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HomeMy WebLinkAbout2012-44 CDBG Income Reuse Plan � RESOLUTION NO. 2012-44 � A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCOME REUSE PLAN. WHEREAS, the City of Ukiah has received Community Development Biock Grant funding; and WHEREAS,the Community Development Block Grant Program Income Reuse Plan is a requirement of said funding; and WHEREAS, the notice for a public hearing was duly published on November 21, 2012 in the Ukiah Daily Journal; and WHEREAS, a Public Hearing was held pursuant to federal Citizen Participation requirements before the City Council on December 5, 2012,to receive public comment and consider the City of Ukiah's Community Development Block Grant Program Income Reuse Plan; NOW, THEREFORE, BE IT RESOLVED as follows: ` � 1. The City of Ukiah has reviewed and herby approves the Community Development Block Grant Program Income Reuse Plan attached hereto as Exhibit A. 2. The City Manager or designee is hereby authorized and directed to act on the City's behalf in all matters pertaining to the CDBG Program Income Reuse Plan. 3. The Assistant City Manager is hereby authorized to sign all necessary reports as required by ihis pian to be submitied to the�iate oi Caiifornia, Gepartment of housing and Community Development. THE FOREGOING RESOLUTION WAS ADOPTED ai a regular meeting of the Ukiah City Council held on the 5th day of December 2012, by the foilowing roll call vote. AYES: Councilmember Thomas, Rodin, Baldwin, Crane, and Mayor Landis NOES: None ABSENT: None ABSTAIN: None �"J�•�!�(,� ' %�'G� � f.vt�G /G.� Mary Arirye Landis, ayor AT�EST: V _._I Linda dun, ity C rk Ex�tiBi�r a COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM -� (CDBG) J PROGRAM INCOME (PI) REUSE PLAN WITH JURISDICTIONAL CERTIFICATIONS This Agreement provides official notifica6on of the Jurisdiction's P/ Reuse P/an's (hereinafter, F! Reuse Plan) approva/ under the State's administrafion of the Federal Communify Development Block Crant Program (hereinafrer, °CDBG°or "the ProgramA) for Non-entit/ement jurisdreSans pursuant td the provisions of 42 U.S. Code (U.S.C.) 5301 et seq., 24 Code of Federal Regu/ations (CFR) Pait 570, Subpart l, and 25 Califomia Code of Regulations (CCR), Sections 7050 et seq. The Program is listed in the Cata/og of Federa/ Domestic Assistance as 14.228 - CDBG Community Deve/opment B/ock Grant Program. By comp/efing this P/Reuse Plan and signing the end of this document, the Authorized Representative certifies the Jurisdiction has read, understands and wil! adhere to the Program /ncome (Pl) Reuse Ptan detailed in the first section of this document the PI , definitions and ru/es in the second section of this document, and Department of Housing and Community Deve/opment(fhe Department herein� terms and condifions in the third section of this documenf. SECTION ONE: PROGRAM INCOME (PI) REUSE PLAN " �__J JUItISDlCTION• City of Ukiah GOVERNING BODY ADOPTED ON: This PI Reuse plan estabiishes policies and procedures for the administration and utilization of PI received as a direct result of eligible activities funded under the State of C�iifornia CDBG Program (Department). Aii revenue received from C6BG funded activities are required to be used per this adopted plan. DISYRIBUTION OF PROGRAM IPiCOME tntroduction: There are six (6) methods of distribution for PI listed below. The four(4) non-Revo/ving Loan Account obligation methods are optiona/ and can be used on a case-by-case basis as needed for activi(y funding by the Jurisdiction. The use of one or more Revolving Loan Accounf(RLA) is mandatory under this adopted P!Reuse Plan. The City of Ukiah certfies that PI will only be distributed, as follows: _ � , of 34 1: Deposit into Revolvina Loan Accounts(RLAs) The following RLAs are hereby established to utilize the � City of Ukiah PI. lf an RLA acfivity is not going to be utilized, zero percent (0%) is to be indicafed in percentage area below. One or more of the RLAs wi(I be utilized annually. The allocation of receipted PI to each RLA is as follows: A. 0 (insert percentage, 0 fo 100 percent (0%-100%)) of PI received will be deposited into the Housing Rehabilitation — Single Family (1� Units) Revolving Loan Account(HR-RLA). B. 100 �nsert peroentage, 0 to 100 percent (0%-100'�)) of PI received will be deposited into the Homeownership Assistance Revolving Loan Account (HA-RLA). C. 0 (insert percentage, 0 to 100 percent (0%-100%)) of PI received will be deposited into the Business Assistance Revolving Loan Account (BA-RLA). D. 0 (inserf percentage, 0 to >00 percent (0%-100%)) of Receipted PI will be deposited into the Miercenterprise Finaneial Assistance Revolving Loan Account(ME-RLA). 2. PI Waiver Activitv The City of Ukiah may utilize the DepartmenYs PI Waiver process ta commit PI to eligible activifies that are not considered RLAs. The City of Ukiah will follow all PI Waiver procedurai requirements as � � stated in the Progrem Income chapter of the Grant Management Manual (GMM). The City of Ukiah will obtain prior Department approval before expending any PI funds on a Waiver project. A PI Waiver project can only be approved if the total project/program cost for the proposed activ'ity is on hand in the Jurisdiction's PI account. The City of Ukiah understands that PI Waiver activfies are limited to two "active" projects and/or programs and will remain active until close out has been completed and approved by the Department. _ 3. Committal to Fundina Aoolication The City of Ukiah may choose to commit non-obligated RLA funds to one or more activities in an annual CDBG application for funding. Committed PI can only be expended when application and activities with committed PI are awarded, contracted, and have all special conditions cleared. PI committed to an application for grant funding must have the PI on hand at the time of application submittal and may not remove or add to the PI amount committed without prior Department approval. Zof� 1 4. Auqmentinq Fundina to An Awarded Activitv/Proiect � City of Ukiah may request that the Departrnent allow PI to be added to a funded activity/project due to a funding short fall. To obtain � Department approval, the Citv of Ukiah will submit justfication to their CDBG Representative outlining in detail the need/reason for the augmentation offunding. if the Depar6nent approves the augmentation (requires a Department contract amendment) the _ City of Ukiah would need to complete a Citizen Participation process before the Department would begin a contract amendment process. This option only applies to awarded activities/projects and tfie Department will not approve adding a new activity to an awarded contract. 5. Fund Pros�rem Income General Administration(PI GAl Activities The City of Ukiah may set aside up to seventeen percent (17%) of PI received from activities funded with CDBG funds for payment of eligible General Administration costs. The Cihr of Ukiah may choose to move the PI GA to eligible CDBG activfies, as noted above, but once the funds are removed from the PI GA account they cannot be put back at a later date. 6. Return to the Deoartment The Citv of Ukiah has the option to return Pl back to the `-� Department. ADMINISTRATIVE PROCESS FOR DISTRIBUTION OF PROGRAM INCOME lntroduction: CDBG is a federa! funding source and requires a Citizen Participation process as part of utilizing any of the six(6)methods of disfribution for PI listed above. Be/ow is a genera/descrip6on of how to conduct proper CRizen Participation process for each of the six (6) disfibution methods. See the DepartmenPs cunent Grant Management Manual (GMM) Chapter on CiSzen Participation for specific information and sample documents. Cily of Ukiah cert"fiies that: 1. The PI Reuse Plan will be formally adopted via pubiic hearing and resolution of City of Ukiah 's Governing Body, executed by Authorized Representative and fully executed by the Department. After the PI Reuse Plan is executed, the Jurisdiction reserves the right to set aside up to seventeen percent (17°/a) of PI received for payment of eligible GA costs. RLA activities which have PI funds being deposited into them may be activated with written Departmental approval. ` � 3of34 The PI Reuse Plan may be amended by the City of Ukiah 'S Governing Body to change the distribution percentages in a RLA via public hearing and resolution, and receipt of the DepartmenYs written approval. ? 2. Ali PI Waiver requests will be submitted for the DepartrnenYs written approval. ) After the DepartmenYs review of the activity for Eligibility and National Objective compliance, the PI Waiver will be fortnally adopted via public hearing and resolution of the CiN of Ukiah 's Governing Body, as part of the PI Waiver Special Cond'Rion Clearance process. 3. PI committed to an open CDBG Contract to augment funding for an activity or committed to a pending application for grant funds will be formally adopted via public hearing and approval via resolution for an annual application submittal. Department approval and PI must be on hand. 4. Once a PI Reuse Plan has been executed by the Department, it is then in effect. GA PI funds can then be expended for eligible costs. GA PI funds will not be expended once the Reuse Plan is terminated by either parly or the Reuse Plan has reached the 5 year expiration. 5. PI will be returned to the Department after a public hearing and formal resolution is passed by the City of Ukiah 's Governing Body. 6. Each of the above administrative processes must be in complianCe with the CDBG Citizen Participation process as specified in federal regulations at 24 CFR 570.486, Local Government Requirements. ADMINISTRATION OF ELIGIBLE ACTIVITIES AFTER DISTRIBUTION � 1 Introduction: Adminisfration of all CDBG eligible activities conducEed under the J distribution methods must be conducted in compliance with all current State and federal regulations and poficies. The City of Ukiah will follow the DeparfinenPs guidance for administering RLA acSvities, PI Waiver acfivities, or activities funded with P( committed to an open grant contract per the Depa�tment's current GMM Chapfer regarding P!. If ineligible activities or costs are paid for with CDBG Pl, those funds must be retumed fo the Citv of Ukiah PI account using local jurisdicSon funds. 1. RLA Administretion The City of Ukiah cert�es that the four RLAs under this PI Reuse Plan will be administered under the following criteria: A. RLAs with a balance must be"substantially revolving,"which means on an annual basis at least 60 percent (60%) of the funds in an RLA must be used for loans which witl be repaid to a PI account, based on the distribution noted in this plan. Up to the remaining 40 percent (40%) may be expended on non-revolving activities, which include Activity Delivery(AD), and grants for the same activity as the RLA. 4 of 34 � Note: General Adminisfration costs are not considered part of the jurisdiction's RLA Activities and should not be used in the � consideration of"substantially revolving': lB. A RLA which is the same activity as any funded open grant activity wili he "substantially expended" before grant funds are requested for the grant activ'dy. The Department considers "substantially expended", to mean having no more than $5,000 in a RLA. C. PI funds shall not be transferred between RLAs after execution of this Plan without foilowing the proper CDBG Citizen Participation process, which includes a public hearing resulting in a certified resolution being submitted to the Department for written approval. However, the transfer of PI beiween RLAs each fiscal year, in the aggregate amount of$5,000 or less, is not be subject to the Citizen Participation requirement, as sNated above; but does require prior written Department approval. D. Ali PI funded activfies shail be provided to project activities located wRhin the boundaries of the Citv of Ukiah If an additional jurisdiction(s) receives benefR, a Joint Power's Agreement (JPA) between Jurisdictions(s) is required. The City of Ukiah must receive written approval from the Department prior to impiementation and prior to parties' execution of the JPA behveen the parties. ` � E. The City of Ukiah will submit program guidelines specific to each RLA activity for written Department approval. Once approval is issued to the Jurisdiction, the RLA will then be deemed active. F. This PI Reuse Plan will not be executed by the Department until all RLAs have clear distribution percentages listed above, and have Department approved program guidelines. All CDBG PI Reuse Plans are limited to a five (5) year term from the date of execution. PI funds within an RLA cannot be expended until this PI Reuse Plan is executed. G. Reporting on RLAs and other PI Activities wiil be required per the DepartmenYs current policies, including financial accounting of PI received and expended for RLAs and other PI Activities. Additionally, PI performance (National Objective data and beneficiary demographics) reported as HUD required accomplishment information will be required to be submitFed in a timely manner or the Jurisdiction understands that it will be required to repay a PI account for ineligible cost or activities. `� 5of34 H. AD costs are onlv eliaible if one or more projects are funded and accompiishments (such as beneficiaries), for those activity(ies), on an annual basis, are reported on. � 2. Eliaible RLA Activities The four (4) RLA(s) listed below each have a single eligible CDBG program activity. The Citv of Ukiah certifies that all CDBG rules pertaining to each eligible activ'ity will be followed. A. Housina Rehabilitation Revolvina Loan Account The CDBG eligible activity under this RLA is a single-family housing rehabilitation program. The program will be used for the purpose of making loans to rehabilitate residential units (7�l units), occupied by income eligible households. The CDBG National Objective of benefd to Low/Moderate-income (Low/Mod) households will be met by limiting program participants to households that have an annual income at or below eighty percent (80%) of HUD median income limits for the City of Ukiah 's county. Households will be income qual�ed based on the income calculation method spec�ed in 24 CFR Part 5, and in accord with the DepartmenYs Income Manual. Rehabilitation of"projects" (projects with five (5) or more units on one site) is not allowed under this RLA. Projects with five or more units must be funded via the annual grant process or through the PI Waiver process. Jurisdictions wishing to include tenant occupied projects for the Housing ;-1 Rehabiiitation program must submit separate (distinguishable from the I Owner Occupied Housing Rehabilitation guidelines) guidelines outlining � the unique tenant occupied rules and processes. The review and funding of requests for CDBG loans or grant assistance under this RLA shall be conducted under the Housing Rehabilitation Program Guidelines that have been adopted by Citv of Ukiah and approved in writing by the Department. No more than 19 percent(19%) of program funds expended from this RLA shall be used for AD costs. B. Homeownershio Assistance(Homebuverl Revolvina Loan Account The CDBG eligible activity under this RLA is acquisition of single family housing. The program will be used for the purpose of making loans to assist income eligible homebuyers to purchase a residential property (1-4 units). The CDBG National Objective of benefd to LowlMod-income households will be met by limiting program participants to households that have an annual income at or below eighty percent(80%) of HUD median income limits. Households will be income qualified based on income calculation method specified in 24 CFR Part 5 and in accord with the DepartmenYs Income Manual. sof� : 1 The review and funding of requests for CDBG loans or grant assistance under this RLA shall be conducted under the Homeownership Assistance 1 Program Guidelines that have been adopted by the Citv of Ukiah 1 and approved in writing by the Department. No more than 8 percent (8%) of the funds expended from this RLA shall be used for AD costs. C. Business Assistance Revolvina Loan Account The CDBG eligible activRy of Special Economic Development will be conducted under this RLA. Specifically, the RLA will fund a business assistance program that provides direct financial assistance for eligible businesses that propose projects which create or retain permanent jobs. The CDBG National Objective being met by the Special Economic Development activity will typically be benefd to Low/Mod-income persons. As such, at least fifty one percent (51°�) of the fuli time job positions created or retained will be made available to persons whose households , have an annual income at or below 80 percent (80%) or less of the ' City of Ukiah 's county median income. Income eligibility is based on the income calculation method specified in 24 CFR Part 5, and in accord with the DepartmenYs Income Manual. I Business assistance projects under this RLA progrem may also meet the National ObjecHve of elimination of slums and blight, but this must be approved by the Department in writing as part of the initial business's loan application. � Local review and undervvriting of business assistance projects requesting a CDBG loan under this RLA shall be conducted under the Business Assistance Program Guidelines that have been adopted by City of Ukiah and approved in writing by the Department. Each individual project funding request made under this RLA program must be submitted for Department review and written approval, prior to closing the loan. ' No more than 15 percent (15%) of the total funds expended for business assistance activities shall be used for AD costs. D. Microenterorise Assistance Revolvinq Loan Account The CDBG eligible activity of direct financial assistant to eligible microenterprise businesses will be conducted under this RLA. Spec�caliy, the RLA will fund a microenterprise direct financial assistance program that provides financiai assistance to staR up or existing microenterprise businesses. Eligible 6usinesses must meet the HUD definition of microenterprise. A microenterprise is defined as a business that has five (5) or fewer employees including the owner(s). The only CDBG National Objective which will be used for this activity is benefd to Low/Mod-income households. As such, micro business owners assisted `--� 7 of 34 under this program must be documented as having an annual household income at or below 80 percent (80%) of the Jurisdiction's county median income, based on income calculation method specified in 24 CFR Part 5, -� and in accord with the DeparknenYs Income Manual. f j Local review and undenvriting of microenterprise business assistance projects requesting a CDBG loan or grant under this RLA shail be conducted under the Microenterprise Financial Assistance Program Guidelines that have been adopted by the Citv of Ukiah and approved in writing by the Departrnent. Each individual project funding request made under this RLA program must be submitted for Department review and written approval, prior to closing the loan. No more than 15 percent (15�0) of the total funds expended for business assistance activities shall be used for AD costs. 3. Administration of Non-RLA Proaram Income Expenditures A. Proarem Income Waiver Elis�ible Activities City of Ukiah certifies that the PI Waiver Submission Process below will be followed if a PI Waiver is to be requested: ' 1) This process will involve discussion at a properiy noticed public hearing, held in front of the City of Ukiah 's Governing Body, and submission of a Certified Resolution as part of ;-� a PI Waiver Request to the Departrnent, in accordance with current Department policy, and any subsequent policy, regulatian, or statutory-guidance, in writing,from The Department. 2) Final commRment and expenditure of PI Waiver funds will not commence until clearance of all required Special Conditions have been met,_and written Departrnent approval has been issued to the City of Ukiah 3) Reporting on PI Waiver activRies will take place per current Departmental policies and include financial accounting of PI received and expended for PI Waivers and PI Waiver activity performance. 4) PI Waiver aetivities must be fuliy funded with progrem income already on hand. Therefore, future PI may not be pledged to the PI Waiver activity. 5) Only two (2) PI Waiver agreements may be open and active at any one time. 8 of 34 � �J B. Procram Income Committed in an Annual Grant Aoolica6on and Included in an Ooen Grant Aareement � City of Ukiah �rtifies that the PI Committed to a funded Annual CDBG Application wili be: 1) Funded with PI currently on hand; Future P/may not be pledged to an open granf activity. 2) Expended first and prior to requesting grant funds; 3) Administered in accordance with terms and condfions of the grant contract with the Departrnent; and, 4) Reported using the DepartmenYs current PI and fiscal reporting forms. All PI activity perfortnance data will be reported using grant and fiscal reports. C. Proarem Income Added to an Existina Ooen Grant City of Ukiah cert�es that the PI committed to an ebsting CDBG Grent will be: 1) Approved by the Department, with a Grant Amendment fully executed before PI can be committed to a grant activity. 2) Funded with PI currently on hand. � Future P/may nof be pledged to an open grent activity. 3) Expended first and prior to requesting grant funds. 4) Administered in accordance with terms and conditions of the grant contract with the Department 5) Reported using the DepartrnenYs cutrent PI and fiscal reporting forms. All PI activity performance data will be reported using grant and tiscal reports. 4. Proaram Income General Administration (PI GA) Cost Limitation and Activities City of Ukiah certifies that no more than 17 percent(17%) of the total amount of PI received annually will be expended for PI GA casts. These funds wiil accumulate annually and be carried from one fiscal year to the next if unexpended. if more funrls are expended than what is available in PI GA, the Jurisdiction will be required to retum the over-expended GA amount back into their PI Account. Additionally, any ineligible PI GA costs wil!also be required to be retumed to their P/Account � 9 of 34 GA eligible costs for PI are the same as open grant agreements with the Department. See the current CDBG Granf Management Manual (GMM)for fist of eligible activities and allowable costs. —� PI GA activity costs will be reflected on fiscal reports submitted to the Department as per current reporting forms and policies. A. Plannina Activities The City of Ukiah reserves the option of utilizing PI, within the 17 percent(17%) PI GA annual cap to fund planning studies for CDBG eligible activities. All proposed planning activities must receive written Departrnent approval prior to expending PI on the activity. Eligibie planning activities funded with PI are the same as open grant agreements with the Department. See current NOFA for a list of eligible planning studies. All planning activities must have a final product (report or study) resulting from the expenditure of PI. Upon completion of the planning activity, the study must be formally accepted by the Jurisdiction and submitted to the Department for review. The planning activity costs will be reflected on fiscal reports submitted to the Department. �-1 B. Loan Portfolio and Asset Manaqement Policies and Costs , The City of Ukiah certifies that it has asset management policies and loan portfolio servicing policies that are in compliance with HUD standards per 24 CFR Part 570. The use of CDBG funds creates public financial assets. The pubiic financial assets created can be in the form of loans or other repayment instruments which resu�t in PI. Financial assets may also be in the form of real property or chattei (equipment and fixtures). All assets created from the use af CDBG funds must be administered in compliance with OMB Circulars A-87, A-122 A-133, 24 CFR Part 85. Loan payment tracking and collection systems must be put in place for collection purposes of all loans funded with CDBG. In addition, loan servicing policies and procedures must be in place to service the loan assets, ensuring repayment. Costs of managing the portfolio of CDBG funded loans may be charged to PI under GA within the aliowabie limits set by the Departrnent. 10 of 34 � i SECTION TWO: JURISDICTION ASSERTIONS AND CERTIFICATIONS l 1. Reauirements of Procram Income The PI Reuse Plan is intended to satisfy the requireme�ts specified in federal statute and regulation at Section 104Q) of the Housing and Community Development Act ("the AcY'), as amended in 1992 and 24 CFR 570.489(e) and (fl. These statutory and regulatory sections permit a unit of local government to retain PI for CDBG-eligibie community development activities. Under federal guidelines adopted by the State of California's CDBG Program, local govemments are pertnitted to retain PI as long as the lopl govemment has received advance approval from the State of a local plan that will govem the expenditu2 of the PI. This plan has been developed to meet that requirement. City of Ukiah cert�es that their PI will be used to fund eligibie CDBG activities that meet a National Objective and any public benefit requirements. Eligible activities, National Objective and public benefit requirements are specified in Federal Statute at Sections 104(b), 105(a) of The Housing and Community Development Act of 1974, and in Federal Regulations at 24 CFR 570.482 and 24 CFR 570.483. The Jurisdiction understands, if it is determined that an activity/project funded with PI that does not meet a Nationai Objective and/or meet the public benefit requirement, the Jurisdiction will be required to use its own local funds to repay the PI Account. ` � 2. Definition of Proarem Income "Program Income" means gross income eamed by the Jurisdiction from grant- funded activities and is subject to CDBG regulatory requirements pursuant to 24 CFR, Part 570.489(e) - Program Administrative Requirements as amended in the CDBG Final Rule, 24 CFR, Part 570.504- Program Income, 24 CFR Part 85 —Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Govemments, and OMB Circulars A-87 and A-122 as applicable. These regulations include the requirement that the Jurisdiction record the receipt and expenditure of PI as part of the financial transactions of the grant activity(ies). For activities generating PI that are only partially funded with CDBG funds, such income is prorated to reflect the actual percentage of CDBG participation. Examoles of PI include but are not limited to: payments of principal and interest on housing rehabilitation or business loans made using CDBG funds; interest eamed on PI pending its disposition; interest eamed on funds that have been placed in a revolving loan account; net proceeds from the disposition by sale or long-term lease of real property purchased or improved with CDBG funds; and, income (net of costs that are incidental to the generation of the income)from the use or rental of real property that has been acquired, constructed or improved with CDBG funds and that is owned (in whole or in part) by the paficipating jurisdiction or sub-recipient. � 11 of 34 3. Federel Nature of Proaram income City of Ukiah certifies that per 24 CFR 570.489(e)(2)(i), as � amended in the CDBG Final Rule May 23, 2012, all PI received through a RLA, I wili be counted as PI regardless of the amount, and all PI generated through an � open grant that is$35,000 or less may either be: A. Counted and reported as PI, allowing the Jurisdiction to include that amount in its PI GA(17%)calculation; or, B. Not counted as PI and reported as such, which "de-federalizes" the funds, and allows them to be deposited into the Jurisdiction's General Fund. Supporting accounting records and documentation must be in the Jurisdiction's file to substantiate the calculations reported. If PI is generated from a loan that is made partialiy from a RLA and partially from another source, then the PI accounting and reporting must reflect the correct amounts and proportions of PI from the RLA (counted and reported as PI Income) versus the amount generated from the other source, which may be accounted for and reported using either of the methods above. 4. Definition of Excessive Proaram Income City of Ukiah cert�es that if there is excessive PI ($500,000 or more), which includes GA, at the end of the fiscal year they will be required to submit a plan (included in the Reporting form) for expending the funds to the Department for review and approval. The City of Ukiah understands that ff no plan is submitted, or the plan is not approved by the ` l Department, it risks having to return the PI to the Department. The I City of Ukiah agrees to use the Semi Annual PI Report forms to 1 describe the reason(s) for the excessive amount and the method(s)/plan(s)/reason(s) the Citv of Ukiah will use to reduce the amount overthe coming year. Should the Jurisdiction choose to 'accumuiate' PI to fund a project that will cost more than $500,000, the Jurisdiction must identify the project in their Semi Annual PI Report form with a detailed narrative about the project and the expected timing for the project to start and complete, with completion including the meeting of a national objective. Approval of a PI balance above $500,000 will be made on a case-by-case basis. 5. Reoortinq of Proarem Income City of Ukiah certifies that CDBG PI wiil be accounted for using the DepartmenYs fiscal year(July 1 to June 30). All receipts and expenditures of PI in accordance with this PI Reuse Plan will be monitored and reported per the DepartmenYs fiscal year cycle. Citv of Ukiah certifies that they wiil report using the DepartmenYs reportsfforrns and will submit them in a timely manner. 12 of 34 1 I � _, 6. Duration of This Proaram Income Reuse Plan � CitY of Ukiah and the Jurisdiction's Goveming Body understand that this document is effective for five (5) years from the execution date by the authorized CDBG representative listed in this Agreement unless othervvise notified by the Departrnent.. The Department has the Authority to void the Aqreement with notice for cause. 7. Status of Proaram Income Unon Leavina Sffite Non-Entitlement CDBG Proaram and Enterina the CDBG Entttlement Proaram City of Ukiah cert�es that the Jurisdiction's Goveming Body may move the PI eamed under the State program to the Entitlement Program if/when the Jurisdiction is authorized and chooses to participate in the CDBG Entitlement Program provided the Jurisdiction's Governing Body certifies that the Citv of Ukiah has: A. Officially elected to participate in the Entitlement Grant Program; B. Agrees to use such PI in accordance with Entitlement Program requirements; and, C. Sets up Integrated Disbursement Information System (IDIS) access and agrees to enter receipt of PI into IDIS. D. The City of Ukiah submits the above to the State and receives the DepartmenYs approval to no longer repoR State CDBG PI to the Department. ` 1 8. Status of Proaram Income Uoon Enterina the State Non-Entitlement CDBG ; Proaram from the Entitlement CDBG Proaram City of Ukiah certifies that the Jurisdiction's Governing Body will inform the Department in writing of the Jurisdiction's decision to either: A. Retain program income generated under Entitlement grants and continue to comply with EntiUement program requirements for program income;or B. Retain the program income and transfer it to the State CDBG program, in which case the ,iurisdicfion wiil certify that ift wilf compiy wiih tne state`s rules for program income and the requirements of 24 CFR 570.489(e) and (�• 9. Amendment of PI Reuse Plan City of Ukiah certifies that it will adopt and submit for Department written approvai a new version of this plan as updates are released by the Department. 13 of 34 , l SECTION THREE: DEPARTMENT TERMS, CONDITIONS AND l AUTHORIZATION � TERMS AND CONDITIONS: City of Ukiah cert�es that all terms and conditions listed below have been read and understood, and will be implemented and followed: • 1. Authoritv 8�Purpose This Agreement provides official not�cation of the Jurisdiction's PI Reuse Plan's (hereinafter, "Pi Reuse Plan") approval under the State's administration of the Federal Community Development Block Grant Program (hereinafter, "CDBG" or °the Program") for Non-entitlement jurisdictions pursuant to the provisions of 42 U.S. Code (U.S.C.) 5301 et seq., 24 Code of Federal Regulations (CFR) Part 570, Subpart I, and 25 California Code of Regulations (CCR), Sections 7050 et seq. The Program is listed in the Catalog of Federal Domestic Assistance as 14.228-CDBG Community Development Block Grant Program. In accepting the PI Reuse Plan Approval, the Jurisdiction agrees to comply with the terms and conditions of this Agreement, all exhibits hereto and the representations contained in the Jurisdiction's PI Reuse Plan. Any changes made to the PI Reuse Plan after this Agreement is accepted must receive prior written approval from the Department of Housing and Community Development (Department). i--� 2. Distribution for Reuse of PI A. The Jurisdiction shall perfortn PI funded activities as described in the Distribution for Reuse in the PI Reuse Plan. All written materials or aiterations submitted as addenda to the original PI Reuse Plan and which are approved in writing by the Departrnent are hereby incorporated as part of the PI Reuse Plan. The Depar!mer.t rsse^�es the righ*.to requin!t:e Jurissliction to mod�fy ar.y or all parts of the PI Reuse Plan in order to compty with CDBG requirements. The Departrnent reserves the right to review and approve all Work to be performed by the Jur�sdiction in relation to this Agreement. Any proposed revision to the Work must be submitted in writing for review and approval by the Department and may require an amendment to this Agreement. Approval shall not be presumed unless such approvai is made in writing by the Department. B. The PI funded activities shall principally benefit Low/Mod-income persons or households (Low/Mod) whose income is no more than 80 percent (80%)of the median area income. ,4 of 34 l J 3. Su�ciencv of Funds and Termination ] The Department may terminate this Agreement at any time for cause by giving at � least 14 days written notice to the Jurisdiction. Termination shail consist of violations of any terms and/or special conditions of this Agreement, upon the request of HUD, or withdrawal of the DepartmenYs expenditure authorily. 4. Meetina National Obiectives All activities pertormed under this Agreement must meet one of the Nationai Objectives determined by the HUD regulations as included in the Application authorized under Title I of the Housing and Community Development Act of 1974, as amended. A. Benefit to HUD defined Low/Mod-income person or household (LMI). The term Low/Mod-income is defined under CDBG as no more than 80 percent (80%) of the median area income, as determined by HUD, per Federal Regulation 24 CFR, Part 570.483(b); and/or; B. Prevention or elimination of slums or blight. In order for an activity to meet the National Objective of elimination of slums and blight, the activity must take place in an area that meets the definition of a blighted area and the project must be shown to eliminate blight or prevent further blight per Federal Regulation 24 CFR, Part 570.483(c). C. For Microenterprise Assistance activities, the Jurisdiction must only meet the benefit to Low/Mod-income person or household (LMI) National ` l Objective. J5. Inscections of Activities A. The Department reserves the right to inspect any activity(ies) pertortned hereunder to verify that the activity(ies) is in accordance with the applicable federal, State and/or local requirements and this Agreement. B. The Jurisdictian shall inspect any activity performed by contractors and subrecipients hereunder to ensure that the acti�rity(ies) is in accordance with the applicable federal, State and/or local requirements and this Agreement. The Jurisdiction agrees to require that all activity(ies) found by such inspections not to conform to the applicable requirements be corrected, and to wRhhold payment to its contractor or subcontractor, respectively, until it is so corrected. 6. Insurance The Jurisdiction shall have and maintain in full force and effect during the term of this Agreement such forms of insurance, at such tevels as may be determined by the Jurisdiction and the Department to be necessary for spec�c components of the activity(ies)described in this Reuse Plan. J15 of 34 7. Contractors and Subrecioients A. The Jurisdiction shall not enter into any agreement, written or oral, with � any contractor or subrecipient without the prior determination that the contractor or subrecipient is eligible to receive CDBG funds and is not listed on the Federel Consolidated List of Debarred, Suspended, and Ineiigible Contractors. t) Contractors are defined as program operators or construction contractors who are procured competRively. 2) Subrecipients are defined as public or private non-profd agencies or organizations and certain (limited) private forvprofit entities who receive CDBG funds from an awarded jurisdiction to undertake eligible activities. B. An agreement between the Jurisdiction and any contractor or subrecipient shall require: 1) Compliance with the applicable State and federal requirements of this A�reement, which pertain to, among other things, labor standards, non-discrimination, Americans with Disabilities Act, Equal Employment Opportunity, and Drug-Free Workplace; and, Compliance with the applicable provisions relating to Labor Standards/Prevailing Wages. In addition to these requirements, ali contractors and subcontractors shall comply with the applicable provisions of the California Labor Code. 2) Maintenance of, at minimum, the State-required Workers' ` � Compensation Insurance for those employees who will perform the ' activity(ies) or any part of it. 3) Maintenance of, if so required by law, unempioyment insurance, disability insurence and liability insurance, which is reasonable to compensate any person, firm, or corporation, who may be injured or damaged by the contractor, or any subcontractor in performing the activity(ies) or any part of it. 4) Compliance with the applicable Equal Opportunity Requirements described in this Agreement. C. Contractors shall: 1) Perform the activity(ies) in accordance with federal, State and local housing and building codes, as are applicable. 2) Provide security to assure completion of the project by furnishing the borrower and construction lenders with Performance and Payment Bonds, or other security approved in advance in writing by the Department. 16 of 34 � D. Subrecipients shall: � 1) Retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a period of frve (5) years from date of termination of this f\qreement, or five (5) years from the conclusion or resolution of any and all audits or litigation relevant to this F\qreement, and any amendments, whichever is later. 2) Permit the State, federal gQVernment, the Bureau of State Audits, the Department and/or their representatives, upon reasonabie noGce, unrestricted access to any or all books, records, accounts, documentation, and all other materials relevant to the agreement for the purpose of monitoring, auditing, or othervvise examining said materials. 8. Obliaations of the Jurisdiction with Resaect to Certain Third Partv Relationshias The Jurisdiction shali remain fully obligated under the provisions of this /\qreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the Activities funded under this agreement with respect to which assistance is being provided under this Agreement to the Jurisdiction. The Jurisdiction shall comply with all lawful requirements of the Department necessary to ensure that the Program, with respect to which assistance is being " 1 provided under this Agreement to the Jurisdiction, is carried out in accordance � with the DepartmenYs Assurence and Certifications, including those with respect � to the assumption of environmental responsibilities of the Department under Section 104(g) of the Housing and Community Development Act of 1974. 9. Periodic Reaortina Reauirements During the tertn of this qgreement, the Jurisdiction must submit the fotlowing reports by the dates identfied, respectively, or as othenxise required at the discretion of the Department. The Jurisdicfion's perfortnance under this Agreement will be based, in part, on whether it has submitted the reports on a timely basis. A. Semi-Annual PI Exnenditure/Pertormance Report: Submit by January 31 and July 31 of each year regardless of whether or not the Jurisdiction has any unspent PI. PI Waivers or open Grants with no accomplishment are not excluded to the reporting requirement. B. Annual Federal Overlav Reoortina: Submit by July 31 starting from the contract effective date to subsequent June 30, and for each State Fiscal Year. Annual Reporting includes but is not limited to: Section 3, and Minority Owned BusinessMJomen Owned Business(MBEMIBE). � 17 of 34 C. Waae Comqliance Reoorts: Semi-annual Wage Compliance Reports are to be submitted by October 7 and April 7 during the entire construction period. The final Wage Compliance Report is to be submitted thirty (30) j days after construction is completed. � D. Any other reports that may be required as a Special Condition of this ,�qreement. 10. Monitorina Reauirements The Department shall perform a program and/or fiscal monitoring of the activity(ies). The Jurisdiction shall be required to resoive any monitoring findings to the DepartmenYs satisfaction by the deadlines set by the Department. If findings are not adequately resolved in a timely manner, the Department may deduct points from the Jurisdiction's perfortnance score on future applications. Additionally, the Department reserve the right to suspend a jurisdiction's authority to expend PI (Waiver, RLA and/or PI attached to an open grant) based on significant compliance issues, reporting concems or serious lack of cooperation in clearing PI monitoring findings. 11. Sipns if the Jurisdiction places signs stating that the Department is providing financing, it shall indicate in a typeface and size commensurate with the DepartmenYs funding portion,of the project that the Department is a source of financing through the CDBG Program. 12. Audit/Retention and Inspection of Records ' J A. The Jurisdiction must have intact, auditable fiscai records at all times. If the Jurisdiction is found to have missing aud'R reports from the SCO during the term of this /�qreement, the Jurisdiction will be required to submit a plan to the State, wRh task deadlines, for submitting the audit to the SCO. if the deadlines are not met, the Jurisdiction will be subject to tertnination of this Agreement and disencumbrance of the funds awarded. The Jurisdiction's audit completion piarv is subject to prior review and approval by the Department. B, The Jurisdiction agrees that the Department or Rs designee will have the right to review, obtain, and copy ali records pertaining to performance of this Agreement. The Jurisdiction agrees to provide the Departrnent or its designee with any relevant information requested and shall permit the Department or its designee access to its premises, upon reasonable notice, during nortnal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other materiai that may be relevant to a matter under investigation for the purpose of determining compliance with California Pubiic Contract Code (PCC) Section 10115 et seq., Govemment Code (GC) Section 8546.7 and 2 CCR 1896.60 et seq. The Jurisdiction further agrees to maintain such records for a period of five (5) years after final 18 of 33 � payment under this Agreement. The Jurisdiction shall comply with the caveats and be aware of the penalties for violations of fraud and for � obstruction of investigation as set forth in PCC 10115.10. C. An expenditure which is not authorized by this Agreement or which cannot be adequately documented shall be disallowed and must be reimbursed to the Department or i4s designee by the Jurisdiction. D. Absent fraud or mistake on the part of the Departrnent, the detertnination by the Department of the allowabiliry of any expenditure shall be final. E. For the purposes of annual audits under OMB Circular A-133 (The United States Office of Management and Budget Circular for Audits of States and Local Governments), Jurisdiction shall use the Federal Catalog Number 14.228 for the State CDBG Program. F. Notwithstanding the foregoing, the Department wiil not reimburse the Jurisdiction for any audit cost incurred after the expenditure deadiine of this Agreement. G. The jurisdiction understands that the expenditure of PI is covered under the OMB A-133 Single Audit Requirements and wiii meet all these requirements and report said PI Expenditure along with grant funds each fiscal year. 13. Conflict of Interest of Members. O�cers. or Emolovees of Contractors. Members of Local Governina Bodv.or other Public Officials ` � Pursuant to 24 CFR 570.611, no member, officer, or employee of the Jurisdiction, or its designees or agents, no member of the Goveming Body of the locality in which the program is situated, and no other public o�cial of such locality or localities who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subwntract or agreement with respect to a CDBG-assisted activity or its proceeds, either for themselves or those with whom they have business or immediate famity ties, during their tenure or for one (1) year thereafter. The Jurisdiction shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this Section. 14. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement or to require at any time perFormance by the Jurisdiction of these provisions shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the �epartment to enforce these provisions. J ,9 of 34 15. Litis�ation A. If any provision of this Agreement, or an underlying obligation, is held l invalid by a court of competent jurisdiction, such invalidity, at the sole � discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shali remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable. B. The Jurisdiction shall notify the Department immediately of any claim or action undertaken by or against it which affects or may affect this ,�qreement or the Department, and shall take such action with respect to the claim or action as is consistent with the tertns of this P�qreement and the interests of the Department. 16. Lead-Based Paint Hazards Activity(ies) performed with assistanc� provided under this Agreement are subject to lead-based paint hazard regulations contained in Title 8 (Industrial Relations) and Title 17 (Public Heaith) of the CCR and 24 CFR, Part 35 (Lead Disclosure). Any grants or loans made by the Jurisdiction with assistance provided under this Agreement shall be made subject to the provisions for the e�imination or mitigation of lead-based paint hazards under these Regulations. The Jurisdiction shall be responsible for the notifications, inspections, and clearance certifications required under these Regulations. 77. Prevailinc Waaes A. Where funds provided through this f�qreement are used for construction ` J work, or in support of construction work, the Jurisdiction shall ensure that the requirements of Cal'rfomia Labor Code (LC), Chapter 1, commencing with Section 1720, Part 7 (pertaining to the payment of prevailing wages and administered by the Califomia Department of Industrial Relations) are met. B. For the purposes of this requirement "construction work" includes, but is not limited to rehabilitation, alteration, demolition, installation or repair done under contract and paid for, in whole or in part, through this f�qreement. All construction work shall be done through the use of a written contract with a properly licensed buitding contractor incorporeting these requirements (the "construction contract"). Where the consVuction contract wiil be between the Jurisdiction and a licensed building contractor, the Jurisdiction shall serve as the"awarding body° as that tertn is defined in the LC. Where the Jurisdiction will provide funds to a third party that will enter into the construction contract with a licensed building contractor, the third party shall serve as the "awarding body." Prior to any disbursement of funds, including but not limited to release of any final retention payment, the Department may require a cert�cation from the awarding body that prevailing wages have been or will be paid. 20 of 34 l 1 78. Com�liance with State and Federal Laws and Reaulations � A. The Jurisdiction agrees to comply with all State laws and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the Jurisdiction, its subcontractors, contractors or subcontractors, and the Reuse activity(ies), and any other State provisions as set forth in this f�qreement. B. The Jurisdiction agrees to compiy with all federal laws and regulations applicable to the CDBG Program and to the activity(ies), and with any other federal provisions as set forth in this Agreement. 19. Anti-Lobbvina Certification The Jurisdiction shall require that the language of this certification be included in all contracts or subcontracts entered into in connection with this activity(ies) and that all subrecipients shail certify and disclose accordingly. This cert�cation is a material representation of fact upon which reliance was placed when this trensaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and no more than $100,000 for such failure. "The undersigned cert�es,to the best of his or her knowledge or belief,that: ` � A. No federal appropriated funds have been paid or will be paid, by or on J behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federel contract, the making of any federal grant, the making of any federel loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or mod�cation of any federai contract, grant, loan, or cooperative agreement; and, B. If any funds other than federai appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contrect, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions." � 21 of 34 20. Bonus or Commission. Prohibition Aqainst Pavments of The assistance provided under this Agreement shall not be used in the payment l of any bonus or commission for the purpose of: � A. Obtaining the DepartmenYs approval of the Application for such assistance; or, B. The DepartmenYs approval of the Applications for additional assistance; or, C. Any other approval or concurrence of the Department required under this Agreement, Title I of the Housing and Community Development Act of 1974, or the State regulations with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs. 21. Citizen Particioation The Jurisdiction is subject to the requirements conceming citizen participation contained in Federal Regulations at 24 CFR, Part 570.486, Local Govemment Requirements, Part 91.105 and 91.115. 22. Clean Air and Water Acts This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 ` � USC 1251et seq., and the regulations of the Environmental Protection �qency with respect thereto, at 40 CFR, Part 15, as amended from time to time. 23. Conflict of Interest of Certain Federal Officials No member of or delegate to the Congress of the United States, and no resident commissioner, shail be admitted to any share or paR of this Agreement or to any benefit to arise from the same. The Jurisdiction shall report all perceived or actual conflicts of interest cases to the State for review before financial benefits are given. 24. Environmental Requirements The Jurisdiction shall comply with the provisions of the National Environmental Policy Act (NEPA) by following the procedures contained in 24 CFR, Part 58. The Jurisdiction shall not undertake any activity that would have an adverse environmental impact or limit the choice of reasonable alternatives under 24 CFR, Part 58.22 until HUD or the Department has issued an environmental clearence. zzof� � 25. EaualOoportunitv � A. The Civil Riahts Housina and Communitv Develooment and Ape Discrimination Acts Assurances � During the perFormance of this agreement, the Jurisdiction assures that no othervvise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on rece, color, national origin, sex, age, handicap, religion, familial status, or religious preference, under any activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, the Age Discrimination Act of 1975, the Fair Housing Amendment Act of 1988, and ali implementing regulations. B. Rehabilitation Act of 1973 and the "504 Coordinator" The Jurisdiction further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR, Part 8, including, but not limited to, for Jurisdiction's with frfteen (15) or more pertnanent full or part time employees, the locai designation of a specific person charged with local enforcement of this Act, as the "504 Coordinator." C. The Trainina. Em�lovment. and Contractina O000rtunities for Business and Lower-Income Persons Assurance of Comoliance 1) The activity(ies) to be performed under this Agreement are subject to the requirements of Section 3 of the HUD Act of 1968, as ` � amended, 12 U.S.C. 1701u. Recipients, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasibie, training and employment opportunities generated from the expenditure of Section 3 covered assistance to Section 3 residents in the order of priority provided in 24 CFR, Part 135.34(a)(2). 2) The parties to this P�qreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of HUD set forth in 24 CFR, Part 135, and all applicable �les and onlers of the Department issued thereunde� prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. 3) The Jurisdiction will include these Section 3 clauses in every contract and subcontract for Work in connection with the activ'rty(ies) and will, at the direction of the Department, take appropriate action pursuant to the contract or subcontract upon a finding that the Jurisdiction or any contractor or subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR, Part 135 and, will not let any contract unless the Jurisdiction or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 1 23 of 34 J 4) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR, Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this l Agreement shall be a condition of the federal financial assistance I provided to the activity(ies), binding upon the Jurisdiction, its � successors, and assigns. Failure to fulfill these requirements shall subject the Jurisdiction, its contractors and subcontractors and its successors, to such sanctions as are spec�ed by 24 CFR, Part 135 and those sanctions specified by this Agreement. D. Assurence of Comoliance with Reauirements Placed on Construction Contracts of 510.000 or More The Jurisdiction hereby agrees to place in every contract and subcontract for constructian exceeding $10,000 the Notice of Requirement for Affirmative Action to ensure Equal Employment Opportunity (Executive Order 11246), the Standard Equal Employment Opportunity, and the Construction Contract Specifications. The Jurisdiction furthermore agrees to insert the appropriate Goals and Timetables issued by the U.S. Department of Labor in such contracts and subcontracts. 26. Flood Disaster Protection A. This Agreement is subject to the requirements of the Flood Disaster Protection Act (FDPA) of 1973 (Public Law 93-234). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under FDPA, Section 3 (a) of said Act, for use in an area identified by the Secretary of HUD as having special i � flood hazards which is located in a community not then in compliance with the requirements for participation in the national flood insurance progrem pursuant to FDPA, Section 102(d) of said Act. B. The use of any assistance provided under this /�qreement for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of FDPA, Section 102(a)of said Act. C. Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement shall contain certain provisions. These provisions will apply if such land is lacated in an area identified by the Secretary of HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C.4001 et seq. D. These provisions shali obligate the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurence as required with respect to financial assistance for acquisition or construction purposes under FDPA, Section 102(s) of the Flood Disaster Protection Act of 1973. Such provisions shall be required 24 of 34 � notwithstanding the fact that the construction oa such land is not itself _ _� funded with assistance provided under this/{qreement. 27. Federai LaborStandards Provisions The Jurisdiction shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of: A. Davis-Bacon Act (40 U.S.C. 3141-31481 requires that workers receive no fess than the prevailing wages being paid for similar wo�k in their localily. Prevailing wages are computed by the Federal Department of Labor and are issued in the form of federal wage decisions far each classfication of work. The law appiies to most construction, alteration, or repair contracts over$2,000. B. "Anti-Kickback Act of 1986" (41 U.S.C. 51-581 prohibits any person from (1) providing, attempting to provide, or offering to provide any kickback; (2) soliciting, accepting, or attempting to accept any kickback; or(3) including directly or indirectly, the amount of any kickback prohibited by clause (1) or (2) in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime conVactor to the United States. C. Contract Work Hours and Safetv Standards Act - CWHSSA (40 U.S.C. 3702) requires that workers receive "overtime" compensation at a rate of one to one-half (1-1/2) times their regular hourly wage after they have worked forty(40) hours in one week. ` � D. Titie 29, Code of Federal Requlations CFR. Subtitle A. Parts I. 3 and 5) � are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended. The Jurisdiction shall maintain documentation that demonstrates compiiance with hour and wage requirements of this part. Such documentation shall be made available to the Department for review upon request. 28. Procurement The Jurisdiction shall comply with the procurement provisions in 24 CFR, Part 85.36: Administrative Requirements for Grants and Cooperative Agreements to State, Locai and Federally Recognized Indian Tribal Govemments. 29. Non-Performance The Departrnent shall review the actual National Objective and/or Public Benefit achievements of the Jurisdiction. In the event that the National Objective and/or Public BenefR requirements are not met, the Department will require the recapture of the entire PI expended on that projecUactivity. Additional remedies may include suspending the Jurisdiction's authority to use PI funds until the Jurisdiction has developed capacity to ensure future PI funds will be used for eligible activities that will meet a National Objective. 25 of 34 �_ 30. Relocation, Dis�lacement. and Acauisition The provisions of the Uniform Relocation Act, as amended, 49 CFR, Part 24, and 1 Section 104(d) of the Housing and Community Development Act of 1974 shall be ! followed where any acquisition of real property is carried out by the Jurisdiction � and assisted in whole or in part by funds allocated by CDBG. 31. Uniform Administretive Reauirements The Jurisdiction shall comply with applicable Unifortn Administrative Requirements as described in 24 CFR, Section 570.502, including cited Sections of 24 CFR, Part 85. 32. Section 3 The Jurisdiction wiil comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing Regulations at 24 CFR, Part 135. 33. Affirmativelv Furtherinq Fair Housing The Jurisdiction will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the Jurisdiction,take appropriate actions to overcome the effects of any impediments ident�ed through that analysis, and maintain records reflecting the analysis and actions in this regard. 34. General Contrect Conditions The following conditions apply to all activities, including set aside activities. The �- Jurisdiction must meet the conditions within ninety (90) days of this Agreement's execution. Failure to meet the following Special Conditions may result in termination of this Agreement. A. Environmental Compliance The Jurisdiction shall have satisfied all National Environmental Policy Act (NEPA) requirements and Califomia Environmental Qualify Act (CEQA) requirements. CEQA shall be approved by the Jurisdiction. The level of compliance varies by activity. NEPA review must be completed by the Jurisdiction for each activity and approved in writing by Department staff prior to incurring costs on the activity(ies). B. Acquisition/Relocation Comoliance The Jurisdiction must document its compliance with the Uniform Relocation Act, Section 104(d) before release of funds by fhe Department. The Jurisdiction must submit a specfic relocation assistance plan for each activity which mav result in temporary or permanent displacement. For projects where there will be temporary or permanent displacement, the Jurisdiction must submit signed General Information Notices (GINs) from 26 of 34 l � J each tenant who was residing in the project at the time of Application submittal. If the Jurisdiction believes that there wili be no displacement as � a result of their activities, they must submit a letter explaining why no dispiacement or relocation will occur, which will be subject to written approval by the Department. C. Site Control The Jurisdiction shall demonstrate site control of�the proposed project property by submitting evidence of one or more of the following to the Department: 1) Fee title; 2) A leasehold interest on the project properly with provisions that enable the lessee to make improvements on and encum6er the property provided that the terms and condi6ons of any proposed lease shall permit compliance with all Program requirements; 3) An option to purohase or lease; 4) A disposition and development agreement with a public agency; 5) A land sale contract, or other enforceable agreement for the acquisition of the property; or, 6) All easements and right-of-ways (required for completion of the ` � CDBG project) must be obtained. D. Fundinq Commitments and Proiect Cost Estimates Ail funding required for project completion must be documented and committed. If all funding is not committed, the Department shall terminate this Agreement. If the Jurisdiction has applied for other funding prior to the execution of this Agreement, the Jurisdiction must notify the Departrnent as soon as that application is approved or denied. If the Jurisdiction must apply for other funding after the execution date of this Aqreement, the Jurisdiction must appy at the earliest possible opportunity offered by the other funding source(s) and notify the Department as soon as that application is approved or denied. A current third-party cost estimate must be provided by the engineer or architect for the project. E. Activitv Administration Documentation There are four methods of administering and/or completing RLA activities: 1) Use of in-house staff only; 2) Subrecipient agreement(s)with qualified non-profit(s); ` j 27 of 34 J 3) Consultantslcontractors/others obtained through federal procurement procedures; and, � 4) Any combination of the above methods. The Jurisdiction must provide the following documentation demonstrating that one or more of these methods were used for the GA of the RLA and for all activities carried out under this Agreement. 1) Use of in-house staff onN: If not previously provided in the Application, submit staff resumes and duty statements that clearly identify that Jurisdiction staff has capacity and experience to complete administretion of the proposed activities in the Application. 2) Subrecioient aqreement(sl with aualified non-orofit(sl: Sub- recipients, and their respective agreements with the Jurisdiction must adhere to all Program requirements. Submit the subrecipient agreement that was executed between the non-profd and the City of Ukiah . (Submitting draft documents for review prior to execution is recommended.) The scope of work in the subrecipient agreement must match the descriptian of activity in this Agreement. Any parts of the activiiy description in this Agreement not covered by the subrecipient agreement must have separate procurement information. If the subrecipient is using CDBG funds to hire other consultants or subrecipients to do part or all of the Work then the procurement documentation or additional subrecipient agreements must be provided to the Department for ; � review and approval. 3) Consultants: Submit procurement documentation that all third-parly consuitants are procured in accordance with Federal Procurement Procedures and the Grant Management Manual, as follows: A copy of the document used to notify prospective consultants, such as a Request for Proposal or similar document. A list of all bid respondents, showing respondents' contact information and the dollar amount of each proposal. A brief description of the process used to select the consultant/ contractodother, including the retionale for the selection. Additional information may be found in the Grant Management Manual, Program Operators. F. Compliance Wfth All Loans and/or Grant Aareements Pursuant to this F�qreement, the Jurisdiction must comply with State and Federal Laws and Regulations that pertain to matters applicable to the Jurisdiction. Prior to disbursement of any funds under this Agreement, the 28 of 34 i 1 J Jurisdiction shali be in compliance with all loan and/or grant agreements to � which it is a party,which are administered by the Department. G. Easements and Riqhts-of-Wav If required for the completion of a CDBG projeCt, the Jurisdiction must obtain all easements and rights-of-ways required for compietion of the CDBG project within iwelve (12) months of execution of this Agreement. Failure to obtain these may result in termination of this Agreement. H. Section 504 Accessibilitv Reauirements 1) Section 504 Regulations apply when CDBG funds are used on a new construction housing or pubiic facility project or when an existing public facility or housing project with frfteen (15) or more units is being purchased and/or `substantially' rehabilitated. Qual�ed CDBG assisted housing projects are required to have a certain percentage of the units designed for and accessible to persons with mobility and sensory impairtnents. 2) For a federaliy assisted new construction housing project, Section 504 requires five percent (5%) of the dwelling units, or at least one unit, whichever is greater, to meet Unifortn Federal Accessibility Standards or a standard that is equivalent or stricter, for persons with mobility disabilities. An additional two percent (2%) of the dwelling units, or at least one unit, whichever is greater, must be accessible for persons with hearing or visuai disabilities. ` � 3) Under Section 504, aiterations are substantial (i.e. substantially � rehabilitated ) if they are undertaken to a housing project that has 15 or more units and the cost of the aRerations is seventy-five percent (75%) or more of the replacement cost of the completed facility; and require that a minimum of five percent (5%) of the dwelling units, or at least one unit, whichever is greater, shall be made accessible to persons with mobil'dy disabilities and an additional two percent (2%) of the dwelling units, or at least one unit, whichever is greater, shall be made accessible to persons with hearing or visual disabilities. 4) The Jurisdiction shall provide documentation satisfactory to the Department verifying that the required housing units or public faciiity described in the project comply with the acc:essibility standards. CDBG funds will not be released until the necessary documentation is provided. All CDBG funded programs must, to the greatest degree possible, be conducted in buildings which meet Section 504 accessibility standards. ' 1 29 of 34 J I. Grantee's Data Universal Numberina Svstem(DUNS) The Jurisdiction shall provide the Department with a DUNS number for -' any contractor or subcontractor prior to release of any funds under this I Agreement. � 35. Communiri Develooment Activitv Conditions A. Homeownershio Assistance If the Work to be performed under this Agreement involves Homeownership Assistance, the following additional special cond'Rions apply: 1) Proaram Guidelines: The Jurisdiction must submit a copy of its Homeownership Assistance Program Guidelines and Rs PI Re-Use Plan to the Department for review and approval within ninety (90) days of the execution date of this Agreement. 2) If the Jurisdiction proposed to assist homebuyers to purchase newly constructed units in its CDBG application under the Homeownership Assistance activity, the following requirements must be met: a) The units must have been available for sale to the general public; b) Development of the new subdivision must not be dependent ` 1 upon the funding of the homebuyer loan; I J c) CDBG funds shall not be used for construction; and, d) Homeownership Assistance loans will not be approved prior to the foundation of the housing being in place. B. Housina Rehabilitation if the Work to be performed under this Agreement invoives Housing Rehabilitation, the following additional special conditions apply: 1) Proaram Guidelines: The Jurisdiction must submit a copy of its Housing Rehabilitation Program Guidelines and its PI Re-Use Plan to the Department for review and approval. 2) Affordable Rent: If the Jurisdiction's Housing Rehabilitation Program provides for rehabilitating rental properties, the Jurisdiction must submit to the Department its provisions for assuring affordable rent for the LMI occupants. Jurisdiction may include this information as part of the Housing Rehabiiitation Program Guidelines. 30 of 34 1 J 36. Economic Development ActivitvSoecific Conditions � A. Restrictions on CDBG-Assisted Public Prooertv CDBG funds can be used by the Jurisdiction to purchase or rehabilitate public properly. The change of use of real property provisions contained in 24 CFR 570.489(i) apply to real property within the unit of general locat govemmenYs control (including activities undertaken by subrecipients), which was acquired or improved in whole or in part using CDBG funds in excess of the threshold for small purchase procurement (currently $100,000). The restrictions shall apply from the date CDBG funds are first spent for the property untii five (5) years after completion of the project. See the Federal Regulations for the full te� of this regulation. The Jurisdiction must provide docume�tation of proper restriction on assisted property. � B. Business Assistance Activitv 1) Jurisdictions implementing Business Assistance (BA) Loans, shall submit program guidelines that ensure compliance with CDBG underwriting requirements as described in 24 CFR 570, Append'a A, "Guidelines and Objectives for Evaluating Project Costs and Financial Requirements" and with public benefit requirements contained in 24 CFR 570.482(�. 2) Jurisdictions implementing a BA loan shall provide a written Employment Agreement required to be executed between the ` l Jurisdiction and the business owner [requirements of the � Empioyment Agreement are described in 24 CFR 570.506 (b), (5), and (6)). The written Employment qgreement must include a commitment by the business that the jobs are to be created or retained by the termination date of this Agreement and that at least fifty-one percent (51%) of all jobs created or retained (on a FTE basis) will be held by LMI persons. The Employment f�qreement shali specify that, prior to receiving assistance, the business shall agree to: a) Provide a listing, by job title, of the permanent jobs projected to be created; b) Identify which jobs, if any, are part-time and the annual hours of work for each position; c) Identify which jobs are projected to be filled by LMI; and, d) Provide periodic reporting (semi-annual) not limited to: listing jobs, by job title, of all the permanent jobs actually filled, and which of those jobs are held by members of the LMI. il 31 of 34 J C. Microentemrise Assistance Activities 1) Jurisdictions implementing a Microenterprise Assistance activity for � technical assistance and/or microenterprise loans, shall submit progrem guidelines that ensure compliance with CDBG requirements. Specificaily, guidelines must ensure that all beneficiaries of the program are eligible micro enterprises, per HUD definitions. A microenterprise must: a) Have all owners of the business documented as meeting HUD famiiy income eligibility standards; and, b) Have documentation that the business's owners and employees are five(5)or fewer in number. 2) When implementing a Microenterprise Program, the program guidelines shall include the proposed benefits, eligible activities and ongoing evaluation of program services. The guidelines will include a Beneficiary Tracking Plan, which defines the goals; identfies the roles and responsibilities of the service providers; idenfifies the market and focuses the outreach; defines the screening and referral process; and, trecks the beneficiaries through the program's level of service. The Beneficiary Tracking Plan shall also describe the roles and responsibilities of the Jurisdiction and/or program operator for meeting the reporting requirements of the State CDBG Program. 3) When implementing a Microenterprise Program that is part of an ` 1 integrally-related component of a larger project where non-LMI � persons will be extended training and supportive services, shall submit guidelines including the methodology describing how CDBG funds wiil only be used towards the assistance of LMI to LMI persons under the Jurisdiction's activity. 4) Jurisdictions impiementing a Microenterprise activity for loans to microenterprises made with Grent funds or PI funds, shall submit guidelines that ensure compliance with CDBG underwriting requirements as described in 24 CFR, Part 570, Appendix A, "Guidelines and Objectives for Evaluating Project Costs and Financial Requirements." 5) If under this Agreement, a Microenterprise Fagade Improvement activity is being implemented, the Jurisdiction shall submit program guidelines that ensure compliance with CDBG National Objective requirements, as described in 24 CFR 570, Appendix A, "Guidelines and Objectives for Evaluating Project Costs and Financial Requirements." 32 of 34 � D. Required Aareements for Assisted Businesses � The Jurisdiction shall execute a written agreement between the Jurisdiction and the business receiving CDBG funds (loans or grants) under this Agreement to ensure compliance with CDBG State and federal regulations. The written agreement shall contain language to ensure each business complies with the terms of this Agreement, Exhibit A, as well as each of the criteria as set forth in 24 CFR 570.506 (b)(4) and (c). 1) Each agreement between the Jurisdiction and the business(es) shall be submitted to the Department for review and written approval, prior to execution by the business and City of Ukiah 2) Each agreement shall require the business to report employee information periodically(semi-annual)to the Jurisdiction. The report shali list each job posRion by job title and number of annual hours worked and LMI status. The report shall list all the permanent jobs actually created or retained, and identify which of those job positions are held by members of the LMI. Additionally, the report shali include the demographics of job holders (ethnicity/race, disability, status, gender, and head of household status). 3) Each agreement shall require the business(es) submit a Data Universal Numbering System (DUNS) number and be verified as not being on the current federal debarred list, prior to receiving any CDBG financial assistance. The agreement shall require proof of ` l proper insurance for secured collaterai and protecting the I Jurisdiction. The agreement shall reference this Agreement � between the Department and the Jurisdiction. The agreement shall contain all other special conditions as direcYed by the Deparhnent or local loan committee. The agreement shall include but is not limited to the following conditions: a) Maintaining a spec�c annual debt service level; and, b) Requiring a quarterly review of the businesses financial statements with the owner and accounting staff. 37. Communitv and Economic Develooment Plannins�Activities A. Non-Imolementation Activ'itv In some cases,the Department may allow a Jurisdiction to first complete a Household Income Survey and/or a Market Study in order to document low-income benefit for the proposed study. In such cases, the Jurisdiction must conduct the survey according to CDBG standards and submit the survey for review and written approval by the Department, prior to initiating any further study activities. All Non-Implementing/Planning Activfies pursuant to tfiis Agreement must be funded with PI General Administration (PI GA). ` � 33 of 34 B. Implementation Activitv implementation Activities are not permitted under this Agreement using PI � GA funds. � Certified Approving Resolution Is Attached f cerYify tira! the foregoing Is true and conec� and will follow all requirements of this agreemen� I understand that my ce�cation also acknowledges that serous compliance issue with the above requirements cou/d result in the Sfate suspending City of Ukiah aufhority to expend P/ or may require Citv of Ukiah to retum unused P/ to the State unti! the Citv of Ukiah elears the serious compliance Issues. Signature of Authorized Representative Date Signed Name and Titie of Authorized Representafive Signature of CDBG Section Chief Date Signed � _� Name of CDBG Section Chief 34 of 34 �