFFORDABLE HOUSING CORPORATIONZ Pursuant to the provisions of Sections 21-19,107 and 21-19,109 of the Nebraska Nonprofit Corporation Act, the undersigned Corporation adopts the following Articles of Amendment to its Articles of Incorporation: FIRST: The name of the Corporation prior to the filing of these Articles of Amendment is Holy Name Affordable Housing Corporation. SECOND: Article I of the Articles of Incorporation of the Corporation is hereby amended to change the name of the Corporation from "Holy Name Affordable Housing Corporation" to "South Omaha Affordable Housing Corporation." These Articles of Amendment to the Articles of Incorporation were adopted unanimously by the directors present at a regular meeting of the Board of Directors of the Corporation at which a quorum was present on March 11, 1997, there being no members of the Corporation. IN WITNESS WHEREOF, the President and Secretary of the Corpqration, duly authorized, have executed these Articles of Amendment this day of /`7ti►e, , 1997. Ba =.1 orst Ant. John R. Holdenried •ecretary 21.18s �7 s, 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 corporation, and, with respect to any criminal action or proceeding, has no reasonable cause to believe his or her conduct was unlawful. To the extent permitted by law, the corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against any liability asserted against him or her and incurred by him or her in such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • MINUTES OF FIRST MEETING } OF DIRECTORS OF SECURITIES PROJECT CORPORATION The first meeting of the Directors of Securities Project Corporation, a Nebraska corporation (the "Corporation"), was held on the 9th day of October, 1996 at o'clock .m. pursuant to a Waiver of Notice signed by all of the Directors. Lisa A. Burks acted as Secretary of the meeting. Upon motion made and seconded, the following resolutions were adopted by unanimous vote: RESOLVED, that the following persons are elected to the offices of the Corporation set forth opposite their respective name: President - Sister Marilyn F. Ross Vice President - Robert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr CERTIFIED CORPORATE RESOLUTION WHEREAS, Securities Project Corporation desires to develop a 28-unit multi- family residential project in order to address the critical shortage of housing for low- income families; WHEREAS, the most appropriate vehicle for generating the necessary equity for such projects is through a limited partnership which is authorized to sell the low-income housing tax credits pursuant to Internal Revenue Code S42; THEREFORE BE IT RESOLVED by the President of Securities Project Corporation, establish a limited partnership entitled Bull Durham Limited Partnership, and that Securities Project Corporation act as the general partner of Bull Durham Limited Partnership; BE IT FURTHER RESOLVED that Sr. Marilyn Ross, President of Securities Project Corporation, or Robert DeLay, Vice-President of Securities Project Corporation, or Lisa Burke, Secretary of Securities Project Corporation, a Nebraska corporation in good standing with the State of Nebraska, is given full authority to represent Securities Project Corporation, in its capacity as the general partner of Bull Durham Limited Partnership, and that Sr. Marilyn Ross or Robert Delay or Lisa Burke are authorized to sign any and all official documents, contracts, loan agreements, promissory notes, mortgages, trust deeds, or other legal instruments pertaining to the necessary financing required for the affordable housing project to be developed by Bull Durham Limited Partnership, when Securities Project Corporation, is acting in its capacity of general partner of the limited partnership. 11-1-q p, Ao& Swiu yi Date Date e or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, has no reasonable cause to believe his or her conduct was unlawful. To the extent permitted by law, the corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against any liability asserted against him or her and incurred by him or her in such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • EXHIBIT Pig " SUBPARTS A, E, F AND H HOME Investment Partnerships Program Consolidated Interim Rule 24 CFR Part 92 July 12, 1995 f/ n"), was held on the 9th day of October, 1996 at o'clock .m. pursuant to a Waiver of Notice signed by all of the Directors. Lisa A. Burks acted as Secretary of the meeting. Upon motion made and seconded, the following resolutions were adopted by unanimous vote: RESOLVED, that the following persons are elected to the offices of the Corporation set forth opposite their respective name: President - Sister Marilyn F. Ross Vice President - Robert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr HOME Interim Rule as published in the Federal Register December 16, 1991; ° December 11, 1992; * December 22, 1992; + June 23, 1993; @ April 19, 1994; # August 26, 1994; and July 12, 1995 Symbols in text correspond to the date a section was amended. Footnotes in text indicate a change in another Federal Register. 41110 e following resolutions were adopted by unanimous vote: RESOLVED, that the following persons are elected to the offices of the Corporation set forth opposite their respective name: President - Sister Marilyn F. Ross Vice President - Robert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr Subpart A -- General § 92.1 Overview and purpose. 7 § 92.2 Definitions. 9 § 92.3 Waivers. 17 § 92.4 Suspension of requirements for disaster areas. 17 § 92.5 Expiration of interim rule. 18 Subpart B -- Allocation Formula § 92.50 Formula allocation. 18 § 92.51 [Removed]. 21 • § 92.52 Publishing formula allocation. 21 °Insular Areas Program § 92.60 Allocation amounts for insular areas. 21 § 92.61 Program description and housing strategy. 22 § 92.62 Review of program description and certifications. 24 § 92.63 Amendments to program description. 25 § 92.64 Applicability of requirements to insular areas. 25 § 92.65 Funding sanctions. 27 § 92.66 Reallocation. 27 Subpart C -- Participating Jurisdiction: Designation and Revocation of Designation-Consortia § 92.100 General. 27 § 92.101 Consortia. 27 § 92.102 Participation threshold amount. 29 § 92.103 Notification of intent to participate. 29 § 92.104 Submission of housing strategy. 30 § 92.105 Designation as a participating jurisdiction. 30 § 92.106 Continuous designation as a participating jurisdiction. 30 § 92.107 Revocation of designation as a participating jurisdiction. 30 Subpart D -- Program Description § 92.150 Submission of program description and certifications. 31 § 92.151 Review of program description and certifications. 31 § 92.152 Amendments to program description. 31 Subpart E -- Program Requirements § 92.200 Private-public partnership. 32 § 92.201 Distribution of assistance. 32 § 92.202 Site and neighborhood standards. 33 § 92.203 Income determinations. 34 3 maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against any liability asserted against him or her and incurred by him or her in such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • § 92.204 Applicability of requirements to entities that receive a reallocation of HOME 34 funds, other than participating jurisdictions. ELIGIBLE AND PROHIBITED ACTIVITIES § 92.205 Eligible activities: General. 35 § 92.206 Eligible project costs. 36 § 92.207 Eligible administration and planning costs. 39 § 92.208 Eligible CHDO operating expense and capacity building costs. 41 41 § 92.209 Eligible costs related to tenant-based rental assistance. 41 • § 92.210 Tenant-based rental assistance: security deposit § 92.211 Tenant-based rental assistance. 42 § 92.212 REACH: Asset recycling information dissemination. 45 • § 92.213 Development of model programs. 45 § 92.214 Prohibited activities. 46 § 92.215 Limitation on jurisdictions under court order. 46 INCOME TARGETING 92.216 Income targeting: Tenant-based rental assistance and rental units - Initial eligibility determination and reexamination. 47 § 92.217 Income targeting: Homeownership. 48 MATCHING CONTRIBUTION REQUIREMENT 1 92.218 Amount of matching contribution. 48 § 92.219 Recognition of matching contribution. 49 § 92.220 Form of matching contribution. 50 § 92.221 Match credit. 54 § 92.222 Reduction of matching contribution requirement. 55 Subpart F -- Project Requirements § 92.250 Maximum per-unit subsidy amount. 57 § 92.251 Property standards. 58 § 92.252 Qualification as affordable housing and income targeting: Rental housing. 58 § 92.253 Tenant and participant protections. 63 § 92.254 Qualification as affordable housing: Homeownership. 64 § 92.255 Mixed-income project. 67 § 92.256 Mixed-use project. 67 1 § 92.257 Religious organizations. 67 § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. 68 § 92.259 Elder cottage housing opportunity (ECHO) units. 68 r 4 . such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • k Subpart G -- Community Housing Development Organizations 92.300 Set-aside for community housing development organizations. 69 92.301 Project-specific assistance to community housing development organizations. 70 2.302 Housing education and organizational support. 72 2.303 Tenant participation plan. 75 Subpart H -- Other Federal Requirements .350 Equal opportunity and fair housing. 76 .351 Affirmative marketing. 77 352 Environmental review. 78 .353 Displacement, relocation, and acquisition. 78 .354 Labor. 83 355 Lead-based paint. 84 v56 Conflict of interest. 84 357 Debarment and suspension. 85 358 Flood insurance. 86 159 Executive Order 12372. 86 Subpart I -- Technical Assistance )0 Coordinated federal support for housing strategies. 86 Subpart J -- Reallocations 4 9, I General. 88 1 Reallocation of HOME funds from a jurisdiction that is not designated a participating jurisdiction or has its designation revoked. 88 Reallocation of community housing development organization set-aside. 89 Criteria for competitive reallocations. 90 Reallocations by formula. 92 Subpart K -- Program Administration The HOME Investment Trust Fund. 93 - -TOME Investment Partnership Agreement. 95 ;ash and Management Information System; Disbursement of HOME funds. 95 repayment of investment. 97 articipating jurisdiction responsibilities; written agreements; monitoring. 97 pplicability of uniform administrative requirements. 101 idit. 101 oseout. 101 •cordkeeping. 102 -formance reports. 107 _ 5 el .i/ v § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. 68 § 92.259 Elder cottage housing opportunity (ECHO) units. 68 r 4 . such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • Subpart L -- Performance Reviews and Sanctions § 92.550 Performance reviews. 107 (-- §, 92.551 Corrective and remedial actions. 108 § 92.552 Notice and opportunity for hearing; sanctions. 109 Authority: 42 U.S.C. 3535(d) and 12701-12839 • 6 Footnotes in text indicate a change in another Federal Register. 41110 e following resolutions were adopted by unanimous vote: RESOLVED, that the following persons are elected to the offices of the Corporation set forth opposite their respective name: President - Sister Marilyn F. Ross Vice President - Robert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr • Subpart A -- General § 92.1 Overview and purpose. § 92.2 Definitions. § 92.3 Waivers. '192.4 Suspension of requirements for disaster areas. "§ 92.5 Expiration of interim rule. § 92.1 Overview and purpose. (a) Overview. This part implements the HOME Investment Partnerships Act (the HOME Investment Partnerships Program). In general, under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible State and local governments to strengthen public-private partnerships to provide more affordable housing. Generally, HOME funds must be matched by nonfederal resources. State and local governments that become participating jurisdictions may use HOME funds to carry out multi-year housing strategies through acquisition, rehabilitation, and new construction of housing, and tenant-based rental assistance. Participating jurisdictions are able to provide assistance in a number of eligible forms, including loans, advances, equity investments. interest subsidies and other forms of investment that HUD approves. (b) Purpose. The purposes of the Home Program are: (1) To expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income Americans; (2) To mobilize and strengthen the abilities of States and units of general local government throughout the United States to design and implement strategies for achieving an adequate supply of decent, safe, sanitary, and affordable housing; (3) To provide participating jurisdictions, on a coordinated basis, with the various forms of Federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other federal assistance, needed (i) To expand the supply of decent, safe, sanitary, and affordable housing; (ii) To make new construction, rehabilitation, substantial rehabilitation, and acquisition of such housing feasible; and (iii) To promote the development of partnerships among the Federal government, states and units of general local government, private • C�7 as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • industry, and nonprofit organizations able to utilize effectively all available resources to provide more of such housing; (iv) To make housing more affordable for very low-income and low-income families through the use of tenant-based rental assistance; (v) To develop and refine, on an ongoing basis, a selection of model • programs incorporating the most effective methods for providing decent, safe, sanitary, and affordable housing, and accelerate the application of such methods where appropriate throughout the United States to achieve the prudent and efficient use of HOME funds; (vi) To expand the capacity of nonprofit community housing development organizations to develop and manage decent, safe, sanitary, and affordable housing; (vii) To ensure that federal investment produces housing stock that is available and affordable to low-income families for the property's remaining useful life, is appropriate to the neighborhood surroundings, and, wherever appropriate, is mixed income housing; (viii) To increase the investment of private capital and the use of private sector resources in the provision of decent, safe, sanitary, and affordable housing; (ix) To allocate federal funds for investment in affordable housing among participating jurisdictions by formula allocation; (x) To leverage HOME funds insofar as practicable with state and local matching contributions and private investment; • (xi) To establish for each participating jurisdiction a HOME Investment Trust Fund with a line of credit for investment in affordable housing, with repayments back to its HOME Investment Trust Fund being made available for reinvestment by the jurisdiction; (xii) To provide credit enhancement for affordable housing by utilizing the capacities of existing agencies and mortgage finance institutions when most efficient and supplementing their activities when appropriate; and 8 . . , as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • • (xiii) To assist very low-income and low-income families to obtain the skills and knowledge necessary to become responsible homeowners and tenants. § 92.2 Definitions. Adjusted income. See §§ 92.203 and 92.610. `Administrative costs [Removed.] Annual income. See §§ 92.203 and 92.610. Certification means a written assertion, based on supporting evidence, which must be kept available for inspection by HUD, the Inspector General and the public, which assertion is deemed to be accurate for purposes of this part, unless HUD determines otherwise after inspecting the evidence and providing due notice and opportunity for comment. Commitment means (1) The participating jurisdiction has entered into a legally binding agreement with a state recipient, a subrecipient, or a contractor to use a specific amount of HOME funds to produce affordable housing or provide tenant-based rental assistance or has entered into a written agreement reserving a specific amount • of funds to a CHDO, or commit to a specific local project, as defined in paragraph (2), below. (2) Commit to a specific local project, which means: (i) For a project which is privately owned when the commitment is made: (A) If the project is for rehabilitation or new construction, a written legally binding agreement between the participating jurisdiction and the project owner under which the participating jurisdiction (or other entity receiving HOME funds directly from HUD, state recipient, or subrecipient) agrees to provide HOME assistance to the owner for an identifiable project as defined in this part that can reasonably be expected to start construction within twelve months of the agreement and in which the owner agrees to start construction within that period. (B) If funds are used for tenant-based rental assistance, the participating jurisdiction (or other entity receiving HOME funds directly from HUD, State recipient, or subrecipient) has entered into a rental assistance contract with the owner or the tenant in accordance with the provisions of § 92.211. 9 8 . . , as such, whether or not the corporation would have the power to indemnify him or her against such liability. The indemnity provided for by this Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (C) If the project is for acquisition, a written legally binding agreement, i.e., contract for sale, between the participating jurisdiction (or other entity receiving HOME funds directly t from HUD, State recipient, or subrecipient) and the project owner under which the participating jurisdiction (or other entity receiving HOME funds directly from HUD, State recipient, or subrecipient) agrees to provide HOME. assistance to the owner for purchase of the project that can reasonably be expected to be accomplished within six months of the agreement and in which the owner agrees to transfer title within that period. (ii) For a project that is publicly owned when the commitment is made, the • Project Set-Up Report submitted under the Cash and Management Information System which identifies a specific project that will start construction within twelve months of receipt of the Project Set-Up Report. (iii) Under both paragraphs (2)(i) and (ii) of this definition, the date HUD enters into the Cash and Management Information System (§ 92.502) an acceptable Project Set-Up Report for a project is deemed to be the date of project commitment. Community housing development organization means a private nonprofit organization that (1) Is organized under state or local laws; (2) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; (3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization. A community housing development organization may be sponsored or created by a for-profit entity, but: (i) The for-profit entity may not be an entity whose primary purpose is the development or management of housing, such as a builder, developer, or real estate management firm. (ii) The for-profit entity may not have the right to appoint more than one-third of the membership of the organization's governing body. Board members appointed by the for-profit entity may not appoint the remaining two-thirds of the board members; and (iii) The community housing development organization must be free to contract for goods and services from vendors of its own choosing; 10 is Article shall not be deemed to be exclusive of any 01/525&a9.1 2 ficer of such other corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 4(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)(3) or (4) of the Internal Revenue Code of 1986; '(5) Does not include a public body (including the participating jurisdiction). An • organization that is State or locally chartered may qualify as a community housing development organization; however, the State or local government may not have the right to appoint more than one-third of the membership of the organization's governing body and no more than one-third of the board , members may be public officials. Board members appointed by the State or local government may not appoint the remaining two-thirds of the board members; '(6) Has standards of financial accountability that conform to 24 CFR 84.21, "Standards for Financial Management Systems." (7) Has among its purposes the provision of decent housing that is affordable to low-income and moderate-income persons, as evidenced in its charter, articles of incorporation, resolutions or by-laws; '(8) Maintains accountability to low-income community residents by -- '(i) Maintaining at least one-third of its governing board's membership for residents of low-income neighborhoods, other low-income community residents, or elected representative of low-income neighborhood organizations. For urban areas, "community" may be a neighborhood or neighborhoods. city, county or metropolitan area; for rural areas, it may be a neighborhood or neighborhoods, town, village, county, or multi-county area (but not the entire State); and (ii) Providing a formal process for low-income, program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing; (9) Has a demonstrated capacity for carrying out activities assisted with HOME funds. An organization may satisfy this requirement by hiring experienced accomplished key staff members who have successfully completed similar projects, or a consultant with the same type of experience and a plan to train appropriate key staff members of the organization; and (10) Has a history of serving the community within which housing to be assisted with HOME funds is to be located. In general, an organization must be able to show one year of serving the community (from the date the participating jurisdiction provides HOME funds to the organization). However, a newly created organization formed by local churches, service organizations or neighborhood organizations may meet this requirement by 11 r, ransaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • demonstrating that its parent organization has at least a year of serving the community. Consolidated plan The prepared ared in accordance with part 91 of this subtitle, which plan describes needs, resources, priorities and proposed activities to be undertaken with respect to HUD programs, including the HOME program. An approved consolidated plan means a consolidated plan that has been approved by HUD in accordance with part 91 of this subtitle.' Displaced homemaker means an individual who (1) Is an adult; (2) Has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and (3) Is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment. Family has the same meaning given that term by part 812 of this title. *First-time homebuyer [Removed] Government-sponsored mortgage finance corporations means the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Agricultural Mortgage Corporation. HOME funds means funds made available under this part through allocations and reallocations, plus all repayments and interest or other return on the investment of these funds. 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, ownership or membership in a cooperative, or equivalent form of ownership approved by HUD. The ownership interest may be subject only to the restrictions on resale required under § 92.254(a); mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the participating jurisdiction; 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. Household means one or more persons occupying a housing unit. Revised in January 5, 1995, Federal Register 12 ssisted with HOME funds is to be located. In general, an organization must be able to show one year of serving the community (from the date the participating jurisdiction provides HOME funds to the organization). However, a newly created organization formed by local churches, service organizations or neighborhood organizations may meet this requirement by 11 r, ransaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Housing includes manufactured housing and manufactured housing lots. Housing also includes elder cottage housing opportunity (ECHO) units that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single-family dwellings. Housing does not include emergency shelters. Housing strategy [Removed.]2 HUD means the United States Department of Housing and Urban Development. Impact fee means a fee or charge, levied by a government against a property, to cover wholly or partly the cost of providing capital improvements or public services necessitated by the construction or alteration of a residential or commercial development, or to control growth. Indian Housing Authority means any entity that is authorized to engage in or assist in the development or operation of low-income housing for Indians that is established either by exercise of the power of self-government of an Indian tribe independent of state law; or by operation of state law providing specifically for housing authorities for Indians, including regional housing authorities in the State of Alaska. Indian tribe means any Indian Tribe, band, group, or nation, including Alaskan Indians, Aleuts, and Eskimos, and any Alaskan Native Village of the United States that is considered an eligible recipient under Title I of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450) or was considered an eligible recipient under the State and Local Fiscal Assistance Act of 1972 (31 U.S.C. 1221) before repeal of that Act. Eligible recipients under the Indian Self-Determination and Education Assistance Act are determined by the Bureau of Indian Affairs. °Insular areas means Guam, the Northern Mariana Islands, the United States Virgin Islands, and American Samoa. Jurisdiction means a state or unit of general local government. Low-income families means families whose annual incomes do not exceed 80 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Low-income neighborhood means a neighborhood that has at least 51 percent of its households at or below 80 percent of median income for the area. 2 Revised in January 5, 1995, Federal Register 13 izations or neighborhood organizations may meet this requirement by 11 r, ransaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Metropolitan city has the meaning given the term in 570.3 of this title. 'Moderate income families means families whose incomes are between 80 percent and 95 1 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Monthly adjusted income. See §§ 92.203 and 92.610. Monthly income. See §§ 92.203 and 92.610. Neighborhood means a geographic location designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation that is within the boundary but does not encompass the entire area of a unit of general local government. If the unit of general local government has a population under 25,000, the neighborhood may, but need not, encompass the entire area of a unit of general local government. +Operating expenses means reasonable and necessary costs for the operation of the community housing development organization. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; and equipment, materials and supplies. Participating jurisdiction means any jurisdiction (as defined in this section) that has been so designated by HUD in accordance with § 92.105. Person with disabilities means a, household composed of one or more persons, at least one P of whom is an adult, who has a disability. (1) A person is considered to have a disability if the person has a physical, mental, or emotional impairment that (i), Is expected to be of long-continued and indefinite duration; (ii) Substantially impedes his or her ability to live independently; and (iii) Is of such a nature that such ability could be improved by more suitable housing conditions. (2) A person will also be considered to have a disability if he or she has a developmental disability, which is a severe, chronic disability that - 14 80 percent of median income for the area. 2 Revised in January 5, 1995, Federal Register 13 izations or neighborhood organizations may meet this requirement by 11 r, ransaction, may be counted for the purposes of determining the existence of a quorum at any meeting of the Board of Directors of the corporation which shall authorize any such contract or transaction and in the absence of fraud, and as long as he acts in good faith, any such director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (i) Is attributable to a mental or physical impairment or combination of mental and physical impairments; • (ii) Is manifested before the person attains age 22; (iii) Is likely to continue indefinitely; (iv) Results in substantial functional limitations in three or more of the following areas of major life activity: Self-care, receptive and expressive language, learning, mobility, self-direction, capacity for independent living, and economic self-sufficiency; and (v) Reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are of lifelong or extended duration and are individually planned and coordinated. Notwithstanding the preceding provisions of this definition, the term "person with disabilities" includes two or more persons with disabilities living together, one or more such persons living with another person who is determined to be important to their care or well-being, and the surviving member or members of any household described in the first sentence of this definition who were living, in a unit assisted with HOME funds, with the deceased member of the household at the time of his or her death. 'Project means a site or an entire building (including a manufactured housing unit), or two or more buildings, together with the site or (when permissible) sites on which the building or buildings are located, that are under common ownership, management, and financing and are to be assisted with HOME funds, under a commitment by the owner, as a single undertaking under this part. Project includes all the activities associated with the site 4nd building. A project may include more than one site only if the sites are within a four block area of each other or if the project is undertaken pursuant to subpart M (HOME Funds for Indian Tribes) of this part. Project completion means that all necessary title transfer requirements and construction work have been performed and the project in HUD's judgement complies with the requirements of this part (including the property standards adopted under § 92.251); the final drawdown has been disbursed for the project; and a Project Completion Report has been submitted and processed in the Cash and Management Information System (§ 92.502) as prescribed by HUD. For tenant-based rental assistance, the final drawdown has been disbursed for the project and the final payment certification has been submitted and processed in the Cash and Management Information System as prescribed by HUD. Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Indian Housing Authority. @Reconstruction means the rebuilding, on the same lot, of housing standing on a site at the time of project commitment. The number of housing units on the lot maynot be decreased or increased as part of a reconstruction project, but the number of rooms per unit may be increased or decreased. The reconstructed housing must be substantially similar (i.e., single- or multi- family housing) to the original housing. Reconstruction also includes replacing an existing substandard unit of manufactured housing with a new or standard unit of manufactured housing. Reconstruction is rehabilitation for purposes of this part. Secretary means the Secretary of Housing and Urban Development. Single parent means an individual who (1) Is unmarried or legally separated from a spouse; and (2) (i) Has one or more minor children for whom the individual has custody or joint custody; or (ii) Is pregnant. 'Single room occupancy (SRO) housing means housing (consisting of single room dwelling units) that is the primary residence of its occupant or occupants. The unit must contain —. either food preparation or sanitary facilities (and may contain both) if the project consists of new construction, conversion of non-residential space, or reconstruction. For acquisition or rehabilitation of an existing residential structure or hotel, neither food preparation nor sanitary facilities are required to be in the unit. If the units do not contain sanitary facilities, the building must contain sanitary facilities that are shared by tenants. SRO does not include facilities for students. #State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive officer to act on behalf of the State with regard to the provisions of this part. State recipient. See § 92.201(b)(2). Subrecipient means a public agency or nonprofit organization selected by the participating jurisdiction to administer all or a portion of the participating jurisdiction's HOME program. A public agency or nonprofit organization that receives HOME funds solely as a developer or owner of housing is not a subrecipient. The participating jurisdiction's selection of a subrecipient is not subject to the procurement procedures and requirements. 16 - 1L, Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Substantial rehabilitation means the rehabilitation of residential property at an average • cost for the project in excess of $25,000 per dwelling unit. *Tenant-based rental assistance is a form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. Tenant-based rental assistance under this part also includes security deposits for rental of dwelling units. *Transitional housing means housing that (1) Is designed to provide housing and appropriate supportive services to persons, including (but not limited to) deinstitutionalized individuals with disabilities, homeless individuals with disabilities, and homeless families with children; and (2) Has as its purpose facilitating the movement of individuals and families to independent living within a time period that is set by the participating jurisdiction or project owner before occupancy. °Unit of general local government means a city, town, township, county, parish, village, or other general purpose political subdivision of a State; the Federal States of Micronesia and Palau, the Marshall Islands, or a general purpose political subdivision thereof; a consortium of such political subdivisions recognized by HUD in accordance with § 92.101; and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to provisions of this part. When a county is an urban county, the urban county is the unit of general local government for purposes of the HOME Investment Partnerships Program. Urban county has the meaning given the term in 570.3 of this title. Very low-income families means low-income families whose annual incomes do not exceed 50 percent of the median family income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. § 92.3 Waivers. Upon determination of good cause, the Secretary may waive any provision of this part not required by statute. Each waiver must be in writing and must be supported by documentation of the pertinent facts and grounds. #§ 92.4 Suspension of requirements for disaster areas. The Secretary may suspend any HOME statutory requirements (except for those related 17 - 1L, Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • to public notice of funding availability, nondiscrimination, fair housing, labor standards, environmental standards, and low-income housing affordability) or regulatory c.. requirements, for HOME funds designated by a recipient to address the damage in an area for which a disaster is declared under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. 1 . "§ 92.5 Expiration of interim rule. This part shall expire and shall not be in effect after June 30, 1996', unless it is published as a final rule or the Department publishes a notice in the FEDERAL REGISTER to extend the effective date. Subpart B -- Allocation Formula - § 92.50 Formula allocation. § 92.51 Establishing list of participating jurisdictions that may use funds for new construction and rental housing production set-aside. § 92.52 Publishing formula allocation, rental housing production set-aside and list of new construction-eligible participating jurisdictions. § 92.50 Formula allocation. (a) Jurisdictions eligible for a formula allocation. HUD will provide allocations of funds in amounts determined by the formula described in this section to (1) Units of general local governments that, as of the end of the previous fiscal year, are metropolitan cities, urban counties, or consortia approved under § 92.101; and (2) States. (b) Amounts available for allocation; State and local share. °The amount of funds that are available for allocation by the formula under this section is equal to the balance of funds remaining after reserving: (1) For grants to Indian tribes, one percent (or such other percentage or amount, as authorized by Congress) of the total funds appropriated; (2) Up to such amounts as may be authorized by law for housing education and organization support and for coordinated Federal support activities; and (3) For allocations to insular areas, an amount that is the greater of $750,000 or 0.2 percent of the total funds appropriated. • 18 h or low family incomes. § 92.3 Waivers. Upon determination of good cause, the Secretary may waive any provision of this part not required by statute. Each waiver must be in writing and must be supported by documentation of the pertinent facts and grounds. #§ 92.4 Suspension of requirements for disaster areas. The Secretary may suspend any HOME statutory requirements (except for those related 17 - 1L, Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • this part, including failure to meet matching contribution requirements; or ir) +(b) The jurisdiction's formula allocation, plus funds provided under 91.102(b), falls r below $750,000 (or below $500,000,in fiscal years in which Congress appropriates less than $1.5 billion for this part) for three consecutive years, below $625,000 (or below $410,000 in fiscal years in which Congress , appropriates less than $1.5 billion for this part) for two consecutive years, or the jurisdiction does not receive a formula allocation in any one year. (c) When HUD revokes a participating jurisdiction's designation as a participating jurisdiction, HUD will reallocate any remaining funds in the jurisdiction's HOME Investment Trust Fund established under § 92.500 in accordance with § 92.451. Subpart D-Program Description § 92.150 Submission of program description and certifications. § 92.151 Review of program description and certifications. § 92.152 Amendments to program description. § 92.150 Submitting of program description and certifications. In order to receive its HOME allocation, a participating jurisdiction must submit a consolidated plan in accordance with 24 CFR part 91. That part includes requirements for the content of the consolidated plan, for the process of developing the consolidated plan, including citizen participation provisions, for the submission date, for HUD approval, and for the amendment process.' § 92.151 Review of program description and certifications. [Removed.]8 § 92.152 Amendments to program description. [Removed.]9 Subpart E-Program Requirements § 92.200 Private-public partnership. § 92.201 Distribution of assistance. § 92.202 Site and neighborhood standards. § 92.203 Income determinations. § 92.204 Applicability of requirements to entities that receive a reallocation of HOME funds, other than participating jurisdictions. ELIGIBLE AND PROHIBITED ACTIVITIES § 92.205 Eligible activities: General. § 92.206 Eligible @project costs. 492.207 Eligible administrative and planning costs. 'A9 Revised in January 5, 1995, Federal Register. 31 . Upon determination of good cause, the Secretary may waive any provision of this part not required by statute. Each waiver must be in writing and must be supported by documentation of the pertinent facts and grounds. #§ 92.4 Suspension of requirements for disaster areas. The Secretary may suspend any HOME statutory requirements (except for those related 17 - 1L, Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 492.208 Eligible CHDO operating and capacity building costs. 492.209 Eligible costs related to tenant-based rental assistance. '192.210 Tenant-based rental assistance: security deposits. § 92.211 Tenant-based rental assistance. § 92.212 REACH: Asset recycling information dissemination. § 92.213 Development of model programs. § 92.214 Prohibited activities. § 92.215 Limitation on jurisdictions under court order. INCOME TARGETING § 92.216 Income targeting: Tenant-based rental assistance and rental units-Initial eligibility determination and reexamination. § 92.217 Income targeting: Homeownership. MATCHING CONTRIBUTION REQUIREMENT § 92.218 Amount of matching contribution. § 92.219 Recognition of matching contribution. § 92.220 Form of matching contribution. § 92.221 Match credit. § 92.222 Reduction of matching contribution requirement. § 92.200 Private-public partnership. Each participating jurisdiction must make all reasonable efforts, consistent with the purposes of this part, to-maximize participation by the private sector, including nonprofit organizations and for-profit entities, in the implementation of the jurisdiction's approved consolidated plan, including participation in the financing, development, rehabilitation and management of affordable housing. Nothing in the previous sentence shall preclude public housing authorities from fully participating in the implementation of a jurisdiction's approved consolidate plan.10 § 92.201 Distribution of assistance. (a) Local. Each participating jurisdiction must, insofar as is feasible, distribute HOME funds geographically within its boundaries and among different categories of housing need, according to the priorities of housing need identified in its approved consolidated plan." (b) State. (1) Each participating State is responsible for distributing HOME funds throughout the State according to the State's assessment of the geographical distribution of 10•" Revised in January 5, 1995, Federal Register. 32 Federal Register. 31 . Upon determination of good cause, the Secretary may waive any provision of this part not required by statute. Each waiver must be in writing and must be supported by documentation of the pertinent facts and grounds. #§ 92.4 Suspension of requirements for disaster areas. The Secretary may suspend any HOME statutory requirements (except for those related 17 - 1L, Public housing agency (PHA) means any State, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • the housing need within the State, as identified in the State's approved consolidated plan. The State must distribute HOME funds to rural areas in amounts that take into account the nonmetropolitan share of the State's total population and objective measures of rural housing need,.such as poverty and substandard housing, as set forth in the State's approved consolidated plan. To the extent the need is within the boundaries of a participating unit of general local government, the State and the unit of general local government shall coordinate activities to address that need.' 12 Revised in January 5, 1995, Federal Register. (2) A State may carry out its own HOME program without active participation of units of general local government or may distribute HOME funds to units of general local government to carry out HOME programs in which both the State and all or some of the units of general local government perform specified program functions. A unit of general local government designated by a State to receive HOME funds from a State is a State recipient. (3) (i) A State that uses State recipients to perform program functions shall ensure that the State recipients use HOME funds in accordance with the requirements of this part and other applicable laws. A State shall include in its written agreement with its State recipients such additional provisions (including provisions permitting the State to withdraw or reduce HOME funds or take other actions based on noncompliance by the State recipient) as may be appropriate to ensure compliance and to enable the State to carry out its responsibilities under this part. (ii) The State shall conduct such reviews and audit of its State recipients as may be necessary or appropriate to determine whether the State recipient has committed the HOME funds in the United States Treasury account as required by § 92.500 and expended the funds in the United States Treasury account as required by § 92.500, and has met the requirements of this part, particularly eligible activities, income targeting, affordability, and matching contribution requirement. § 92.202 Site and neighborhood standards. A participating jurisdiction must administer its HOME program in a manner that provides housing that: (a) Is suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964, the Fair Housing Act, E.O. 11063, and HUD regulations issued pursuant thereto; and (b) Promotes greater choice of housing opportunities. 33 c� _\V1 ) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (c) In carrying out these requirements with respect to new construction, a participating jurisdiction must follow 882.708(c) of the title. § 92.203 Income determinations. 'Whenever a participating jurisdiction makes a determination under this part based on family income or adjusted family income, it must use the definitions of annual income, adjusted income, monthly income, and monthly adjusted income, as those terms are defined in part 813 of this title, except when determining the income of a homeowner for an owner-occupied rehabilitation project, the equity in the homeowner's principal residence is excluded from "Net Family Assets." § 92.204 Applicability of requirements to entities that receive a reallocation of HOME funds, other than participating jurisdictions. (a) Jurisdictions that are not participating jurisdictions and community housing development organizations receiving competitive reallocations from HUD are subject to the same requirements in subpart E (Program Requirements), subpart F (Project Requirements), subpart K (Program Administration), and subpart L (Performance Reviews and Sanctions) of this part as participating jurisdictions, except for the following. @(1) Subpart E (Program Requirements) of this part: The matching contribution requirements in § 92.218 through § 92.221 do not apply. (2) Subpart K (Program Administration) of this part: (i) Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will establish a HOME account in the United States Treasury and the HOME funds must be used for approved activities. A local account . must be established for repayment, interest and other return of investment of HOME funds. HUD will recapture HOME funds in the HOME Treasury account by the amount of: '(A) Any funds that are not committed within 24 months after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; '(B) Any funds that are not expended within five years after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; and (C) Any penalties assessed by HUD under § 92.552. (ii) Section 92.502 (Cash and Management Information System) applies, 34 ance with the applicable provisions of title VI of the Civil Rights Act of 1964, the Fair Housing Act, E.O. 11063, and HUD regulations issued pursuant thereto; and (b) Promotes greater choice of housing opportunities. 33 c� _\V1 ) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • except that references to the HOME Investment Trust Fund mean HOME • account and the reference to 24 CFR part 58 does not apply. In addition, § 92.502(c) does not apply, and compliance with Treasury Circular No. 1075 (31 CFR part 205) is required. (iii) Section 92.503 (Repayment of investment) applies, except that repayments, interest and other return on investment of HOME funds may be retained provided the funds are used for eligible activities in accordance with the requirements of this section. (3) Section 92.504 (Participating jurisdiction responsibilities; written agreements; monitoring) applies, except that the written agreement must ensure compliance with the requirements in this section. (4) Section 92.508 (Recordkeeping) applies with respect to the records that relate to the requirements of this section. (5) Section 92.509 (Performance reports) applies, except that a performance report is required only after completion of the approved projects. (b) The requirements in subpart H (Other Federal Requirements) of this part apply, except that jurisdictions and community housing development organizations receiving reallocations from HUD must comply with affirmative marketing requirements, the flood insurance requirements labor requirements, and lead-based paint requirements, applicable to participating jurisdictions. (c) Subpart B (Allocation Formula), subpart C (Participating Jurisdiction: Designation and Revocation of Designation-Consortia), and subpart G (Community Housing Development Organizations) of this part do not apply." Revised in January 5, 1995, Federal Register. ELIGIBLE AND PROHIBITED ACTIVITIES § 92.205 Eligible activities: General. (a) Eligible activities. #(1) HOME funds may be used by a participating jurisdiction to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition (including assistance to homebuyers), new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations, to provide tenant-based rental assistance, including 35 C J ith the applicable provisions of title VI of the Civil Rights Act of 1964, the Fair Housing Act, E.O. 11063, and HUD regulations issued pursuant thereto; and (b) Promotes greater choice of housing opportunities. 33 c� _\V1 ) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • security deposits; to provide payment of reasonable administrative and planning costs; and to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing, and includes permanent housing for disabled homeless persons, and single-room occupancy housing. The specific eligible costs for these activities are set forth in 92.206 through 92.209. `(2) Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide affordable housing. (3) Housing that has received an initial certificate of occupancy or equivalent document within a one-year period before a participating jurisdiction commits new construction for purposes of this part. HOME funds to the project is P P (4) Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case, the project is new construction for purposes of this part. '(b) Forms of assistance. (1) A participating jurisdiction may invest HOME funds as equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or other forms of assistance that HUD determines to be consistent with the purposes of this part. Each participating jurisdiction has the right to establish the terms of assistance, subject to the requirements of this part. (2) A participating jurisdiction may invest HOME funds to guarantee loans made by lenders and, if required, the participating jurisdiction may establish a loan guarantee account with HOME funds. The amount of the loan guarantee account must be based on a reasonable estimate of the default rate on the guaranteed loans, but under no circumstances may the amount on deposit exceed 20 percent of the total outstanding principal amount guaranteed; except that the account may include a reasonable minimum balance. While loan funds guaranteed with HOME funds are subject to all HOME requirements, funds which are used to repay the guaranteed loans are not. '(c) Minimum amount of assistance. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 times the number of HOME-assisted units in the project. (d) Termination before completion. If HOME funds are spent on a project that is terminated before completion, the funds must be repaid to the participating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • and § 92.301(b)(3) for project-specific assistance to community housing development • organizations). § 92.206 Eligible @project costs. HOME funds may be used to pay the following eligible costs: (a) Development hard costs. The actual cost of constructing or rehabilitating housing. These costs include the following: (1) For new construction, costs to meet the applicable new construction standards of the participating jurisdiction and the Model Energy Code referred to in § 92.251; `°'(2) For rehabilitation, costs: (i) To meet the applicable rehabilitation standards of the participating jurisdiction or correct substandard conditions to, minimally, the housing quality standards at § 882.109 of this title; (ii) To make essential improvements, including energy-related repairs or improvements, improvements necessary to permit use by handicapped persons, and the abatement of lead-based paint hazards, as required by § 92.355, and to repair or replace major housing systems in danger of failure; and (iii) To refinance existing debt secured by a single-family owner-occupied unit when loaning HOME funds to rehabilitate the unit, if the overall housing costs of the borrower will be reduced and made more affordable. @(3) For both new construction and rehabilitation, costs: (i) To demolish existing structures; (ii) To make utility connections including off-site connections from the property line to the adjacent street; and (iii) To make improvements to the project site that are in keeping with improvements of surrounding, standard projects. Site improvements may include on-site roads and sewer and water lines necessary to the development of the project. The project site is the property, owned by the project owner, upon which the project is located. #(b) Acquisition costs. Costs of acquiring improved or unimproved real property, including acquisition by homebuyers. 37 411 aranteed; except that the account may include a reasonable minimum balance. While loan funds guaranteed with HOME funds are subject to all HOME requirements, funds which are used to repay the guaranteed loans are not. '(c) Minimum amount of assistance. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 times the number of HOME-assisted units in the project. (d) Termination before completion. If HOME funds are spent on a project that is terminated before completion, the funds must be repaid to the participating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • @(c) Related soft costs. Other reasonable and necessary costs incurred by the owner or participating jurisdiction and associated with the financing, or development (or both) of new construction, rehabilitation or acquisition of housing assisted t, with HOME funds. These costs, include, but are not limited to: (1) Architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; (2) Costs to process and settle the financing for a project, such as private lender origination fees, credit reports, fees for title evidence, fees for recordation and filing of legal documents, building permits, attorneys, fees, private appraisal fees and fees for an independent cost estimate, builders or developers fees; (3) Costs of a project audit that the participating jurisdiction may require with respect to the development of the project; and (4) Costs to provide information services such as affirmative marketing and fair housing information to prospective homeowners and tenants as required by § 92.351. 4(5) For new construction or substantial rehabilitation, the cost of funding an initial operating deficit reserve, which is a reserve to meet any shortfall in project income during the period of project rent-up (not to exceed 18 months) and which may only be used to pay project operating expenses, reserve for replacement payments, and debt service. Any HOME funds placed in an operating deficit reserve that remain unexpended when the reserve terminates must be returned to the participating jurisdiction's local HOME Investment Trust Fund account. 4(6) Staff and overhead costs directly related to carrying out the project, such as work specifications preparation, loan processing inspections, and other services related to assisting potential owners, tenants, and homebuyers, e.g., housing counseling, may be charged to project costs only if the project is funded and the individual becomes the owner or tenant of the HOME- assisted project. For multi-unit projects, such costs must be allocated among HOME-assisted units in a reasonable manner and documented. ((7) For both new construction and rehabilitation, costs for the payment of impact fees that are charged for all projects within a jurisdiction. `°'(d) Community housing development organization (CHDO) project specific assistance under § 92.301. 4(e) Relocation costs. The cost of relocation payments and other relocation 38 L 1 ating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • assistance to persons displaced by the project are eligible costs. (1) Relocation payments include replacement housing payments, payments for moving expenses, and payments for reasonable out-of-pocket costs incurred in the temporary relocation of persons. (2) Other relocation assistance means staff and overhead costs directly related to providing advisory and other relocation services to persons displaced by the project, including timely written notices to occupants, referrals to comparable and suitable replacement property, property inspections, counseling, and other assistance necessary to minimize hardship. 492.207 Eligible adminstrative and planning costs. A participating jurisdiction may expend, for payment of reasonable administrative and planning costs of the HOME program, an amount of HOME funds that is not more than ten percent of the fiscal year HOME basic formula allocation plus any funds received in accordance with § 92.102(b) to meet or exceed participation threshold requirements that fiscal year. A State that transfers any HOME funds in accordance with § 92.102(b) must exclude these funds in calculating the amount it may expend for administrative and planning costs. A participating jurisdiction may also use up to ten percent of any return of the HOME investment, as defined in § 92.503, calculated at the time of deposit in its local HOME account, for administrative and planning costs. Reasonable administrative and planning costs includes: (a) General management, oversight and coordination. Reasonable costs of overall program management, coordination, monitoring, and evaluation. Such costs include, but are not limited to, necessary expenditures for the following: (1) Salaries, wages, and related costs of the participating jurisdiction's staff. In charging costs to this category the participating jurisdiction may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The participating jurisdiction may use only one of these methods. Program administration includes the following types of assignments: (i) Developing systems and schedules for ensuring compliance with program requirements; (ii) Developing interagency agreements and agreements with entities receiving HOME funds; (iii) Monitoring HOME-assisted housing for progress and compliance with 39 ' V L 1 ating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • program requirements; (iv) Developing agreements and monitoring housing not assisted with HOME funds that the participating jurisdiction designates as a matching contribution in accordance with § 92.219(b) for compliance with applicable program requirements; • (v) Preparing reports and other documents related to the program for submission to HUD; (vi) Coordinating the resolution of audit and monitoring findings; (vii) Evaluating program results against stated objectives; and (viii) Managing or supervising persons whose primary responsibilities with regard to the program include such assignments as those described in paragraph (1)(i)(A) through (G) of this section; (2) Travel costs incurred for official business in carrying out the program; (3) Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services; and (4) Other costs for goods and services required for administration of the program, including-such goods and services as rental or purchase of equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space. (5) Costs of administering tenant-based rental assistance programs. (b) Staff and overhead. Staff and overhead costs directly related to carrying out the project, such as work specifications preparation, loan processing inspections, and other services related to assisting potential owners, tenants, and homebuyers (e.g., housing counseling). Staff and overhead costs directly related to providing advisory and other relocation services to persons displaced by the project, including timely written notices to occupants, referrals to comparable and suitable replacement property, property inspections, counseling, and other assistance necessary to minimize hardship. These costs may be charged as administrative costs or as project costs under § 92.206(c)(6) and (e)(2), at the discretion of the participating' jurisdiction. (c) Public information. The provision of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of projects being assisted with HOME funds. 40 equirements; (ii) Developing interagency agreements and agreements with entities receiving HOME funds; (iii) Monitoring HOME-assisted housing for progress and compliance with 39 ' V L 1 ating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (d) Fair housing. Activities that affirmatively further fair housing: (e) Indirect Costs. Indirect costs may be charged to the HOME program under a cost allocation plan prepared in accordance with OMB Circulars A-87 or A-122 as applicable. (f) Submission of the consolidated plan. Preparation of the consolidated plan required under 24 CFR Part 91. Preparation includes the costs of public hearings, consultations, and publication." 14 Revised in January 5, 1995, Federal Register. "§ 92.208 Eligible CHDO operating expense and capacity building costs. (a) Up to 5 percent of a participating jurisdiction's fiscal year HOME allocation may be used for the operating expenses of community housing development organizations (CHD0s). These funds may not be used to pay operating costs incurred by a CHDO acting as a subrecipient or contractor under the HOME Program. The requirements and limitations on the receipt of these funds by CHDOs are set forth in § 92.300(e) and (f). (b) HOME funds may be used for capacity building costs under § 92.300(b). `°'92.209 Eligible costs related to tenant-based rental assistance. Eligible costs are the rental assistance and security deposit payments made to provide tenant-based rental assistance for a family. Administration of tenant-based rental assistance is eligible only under general management oversight and coordination at § 92.207(a). § 92.210 +Tenant-based rental assistance: security deposits. +(a) A participating jurisdiction may use HOME funds provided for tenant-based rental assistance to provide loans or grants to very low- and low-income families for security deposits for rental of dwelling units whether or not the participating jurisdiction provides any other tenant-based rental assistance under § 92.211. +(b) The relevant state or local definition of "security deposit" in the jurisdiction where the unit is located is applicable for the purposes of this part, except that the amount of HOME funds that may be provided for a security deposit may not exceed the equivalent of two month's rent for the unit. +(c) Only the prospective tenant may apply for HOME security deposit assistance, although the participating jurisdiction may pay the funds directly to the tenant or to the landlord. 41 nizations participating in the planning, implementation, or assessment of projects being assisted with HOME funds. 40 equirements; (ii) Developing interagency agreements and agreements with entities receiving HOME funds; (iii) Monitoring HOME-assisted housing for progress and compliance with 39 ' V L 1 ating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) 36 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • +(d) The lease between a tenant and an owner of rental housing for which HOME security deposit assistance is provided must comply with the requirements of �. § 92.253 (a) and (b). +(e) HOME funds for security deposits may be provided as a grant or as a loan. If they are provided as a loan, the provisions at § 92.503(b) on repayment of HOME investment apply. '(f) The provisions at § 92.211 (a), (b), (c), (d), (f), (g) and (i), applicable to tenant-based rental assistance, are applicable to HOME security deposit assistance., '§ 92.211 Tenant-based rental assistance. (a) General. A participating jurisdiction may use HOME funds for tenant-based rental assistance only if the participating jurisdiction makes the certification about inclusion of this type of assistance in its consolidated plan in accordance with §§ 91.225(d)(1), 91.325(d)(1), or 91.425(a)(2)(i) of this title, and specifies local market conditions that lead to the choice of this option. (b) Tenant selection. A participating jurisdiction may use HOME funds for tenant- based rental assistance in the following manner: (1) Federal preferences. The participating jurisdiction selects families in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to preference rules established under section 6(c)(4)(A) of the Housing Act of 1937 (42 U.S.C. 1437 et seq.). Selection policies and criteria meet the "reasonably related" requirement if at least 50 percent of the families assisted qualify, or would qualify in the near future without tenant-based rental assistance, for one of the three Federal preferences under section 6(c)(4)(A) of the Housing Act of 1937. These are families that occupy substandard housing (including families that are homeless or living in a shelter for homeless families); families that are paying more than 50 percent of (gross) family income for rent; or families that are involuntarily displaced. [For FY 1995 only, a Federal preference is also given to families that include one or more adult members who are employed.] (2) Local Preferences for Individuals with Special Needs. (i) The participating jurisdiction may establish a preference for individuals with special needs. The participating jurisdiction may offer,,in conjunction with a tenant-based rental assistance program, particular types of services that may be most appropriate for persons with a particular disability. Generally, tenant-based rental assistance and the related services should be 42 1 of low-income housing. The term includes any 15 director may vote thereat to authorize any such contract or transaction, with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • s • made available to all persons with disabilities who can benefit from such services. (ii) The participating jurisdiction may also provide a preference for a specific category of individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) if the specific category is identified in the participating jurisdiction's housing strategy or consolidated plan as having unmet need and the preference is needed to narrow the gap in benefits and services received by such persons. (iii) Preferences cannot be administered in a manner that limits the opportunities of persons in a protected class. For example, a participating jurisdiction may not determine that persons given a preference under the program are therefore prohibited from applying for or participating in other programs or forms of assistance. (iv) To the extent that a participating jurisdiction is operating a tenant-based rental assistance program targeted exclusively to individuals with disabilities or to a specific category of individuals with disabilities, at least 50% of the individuals must qualify or would qualify in the near future for one of the three Federal preferences as described in (b)(1) of this section. (4) Existing tenants in the HOME-assisted projects. A participating jurisdiction may select low-income families currently residing in the units that are designated for rehabilitation or acquisition under the participating jurisdiction's HOME program without requiring that the family meet the written tenant selection policies and criteria. Families so selected may use the tenant-based assistance in the rehabilitated or acquired unit or in other qualified housing. (c) Portability of assistance. A participating jurisdiction may require the family to use the tenant-based assistance within the participating jurisdiction's boundaries or may permit the family to use the assistance outside its boundaries. (d) Program operation. A tenant-based rental assistance program must be operated consistently with the requirements of this section and § 92.210, if applicable. The participating jurisdiction may operate the program itself, or may contract with a PHA or other entity with the capacity to operate a rental assistance program. The tenant-based rental assistance may be provided through an assistance contract to an owner that leases a unit to an assisted family or directly to the family. (e) Term of rental assistance contract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the 43 with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • contract must terminate on termination of the lease. For a rental assistance contract between a participating jurisdiction and a family, the term of the contract need not end on termination of the lease, but no payments may be made after termination of the lease until a family enters into a new lease. (f) Rent reasonableness. The participating jurisdiction must disapprove a lease if the rent is not reasonable, based on rents that are charged for comparable unassisted rental units. (g) Lease requirements. The lease must comply with the requirements in § 92.253 (a) and (b). (h) Maximum subsidy. (1) The amount of the monthly assistance that a participating jurisdiction may pay to, or on behalf of, a family may not exceed the difference between a rent standard for the unit size established by the participating jurisdiction and 30 percent of the family's monthly adjusted income. (2) The participating jurisdiction must establish a minimum tenant contribution to rent. (3) The participating jurisdiction's rent standard for a unit size must be based on: (i) Local market conditions; or (ii) May not be less, for each unit size, than 80 percent of the published Section 8 Existing Housing fair market rent (in effect when the payment standard amount is adopted) nor more than the fair market rent or HUD- , approved community-wide exception rent (in effect when the participating jurisdiction adopts its rent standard amount). (Community-wide exception rents are maximum gross rents approved by HUD for the Rental Certificate.Program under 882.106(a)(3) of this title for a designated municipality, county, or similar locality, which apply to the whole PHA jurisdiction.) A participating jurisdiction may approve on a unit-by-unit basis a subsidy based on a rent standard that exceeds the applicable fair market rent by up to 10 percent for 20 percent of units assisted. (i) Housing quality standards. Housing occupied by a family receiving tenant-based assistance under this section must meet the performance requirements set forth in 882.109 of this title. In addition, the housing must meet the acceptability criteria set forth in 882.109 of this title, except for such variations as are proposed by the participating jurisdiction and approved by HUD. Local climatic or geological conditions or local.codes are examples which may justify such variations. 44 ntract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the 43 with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (j) Use of Section 8 assistance. In any case where assistance under Section 8 of the United States Housing Act of 1937 becomes available to a participating jurisdiction, recipients of tenant-based rental assistance under this part will qualify for tenant selection preferences to the same extent as when they received the tenant-based rental assistance under this part. § 92.212 REACH: Asset recycling information dissemination. (a) General. HUD will make available upon request by any participating jurisdiction a list of eligible properties that are located within the jurisdiction and that are owned or controlled by HUD to facilitate their purchase, development, or rehabilitation with HOME funds. (b) Eligible properties. An eligible property under this section must: (1) Be an unoccupied single-family or multifamily dwelling, such that acquisition and rehabilitation of the dwelling would not result in the displacement of any residents of the dwelling; and (2) Have an appraised value that does not exceed: (i) In the case of a 1- to 4-family dwelling, the mortgage limit for the type of single family housing (1- to 4-family residence, condominium unit, combination manufactured home and lot, or manufactured home lot) for the area (including any applicable high-cost mortgage limit published by HUD in the Federal Register) under HUD's single family insuring authority under the National Housing Act. For a cooperative unit, the appraised value for a cooperative share may not exceed the balance remaining after subtracting from the 1-family mortgage limit an amount equal to the blanket mortgage covering the cooperative development which is attributable to this cooperative unit: or (ii) In the case of a dwelling with more than 4 units, the applicable maximum dollar amount limitation, as determined under 221.514 (b)(1) and (c) of this title that would apply to a mortgage insured under section 221(d)(3)(ii) of the National Housing Act for elevator-type structures, involving a nonprofit mortgagor. § 92.213 Development of model programs. HUD will develop and make available from time to time model programs that have been developed in cooperation with participating jurisdictions, government-sponsored mortgage finance corporations, nonprofit organizations, the private sector, and other appropriate parties and that are designed to carry out the purposes of this part. 45 cal.codes are examples which may justify such variations. 44 ntract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the 43 with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 1 .§ 92.214 Prohibited activities. • (a) HOME funds may not be used to - (-- - (1) Provide a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, or operating subsidies; (2) Provide tenant-based rental assistance for the special purposes of the existing section 8 program, including the activities specified in § 791.403(b)(1) of this title, or preventing displacement from projects assisted with rental rehabilitation grants under part 511 of this title; (3) Provide nonfederal matching contributions required under any other federal program; (4) Provide assistance authorized under part 965 (PHA-Owned or Leased Projects-- Maintenance and Operation) of this title; (5) Carry out activities authorized under part 968 (Public Housing Modernization) of this title; (6) Provide assistance to eligible low-income housing under part 248 (Prepayment of Low Income Housing Mortgages) of this title; #(7) Provide assistance (other than tenant-based rental assistance or assistance to a homebuyer to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the participating jurisdiction under 92.502 or 92.504. However, additional HOME funds may be committed to a project up to one year after project completion (see 92.502), but the amount of HOME funds in the project may not exceed the maximum per-unit subsidy amount established under 92.250. @(8) Pay for the acquisition of property owned by the participating jurisdiction, except for property acquired by the participating jurisdiction with HOME funds, or property acquired in anticipation of carrying out a HOME project. (b) Participating jurisdictions may not charge monitoring, servicing and origination fees • in HOME-assisted projects. However, participating jurisdictions may charge nominal application fees (although these fees are not an eligible HOME cost) to project owners to discourage frivolous applications. § 92.215 Limitation on jurisdictions under court order. (a) HOME funds may not be used to carry out housing remedies or to pay fines, 46 t are designed to carry out the purposes of this part. 45 cal.codes are examples which may justify such variations. 44 ntract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the 43 with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • . penalties, or costs associated with an action in which a participating jurisdiction has been adjudicated, by a Federal, State, or local court, to be in violation of title VI of . the Civil Rights Act of 1964, the Fair Housing Act, or any other Federal, State, or local law promoting fair housing or prohibiting discrimination. (b) HOME funds may be used in connection with a settlement that has been entered into in any case where claims of violations described in paragraph (a) of this section have been asserted against a participating jurisdiction only to carry out housing remedies with eligible activities. INCOME TARGETING § 92.216 Income targeting: Tenant-based rental assistance and rental units-Initial eligibility determination and reexamination. (a) Each participating jurisdiction must invest HOME funds made available during a fiscal year so that, with respect to tenant-based rental assistance and rental units: #(1) Not less than 90 percent of: #(i) The families receiving such rental assistance are families whose annual incomes do not exceed 60 percent of the median family income for the area, as determined and made available by HUD with adjustments for smaller and larger families (except that HUD may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later; or #(ii) The dwelling units assisted with such funds are occupied by families having such incomes; and #(2) The remainder of: #(i) The families receiving such rental assistance are households that qualify as low-income families (other than families described in paragraph (a)(1) of this section) at the time of occupancy or at the time funds are invested, whichever is later; or #(ii) The dwelling units assisted with such funds are occupied by such households. (b) The participating jurisdiction must determine an applicant's income eligibility and eligibility as a family at the time the applicant receives assistance, and must 47 fines, 46 t are designed to carry out the purposes of this part. 45 cal.codes are examples which may justify such variations. 44 ntract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the 43 with like force and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • reexamine family income and family size and composition, at least annually. § 92.217 Income targeting: Homeownership. Each participating jurisdiction must invest HOME funds made available during a fiscal year so that with respect to homeownership assistance, 100 percent of these funds are invested with respect to dwelling units that are occupied by households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. MATCHING CONTRIBUTION REQUIREMENT`S § 92.218 Amount of matching contribution. #(a) Each participating jurisdiction must make contributions to housing that qualifies as affordable housing under the HOME program, throughout a fiscal year. The contributions must total not less than 25 percent of the funds drawn from the jurisdiction's HOME Investment Trust Fund Treasury account in that fiscal year. (b) Amounts made available under § 92.102(b)(2) from the resources of a State (other than a transfer of the State's formula allocation), the local participating jurisdiction, or both, to enable the local participating jurisdiction to meet the participation threshold amount are not required to be matched and do not constitute matching contributions. @(c) HOME funds used for administrative and planning costs (pursuant to § 92.207), CHDO operating expenses (pursuant to § 92.208) and capacity building (pursuant to § 92.300(b)) of community housing development organizations are not required to be matched. (d) All eligible activities carried out with respect to a project carry with them the matching contribution requirements associated with the project designation. A project consisting of one structure which combines new construction and rehabilitation activities (e.g., adding one or more units outside of the existing walls of a structure) is designated as a new construction project, irrespective of costs attributable to each activity. For purposes of project designation, projects involving the following activities are designated as rehabilitation projects: Reconfiguring a 15 The Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992, Public Law 101-139, 105 Stat. 736, approved October 28, 1991 (FY 1992 Appropriations Act) contained a proviso, concerning amounts appropriated for the HOME Program for Fiscal Year 1992, which prohibits the Department from requiring any contributions by or in behalf of a participating jurisdiction, notwithstanding section 220 of the HOME Investment Partnership Act. Accordingly, participating jurisdictions are not required to comply with the matching contributions requirements in § 92.218 through § 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • structure to reduce the number of total units in order to increase the number of large family units; adding one or more rooms (e.g., bedroom or bathroom) outside of the existing walls for purposes of meeting occupancy or code standards; adding one or more units within the existing structure, such as in an existing basement. w(e) Contributions that have been or will be counted towards satisfying a matching s requirement of another Federal grant or award may not count toward satisfying the matching contribution requirement for the HOME program. '(f) HOME funds made available as project-specific assistance to community housing development organizations pursuant to § 92.301 are subject to matching requirements. HOME funds used for such assistance for which repayment is waived under the provisions of § 92.301(a)(3) or § 92.301(b)(3) are not required to be matched. § 92.219 Recognition of matching contribution. @(a) Match contribution to HOME-assisted housing. A contribution is recognized as a matching contribution if: (1) It is made with respect to a tenant who is assisted with HOME funds; or (2) It is made with respect to HOME-assisted housing; or (3) It is made with respect to any portion of a project (including a mixed-use project under § 92.256) not less than 50 percent of the dwelling units of which are HOME-assisted. �'(b) Match contribution to affordable housing that is not HOME-assisted. The following requirements apply for recognition of matching contributions made to affordable housing that is not HOME-assisted: (1) For tenant-based rental assistance (TBRA) that is not HOME-assisted: (i) The contribution must be made with respect to a tenant who is assisted with tenant-based rental assistance that meets the requirements of §§ 92.203 (income determinations), 92.210 (security deposits), 92.211 (TBRA, except for 92.211(c), term of rental assistance contract), and 92.253(a) and (b) (tenant protections); and (ii) The participating jurisdiction must demonstrate in writing that such assistance meets the provisions of §§ 92.203, 92.210, 92.211, and 92.253(a) and (b). 49 A 4 8, 1991 (FY 1992 Appropriations Act) contained a proviso, concerning amounts appropriated for the HOME Program for Fiscal Year 1992, which prohibits the Department from requiring any contributions by or in behalf of a participating jurisdiction, notwithstanding section 220 of the HOME Investment Partnership Act. Accordingly, participating jurisdictions are not required to comply with the matching contributions requirements in § 92.218 through § 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (2) For affordable housing projects that are not HOME-assisted: (i) The contribution must be made with respect to housing that qualifies ( as affordable housing under § 92.252 or § 92.254. (ii) The participating jurisdiction or its instrumentality must execute, with the owner of the housing (or, if the participating jurisdiction is the owner, with the manager or developer), a written agreement that imposes and enumerates all of the affordability requirements from § 92.252 and § 92.253(a) and (b) (tenant protections), or § 92.254, whichever art applicable, the property standards requirements of § 92.251, and income determinations made in accordance with § 92.203. This written agreement must be executed before any match contributions may be made. (iii) A participating jurisdiction must establish a procedure to monitor these HOME match-eligible projects to ensure continued compliance with the requirements of §§ 92.203 (income determinations), 92.252(rental), 92.253(a) and (b) (tenant protections) and 92.254 (ownership). No other HOME requirements apply. (iv) The match contribution may be in any eligible form of match except those in §§ 92.220(a)(2) and (4). (v) Match contributions to mixed-use or mixed-income projects that contain affordable housing units will be recognized only if the contribution is made to the project's affordable housing units. @(c) In addition to the requirements of paragraphs (a) and (b) of this section, a cash contribution is recognized as a matching contribution only if it is used for costs eligible under §§ 92.206 or 92.209, or for the following costs (which are not eligible costs for HOME funds): the cost of removing and relocating an ECHO housing unit to accommodate an eligible tenant, a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, operating subsidies, or costs relating to the portion of a mixed-income or mixed-use HOME-assisted project not related to the affordable housing units. § 92.220 Form of matching contribution. (a) Eligible forms. Matching contributions must be made from nonfederal resources and may be in the form of one or more of the following: @(1) Cash contributions from nonfederal sources. Except for contributions made to affordable housing that is not assisted with HOME funds and bond proceeds to which the provisions of § 92.220(a)(5) are applicable, to 50 quired to comply with the matching contributions requirements in § 92.218 through § 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • be a cash contribution, funds must be contributed permanently to the HOME program, regardless of the form of investment the jurisdiction provides to a project. Therefore all repayment, interest, or other return on investment of the contribution must be deposited in the local account of the participating jurisdiction's HOME Investment Trust Fund to be used for eligible HOME activities in accordance with the requirements of this part. A cash contribution to affordable housing that is not assisted with HOME funds must be contributed permanently to the project. Repayments of matching contributions in affordable housing projects, as defined in § 92.219(b), that are not HOME-assisted, must be made to the local account of the participating jurisdiction's HOME Investment Trust Fund to get match credit for the full loan amount. '(i) A cash contribution may be made by the participating jurisdiction, non-Federal public entities, private entities, or individuals. A cash contribution may be made from program income (as defined by § 85.25(b) of this title) from a Federal grant earned after the end of the award period if no Federal requirements govern the disposition of the program income. Included in this category are repayments from closed out grants under the Urban Development Action Grant Program (24 CFR Part 570, subpart G) and the Housing Development Grant Program (24 CFR Part 850), and from the Rental Rehabilitation Grant Program (24 CFR part 511) after all fiscal year Rental Rehabilitation grants have been closed out. (ii) The grant equivalent of a below-market interest rate loan to the project that is not repayable to the participating jurisdiction's HOME Investment Trust Fund may be counted as a cash contribution. '(A) If the loan is made from funds borrowed by a jurisdiction or public agency or corporation (including proceeds from general obligation debt), the contribution is the present discounted cash value of the difference between the payments to be made on the borrowed funds and payments to be received from the loan to the project based on a discount rate equal to the interest rate on the borrowed funds. (B) If the loan is made from funds other than funds borrowed by a jurisdiction or public agency or corporation, the contribution is the present discounted cash value of the yield foregone. In determining the yield foregone, the participating jurisdiction must use as a measure of a market rate yield one of the following, as appropriate: 51 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (1) With respect to one- to four-unit housing financed with a fixed interest rate mortgage, a rate equal to the �- 10-year Treasury note rate plus 200 basis points;. (2) With respect to one- to four-unit housing financed with an adjustable interest rate mortgage, a rate equal to the one-year Treasury bill rate plus 250 basis points; or (3) With respect to a multifamily project, a rate equal to the 10-year Treasury note rate plus 300 basis points. '(2) Forbearance of fees. '(i) State and local taxes, charges or fees. The value, based on customary and reasonable means for establishing value, of State or local taxes, fees, or other charges that are normally and customarily imposed or charged by a State or local government on all transactions or projects in the conduct of State or local government operations but are waived, foregone, or deferred (including State low-income housing tax credits) in a manner that achieves affordability of housing assisted with HOME funds. Fees or charges that are associated with the HOME Program only (rather than normally and customarily imposed or charged on all transactions or projects) are not eligible forms of matching contributions. The amount of any real estate taxes may be based on post-improvement property value, using customary and reasonable means of establishing value. For taxes, fees, or charges that are given for future years, the value is the present discounted cash value, based on a rate equal to the rate for the Treasury security with a maturity closest Ito the number of years for which the taxes, fees, or charges are waived, foregone, or deferred. '(ii) Other charges or fees. Amount of fees or charges normally and customarily imposed or charged by public or private institutions associated with the transfer or development of real estate but are waived or foregone, in whole or in part, in a manner that achieves affordability of housing assisted with HOME funds. Fees or charges that are associated with the HOME Program only (rather than normally and customarily imposed or charged on all transactions or projects) are not eligible forms of matching contributions. 4(3) The value, before the HOME assistance is provided and minus any debt burden, lien, or other encumbrance, of donated land or other real property. (i) Property not acquired with federal resources is a contribution in the amount of 100% of the value. 52 C use as a measure of a market rate yield one of the following, as appropriate: 51 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (ii) Property that is acquired with federal assistance must be acquired specifically for HOME-assisted housing or for affordable housing that will be counted as match pursuant to §92.219(b)(2). Such property is a contribution in the amount of the difference between the acquisition cost and the appraised value at the time of acquisition with the Federal assistance, provided that the property is acquired by the HOME project owner (or owner of the affordable housing that will be counted as match) with the Federal assistance. It also may be given to the HOME project owner (or owner of the affordable housing that will be counted as match) by the entity acquiring the property with Federal assistance or sold to the HOME project owner (or owner of the affordable housing that will be counted as match) at a price equal to or less than the amount of the Federal assistance used to acquire the property. The acquisition cost paid with the Federal assistance must be demonstrably below the appraised value and must be acknowledged by the seller as a donation to affordable housing at the time of the acquisition with the Federal assistance. (iii) Property must be appraised in conformance with established and generally recognized appraisal practice and procedures in common use by professional appraisers. Opinions of value must be based on the best available data properly analyzed and interpreted. The appraisal of land and structures must be performed by an independent, certified appraiser. (4) The cost of investment, not made with federal resources, in on-site and off-site infrastructure that the participating jurisdiction documents are directly required for affordable housing assisted with HOME 1funds. m nths before The infrastructure HOME funds are investment must have been completed no earlier than committed to such affordable housing. '(5) Proceeds from multi-family and single family affordable housing project bond financing validly issued by a State or local government, or an agency, instrumentality, or political subdivision of a State and repayable with revenues from the affordable housing project financed, as follows: (i) Fifty percent of the loan amount made from bond proceeds to a multi- family affordable housing project owner may qualify as match. (ii) Twenty-five percent of the loan amount from bond proceeds made to a single-family affordable housing project owner may qualify as match. (iii) Loans made from bond proceeds may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • jurisdiction's total annual match contribution may be carried over to subsequent fiscal years as excess match, but may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution in any one year. +(6) The reasonable value of site-preparation and construction materials, not acquired with federal resources, and any donated or voluntary labor (see § 92.354(b)) in connection with the the site-preparation for, or construction or rehabilitation of, affordable housing. +(i) The value of site-preparation and construction materials is to be determined in accordance with the participating jurisdiction's cost estimate procedures. +(ii) A single rate will be applicable for determining the value of donated or voluntary labor.16 16 Revised in January 5, 1995, Federal Register. (b) Ineligible forms. The following are examples of forms of contributions that do not meet the requirements of paragraph (a) of this section and do not count toward meeting a participating jurisdiction's matching contribution requirement: (1) Contributions made with or derived from federal resources or funds, regardless of when the federal resources or funds were received or expended. CDBG funds (defined in 570.3 of this title) are federal funds for this purpose; (2) The interest rate subsidy attributable to the Federal tax-exemption on financing or the value attributable to Federal tax credits; (3) Owner equity or investment in a project; (4) Sweat equity; and (5) Cash or other forms of contributions from applicants for or recipients of HOME assistance or contracts, or investors who own, are working on, or are proposing to apply for, assistance for a HOME-assisted project. § 92.221 Match credit. + (a) Contributions are credited on a fiscal year basis at the time the contribution is made, as follows: +(1) A cash contribution is credited when the funds are expended. +(2) The grant equivalent of a below-market interest rate loan is credited at the { 54 ocal government, or an agency, instrumentality, or political subdivision of a State and repayable with revenues from the affordable housing project financed, as follows: (i) Fifty percent of the loan amount made from bond proceeds to a multi- family affordable housing project owner may qualify as match. (ii) Twenty-five percent of the loan amount from bond proceeds made to a single-family affordable housing project owner may qualify as match. (iii) Loans made from bond proceeds may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • time of the loan closing. +(3) The value of state or local taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred is credited at the time the state or local government officially waives, forgoes, or defers the taxes, fees, or other charges and notifies the project owner. +(4) The value of land or other real property is credited at the time ownership of the property is transferred. +(5) The cost of investment in infrastructure directly required for affordable housing assisted with HOME funds is credited at the time funds are expended for the infrastructure or at the time the HOME funds are committed to the affordable housing if the infrastructure was completed before the commitment of HOME funds. +(6) Donated material is credited as match at the time it is used for affordable housing; donated or voluntary labor is credited at the time the work is performed. `°'(7) A loan made from bond proceeds under § 92.220(a)(5) is credited at the time of the loan closing. +(b) Excess match. Contributions made in a fiscal year that exceed the participating jurisdiction's match liability for the fiscal year in which they were made will be carried over and applied to future fiscal years match liability. @(c) The participating jurisdiction that makes the match contributions to HOME- assisted or HOME match eligible projects (match pursuant to § 92.219(b) for contributions to affordable housing, including tenant-based rental assistance, that is not assisted with HOME funds) is the participating jurisdiction that receives the match credit. A State that provides funding to a local participating jurisdiction to be used for a contribution to affordable housing, whether or not HOME-assisted, may take the match credit for itself or may permit the local participating jurisdiction to receive the match credit. § 92.222 Reduction of matching contribution requirement. +(a) Reduction for fiscal distress +(1) Distress criteria for local government participating jurisdictions. As determined and published annually by HUD, if a local government participating jurisdiction satisfies both of the distress factors in paragraphs (a)(1)(i) and (ii) of this section, it is in severe fiscal distress and its match requirement will be reduced 100% for the period specified in paragraph 55 ulti- family affordable housing project owner may qualify as match. (ii) Twenty-five percent of the loan amount from bond proceeds made to a single-family affordable housing project owner may qualify as match. (iii) Loans made from bond proceeds may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (a)(3) of this section. If a local government participating jurisdiction satisfies either distress factor in paragraphs (a)(1)(i) or (ii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. +(i) Poverty rate. The average poverty rate in the participating jurisdiction was equal to or greater than 125 percent of the average national poverty rate during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. +(ii) Per capita income. The average per capita income in the participating jurisdiction was less than 75 percent of the average • national per capita income, during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. 4(2) Distress criteria for participating jurisdictions that are States. As determined and published annually by HUD, if a State satisfies at least 2 of the 3 distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in severe fiscal distress and its match requirement will be reduced 100% for the period specified in paragraph (a)(3) of this section. If a State satisfies any 1 of the 3 distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. (i) Poverty rate. The average poverty rate in the State was equal to or greater than 125 percent of the average national poverty rate during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. (ii) Per capita income. The average per capita income in the State was less than 75 percent of the average national per capita income, during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. (iii) Personal income growth. The average personal income growth rate in the State over the most recent four quarters for which the data are available was less than 75 percent of the average national personal income growth rate during that period, as determined according to information of the Bureau of Economic Analysis. +(3) Period of match reduction for severe fiscal distress. A 100% match reduction is effective for the fiscal year in which the severe fiscal distress determination is made" and for the following fiscal year. 56 ion. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • , +(4) Period of match reduction for fiscal distress. A 56% match reduction is effective for the fiscal year in which the fiscal distress determination is made18 and for the following fiscal year, except that if a severe fiscal distress determination is published in that following fiscal year, the participating jurisdiction starts a new two-year match reduction period in 17.18 Revised in January 5, 1995, Federal Register. accordance with the provisions of paragraph (a)(3) of this section. +(b) Reduction of match for participating jurisdictions in disaster areas. If a participating jurisdiction is located in an area in which a declaration of major disaster pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, HUD may reduce the matching requirement specified in § 92.218 by up to 100 percent for the fiscal year in which the declaration of major disaster is made and the following fiscal year for a local participating jurisdiction, and for a State participating jurisdiction, by up to 100 percent for the fiscal year in which the declaration of major disaster is made and the following fiscal year with respect to any HOME funds expended in an area to which the declaration of a major disaster applies. [Participating jurisdictions for which a declaration of major disaster was made in FY 1992 are permitted to request a match reduction for FY 1993 and FY 1994.] To request a reduction, a participating jurisdiction must submit to the local HUD Field Office a copy of the disaster declaration. Subpart F -- Project Requirements § 92.250 Maximum per-unit subsidy amount. § 92.251 Property standards. § 92.252 Qualification as affordable housing and income targeting: Rental housing. § 92.253 Tenant and participant protections. § 92.254 Qualification as affordable housing: Homeownership. § 92.255 Mixed-income project. § 92.256 Mixed-use project. § 92.257 Religious organizations. § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. '§ 92.250 Maximum per-unit subsidy amount. The amount of HOME funds that a participating jurisdiction may invest on a per-unit basis in affordable housing may not exceed the per-unit dollar limits established by HUD under 221.514(b)(1) and (c) of this title for elevator-type projects, involving nonprofit mortgagors, insured under section 221(d)(3) of the National Housing Act that apply to the area in which the housing is located. These limits are available from HUD. If the participating jurisdiction's per unit subsidy amount has already been increased to 210% as permitted in § 221.514(c) of this title, upon request to the Field Office, HUD will 57 1 in which the severe fiscal distress determination is made" and for the following fiscal year. 56 ion. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • allow the per unit subsidy amount to be increased on a program-wide basis to an amount, up to 240% of the original per unit limits. _ .§ 92.251 Property standards. (a) Housing that is assisted with HOME funds, at a minimum, must meet the housing quality standards in § 882.109 of this title. In addition, housing that is newly constructed or substantially rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances. The participating jurisdiction must have written standards for rehabilitation. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR part 39. (b) The following requirements apply to housing for homeownership that is to be rehabilitated after transfer of the ownership interest: (1) Before the transfer of the homeownership interest, the participating jurisdiction must: (i) Inspect the housing for any defects that pose a danger to health; and (ii) Notify the prospective purchaser of the work needed to cure the defects and the time by which defects must be cured and applicable property standards met. (2) ,The housing must be free from all noted health and safety defects before occupancy and not later than 6 months after the transfer. (3) The housing must meet the applicable property standards (at a minimum, the housing quality standards in § 882.109 of this title) not later than 2 years after transfer of the ownership interest. § 92.252 Qualification as affordable housing and income targeting: Rental housing. (a) Rent limitation. A rental housing project (including the non-owner-occupied units in housing purchased with HOME funds in accordance with § 92.254) qualifies as affordable housing under this part only if the project: (1) Bears rents not greater than the lesser of (i) The fair market rent for existing housing for comparable units in the area as established by HUD under 888.111 of this title, less the monthly allowance for the utilities and services (excluding telephone) to be paid by 58 red under section 221(d)(3) of the National Housing Act that apply to the area in which the housing is located. These limits are available from HUD. If the participating jurisdiction's per unit subsidy amount has already been increased to 210% as permitted in § 221.514(c) of this title, upon request to the Field Office, HUD will 57 1 in which the severe fiscal distress determination is made" and for the following fiscal year. 56 ion. Loans made from bond proceeds in excess of 25 percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • the tenant; or '(ii) A rent that does not exceed 30 percent of the adjusted income of a family whose gross income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit, except that HUD may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of HUD's findings that .iriations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit and adjusted income assumptions to be used in calculating the maximum rent allowed under this paragraph (a)(1)(ii); '(2) Has, in the case of projects with three or more rental units, or in the case of an owner of multiple one or two unit projects with a total of three or more rental units, not less than 20 percent of the rental units '(i) (A) Occupied by very low-income families whose rent does not exceed 30 percent of the family's monthly adjusted income as determined by HUD. To obtain the maximum monthly rent that may be charged for a unit (in a project that does not receive Federal or State project- based rental subsidy) that is subject to this limitation, the owner or participating jurisdiction multiplies the annual adjusted income of the tenant family by 30 percent and divides by 12 and, if applicable, subtracts a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant; or (B) Occupied by very low-income families who pay as a contribution toward rent not more than 30 percent of the family's monthly adjusted income as determined by HUD if the units receive Federal ' or State project-based rental subsidy. The maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program; or '(ii) Occupied by very low-income families and bearing rents not greater than 30 percent of the gross income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustment for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 1 that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit assumptions to be used in calculating the maximum rent allowed under paragraph (a)(2)(ii) of this section; '(iii) If the rent determined under this paragraph (a)(2) is higher than the applicable rent under (a)(1) of this section, then the applicable maximum rent for units under this paragraph would be that calculated under (a)(1) except for units that receive Federal or State project-based rental assistance. (3) Is occupied only by households that qualify as low-income families; (4) Is not refused for leasing to a holder of a certificate of family participation under 24 CFR part 882 (Rental Certificate Program) or a rental voucher under 24 CFR part 887 (Rental Voucher Program) or to the holder of a comparable document evidencing participation in a HOME tenant-based assistance program because of the status of the prospective tenant as a holder of such certificate of family participation, rental voucher, or comparable HOME tenant-based assistance document; and `'(5) Will remain affordable without regard to the term of any mortgage or the transfer of ownership, pursuant to deed restrictions, covenants running with the land, or other mechanisms approved by HUD, for not less than the appropriate period, beginning after project completion, as specified in the following table, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The participating jurisdiction 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. • 60 as determined by HUD, with adjustment for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Activity Minimum period of affordability in years Rehabilitation or acquisition of existing 5 housing per unit amount of HOME funds: Under $15,000 $15,000 to $40,000 10 Over $40,000 15 New construction or acquisition of newly 20 constructed housing (b) Rent schedule and utility allowances. The participating jurisdiction must review and approve rents proposed by the owner for units with "flat rents," i.e., units subject to the maximum rent limitations in paragraph (a)(1)(i), (a)(1)(ii), or (a)(2)(ii) of this section, and, if applicable, must review and approve, for all units subject to the maximum rent limitations paragraph (a) of this section, the monthly allowances, proposed by the owner, for utilities and services to be paid by the tenant. The owner must reexamine the income of each tenant household living in low-income19 units at least annually. The maximum monthly rent must be recalculated by the owner and reviewed and approved by the participating jurisdiction annually, and may change as changes in the applicable gross rent amounts, the income adjustments, or the monthly allowance for utilities and services warrant. Any increase in rents for lower income units is subject to the provisions of outstanding leases, 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. 19 Revised in March 25, 1994, Federal Register. '(c) Increases in tenant income. Rental housing qualifies as affordable housing despite a temporary noncompliance with paragraph (a)(2) or (a)(3) of this section, if the noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to HUD are being taken to ensure that all vacancies are filled in accordance with this section until the noncompliance is corrected. Tenants who no longer qualify as low-income families must pay as rent the lesser of the amount payable by the tenant under State or local law or 30 percent of the family's adjusted monthly income, as recertified annually. The preceding sentence shall not apply with respect to funds made available under this part for units that have been allocated at low-income housing tax credit by a housing credit agency pursuant to section 42 of the Internal Revenue Code 1986 (26 U.S.C. 42). @(d) Adjustment of qualifying rent. (1) Changes in fair market rents and in median income over time should be 61 y establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • sufficient to maintain the financial viability of a project within the qualifying rent standards in paragraphs (a)(1) and (2) of this section. Regardless of changes in fair market rents and in median income over time, the qualifying rents are not required to be lower than the HOME rent for the project in effect at the time of project commitment. (2) HUD may adjust the qualifying rents established for a project under paragraphs (a)(1) and (2) of this section, only if HUD finds that an adjustment is necessary to support the continued financial viability of the project and only by an amount that HUD determines is necessary to maintain continued financial viability of the project. HUD expects that this authority will be used sparingly. .(e) Manufactured housing. Purchase and/or rehabilitation of a manufactured housing unit qualifies as affordable housing only if, at the time of project completion, the unit -- (1) Is situated on a permanent foundation; (2) Is connected to permanent utility hook-ups; (3) Is located on land that is held in a fee-simple title, land-trust, or long-term ground lease with a term at least equal to that of the appropriate affordability period; (4) Meets the construction standards established under 24 CFR 3280; (5) Meets all requirements of this section. § 92.253 Tenant and participant protections. (a) Lease. The lease between a .tenant and an owner of rental housing assisted with HOME funds must be for not less than one year, unless by mutual agreement between the tenant and the owner. (b) Prohibited lease terms. The lease may not contain any of the following provisions: (1) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the owner in a lawsuit brought in connection with the lease; (2) Treatment of property. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal 62 gency pursuant to section 42 of the Internal Revenue Code 1986 (26 U.S.C. 42). @(d) Adjustment of qualifying rent. (1) Changes in fair market rents and in median income over time should be 61 y establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • n , property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with State law; (3) Excusing owner from responsibility. Agreement by the tenant not to hold the owner or the owner's agents legally responsible for any action or failure to act, whether intentional or negligent; (4) Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; (5) Waiver of legal proceedings. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; (6) Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury; (7) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and (8) Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. +(c) Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable Federal, State, or local law; for completion of the transitional housing tenancy period;. or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action. (d) Maintenance and replacement. An owner of rental housing assisted with HOME funds must maintain the premises in compliance with all applicable housing quality standards and local code requirements. (e) Tenant selection. An owner of rental housing assisted with HOME funds must adopt written tenant selection policies and criteria that (1) Are consistent with the purpose of providing housing for very low-income and low-income families, 63 ,+� 7 arket rents and in median income over time should be 61 y establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (2) Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease, t (3) Give reasonable consideration to the housing needs of families that would have a preference under 960.211 (Federal selection preferences for admission to Public Housing) of this title; and (4) Provide for (i) The selection of tenants from a written waiting list in the chronological • order of their application, insofar as is practicable; and (ii) The prompt written notification to any rejected applicant of the grounds for any rejection. § 92.254 Qualification as affordable housing: homeownership. (a) Purchase with or without rehabilitation. Housing that is for purchase by a family qualifies as affordable housing only if the housing: (1) +(i) Has an initial purchase price that does not exceed 95% of the median purchase price for the type of single-family housing (1- to 4-family residence, condominium unit, cooperative unit, combination manufactured home and lot, or manufactured home lot) for the jurisdiction as determined by HUD, and which may be appealed in accordance with 24 CFR 203.18b; and +(ii) Has an estimated appraised value at acquisition, if standard, or after any repair needed to meet property standards in § 92.251, that does not exceed the limit described in paragraph (a)(1)(i) of this section. (2) Is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase; #(3) Is purchased within 36 months if a lease-purchase agreement in conjunction with a homebuyer program is used to acquire the housing; ®(4) Is subject for minimum periods of: 5 years where the per unit amount of HOME funds provided is less than $15,000; 10 years where the per unit amount of HOME funds provided is $15,000 to $40,000; and 15 years where the per unit amount of HOME funds provided is greater than $40,000 - to resale restrictions or recapture provisions that are established by the participating jurisdiction and determined by HUD to be appropriate to either: 64 (1) Are consistent with the purpose of providing housing for very low-income and low-income families, 63 ,+� 7 arket rents and in median income over time should be 61 y establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • '(i) Make the housing available for subsequent purchase only to a low income family that will use the property as its principal residence; and '(A) Provide the owner with a fair return on investment, including any improvements, and '(B) Ensure that the housing will remain affordable, pursuant to deed restrictions, covenants running with the land, or other similar mechanisms to ensure affordability, to a reasonable range of low-income homebuyers..The affordability restrictions must terminate upon occurrence of any of the following termination events: Foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The participating jurisdiction may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, 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; or '(ii) A participating jurisdiction may structure the recapture provisions, subject to HUD approval, based on its program design and market conditions. '(A) The following methods of recapture would be acceptable to the Department: '(1) Recapture the entire amount of the HOME investment, except that the HOME investment amount may be reduced prorata based on the time the homeowner has owned and occupied the unit measured against the required affordability period. - '(2) If the net proceeds (i.e., the sales price minus loan repayment, other than HOME funds, and closing costs) are not sufficient to recapture the full (or a reduced amount as provided for in paragraph (4)(ii)(A)(1), above, of this section) HOME investment plus enable the homeowner to recover the amount of the homeowner's downpayment and any capital improvement investment, the participating jurisdiction's recapture provisions may share the net proceeds. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: 65 0 blish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • HOME investment X Net proceeds = HOME amount to be • HOME investment + homeowner investment recaptured homeowner investment X Net proceeds = amount to HOME investment + homeowner investment homeowner '(3) Alternatively, the PJ may also allow the homebuyer to recover all the homebuyer's investment (downpayment and capital improvements) first before recapturing the HOME investment. '(B) The HOME investment that is subject to recapture is based on the amount of HOME assistance that enabled the homebuyer to buy the dwelling unit. This is also the amount upon which the affordability period is based. This includes any HOME assistance that reduced the purchase price from fair market value to an affordable price, but excludes the amount between the cost of producing the unit and the market value of the property (i.e., the development subsidy). The recaptured funds must be used to carry out HOME-eligible activities. If no HOME funds will be subject to recapture, the provisions at 92.254(a)(4)(i) apply. '(C) Upon recapture of the HOME funds used in a single-family, homebuyer project with two to four units, the affordability period on the rental units may be terminated at the discretion of the participating jurisdiction. +(b) Rehabilitation not involving purchase. Housing that is currently owned by a family qualifies as affordable housing only if @(1) The value of the property, after rehabilitation, does not exceed 95% of the median purchase price for the type of single-family housing (1- to 4-family residence, condominium unit, combination manufactured home and lot, or manufactured home lot) for the jurisdiction as determined by HUD, and which may be appealed in accordance with 24 CFR 203.18b; and (2) The housing is the principal residence of an owner whose family qualifies as a low-income family at the time HOME funds are committed to the housing. '(c) Manufactured housing. Purchase and/or rehabilitation of a manufactured housing unit qualifies as affordable housing only if, at the time of project completion, the unit (1) Is situated on a permanent foundation (except when assisting existing unit owners who rent the lot on which their unit sits); (2) Is connected to permanent utility hook-ups; 66 65 0 blish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (3) Is located on land that is held in a fee-simple title, land-trust, or long-term ground lease with a term at least equal to that of the appropriate affordability period; (4) Meets the construction standards established under 24 CFR 3280 if produced after June 15, 1976. If the unit was produced prior to June 15, 1976, it must comply with applicable State or local codes; (5) Meets all requirements of Section 92.254(a) and (b), as applicable. In cases where the owner of a manufactured housing unit does not hold fee-simple title to the land on which the unit is located, the owner may be assisted to purchase the land under paragraph (b) of this section. (4'§ 92.255 Mixed-income project. `°'(a) Housing that accounts for less than 100 percent of the dwelling units in a project qualifies as affordable housing if the housing meets the criteria of § 92.252 or § 92.254. Each building in the project must contain housing that meets the requirements of § 92.252 or § 92.254. See § 92.219 for matching contribution requirements concerning mixed-income projects. @(b) For purposes of meeting affordable housing requirements for a project, the dwelling units counted as affordable housing may be changed over the - affordability period, so long as the total number of affordable housing units remains the same, and the substituted units are, at a minimum, comparable in terms of size, features, and number of bedrooms to the originally designated affordable housing units. § 92.256 Mixed-use project. @Housing in a project that is designed in part for uses other than residential use qualifies as affordable housing if such housing meets the criteria of § 92.252 or § 92.254. A project that contains, in addition to dwelling units, laundry and community facilities for the exclusive use of the project residents and their guests, does not constitute a project that is designed in part for uses other than residential use. Residential living space must constitute at least 51 percent of the project space for contributions to the non-residential portion of the property to count as match. #§ 92.257 Religious organizations. HOME funds may not be provided to primarily religious organizations, such as churches, for any activity including secular activities. In addition, HOME funds may not be used to rehabilitate or construct housing owned by primarily religious organizations or to assist primarily religious organizations in acquiring housing. However, HOME funds may be used by a secular entity to acquire housing from a primarily religious organization, and a • 67 0 is of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • primarily religious entity may transfer title to property to a wholly secular entity and the entity may participate in the HOME program in accordance with the requirements of this part. The entity may be an existing or newly established entity, which may be an entity (� established by the religious organization. The completed housing project must beused exclusively by the owner entity for secular purposes, available to all persons regardless of religion. In particular, there must be no religious or membership criteria for tenants of the property. § 92.258 Limitation on the use of HOME funds with.FHA mortgage insurance. When HOME funds are to be used in connection with housing in which acquisition, new construction, or rehabilitation is financed with a mortgage insured by HUD under chapter II of this title, then, for rental housing, the period that the project must remain affordable as provided in binding commitments meeting the requirements of by § 92.252(a)(5) or, for homeownership, the applicable period specified in the participating jurisdiction's guidelines established under § 92.254(a)(4)(ii), must be equal to the term of the HUD-insured mortgage. @§92.259 Elder cottage housing opportunity (ECHO) units. @(a) General. HOME funds may be used for the initial purchase and initial placement costs of elder cottage housing opportunity (ECHO) units that meet the requirements of this section, and that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single-family dwellings. @(b) Eligible owners. The owner of a'HOME-assisted ECHO unit may be - (1) The owner of the single-family host property on which the ECHO unit will be located; (2) A participating jurisdiction; or (3) A non-profit organization. @(c) Eligible tenants. During the affordability period, the tenant of a HOME-assisted ECHO unit must be an elderly, handicapped or disabled family as defined in part 812 of this title, and must also be a low income family. Applicable requirements. The requirements of § 92.252 of this part apply to HOME-assisted ECHO units, except as specified in this section, including the following requirements: (1) Only one ECHO unit may be provided per host property. 68 tL. .. g housing. However, HOME funds may be used by a secular entity to acquire housing from a primarily religious organization, and a • 67 0 is of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • (2) The ECHO unit owner may choose whether or not to charge the tenant of the ECHO unit for rent, but if a rent is charged, it must meet the requirements of § 92.252. (3) The ECHO housing must remain affordable for the period specified in § 92.252(a)(5). If within the affordability period the original occupant no longer occupies the unit, the ECHO unit owner must: (i) Rent the unit to another eligible occupant on site; (ii) Move the ECHO unit to another site for occupancy by an eligible occupant; or (iii) If the owner of the ECHO unit is the host property owner, in accordance with the requirements of § 92.254(a)(4)(ii), the participating jurisdiction must recapture the HOME investment to be used for additional HOME activities. (4) The participating jurisdiction has the responsibility to enforce the project requirements applicable to ECHO units. Subpart G -- Community Housing Development Organizations § 92.300 Set-aside for community housing development organizations. § 92.301 Project-specific assistance to community housing development organizations. § 92.302 Housing education and organizational support. § 92.303 Tenant participation plan. § 92300 Set-aside for community housing development organizations (CHDOs). +(a) For a period of 24 months after the allocation (including, for a State, funds reallocated under § 92.451(c)(2)(i) and, for a unit of general local government, an allocation transferred from a state under § 92.102(b)) is made available to a participating jurisdiction, the participating jurisdiction must reserve not less than 15 percent of these funds for investment only in housing to be developed, sponsored, or owned by community housing development organizations. The funds must be provided to a community housing development organization and the funds are reserved when a participating jurisdiction enters into a written agreement with the community housing development organization. If a community housing development organization's involvement in a project is as an owner it must have control of the project, as evidenced by legal title or a valid contract of sale. If it owns the project in partnership, it or its wholly owned for-profit subsidiary must be the managing general partner. In acting in any of the capacities specified, the community housing development organization must have effective management control. 69 L 67 0 is of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent 59 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • @(b) Each participating jurisdiction must make reasonable efforts to identify community housing development organizations that are capable, or can reasonably be expected to become capable, of carrying out elements of the jurisdiction's approved consolidated plan and to encourage such community housing development organizations to do so. If during the first 24 months of its participation in the HOME Program a participating jurisdiction cannot identify a sufficient number of capable CHDOs, up to 20 percent of the minimum CHDO setaside of 15 percent specified in paragraph (a) of this section, above, (but not more than $150,000 during the 24 month period) may be committed to develop the capacity of CHDOs in the jurisdiction.20 2° Revised in January 5, 1995, Federal Register. +(c) Up to 10 percent of the HOME funds reserved under this section may be used for activities specified under § 92.301. +(d) HOME funds required to be reserved under this section are subject to reduction, as provided in § 92.500(d). 4(e) If funds for operating expenses are provided under § 92.208 to a community housing development organization that is not also receiving funds under paragraph (a) of this section for housing to be developed, sponsored or owned by the community housing development organization, the participating jurisdiction must enter into a written agreement with the community housing development organization that provides that the community housing development organization is expected to receive funds under paragraph (a) of this section within 24 months of receiving the funds for operating expenses, and specifies the terms and conditions upon which this expectation is based. 4(f) Limitation. A community housing development organization may not receive HOME funding for any fiscal year in an amount that provides more than 50 percent or $50,000, whichever is greater, of the community housing development organization's total operating expenses in that fiscal year. This includes organization support and housing education provided under § 92.302(c)(1), (c)(2), and (c)(6), as well as funds for operating expenses provided under § 92.208 and administrative funds provided under § 92.207 (if the community housing development organization is a subrecipient or contractor of the participating jurisdiction). § 92.301 Project-specific assistance to community housing development organizations. (a) Project-specific technical assistance and site control loans- (1) General. Within the percentage specified in § 92.300(c), HOME funds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • stages of site development for an eligible project. These loans may not exceed amounts that the participating jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (a)(2) of this , section. All costs must be related to a specific eligible project or projects. (2) Allowable expenses. A loan under this paragraph (a) of this section may be provided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, site control and title clearance. General operational expenses of the community housing development organization are not allowable expenses. (3) Repayment. A community housing development organization that receives a loan under paragraph (a) of this section must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower. (b) Project-specific seed money loans- (1) General. Within the limit specified in paragraph (a) of this section, HOME funds may be used to provide loans to community housing development organizations to cover preconstruction project costs that the participating jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies, and ' legal fees. (2) Eligible sponsors. A loan under paragraph (b) of this section may be provided only to a community housing development organization that has, with respect to the project concerned, site control (evidenced by a deed, a sales contract, or an option contract to buy the property), a preliminary financial commitment, and a capable development team. (3) Repayment. A community housing development organization that receives a loan under paragraph (b) of this section must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in whole or in part, 'if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the community housing development organization. 71 t � _ nds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • § 92.302 Housing education and organizational support. (a) General. HUD is authorized to provide education and organizational support assistance, in conjunction with HOME funds made available to community housing development organizations: (1) To facilitate the education of low-income homeowners and tenants; and +(2) To promote the ability of community housing development organizations, including community land trusts, to maintain, rehabilitate and construct housing for low-income and moderate-income families in conformance with the requirements of this part; and +(3) To achieve the purposes under paragraphs (a)(1) and (2) of this section by helping women who reside in low- and moderate-income neighborhoods rehabilitate and construct housing in the neighborhoods. (b) Delivery of assistance. HUD will provide assistance under this section only through contract (1) With a nonprofit intermediary organization that, in the determination of HUD (i) Customarily provides, in more than one community, services related to the provision of decent housing that is affordable to low-income and moderate-income persons or the revitalization of deteriorating neighborhoods; (ii) Has demonstrated experience in providing a range of assistance (such as financing, technical assistance, construction and property management assistance, capacity building, and training) to community housing development organizations or similar organizations that engage in community revitalization; (iii) Has demonstrated the ability to provide technical assistance and training for community-based developers of affordable housing; and +(iv) Has described the uses to which such assistance will be put and the intended beneficiaries of the assistance; • +(v) In the case of activities under paragraph (c)(7) of this section, is a community based organization as defined in section 4 of the Job Training Partnership Act or a public housing agency which has demonstrated experience in preparing women for apprenticeship training in construction or administering programs for training for construction or other nontraditional occupations (in which women constitute 25 percent or less 72 The participating jurisdiction may waive repayment of the loan, in whole or in part, 'if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the community housing development organization. 71 t � _ nds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • of the total number of workers in the occupation); or (2) With another organization, if a participating jurisdiction demonstrates that the organization is qualified to carry out eligible activities and that the jurisdiction would not be served in a timely manner by intermediaries specified under paragraph (b)(1) of this section. Contracts under paragraph (b)(2) of this section must be for activities specified in an application from the participating jurisdiction. The application must include a certification that the activities are necessary to the effective implementation of the participating jurisdiction's approved consolidated plan.' 21 Revised in January 5, 1995, Federal Register. (c) Eligible activities. Assistance under this section may be used only for the following eligible activities: (1) Organizational support. Organizational support assistance may be made available to community housing development organizations to cover operational expenses and to cover expenses for training and technical, legal, engineering and other assistance to the board of directors, staff, and members of the community housing development organization. (2) Housing education. Housing education assistance may be made available to community housing development organizations to cover expenses for providing , or administering programs for educating, counseling, or organizing homeowners and tenants who are eligible to receive assistance under other provisions of this part. (3) Program-wide support of nonprofit development and management. Technical assistance, training, and continuing support may be made available to eligible community housing development organizations for managing and conserving properties developed under this part. (4) Benevolent loan funds. Technical assistance may be made available to increase the investment of private capital in housing for very low-income families, particularly by encouraging the establishment of benevolent loan funds through which private financial institutions will accept deposits at below-market interest rates and make those funds available at favorable rates to developers of low-income housing and to low-income homebuyers. Community development banks and credit unions. Technical assistance may be made available to establish privately owned, local community development 'anks and credit unions to finance affordable housing. Community Land Trusts (CLTs). HOME funds may be made available to 73 • on. 71 t � _ nds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • CLTs for organizational support, technical assistance, education and training, and continuing support; and to community groups for the establishment of CLTs. A community land trust is a community housing development organization that: +(i) Is not sponsored by a for-profit organization; • +(ii) Is established, and undertakes activities to: +(A) Acquire parcels of land, held in perpetuity, primarily for conveyance under long-term ground leases; +(B) Transfer ownership of any structural improvements located on such leased parcels to the lessees; and +(C) Retain a preemptive option to purchase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to low- and moderate-income families in perpetuity; +(hi) Has a corporate membership open to any adult resident of a particular geographic area specified in the bylaws of the organization; +(iv) Whose board of directors includes a majority of members who are elected by the corporate membership and is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization; and +(v) Is not required to have a demonstrated capacity for carrying out HOME activities or a history of serving the local community within which HOME-assisted housing is to be located. +(7) Facilitating women in homebuilding professions. Technical assistance may be made available to businesses, unions, and organizations involved in construction and rehabilitation of housing in low- and moderate-income areas to assist women residing in'the area to obtain jobs involving such activities. This might include facilitating access by women to, and providing, apprenticeship and other training programs regarding non-traditional skills, recruiting women to participate in such programs, providing support for women at job sites, counseling and educating businesses regarding suitable work environments for women, providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses. Up to 10 percent of the funds made available for this activity may be used to provide materials • �" 74 munity Land Trusts (CLTs). HOME funds may be made available to 73 • on. 71 t � _ nds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • 11 and tools for training such women. +(d) Limitations. Contracts under this section with any one contractor for a fiscal year may not +(1) Exceed 20 percent of the amount appropriated for this section for such fiscal year; or +(2) Provide more than 20 percent of the operating budget (which may not include funds that are passed through to community housing development organizations) of the contracting organization. for any one year. +(e) Single-state contractors. Not less than 40 percent of the funds made available for this section in an appropriations Act in any fiscal year must be made available for eligible contractors that have worked primarily in one state. HUD shall provide assistance under this section, to the extent applications are submitted and approved, to contractors in each of the geographic regions having a HUD regional office. +(f) Notice of funding. HUD will publish a notice in the Federal Register announcing the availability of funding under this section, as appropriate. The notice need not include funding for each of the eligible activities, but may target funding from among the eligible activities. § 92.303 Tenant participation plan. A community housing development organization that receives assistance under this part must adhere to a fair lease and grievance procedure approved by the participating jurisdiction and provide a plan for and follow a program of tenant participation in management decisions. Subpart H -- Other Federal Requirements § 92.350 Equal opportunity and fair housing. § 92.351 Affirmative marketing. § 92.352 Environmental review. § 92.353 Displacement, relocation, and acquisition. § 92.354 Labor. § 92.355 Lead-based paint. § 92.356 Conflict of interest. § 92.357 Debarment and suspension. § 92.358 Flood insurance. § 92.359, Executive Order 12372. 75 • 1 by women to, and providing, apprenticeship and other training programs regarding non-traditional skills, recruiting women to participate in such programs, providing support for women at job sites, counseling and educating businesses regarding suitable work environments for women, providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses. Up to 10 percent of the funds made available for this activity may be used to provide materials • �" 74 munity Land Trusts (CLTs). HOME funds may be made available to 73 • on. 71 t � _ nds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early 70 .. 'V percent of a participating 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • § 92.350 Equal opportunity and fair housing. (a) Equal opportunity. No person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME funds. In addition, HOME funds must be made available in accordance with the following: (1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at 24 CFR part 100; Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (Nondiscrimination in Federally Assisted Programs) and implementing regulations issued at 24 CFR part 1; (2) The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 CFR part 146, and the prohibitions against discrimination against handicapped individuals under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8; (3) The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., p. 339) (Equal Employment Opportunity) and the implementing regulations issued at 41 CFR chapter 60; `(4) The requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) the purpose of which is to ensure that the employment and other economic opportunities generated by Federal financial assistance for housing and community development programs shall, to the greatest extent feasible, be directed toward low- and very-low-income persons, particularly those who are recipients of government assistance for housing. (5) The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise), and 12138 (concerning Women's Business Enterprise). Consistent with HUD's responsibilities under these Orders, each participating jurisdiction must make efforts to encourage the use of minority and women's business enterprises in connection with HOME-funded activities. A participating jurisdiction must prescribe procedures acceptable to HUD to establish and oversee a minority outreach program within its jurisdiction to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, including, without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • f / of legal services, in all contracts entered into by the participating jurisdiction with such persons or entities, public and private, in order to facilitate the activities of the participating jurisdiction to provide affordable housing authorized under this Act or any other federal housing law applicable to such jurisdiction. Section 85.36(e) of this title describes actions to be taken by a participating jurisdiction to assure that minority business enterprises and women business enterprises are used when possible in the procurement of property and services. (b) Fair housing. In accordance with the certification made with its consolidated plan, each participating jurisdiction must affirmatively further fair housing. Actions described in 570.904(c) of this title will satisfy this requirement.' Revised in January 5, 1995, Federal Register. § 92.351 Affirmative marketing. (a) Each participating jurisdiction must adopt affirmative marketing procedures and requirements for HOME-assisted housing containing 5 or more housing units. Affirmative marketing steps consist of actions to provide information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market area to the available housing. (The affirmative marketing procedures do not apply to families with housing assistance provided by the PHA or families with tenant based rental assistance provided with HOME funds.) The participating jurisdiction must annually assess the affirmative marketing program to determine the success of affirmative marketing actions and any necessary corrective actions. (These requirements and procedures are comparable to the affirmative marketing requirements and procedures for the Rental Rehabilitation Program (24 CFR part 511), and jurisdictions that have participated in that program should consider basing their requirements and procedures on their existing Rental Rehabilitation Program requirements and procedures.) (b) The affirmative marketing requirements and procedures adopted must include: (1) Methods for informing the public, owners, and potential tenants about federal fair housing laws and the participating jurisdiction's affirmative marketing policy (e.g., the use of the Equal Housing Opportunity logotype or slogan in press releases and solicitations for owners, and written communication to fair housing and other groups); (2) Requirements and practices each owner must adhere to in order to carry out the participating jurisdiction's affirmative marketing procedures and requirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); 77 real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • (3) Procedures to be used by owners to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach (e.g., use of community organizations, places of worship, . employment centers, fair housing groups, or housing counseling agencies); (4) Records that will be kept describing actions taken by the participating jurisdiction and by owners to affirmatively market units and records to assess the results of these actions; and (5) A description of how the participating jurisdiction will assess the success of affirmative marketing actions and what corrective,actions will be taken where affirmative marketing requirements are not met. (c) A State that distributes HOME funds to units of general local government must require each unit of general local government to adopt affirmative marketing procedures and requirements that meet the requirement in paragraphs (a) and (b) of this section. § 92.352 Environmental review. (a) General. The environmental effects of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD's implementing regulations at 24 CFR parts 50 and 58. #(b) Responsibility for review. #(1) The jurisdiction (e.g., the participating jurisdiction or state recipient) or insular area must assume responsibility for environmental review, decisionmaking, and action for each activity that it carries out with HOME funds, in accordance with the requirements imposed on a recipient under 24 CFR part 58. In accordance with 24 CFR part 58, the jurisdiction or insular area must carry out the environmental review of an activity and obtain approval of its request for release of funds before HOME funds are committed for the activity. #(2) A State participating jurisdiction must also assume responsibility for approval of requests for release of HOME funds submitted by state recipients. #(3) HUD will perform the environmental review, in accordance with 24 CFR part 50, for a competitively awarded application for HOME funds submitted to HUD by an entity that is not a jurisdiction. § 92353 Displacement, relocation, and acquisition. (a) Minimizing displacement. Consistent with the other goals and objectives of this part, , 78 - uirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); 77 real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • . ( r the participating jurisdiction must ensure that it has taken all reasonable steps to • minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of a project assisted with HOME funds. To the extent feasible, residential tenants must be provided a reasonable opportunity to lease and occupy a suitable, decent, safe, sanitary, and affordable dwelling unit in the building/complex upon completion of the project. (b) Temporary relocation. The following policies cover residential tenants who will not be, required to move permanently but who must relocate temporarily for the project. Such tenants must be provided: (1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent/utility costs. (2) Appropriate advisory services, including reasonable advance written notice of (i) The date and approximate duration of the temporary relocation; (ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (iii) The terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling in the building/complex upon completion of the project; and (iv) The provisions of paragraph (b)(1) of this section. (c) Relocation assistance for displaced persons. (1) General. A displaced person (defined in paragraph (c)(2) of this section) must be provided relocation assistance at the levels described in, and in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR part 24. A "displaced person" must be advised of his or her rights under the Fair Housing Act (42 U.S.C. 3601-19) and, if the comparable replacement dwelling used to establish the amount of the replacement housing payment to be provided to a minority person is located in an area of minority concentration, the minority person also must be given, if possible, referrals to comparable and suitable, decent, safe, and sanitary replacement dwellings not located in such areas. (2) Displaced Person. (i) For purposes of paragraph (c) of this section, the term displaced person 79 0 onsistent with the other goals and objectives of this part, , 78 - uirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); 77 real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • means a person (family individual, business, nonprofit organization, or farm, including any corporation, partnership or association) that moves from real property or moves personal property from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a project assisted with HOME funds. This includes any permanent, involuntary move for an assisted project, including any permanent move from the real property that is made: (A) After notice by the owner to move permanently from the property, if the move occurs on or after: (1) The date of the submission of an application to the participating jurisdiction or HUD, if the applicant has site control and the application is later approved; or (2) The date the jurisdiction approves the applicable site, if the applicant does not have site control at the time of the application; or (B) Before the date described in paragraph (c)(2)(i)(A) of this section, if the jurisdiction or HUD determines that the displacement resulted directly from acquisition, rehabilitation, or demolition for the project; or (C) By a tenant-occupant of a dwelling unit, if any one of the following three situations occurs: (1) The tenant moves after execution of the agreement covering the acquisition, rehabilitation, or demolition and the move occurs before the tenant is provided written notice offering the tenant the opportunity to lease and occupy a suitable, decent, safe, and sanitary dwelling in the same building/complex upon completion of the project under reasonable terms and conditions. Such reasonable terms and conditions must include a term of at least one year at a monthly rent and estimated average monthly utility costs that do not exceed the greater of (i) The tenant's monthly rent before such agreement and estimated average monthly utility costs; or (ii) The total tenant payment, as determined under 24 CFR 813.107, if the tenant is low-income, or 30 percent of gross household income, if the tenant is not low-income; or 80 I son. (i) For purposes of paragraph (c) of this section, the term displaced person 79 0 onsistent with the other goals and objectives of this part, , 78 - uirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); 77 real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • A r' (2) The tenant is required to relocate temporarily, does not return to the building/complex, and either (i) The tenant is not offered payment for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation; or (ii) Other conditions of the temporary relocation are not reasonable; or (3) The tenant is required to move to another dwelling unit in the same building/complex but is not offered reimbursement for all reasonable out-of-pocket expenses incurred in connection with the move, or other conditions of the move are not reasonable. (ii) Notwithstanding paragraph (c)(2)(i) of this section, a person does not qualify as a displaced person if: (A) The person has been evicted for cause based upon a serious or repeated violation of the terms and conditions of the lease or occupancy agreement, violation of applicable federal, state or local law, or other good cause, and the participating jurisdiction determines that the eviction was not undertaken for the purpose of evading the obligation to provide relocation assistance. The effective date of any termination or refusal to renew must be preceded by at least 30 days advance written notice to the tenant specifying the grounds for the action. (B) The person moved into the property after the submission of the application but, before signing a lease and commencing occupancy, was provided written notice of the project, its possible impact on the person (e.g., the person may be displaced, temporarily relocated, incur a rent increase), and the fact that the person would not qualify as a "displaced person" (or for any assistance under this section) as a result of the project; (C) The person is ineligible under 49 CFR 24.2(g)(2); or (D) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition for the project. (iii) The jurisdiction may, at any time, ask HUD to determine whether a displacement is or would be covered by this rule. (3) Initiation of negotiations. For purposes of determining the formula for 81 � I . (i) For purposes of paragraph (c) of this section, the term displaced person 79 0 onsistent with the other goals and objectives of this part, , 78 - uirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); 77 real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers • ` r 53 drawn down. 48 rce and effect as if he were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • computing replacement housing assistance to be provided under paragraph (c) of this section to a tenant displaced from a dwelling as a direct result of private-owner rehabilitation, demolition or acquisition of the real property, the term initiation of negotiations means the execution of the agreement covering the acquisition, rehabilitation, or demolition. (d) Optional relocation assistance. The participating jurisdiction may provide relocation payments and other relocation assistance to families, individuals, businesses, nonprofit organizations, and farms displaced by a project assisted with HOME funds where the displacement is not subject to paragraph (c) of this section. The • jurisdiction may also provide relocation assistance to persons covered under paragraph (c) of this section beyond that required. For any such assistance that is not required by State or local law, the jurisdiction must adopt a written policy available to the public that describes the optional relocation assistance that it has elected to furnish and provides for equal relocation assistance within each class of displaced persons. #(e) Residential antidisplacement and relocation.assistance plan. Each participating jurisdiction shall comply with the Residential Antidisplacement and Relocation Assistance Plan requirements described at 24 CFR 570.606(c), or, in the case of a State-administered HOME Program, the requirements at 24 CFR 570.488(c). These policies require one-for-one replacement of low/moderate-income housing demolished or converted to another use and the provision of relocation assistance to lower income persons displaced by such conversion or by demolition. (f) Real property acquisition requirements. The acquisition of real property for a project is subject to the URA and the requirements of 49 CFR part 24, subpart B. (g) Appeals. A person who disagrees with the participating jurisdiction's determination concerning whether the person qualifies as a displaced person, or the amount of relocation assistance for which the person may be eligible, may file a written appeal of that determination with the jurisdiction. A low-income person who is dissatisfied with the jurisdiction's determination on his or her appeal may submit a written request for review of that determination to the HUD Field Office. (h) Responsibility of participation jurisdiction. (1) The jurisdiction must certify that it will comply with the URA, the regulations at 49 CFR part 24, and the requirements of this section, and must ensure such compliance notwithstanding any third party's contractual obligation to the jurisdiction to comply. (2) The cost of required relocation assistance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 4''� § 92.354 Labor. @(a) General. (1) Every contract for the construction (rehabilitation or new construction) of housing that includes 12 or more units assisted with HOME funds must contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis- Bacon Act (40 U.S.C. 276a - 276a-5), to all laborers and mechanics employed in the development of any part of the housing. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 - 332). #(2) The contract for construction must contain these wage provisions if HOME funds are used for any project costs (as defined in 92.206), including construction or nonconstruction costs, of housing with 12 or more HOME-assisted units. When HOME funds are only used to assist homebuyers to acquire single-family housing, and not for any other project costs, the wage provisions apply to the construction of the housing if there is a written agreement with the owner or developer of the housing that HOME funds will be used to assist homebuyers to buy the housing and the construction contract covers 12 or more housing units to be purchased with HOME assistance. The wage provisions apply to any construction contract that includes a total of 12 or more HOME-assisted units, whether one or more than one project is covered by the construction contract. Once they are determined to be applicable, the wage provisions must be contained in the construction contract so as to cover all laborers and mechanics employed in the development of the entire project, including portions other than the assisted units. Arranging multiple construction contracts within a single project for the purpose of avoiding the wage provisions is not permitted. (3) Participating jurisdictions, contractors, subcontractors, and other participants must comply with regulations issued under these Acts and with other federal laws and regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community Development Programs), as applicable. Participating jurisdictions must require certification as to compliance with the provisions of this section before making any payment under such contract. (b) Volunteers. The prevailing wage provisions of paragraph (a) of this section do not apply to an individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work. (c) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • I:p • apply to members of an eligible family who provide labor in exchange for acquisition of a property for homeownership or provide labor in lieu of, or as a supplement to, rent payments. § 92.355 Lead-based paint. Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.) and is, therefore, subject to 24 CFR part 35. Unless otherwise provided, participating jurisdictions are responsible for testing and abatement activities. • § 92.356 Conflict of interest. (a) Applicability. '(1) In the procurement of property and services by participating jurisdictions, state recipients, and subrecipients, the conflict of interest provisions in 24 CFR 85.36 and 24 CFR 84.42, respectively, apply. 1(2) In all cases not governed by 24 CFR 85.36 and 24 CFR 84.42, the provisions of this section apply. These cases include the acquisition and disposition of real property and the provision of assistance by the participating jurisdiction, by the state recipient, by subrecipients, or to individuals, housing developers, and other private entities under eligible activities which authorize such assistance (e.g., rehabilitation of housing)." '3 See § 92.505 concerning the applicability of OMB Circulars. (b) Conflicts prohibited. No persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decisionmaking process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, state recipient, or subrecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to 84 ork. (c) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. An exception may be considered only after the participating jurisdiction has provided the following: (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the participating jurisdiction's attorney that the interest for which the exception is sought would not violate state or local law. (e) Factors to be considered for exceptions. In determining whether to grant a requested exception after the participating jurisdiction has satisfactorily met the requirements of paragraph (d) of this section, HUD will consider the cumulative effect of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; (2) Whether the person affected is a member of a group or class of low-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (3) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decisionmaking process with respect to the specific assisted activity in question; (4) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (c) of this section; (5) Whether undue hardship will result either to the participating jurisdiction or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (6) Any other relevant considerations. § 92.357 Debarment and suspension. As required by 24 CFR part 24, each participating jurisdiction must require participants in lower tier covered transactions to include the certification in appendix B of 24 CFR part 24 (that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation from the 85 • brecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to 84 ork. (c) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • covered transaction) in any proposal submitted in connection with the lower tier transactions. A participating jurisdiction may rely on the certification, unless it knows the certification is erroneous. § 92.358 Flood insurance. (a) Under the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128), HOME funds may not be used with respect to the acquisition, new construction, or rehabilitation of a project located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless: • (1) The community in which the area is situated is participating in the National Flood Insurance Program (see 44 CFR parts 59 through 79), or less than a year has passed since FEMA notification regarding such hazards; and (2) Flood insurance is obtained as a condition of approval of the commitment. (b) Participating jurisdictions located in an area identified by FEMA as having special flood hazards are responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained. (c) This section does not apply to HOME funds provided to a state. § 92.359 Executive Order 12372. (a) General. Executive Order 12372, as amended by Executive Order 12416 (3 CFR, 1982 Comp., p. 197 and 3 CFR, 1983 Comp., p. 186) (Intergovernmental Review of Federal Programs) and the Department's implementing regulations at 24 CFR part 52, allow each state to establish its own process for review and comment on proposed Federal financial assistance programs. (b) Applicability. Executive Order 12372 applies to applications submitted with respect to HOME funds being competitively reallocated under subpart J of this part to units of general local government. Subpart I -- Technical Assistance § 92.400 Coordinated federal support for housing strategies. (a) General. HUD will provide assistance under this subpart I to (1) Facilitate the exchange of information that would help participating jurisdictions carry out the purposes of this part, including information on program design, housing finance, land use controls, and building construction techniques; • 86 _. or voluntarily excluded from participation from the 85 • brecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to 84 ork. (c) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • EXHIBIT "C" NON-RECOURSE REPAYABLE LOAN PROMISSORY NOTE PROJECT NO. HOME Rental PLACE: Omaha,Douglas County,Nebraska Rehabilitation Program ADDRESS: 1013 Leavenworth Street LOAN NO. DATE: FOR VALUE RECEIVED,the undersigned hereby promises to pay to the order of the CITY OF OMAHA (hereinafter, the "City"), acting by and through the Director of the Planning Department or its successors, the principal sum of Five Hundred Thousand and No/100 Dollars ($500,000.00),together with interest thereon as hereafter provided, as follows: 1. Interest of zero percent(0%)from and after December 1, 1998 for a period of twenty (20)years, through and including December 1, 2018. 2. The principal balance of $500,000.00 at the rate of zero percent (0%) shall be amortized over a period of thirty (30) years in 360 equal monthly installments of principal and interest($1,388.89), commencing January 1, 2019. All payments on this Note shall be made in lawful money of the United States at the principal office of the City of Omaha, 1819 Farnam Street, Omaha,Nebraska or at such other place or places as shall be designated in writing for such purposes by the City. The undersigned reserves 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 and interest 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 principal and interest 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 principal and interest, so long as the amount of any optional prepayments already made pursuant hereto equals or exceeds the amount of the required installments. If the interest on, and the principal of, this Note ' hniques; • 86 _. or voluntarily excluded from participation from the 85 • brecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to 84 ork. (c) Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • are 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. Notwithstanding anything to the contrary set forth above,but except as hereafter provided, the principal,together with all interest, of and on this Note shall be due and payable on the first day after the undersigned conveys, grants, mortgages, assigns or otherwise transfers its interest, or any portion thereof,in the property or improvements located in the area in the City of Omaha,and legally described as: Lots 1, 2, 3 and East 22 feet of Lot 4, Block 203, Original City of Omaha, as surveyed and lithographed in Douglas County,Nebraska,together with the North 1/2 of vacated alley adjoining on the South of said Lot 1 (commonly known as 1013 Leavenworth Street) without the prior written consent of the Director of the Planning Department of the CITY OF OMAHA, which consent shall not be unreasonably withheld. Further and without limitation, it is expressly understood and agreed that the foregoing property and improvements may be subject to a Deed of Trust of first priority in a principal amount not to exceed$1,175,000.00. The loan evidenced by this None is a non-recourse obligation of the undersigned. Neither the undersigned nor any of its general and limited partners (or the partners, officers, directors or shareholders of any such partner) shall have any personal liability for repayment of any sum due under this Note or the Deed of Trust securing it. The sole recourse against the undersigned by the Lender under this Note and related Deed of Trust for repayment of the loan evidenced thereby shall be by the exercise by the Lender of its rights against the above-described property and • improvements, and related security thereunder. This Note is secured by a second Deed of Trust upon the above-described property, which Deed of Trust is and shall be junior to the Deed of Trust in favor of an amount not to exceed the principal sum of$1,175,000.00. In the event that 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. 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. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • IN WITNESS WHEREOF,this Note has been duly executed by the undersigned, as of the day and year above set forth. BULL DURHAM LIMITED PARTNERSHIP, a Nebraska Limited Partnership By: THI,INC., GENERAL PARTNER By: TanY14)41 8CiAlt-tfi ?4V91. Tammy President,President Date By: SECURITIES PROJECT CORPORATION, GENERAL PARTNER, a wholly owned Subsidiary of South Omaha Affordable Housing Corporation,a Nebraska Non-Profit Corporation By: 1-l-47 Name Date o5 riL2 Title P:\PLN2\4926.SAP - 3 - . obert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr CITY OF OMAHA COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM RENTAL REHABILITATION PROGRAM GUIDELINES 1 . INTRODUCTION The Rental Rehabilitation program is designed to provide rehabilitation financing assistance to investor owners of single-family (one to four units) and multi-family (five units or more) rental properties. Investor owners are eligible for assistance if their property is located within the area designated on the attached map. The program is designed to combine federal funds with funds provided by the owner. 2. PROGRAM OBJECTIVES a) Encourage rehabilitation of rental units, affordable to low and moderate income persons within the designated area. b) Make rehabilitation of rental properties economically feasible. c) Use Rental Rehabilitation program funds to leverage private investment in the designated areas. d) Expand the City's rehabilitation program beyond its traditional emphasis on single- family, owner-occupied dwelling units. 3 . PROGRAM PARTICIPATION REQUIREMENTS You can participate in the Rental Rehabilitation program if: a) You are willing to match the Rental Rehabilitation funds with private funds on a one- to-one basis up to the maximum per unit amount of assistance as further outlined below. (If additional funds are required for the project, they must come from private sources.) b) You have marketable title to the property to be rehabilitated. c) All property taxes and assessments are current. d) Your property has at least one rental dwelling on it and 51% (or 50% for a duplex) of the rentable floor space of the project after rehabilitation will be used for residential rental purposes. e) A majority of the units will be two bedrooms or larger. f) Before rehabilitation, not more than 49% of the property's dwelling units are occupied by families whose incomes exceed 80% of the "Median Income by Family Size." g) After rehabilitation, 100% of vacant units will be initially occupied by families whose incomes do not exceed 80% of the "Median Income by Family Size" as published by the U. S. Department of Housing and Urban Development. L . G-� d agrees to pay all costs of such collection, including reasonable attorneys' fees and court costs. 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. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • IJ Y h) The minimum rental rehabilitation assistance required is $1,000 per unit, and the maximum per unit assistance does not exceed the below limits: Unit Size Maximum Assistance Efficiency Unit $5,000. 1 Bedroom Unit $6,500 2 Bedroom Unit $7,500 3 Bedroom Unit $8,500 4 Bedroom Unit $9,500 5 Bedroom Unit $10,500 Handicap Unit $2,000 * * Additional subsidy per handicapped unit. i) Your property is located within the boundaries designated on the attached map. j) Your property has one or more substandard conditions under local housing codes or federal Section 8 Housing Quality Standards (HQS). 4 . ELIGIBLE .REHABILITATION ACTIVITIES Eligible property rehabilitation activities are limited to those necessary to correct substandard conditions, to make essential improvements and to repair major systems in danger of failure. (Major systems include such items as roofs, ceilings, walls or floors, foundations, elevators, plumbing, heating and air conditioning, and electrical systems.) Rehabilitation may include repair, replacement or, in some cases,removal. After rehabilitation, properties must meet Section 8 Housing Quality Standards for Existing Housing (HQS) and City of Omaha Property Rehabilitation Standards (PRS). 5 . OTHER PROGRAM REQUIREMENTS a) Eligible Soft Costs Which Can Be Paid From the Federal Assistance 1) Architectural,engineering and legal services required in the preparation of rehab plans and work write-ups. 2) Costs of processing financing, such as private lender origination fees, title insurance,recording fees and credit reports. 3) Fees charged by a private lender for administrative costs. 4) Costs for "As Is" and "estimated after-rehab value" appraisals. b) Performance and Labor Materials Bond The owner/general contractor must provide a Performance and Labor Materials Bond. The bond shall be in the amount of the contract bid and shall list the City of Omaha as a co-obligee, and be provided to the Planning Director prior to loan closing and/or the start of construction. An Irrevocable Letter of Credit, in force for one year following the completion of the Rehabilitation Work, in an 2 5/95 fees and court costs. 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. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • aggregate amount of the contract bid, may be used in lieu of a Bond. The City reserves the right to reject the Letter of Credit and choice of surety for Bonds. c) Property During and After Rehabilitation The owner shall maintain the property being rehabilitated at all times in a safe and sanitary condition and conform to City housing codes and zoning ordinances. d) Taxes and Insurance All taxes, regular and special assessments levied against the property and property insurance must be paid up-to-date at the scheduled time for loan closing and must remain current throughout the term of the deferred payment loan. e) City Council Action Any project financed with $20,000 or more of Rental Rehabilitation funds requires City Council approval. This approval takes a minimum of four weeks. Projects using less than $20,000 in Rental Rehabilitation funds do not require City Council approval. f) Davis-Bacon Wage Rates Federal regulations require that laborers and mechanics employed in the rehabilitation of a project of eight or more dwelling units financed with Rental Rehabilitation Program funds be paid in compliance with Davis-Bacon wage rates. The Planning Department will provide a wage rate determination. These • wage rates, if applicable, are paid to all contractor and subcontractor employees working on the project. Owners of the contracting companies are exempt from the wage rate requirement; however, their number of hours worked must be reported. g) Lead-Based Paint • Section 401 (G)of the Lead-Based Paint Poisoning Prevention Act prohibits the use of lead-based paint in residential structures constructed or rehabilitated with any form of Federal assistance. Also, all existing lead-based painted surfaces must be property treated to reduce the incidence of poisoning. h) Use of Debarred.Suspended or Ineligible Contractors or Subrecipients Federally debarred, suspended or ineligible contractors or other employees may not be used on federally funded projects. i) Employment and Contracting Opportunities Compliance with applicable portions of Section 13 of the Omaha Municipal Code and Federal Executive Order 11246 and federal regulations is required for •all City and federally funded projects. These regulations provide that no person shall be discriminated against on the basis of race, color, religion, sex, political or religious opinions, affiliations, national origin, familial status, age, disability 3 5/95 bt evidenced by this Note. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • or handicap in all phases of employment during the performance of the construction contract. The Equal Housing Opportunity Logo must be displayed on the rehabilitation site and in the rental office while work is in progress. j) Commencement of Work The Owner shall not commence any work until such time as a written notice to proceed has been issued by the City. Any work performed prior to the issuance of such notice shall be the sole responsibility of the Owner and its cost cannot be counted as matching funds. k) Handicap Accessibility The design, construction and alteration of buildings shall insure, whenever possible, that physically handicapped persons will have ready access to, and use of, such buildings in accordance with the Uniform Federal Accessibility Standards (UFAS), 49 Federal Register 31620-31621, and any local building codes. Additional rules apply for buildings with 15 or more units. Questions should be addressed to Marian Todd, Planning Department Designated Representative, at 444-5216 or 444-5150(TDD). 1) Security Instruments At loan closing, the owner shall execute a promissory note and mortgage/deed of trust for the benefit of the City securing the deferred payment loan. The mortgage/deed of trust bears zero percent interest for a term of ten years. Monthly payments are not required and, if the owner abides by all of the conditions of the note, mortgage/deed of trust and Rental Rehabilitation Agreement, the loan is forgiven at the end of its term. If the property is sold prior to the expiration of the term of the loan, 100% of the loan monies are due and payable to the City. m) 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 the City Council. 6 . THE AFFIRMATIVE MARKETING PLAN The City of Omaha's Affirmative Marketing Policy for the Rental Rehabilitation Program is attached to this Owner's Guide. Owners must review the Affirmative Marketing Policy and follow applicable procedures. 1 4 5/95 discriminated against on the basis of race, color, religion, sex, political or religious opinions, affiliations, national origin, familial status, age, disability 3 5/95 bt evidenced by this Note. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 7 . FINANCING FOR RENTAL REHABILITATION UNITS a) Deferred Payment Loan The assistance will be in the form of an Investors' Deferred Payment Loan. This loan is payable in full only upon sale, grant, mortgage, assignment or other transfer of the property rights by the owner. If the owner retains title to the property for a period of ten years, the loan and the mortgage securing the lien will be released from the property. b) Private Financing The property owner will be responsible for securing private funds sufficient to match the City's Rental Rehabilitation Program funds and shall certify the avail- ability of these funds to the City. c) Disbursement of Funds Deferred Payment Loan and private financing funds will be disbursed proportionately as progress (interim) and final payments based on satisfactory inspection of the property. 8 THE REHABILITATION PROCESS This section will take you through the steps necessary to rehabilitate your rental property. a) The Application A telephone call to the Planning Department(444-5150)initiates the application process. A preliminary information packet is mailed to the owner at this time. Upon receipt and review of the completed application, a rehabilitation inspector will contact the owner to schedule an inspection of the rental property. b) The Inspection The Rehabilitation Inspector inspects the proposed project, unit by unit, and notes major code items that need repair. The owner should accompany the inspector. The owner is obligated to point out specific known housing code violations to the inspector. When the inspection is complete, the Rehabilitation Inspector discusses inspection findings with the owner and sends the owner a copy of the Property Evaluation Report and an Improvement Certificate. The Improvement Certificate will be used once you decide on your contractor. In order to receive financing under this program, all items included in the Property Evaluation Report must be repaired. The'inspection does not obligate or require the owner to make repairs in the event the project is cancelled prior to loan closing. c) The Contractor Using the list of necessary repairs included in the Property Evaluation Report and other desired improvements, the owner obtains written proposals from two 5 5/95_A 5/95 discriminated against on the basis of race, color, religion, sex, political or religious opinions, affiliations, national origin, familial status, age, disability 3 5/95 bt evidenced by this Note. -2 - Ol ction do not 83 Lam, tance is an eligible project cost. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • or more bonded and insured contractors. The written proposals should include a detailed list of the work and a bid price for the job. If Davis-Bacon Wage Rates apply, be sure to provide copies of the wage determination documents to the contractors bidding on the project. The wage documents may be obtained from the City and are to be incorporated into all contracts and subcontracts that you enter into for work on the Project. NOTE: The contractors must meet the requirements for City Rehabilitation Contractors. These are available from the Housing and Community Development Division of the City Planning Department. When a contractor is selected, the owner works with him/her to complete the program's Improvement Certificate. The certificate includes a general list of the work to be done and cost estimates. The certificate also includes a project budget and cash flow proposal form, as well as a Tenant Survey Form. Be sure that both the Contractor's written proposal and the Improvement Certificate include required work listed in the City's Property Evaluation Report. 9 . THE TENANT ASSISTANCE STRATEGY a) Tenant Survey The owner must complete and sign a Tenant Survey Form for each family residing in the property and attach these survey forms to the application submitted to the City. This information is required by the City to determine the level of tenant assistance needed. The family monthly gross income can be determined by asking the head of the household the family's gross annual income. Income from all family members nineteen years of age or older must be included in the gross annual income amount. b) Tenant Notification After the preliminary Rental Rehabilitation Program application has been approved by the City, but prior to loan closing, property owners must notify existing tenants, in writing, of involvement in the Rental Rehabilitation Program. Notification must include a copy of the City of Omaha Rental Rehabilitation Program Tenant Assistance Policy. c) Tenant Assistance Options During the period that the City and owner are analyzing the project, the owner shall devise a tenant assistance strategy based on information obtained on the tenant survey form(s). The tenant assistance strategy shall consider the options available to tenant-occupants during the construction phase of the rehabilitation project. According to the City's Tenant Assistance Policy, tenants may: 1) Remain in the present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • 3) Permanently relocate or voluntarily abandon the unit during rehabilitation. NOTE: Any relocation benefits must be paid by the owner. The City and the owner will examine each tenant's preferred option and will decide the necessary level of assistance. 10. THE LOAN APPLICATION To apply for a loan to match the Rental Rehabilitation funds, the owner should schedule an appointment to make loan application at the financial institution of his/her choice. The owner should have these documents at the time of loan application: a) Property Evaluation Report b) The Contractor's bid c) Completed Improvement Certificate d) Copies of the last two year's tax returns e) Verification of property ownership (copy of deed, abstract or title commitment) The lender will review the application and determine whether the owner qualifies for a loan. Once approved, the owner forwards the Loan Commitment, Improvement Certificate, contractor's bid, and application to the Planning Department. The Planning Department reviews the application to be sure that: a) Program eligibility requirements are met; b) All items on the Property Evaluation Report are included in the Improvement Certificate; c) The contract price is reasonable; d) The Tenant Assistance Strategy is equitable and appropriate; and e) The contractor meets program requirements. If the application meets all program criteria, the City enters into an agreement with the owner for the rehabilitation of the project. Following approval of the agreement by the City Council or the Mayor, a loan closing is scheduled. At this time, the owner is to provide the City 1) an insurance binder; 2) proof of bond; 3) proof of contractors liability insurance and 4)the Architectural and Engineering agreement. 11. CONSTRUCTION Before work begins, the owner and the contractor must: 1) arrange a preconstruction meeting with the Labor Standards Officer, if Davis-Bacon Wage Rates apply; 2) decide which units should be done first; 3) establish a relocation schedule, if applicable; 4) discuss materials; and 5) talk about special problems. Remember, you, 7 5/95�>7 owner shall devise a tenant assistance strategy based on information obtained on the tenant survey form(s). The tenant assistance strategy shall consider the options available to tenant-occupants during the construction phase of the rehabilitation project. According to the City's Tenant Assistance Policy, tenants may: 1) Remain in the present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • the property owner, are responsible for obtaining necessary City permit, supervising the contractor's work, resolving any disputes and paying the contractor. When payment is requested for a portion of the Federal funds, or when all work is completed, the owner must contact the Rehabilitation Inspector to schedule an inspection. When the Rehabilitation Inspector verifies the work is satisfactory, the Planning Department will process vouchers for progress (interim)payments and final payment: 12. NONDISCRIMINATION BASED ON HANDICAP The City of Omaha does not discriminate in admission or access to, or treatment or employment in, its federally assisted programs and activities. To this end, no otherwise qualified individual with handicap shall, solely by reason of his or her handicap, be excluded frdm participation in,be denied the benefits of, or be subjected to discrimination under this or any other City-sponsored program or activity: Persons desiring information on the City's Rental Rehabilitation Program nondiscrimination policies should contact Ms: Elsia Hobbs, Section 504 Coordinator, Planning Department, Suite 1111, 1819 Farnam Street, Omaha, NE, 68183, (402) 444-5169; (V/TDD 444-5150). Persons desiring to file a complaint with the City of Omaha concerning an allegation of discrimination shall contact the Human Relations Department at (402) 444.5055 (V/TDD 444-5055). • • l ow 8 5/95 the owner for the rehabilitation of the project. Following approval of the agreement by the City Council or the Mayor, a loan closing is scheduled. At this time, the owner is to provide the City 1) an insurance binder; 2) proof of bond; 3) proof of contractors liability insurance and 4)the Architectural and Engineering agreement. 11. CONSTRUCTION Before work begins, the owner and the contractor must: 1) arrange a preconstruction meeting with the Labor Standards Officer, if Davis-Bacon Wage Rates apply; 2) decide which units should be done first; 3) establish a relocation schedule, if applicable; 4) discuss materials; and 5) talk about special problems. Remember, you, 7 5/95�>7 owner shall devise a tenant assistance strategy based on information obtained on the tenant survey form(s). The tenant assistance strategy shall consider the options available to tenant-occupants during the construction phase of the rehabilitation project. According to the City's Tenant Assistance Policy, tenants may: 1) Remain in the present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • V ci o O ` % a ti _ . 8 `CC4 rey °er P8o Ik bi . Lo• st — ,C state K I • cc. Young Street ve 4 ,. ? d,,, .— Street «' .:, S.,,•;;< • . •w,a S MILLER t M „"'' . .. • •.rI°.t�1-� 1 1 •4 n I a ;, .i: .I' '+; '• EIGNBO',' . . , r •p•uY At.cap* r aly.. :; 'k , ilNi i ,�'+r''.; f� tc. NEIGHB•fir%'•mot e.M., ;�rti , "�r.:•rt-AACION D''P , till I ;'• ,�i"•`' i ITMy�y��•,■eM ■rl. Yv FAIR.. . . t_ : g� i .::: • `A;c S et . .w. '. b Aye �1.Zt, f%►,,• ,n.. • vr�a, , Street ° �� tk' ''' a til ,,'�• I t Y �,. 4_r,gyp`, OR + �� .ham " J. , ',`, v¢ pIW' �yl�t�� jj� F•," i 'n Avenue F '^� �ti;v �4li '••�1t�I N C... s i R9r. R / s • s •, . •. •• • good Ave . Iiitr S-tree4 q • 0' ll 1l1l 'm "' HOUSING & COMMUNITY x I H ERS o,,i I ,1_ I Dodge, :i,... ''x '''-`i Vic`"61ir ..'°-}9•i1HHm DEVELOPMENT PROGRAM MAP X ornan Meet=' Al 1111111111111isii!!!!I t Leaven th' MillA r-�T•TTUE1%a1 .;'•, •.• ,{Srv,a,.-',� i. f '^ I r ,:. .•," • ,;1.:,;1 I- ' '.;i 'i ..` '.:. ' ' T Center t- tt t'; S #� c . I -1 tt ,' , ,I.• , - �: •-•-•-•I TARGET AREA PROGRAM `' 'x ; ' , = ■' ,� :. '*. •r , NEIGHBORHOODS s+ 0 t▪ ,., .. • �r„ r? t N ; I • ' • ) V,777-- LOW AND MODERATE N >. ,. 1 ,' t r ,.''.:•'' INCOME AREA 4 r. THE SHADED AREA INDICATES THE LOCATION _ Me u ,4, + 3 i j `. • } 'ids =t',d• OF MOST OF THE CITY'S HOUSING AND .•, // N. 3,•; r' , COMMUNITY DEVELOPMENT ACTIVITY. pY:any.; . . f.£�.t ,� 4` m .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • CITY OF OMAHA AFFIRMATIVE MARKETING POLICY AND MONITORING PROCEDURES • 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 units because of their race or ethnicity: • know about the vacancies • feel welcome to apply have the opportunity to rent 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, and owners about its affirmative marketing policy and 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 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. .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • Owners shall use media accessible to minorities when advertising the availability of rental units . Owners shall uee 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 rental rehabilitation units may call the Omaha Housing Authority (OHA) (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. When rehabilitated units are available for initial occupancy, the owner shall inform the following outreach 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, Rental Rehabilitation Program, 1819 Farnam Street, Room 1111, Omaha, Nebraska 68183: . Chicano Awareness, Inc. 4821 South 24th Street Omaha, NE 68107 Native American Community Development Corp. 2226 Leavenworth Street Omaha, Nebraska 68102 . Family Housing Advisory Services 2416 Lake Street Omaha, NE 68111 • Urban League of Nebraska 3022 North 24th Street Omaha, NE 68111 3. Recordkeeping The City of Omaha will keep records of the following: . local media advertisements of the Rental Rehabilitation Program • • contact dates wit h outreach agencies and Omaha Housing Authority correspondence informing outreach agencies of vacancies • Race and gender data of initial occupants and persons inquiring about availability of units • Tenant Survey forms • I. -2- ir Housing Poster in their rental office. .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • 4. Assessment of Actions • The Owners' affirmative marketing efforts will be assessed by the City to: determine good faith efforts of Owners to affirmatively market vacant units; 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. Affirmative Marketing Policy Monitoring Procedures 1. Duties and Responsibilities of the Owner a) The Owner shall post the H.U.D. Equal Housing Opportunity Logo in the • building project, and in the rental office. b) The Owner shall submit to the City a copy of all letters notifying the • outreach agencies listed below of vacancies: • Omaha Housing Authority 540 South 27th Street • Omaha, NE 68105 . Chicano Awareness, Inc. 4821 South 24th Street • Omaha, NE 68107 . . Native American Community Development Corp. 2226 Leavenworth Street Omaha, NE 68102 • Family Housing Advisory Services 2416 Lake Street Omaha, NE 68111 • Urban League of Nebraska 3022 North 24th Street Omaha, NE 68111 • • 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 Racial/Gender Form, attached as Exhibit 1, which includes the name, racial/ethnic characteristics, income, family size, and gender for each person responding to the ' advertisement. e) The Owner shall meet with each in-place tenant and all tenants of • .initially. occupied vacant units and complete a Tenant Survey Form, a copy of. which is attached and marked Exhibit 2. -3- " `► I. -2- ir Housing Poster in their rental office. .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • f) The Owner shall submit to the City the original Tenant Survey Form and retain a copy for proper recordkeeping. • 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 Rental Rehabilitation Program. 2 Duties and ,Responsibilities of the City a) The City shall assess the affirmative-marketing procedures to determine good faith efforts of the Owner to affirmatively market the vacant units by monitoring the Owners' 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 Racial/Gender Form 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: . y Notify the Owner in writing of any violations of the Owners 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 in default. • • • -4- t Survey Form, a copy of. which is attached and marked Exhibit 2. -3- " `► I. -2- ir Housing Poster in their rental office. .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • EXHIBIT 1 RACE/GEIMER FORM Number of Loan No. Date Vacant Units Owner Project Address Person Completing Person's This Report Phone No. Home: Project Completion Date Work: Female Race/Ethnicity Head of Family Monthly of Head of Household Applicant Size Income Household Yes/No , A • • Corporation,a Nebraska Non-Profit Corporation By: 1-l-47 Name Date o5 riL2 Title P:\PLN2\4926.SAP - 3 - . obert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr EXHIBIT 2 CITY OF OMAHA RENT, REHABILITATION PROGRAM TENANT SURVEY FORM A. GENERAL INFORMATION RACE Name ' Telephone Address APT. # DATE FIRST OCCUPIED UNIT: Head of Household is: .`.._ Male Female Elderly Handicapped . Number of Occupants: Total No. Adults No. Children Under 18 GROSS MONTHLY INCOME OF HOUSEHOLD: Name Monthly Gross Income TOTAL GROSS MONTHLY INCOME $ B. . HOUSING CHARACTERISTICS: Monthly Housing Cost: Monthly Contract Rent $ Average Monthly Utility Coat $ Monthly Housing Cost $ Unit Size: Efficiency 1 BR 2 BR 3 BR Other C. TENANT ASSISTANCE RECOMMENDATIONS (If Applicable): Remain in Present Dwelling. _ Move to Another Dwelling in Building Rent Elsewhere Purchase . Subsidized Housing None Location/Neighborhood Contributions: Special Needs (Disabilities, Pets, Etc.) Size of Dwelling Required: Remarks: Owner Date eviewing the information provided on the Racial/Gender Form 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: . y Notify the Owner in writing of any violations of the Owners 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 in default. • • • -4- t Survey Form, a copy of. which is attached and marked Exhibit 2. -3- " `► I. -2- ir Housing Poster in their rental office. .lt,`F�y4i:rn 'r4)1•7 y'I;s■o.rI '•Av,, ,7,,irt ,.,..v.„; ' , r 4 \i ° , U,4 ill';' I F' _ ;i„.:.,tiHIGH • r Y� S T; l SOWN • , \e, , LV . .,,,,,..,„..,,,„,,, . . �x �,.., i t, N L 4'4 N f Y', A N he present unit during rehabilitation; 2) Move temporarily to another unit within the project while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • CITY OF OMAHA RENTAL REHABILITATION PROGRAM TENANT ASSISTANCE POLICY Introduction This Tenant Assistance Policy describes the assistance that will be provided to residential tenants who reside in projects to be rehabilitated under the City of Omaha's Rental Rehabilitation Program (RRP). A primary objective of the Rental Rehabilitation Program is to minimize displacement. This is accomplished by providing tenants a reasonable opportunity to lease and occupy a suitable, • decent, safe, sanitary and affordable dwelling unit in the rehabilitated property following completion of the project,to the maximum extent feasible. In some instances, such as overcrowded living conditions, displacement of tenants is necessary. However, this Tenant Assistance Policy provides that no tenant will be considered displaced if the tenant has been offered a suitable unit in the completed project at an affordable rent. Section 1 - General All persons occupying a proposed Rental Rehabilitation property will be issued a written notice of the project and a copy of this Tenant Assistance Policy. Tenants are cautioned not to move prematurely because they may not be displaced by the project or they may disqualify themselves for relocation assistance. If the project is not approved or not funded, tenants will be notified of this determination as soon as practical. After a RRP application is received by the City,but prior to execution of an agreement between the property owner and the City, each tenant will be contacted and requested to provide pertinent household information. This information is required prior to the approval of RRP assistance, and will be used by the property owner and the City of Omaha to determine the level of tenant assistance needed. During this time,the following tenant options will be considered: 1. The tenant will be offered a suitable unit in the property at an affordable rent. 2. The tenant will be considered for temporary relocation while his/her unit is being rehabilitated. 3. The determination will be made that a tenant must be permanently relocated from the property. 4. The tenant may consider voluntarily abandoning the property. As soon as the above determinations are made, an agreement may be entered into between the property owner and the City. Promptly after the execution of the agreement with the owner, each tenant will be issued a notice either: 1. explaining the reasonable terms and conditions under which they may lease and occupy the property following completion of the rehabilitation, including the rent amount to be charged; or, 2. indicating eligibility for relocation assistance and describing the assistance available. I while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • The resources that are available to assist tenants will be provided by the property owner. Section 2 - Tenant Assistance Tenants Who Will Not Be Displaced In most instances, tenants will remain in their units while the property is being renovated. Upon completion of the rehabilitation,tenants may lease and occupy their units at an affordable rent. For lower income tenants, that is tenants whose household income is 80% or less than the Median Family Income, the new rent, including estimated average utility costs, will not exceed the greater of: (1) the tenant's rent and estimated average utility costs before the execution of the RRP agreement between the property owner and the City; or (2) the Total Tenant Payment, as determined under Section 8 assistance regulations. • For tenants who are mt lower income, the new rent, including estimated average utility costs, will not exceed the greater of: (1) the tenant's rent and estimated average utility costs before the execution of the RRP agreement between the property owner and the City; or(2) 30 percent of the tenant's gross household income. Tenants Who Will Be Temporarily Relocated Tenants who will be temporarily relocated will be offered a suitable unit in the property at an affordable rent upon completion of the rehabilitation. In addition, such tenants will be offered payment for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increased rent and utility costs. All other conditions of the temporary relocation will be reasonable. Tenants Who Will Be Permanently Relocated In certain situations, permanent displacement is necessitated by the extent of the proposed rehabilitation, an overcrowded housing situation or a new rental payment requirement that exceeds the definition of affordable rent. The assistance which will be provided to permanently displaced persons is described in the attached Relocation Informational Booklet. Tenants Who Do Not Quality as Displaced Persons The following persons do not qualify as displaced persons:= 1. A tenant who voluntarily moves. 2. A tenant who is offered a suitable, affordable unit in the project who elects to move. 3. A tenant who has been evicted for cause. 4. A tenant who moves into the property after the owner's submission of the request for assistance,but before commencing occupancy received written notice of the owner's intent to terminate the person's occupancy for the project. 5. The person is an owner-occupant who moves from the property. 6. The person is deemed ineligible by the City. I while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • • 7. The City determines that the displacement was not a direct result of acquisition,rehabilitation or demolition of the project. Section 3 - Fair Housing and Non-Discrimination This Tenant Assistance Policy provides that persons displaced from a dwelling will be provided a choice between relocating within their neighborhoods and other neighborhoods consistent with fair housing policies. No tenant will be discriminated against in providing information, counseling, referrals or other relocation services to persons displaced by RRP activities. No administrative action will be tolerated which may result in the displacement or unequal treatment of persons because of their race, color, religion, sex, age, handicap, national origin, familial status or political affiliation. The City of Omaha does not discriminate in admission or access to,or treatment or employment in, its federally assisted programs and activities. To this end, no otherwise qualified individual with handicap shall, solely by reasons of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under this or any other City-sponsored program or activity. The person responsible for coordinating the Planning Department's efforts to comply with its non-discrimination policies is Marian Todd, Section 504 Coordinator, Planning Department, Suite 1111, 1819 Farnam Street, Omaha, NE, 68183, (402) 444-5217; (V/TDD 444- 5150). Persons desiring to file a complaint with the City of Omaha concerning an allegation of discrimination shall contact the Human Relations Department at (402) 444-5055 (V/TDD 444-5055). Section 4 - Effective.Date The effective date of this Tenant Assistance Policy is September 6, 1996. • nt of the proposed rehabilitation, an overcrowded housing situation or a new rental payment requirement that exceeds the definition of affordable rent. The assistance which will be provided to permanently displaced persons is described in the attached Relocation Informational Booklet. Tenants Who Do Not Quality as Displaced Persons The following persons do not qualify as displaced persons:= 1. A tenant who voluntarily moves. 2. A tenant who is offered a suitable, affordable unit in the project who elects to move. 3. A tenant who has been evicted for cause. 4. A tenant who moves into the property after the owner's submission of the request for assistance,but before commencing occupancy received written notice of the owner's intent to terminate the person's occupancy for the project. 5. The person is an owner-occupant who moves from the property. 6. The person is deemed ineligible by the City. I while his/her unit is being rehabilitated; 1 6 5/95 t. This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. October 22,1991 2 • mac o a 0 `0- `o o m C. U p y 1 _ p ta C U C m U -- O CO C O C 0 C Ti ° m L O m co . H N m 0 0 - C O m U H O .. a U L.0 O m 0. • y d `� a co p Q O.O C p m 47 C A m i s H 7 0 E C m O t� CP C.m 0.m 0 0 0 C C 0 L C y c O O > • E.c m = TO an o m m.min m .0 o �.-� c H m o m o I- o 3� y m a, m E 0. E �� m S c a Q o a o < , • =m > m m E `W of c a _o m o Z 2 m m a�.0 Cf 0 to .0 - C 0. L C m m m p LU 0) 41 F„ m 4 0 pf Q Z C'- o C 0 m CL m c0 C 7 m as C •6f m m a 0• m m O 0.U a O a 0 A•C C C. m m m • c co O a C 7 U V = 0._ C m O p Q m > m C of O tmf C p p m� m tL p,0. S7 3 C 3 m� U a C UCD co m . T m m C. 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This cost also may be paid from State or local funds, or funds available from other sources. 82 e were not a director or officer of such corporation, firm, syndicate or association, or a member of such partnership or joint venture, or pecuniarily or otherwise interested in such contract or transaction. Corporndon Cont.ulunn V.C. 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X 7 R1 _ 0 C O G: p 0 m•o 0 m x m co cn 0 C C D m c a m n m 7 c 0 7. f= o m '03 o w c ^ H o nc ° > a am 3r. la= 13/ ° m mw = Cmc m a °00 ^ am.c * m m 0C cm .0 0-0 ! 7 cm 7 j O Cm , o m m ' yO m `< a 0 m ; -0' m c0 - n O • CO o 0 < ma0 O c _ Co"( gmm 3f CNm 0 C O m m m O Q x = c.- = a, . O ? mm 0. a0 • G IDC7C C "< Cmawr. 0 . a p m .0 - co ..o. CmNc.m 0 mmW ft 0 m 0 m = am0 0 C "< 0 ° 0 o ° 3 mm Ayoc . mo Lb. m ? m mm m °o o m 3 w m _mT • U In im ? N3 �' - gym3 ° � ° cfl-40 m Q7 2 m g. ° o 3 =° o n � Wm mO m 3 0°_ - 7 3 0 3 � "c - a3 0 _ • N 0 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a . • Exh �, ;h -I- „ " z n) : N -, o 2. CD d CD _A J. D 0 = N 1 0 CD C)O V CA Cn .4 CA N .0 °'a 0O N C CD .* 0 _ = N� 00 T 3 a) -.4co -. '11 D CD co lD N CZ3 c a 3 7 n .z d O < fA Efl EA EA Efl fA fA -CA EA Efl EA fA W o O c coW Ca) W N N N N N -+ 01 co N C/) a CT CO V Cn W -1 CO --4 Cn w -4 CD CD • ( a CD CD cn CD mi. CD CD 0 N CO U1 CA -403 0 C)) 0 CD cn cn Cn cn al cn cn cn cn o cn o sr,- g ° 0 0 0 0 0 0 0 0 0 0 0 0 o 1 a) . , = C. COD c - m 00 ma CD I _ o 0 0. 3 CC a fA EA EA fA EA EA EA EA EA fA EA EA j cs.< CD CS ,rt . CA CO Ca) CO W N N N N CCD Cl) 0 CD N CD V cn co O co cn N O •O K " al cn O O O cn cn O O O O O �0 � -.. CD 0 0 0 0 0 0 0 0 0 0 0 0 3 ...,z. O3 = 0 3O a co 'II iv O C a -41 _4. CD N n A ..r co -EA EA fA EA EA -EAfA EA EA fA fA fA O (13 O 3 o a fA al 41. A 4 .A CO CA CA G.) N N N cn Cv -0 3 al to 3 cn▪ C1 O Cb Cn CA 0 co cn co 0 V . -4 . -z CD CA --4N --4GJ COG.) OO ---4 -4CA C 3 fa)-w O O Cn cn O O Cn O O cn cn cn O cn •T1� C O 3 p 0 0 0 0 0 0 0 0 0 0 0 0 ° O p) CD O _ 0 0 < (. `< 0) C EA EA EA EA EA fA . EA EA EA EA EA 5 Cl) ID Cn C)1 01 - . - GO CO CO N N v 3 fD N '< Cb Cn N CD V . -1 CO Cn N CO - CD 3 0 co p) 4 n V cD O 1 co Cn -co O n CD r 'a (D 3 o cn o 0 o 01 o 0 0 0 o 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a • E)(h;bit ►,F" �Cr 4,00w\ U.S.Department of Housing and Urban Development it I 1*; Kansas/Missouri State Office I Room 200 OhAZO+'� Gateway Tower II 400 State Avenue Kansas City,KS 66101-2406 April 29, 1997 DAVIS-BACON WAGE DETERMINATION TRANSMITTAL TO: Ms. Pat Evans Planner City of Omaha 1819 Farnam Street, Suite 1111 Omaha, NE 68183 FROM: Frank C. Bustamante, Labor Relations Director, 7ASRL SUBJECT: Wage Determination Number: NE970011 dtd 2-14-97 Project Number/Identification: CDBG - 1997-6 (Bull Durham Apts., rehab of 48 units and commercial space.) Program: Community Development Block Grant xxxx Initial issuance of wage determination Issuance of subsequent Modification(s) Issuance of a New Calendar Year wage determination Reissuance (to replace a previous determination) Number(s) and publication date(s): Grantee responsibilities are explained in the Labor Standards Handbook, 1344.1, REV-1, GH-1. Examples regarding this determination include: - Use, effectiveness, and expiration of wage determinations (Paragraph 2-5). - Requesting additional worker classification (Paragraph 2-6). - Insuring that the wage determination and the labor standards provisions, HUD-4010, are included in the contract, subcontracts, and bid documents (Paragraph 2-7). - Posting the determination and the "Notice to all Employees" (Paragraphs 2-8 and 3-2a). Please complete and submit to the Labor Relations Branch the "NOTICE OF START OF CONSTRUCTION" and the "LABOR STANDARDS ENFORCEMENT REPORT." (These and the required poster are sent to you with the initial determination issuance.) Contact Jack Phillips or Barbara Christensen-McGonagle of the Labor Relations Branch, at (913) 551-6881 or (913) 551-6883, immediately if there are questions or IF THE BIDDING PROCESS HAS STARTED OR THE CONTRACT HAS BEEN AWARDED. I cn •T1� C O 3 p 0 0 0 0 0 0 0 0 0 0 0 0 ° O p) CD O _ 0 0 < (. `< 0) C EA EA EA EA EA fA . EA EA EA EA EA 5 Cl) ID Cn C)1 01 - . - GO CO CO N N v 3 fD N '< Cb Cn N CD V . -1 CO Cn N CO - CD 3 0 co p) 4 n V cD O 1 co Cn -co O n CD r 'a (D 3 o cn o 0 o 01 o 0 0 0 o 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a General Decision Number NE970011 • Superseded General Decision No. NE960011 State: Nebraska Construction Type: BUILDING County(ies) : DOUGLAS WASHINGTON BUILDING CONSTRUCTION PROJECTS (does not include residential construction consisting of single family homes and apartments up to and including 4 stories) Modification Number Publication Date 0 02/14/1997 a NE970011 Page: 1 7 ,� j-41,\\4\� I _ . Name Date o5 riL2 Title P:\PLN2\4926.SAP - 3 - . obert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr - a , . COUNTY(ies) : DOUGLAS WASHINGTON ASBE0039B 06/01/1996 Rates Fringes INSULATOR/ASBESTOS WORKER Includes the application of all insulating materials, protective coverings, coatings and finishings to all types of mechanical systems 19.66 6.74 BRNE0001E 06/01/1996 Rates Fringes WASHINGTON COUNTY: BRICKLAYER: Work on power plants, ethanol plants, food processing plants and heavy industrial plants (i.e. , automotive manufacturing plants or similar facilities) 17 .27 4 .355 All other work 17 .275 3.00 BRNE0001H 06/01/1996 Rates Fringes DOUGLAS COUNTY: BRICKLAYER 17 .27 4.355 CARP0444A 01/01/1997 Rates Fringes CARPENTERS: (includes acoustical ceiling, batt insulation and drywall installer work) : Carpenter; Piledriver 15.75 3.76 ELEC0022A 06/01/1996 Rates Fringes ELECTRICIAN 20 .00 3.5% + 5.89 ELEV0028A 07/03/1996 Rates Fringes ELEVATOR MECHANIC 19.48 6. 12 FOOTNOTE: Vacation Pay: 8% with 5 or more years of service, 6% for 6 months to 5 years service. Paid Holidays: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and '� NE970011 Page: 2 START OF CONSTRUCTION" and the "LABOR STANDARDS ENFORCEMENT REPORT." (These and the required poster are sent to you with the initial determination issuance.) Contact Jack Phillips or Barbara Christensen-McGonagle of the Labor Relations Branch, at (913) 551-6881 or (913) 551-6883, immediately if there are questions or IF THE BIDDING PROCESS HAS STARTED OR THE CONTRACT HAS BEEN AWARDED. I cn •T1� C O 3 p 0 0 0 0 0 0 0 0 0 0 0 0 ° O p) CD O _ 0 0 < (. `< 0) C EA EA EA EA EA fA . EA EA EA EA EA 5 Cl) ID Cn C)1 01 - . - GO CO CO N N v 3 fD N '< Cb Cn N CD V . -1 CO Cn N CO - CD 3 0 co p) 4 n V cD O 1 co Cn -co O n CD r 'a (D 3 o cn o 0 o 01 o 0 0 0 o 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a Friday after, and Christmas Day. • ENGI0571E 01/01/1997 Rates Fringes POWER EQUIPMENT OPERATORS: Bulldozer 16.35 3.89 Crane 18.05 3.89 IRON0021E 01/01/1997 Rates Fringes IRONWORKERS, ORNAMENTAL AND STRUCTURAL 17 .42 4 .59 LABO1140B 01/01/1997 Rates Fringes DOUGLAS COUNTY: LABORERS: Cleaning of all floors, walls, ceilings, bathrooms, all fixtures and the removal of all debris within the confines of the structure 11.22 2.75 Concrete puddler, concrete vibrating, concrete power buggy operator, laser operator, cutting torch operator, concrete saw and core drill operator, gypsum nozzle and gunite nozzle operator 12 .72 2.75 PLAS0538A 10/01/1996 Rates Fringes CEMENT MASON 15.73 3.78 PLAS0538E 06/01/1996 Rates Fringes PLASTERERS: Plasterer 16. 10 3.68 Plasterer working on a swing stage 16.60 3.68 PLasterer nozzleperson 16.75 3.68 PLUM0016C 06/01/1996 Rates Fringes PLUMBER 21. 17 5.05 NE970011 Page: 3 (1 )7 '1 , Memorial Day, Independence Day, Labor Day, Thanksgiving Day and '� NE970011 Page: 2 START OF CONSTRUCTION" and the "LABOR STANDARDS ENFORCEMENT REPORT." (These and the required poster are sent to you with the initial determination issuance.) Contact Jack Phillips or Barbara Christensen-McGonagle of the Labor Relations Branch, at (913) 551-6881 or (913) 551-6883, immediately if there are questions or IF THE BIDDING PROCESS HAS STARTED OR THE CONTRACT HAS BEEN AWARDED. I cn •T1� C O 3 p 0 0 0 0 0 0 0 0 0 0 0 0 ° O p) CD O _ 0 0 < (. `< 0) C EA EA EA EA EA fA . EA EA EA EA EA 5 Cl) ID Cn C)1 01 - . - GO CO CO N N v 3 fD N '< Cb Cn N CD V . -1 CO Cn N CO - CD 3 0 co p) 4 n V cD O 1 co Cn -co O n CD r 'a (D 3 o cn o 0 o 01 o 0 0 0 o 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a ' PLUM0464B 06/01/1996 " Rates Fringes PIPEFITTER: (includes HVAC piping) 20.86 6.03 SFNE0669A 01/01/1996 Rates Fringes SPRINKLER FITTER (FIRE) 19.51 6.28 SHEE0003B 07/01/1996 Rates Fringes SHEET METAL WORKER: (includes HVAC duct work) 19.72 5. 16 SUNE1006B 09/01/1988 Rates Fringes DRYWALL FINISHER 11.30 GLAZIER 9.85 2.92 LABORERS: WASHINGTON COUNTY: Common laborer 8 .20 1.50 Buggymobile, mason tender and mortar mixer 8.375 1.50 Plasterer tender 8.585 1.50 PAINTER (excluding drywall finisher) 10.78 POWER EQUIPMENT OPERATORS: Backhoe 12 .27 2.48 Grader 11.82 1.00 Loader 12 .03 1.79 Roller 9.86 1.41 Scraper 11.74 1.65 Tamper 13.95 3.07 ROOFER 9.24 .99 SOFT FLOOR LAYER 13. 15 TILE SETTER 15.20 TRUCK DRIVER 9. 14 1.22 WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29 CFR 5.5(a) ( 1) (v) ) . In the listing above, the "SU" designation means that rates (E)- NE970011 Page: 4 issuance.) Contact Jack Phillips or Barbara Christensen-McGonagle of the Labor Relations Branch, at (913) 551-6881 or (913) 551-6883, immediately if there are questions or IF THE BIDDING PROCESS HAS STARTED OR THE CONTRACT HAS BEEN AWARDED. I cn •T1� C O 3 p 0 0 0 0 0 0 0 0 0 0 0 0 ° O p) CD O _ 0 0 < (. `< 0) C EA EA EA EA EA fA . EA EA EA EA EA 5 Cl) ID Cn C)1 01 - . - GO CO CO N N v 3 fD N '< Cb Cn N CD V . -1 CO Cn N CO - CD 3 0 co p) 4 n V cD O 1 co Cn -co O n CD r 'a (D 3 o cn o 0 o 01 o 0 0 0 o 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a listed under that identifier do not reflect collectively bargained wage and fringe benefit rates. Other designations - indicate unions whose rates have been determined to be prevailing. WAGE DETERMINATION APPEALS PROCESS 1. ) Has there been an initial decision in the matter? This can be: * an existing published wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2 . ) and 3 . ) should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to: Branch of Construction Wage Determinations Wage and Hour Division U. S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 2 . ) If the answer to the question in 1. ) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7 ) . Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc. ) that the requestor considers relevant to the issue. 3. ) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board) . Write to: NE970011 Page: 5 01 m - 'O yN• a 0 o 0 0 0 0 0 0 0 0 0 0 3 3 0) A y.�► CD 0 CA (D ' ... n y C D 3 '0. <' '* 3 a m 01 CD 0 = CD C 3 0 • .+. C. EA EA EA EA EA EA -EA EA EA fA EA EA CD 7 0) Cn CA CJ1 01 . . C..) Ca) GJ N 0 U) _ O N CO co co V .? 1 C) . O co O 3 0 3 W co N N 1 -L O O N P O n n O O Cn O u1 O o 01 O O O cn ° CS = o (D 0 O O O O O O O O O o O O 0 co CD V CD 1 CD -w (O 3 EA EA fA EA EA fA fA EA fA EA EA EA co --4 -4 0) 0) CCT; cn cn .A .A COCO °;V V . 0 C) N co 01 -+ V N op Co K cD -+ CA -cn V CD W -cn V O CA 0 O O O O O O O O O O O 0 N 0 0 0 0 0 O O O 0 O 0 0 ° ni Cr m fa fA fA EA fA fA EA fafA fA EA fA ...a.to Cp co V V V Cr) CA Cn Cn 4. G) CO CO 41, CD cn o co -4 V (xi co N In tD co co N V -L In O N a) CD 0 O O cn O cn O O cn O cn O cn ,. , O o 0 O O O O O O o O O 0 o 7 3 -4 O m o -. ? o - 7• 7 < -► 3 m c) O m 7 m < N O O .d.. ,. .6,a 7.. En—3 3 co m N 3 c° C m c_ o ma °cw� 9 �w o cNnmo a3 =m CO. 0 mo ° � = m•CO m`<o 0 o, ^ m m... m c.).< y o C --<d °: 3 3 v• m °c _- CD m a-(1' 0 3 �'c o m 7 3 oc n O N H co A .7•. C Cn o n j m 3 c ?0 7 7 30 m 0 w 0 m m' o d a o m= 0 3 O r- C n ^'c O 7 p � tOD t= w3 ma- o m"c CO C -°aim f2 o`cy m H D "3 W 0 CD p 0 O c o Q f ^ v' O.3 0 �< nmw rntfl- 3 - 00 7ID o = " oy C0 _ 0c mc0 3 7Om O.< ma ^ tD 3 07 C C _ H m Q C _ G m 0 a O C °.< c? 0 7 CO CD ....I. o _ a`C m p C x 0 c " 0 nan mmD C C O m m m <0 O ° ^ am o C Ca, _ -• o mm 0i c OO 7 a m ' tom • cm nm _ m e mm C o -9 n o 3 = flu _ cc, O._ _ O = p,v :c m°"G m m ! mG ` 7 5mDa O- C a • Administrative Review Board U. S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 4. ) All decisions by the Administrative Review Board are final. END OF GENERAL DECISION NE970011 Page: 6 A homes and apartments up to and including 4 stories) Modification Number Publication Date 0 02/14/1997 a NE970011 Page: 1 7 ,� j-41,\\4\� I _ . Name Date o5 riL2 Title P:\PLN2\4926.SAP - 3 - . obert DeLay Secretary and Treasurer - Lisa A. Burks There being no further business, the meeting was adjourned. Lisa A. Burks, Secretary 01/528642.1 unr ` '. Federal Labor Standards Provisions U.S. Department of Housing If^ and Urban Deveopment 1 r Applicability The Project or Program to which the construction work covered by this HUD or its designee shall refer the questions,including the views of all contract pertains is being assisted by the United States of America and the interested parties and the recommendation of HUD or its designee.to the following Federal Labor Standards Provisions are included in this Contract Administrator for determination.The Administrator,or an authorized repre- pursuant to the provisions applicable to such Federal assistance. sentative,will issue a determination within 30 days of receipt and so advise A.1.(I)Minimum Wages.All laborers and mechanics employed or work- HUD or its designee or will notify HUD or its designee within the 30-day ing upon the site of the work(or under the United States Housing Act of period that additional time is necessary.(Approved by the Office of Man- 1937 or under the Housing Act of 1949 in the construction or development agement and Budget under OMB Control Number 1215-0140.) of the project),will be paid unconditionally and not less often than once a (d)The wage rate(including fringe benefits where appropriate) week,and without subsequent deduction or rebate on any account(except determined pursuant to subparagraphs(1}(b)or(c)of this paragraph,shall such payroll deductions as are permitted by regulations issued by the be paid to all workers performing work in the classification under this con- Secretary of Labor under the Copeland Act(29 CFR Part 3),the full amount tract from the first day on which work is performed in the classification. of wages and bona fide fringe benefits(or cash equivalents thereof)due at (hi)Whenever the minimum wage rate prescribed in the contract for a time of payment computed at rates not less than those contained in the class of laborers or mechanics includes a fringe benefit which is not wage determination of the Secretary of Labor which is attached hereto and expressed as an hourly rate,the contractor shall either pay the benefit as made a part hereof,regardless of any contractural relationship which may stated in the wage determination or shall pay another bona fide fringe be alleged to exist between the contractor and such laborers and benefit or an hourly cash equivalent thereof. mechanics.Contributions made or costs reasonably anticipated for bona (iv)If the contractor does not make payments to a trustee or other third fide fringe benefits under Section 1(bX2)of the Davis-Bacon Act on behalf person,the contractor may consider as part of the wages of any laborer or of laborers or mechanics are considered wages paid to such laborers or mechanic the amount of any costs reasonably anticipated in providing mechanics,subject to the provisions of 29 CFR-5.5(a)(1Xiv):also,regular bona fide fringe benefits under a plan or program,Provided.That the contributions made or costs incurred for more than a weekly period(but Secretary of Labor has found,upon the written request of the contractor. not less often than quarterly)under plans,funds,or programs.which cover that the applicable standards of the Davis-Bacon Act have been met.The the particular weekly period,are deemed to be constructively made or Secretary of Labor may require the contractor to set aside in a separate incurred during such weekly period. account assets for the meeting of obligations under the plan or program. Such laborers and mechanics shall be paid the appropriate wage rate (Approved by the Office of Management and Budget under OMB Control and fringe benefits on the wage determination for the classification of work Number 1215-0140.) actually performed,without regard to skill,except as provided in 29 CFR 2.Withholding.HUO or its designee shall upon its own action or upon Part 5.5(a)(4).Laborers or mechanics performing work in more than one. written request of an authorized representative of the Department of Labor classification may be compensated at the rate specified for each classifica- withhold or cause to be withheld from the contractor under this contract or tion for the time actually worked therein:Provided.That the employer's pay- any other Federal contract with the same prime contractor,or any other roll records accurately set forth the time spent in each classification in Federally-assisted contract subject to Davis-Bacon prevailing wage which work is performed.The wage determination(including any additional requirements,which is held by the same prime contractor so much of the classification and wage rates conformed under 29 CFR Part 5.5(ax1 Xii)and accrued payments or advances as may be considered necessary to pay the Davis-Bacon poster(WH-1321)shall be posted at all times by the con- laborers and mechanics,including apprentices,trainees and helpers. tractor and its subcontractors at the site of the work in a prominent and employed by the contractor or any subcontractor the full amount of wages accessible place where it can be easily seen by the workers. required by the contract.In the event of failure to pay any laborer or (ii)(a)Any class of laborers or mechanics which is not listed in the mechanic,including any apprentice.trainee or helper,employed or working wage determination and which is to be employed under the contract shall on the site of the work(or under the United States Housing Act of 1937 or be classified in conformance with the wage determination.HUD shall under the Housing Act of 1949 in the construction or development of the approve an additional classification and wage rate and fringe benefits project),all or part of the wages required by the contract.HUD or its desig- therefore only when the following criteria have been met nee may.after written notice to the contractor,sponsor,applicant or owner. (1)The work to be performed by the classification requested is not take such action as may be necessary to cause the suspension of any performed by a classification in the wage determination;and further payment advance.or guarantee of funds until such violations have (2)The classification is utilized in the area by the construction ceased.HUD or its designee may,after written notice to the contractor.dis- industry;and burse such amounts withheld for and on account of the contractor or sub- (3)The proposed wage rate,including any bona tide fringe bene- contractor to the respective employees to whom they are due.The Comp- fits,bears a reasonable relationship to the wage rates contained in the troller General shall make such disbursements in the case of direct wage determination. Davis-Bacon Act contracts. (b)If the contractor and the laborers and mechanics to be employed 3.(I)Payrolls and basic records.Payrolls and basic records relating in the classification(if known),or their representatives,and HUD or its thereto shall be maintained by the contractor during the course of the work designee agree on the classification and wage rate(including the amount preserved for a period of three years thereafter for all laborers and designated for hinge benefits where appropriate),a report of the action mechanics working at the site of the work(or under the United States taken shall be sent by HUD or its designee to the Administrator of the Wage Housing Act of 1937.or under the Housing Act of 1949.in the construction and Hour Division,Employment Standards Administration.U.S.Department or development of the project).Such records shall contain the name. of Labor,Washington.D.C.20210.The Administrator,or an authorized address,and social security number of each such worker,his or her cor- representative,will approve,modify,or disapprove every additional classifi- rect classification,hourly rates of wages paid(including rates of contribu- cation action within 30 days of receipt and so advise HUD or its designee tions or costs anticipated for bona fide fringe benefits or cash equivalents or will notify HUD or its designee within the 30-day period that additional thereof of the types described in Section 1(b)(2XB)of the Davis-b:con Act). time is necessary.(Approved by the Office of Management and Budget daily and weekly number of hours worked,deductions made and actual under OMB control number 1215-0140.) wages paid.Whenever the Secretary of Labor has found under 29 CFR 5.5`, (c)In the event the contractor,the laborers or mechanics to be (a)(1)0v)that the wages of any laborer or mechanic include the amount of employed in the classification or their representatives,and HUD or its any costs reasonably anticipated in providing benefits under a plan or pro- designee do not agree on the proposed classification and wage rate gram described in Section 1(b)(2XB)of the Davis-Bacon Act the Contractor (including the amount designated for fringe benefits,where appropriate), shall maintain records which show that the commitment to provide such I/ HUD-4010(2.84) Previous Edition is Obsolete (HB 1344.1) i • ben ffts4s enforceable,that the plan or program is financially responsible, apprentice.The allowable ratio of apprentices to journeymen on the job site and that the plan or program has been communicated in writing to the in any craft classification shall not be greater than the ratio permitted to the laborers or mecr,anics affected,and records which show the costs antici- contractor as to the entire work force under the registered program.Any pared or the actual cost incurred in providing such benefits.Contractors worker listed cn a payroll at an apprentice wage rate.wno is not registered employing apprentices or trainees under approved programs shall maintain or otherwise employed as stated above.shall be paid not less than the written evidence of the registration of apprenticeship programs and certifi- .applicable wage rate on the wage determination for the classification of cation of trainee programs.the registration of the apprentices and trainees. work actually performed.In addition,any apprentice performing work on and the ratios and wage rates prescribed in the applicable programs. the lob site in excess of the ratio permitted under the registered program (Approved by the Office of Management and Budget under OMB Control shall be paid not less than the applicable wage rate on-the wage determi- Numbers 1215-0140 and 1215-0017.) .nation for the work actually performed.Where a contractor is performing (ii)(a)The contractor shall submit weekly for each week in which any 'construction on a'project in a localityother than that in which its program is contract work is performed a copy of all payrolls to HUD or its designee if registered,the ratios and wage rates(expressed in percentages of the jour- the agency is a party to the contract but if the agency is not such a party. •neyman's hourly rate)specified-in the contractor's or subcontractor's regis- the contractor will submit the payrolls to the applicant sponsor,or owner, tered program shall be observed.Every apprenctice must be paid at not as the case may be.for transmission to HUO or its designee.The payrolls less than the rate specified in the registered program for the apprenuce's submitted shall set out accurately and completely all of the information level of progress.expressed as a percentage of the journeymen hourly rate required to be maintained under 29 CFR Part 5.5(a)(3)(i).This information• specified in the applicable wage determination.Apprentices shall be paid may be submitted in any form desired.Optional Form WH-347 is available fringe benefits in accordance with the provisions of the acprenticeship for this purpose and may be purchased from the Supenntendent of Docu- program.If the apprenticeship program does not specify fringe benefits. ments(Federal Stock Number 029-005-00014-1),U.S.Government Printing apprentices must be paid the full amount of fringe benefits listed on the Office.Washington.DC.20402.The prime contractor is responsible for the wage determination for the applicable classification.If the Administrator submission of copies of payrolls by all subcontractors.(Approved by the determines that a different practice prevails for the applicable apprentice Office of Management and Budget under OMB Control Number • ._... classification,fringes shall be paid in accordance with that determination.In 1215-0149.) the event the Bureau of Apprenticeship and Training,or a State Appren- • (b)Each payroll submitted shall be accompanied by a"Statement of ticeship Agency recognized by the Bureau.withdraws approval of an Compliance."signed by the contractor or subcontractor or his or her agent apprenticeship program,the contractor will no longer be permitted to utilize who pays or supervises the payment of the persons employed underthe... apprentices at less than the'applicabfe predetermined rate for the work ontract and shall certify the following: performed until an acceptable program is approved. • (1)That the payroll for the payroll period contains the information (ii)Trainees.Except as provided in 29 CFR 5.16.trainees will not be -quired to be maintained under 29 CFR Pan 5.5(a)(3)(i)and that such permitted to work at less than the predetermined rate for the work per • - •tormation is correct and complete: formed unless they are employed pursuant to and individually registered in (2)That each laborer or mechanic(including each helper. . a program which has received prior approval.evidenced by formal certifi- :pprentice.and trainee)employed on the contract during the payroll period cation by the U.S.Department of Labor,Employment and Training Admini- ras been paid the full weekly wages earned.without rebate,either directly stration.The ratio of trainees to journeymen on the job site shall not be or indirectly,and that no deductions have been made either directly or indi- greater than permitted under the plan approved by the Employment and• rectty from the full wages earned,other than permissable deductions as set Training Administration.Every trainee-must be paid at not less than the rate forth in 29 CFR Part 3: specified in the approved program for the trainee's level of progress. (3)That each laborer or mechanic has been paid not less than the expressed as a percentage of the joumeymarrho'rly rate specified in the applicable wage rates and fringe benefits or cash equivalents for the etas= applicable wage determination.Trainees shall be paid fringe benefits in sication of work performed,as specified in the applicable wage determina- accordance with the provisions of the trainee program.If the trainee pro- tion incorporated into the contract • • gram does not mention fringe benefits trainees shall be paid the full (e)The weekly submission of a properly executed certification set amount of fringe benefits listed on the wage determination unless the forth on the reverse side of Optional Form WH-347 shall satisfy the Administrator of the Wage and Hour Division determines that there is an requirement for submission of the"Statement of Compliance"required by apprenticeship program associated with the corresponding journeyman paragraph A.3(ii)(b)of this section. wage rate on the wage determination which provides for less than full (d)The falsification of any of the above certifications may subject the fringe benefits for apprentices.Any employee listed on the payroll at a contractor or subcontractor to civil or criminal prosecution under Section . trainee rate who is not registered and participating in a training plan 1001 of Title 18 and Section 231 of Title 31 of the United States Code. approved by the Employment and Training Administration shall be paid not (Hi)The contractor or subcontractor shall make the records required less than the applicable wage rate on the wage determination for the work under paragraph A.3.(i)of this section available for inspection,copying,or actually performed.In addition,any trainee performing work on the job site transcription by authorized representatives of HUD or its designee or the in excess of the ratio permitted-under the registered program shall be paid Department of Labor,and shall permit such representatives to interview not less than the applicable wage rate on the wage determination for the employees during working hours on the job.If the contractor or subcon- work actually performed.In the event the Employment and Training Admin- tractor fails to submit the required records or to make them available.HUD istration withdraws approval of a training program,the contractor will no or its designee may.after written notice to the contractor,sponsor,appli- longer be permitted to-utilize trainees at less than the applicable predeter- ;ant,or owner,take such action as may be necessary to cause the sus- mined rate for the work performed until an acceptable program is 'Pension of any further payment advance,or guarantee of funds:.Further- approved. :Wore,failure to submit the required records upon request or to make such (iii)Equal'employment opportunity.The utilization cf apprentices. records available may be grounds for debarment action pursuant to 29 trainees and journeymen under this part shall be in conformity with the CFR Part 5.12. equal-employment opportunity requirements of Executive Order 11246,as 4.(i)Apprentices and Trainees.Apprentices.Apprentices will be per- amended,and 29 CFR Part 30. miffed to work at less than the predetermined rate for the work they per- 5.Compliance with Copeland Act requirements.The contractor shall formed when they are employed pursuant to and individually registered in a comply with the requirements ot29 CFR Part 3 which are incorporated by bona fide apprenticeship program registered with the U.S.Department of reference in this contract • .abor,Employment and Training Administration,Bureau of Apprenticeship 6.Subcontracts.The contractor or subcontractor will insert in any sub- and Training,or with a State Apprenticeship Agency recognized by the contracts the clauses contained in 29 CFR 5.5(a)(1)through(10)and such 9ureau,or if a person is employed in his or her first 90 days of probationary other clauses as HUD or its designee may by appropriate instructions employment as an apprentice in such an apprenticeship program,who is• require.and also a clause requiring the subcontractors to include these lot individually registered in the program,but who has been certified by the clauses in any lower tier subcontracts.The prime contractor shall be 3ureau of Apprenticeship and Training or a State Apprenticeship Agency responsible for the compliance by any subcontractor or lower tier subcon- where appropriate)to be eligible for probationary employment as an - tractor with all the contract clauses in 29 CFR Part 5.5. HUD-4010(2-84) 1 d.Cintracte termination;debarment A breach of the contract clauses in compensation at a rate not less than one and one-half times the 29 CFR 5.5 may be grounds for termination of the contract,and for debar- basic rate of pay for all hours worked in excess of forty hours in such workweek. ment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8.Compliance with Davis-Bacon and Related Act Requirements.All rul- (2)Violation;liability for unpaid wages;liquidated damages.In:^e ings and interpretations of the Davis-Bacon and Related Acts contained in event of any violation of the clause set forth in subparagraph(1)of th s 29 CFR Parts 1.3.and 5 are herein incorporated by reference in this paragraph,the contractor and any subcontractor responsible therefor shall contract be liable for the unpaid wages.In addition,such contractor and subccn- 9.Disputes concerning labor standards.Disputes arising out of the labor tractor shall be liable to the United States(in the case of work done uncle- standards provisions of this contract shall not be subject to the general contract for the District of Columbia or a territory,to such District or to such disputes clause of this contract.Such disputes shall be resolved in accor- territory),for liquidated damages.Such liquidated damages shall be corn- dance with the procedures of the Department of Labor set forth in 29 CFR puted with respect to each individual laborer or mechanic,including Parts 5.6.and 7.Disputes within the meaning of this clause include dis- watchmen and guards.employed in violation of the clause set forth it pules between the contractor(or any of its subcontractors)and HUD or its paragraph(1)of this paragraph,in the sum of$10 for each calendar cay on designee,the U.S.Department of Labor,or the employees or their which such individual was required or permitted to work in excess cf representatives. the standard workweek of forty hours without payment of the 10.(i)Certification of Eligibility.By entering into this contract the con- overtime wages required by the clause set forth in subpara- tractor certifies that neither it(nor he or she)nor any person or firm who graph (1) of this paragraph. has an interest in the contractor's firm is a person or firm ineligible to be (3)Withholding for unpaid wages and liquidated damages. HUB or :s awarded Government contracts by virtue of Section 3(a)of the Davis- designee shall upon its own action or upon written request of an aur.,- Bacon Act or 29 CFR 5.12(a)(1)or to be awarded HUD contracts or partici- rized representative of the Department of Labor withhold or cause to oe pate in HUD programs pursuant to 24 CFR Part 24. withheld,from any moneys payable on account of work performed by th e (ii)No part of this contract shall be subcontracted to any person or firm contractor or subcontractor under any such contract or any other Federa: ineligible for award of a Government contract by virtue of Section 3(a)of contract with the same prime contract.or any other Federally-assisted con- the Davis-Bacon Act or 29 CFR 5.12(a)(1)or to be awarded HUD contracts tract subject to the Contract Work Hours and Safety Standards Act whic- or participate in HUD programs pursuant to 24 CFR Part 24. is held by the same prime contractor such sums as may be determired (iii)The penalty for making false statements is prescribed in the U.S. be necessary to satisfy any liabilities of such contractor or subcortra::c• Criminal Code, 18 U.S.C. 1001.Additionally.U.S.Crimnal Code.Section for unpaid wages and liquidated damages as provided in the cause se: 1010.Title 18,U.S.C.."Federal Housing Administration transactions",pro- forth in subparagraph(2)of this paragraph. - vides in part:"Whoever,for the purpose of. . .influencing in any way the (4)Subcontracts.The contractor or subcontractor shall ir.ser. - ar action of such Administration. . . makes,utters or publishes any statement subcontracts the clauses set forth in subparagraph(1)through (4)cf:^is knowing the same to be false. . . shall be fined not more than 55.000 or paragraph and also a clause requiring the subcontractors to include:nese imprisoned not more than two years.or both." clauses in any lower tier subcontracts.The prime contractor shall be 11.Complaints, Proceedings,or Testimony by Employees.No laborer or responsible for compliance by any subcontractor or lower tier subcc':ra:- mechanic to whom the wage,salary,or other labor standards provisions of for with the clauses set forth in subparagraphs(1)through(4r cf this this Contract are applicable shall be discharged or in any other manner paragraph. discriminated against by the Contractor or any subcontractor because such C.Health and Safety employee has filed any complaint or instituted or caused to be instituted (1)No laborer or mechanic shall be required to work in surroundings any proceeding or has testified or is about to testify in any proceeding or under working conditions which are unsanitary,hazardous.or darger- under or relating to the labor standards applicable under this Contract to ous to his health and safety as determined under construction safety arc his employer. health standards promulgated by the Secretary of Labor by regulator B Contract Work Hours and Safety Standards Act.As used in this para- (2)The Contractor shall comply with all regulations issued by the graph,the terms"laborers"and"mechanics"include watchmen and Secretary of Labor pursuant to Title 29 Part 1926(formerly part 15181 arc guards. failure to comply may result in imposition of sanctions pursuant to the Ccn- (1) Overtime requirements. No contractor or subcontractor tract Work Hours and Safety Standards Act(Public Law 91-54.83 Stat.96). contracting for any part of the contract work which may require (3)The Contractor shall include the provisions of this Article in ever. or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which subcontract so that such provisions will be binding on each subcontractor. he or she is employed on such work to work in excess of forty The Contractor shall take such action with respect to any subcontract as hours in such workweek unless such laborer or mechanic receives the Secretary of Housing and Urban Development or the Secretary of la:or shall direct as a means of enforcing such provisions. Ito HUD-4010(2-84) , "a " 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 not 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. Effective August 1, 1994 • may be determired (iii)The penalty for making false statements is prescribed in the U.S. be necessary to satisfy any liabilities of such contractor or subcortra::c• Criminal Code, 18 U.S.C. 1001.Additionally.U.S.Crimnal Code.Section for unpaid wages and liquidated damages as provided in the cause se: 1010.Title 18,U.S.C.."Federal Housing Administration transactions",pro- forth in subparagraph(2)of this paragraph. - vides in part:"Whoever,for the purpose of. . .influencing in any way the (4)Subcontracts.The contractor or subcontractor shall ir.ser. - ar action of such Administration. . . makes,utters or publishes any statement subcontracts the clauses set forth in subparagraph(1)through (4)cf:^is knowing the same to be false. . . shall be fined not more than 55.000 or paragraph and also a clause requiring the subcontractors to include:nese imprisoned not more than two years.or both." clauses in any lower tier subcontracts.The prime contractor shall be 11.Complaints, Proceedings,or Testimony by Employees.No laborer or responsible for compliance by any subcontractor or lower tier subcc':ra:- mechanic to whom the wage,salary,or other labor standards provisions of for with the clauses set forth in subparagraphs(1)through(4r cf this this Contract are applicable shall be discharged or in any other manner paragraph. discriminated against by the Contractor or any subcontractor because such C.Health and Safety employee has filed any complaint or instituted or caused to be instituted (1)No laborer or mechanic shall be required to work in surroundings any proceeding or has testified or is about to testify in any proceeding or under working conditions which are unsanitary,hazardous.or darger- under or relating to the labor standards applicable under this Contract to ous to his health and safety as determined under construction safety arc his employer. health standards promulgated by the Secretary of Labor by regulator B Contract Work Hours and Safety Standards Act.As used in this para- (2)The Contractor shall comply with all regulations issued by the graph,the terms"laborers"and"mechanics"include watchmen and Secretary of Labor pursuant to Title 29 Part 1926(formerly part 15181 arc guards. failure to comply may result in imposition of sanctions pursuant to the Ccn- (1) Overtime requirements. No contractor or subcontractor tract Work Hours and Safety Standards Act(Public Law 91-54.83 Stat.96). contracting for any part of the contract work which may require (3)The Contractor shall include the provisions of this Article in ever. or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which subcontract so that such provisions will be binding on each subcontractor. he or she is employed on such work to work in excess of forty The Contractor shall take such action with respect to any subcontract as hours in such workweek unless such laborer or mechanic receives the Secretary of Housing and Urban Development or the Secretary of la:or shall direct as a means of enforcing such provisions. Ito HUD-4010(2-84) , 4 V • • • F411:b,f ;; 24 CFR 85.43 ENFORCEMENT (a) Remedies for noncompliance. If a grantee or subgrantee 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: (1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or subgrantee 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 subgrantee'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 subgrantee an opportunity for such hearing, appeal, or other administrative proceeding to which the grantee or subgrantee is entitled under any statute or regulation applicable to the action involved. (c) Effects of suspension and termination. Costs of grantee or subgrantee resulting from obligations incurred by the grantee or subgrantee 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 subgrantee 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 subgrantee before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable, 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 subgrantee from being subject to "Debarment and Suspension" under E.O. 12549 (see § 85.35). 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. Effective August 1, 1994 • may be determired (iii)The penalty for making false statements is prescribed in the U.S. be necessary to satisfy any liabilities of such contractor or subcortra::c• Criminal Code, 18 U.S.C. 1001.Additionally.U.S.Crimnal Code.Section for unpaid wages and liquidated damages as provided in the cause se: 1010.Title 18,U.S.C.."Federal Housing Administration transactions",pro- forth in subparagraph(2)of this paragraph. - vides in part:"Whoever,for the purpose of. . .influencing in any way the (4)Subcontracts.The contractor or subcontractor shall ir.ser. - ar action of such Administration. . . makes,utters or publishes any statement subcontracts the clauses set forth in subparagraph(1)through (4)cf:^is knowing the same to be false. . . shall be fined not more than 55.000 or paragraph and also a clause requiring the subcontractors to include:nese imprisoned not more than two years.or both." clauses in any lower tier subcontracts.The prime contractor shall be 11.Complaints, Proceedings,or Testimony by Employees.No laborer or responsible for compliance by any subcontractor or lower tier subcc':ra:- mechanic to whom the wage,salary,or other labor standards provisions of for with the clauses set forth in subparagraphs(1)through(4r cf this this Contract are applicable shall be discharged or in any other manner paragraph. discriminated against by the Contractor or any subcontractor because such C.Health and Safety employee has filed any complaint or instituted or caused to be instituted (1)No laborer or mechanic shall be required to work in surroundings any proceeding or has testified or is about to testify in any proceeding or under working conditions which are unsanitary,hazardous.or darger- under or relating to the labor standards applicable under this Contract to ous to his health and safety as determined under construction safety arc his employer. health standards promulgated by the Secretary of Labor by regulator B Contract Work Hours and Safety Standards Act.As used in this para- (2)The Contractor shall comply with all regulations issued by the graph,the terms"laborers"and"mechanics"include watchmen and Secretary of Labor pursuant to Title 29 Part 1926(formerly part 15181 arc guards. failure to comply may result in imposition of sanctions pursuant to the Ccn- (1) Overtime requirements. No contractor or subcontractor tract Work Hours and Safety Standards Act(Public Law 91-54.83 Stat.96). contracting for any part of the contract work which may require (3)The Contractor shall include the provisions of this Article in ever. or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which subcontract so that such provisions will be binding on each subcontractor. he or she is employed on such work to work in excess of forty The Contractor shall take such action with respect to any subcontract as hours in such workweek unless such laborer or mechanic receives the Secretary of Housing and Urban Development or the Secretary of la:or shall direct as a means of enforcing such provisions. Ito HUD-4010(2-84) , 5 C-25A CITY OF OMAHA i LEGISLATIVE CHAMBER Omaha,Nebr August 5 19 97 RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS,under Title II of the National Affordable Housing Act of 1990,the City of Omaha annually receives a HOME Investment Partnerships Program entitlement for the purpose of providing affordable housing opportunities for low income households, eliminating slums and blight,and for other urgent community development needs; and, WHEREAS, the City Council, on December 3, 1996, by Resolution No. 3195, approved the 1997 Consolidated Submission for Community Planning Development Programs which included the HOME Rental Rehabilitation Program; and, WHEREAS, following a request for proposals and an in-depth review of each, the Bull Durham Limited Partnership was awarded$500,000.00 for the renovation of the Bull Durham Building; and, WHEREAS,the Bull Durham Limited Partnership has had the property inspected, a work write-up completed and has solicited bids which indicate the total cost of the property located at 1013 Leavenworth Street to be$4,774,350.00; and, WHEREAS,in addition to the$500,000.00 HOME Repayable Loan, sources of funds include an$750,000.00 bank loan and$3,524,350.00 in the form of a tax increment fmancing,historic tax credits, and a developer's note; and, WHEREAS, this property is eligible for funding under the City's HOME Rental Rehabilitation Program; and, WHEREAS, Section 5.17 of the Omaha Municipal Code, effective May 10, 1994, requires that any expenditure exceeding Twenty Thousand Dollars ($20,000.00)be approved on an individual basis by the City Council; and, WHEREAS,it is in the best interest of the citizens of the City of Omaha to enter into an agreement with Bull Durham Limited Partnership to provide partial fmancing to rehabilitate the property located at 1013 Leavenworth Street. • By Councilmember Adopted • City Clerk 'L 0 Approved Mayor A om obligations which were properly incurred by the grantee or subgrantee before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable, 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 subgrantee from being subject to "Debarment and Suspension" under E.O. 12549 (see § 85.35). 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. Effective August 1, 1994 • may be determired (iii)The penalty for making false statements is prescribed in the U.S. be necessary to satisfy any liabilities of such contractor or subcortra::c• Criminal Code, 18 U.S.C. 1001.Additionally.U.S.Crimnal Code.Section for unpaid wages and liquidated damages as provided in the cause se: 1010.Title 18,U.S.C.."Federal Housing Administration transactions",pro- forth in subparagraph(2)of this paragraph. - vides in part:"Whoever,for the purpose of. . .influencing in any way the (4)Subcontracts.The contractor or subcontractor shall ir.ser. - ar action of such Administration. . . makes,utters or publishes any statement subcontracts the clauses set forth in subparagraph(1)through (4)cf:^is knowing the same to be false. . . shall be fined not more than 55.000 or paragraph and also a clause requiring the subcontractors to include:nese imprisoned not more than two years.or both." clauses in any lower tier subcontracts.The prime contractor shall be 11.Complaints, Proceedings,or Testimony by Employees.No laborer or responsible for compliance by any subcontractor or lower tier subcc':ra:- mechanic to whom the wage,salary,or other labor standards provisions of for with the clauses set forth in subparagraphs(1)through(4r cf this this Contract are applicable shall be discharged or in any other manner paragraph. discriminated against by the Contractor or any subcontractor because such C.Health and Safety employee has filed any complaint or instituted or caused to be instituted (1)No laborer or mechanic shall be required to work in surroundings any proceeding or has testified or is about to testify in any proceeding or under working conditions which are unsanitary,hazardous.or darger- under or relating to the labor standards applicable under this Contract to ous to his health and safety as determined under construction safety arc his employer. health standards promulgated by the Secretary of Labor by regulator B Contract Work Hours and Safety Standards Act.As used in this para- (2)The Contractor shall comply with all regulations issued by the graph,the terms"laborers"and"mechanics"include watchmen and Secretary of Labor pursuant to Title 29 Part 1926(formerly part 15181 arc guards. failure to comply may result in imposition of sanctions pursuant to the Ccn- (1) Overtime requirements. No contractor or subcontractor tract Work Hours and Safety Standards Act(Public Law 91-54.83 Stat.96). contracting for any part of the contract work which may require (3)The Contractor shall include the provisions of this Article in ever. or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which subcontract so that such provisions will be binding on each subcontractor. he or she is employed on such work to work in excess of forty The Contractor shall take such action with respect to any subcontract as hours in such workweek unless such laborer or mechanic receives the Secretary of Housing and Urban Development or the Secretary of la:or shall direct as a means of enforcing such provisions. Ito HUD-4010(2-84) , C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebr Au.gu$.t 5,, 19 97 PAGE 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCI. OF THE CITY OF OMAHA: THAT,the attached Agreement,as recommended by the Mayor,between the City of Omaha and Bull Durham Limited Partnership, a Nebraska Limited Partnership, 309 South 16th Street,Omaha,Nebraska 68102,in the amount of$500,000.00 to renovate the Bull Durham Building at 1013 Leavenworth.Street into leasable commercial space on the main level and 48 spacious one, two and three bedroom apartments on the upper levels and the subsequent rental of each unit to low and moderate households is hereby approved. Funding shall be in the form of a HOME Rental Rehabilitation Program Repayable Loan. These funds shall be payable from the HOME Rental Rehabilitation Program,Fund No. 186,Organization No. 5010. APPROVED AS TO FO : 4.vt ASSISTANT CITY ATTORNEY DATE P:\PLN2\3130.PJM By ounce member Adopted VG 5 1997 —a ity Clerk Approved r / and, WHEREAS,in addition to the$500,000.00 HOME Repayable Loan, sources of funds include an$750,000.00 bank loan and$3,524,350.00 in the form of a tax increment fmancing,historic tax credits, and a developer's note; and, WHEREAS, this property is eligible for funding under the City's HOME Rental Rehabilitation Program; and, WHEREAS, Section 5.17 of the Omaha Municipal Code, effective May 10, 1994, requires that any expenditure exceeding Twenty Thousand Dollars ($20,000.00)be approved on an individual basis by the City Council; and, WHEREAS,it is in the best interest of the citizens of the City of Omaha to enter into an agreement with Bull Durham Limited Partnership to provide partial fmancing to rehabilitate the property located at 1013 Leavenworth Street. • By Councilmember Adopted • City Clerk 'L 0 Approved Mayor A om obligations which were properly incurred by the grantee or subgrantee before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable, 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 subgrantee from being subject to "Debarment and Suspension" under E.O. 12549 (see § 85.35). 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. Effective August 1, 1994 • may be determired (iii)The penalty for making false statements is prescribed in the U.S. be necessary to satisfy any liabilities of such contractor or subcortra::c• Criminal Code, 18 U.S.C. 1001.Additionally.U.S.Crimnal Code.Section for unpaid wages and liquidated damages as provided in the cause se: 1010.Title 18,U.S.C.."Federal Housing Administration transactions",pro- forth in subparagraph(2)of this paragraph. - vides in part:"Whoever,for the purpose of. . .influencing in any way the (4)Subcontracts.The contractor or subcontractor shall ir.ser. - ar action of such Administration. . . makes,utters or publishes any statement subcontracts the clauses set forth in subparagraph(1)through (4)cf:^is knowing the same to be false. . . shall be fined not more than 55.000 or paragraph and also a clause requiring the subcontractors to include:nese imprisoned not more than two years.or both." clauses in any lower tier subcontracts.The prime contractor shall be 11.Complaints, Proceedings,or Testimony by Employees.No laborer or responsible for compliance by any subcontractor or lower tier subcc':ra:- mechanic to whom the wage,salary,or other labor standards provisions of for with the clauses set forth in subparagraphs(1)through(4r cf this this Contract are applicable shall be discharged or in any other manner paragraph. discriminated against by the Contractor or any subcontractor because such C.Health and Safety employee has filed any complaint or instituted or caused to be instituted (1)No laborer or mechanic shall be required to work in surroundings any proceeding or has testified or is about to testify in any proceeding or under working conditions which are unsanitary,hazardous.or darger- under or relating to the labor standards applicable under this Contract to ous to his health and safety as determined under construction safety arc his employer. health standards promulgated by the Secretary of Labor by regulator B Contract Work Hours and Safety Standards Act.As used in this para- (2)The Contractor shall comply with all regulations issued by the graph,the terms"laborers"and"mechanics"include watchmen and Secretary of Labor pursuant to Title 29 Part 1926(formerly part 15181 arc guards. failure to comply may result in imposition of sanctions pursuant to the Ccn- (1) Overtime requirements. No contractor or subcontractor tract Work Hours and Safety Standards Act(Public Law 91-54.83 Stat.96). contracting for any part of the contract work which may require (3)The Contractor shall include the provisions of this Article in ever. or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which subcontract so that such provisions will be binding on each subcontractor. he or she is employed on such work to work in excess of forty The Contractor shall take such action with respect to any subcontract as hours in such workweek unless such laborer or mechanic receives the Secretary of Housing and Urban Development or the Secretary of la:or shall direct as a means of enforcing such provisions. Ito HUD-4010(2-84) , • Z Cr Cr CAD N 0 a- �= (-^ p ° = ‘ o. N '- ('•' 41 tlQ CD n or? O O 0 w v, cD EZ o• 0 O 0 O' Icn a. ° u o CD o a O N ce, Fit LA NJ I s.:.1 P r6 , pc, 'oh 0 fl')' 2 8 c6.).' 4 E 4 F, _ ppO C p' ", CD ° O'b .� A P" x (�D x CY '-' C CD N W CD O a CM ) g ,...,. C17�� p �� C~D Ga N < co _ p ,,. r) •-3 a c).. R., c4 — ,5, g cr, 1+ 00 a CD cD P') ,-t- 0 5. la Z CT R: q 7C P nae- R. RM Q- O vk, .e...... it s Lisa A. Burks, Secretary 01/528642.1 unr