RES 1998-2364 - Agmt with the Stephen Center Inc for transitional housing facility L/ ,
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of o Fey Planning Dep ent
6 46. � , RECEIVEDOmaha/Douglas Civic Center
1819 Farnam Street,Suite 1100
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City of Omaha O A�HA. E N R.ASii.'
Hal Daub,Mayor
Honorable President
and Members of the City Council,
The attached Resolution approves an Agreement between the City of Omaha and the Stephen Center,
Inc., a Nebraska Non-Profit Corporation, 2723 "Q" Street, Omaha, Nebraska 68107, for the
construction of an eight unit transitional residential facility at 27th& "Q" Streets and the subsequent
occupancy of each unit by single homeless men. The transitional facility will be designed in
accordance with accessibility requirements pursuant to the Fair Housing Act and Section 504 of the
Housing and Community Development Act of 1973.
Funding from the City in the amount of $420,000.00 in Fiscal Year 1996 Home Investment
Partnerships Program (HOME) funds will be in the form of a grant. Covenants will be placed on
the property as a lien to ensure continued use of the facility as a transitional shelter for homeless men
for a period of twenty years.
The construction of 8 units of transitional housing will help fill a need in our community by
providing housing with supportive services to single men with the goal of helping homeless
individuals move to permanent living and self-sufficiency to the extent possible.
The contractor has on file a current Annual Contract Compliance Report Form(CC-1). As is City
policy, the Human Relations Director will review the contractor to ensure compliance with the
Contract Compliance Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, Referred to City Council for Consideration:
7 �7 r
Robert C. Peters, Acting Director Date Mayor's Office/Title Date
Planning Department
ved as to Funding: & Lt
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Louis A. D'Ercole. Directo Date George vis, Jr., Director ate �era. t
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Finance Department �4 Human elations Department
P:\PLN2\3852.MAF
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AGREEMENT
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal
Corporation in Douglas County, Nebraska (sometimes hereinafter referred to as "City"), and the
Stephen Center, Inc., a Nebraska non-profit corporation, Omaha,Nebraska, (sometimes hereinafter
referred to as "Owner") on the terms, conditions and provisions as set forth below:
RECITALS:
WHEREAS, the City of Omaha 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, 1.956, as amended, and local ordinances, including but not limited to, the
power to contract; and,
WHEREAS, the City of Omaha annually receives I-IOME Investment Partnerships Funds
under Title II of the National Affordable Housing Act of 1990, as amended, for the purpose of
providing affordable housing opportunities to residents; and,
WHEREAS, the City Council approved the 1996 Consolidated Submission for Community
Planning and Development Programs(Consolidated Plan)on November 21, 1995,by Resolution No.
3038; and,
WHEREAS, the Consolidated Plan identified the provision of transitional housing
opportunities as a priority need in the City of Omaha; and,
WHEREAS, the Stephen Center, Inc.,proposes the construction of an eight unit transitional
residential facility located at 27th& "Q" Streets and the subsequent occupancy of each unit by single
homeless men, this proposal being consistent with the Consolidated Plan; and,
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WHEREAS, it is in the best interests of the City of Omaha and the residents thereof that the
City enter into an Agreement with the Stephen Center, Inc., to provide funding in the amount of
$420,000.00 for the construction of an eight unit transitional housing facility by the Stephen Center,
Inc.
NOW, THEREFORE, in consideration of these mutual covenants, the Stephen Center and
the City of Omaha do hereby agree as follows:
SECTION 2. DEFINITIONS - ABBREVIATIONS
1.1 "City" shall mean - the City of Omaha, a Nebraska Municipal Corporation.
1.2 "Owner" shall mean - Stephen Center, Inc., a Nebraska non-profit corporation, 2723 "Q"
Street, Omaha,Nebraska 68107 (see Exhibit A).
1.3 "Director" shall mean-the Planning Director of the City of Omaha.
1.4 "Recipient" shall mean - the City of Omaha.
1.5 "Developer" shall mean - a public or private non-profit agency, authority or organization
receiving HOME funds to undertake eligible activities. In this Agreement, the developer is
the Stephen Center, Inc.
1.6 "HUD" shall mean -the U.S. Department of Housing and Urban Development.
1.7 "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).
1.8 "HOME Funds" shall mean - a portion of the 1.996 City of Omaha HOM.E Investment
Partnerships Program grant awarded to the City in a total amount not to exceed $420,000.00
as may be available to grant during the program year 1996, conditioned upon actual receipt
of same, for the purposes stated herein.
1.9 "HOME Grant" shall mean - HOME funds in an amount not to exceed $420,000.00. The
HOME Grant shall be repayable upon sale, assignment or other transfer of the property or
portion thereof by the Owner during the term of this Agreement.
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1.10 "Property" or"Subject Property" shall mean - the property legally described
as: Lot 4, Lot
5, Lot 6 and the East 1/2 of Lot 7, Block 12, _letter's Addition, as surveyed, platted and
recorded in Douglas County,Nebraska, together with all improvements thereon.
1.11 "Construction Contract" shall mean - ensuing contracts for all work to be performed upon.
property for authorized projects.
1.12 "Construction Work" shall mean - all work or services provided for in professional services
or construction contracts and as may be required hereunder(see Exhibit B, Scope of Work).
1.13 "Progress Payment" shall mean - that portion of the total construction.contract paid in one
or more disbursements, based upon the value of the construction, administrative or
professional services work completed at the time the payment request is made.
SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING
2.1 Subject to and conditioned upon actual receipt of same,the City agrees to make available to
the Owner, in the form of a grant, $420,000.00 in HOME Funds as hereinabove described
and defined in Sections 1..8 and 1..9. Such grant shall be subject to the terms and conditions
contained herein. Further, such grant shall be used only for the purposes set forth in this
Agreement. Further, HOME Funds shall be used only for the following purposes:
2.1.1 Costs associated with the acquisition of property.
2.1.2 Architectural engineering, legal, financial and administrative services for the
preparation of all design and construction documents and construction supervision
necessary for site preparation, the installation of public improvements, and all
construction work. All contracts for services and construction documents pursuant
to this Section must be approved by the Planning Director prior to funding of such
contracts.
2.1.3 Funds paying for contractual work shall be payable in consideration with the
construction progress payment schedule as described in Section. 2.2 in accordance
with the Director's prior approval.
2.1.4 Performance bonds and insurance, required by the Director, shall name the City as
an "additional insured".
2.1.5 City funding pursuant to this Section shall be contingent upon receipt of and subject
to the availability of HOME Investment Partnership Grant funds in amounts adequate
to meet any contractual obligations in force upon the date of execution of this
Agreement, as well as this proposed obligation. Should adequate funding not be
available, the City shall notify the Owner as soon as reasonably possible. At such
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time, the responsibilities of the Owner under Section 3 of this Agreement shall be
released, the provisions of Section 6.10 will be exercised and the Agreement will be
terminated. •
2.1.6 The Owner may not request disbursement of funds under this Agreement until the
funds are needed for payment of eligible costs based upon the value of the
construction, administration, or professional services work completed at the time the
payment request is made. The amount of each request must be limited to the actual
amount needed.
2.2 The City does hereby agree to make progress payments and final payment, as may be
authorized by the Director or his designated representative, upon receipt, verification, and
approval of an AiA Document G702 "Application and Certificate for Payment". A 10%
retainage will be held by the City on each progress payment for construction work and on.
the final payment. A final payment will not be made until all punch list items have been
corrected to the satisfaction of the Owner and the Planning Department and until such time
as the certified audit required by Section 3.8, herein, is approved by the Director.
2.3 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:
2.3.1 Duly executed contracts for Construction Work;
2.3.2 A Performance and Labor Materials Bond and/or an Irrevocable Letter of Credit in
force for one year following the completion of the Construction Work from the
General Contractor in an aggregate amount of the Contract bid. The Bonds and/or
Letters of Credit shall be in favor of the City and shall be submitted 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.
2.4 No payments shall be made for any work, labor, material or expenses incurred which the
Director deems to be:
2.4.1 Unacceptable or substandard; or,
2.4.2 Not in accordance with this Agreement or contract as approved for this project; or,
2.4.3 Not in conformance with applicable state,federal and/or local laws, including but not
limited to, the building, plumbing and/or electrical codes; or,
2.4.4 Not in conformance with all plans, working drawings and/or specifications as
approved.
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2.5 In no event shall the City become obligated to make any payments for any work performed,
materials furnished, expense incurred, or any other expenditure of any kind whatsoever,
unless same is expressly included in this Agreement.
2.6 In no event shall the City assume any obligations to make or continue 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 timely and fully complied with its duties and obligations
arising hereunder.
2.7 The City shall review and approve all plans, working drawings and/or specifications for
public improvements, site preparation and residential rehabilitation and perform interim and
final inspections on each rehabilitation phase.
2.8 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.
2.9 After completion of construction, the property must comply with all appropriate City codes
and ordinances, and with Federal Section 8 Housing Quality Standards such compliance
continuing for the duration of this Agreement.
2.9.1 The City may perform periodic inspections to ensure compliance with Section 2.9.
2.10 During the period of project development and construction work, and for the term of this
Agreement, the Owner shall:
2.10.1 Maintain insurance in at least the amount of the grant and apply such insurance
proceeds to the reconstruction of the project or repayment in full of the grant.
2.10.2 Ensure that the property remains free and clear of all superior encumbrances,
including liens and judgments.
2.11 The City shall perform an environmental assessment in accordance with the provisions of
the National Environmental Policy Act of 1969 (NEPA) and related authorities listed in
HUD's implementing regulations at 24 CFR Parts 50 and 58.
2.12 The City shall secure the FIOME Grant with a covenant as defined in Section 3.2 to insure
that the Owner repays the HOME Grant upon sale, assignment or other transfer of the
property or portion thereof by the Owner for a period of twenty years from completion of
construction as determined by the City. The City shall release the covenant should the
Owner meet said conditions during the term of Agreement.
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SECTION 3. DUTIES AND RESPONSIBILITIES OF THE OWNER
3.1 The Owner does hereby certify,contract and agree that any and all funding obtained or made
available hereunder shall be used solely and exclusively for the express purpose of the
construction of an eight(8) unit transitional residential facility located at 27th& "Q" Streets
and the subsequent occupancy of each unit by single homeless men, in strict compliance with
this Agreement and the construction contract, as approved, as well as the plans, drawings,
and other specifications, as approved.
3.1.1 The Owner agrees that, during the term of this Agreement, 100% of the units must
be occupied by low income single homeless men whose annual income does not
exceed 60% of the "Median Income by Family Size" as published by HUD, and as
further updated and revised 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.
3.1.2 In addition to the above, the Owner agrees that 20%of the units shall be occupied by
very low income single homeless men whose annual income does not exceed 50%
of the "Median Income by Family Size" as described in Section 3, Paragraph 3.1.1.
3.1.3 In no event shall eligible persons 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, for the leasing of rental housing units assisted with HOME funds 24
CFR Part 92, Subpart F, is attached hereto as Exhibit D (also see Section 6.18 Other
Program Requirements of this Agreement).
3.1.4 If, through breach of this Agreement, the Owner fails to maintain the occupancy,
affordability and use restrictions enumerated in Section 3.1 of the Agreement, all
HOME funds previously provided to the Owner through fulfillment of this
Agreement shall promptly be returned to the City of Omaha.
3.2 The Owner agrees to execute an Acknowledgement of Covenants guaranteeing the use and
period of affordability as stated herein. Such Acknowledgement of Covenants shall be filed
against the Property, upon acquisition, an example of such Acknowledgement of Covenants
is attached hereto as Exhibit E. The Owner, for itself, its successors and assigns, further
agrees that the restrictions and covenants in this Agreement shall be covenants running with
the land, and that they, in any event and without regard to technical classification or
designation, legal or otherwise, shall be binding, to the fullest extent permitted by law and
equity, and enforceable by, the City, its successors and assigns, against the Owner, its
successors and assigns to any part of the property that is the subject of this Agreement, or
any interest therein and any party in the possession or occupancy of any part of said property.
The Owner, for itself, its successors and assigns, further covenants and agrees, that without
regard to whether the City or the United States is an owner of any interest in the land to
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which the covenants relate, the covenants running with the land shall remain in effect for a
period of twenty (20) years after the date of the completion of the construction project, or
until such date thereafter to which it may be modified by proper amendment of this
Agreement, on which date such covenants may terminate.
3.3 The Owner shall be responsible for payment of any costs that exceed those specified in this
Agreement.
3.4 The Owner shall submit to the Director, for his review and approval, all working drawings,
plans and specifications necessary or incidental to this project. In addition, the Owner shall
submit duly authorized construction contracts for the Director's review and approval. The -
Director reserves the right to reject, modify or 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 or release grant proceeds 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.
3.5 The Owner shall:
3.5.1 Procure and maintain property insurance in an amount sufficient to protect the City's
interest in the property during the term of the Agreement and the term of any
financing documents. The policy must include the City of Omaha as an additional
insured. In the event of loss or damage to the property, the Owner must provide
written notification to the City of such loss. Proceeds from any claim under this
policy may, at the discretion of the Director, be either applied to restore or replace
the improvements damaged or be released to the City to satisfy the Owner's
obligation to the City under the terms of this Agreement.
3.5.2 Procure and maintain Performance and Labor Materials Bonds and/or Irrevocable
Letters of Credit in force for one year following completion of the Construction work
from the General Contractor in an aggregate amount of the contract bid. The Letters
of Credit and/or Bonds 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 the choice of surety for the Bonds.
3.5.3 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 to or
disqualified by the U.S. Department of housing and Urban Development (HUD).
The Director shall approve all contractors and subcontractors prior to being hired by
the Owner.
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3.5.4 Comply with allprovisions and regulations of the HOME Program and have an
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annual audit completed in compliance with OMB Circular A-1.33. A copy of the
audit shall be provided to the Director. OMB-Circular A-133, attached as Exhibit F.
3.5.5 Make best efforts to ensure that construction services, contracts and employment
opportunities are affirmatively marketed to women and members of minority groups.
The Owner shall submit to the Director, for his review and approval, a Minority and
Women Business Participation Plan which discusses employment opportunities for
persons in these groups (see Exhibit G).
3.5.6 Employ affirmative marketing procedures in the advertising and marketing of the
completed project. In marketing, the Owner shall also conform to the non-
discrimination provisions hereinafter set forth. The Owner shall comply with the
affirmative marketing responsibilities specified in Exhibit H.
3.5.7 Comply with Section 504 of the Rehabilitation Act of 1973 regarding the two (2)
accessible project units and ensure that all work on these units is in accordance with
the design standards as stated in the Uniform Federal Accessibility Standards.
(Exhibit I).
3.6 The Owner shall commence and complete construction in accordance with the following:
3.6.1 The Owner shall commence work on this project as soon as possible after receipt of
a written notice to proceed from the:Director. Any work performed or costs incurred
prior to the issuance of such a notice shall be the sole responsibility of the Owner.
3.6.2 The Owner shall complete the acquisition and construction work of the eight(8)unit
transitional residential housing units on or before December 31, 1998. Upon the sole
discretion of the Director, this date may be extended up to eighteen months from the
date of execution of this Agreement.
3.7 During the construction period, the Owner shall:
3.7.1 Ensure that all work performed and the Construction 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 (HQS) as
established by HUD. The Director shall assist the Owner in the same manner the
Director provides technical assistance to other developers, during the construction
phase to ensure compliance with such requirements.
3.7.2 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) percentum of lead by weight (calculated as
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lead metal) in the total nonvolatile content of the paint, or the equivalent measure of
lead in the dried film of paint already applied. The Owner further agrees to abide by
all Federal requirements regarding lead-based paint poison prevention.
3.8 The Owner shall submit to the Director a certified audit of all costs including 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 the Grant assistance will be based on the audited costs.
If the final project cost is less than the estimated cost, the City and the Owner shall share the
cost savings proportionately. If the final project cost is greater than the estimated cost, any
additional costs shall be the responsibility of the Owner:
3.9 During the construction period and during the term of this Agreement, the Owner shall:
3.9.1. Maintain the property in a safe and sanitary condition at all times.
3.9.2 Ensure that all taxes and special assessments are paid and kept current.
3.10 The Owner shall provide services for.clients as required in the Scope of Work Summary,
attached hereto as Exhibit B and made a part hereof by reference.
3.11. The Owner specifically hereby states, agrees and certifies that it is familiar with the limited
purpose set forth in the Federal Laws, Rules and Regulations, and in the laws of the State of
Nebraska, for which personal information requested may be used and that the 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 by the Owner of information provided.
3.12 The Owner, Contractor and Subcontractors shall maintain such records and accounts,
including property, personnel and financial records, as are deemed necessary by the City to
assure a proper accounting for all expenses. The Comptroller General of the United States,
or any of their duly authorized.representatives, or any duly authorized representatives of the
City of Omaha, as approved by the Planning Director, shall have access to any books,
documents, papers,records and accounts of the Owner,Contractor, or subcontractors which
are directly pertinent to this project for the purpose of making audit, examination, excerpts
and transcriptions. Such records and accounts shall be retained for five 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.
3.13 The Owner shall submit to the City the following reports in accordance with the submission
timelines as specified:
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3.1.3.1 Construction Progress Reports - The Owner will provide quarterly reports to the
Director describing the progress of construction, and any significant problems and/or
• delays in construction on this project. The progress reports are required until such
time as all construction work is completed and the final payment for construction is
issued by the City.
3.13.2 Occupancy Reports - The owner will provide to the Director an initial report, and
annual reports for the term of this Agreement, on the extent to which each racial and
ethnic group and single-headed households (by gender of household head) have
applied for, participated in, or benefited from, the leasing of units/bedrooms in the
completed project.
3.14 For each family or individual occupying a unit/bedroom in the property, the Owner shall
retain the following records during the term of this.Agreement:
(a) name, address, and unit occupied
(b) date of occupancy,
(c) copy of lease/rental agreement,
(d) percent Median Family Income as determined annually pursuant to Section •
3.1.
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3.15 The owner shall comply with all environmental requirements for review and impact on the
environment.
SECTION 4. TERM OF THE AGREEMENT
This Agreement shall be in full force and effect and will continue for a period of twenty (20)
years from completion of construction as determined by the City.
• 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 construction work.
5.3 Owes no duty to the Owner or any other persons that arise because of any inspection of the
premises by the City's agents or employees.
5.4 May inspect the property at any reasonable time, including a final inspection to certify
completion prior to final disbursement of grant/loan proceeds.
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5.5 Shall be held harmless by the Owner 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. Attached hereto as Exhibits J and K, and
made a part hereof by this 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 federal or state laws or local ordinances
because of race, color, handicap, familial status, sex, age, political or religious opinions,
affiliations or national origin.
6.3 Captions. Captions used in this Agreement are for convenience and are not used in the
construction of this Agreement.
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 the Agreement voidable by the Mayor or
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 and any related documents securing the financing, contain
the entire agreement of the parties. No representations were made or relied upon by either
party other than those that are expressly set forth herein. No agent, employee, or other
representative of either party is empowered to alter any of the terms herein unless done in
writing and signed by an authorized officer of the respective parties, pursuant to Section 10-
142 of the Omaha Municipal Code.
6.8 - Assignment. The Owner may not assign its rights or obligations under this Agreement
without the express prior written consent of the City.
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.
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6.10 Termination. This Agreement may be suspended or terminated in accordance with 24 CFR
85.43, Enforcement or 24 CFR 85.44, Termination for Convenience (Exhibit L). Upon
termination of this Agreement, all funds and interest in any account hereunder shall become
the property of the City and shall be returned to the City.
6.11 Reversion of Assets. Upon expiration of this Agreement,the Owner must transfer to the City
any HOME funds on hand at the time of expiration and any accounts receivable attributable
to the use of HOME funds.
Notwithstanding the above,this Property shall be subject to the covenant set out in Section 3.
6.12 Indemnification. 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.
6.13 Default. If, through any cause, the Owner shall fail to fulfill in a timely and proper manner
any obligations under this Agreement, or violate any of the covenants, representations or
agreements hereof,the City may,upon written notice,terminate this Agreement or such parts
thereof as to this Agreement:, and may hold the Owner liable for any damages caused to the
City by reasons of such default and termination. •
6.14 Nebraska Law. This Agreement shall be a contract made under and governed by the laws
of the State of Nebraska.
6.15 Unenforceable Provisions. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition of enforceability without invalidating the remaining provisions hereof or
affecting the validity of enforceability of such provision in any other jurisdiction.
6.16 Disclosure of Lobbying. The Owner shall certify and disclose, 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
Owner, 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
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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 Owner 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,
loans, and cooperative agreements) and that all subrecipients shall certify and
disclose accordingly.
6.1.7 Subrecipients. The Owner shall comply with the requirements and the standards of OMB
Circular No. A-122, "Cost Principles for the Nonprofit Organizations" (Exhibit M) and with
the requirements of Attachments B, F, H, paragraph 2, and 0 to OMB Circular A-1 10
(Exhibit N).
6.18 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; 24 CFR Part 92 (Exhibit D).
SECTION 7. AUTHORIZED REPRESENTATIVES
In further consideration of the mutual covenants herein contained,the parties hereto expressly
agree that for purposes of notice, including legal service of process, during the term of this
Agreement,and for the period of any applicable statute or limitations thereafter,the following named
individuals shall be authorized representatives of the parties:
(1) Robert C. Peters
City of Omaha
Acting Director, Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,NE 68183
(2) Judith Mascarello, Executive Director
Stephen Center, Inc.
A Nebraska Non-Profit Corporation
2723 "Q" Street
Omaha,Nebraska 68107
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IN WITNESS WHEREOF,the parties have executed this Agreement as of the date indicated
below.
ATTEST: CITY OF 0 HA:
u - � U
CITY CLERK OF THE CITY OF OMAHA MAY R OF THE CITY OF OMAHA
WITNESS: STEPHEN CENTER, INC.
A Nebraska Non-Profit Co'!oratiio'n )
1/4„4„,c,
7
j.frz.44, BY
�S S NAME:
DATE
TITLE: Executive Director
'6/0?1/Fli
DATE
APPROVED AS TO FORM:
. (17
ASSISTANT CITY ATTORNEY DATE
P:\PLN2\3854.MAF
-14-
SCHEDULE OF EXHIBITS
Exhibit Location Description
A Section 1.2 Articles of Incorporation, Board of Directors, and
Corporate Resolution
B Section 1.12, 3.10 Scope of Work
C Section 3.1.1 Median Income by Family Size
D Section 3.1.3, 6.18 24 CFR Part 92, Subparts A, E, F and H.
E Section 3.2 Example of Acknowledgement of Covenants
F Section 3.5.4 OMB Circular A-133
G Section 3.5.5 Minority and Women Business Participation Plan
H Section 3.5.6 Affirmative Marketing Plan
I Section 3.5.7 Uniform Federal Accessibility Standards
J Section 6.1 Equal Employment Opportunity Clause
K Section 6.1 Affirmative Action Plan (Section 3 Clause)
L Section 6.10 Termination - CFR 85.43 and CFR 85.44
M Section 6.17 OMB Circular
N Section 6.17 • Attachments B, F, H, and 0 to OMB Circular A-110
Exhibits identified herein are made a part hereof by reference and are a part of the provisions of the
Agreement. Exhibits D, F, G, and I through M are on file in the Planning Department.
P:\PLN2\3854.MAF
_ 0 E C 1 6 1983. EXHIBIT "A"
ATTACHMENT II
t y:ti y Itc:cIpt No./11O
' 4.• `t BOOK�i 2 F'??. STATE OF I IEBRAEKA 1 SS
SECRETARY'S OFFICE
• C ),, ,e ^i ARTICLES OF INCORPORATION I'A Sd rtco deedom oll
71 • -
OF -'
Smeary et State
y
STEPHEN CENTER, INC. $3a ea
ARTICLE I '
The name of the Corporation shall be Stephen Center, Inc. .
ARTICLE II
The Corporation shall have' perpetual duration.
ARTICLE III .
The Corporation .s organized as a non-profit corporation to
establish facilities, Or, provide aid in order •; .o establish
facilities, in which destitute; abandoned, rfegtected and
dependent individuals may find .or obtain suitable care and
fellowship; to provide special training and- rehabilitative •
services to those in need of such services; and to .promote
programs and activities designed to eliminate violence among
destitute individuals.
ARTICLE 'IV
The Corporation shall have and exercise all powers allowed
non-profit corporations by the Non-Profit Corporation Act of the
State of Nebraska, as amended, except as otherwise limited in
these Articles of Incorporation.
•
ARTICLE V
Notwithstanding any provision to the ' contrary contained
•
within these Articles of Incorporation or the By-Laws of the
Corporation, this Organization shall abide by-
enumerated .pinciples:
1. The corporation shall exist and conducts its affairs in
conformity with and in furtherance of those of a charitable
organization' is defin'o8.. in Section 501 (c) (3) of the Internal
•
-3\ir
cooK.177_F".-Zt51
• Revenue Code of 1954.
2. 7n the event the Corporation is dissolved for any
reason at any time, after the satisfaction of all Corporate
obligations all remaining assets shall be distributed exclusively
for the purposes of the Corporation in such manner, or to such
organization or organizations organized and operated exclusively
for charitable, educational, religious or scientific purposes as
shall at the time qualify as a exempt organization or
organizations under Section 501(c) (3) of the Internal Revenue
Code. of 1954, or corresponding provisions of any subsequent
federal tax laws.
3. The Corporation shall not engage in•any of the
following acts:
(a) Acts of self-dealing as defined in Section 4941 (d)
of the Internal Revenue . Code of 1954, or
corresponding provisions of any subsequent federal
•
tax laws. '
(b) Retain any excess business holdings as defined in
Section 4943(c) of the Internal Revenue Code of
1954, or corresponding provisions of any
subsequent federal tax laws.
(c) Shall not fail to distribute its income for each
taxable year at such time and in such manner as
not to become subject to undistributed income
taxes, imposed by Section 4942 of the Internal
Revenue Code of 1954, or corresponding provisions
of any subsequent federal tax laws.
(d) No investment shall be made in such a manner as to
incur tax under Section 4944 of the Internal
Revenue Code of 1954, or corresponding' provisions
of any subsequent federal tax laws.
(e) Shall not make any taxable expenditures as defined
in Section 4945(d) of the Internal Revenue Code of
1954, or corresponding provisions of any
subsequent federal tax laws.
4. No part of the net earnings of the Corporation shall
• inure to the benefit of, or be distributed to its Members,
trustees, officers or other private persons, except that the
Corporation shall be authorized and empowered to pay reasonable
compensation for services rendered and to make payments and
•
B SOKF•.�_.PGard
distributions in furtherance of the purposes set forth in these
Articles of Incorporation.
5. No substantial part of the activities of the
Corporation shall be the carrying on of propaganda, or otherwise
attempting to influence legislation, and the Corporation shall*
not participate in, or intervene in, including the publishing or
distribution of statements, any political campaign on behalf of
any candidate for public office.
6. The Corporation shall not carry on any other activities '
not permitted to be carried on by a corporation exempt from
federal income tax under Section 501 (c) (3) of the Internal
Revenue . Code of 1954, or corresponding provisions of any
• subsequent federal tax laws or by a corporation, contributions to
which are deductible under Section 170(c) (2) of the Internal
Revenue Code of 1954, or corresponding :provisions of any
subsequent federal tax laws or such activities as may be in
violation of the •Nebraska Non-Profit Corporation Act, as it shall
be amended. from time to time. •
ARTICLE VI
The street address of the initial registered office of the
Corporation is 5002 South 54th 'Street, Omaha, Nebraska' 68117.
The name of the initial registered agent at • such address. is
Richard C. McNeil.
•
• • ARTICLE VI
•
The names and addresses of the initial Board of Directors of
the Corporation shall be as follows:
Name . Address
Richard C. McNeil 5002 South 54th Street
Omaha, Nebraska 68117
•
Sharon C. McNeil
5002 tvutfi'SdfIC"stree 't - -•• "
Omaha, Nebraska 68117
•
William E. Reicks 5437 South 50th Street
Omaha, Nebraska 68117
•
•
ECCIC1-2 ,,.-_i e
John B. Balkus 5504 "S" Street
Omaha, Nebraska. 68117
David C. Ostblum 5823 "T" Street
Omaha, Nebraska 68117
•
ARTICLE VII
The names and addresses of the incorporators are:
Name • Address
•
Gregg H. Coffman 1823 Harney Street
100 Historic Library Plaza
• • Omaha, Nebraska 68102
Karen M. Beard 1823 Harney Street
100 Historic Library Plaza
• Omaha, Nebraska 68102
Dated this 15th day of December, 1983.
Greg.A0 . o Incorpor
•
Kardn M. Beard, ncorporator
GHC43
•
•
• • : -1.Ms..tw Gm
��._q�1,�r1A.at:{15 C`• • "iE.lIJ1i COU
CORDED 1 :t 11G�!" MLI iLi.b:
•
7•I g
•
•
•
•
;� I
1
ATTACHMENT IV
BOARD OF DIRECTORS
STEPHEN CENTER, INC.
1998
EXECUTIVE COMMITTEE
President: Brandon Melton (Bitsy)
Vice-President, Human Resources
Catholic Health Services
3439 South 161 Circle
Omaha,Ne 68114
334-1104 (H) 333-4665 (Home Fax) 548-1213 (W) 393-6427 (Fax)
President Elect: Cindy Frank
Community Volunteer
517 South 94 Avenue
Omaha,Nebraska 68114
399-9362 399-8195 (fax)
Treasurer: Lou Anne Rinn
General Attorney
Union Pacific Railroad
2119 So. 61st Street
Omaha,NE 68106
553-8651 (H) 271-4227(W) 271-7107(FAX)
Secretary: Jacqueline Devaney, RN
Community Volunteer
3542 South 48th Avenue
Omaha,NE 68106
553-5603
Executive
Director: Judy Mascarello
7915 Chinawood Ave. Apt#3
LaVista,NE 68128
339-4895 (H) 731-0238 (W)
BOARD MEMBERS
Sponsors
Board President: Pam Hoesing
8723 No. 57th St.
Omaha,NE 68152
571-3075 (H) 354-6504 (W) ,354-6480
•
Edmund Russell Sheryl Hamilton
Russell&Associates 705 No. 155th Ave.
7402 Webster St. Omaha,NE 68154
Omaha,NE 68114 498-4489(H)
391-4489 (H)
Jacqueline L. Boryca
Robert J. Broderick Bank of Nebraska
Peter Kewitt (Retired) 15561 Shirley Circle
3434 No. 143 Circle Omaha,NE 68144 333-7489 (H)
Omaha,Ne 68164 331-8570 (FAX)
496-2815 (H) 331-8550 ext. 120(W)
Bonnie Janke Gwen Teeple
10021 Harney Parkway South 50 Pickard Lane
Omaha,NE 68114 Council Bluff, Iowa 51501
398-1397(H) 366-9705 (H)
636-3001 (W)
Steve Hayes
CEO Omaha Printing
17025 West Maple Road
Omaha,Nebraska 68116
734-4400(W)
289-3139(H)
Pennie Davis
CEO Greater Omaha Packing
8405 Indian Hills Dr.
Omaha,Ne 68114
731-3480(W)
391-2358 (H)
THE STEPHEN CENTER
2723 "Q" Street • OMAHA. NEBRASKA 681.07-3447 • 731-0238
Crisis Shelter - MOBA Medical Clinic - Transitional Housing Program - HERO Program
Board of Directors
Brandon Melton
President
Cindy Frank July 28, 1997
Vice President
Betty Nelum Planning Department
Secretary
Omaha/Douglas Civic Center
Thomas McCormick
1819 Farnam Street, Suite 1100
Treasurer
Jackie Boryca Omaha, Ne 68183-0110
Robed Broderick
Pennie Davis
Jacqueline Devaney
Steve Hayes James Hollander To Whom It May Concern:
Michelle Mapes
Stephanie S.Mason
Patty Mendlik The Stephen Center Board of Directors has approved the signing of the contract
Tim McMahon
John Minton with the City of Omaha for release of the Home Fund Grant awarded to the
Betsye Ries,Paragas Stephen Center, so thatplans mayproceed on the eight efficiencyapartment
Gerald Ries,M.D. p P g p
Louise Anne Rinn building to be built adjacent to the Stephen Center.
Edmund Russell
Kathy Safranek
Judy Mascarello As the Executive Director of the Corporation, Mrs. Judith Mascarello has been
Executive Director delegated the administrative and management responsibilities required to carry out
Richard Wilinard the center's mission, strategic education and operational objectives. Judith
Director of Facilities
Mascarello is authorized to execute such documents as are necessary to fulfill the
Margaret Evans
Director of H.E.R.O.Program Stephen Center's contractual obligation.
Lora Johnson
C.D.Counselor If you have questions or need clarification of Mrs. Mascarello's responsibilities and
Phyllis Knicky authority, as Executive Director of the Stephen Center, please don't hesitate to call
Director of MOBA Clinie me at 402-334-1104.
Bev Hoschar
Administrative Assistant
Sincerely Yours,
V. Brandon Melton
President, Board of Director
Stephen Center
cc: Judith Mascarello
•
EXHIBIT B
SCOPE OF WORK
The Stephen Center, Inc., will use City of Omaha Home Investment Partnerships Program funds
to construct an eight (8) unit, approximately 5,000 square foot, transitional living facility for
occupancy by homeless individuals with disabilities. This transitional living facility will be
constructed on land owned by the Stephen Center, Inc., just east of its emergency shelter for the
homeless at 2723 Q Street.
The facility will contain eight (8) one-bedroom units containing bathrooms and kitchen eating
space. In addition, the facility will contain space for laundry, meetings, and counseling offices.
The project will be completed in reasonably like manner to the attached site plan schematic and
floor plan layout.
Architectural and site plan design and specifications will be approved by the Planning Department
through the normal building review and building construction permit processes.
Total estimated cost of the construction work is $420,000, including soft costs and contingency.
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4
Exhibit E
ACKNOWLEDGMENT OF COVENANT
RUNNING WITH LAND
WHEREAS, on , by Resolution No. , the City Council of the
City of Omaha authorized the execution of an Agreement between the City of Omaha and The
Stephens Center, Inc., a Non-Profit Corporation, wherein the City would provide a grant to The
Stephens Center, Inc. in the amount of from FY98 HOME Investment Partnerships
Program funds for the acquisition and rehabilitation of approximately eight dwelling units to be
used as transitional housing by low income households currently residing in emergency shelters
for the homeless to be located at Omaha,Nebraska, and legally described as:
Legal Description. (commonly known as )
WHEREAS, The Stephens Center, Inc. hereby acknowledges as follows: The Stephens
Center, Inc.,for itself, its successors and assigns, further agrees that the restrictions and covenants
in the Agreement shall be covenants running with the land and that they, in any event and without
regard to technical classification and designation, legal or otherwise, shall be binding, to the fullest
extent permitted by law and equity, and enforceable by, the City, its successors and assigns,
against The Stephens Center,Inc., its successors and assigns,to any part of the property that is the
subject of the Agreement, or any interest therein and any party in the possession or occupancy of
any part of said property. The Stephens Center, Inc., for itself, its successors, and assigns, further
covenants and agrees, that without regard to whether the City or the United States is an owner of
any interest in the land to which the covenants relate, the covenants running with the land shall
remain in effect for fifteen years after the date of the completion of the rehabilitation project, the
period specified or referred to in the Agreement, or until such date thereafter to which it may be
modified by proper amendment of the Agreement,on which date such covenants may terminate.
The Stephens Center, Inc., for itself, successor and assigns, further covenants and agrees that the
transitional housing units will be maintained for low income households currently residing in
emergency shelters for the homeless for the term of this covenant.
THE STEPHENS CENTER, INC.
a Non-profit Corporation
By:
Judy Mascarello,Executive Director
Date:
v
Covenant Running with Land-Address
Page 2
STATE OF NEBRASKA )
) s.s.
COUNTY OF DOUGLAS )
On this day of , 1998, before me, the
undersigned, a Notary Public in and for said County,personally came Judy Mascarello, Executive
Director, The Stephens Center, Inc., a Non-Profit Corporation, personally to me known to be the
identical person whose name is affixed to the above and foregoing instrument as Acknowledgment
of Covenants Running with Land, and have acknowledged the same instrument and the execution
thereof to be his voluntary act and deed, for the purpose therein expressed.
In testimony whereof, I have hereunto set my hand and affixed by notarial seal at Omaha,
Nebraska on the day and date last above written.
NOTARY PUBLIC
My Commission expires
tJ8ii i /
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.
le '
•
• Owners shall use media accessible to minorities when advertising
the availability of rental units
• Owners shall use the Equal Housing Opportunity logo, slogan or
statement in all advertising.
• Owners shall maintain a non-discriminatory hiring policy.
▪ Owners shall adopt a fair housing policy.
2. Informing low and moderate-income persons about available units
Property Owners having vacant 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 with 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
-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-
A
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:
. 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-
v r
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
�� WASHINGTON. D.C. 20503
.-raw •
November 19, 1993
THE DIRECTOR For go ME
CIRCULAR NO. A-110
Revised.
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Uniform Administrative Requirements for Grants and
Agreements With Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations
1. Purpose. This Circular sets forth standards for obtaining
consistency and uniformity among Federal agencies in the
administration of grants to and agreements with institutions
of higher education, hospitals, and other non-profit
organizations.
2. Authority. Circular A-110 is issued under the authority of
31 U.S.C. 503 (the Chief Financial Officers Act) , 31 U.S.C.
1111, 41 U.S.C. :405 (the Office of Federal Procurement
Policy Act) , Reorganization Plan No. 2 of 1970, and E.O.
11541 ("Prescribing the Duties of the Office of Management
and Budget and the Domestic Policy Council in the Executive
Office of the President") .
3 . Policy. Except as provided herein, the standards set forth
in this Circular are applicable to all Federal agencies. If
any statute specifically prescribes policies or specific
requirements that differ from the standards provided herein,
the provisions of the statute shall govern.
The provisions of the sections of this Circular shall be
applied by Federal agencies to recipients. Recipients shall
apply the provisions of this Circular to subrecipients
performing substantive work under grants and agreements that
are passed through or awarded by the primary recipient, if
such subrecipients are organizations described in paragraph
1.
This Circular does not apply to grants, contracts, or other
agreements between the Federal Government and units of State
or local governments covered by OMB Circular A-102, "Grants
and Cooperative Agreements with State and Local
Governments, " and the Federal agencies' grants management
common rule which standardized and codified the
administrative requirements Federal agencies impose on State
and local grantees. In addition, subawards and contracts to
State or local governments are not covered by this Circular.
However, this Circular applies to subawards made by State
and local governments to organizations covered by this
Circular. Federal agencies may apply the provisions of this
Circular to commercial organizations, foreign governments,
organizations under the jurisdiction of foreign governments,
and international organizations.
4. Definitions. Definitions of key terms used in this Circular
are contained in Section .2 in the Attachment.
5. Reauired Action. The specific requirements and
responsibilities of Federal agencies and institutions of
higher education, hospitals, and other non-profit
organizations are set forth in this Circular. Federal
agencies responsible for awarding and administering grants
to and other agreements with organizations described in
paragraph 1 shall adopt the language in the Circular unless
different provisions are required by Federal statute or are
approved by OMB.
6. 0MB Responsibilities. OMB will review agency regulations
and implementation of this Circular, and will provide
interpretations of policy requirements and assistance to
insure effective and efficient implementation. Any
exceptions will be subject to approval by OMB, as indicated
in Section .4 in the Attachment. Exceptions will only be
made in particular cases where adequate justification is
presented.
7. Information Contact. Further information concerning this
Circular may be obtained by contacting the Office of Federal
Financial Management, Office of Management and Budget,
Washington, DC 20503, Telephone (202) 395-3993.
8. Termination Review Date. This Circular will have a policy
review three years from date of issuance.
. 9. Effective Date. The standards set forth in this Circular
which affect Federal agencies will be effective 30 days.
after publication of the final revision in the Federal
Register. Those standards which Federal agencies impose on
grantees will be adopted by agencies in codified regulations
within six months after publication in the Federal Register.
Earlier implementation is encoura• --
4-
*� E. Panetta
•irector
Attachment
-2-
•
Grants and Agreements with Institutions of Higher Education,
and Other Non-Profit
Organizations •
Hospitals,
SUBPART A - GENERAL
Sec
.1 Purpose.
X .2 Definitions.
.3 Effect on other issuances.
.4 Deviations.
X .5 Subawards. 1
SUBPART B - PRE-AWARD REQUIREMENTS
. 10- Purpose.
. 11 Pre-award policies.
. 12 Forms for applying for Federal assistance.
X . 13 Debarment and suspension.
X . 14 Special award conditions.
X . 15 Metric system of measurement.
X . 16 Resource Conservation and Recovery Act.
. 17 Certifications and representations.
SUBPART C - POST-AWARD REQUIREMENTS
Financial and Program Management
.20 Purpose of financial and program management.
X . 21 Standards for financial management systems.
x . 22 Payment.
.23 Cost sharing or matching.
.24 Program income.
.25 Revision of budget and program plans.
k' .26 Non-Federal audits.
K .27 Allowable costs.
X .28 Period of availability of funds.
•
Property Standards
X' . 30 Purpose of property standards.
X . 31 Insurance coverage.
.32 Real property.
.33 Federally-owned and exempt property.
Y .34 Equipment.
)( . 35 Supplies and other expendable property.
X . 36 Intangible property.
X .37 Property trust relationship.
3
r
Procurement Standards
,.40 Purpose of procurement standards.
,.41 Recipient responsibilities.
k .42 Codes of conduct.
x' .43 Competition.
X .44 Procurement procedures.
X .45 Cost and price analysis.
X .46 Procurement records.
X .47 Contract administration.
,.48 Contract provisions. .
Reports and Records
.50 Purpose of reperts and records.
,.51 Monitoring and reporting program performance.
. 52 Financial reporting.
.53 Retention and access requirements for records.
Termination and Enforcement
X .. 60 Purpose of termination and enforcement.
•
X . 61 Termination.
•
X . 62 Enforcement. ,
SUBPART D - AFTER-THE-AWARD REQUIREMENTS
.70 Purpose.
.71 Closeout procedures.
subsequent adjustments and continuing responsibilities.
- X .73 Collection of amounts due.
APPENDIX A - CONTRACT PROVISIONS
SUBPART A - General
urpose. This Circular establishes uniform
a- dministrate irements for Federal grants and a ments
awarded to institute f higher educatio pitals, and other
non-profit organizations. ing agencies shall not
impose additional or into • nt r ' ements, except as
provided in Sect' .4, and .14 or ss specifically
require eral statute or executive order. o it
izations that implement Federal programs for the State
also subject to State requirements.
.2 Definitions.
(a) Accrued expenditures means the charges incurred by the
recipient during a given period requiring the provision of
4
funds for: (1) goods and other tangible property received;
• (2) services performed by employees, contractors,
subrecipients, and other payees; and, (3) other amounts
becoming owed under programs for which no current services
or performance is required.
(b) Accrued income means the sum of: (1) earnings during a given
period from (i) services performed by the recipient, and*
(ii) goods and other tangible property delivered to
purchasers, and (2) amounts becoming owed to the recipient
for which no current services or performance is required by
the recipient.
(c) Acquisition cost of equipment means the net invoice price of
the equipment, including the cost of mcdificaticns,
attachments, accessories, or auxiliary apparatus necessary
to make the property usable for the purpose for which it was
acquired. Other charges, such as the cost of installation,
transportation, taxes, duty or protective in-transit
insurance, shall be included or excluded from the unit
acquisition cost in accordance with the recipient's regular
accounting practices.
(d) Advance means a payment made by Treasury check or other
appropriate payment mechanism to a recipient upon its
request either before outlays are made by the recipient or
through the use of predetermined payment schedules.
(e) Award means financial assistance that provides support or
stimulation to accomplish a public purpose. Awards include
grants and other agreements in the form of money or property
in lieu of money, by the Federal Government to an eligible
recipient. The term does not include: technical assistance,
which provides services instead of money; other assistance
in the form of loans, loan guarantees, interest subsidies,
or insurance; direct payments of any kind to individuals;
and, contracts which are required to be entered into and
administered under procurement laws and regulations.
(f) Cash contributions means the recipient's cash outlay,
including the outlay of money contributed to the recipient
by third parties.
(g) Closeout means the process by which a Federal awarding
agency determines that all applicable administrative actions
and all required work of the award have been completed by
the recipient and Federal awarding agency.
(h) Contract means a procurement contract under an award or
subaward, and a procurement subcontract under a recipient's
or subrecipient's contract.
5
(i) Cost sharing or matching means that portion of project or
program costs not borne by the Federal Government.
(j) Date of completion means the date on which all work under an
award is completed or the date on the award document, or any
supplement or amendment thereto, on which Federal
sponsorship ends.
(k) Disallowed costs means those charges to an award that the
Federal awarding agency determines to be unallowable, in
accordance with the applicable Federal cost principles or
other terms and conditions contained in the award.
(1) Equipment means tangible nonexpendable •personal property
including exempt property charged directly to the award
having a useful life of more than one year and an
acquisition cost of $5000 or more per unit. However,
consistent with recipient policy, lower limits may be
established.
(m) Excess property means property under the control of any
Federal awarding agency that, as determined by the head
thereof, is no longer required for its needs or the
discharge of its responsibilities.
(n) Exempt property means tangible personal property acquired in
whole or in part with Federal funds, where the Federal
awarding agency has statutory authority to vest title in the
recipient without further obligation to the Federal
Government. An example of exempt property authority is
contained in the Federal Grant and Cooperative Agreement Act
(31 U.S.C. 6306) , for property acquired under an award to
conduct basic or applied research by a non-profit
institution of higher education or non-profit organization
whose principal purpose is conducting scientific research.
(o) Federal awarding agency means the Federal agency that
provides an award to the recipient.
(p) Federal funds authorized means the total amount of Federal
funds obligated by the Federal Government for use by the
recipient. This amount may include any authorized carryover
of unobligated funds from prior funding periods when
permitted by agency regulations or agency implementing
instructions.
(q) Federal share of real property, equipment, or supplies means
that percentage of the property's acquisition costs and any
improvement expenditures paid with Federal funds.
(r) Funding period means the period of time when Federal funding
is available for obligation by the recipient.
6
(s) Intangible property and debt instruments means, but is not
• limited to, trademarks, copyrights, patents and patent
applications and such property as loans, notes and other
debt instruments, lease agreements, stock and other
instruments of property ownership, whether considered
tangible or intangible.
(t) Obligations means the amounts of orders placed, contracts
and grants awarded, services received and similar
transactions during a given period that require payment by
the recipient during the same or a future period.
(u) Outlays or expenditures means charges made to the project or
program. They may be reported on a cash or accrual basis.
For reports prepared on a cash basis, outlays are the sum of
cash disbursements for direct charges for goods and
services, the amount of indirect expense charged, the value
of third party in-kind contributions applied and the amount
of cash advances and payments made to subrecipients. For
reports prepared on an accrual basis, outlays are the sum of
cash disbursements for direct charges for goods and
services, the amount of indirect expense incurred, the value
of in-kind contributions applied, and the net increase (or
decrease) in the amounts owed by the recipient for goods and
other property received, for services performed by
employees, contractors, subrecipients and other payees and
other amounts becoming owed under programs for which no
current services or performance are required.
(v) Personal property means property of any kind except real
property. It may be tangible, having physical existence, or
intangible, having no physical existence, such as
copyrights, patents, or securities.
(w) Prior approval means written approval by an authorized
official evidencing prior consent.
(x) Program income means gross income earned by the recipient
that is directly generated by a supported activity or earned
as a result of the award (see exclusions in paragraphs
.24 (e) and (h) ) . Program income includes, but is not
limited to, income-from fees for services performed, the use
or rental of real Cr personal property acquired under
federally-funded projects, the sale of commodities or items
fabricated under an award, license fees and royalties on
patents and copyrights, and interest on loans made with
award funds. Interest earned on advances of Federal funds
is not program income. Except as otherwise provided in
Federal awarding agency regulations or the terms and
conditions of the award, program income does not include the
receipt of principal on loans, rebates, credits, discounts,
etc. , or interest earned on any of them.
7
(y) project costs means all allowable costs, as set forth in the
applicable Federal cost principles, incurred by a recipient
and the value of the contributions made by third parties in
accomplishing the objectives of the award during the project
period.
(z) Project period means the period established in the award
document during which Federal sponsorship begins and ends.
(aa) Property means, unless otherwise stated, real property,
equipment, intangible property and debt instruments.
(bb) Real property means land, including land improvements,
structures and appurtenances thereto, but excludes movable
machinery and equipment.
(cc) Recipient means an organization receiving financial
assistance directly from Federal awarding agencies to carry
out a project or program. The term includes public and
private institutions of higher education, public and private
hospitals, and other quasi-public and private non-profit
organizations such as, but not limited to, community action
agencies, research institutes, educational associations, and
health centers. The term may include commercial
organizations, foreign or international organizations (such
as agencies of the United Nations) which are recipients,
subrecipients, or contractors or subcontractors of
recipients or subrecipients at the discretion of the Federal
awarding agency. The term does not include government-owned
contractor-operated facilities or research centers providing
continued support for mission-oriented, large-scale programs
that are government-owned or controlled, or are designated
as federally-funded research and development centers.
(dd) Research and development means all research activities, both
basic and applied, and all development activities that are
supported at universities, colleges, and other non-profit
institutions. "Research" is defined as a systematic study
directed toward fuller scientific knowledge or understanding
of the subject studied. "Development" is the systematic use
of knowledge and understanding gained from research directed
toward the production of useful materials, devices, systems,
or methods, including design and development of prototypes
and processes. The term research also includes activities
involving the training of individuals in research techniques
where such activities utilize the same facilities as other
research and development activities and where such
activities are not included in the instruction function.
(ee) Small awards means a grant or cooperative agreement not
exceeding the small purchase threshold fixed at 41 U.S.C.
403 (11) (currently $25, 000) .
8
(ff) Subaward means an award of financial assistance in the form
of money, or property in lieu of money, made under an award
by a recipient to an eligible subrecipient or by a
subrecipient to a lower tier subrecipient. The term
includes financial assistance when provided by any legal
agreement, even if the agreement is called a contract, but
does not include procurement of goods and services nor does
it include any form of assistance which is excluded from the
definition of "award" in paragraph (e) .
(gg) Subrecipient means the legal entity to which a subaward is
made and which is accountable to the recipient for the use
of the funds provided. The term may include foreign or
international organizations (such as agencies of the United
Nations) at the discretion of the Federal awarding agency.
(hh) Supplies means all personal property excluding equipment,
intangible property, and debt instruments as defined in this
section, and inventions of a contractor conceived or first
actually reduced to practice in the performance of work
under a funding agreement ("subject inventions") , as defined
in 37 CFR part 401, "Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government
Grants, Contracts, and Cooperative Agreements. "
(ii) Suspension means an action by a Federal awarding agency that
temporarily withdraws Federal sponsorship under an award,
pending corrective action by the recipient or pending a
decision to terminate the award by the Federal awarding
agency. Suspension of an award is a separate action from
suspension under Federal agency regulations implementing
E.O.s 12549 and 12689 , "Debarment and Suspension. "
(jj ) Termination means the cancellation of Federal sponsorship,
in whole or in part, under an agreement at any time prior to
the date of completion.
(kk) Third party in-kind contributions means the value of non-
cash contributions provided by non-Federal third parties.
Third party in-kind contributions may be in the form of real
property, equipment, supplies and other expendable property,
and the value of gbods and services directly benefiting and
specifically identifiable to the project or program.
(11) Unliguidated obligations, for financial reports prepared on
a cash basis, means the amount of obligations incurred by
the recipient that have not been paid. For reports prepared
on an accrued expenditure basis, they represent the amount
of obligations incurred by the recipient for which an outlay
has not been recorded.
9
(mm) Unobliaated balance means the portion of the funds
authorized by the Federal awarding agency that has not been
obligated by the recipient and is determined by deducting
the cumulative obligations from the cumulative funds
authorized.
(nn) Unrecovered indirect cost means the difference between the
amount awarded and the amount which could have been awarded
under the recipient's approved negotiated indirect cost
rate.
(oo) Working capital advance means a procedure where by funds are
advanced to the recipient to cover its estimated
disbursement needs for a given initial period.
. 3 Effect on other issuances. For awards subject t• his
C1 ular, all administrative requirements of codified - ogram
regal- ' ons, program manuals, handbooks and other -- regulatory
material hich are inconsistent with the requi - .ents of this
Circular sha be superseded, except to the - ent they are
required by sta - e, or authorized in acc• :ance with the
deviations provisio in Section .4 .
. 4 Deviations. The • - ice o Management and Budget (OMB)
may grant exceptions for cla of grants or recipients subject
to the requirements of this irc• -r when exceptions are not
prohibited by statute. - •wever, in - se interest of maximum
uniformity, exceptio from the require. - is of this Circular
shall be permitte• •nly in unusual circums' - .ces. Federal
awarding agenc ' - may apply more restrictive r- - irements to a
class of rec' •ients when approved by OMB. Federa -warding
agencies :y apply less restrictive requirements whe -warding
small - •ands, except for those requirements which are st- utory.
Exc=• ions on a case-by-case basis may also be made by Fede =
- -rding agencies.
. 5 Subawards. Unless sections of this Circular specifically
exclude subrecipients from coverage, the provisions of this
Circular shall be applied to subrecipients performing work under
awards if such subrecipients are institutions of higher
education, hospitals or other non-profit organizations. State
and local government subrecipients are subject to the provisions
of regulations implementing the grants management common
rule, "Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments, " published
at 53 FR 8034 (3/11/88) .
SUBPART B - Pre-Award Requirements
. 10 ur . 11 through i es
forms and instructions and e used in
appl in awards.
10
.11 Pre-award polic
ies.
(a) Use of Grants and Cooperative Agreements, and Contract . In
-ach instance, the Federal awarding agency shall deci• - on
•e appropriate award instrument (i.e. , grant, coope- -tive
a• eement, or contract) . The Federal Grant and Cooperative
Agr-ement Act (31 U.S.C. 6301-08) governs the use •f grants,
coop- ative agreements and contracts. A grant or
coope ,tive agreement shall be used only when - principal
purpose of a transaction is to accomplish a p • is purpose
of suppo or stimulation authorized by Federal statute.
The statu' -ry criterion for choosing betwee grants and
cooperative agreements is that for the lat -r, "substantial
involvement 's expected between the execu axe agency and the
State, local • -vernment, or other recipi nt when carrying
out the activi contemplated in the ag eement. " Contracts
shall be used wh-n the principal pure a is acquisition of
property or servi• es for the direct nefit or use of the
Federal Government.
(b) Public Notice and Pri .rity Settin . Federal awarding
agencies shall notify e publi of its intended funding
priorities for discreti- ary • -nt programs, unless funding
priorities are establish- • by ederal statute.
. 12 Forms for applying for 'ederal assistance.
(a) Federal awarding agencie sha comply with the applicable
report clearance requir= s.ents o 5 CFR part 1320,
"Controlling Paperwork :urdens o the Public, " with regard
to all forms used by e Federal - arding agency in place of
or as a supplement • the Standard orm 424 (SF-424) series.
(b) Applicants shall se the SF-424 serie or those forms and
instructions prescribed by the Federal -warding agency.
(c) For Federal p -grams covered by E.O. 123
"Intergover . -ntal Review of Federal Progr- "s, " the
applicant shall complete the appropriate se- ions of the SF-
424 (Application for Federal Assistance) inch ating whether
the appl ' ation was subject to review by the ate Single
Point o Contact (SPOC) . The name and address • the SPOC
for a • -rticular State can be obtained from the ' -deral
award' g agency or the Catalog of Federal Domesti
Assistance. The SPOC shall advise the applicant whether the
pro-ram for which application is made has been selec• -d by
t -t State for review.
(d) ederal awarding agencies that do not use the SF-424 fo
should indicate whether the application is subject to rev ew
by the State under E.O. 12372.
11
. 13 Debarment and suspension. Federal awarding agencies and
recipients shall comply with the nonprocurement debarment and
suspension common rule implementing E.O.s 12549 and 12689,
"Debarment and Suspension. " This common rule restricts subawards
and contracts with certain parties that are debarred, suspended
or otherwise excluded from or ineligible for participation in
Federal assistance programs or activities.
. 14 Special award conditions. If an applicant or recipient:
(a) has a history of poor performance, (b) is not financially
stable, (c) has a management system that does not meet the
standards prescribed in this Circular, (d) has not conformed to
the terms and conditions of a previous award, or (e) is not
otherwise responsible, Federal awarding agencies may impose
additional requirements as needed, provided that such applicant
or recipient is notified in writing as to: the nature of the
additional requirements, the reason why the additional
requirements are being imposed, the nature of the corrective
action needed, the time allowed for completing the corrective
actions, and the method for requesting reconsideration of the
additional requirements imposed. Any special conditions shall be
promptly removed once the conditions that prompted them have been
corrected.
. 15 Metric system of measurement. The Metric Conversion
Act, as amended by the Omnibus Trade and Competitiveness Act (15
U. S.C. 205) declares that the metric system is the preferred
measurement system for U.S. trade and commerce. The Act requires
each Federal agency to establish a date or dates in consultation
with the Secretary of Commerce, when the metric system of
measurement will be used in the agency's procurements, grants,
and other business-related activities. Metric implementation may
take longer where the use of the system is initially impractical
or likely to cause significant inefficiencies in the
accomplishment of federally-funded activities. Federal awarding
agencies shall follow the provisions of E.O. 12770, "Metric Usage
in Federal Government Programs. "
. 16 Resource Conservation and Recovery Act (RCRA) (Pub. L.
94-580 codified at 42 U.S.C. 6962) . Under the Act, any State
agency or agency of a political subdivision of a State which is
using appropriated Federal funds must comply with Section 6002.
Section 6002 requires that preference be given in procurement
programs to the purchase of specific products containing recycled
materials identified in guidelines developed by the Environmental
Protection Agency (EPA) (40 CFR parts 247-254) . Accordingly,
State and local institutions of higher education, hospitals, and
non-profit organizations that receive direct Federal awards or
other Federal funds shall give preference in their procurement
programs funded with Federal funds to the purchase of recycled
products pursuant to the EPA guidelines.
12
. 17 Certifications and representations. Unless ited
• by sta or codified regulation, each Federa ding agency
is authorize d encouraged to allow re ' ' ents to submit
certifications an resentation ired by statute, executive
order, or regulation on a basis, if the recipients have
ongoing and contiiu' ati ' s with the agency. Annual
certification representations be signed by responsible
offici ith the authority to ensure re ' nts' compliance
the pertinent requirements.
SUBPART C - Post-Award Requirements
Financial and Program Management
. 20 Purpose of financial and program management. ions
u h .28 prescribe standards nancial
management system , s for maki ents and rules for:
satisfying cost sharing and irements, accounting for
program income, bu evision approvals, ma ' s
determini owability of cost, and establishing fund
a • ility.
.21 Standards for financial management systems.
(a) Federal awarding agencies shall require recipients to relate
financial data to performance data and develop unit cost
information whenever practical.
(b) Recipients' financial management systems shall provide for
the following.
(1) Accurate, current and complete disclosure of the
financial results of each federally-sponsored project
or program in accordance with the reporting
requirements set forth in Section .52 . If a
Federal awarding agency requires reporting on an
accrual basis from a recipient that maintains its
records on other than an accrual basis, the recipient
shall not be required to establish an accrual
accounting system. These recipients may develop such
accrual data for its reports on the basis of an
analysis of the documentation on hand.
(2) Records that identify adequately the source and
application of funds for federally-sponsored
activities. These records shall contain information
pertaining to Federal awards, authorizations,
obligations, unobligated balances, assets, outlays,
income and interest.
(3) Effective control over and accountability for all
funds, property and other assets. Recipients shall
13
•
adequately safeguard all such assets and assure they
are used solely for authorized purposes.
(4) Comparison of outlays with budget amounts for each
award. Whenever appropriate, financial information
should be related to performance and unit cost data.
(5) Written procedures to minimize the time elapsing
between the transfer of funds to the recipient from the
U.S. Treasury and the issuance or redemption of checks,
warrants or payments by other means for program
purposes by the recipient. To the extent that the
provisions of the Cash Management Improvement Act
(CMIA) (Pub. L. 101-453) govern, payment methods of
State agencies, instrumentalities, and fiscal agents
shall be consistent with CMIA Treasury-State Agreements
or the CMIA default procedures codified at 31 CFR part
205, "Withdrawal of Cash from the Treasury for Advances
under Federal Grant and Other Programs. "
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs in accordance
with the provisions of the applicable Federal cost
principles and the terms and conditions of the award.
(7) Accounting records including cost accounting records
that are supported by source documentation.
(c) Where the Federal Government guarantees or insures the
repayment of money borrowed by the recipient, the Federal
awarding agency, at its discretion, may require adequate
bonding and insurance if the bonding and insurance
requirements of the recipient are not deemed adequate to
protect the interest of the Federal Government.
(d) The Federal awarding agency may require adequate fidelity
bond coverage where the recipient lacks sufficient coverage
to protect the Federal Government's interest.
(e) Where bonds are required in the situations described above,
the bonds shall be obtained from companies holding
certificates of authority as acceptable sureties, as
prescribed in 31 CPR part 223 , "Surety Companies Doing
Business with the United States. "
14
.22 Payment.
(a) Payment methods shall minimize the time elapsing between the
transfer of funds from the United States Treasury and the
issuance or redemption of checks, warrants, or payment by
other means by the recipients. Payment methods of State
agencies or instrumentalities shall be consistent with
Treasury-State CMIA agreements or default procedures
codified at 31 CFR part 205.
(b) Recipients are to be paid in advance, provided they maintain
or demonstrate the willingness to maintain: (1) written
procedures that minimize the time elapsing between the
transfer of funds and disbursement by the recipient, and (2)
financial management systems that meet the standards for
fund control and accountability as established in Section
.21. Cash advances to a recipient organization shall be
limited to the minimum amounts needed and be timed to be in
accordance with the actual, immediate cash requirements of
the recipient organization in carrying out the purpose of
the approved program or project. The timing and amount of
cash advances shall be as close as is administratively
feasible to the actual disbursements by the recipient
organization for direct program or project costs and the
proportionate share of any allowable indirect costs.
(c) Whenever possible, advances shall be consolidated to cover
anticipated cash needs for all awards made by the Federal
awarding agency to the recipient.
(1) Advance payment mechanisms include, but are not limited
to, Treasury check and electronic funds transfer.
(2) Advance payment mechanisms are subject to 31 CFR part
205.
(3) Recipients shall be authorized to submit requests for
advances and reimbursements at least monthly when electronic
fund transfers are not used.
(d) Requests for Treasury check advance payment shall be
submitted on SF-270 , "Request for Advance or Reimbursement, "
or other forms as may be authorized by OMB. This form is
not to be used when Treasury check advance payments are made
to the recipient automatically through the use of a
predetermined payment schedule or if precluded by special
Federal awarding agency instructions for electronic funds
transfer.
(e) Reimbursement is the preferred method when the requirements
in paragraph (b) cannot be met. Federal awarding agencies
may also use this method on any construction agreement, or
15
A
if the major portion of the construction project is
accomplished through private market financing or Federal
loans, and the Federal assistance constitutes a minor
portion of the project.
(1) When the reimbursement method is used, the Federal
awarding agency shall make payment within 30 days after
receipt of the billing, unless the billing is improper.
(2) Recipients shall be authorized to submit request for
reimbursement at least monthly when electronic funds
transfers are not used.
(f) If a recipient cannot meet the criteria for advance payments
and the Federal awarding agency has determined that
reimbursement is not feasible because the recipient lacks
sufficient working capital, the Federal awarding agency may
provide cash on a working capital advance basis. Under this
procedure, the Federal awarding agency shall advance cash to
the recipient to cover its estimated disbursement needs for
an initial period generally geared to the awardee's
disbursing cycle. Thereafter, the Federal awarding agency
shall reimburse the recipient for its actual cash
disbursements. The working capital advance method of
payment shall not be used for recipients unwilling or unable
to provide timely advances to their subrecipient to meet the
subrecipient's actual cash disbursements.
(g) To the extent available, recipients shall disburse funds
available from repayments to and interest earned on a
revolving fund, program income, rebates, refunds, contract
settlements, audit recoveries and interest earned on such
funds before requesting additional cash payments.
(h) Unless otherwise required by statute, Federal awarding
agencies shall not withhold payments for proper charges made
by recipients at any time during the project period unless
(1) or (2) apply.
(1) A recipient has failed to comply with the project
objectives, the terms and conditions of the award, or
Federal reporting requirements.
(2) The recipient or subrecipient is delinquent in a debt to
the United States as defined in OMB Circular A-129,
"Managing Federal Credit Programs. " Under such conditions,
the Federal awarding agency may, upon reasonable notice,
inform the recipient that payments shall not be made for
obligations incurred after a specified date until the
conditions are corrected or the indebtedness to the Federal
Government is liquidated.
16
(i) Standards governing the use of banks and other institutions
as depositories of funds advanced under awards are as
follows.
(1) Except for situations described in paragraph (i) (2) ,
Federal awarding agencies shall not require separate
depository accounts for funds provided to a recipient
or establish any eligibility requirements for
depositories for funds provided to a recipient.
However, recipients must be able to account for the
receipt, obligation and expenditure of funds.
(2) Advances of Federal funds shall be deposited and
maintained in insured accounts whenever possible.
(j ) Consistent with the national goal of expanding the
opportunities for women-owned and minority-owned business
enterprises, recipients shall be encouraged to use women-
owned and minority-owned banks (a bank which is owned at
least 50 percent by women or minority group members) .
(k) Recipients shall maintain advances of Federal funds in
interest bearing accounts, unless (1) , (2) or (3) apply.
(1) The recipient receives less than $120, 000 in Federal
awards per year.
(2) The best reasonably available interest bearing account
would not be expected to earn interest in excess of $250 per
year on Federal cash balances.
(3) The depository would require an average or minimum
balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(1) For those entities where CMIA and its implementing
regulations do not apply, interest earned on Federal
advances deposited in interest bearing accounts shall be
remitted annually to Department of Health and Human
Services, Payment Management System, Rockville, MD 20852 .
Interest amounts up to $250 per year may be retained by the
recipient for administrative expense. State universities
and hospitals shall comply with CMIA, as it pertains to
interest. If an entity subject to CMIA uses its own funds
to pay pre-award costs for discretionary awards without
prior written approval from the Federal awarding agency, it
waives its right to recover the interest under CMIA.
(m) Except as noted elsewhere in this Circular, only the
following forms shall be authorized for the recipients in
requesting advances and reimbursements. Federal agencies
17
l��
•
• shall not require more than an original and two copies of
these forms.
(1) SF-270, Request for Advance or Reimbursement. Each
Federal awarding agency shall adopt the SF-270 as a
standard form for all nonconstruction programs when
electronic funds transfer or predetermined advance
methods are not used. Federal awarding agencies,
however, have the option of using this form for
construction programs in lieu of the SF-271, "Outlay
Report and Request for Reimbursement for Construction
Programs. "
(2) SF-271, Outlay Report and Request for Reimbursement for
Construction Programs. Each Federal awarding agency
shall adopt the SF-271 as the standard form to be used
for requesting reimbursement for construction programs.
However, a Federal awarding agency may substitute the
SF-270 when the Federal awarding agency determines that
it provides adequate information to meet Federal needs.
. 23 Cost sharing or matching.
(a) 11 contributions, including cash and third part in-kind,
s = 11 be accepted as part of the recipient's c• t sharing or
mat • 'ng when such contributions meet all of e following
criter'• - .
(1) Are v- ifiable from the recipient' records.
(2) Are not i luded as contributi •ns for any other
federally-a •sted project • program.
(3) Are necessary an• reaso. :ble for proper and efficient
accomplishment of • oj-ect or program objectives.
(4) Are allowable under the -pplicable cost principles.
(5) Are not paid • the Federal overnment under another
award, exce• where authorize• by Federal statute to be
used for ••st sharing or matchi
(6) Are p-•vided for in the approved bu• --et when required
by • e Federal awarding agency.
(7) onform to other provisions of this Circul- , as
applicable.
(b) Unrecovered indirect costs may be included as part of • •st
sharing or matching only with the prior approval of the
Federal awarding agency.
18
l
-king any fund or budget transfers between the two type- of
wo supported.
(k) For bo construction and nonconstruction awards, ederal
awarding = •encies shall require recipients to - ' fy the
Federal awa •ing agency in writing promptly enever the
amount of Fe. = al authorized funds is expe ed to exceed the
needs of the re 'pient for the project • - iod by more than
$5000 or five per -nt of the Federal - •ard, whichever is
greater. This noti ' cation shall n- be required if an
application for additi- al fundi - is submitted for a
continuation award.
•
(1) When requesting approval f- .udget revisions, recipients
shall use the budget fo.:•s tha were used in the application
unless the Federal aw- ding agen • indicates a letter of
request suffices.
(m) Within 30 cale..ar days from the date o • receipt of the
request for dget revisions, Federal awa .ing agencies
shall rev' the request and notify the recipient whether
the bud- -t revisions have been approved. If •e revision is
still nder consideration at the end of 30 cale -ar days,
th- ederal awarding agency shall inform the reci• ' ent in
iting of the date when the recipient may expect th:
decision.
. 26 Non-Federal audits.
(a) Recipients and subrecipients that are institutions of higher
education or other non-profit organizations shall be subject
to the audit requirements contained in OMB Circular A-133 ,
"Audits of Institutions of Higher Education and Other Non-
Profit Institutions. "
(b) State and local governments shall be subject to the audit
requirements contained in the Single Audit Act (31 U. S.C.
7501-7) and Federal awarding agency regulations implementing
OMB Circular A-128 , "Audits of State and Local
Governments. "
(c) Hospitals not coveted by the audit provisions of OMB
Circular A-133 shall be subject to the audit requirements of
the Federal awarding agencies.
(d) Commercial organizations shall be subject to the audit
requirements of the Federal awarding agency or the prime
recipient as incorporated into the award document.
. 27 Allowable costs. For each kind of recipient, there is a
set of Federal principles for determining allowable costs .
Allowability of costs shall be determined in accordance with the
25
cost principles applicable to the entity incurring the costs.
Thus, allowability of costs incurred by State, local or
federally-recognized Indian tribal governments is determined in
accordance with the provisions of OMB Circular A-87, "Cost
Principles for State and Local Governments. " The allowability of
costs incurred by non-profit organizations is determined in
accordance with the provisions of OMB Circular A-122, "Cost
Principles for Non-Profit Organizations. " The allowability of
costs incurred by institutions of higher education is determined
in accordance with the provisions of OMB Circular A-21, "Cost
Principles for Educational Institutions. " The allowability of
costs incurred by hospitals is determined in accordance with the
provisions of Appendix E of 45 CFR part 74, "Principles for
Determining Costs Applicable to Research and Development Under
Grants and Contracts with Hospitals. " The allowability of costs
incurred by commercial organizations and those non-profit
organizations listed in Attachment C to Circular A-122 is
determined in accordance with the provisions of the Federal
Acquisition Regulation (FAR) at 48 CFR part 31.
.28 Period of availability of funds. Where a funding period
is specified, a recipient may charge to the grant only allowable
costs resulting from obligations incurred during the funding
period and any pre-award costs authorized by the Federal awarding
agency.
Property Standards
. 30 Purpose of property standards. Sections .31 through
.37 set forth uniform standards governing management and
disposition of property furnished by the Federal Government whose
cost was charged to a project supported by a Federal award.
Federal awarding agencies shall require recipients to observe
these standards under awards and shall not impose additional
requirements, unless specifically required by Federal statute.
The recipient may use its own property management standards and
procedures provided it observes the provisions of Sections
.31 through .37.
. 31 Insurance coverage. Recipients shall, at a minimum,
provide the equivalent insurance coverage for real property and
equipment acquired with 'Federal funds as provided to property
owned by the recipient. ' Federally-owned property need not be
insured unless required by the terms and conditions of the award.
Real property. Each Federal awarding agency s
prescribe re recipients conc e use and
disposition of real propert le or in part under
awards. Unless e provided by statute, suc
a , shall contain the following.
26
•
: ) Title to real property shall vest in the recipient subject
to the condition that the recipient shall use the real
property for the authorized purpose of the project as lo. g
= s it is needed and shall not encumber the property wit out
a• •roval of the Federal awarding agency.
(b) The ecipient shall obtain written approval by the .-deral
award , g agency for the use of real property in ot•er
federa y-sponsored projects when the recipient d- termines
that the •roperty is no longer needed for the p •ose of the
original • oject. Use in other projects shall .e limited to
those unde federally-sponsored projects (i.e , awards) or
programs tha• have purposes consistent with • ose authorized
for support b the Federal awarding agency.
(c) When the real pr•• •erty is no longer need- • as provided in
paragraphs (a) an' (b) , the recipient s . 11 request
disposition instru • ions from the Feder-1 awarding agency or
its successor Federa awarding agency The Federal awarding
agency shall observe • e or more of e following
disposition instructio - .
(1) The recipient may be •ermit -d to retain title without
further obligation to • e :ederal Government after it
compensates the Federal Government for that percentage
=t value of the property
of the current fair mark p p y
attributable to the Fe• -r participation in the
project.
(2) The recipient may b- directed o sell the property
under guidelines p ovided by th Federal awarding
agency and pay t - Federal Gover ent for that
percentage of t - current fair mar et value of the
property attri• table to the Federa participation in
the project ( - ter deducting actual d reasonable
selling and -ix-up expenses, if any, om the sales
proceeds) . When the recipient is autho ized or
required • sell the property, proper sa es procedures
shall be -stablished that provide for competition to
the ext: t practicable and result in the hi hest
possib e return.
(3) The . ecipient may be directed to transfer title to the
pr• •erty to the Federal Government or to an elig' le
•ird party provided that, in such cases, the rec ient
all be entitled to compensation for its attributa le
percentage of the current fair market value of the
property.
27
I410
. - 3 Federally-owned and exempt property.
(a) Fed, ally-owned property.
(1) T le to federally-owned property remains vested in a e
Fed- al Government. Recipients shall submit annu- ly
an i entory listing of federally-owned propert in
their stody to the Federal awarding agency. pon
completi••n of the award or when the propert is no
longer ne—ed, the recipient shall report • e property
to the Fede-al awarding agency for fur - Federal
agency utili =tion.
(2) If the Federal a arding agency has o further need for
the property, it - all be declar- • excess and reported
to the General Serv'ces Admin. , ration, unless the
Federal awarding age has - atutory authority to
dispose of the propert b alternative methods (e.g. ,
the authority provided b the Federal Technology
Transfer Act (15 U.S. 3 0 (I) ) to donate research
equipment to educat' , al an. non-profit organizations
in accordance wi .0. 12821 "Improving Mathematics
and Science Educ - ion in Suppo • of the National
Education Goa = . ") Appropriate i tructions shall be
issued to - recipient by the Fe. -ral awarding agency.
(b) Exempt proper- When statutory authorit exists, the
Federal awa ing agency has the option to v- -t title to
property quired with Federal funds in the r=cipient
without urther obligation to the Federal Gove "ent and
under onditions the Federal awarding agency con 'ders
app priate. Such property is "exempt property. " hould a
F eral awarding agency not establish conditions, ti le to
xempt property upon acquisition shall vest in the re 'pient
without further obligation to the Federal Government.
. 34 Equipment.
(a) Title to equipment acquired by a recipient with Federal
funds shall vest in the recipient, subject to conditions of
this section.
(b) The recipient shall not use equipment acquired with Federal
funds to provide services to non-Federal outside
organizations for a fee that is less than private companies
charge for equivalent services, unless specifically
authorized by Federal statute, for as long as the Federal
Government retains an interest in the equipment.
(c) The recipient shall use the equipment in the project or
program for which it was acquired as long as needed, whether
or not the project or program continues to be supported by
28
Federal funds and shall not encumber the property without
approval of the Federal awarding agency. When no longer
needed for the original project or program, the recipient
shall use the equipment in connection with its other
federally-sponsored activities, in the following order of
priority: (i) Activities sponsored by the Federal awarding
agency which funded the original project, then (ii)
activities sponsored by other Federal awarding agencies.
(d) During the time that equipment is used on the project or
program for which it was acquired, the recipient shall make
it available for use on other projects or programs if such
other use will not interfere with the work on the project or
program for which the equipment was originally acquired.
First preference for such other use shall be given to other
projects or programs sponsored by the Federal awarding
agency that financed the equipment; second preference shall
be given to projects or programs sponsored by other Federal
awarding agencies. If the equipment is owned by the Federal
Government, use on other activities not sponsored by the
Federal Government shall be permissible if authorized by the
Federal awarding agency. User charges shall be treated as
program income.
(e) When acquiring replacement equipment, the recipient may use
the equipment to be replaced as trade-in or sell the
equipment and use the proceeds to offset the costs of the
replacement equipment subject to the approval of the Federal
awarding agency.
(f) The recipient's property management standards for equipment
acquired with Federal funds and federally-owned equipment
shall include all of the following.
(1) Equipment records shall be maintained accurately and
shall include the following information.
(i) A description of the equipment.
(ii) Manufacturer's serial number, model number,
Federal stock number, national stock number,
or other identification number.
(iii) Source of the equipment, including the award
number.
(iv) Whether title vests in the recipient or the
Federal Government.
(v) Acquisition date (or date received, if the
equipment was furnished by the Federal
Government) and cost.
29
11111
(vi) Information from which one can calculate the
percentage of Federal participation in the
cost of the equipment (not applicable to
equipment furnished by the Federal
Government) .
(vii) Location and condition of the equipment and
the date the information was reported.
/
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of
disposal and sales price or the method used
to determine current fair market value where
a recipient compensates the Federal awarding
agency for its share.
(2) Equipment owned by the Federal Government shall be
identified to indicate Federal ownership.
(3) A physical inventory of equipment shall be taken and
the results reconciled with the equipment records at
least once every two years. Any differences between
quantities determined by the physical inspection and
those shown in the accounting records shall be
investigated to determine the causes of the difference.
The recipient shall, in connection with the inventory,
verify the existence, current utilization, and
continued need for the equipment.
(4) A control system shall be in effect to insure adequate
safeguards to prevent loss, damage, or theft of the
equipment. Any loss, damage, or theft of equipment
shall be investigated and fully documented; if the
equipment was owned by the Federal Government, the
recipient shall promptly notify the Federal awarding
agency.
(5) Adequate maintenance procedures shall be implemented to
keep the equipment in good condition.
(6) Where the recipient is authorized or required to sell
the equipment, proper sales procedures shall be
established which provide for competition to the extent
practicable and result in the highest possible return.
(g) When the recipient no longer needs the equipment, the
equipment may be used for other activities in accordance
with the following standards. For equipment with a current
per unit fair market value of $5000 or more, the recipient
may retain the equipment for other uses provided that_
compensation is made to the original Federal awarding agency
30
•
or its successor. The amount of compensation shall be
computed by applying the percentage of Federal participation
in the cost of the original project or program to the
current fair market value of the equipment. If the
recipient has no need for the equipment, the recipient shall
request disposition instructions from the Federal awarding
agency. The Federal awarding agency shall determine whether
the equipment can be used to meet the agency's requirements.
If no requirement exists within that agency, the
availability of the equipment shall be reported to the
General Services Administration by the Federal awarding
agency to determine whether a requirement for the equipment
exists in other Federal agencies. The Federal awarding
agency shall issue instructions to the recipient no later
than 120 calendar days after the recipient's request and the
following procedures shall govern.
(1) If so instructed or if disposition instructions are not
issued within 120 calendar days after the recipient's
request, the recipient shall sell the equipment and
reimburse the Federal awarding agency an amount
• computed by applying to the sales proceeds the
percentage of Federal participation in the cost of the
original project or program. However, the recipient
shall be permitted to deduct and retain from the
Federal share $500 or ten percent of the proceeds,
whichever is less, for the recipient's selling and
handling expenses.
(2) If the recipient is instructed to ship the equipment
elsewhere, the recipient shall be reimbursed by the
Federal Government by an amount which is computed by
applying the percentage of the recipient's
participation in the cost of the original project or
program to the current fair market value of the
equipment, plus any reasonable shipping or interim
storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of
the equipment, the recipient shall be reimbursed by the
Federal awarding agency for such costs incurred in its
disposition.
(4) The Federal awarding agency may reserve the right to
transfer the title to the Federal Government or to a
third party named by the Federal Government when such
third party is otherwise eligible under existing
statutes. Such transfer shall be subject to the
following standards.
31
C
(i) The equipment shall be appropriately
identified in the award or otherwise made •
known to the recipient in writing.
(ii) The Federal awarding agency shall issue
disposition instructions within 120 calendar
days after receipt of a final inventory. The
final inventory shall list all equipment
acquired with grant funds and federally-owned
equipment. If the Federal awarding agency
fails to issue disposition instructions
within the 120 calendar day period, the
recipient shall apply the standards of this
section, as appropriate.
(iii) When the Federal awarding agency exercises
its right to take title, the equipment shall
be subject to the provisions for federally-
owned equipment.
. 35 Supplies and other expendable property.
(a) Title to supplies and other expendable property shall vest
in the recipient upon acquisition. If there is a residual
inventory of unused supplies exceeding $5000 in total
aggregate value upon termination or completion of the
project or program and the supplies are not needed for any
other federally-sponsored project or program, the recipient
shall retain the supplies for use on non-Federal sponsored
activities or sell them, but shall, in either case,
compensate the Federal Government for its share. The amount
of compensation shall be computed in the same manner as for
equipment.
(b) The recipient shall not use supplies acquired with Federal
funds to provide services to non-Federal outside
organizations for a fee that is less than private companies
charge for equivalent services, unless specifically
authorized by Federal statute as long as the Federal
Government retains an interest in the supplies.
. 36 Intangible proprty.
(a) The recipient may copyright any work that is subject to
copyright and was developed, or for which ownership was
purchased, under an award. The Federal awarding agency(ies)
reserve a royalty-free, nonexclusive and irrevocable right
to reproduce, publish, or otherwise use the work for Federal
purposes, and to authorize others to do so.
(b) Recipients are subject to applicable regulations governing
patents and inventions, including government-wide
32
regulations issued by the Department of Commerce at 37 CFR
part 401, "Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government
Grants, Contracts and Cooperative Agreements. "
(c) Unless waived by the Federal awarding agency, the Federal
Government has the right to (1) and (2) .
(1) Obtain, reproduce, publish or otherwise use the data
first produced under an award.
(2) Authorize others to receive, reproduce, publish, or
otherwise use such data for Federal purposes.
(d) Title to intangible property and debt instruments acquired
under an award or subaward vests upon acquisition in the
recipient. The recipient shall use that property for the
originally-authorized purpose, and the recipient shall not
encumber the property without approval of the Federal
awarding agency. When no longer needed for the originally
authorized purpose, disposition of the intangible property
shall occur in accordance with the provisions of paragraph
. 34 (g) .
. 37 Property trust relationship. Real property, equipment,
intangible property and debt instruments that are acquired or
improved with Federal funds shall be held in trust by the
recipient as trustee for the beneficiaries of the project or
program under which the property was acquired or improved.
Agencies may require recipients to record liens or other
appropriate notices of record to indicate that personal or real
property has been acquired or improved with Federal funds and
that use and disposition conditions apply to the property.
Procurement Standards
.40 Purpose of procurement standards. Sections .41.
through .4:3 set forth standards for use by recipients in
establishing procedures for the procurement of supplies and other
expendable property, equipment, real property and other services
with Federal funds. These standards are furnished to ensure that
such materials and services are obtained in an effective manner
and in compliance with the provisions of applicable Federal
statutes and executive orders. No additional procurement
standards or requirements shall be imposed by the Federal
awarding agencies upon recipients, unless specifically required
by Federal statute or executive order or approved by OMB.
.41 Recipient responsibilities. The standards contained in
this section do not relieve the recipient of the contractual
responsibilities arising under its contract(s) . The recipient is
the responsible authority, without recourse to the Federal-
33
awarding agency, regarding the settlement and satisfaction of all
contractual and administrative issues arising out of procurements
entered into in support of an award or other agreement. This
includes disputes, claims, protests of award, source evaluation
or other matters of a contractual nature. Matters concerning
violation of statute are to be referred to such Federal, State or
local authority as may have proper jurisdiction.
.42 Codes of conduct. The recipient shall maintain written
standards of conduct governing the performance of its employees
engaged in the award and administration of contracts. No
employee, officer, or agent shall participate in the selection,
award, or administration of a contract supported by Federal funds
if a real or apparent conflict of interest would be involved.
Such a conflict would arise when the employee, officer, or agent,
any member of his or her immediate family, his or her partner, or
' an organization which employs or is about to employ any of the
parties indicated herein, has a financial or other interest in
the firm selected for an award. The officers, employees, and
agents of the recipient shall neither solicit nor accept
gratuities, favors, or anything of monetary value from
contractors, or parties to subagreements. However, recipients
may set standards for situations in which the financial interest
is not substantial or the gift is an unsolicited item of nominal
value. The standards of conduct shall provide for disciplinary
actions to be applied for violations of such standards by
officers, employees, or agents of the recipient.
.43 Competition. All procurement transactions shall be
conducted in a manner to provide, to the maximum extent
practical, open and free competition. The recipient shall be
alert to organizational conflicts of interest as well as
noncompetitive practices among contractors that may restrict or
eliminate competition or otherwise restrain trade. In order to
ensure objective contractor performance and eliminate unfair
competitive advantage, contractors that develop or draft
specifications, requirements, statements of work, invitations for
bids and/or requests for proposals shall be excluded from
competing for such procurements. Awards shall be made to the
bidder or offeror whose bid or offer is responsive to the
solicitation and is most advantageous to the recipient, price,
quality and other factors considered. Solicitations shall
clearly set forth all requirements that the bidder or offeror
shall fulfill in order for the bid or offer to be evaluated by
the recipient. Any and all bids or offers may be rejected when
it is in the recipient's interest to do so.
. 44 Procurement procedures.
(a) All recipients shall establish written procurement
procedures. These procedures shall provide for, at a
minimum, that (1) , (2) and (3) apply.
34
(1) Recipients avoid purchasing unnecessary items.
(2) Where appropriate, an analysis is made of lease and
purchase alternatives to determine which would be the
most economical and practical procurement for the
Federal Government.
(3) Solicitations for goods and services provide for all of
the following.
(i) A clear and accurate description of the
technical requirements for the material,
product or service to be procured. In
competitive procurements, such a description
shall not contain features which unduly
restrict competition.
(ii) Requirements which the bidder/offeror must
fulfill and all other factors to be used in
evaluating bids or proposals.
(iii) A description, whenever practicable, of
technical requirements in terms of functions
to be performed or performance required,
including the range of acceptable
characteristics or minimum acceptable
standards.
(iv) The specific features of "brand name or
equal" descriptions that bidders are required
to meet when such items are included in the
solicitation.
(v) The acceptance, to the extent practicable and
economically feasible, of products and
services dimensioned in the metric system of
measurement.
(vi) Preference, to the extent practicable and
economically feasible, for products and
services that conserve natural resources and
protect the environment and are energy
efficient.
(b) Positive efforts shall be made by recipients to utilize
small businesses, minority-owned firms, and women's business
enterprises, whenever possible. Recipients of Federal
awards shall take all of the following steps to further this
goal.
35
(1) Ensure that small businesses, minority-owned firms, and
women's business enterprises are used to the fullest
extent practicable.
(2) Make information on forthcoming opportunities available
and arrange time frames for purchases and contracts to
encourage and facilitate participation by small
businesses, minority-owned firms, and women's business
enterprises.
(3) Consider in the contract process whether firms
competing for larger contracts intend to subcontract
with small businesses, minority-owned firms, and
women's business enterprises.
(4) Encourage contracting with consortiums of small
businesses, minority-owned firms and women's business
enterprises when a contract is too large for one of
these firms to handle individually.
(5) Use the services and assistance, as appropriate, of
such organizations as the Small Business Administration
and the Department of Commerce's Minority Business
Development Agency in the solicitation and utilization
of small businesses, minority- owned firms and women's
business enterprises.
(c) The type of procuring instruments used (e.g. , fixed price
contracts, cost reimbursable contracts, purchase orders, and
incentive contracts) shall be determined by the recipient
but shall be appropriate for the particular procurement and
for promoting the best interest of the program or project
involved. The "cost-plus-a-percentage-of-cost" or
"percentage of construction cost" methods of contracting
shall not be used.
(d) Contracts shall be made only with responsible contractors
who possess the potential ability to perform successfully
under the terms and conditions of the proposed procurement.
Consideration shall be given to such matters as contractor
integrity, record of past performance, financial and
technical resources or accessibility to other necessary
resources. In certain circumstances, contracts with certain
parties are restricted by agencies' implementation of E.O.s
12549 and 12689, "Debarment and Suspension. "
(e) Recipients shall, on request, make available for the Federal
awarding agency, pre-award review and procurement documents,
such as request for proposals or invitations for bids,
independent cost estimates, etc. , when any of the following
conditions apply.
36
• (1) A recipient's procurement procedures or operation fails
to comply with the procurement standards in the Federal
awarding agency's implementation of this Circular.
(2) The procurement is expected to exceed the small
purchase threshold fixed at 41 U.S.C. 403 (11)
(currently $25, 000) and is to be awarded without
competition or only one bid or offer is received in
response to a solicitation.
(3) The procurement, which is expected to exceed the small
purchase threshold, specifies a "brand name" product.
(4) The proposed award over the small purchase threshold is
to be awarded to other than the apparent low bidder
under a sealed bid procurement.
(5) A proposed contract modification changes the scope of a
contract or increases the contract amount by more than
the amount of the small purchase threshold.
.45 Cost and price analysis. Some form of cost or price
analysis shall be made and documented in the procurement files in
connection with every procurement action. Price analysis may be
accomplished in various ways, including the comparison of price
quotations submitted, market prices and similar indicia, together
with discounts. Cost analysis is the review and evaluation of
each element of cost to determine reasonableness, allocability
and allowability.
.46 Procurement records. Procurement records and files for
purchases in excess of the small purchase threshold shall include
the following at a minimum: (a) basis for contractor selection,
(b) justification for lack of competition when competitive bids
or offers are not obtained, and (c) basis for award cost or
price.
.47 Contract administration. A system for contract
administration shall be maintained to ensure contractor
conformance with the terms, conditions and specifications of the
contract and to ensure adequate and timely follow up of all
purchases. Recipients shall evaluate contractor performance and
document, as appropriate, whether contractors have met the terms,
conditions and specifications of the contract.
.48 Contract provisions. The recipient shall include, in
addition to provisions to define a sound and complete agreement,
the following provisions in all contracts. The following
provisions shall also be applied to subcontracts.
(a) Contracts in excess of the small purchase threshold shall
contain contractual provisions or conditions that allow for
37
administrative, contractual, or legal remedies in instances
in which a contractor violates or breaches the contract
terms, and provide for such remedial actions as may be
appropriate.
(b) All contracts in excess of the small purchase threshold
shall contain suitable provisions for termination by the
recipient, including the manner by which termination shall
be effected and the basis for settlement. In addition, such
contracts shall describe conditions under which the contract
may be terminated for default as well as conditions where
the contract may be terminated because of circumstances
beyond the control of the contractor.
(c) Except as otherwise required by statute, an award that
requires the contracting (or subcontracting) for
construction or facility improvements shall provide for the
recipient to follow its own requirements relating to bid
guarantees, performance bonds, and payment bonds unless the
construction contract or subcontract exceeds $100, 000. For
those contracts or subcontracts exceeding $100, 000, the
Federal awarding agency may accept the bonding policy and
requirements of the recipient, provided the Federal awarding
agency has made a determination that the Federal
Government's interest is adequately protected. If such a
determination has not been made, the minimum requirements
shall be as follows.
(1) A bid guarantee from each bidder equivalent to five
percent of the bid price. The "bid guarantee" shall
consist of a firm commitment such as a bid bond,
certified check, or other negotiable instrument
accompanying a bid as assurance that the bidder shall,
upon acceptance of his bid, execute such contractual
documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for
100 percent of the contract price. A "performance
bond" is one executed in connection with a contract to
secure fulfillment of all the contractor's obligations
under such contract.
(3) A payment bond on the part of the contractor for 100
percent of the contract price. A "payment bond" is one
executed in connection with a contract to assure
payment as required by statute of all persons supplying
labor and material in the execution of the work
provided for in the contract.
(4) Where bonds are required in the situations described
herein, the bonds shall be obtained from companies
holding certificates of authority as acceptable -
38
sureties pursuant to 31 CFR part 223 , "Surety Companies
Doing Business with the United States. "
(d) All negotiated contracts (except those for less than the
small purchase threshold) awarded by recipients shall
include a provision to the effect that the recipient, the
Federal awarding agency, the Comptroller General of the
United States, or any of their duly authorized
representatives, shall have access to any books, documents,
papers and records of the contractor which are directly
pertinent to a specific program for the purpose of making
audits, examinations, excerpts and transcriptions.
(e) All contracts, including small purchases, awarded by
recipients and their contractors shall contain the
procurement provisions of Appendix A to this Circular, as
•
applicable.
Reports and Records
Purpose of reports and records. Sections
through • forth the procedures f ' oring and
reporting on the recipie and program performance
and the necessa reporting hey also set forth
reco ion requirements.
. 51 Monitoring and reporting program performance.
(a) Recipients are responsible for managing and monitoring each
project, program, subaward, function or activity supported
by the award. Recipients shall monitor subawards to ensure
subrecipients have met the audit requirements as delineated
in Section . 26.
(b) The Federal awarding agency shall prescribe the frequency
with which the performance reports shall be submitted.
Except as provided in paragraph .51(f) , performance
reports shall not be required more frequently than quarterly
or, less frequently than annually. Annual reports shall be
due 90 calendar days after the grant year; quarterly or
semi-annual reports shall be due 30 days after the reporting
period. The Federal awarding agency may require annual
reports before the anniversary dates of multiple year awards
in lieu of these requirements. The final performance
reports are due 90 calendar days after the expiration or
termination of the award.
(c) If inappropriate, a final technical or performance report
shall not be required after completion of the project.
(d) When required, performance reports shall generally contain,
for each award, brief information on each of the following.
39
(1) A comparison of actual accomplishments with the goals
and objectives established for the period, the findings
of the investigator, or both. Whenever appropriate and
the output of programs or projects can be readily
quantified, such quantitative data should be related to
cost data for computation of unit costs.
(2) Reasons why established goals were not met, if
appropriate.
(3) Other pertinent information including, when
appropriate, analysis and explanation of cost overruns
or high unit costs.
(e) Recipients shall not be required to submit more than the
original and two copies of performance reports.
(f) Recipients shall immediately notify the Federal awarding
agency of developments that have a significant impact on the
award-supported activities. Also, notification shall be
given in the case of problems, delays, or adverse conditions
which materially impair the ability to meet the objectives
of the award. This notification shall include a statement
of the action taken or contemplated, and any assistance
needed to resolve the situation.
(g) Federal awarding agencies may make site visits, as needed.
(h) Federal awarding agencies shall comply with clearance
requirements of 5 CFR part 1320 when requesting performance
data from recipients.
52 Financial reporting.
(a) The •Mowing forms or such other forms as may be appr• •ed
by OMB . e authorized for obtaining financial info -tion
from recipients.
(1) SF-269 or S 69A, Financial Status R= sort.
(i) Each F- -eral awardi - agency shall require
recipient to us- e SF-269 or SF-269A to
report the s s of funds for all
nonconstru ion -•rojects or programs. A
Federa :warding a. -ncy may, however, have
the - •tion of not re. . .ring the SF-269 or SF-
=-A when the SF-270, Re•• est for Advance or
Reimbursement, or SF-272, - - sort of Federal
Cash Transactions, is determin to provide
adequate information to meet its -eds,
except that a final SF-269 or SF-26• shall
40
Termination and Enforcement
. 60 Purpose of termination and enforcement. Sections
. 61 and .62 set forth uniform suspension, termination and
enforcement procedures.
. 61 Termination.
(a) Awards may be terminated in whole or in part only if (1) ,
(2) or (3) apply•
(1) By the Federal awarding agency, if a recipient
materially fails to comply with the terms and
conditions of an award.
(2) By the Federal awarding agency with the consent of the
recipient, in which case the two parties shall agree
upon the termination conditions, including the
effective date and, in the case of partial termination,
the portion to be terminated.
(3) By the recipient upon sending to the Federal awarding
agency written notification setting forth the reasons
for such termination, the effective date, and, in the
case of partial termination, the portion to be
terminated. However, if the Federal awarding agency
determines in the case of partial termination that the
reduced or modified portion of the grant will not
accomplish the purposes for which the grant was made,
it may terminate the grant in its entirety under either
paragraphs (a) (1) or (2) .
(b) If costs are allowed under an award, the responsibilities of
the recipient referred to in paragraph .71(a) , including
those for property management as applicable, shall be
considered in the termination of the award, and provision
shall be made for continuing responsibilities of the
recipient after termination, as appropriate.
.62 Enforcement.
(a) Remedies for noncompliance. If a recipient materially fails
to comply with the terms and conditions of an award, whether
stated in a Federal statute, regulation, assurance,
application, or notice of award, the Federal awarding agency
may, in addition to imposing any of the special conditions
outlined in Section . 14 , take one or more of the
following actions, as appropriate in the circumstances.
(1) Temporarily withhold cash payments pending correction
of the deficiency by the recipient or more severe
enforcement action by the Federal awarding agency.
45
/ t�
(2) Disallow (that is, deny both use of funds and any
applicable matching credit for) all or part of the cost
of the activity or action not in compliance.
(3) Wholly or partly suspend or terminate the current
award.
(4) Withhold further awards for the project or program.
(5) Take other remedies that may be legally available.
(b) Hearings and appeals. In taking an enforcement action, the
awarding agency shall provide the recipient an opportunity
for hearing, appeal, or other administrative proceeding to
which the recipient is entitled under any statute or
regulation applicable to the action involved.
(c) Effects of suspension and termination. Costs of a recipient
resulting from obligations incurred by the recipient during
a suspension or after termination of an award are not
allowable unless the awarding agency expressly authorizes
them in the notice of suspension or termination or
subsequently. Other recipient costs during suspension or
after termination which are necessary and not reasonably
avoidable are allowable if (1) and (2) apply.
(1) The costs result from obligations which were properly
incurred by the recipient before the effective date of
suspension or termination, are not in anticipation of
it, and in the case of a termination, are
noncancellable.
(2) The costs would be allowable if the award were not
suspended or expired normally at the end of the funding
period in which the termination takes effect.
(d) Relationship to debarment and suspension. The enforcement
remedies identified in this section, including suspension
and termination, do not preclude a recipient from being
subject to debarment and suspension under E.O.s 12549 and
12689 and the Federal awarding agency implementing
regulations (see Section .13) .
SUBPART D - After-the-Award Requirements
se. Sections .71 through .73 conta'
closeout procedure er ro sequent
disallows en s.
46
4 t SI
.71 Closeout procedures.
(a) Recipients shall submit, within 90 calendar days after -
. .te of completion of the award, all financial, perform• ce,
ana• other reports as required by the terms and conditi •ns of
the -ward. The Federal awarding agency may approve
exten ions when requested by the recipient.
(b) Unless t - Federal awarding agency authorizes a• extension,
a recipien shall liquidate all obligations i urred under
the award n• later than 90 calendar days after the funding
period or the date of completion as specif ' -d in the terms
and conditions .f the award or in agency 'mplementing
instructions.
(c) The Federal awardin• agency shall m- e prompt payments to a
recipient for allowab e reimbursab e costs under the award
being closed out.
(d) The recipient shall promp y .-fund any balances of
unobligated cash that the F=•eral awarding agency has
advanced or paid and that ' s -ot authorized to be retained
by the recipient for use n o -r projects. OMB Circular A-
129 governs unreturned -mounts .at become delinquent debts.
(e) When authorized by e terms and co •itions of the award,
the Federal awardi g agency shall m- - a settlement for any
upward or downwa•. adjustments to the -deral share of costs
after closeout . eports are received.
(f) The recipie shall account for any real an• personal
property - quired with Federal funds or recei ed from the
Federal 'overnment in accordance with Sections .31
throug .37.
(g) In • e event a final audit has not been performed p•ior to
t - closeout of an award, the Federal awarding agenc shall
•etain the right to recover an appropriate amount afte
fully considering the recommendations on disallowed cos
resulting from the final audit.
.72 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the
following.
(1) The right of the Federal awarding agency to disallow
costs and recover funds on the basis of a later audit
or other review.
47
iN '
(2) The obligation of the recipient to return any funds due
as a result of later refunds, corrections, or other
transactions.
(3) Audit requirements in Section .26. •
(4) Property management requirements in Sections .31
through .37.
(5) Records retention as required in Section .53 .
(b) After closeout of an award, a relationship created under an
award may be modified or ended in whole or in part with the
consent of the Federal awarding agency and the recipient,
provided the responsibilities of the recipient referred to
in paragraph .73 (a) , including those for property
management as applicable, are considered and provisions made
for continuing responsibilities of the recipient, as
appropriate.
.73 Collection of amounts due.
(a) Any funds paid to a recipient in excess of the amount to
which the recipient is finally determined to be entitled
under the terms and conditions of the award constitute a
debt to the Federal Government. If not paid within a
reasonable period after the demand for payment, the Federal
awarding agency may reduce the debt by (1) , (2) or (3) .
(I) Making an administrative offset against other requests
for reimbursements.
(2) Withholding advance payments otherwise due to the
recipient.
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, the Federal awarding
agency shall charge interest on an overdue debt in
accordance with 4 CFR Chapter II, "Federal Claims Collection
Standards. "
48
Appendix A •
Contract Provisions
All contracts, awarded by a recipient including small
purchases, shall contain the following provisions as applicable:
1. Equal Employment Opportunity - All contracts shall contain a
provision requiring compliance with E.O. 11246, "Equal Employment
Opportunity, " as amended by E.O. 11375, "Amending Executive Order
11246 Relating to Equal Employment Opportunity, " and as
supplemented by regulations at 41 CFR part 60, "Office of Federal
Contract Compliance Programs, Equal Employment Opportunity,
Department of Labor. "
2 . Copeland "Anti-Kickback" Act (18 U. S.C. 874 and 40 U. S.C.
276c) - All contracts and subgrants in excess of $2000 for
construction or repair awarded by recipients and subrecipients
shall include a provision for compliance with the Copeland "Anti-
Kickback" Act (18 U.S.C. 874) , as supplemented by Department of
Labor regulations (29 CFR part 3, "Contractors and Subcontractors
on Public Building or Public Work Financed in Whole or in Part by
Loans or Grants from the United States") . The Act provides that
each contractor or subrecipient shall be prohibited from
inducing, by any means, any person employed in the construction,
completion, or repair of public work, to give up any part of the
compensation to which he is otherwise entitled. The recipient
shall report all suspected or reported violations to the Federal
awarding agency.
3 . Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7) - When
required by Federal program legislation, all construction
contracts awarded by the recipients and subrecipients of more
than $2000 shall include a provision for compliance with the
Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by
Department of Labor regulations (29 CFR part 5, "Labor Standards
Provisions Applicable to Contracts Governing Federally Financed
and Assisted Construction") . Under this Act, contractors shall
be required to pay wages to laborers and mechanics at a rate not
less than the minimum wages specified in a wage determination
made by the Secretary of Labor. In addition, contractors shall
be required to pay wages not less than once a week. The
recipient shall place a copy of the current prevailing wage
determination issued by the Department of Labor in each
solicitation and the award of a contract shall be conditioned
upon the acceptance• of the wage determination. The recipient
shall report all suspected or reported violations to the Federal
awarding agency.
4 . Contract Work Hours and Safety Standards Act (40 U. S.C. 327-
333) - Where applicable, all contracts awarded by recipients in
excess of $2000 for construction contracts and in excess of $2500
49
for other contracts that involve the employment of mechanics or
laborers shall include a provision for compliance with Sections •
102 and 107 of the Contract Work Hours and Safety Standards Act
(40 U.S.C. 327-333) , as supplemented by Department of Labor
regulations (29 CFR part 5) . Under Section 102 of the Act, each
contractor shall be required to compute the wages of every
mechanic and laborer on the basis of a standard work week of 40
hours. Work in excess of the standard work week is permissible
provided that the worker is compensated at a rate of not less
than 1 1/2 times the basic rate of pay for all hours worked in
excess of 40 hours in the work week. Section 107 of the Act is
applicable to construction work and provides that no laborer or
mechanic shall be required to work in surroundings or under
working conditions which are unsanitary, hazardous or dangerous.
These requirements do not apply to the purchases of supplies or
materials or articles ordinarily available on the open market, or
contracts for transportation or transmission of intelligence.
5. Rights to Inventions Made Under a Contract or Agreement -
Contracts or agreements for the performance of experimental,
developmental, or research work shall provide for the rights of
the Federal Government and the recipient in any resulting
invention in accordance with 37 CFR part 401, "Rights to
Inventions Made by Nonprofit Organizations and Small Business
Firms Under Government Grants, Contracts and Cooperative
Agreements, " and any implementing regulations issued by the
awarding agency.
6. Clean Air Act (42 U. S.C. 7401 et seg. ) and the Federal Water
Pollution Control Act (33 U. S.C. 1251 et seg. ) , as amended -
Contracts and subgrants of amounts in excess of $100, 000 shall
contain a provision that requires the recipient to agree to
comply with all applicable standards, orders or regulations
issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq. ) and
the Federal Water Pollution Control Act as amended (33 U.S.C.
1251 et seq. ) . Violations shall be reported to the Federal
awarding agency and the Regional Office of the Environmental
Protection Agency (EPA) .
7 . Byrd Anti-Lobbvinq Amendment 131 U. S.C. 1352) - Contractors
who apply or bid for an award of $100, 000 or more shall file the
required certification. : Each tier certifies to the tier above
that it will not and has not used Federal appropriated funds to
pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a member of
Congress, officer or employee of Congress, or an employee of a
member of Congress in connection with obtaining any Federal
contract, grant or any other award covered by 31 U.S.C. 1352.
Each tier shall also disclose any lobbying with non-Federal funds
that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the
recipient.
50
8. Debarment and Suspension (E.O.s 12549 and 12689) — No
contract shall be made to, parties listed on the General Services
Administration's List of Parties Excluded from Federal
Procurement or Nonprocurement Programs in accordance with E.O.s
12549 and 12689, "Debarment and Suspension. " This list contains
the names of parties debarred, suspended, or otherwise excluded
by agencies, and contractors declared ineligible under statutory
or regulatory authority other than E.O. 12549. Contractors with
awards that exceed the small purchase threshold shall provide the
required certification regarding its exclusion status and that of
its principal employees.
•
51
c 25A CITY OF OMAHA
LEGISLATIVE CHAMBER ,
Omaha,Nebr August 25 19 98
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; and,
WHEREAS, the City of Omaha 1996 Consolidated Submission for Community
Planning and Development Programs(Consolidated Plan)was approved by City Council Resolution
No. 3038 on November 21, 1995; and,
WHEREAS, the Consolidated Plan identified the provision of transitional housing
opportunities for low income households as a priority need in the City of Omaha; and,
WHEREAS, the City Council approved the City of Omaha 1996 HOME Program
Description and Funding Allocations contained in the Consolidated Plan;and,
WHEREAS, the Stephen Center, is currently engaged in the operation and
administration of an emergency shelter for the homeless located at 2723 "Q"Street,Omaha,Nebraska
68107; and,
WHEREAS, the Stephen Center currently operates a transitional housing program;
and,
WHEREAS,the Stephen Center proposes the construction of an eight unit transitional
residential facility at 27th & "Q" Streets and the subsequent occupancy of each unit by single
homeless men; and,
WHEREAS, it is in the best interests of the City of Omaha and the residents thereof
that the City enter into an Agreement with the Stephen Center, Inc., to provide HOME funding in
the amount of$420,000.00 for the purpose of constructing the eight unit transitional housing facility.
By
Councilmember .
Adopted .
City Clerk
Approved
Mayor
* C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr August 25 19 98
PAGE-2- •
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
THAT,the attached Agreement,as recommended by the Mayor,between the City of
Omaha and the Stephen Center,Inc.,a Nebraska Non-Profit Corporation, 2723 "Q" Street, Omaha,
Nebraska 68107, in an amount of $420,000.00 for the purpose of constructing an eight unit
transitional housing facility at 27th and"Q" Streets and the subsequent occupancy of each unit by
single homeless men,is hereby approved. Funds in the amount of$420,000.00 shall be paid from the
HOME Program Fund No. 186, Organization 5012.
APPROVED AS TO FORM:
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ASSISTANT CITY ATTORNEY DATE
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By
ounci ember
Adopted AUG 1998 --�
ity Clerk
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