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HomeMy WebLinkAboutCA Dept of Housing & Community Development 2025-04-0846 Crystal Alvarez 05/12/2025 City of Ukiah 21-HOME-16009 Page 1 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 Federal Grant Identification HUD Grant Number: M20-SG060100 CFDA Number: 14.239 Date HUD Grant Agreement signed by HUD: September 8, 2020 AUTHORITY, PURPOSE AND SCOPE OF WORK 1. Authority & Purpose A. This Standard Agreement (hereinafter "Agreement") will provide official notification of the commitment of funds under the State of California's administration of the HOME Investment Partnerships Program (hereinafter "HOME") by the Department of Housing and Community Development (hereinafter "Department") pursuant to the provisions of the Cranston-Gonzalez National Affordable Housing Act (42 USC 12741 et seq.), the HOME Investment Partnerships Program (Title 24 Code of Federal Regulations Part 92), California Health and Safety Code Section 50896, and Title 25, Division 1, Chapter 7, Subchapter 17 of the California Code of Regulations (hereinafter “CCR”), Sections 8200 through 8220 (“State Regulations”), all in effect and as amended from time to time. The HOME Program is listed in the Catalog of Federal Domestic Assistance (CFDA) as 14.239 - HOME Investment Partnerships Program. In accepting this commitment of funds, the Contractor (sometimes referred to herein as the “HOME Recipient”) agrees to comply with the terms of this Agreement, the Notice of Funding Availability (NOFA) published December 1, 2021, and Amended and Restated February 24, 2022, under which the HOME Recipient applied, the representations contained in the HOME Recipient’s application for this allocation (the "Application"), and the requirements of the authorities cited above. B. The purpose of the HOME program is to assist, cities, counties, developers, and nonprofit Community Housing Development Organizations (CHDOs) [pursuant to Title 25 CCR Section 8201] and eligible tribal entities (pursuant to the 2016 HUD Legal Opinion), to create and retain affordable housing. C. The purpose of this HOME program Agreement is to assist cities, counties, and CHDOs (pursuant to Title 25 CCR Section 8201(ii)), and eligible tribal entities (pursuant to the 2016 HUD Legal Opinion) to create and retain affordable housing by specifically providing funding for the following housing programs: (1) First-time Homebuyer Down Payment Assistance and Infill New Construction, (2) Owner-Occupied Rehabilitation, and (3) Tenant-Based Rental Assistance, which City of Ukiah 21-HOME-16009 Page 2 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 must benefit low-income homebuyers, homeowners, and renters, respectively. 2. Definitions Capitalized terms herein shall have the meaning of the definitions set forth in the HOME federal and state Regulations, in addition: A. "Activity Delivery Costs” (hereinafter “ADC”) means a project’s "related soft costs" as this term is defined at Title 24 of the Code of Federal Regulations (hereinafter “24 CFR”) Part 92.206(d). ADCs are included in the "HOME Activity Funds". The HOME Recipient may expend up to the indicated ADC maximum as identified in Exhibit A, Section 5. HOME funds for Activity Delivery Eligible Project Costs and HOME Activity Funds shall be drawn down at the same time. If the activity is not completed, and a Project Completion Report for the full amount drawn down is not filed, all HOME funds, including ADC, must be repaid to the Department as identified in Exhibit D, Section 12c. B. "Administration" refers to eligible administrative and planning costs as provided in 24 CFR Part 92.207. C. “Agreement” refers to this Standard Agreement D. “Department” or “HCD” refers to the California Department of Housing and Community Development. E. “Project Completion Report” refers to the form and process required to report a project “complete”. The Project Completion Report must be submitted to HCD with the final Project Drawdown Request. F. “Project Disbursement” refers to the forms and process required for HCD to request the drawdown of HOME funds from IDIS for a project's previously-reserved HOME funds. G. “Project Set-Up” refers to the forms and process required to reserve HOME funds in the federal Integrated Disbursement and Information System (IDIS) for a specific HOME-assisted project. H. “State Recipient” refers to the unit of local government that made the Application to the Department for the Award for the Program Activity and is identified as “Contractor” on page one of this Agreement (STD. 213). City of Ukiah 21-HOME-16009 Page 3 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 3. Scope of Work HOME Recipient shall perform the Scope of Work (hereinafter “Work”) as described in Exhibit E Provision Ex. A - E.1 and the Application, which was received by the Department’s Division of Federal Financial Assistance electronically, via the eCivis system., and which is incorporated herein by reference. All written materials or alterations submitted as addenda to the original Application, and which are approved in writing by a HOME Program Manager or higher Departmental official, as appropriate, are hereby incorporated as part of the Application. The Department reserves the right to require the HOME Recipient to modify any or all parts of the application to comply with HOME federal and/or state regulations. The Department reserves the right to review and approve all Work to be performed by the HOME Recipient in relation to this Agreement. Any proposed revision to the Work must be submitted in writing for review and approval by the Department. Any approval shall not be presumed unless such approval is made by the Department in writing. The Work in this Agreement is one or more of the HOME program activities as defined in CCR Title 25, Section 8201 and shown in Exhibit E Provision Ex. A - E.1. The Awarded Activity Amount and Total HOME units are listed in Exhibit E Provision Ex. A – E.1. The Scope of work in this Agreement does not include any “First-Time Homebuyer projects” pursuant to CCR Title 25, Section 8201(o). 4. Contract Amount For the purposes of performing the Work, the Department agrees to provide the amount shown in Exhibit E Provision Ex. A – E.2 of this Agreement. In no instance shall the Department be liable for any costs for Work in excess of this amount, nor for any unauthorized or ineligible costs. The HOME Recipient agrees to administer this allocation in accordance with the provisions of 24 Code of Federal Regulations (hereinafter “CFR”) Part 92 and Title 25 of the CCR Section 8200 through Section 8220. For the purposes of performing the Work, the Department agrees to provide the amount shown in Section 3 of the STD 213 of this Agreement. In no instance shall the Department be liable for any costs for Work in excess of this amount, nor for any unauthorized or ineligible costs. The HOME Recipient agrees to administer this allocation in accordance with the provisions of 24 CFR 92 and Section 8200 through, and including, Section 8220 of Title 25 of the California Code of Regulations. City of Ukiah 21-HOME-16009 Page 4 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 5. Activity Delivery Costs HOME Recipients shall report the amount of Activity funds used for project-related soft costs, otherwise known as ADC, on all HOME Project Set-Up and Completion Reports (hereinafter “PCRs"). The HOME Recipient must request ADC in proportion to the amount of Activity funds being drawn down. The maximum amount of ADC that may be drawn for each specific activity is: A. Up to 24% of the HOME loan/grant amount for Owner-Occupied Rehabilitation (OOR). Activity Delivery Costs for rehabilitation projects may exceed the 24% limit if documentation of actual costs is provided to HCD with each PCR. Documentation must be of actual costs; consultant billings, without documentation of underlying actual costs, are not adequate; B. Up to 6.5% of the HOME loan/grant amount for First-Time Homebuyer (FTHB) activities; C. Up to 6.5% of the HOME construction loan amount for First-Time Homebuyer activities involving in-fill new construction; and D. Up to 5% of the total household assistance amount, to reimburse the administrative cost of only unit inspections and household eligibility determinations for Tenant-Based Rental Assistance, in accordance with HOME Regulations at 24 CFR Part 92.209(a). The total amount of ADC drawn down during the entire contract term must be for actual costs incurred according to 2 CFR Part 200 and have documentation in each project file to support ADCs claimed. 6. Term of Agreement and Deadlines A. The term of this Agreement and deadlines are shown in Exhibit E Provision Ex. A – E.3. No payments shall be made for drawdown requests received more than sixty (60) days after the expenditure deadline. Any funds not drawn shall be disencumbered. B. Pursuant to 24 CFR 92.254(a)(3), any homeownership units funded by HOME that do not have a ratified sales contract with an eligible homebuyer for the housing within nine (9) months of the date of completion of construction using HOME funds, shall be rented to an eligible tenant pursuant to the requirements of 24 CFR City of Ukiah 21-HOME-16009 Page 5 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 92.252. C. Contractor must submit, quarterly, and no later than the last calendar day of the month following each calendar quarter, both a Quarterly Performance Report and a Quarterly Program Income Statement Report to the Department on forms provided by the Department. Unless otherwise waived in writing by the Department, such reporting shall begin in the second month following execution of the Agreement and shall continue through the receipt and approval by the Department of the last “Project Completion Report” under this Agreement. Evidence of said approval shall be in writing from the Department. D. Contractor must submit annually, by July 31, a HOME Annual Performance Report on a form provided by the Department, until if and when it is released in writing by the Department. 7. Capacity to Perform Contractor has the capacity, financial resources, staff resources and authority to fulfill the obligations required of it hereunder, and nothing prohibits or restricts the right or ability of Contractor to carry out the terms hereof. 8. Other Funding Sources A. Other Funding Sources - The HOME Recipient shall report on the value of other contributions included as leverage to the project activity with each Project Set-Up and Completion Report. The Project Set-Up and Completion Report is the report which conveys the information needed to establish a project-specific account in the Federal Integrated Disbursement and Information System (hereinafter “IDIS”). It is also the report that is used to convey any changes to the project-specific account or report the final project-specific information in IDIS established by U.S. Department of Housing and Urban Development (hereinafter “HUD”). B. Match - All matching contributions for a specific activity required by 24 CFR Part 92.218-92.222 are waived. However, the HOME Recipient shall report all match- eligible funding in the PCR. C. Subsidy Limits - The amount of HOME funds that the HOME Recipient may contribute to HOME-assisted housing on a per-unit basis may not exceed the HOME Per-Unit Subsidy Limits established by HUD, as referenced in 24 CFR Part 92.250. City of Ukiah 21-HOME-16009 Page 6 of 6 EXHIBIT A HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/24 Prep. Date: 12/24/2024 9. HOME Program Contract Coordinator The HOME Recipient's contact for this Agreement may vary; therefore, you will be contacted directly by your assigned HCD program representative. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be sent by e-mail or First-Class mail as shown below: Email:HOME@hcd.ca.gov Address: Department of Housing and Community Development Division of Federal Financial Assistance – HOME Program P.O. Box 952054 Sacramento, CA 94252-2054 City of Ukiah 21-HOME-16009 Page 1 of 3 EXHIBIT B HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 Federal Grant Identification HUD Grant Number: M20-SG060100 CDFA Number: 14.239 Date HUD Grant Agreement signed by HUD: September 8, 2020 BUDGET DETAIL AND PAYMENT PROVISIONS 1. General Set-Up Requirements The HOME Recipient shall submit the following for the Department’s approval, prior to project set-up in IDIS: A. The “General Set-Up Conditions Checklist” on a form provided by the Department and any required supporting documentation, including a program administration budget, and Affirmative Fair Market Analyses with marketing plan. B. For First-Time Homebuyer (hereinafter “FTHB”) Activities, the Contractor shall submit a revised FTHB Feasibility Worksheet (Exhibit B7 of the HOME NOFA Program Activities application) as part of its General Set-up Conditions to confirm program feasibility. C. Any other documents, certifications, or evidence deemed necessary by the Department prior to Project Set-Up. 2. Administrative Disbursement Requirements Prior to requesting administrative funds, the HOME Recipient shall submit the following: A. Payee Data Record (STD 204 or TIN Form as applicable); B. Completed HUD “Exempt or Categorically Excluded, Not Subject to 58.5” environmental form marked as “Exempt” for HOME General Administration at https://www.hudexchange.info/resource/3141/part-58-environmental-review- exempt-or-censt-format/. 3. Individual Project Set-Up Requirements The HOME Recipient shall submit the following documentation to the Department: A. HCD-required Project Set-Up Report; and City of Ukiah 21-HOME-16009 Page 2 of 3 EXHIBIT B HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 B. Any other documents, certifications, or evidence deemed necessary by the State prior to Project Set-Up. 4. Project Disbursement Requirements The HOME Recipient shall submit the following documentation to the Department prior to the disbursement of funds: A. HCD-required Project Setup Report form; B. HCD-required Project Drawdown Request form; C. STD 204, Payee Data Record form (if necessary); D. Designated Payee letter (if necessary); E. Evidence of sufficient and eligible HOME match, if necessary for funding; F. Any other documents, certifications, or evidence deemed necessary by the Department prior to disbursement of project funds; and G. For the final drawdown, a HOME Project Completion Report. 5. Project Completion Requirements The HOME Recipient shall submit the following documentation to the Department for project completion: A. HCD-required final Project Set-Up and Completion Report; and B. Any other documents, certifications, or evidence deemed necessary by the Department prior to project completion. 6. General Conditions of Disbursement A. Prior to requesting HOME funds from the Department, the HOME recipient must comply with 24 CFR Part 92.503(d). 1) The HOME Recipient shall spend or commit to a HOME project by the end of the state fiscal year, City of Ukiah 21-HOME-16009 Page 3 of 3 EXHIBIT B HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 2) All HOME Program Income and Recaptured Funds that were in the local HOME account at the beginning of the fiscal year must be committed, before requesting HOME funds from the Department, 3) the HOME Recipient shall not request disbursement (drawdown request) of HOME program grant funds under this Agreement until the funds are needed for the reimbursement of eligible costs only. The amount of each request shall be limited to the amount needed for reimbursement of actual expenses for Work that has been completed. Work completion for each Type of HOME activity is as follows: a) For First-Time Homebuyer Down Payment Assistance: escrow has closed, as evidenced by a Final Settlement Statement; b) For Tenant-Based Rental Assistance: rent subsidies were paid; and c) For Owner-Occupied Rehabilitation: construction/rehabilitation Work completed and inspected. B. When submitting any final Project Drawdown Request, the HOME Recipient shall provide a Project Completion Report to the Department. C. In the event the Department determines funds were used for ineligible expenses, further Project Set-Ups and all disbursements may be withheld until the issue of the ineligible expenses is resolved to the satisfaction of the Department. 7. Payee All payments made under this Agreement will be made to the Contractor named in Section 1 of the Standard Agreement signature page, commonly known as STD 213. City of Ukiah 21-HOME-16009 Page 1 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 Federal Grant Identification HUD Grant Number: M20-SG060100 CFDA Number: 14.239 Date HUD Grant Agreement signed by HUD: September 8, 2020 HOME PROGRAM TERMS AND CONDITIONS 1. Effective Date and Commencement of Work A. This Agreement is effective upon approval by the Department representative’s signature on the fully executed Standard Agreement, STD 213 (the “Effective Date”). B. The HOME Recipient agrees that Work shall not commence, nor shall any costs to be paid with HOME funds be incurred or obligated by any party, prior to the execution of this Agreement by the Department, completion of all required environmental clearances, and compliance with all applicable conditions of this Agreement. There are two (2) exceptions to this requirement: 1) First, administrative expenses for eligible National Environmental Policy Act (NEPA) compliance work may be incurred prior to the execution of this Agreement; and 2) Secondly, with HOME Program Manager or Section Chief prior written approval after award notification, other eligible costs may also be incurred not more than twenty-four (24) months prior to the execution of this Agreement. Such costs may consist of procurement of administrative subcontractors, development of program guidelines, and other program administrative documents required by the Department, for programs funded under this Agreement. C. The HOME Recipient agrees that the Work shall be completed by the date specified in Exhibit E, Provision Ex. A - E.3(A). D. This Agreement shall expire on the date set forth in Exhibit E, Provision Ex. A - E.3(C). City of Ukiah 21-HOME-16009 Page 2 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 2. Sufficiency of Funds A. This Agreement is valid and enforceable only if sufficient funds are made available to the Department by the United States Government for the purposes of the HOME Program. In addition, this Agreement is subject to any additional restrictions, limitations, or conditions enacted by the Congress or state Legislature, promulgated in state or federal regulations or any state or federal statute, as now in effect and as may be amended from time to time which may affect the provisions, terms, or funding of this Agreement in any manner. B. The parties to this Agreement mutually agree that if the Congress does not appropriate sufficient funds for the HOME Program, the Department, at its sole discretion, either may amend the Agreement to reflect any reduction in funds, or it may unilaterally cancel the Agreement with fourteen (14) days’ written notice to the HOME Recipient. C. The Department may terminate this Agreement at any time for cause by giving fourteen (14) days’ written notice to the HOME Recipient. Cause shall consist of any violation of the HOME requirements; any terms and/or special conditions of this Agreement; upon the request of HUD; unreasonably low rate of expenditure or, upon a reduction in, restriction on, or elimination of the Department's expenditure authority by any governmental authority. D. Unless otherwise approved by the Department in writing, upon termination or cancellation of this Agreement, the HOME Recipient shall complete all Work in progress and terminate any other activities that were to be paid for with HOME funds. Any unexpended funds received by the HOME Recipient shall be returned to the Department within fourteen (14) days of the Notice of Termination or Notice of Cancellation. 3. Litigation The HOME Recipient shall have an ongoing obligation to notify the Department immediately of any impending, pending, or current claim or action undertaken by or against it, which affects or may affect this Agreement, the project, the Sponsor, or the Department, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department. 4. 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 City of Ukiah 21-HOME-16009 Page 3 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 of this Agreement, or to require at any time performance by the HOME Recipient 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 Department to enforce these provisions. All waivers by the Department must be in writing and signed by an authorized Department official or their confirmed designee, in order to be valid. 5. HOME Recipient's Application for Funds A. HOME Recipient has submitted to the Department an Application for funding under the HOME Program. The Department is entering into this Agreement based on, and in substantial reliance upon, HOME Recipient’s facts, information, assertions, and representations contained in that Application, and in any subsequent modifications or additions thereto approved by the Department in writing. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement. B. HOME Recipient warrants that all information, facts, assertions, and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of HOME Recipient’s knowledge, both when made and at the time of its execution of this Agreement. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete or misleading in such a manner that would substantially affect the Department's approval, disbursement, or monitoring of the funding and the HOME loans and grants or activities governed by this Agreement, then the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof. All representations and warranties of HOME Recipient shall indefinitely survive the expiration or earlier termination of this Agreement. 6. Federal and State Laws and Regulations The HOME Recipient agrees to comply with all federal laws and regulations applicable to the HOME Program, including any federal Uniform Administrative Requirements of 2 Code of Federal Regulations (hereinafter “CFR”) Part 200 and all applicable HUD rules and regulations including, without limitation, the HOME Grant-Based Accounting Interim Rule dated December 2, 2016, and any final rule related thereto. If the HOME Recipient is acting in the capacity of a Developer (i.e., undertaking an infill new construction program), this Agreement requires the Developer to also carry out each project in compliance with the following requirements of 24 CFR Part 92 subpart H: City of Ukiah 21-HOME-16009 Page 4 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 A. The developer must specify affirmative marketing efforts as enumerated by the Department in accordance with 24 CFR section 92.351. B. The federal requirements and nondiscrimination established in 24 CFR section 92.350. C. Any displacement, relocation, and acquisition requirements imposed by the participating jurisdiction consistent with 24 CFR section 92.353. D. The labor requirements in 24 CFR section 92.354. E. The conflict-of-interest provisions prescribed in 24 CFR section 92.356(f). 7. Financial Accountability Standards The HOME Recipient shall comply with the financial accountability standards set forth in 2 CFR section 200.302. The Department will confirm compliance as evidenced by a combination of the following: A. A review and acceptance of the project cost certification from a certified public accountant, and one of the following as determined by the Department; B. Confirmation that the annual federal single audit report for the most recent period has been submitted and accepted by the State Controller’s office. Upon review has no outstanding financial findings for the HOME Program; or C. A successful project monitoring performed by the HOME Recipient or the Department reflecting on financial monitoring findings. 8. Procurement Standards A. The HOME Recipient must adopt the federal procurement standards found at 2 CFR sections 200.317-327 to ensure that materials and services are obtained in a cost-effective manner. In addition, the HOME Recipient may elect to establish more-restrictive or prescriptive procurement standards. B. These procurement standards must be utilized for all procurements impacting the program. C. The awarding of contracts shall also comply with the conflict-of-interest provisions of 24 CFR section 92.356. In keeping with the aforementioned requirements, subcontractors who are hired by the HOME Recipient to perform City of Ukiah 21-HOME-16009 Page 5 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 specific administrative tasks and/or administer the local HOME program cannot also be the developers and/or owners of a HOME-assisted project unless a waiver to the conflict-of-interest requirements has been submitted to the Department and approved in writing in advance by HUD. 9. Program Requirements The HOME Recipient shall comply with 24 CFR part 92, Subpart F as applicable, in accordance with the type of project assisted. A. Affordability The HOME Recipient shall ensure all assisted homebuyer housing meets the minimum affordability period requirements as specified in 24 CFR section 92.254 and State HOME Regulation section 8206.1(b)(3), as applicable, as shown below. The HOME funds for activities that do not meet these affordability requirements are subject to recapture by the Department. Homebuyer Activities: Amount of HOME Assistance Per Unit Federal Minimum Period of Affordability (in Years) State Minimum Period of Affordability (in Years) More than $40,000 15 15 $15,000 to $40,000 10 10 Under $15,000 5 5 B. HOME Maximum Per-Unit Subsidy Limits and Subsidy Layering, as applicable In accordance with 24 CFR section 92.250 and section 8207 of the state HOME Regulations, the HOME Recipient shall demonstrate to the Department, in a format identified by the Department, that the amount of HOME funds invested on a per-unit basis shall not exceed the limits established by HUD federal standard that apply to the area where the housing is located, and that the HOME funds, in combination with other financing and assistance, are not more than is necessary to provide quality affordable housing that is financially viable for the required federal period of affordability in 24 CFR section 92.252, and will not provide a profit or return on the owner's or developer's investment that exceeds permitted City of Ukiah 21-HOME-16009 Page 6 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 developer fee for that project pursuant to Department requirements. In addition, projects will be evaluated by the Department pursuant to the applicable requirements of 24 CFR section 92.250(b) and sections 8211, 8212, and 8212.2 of the state HOME regulations. The HOME Recipient shall provide a formal certification concerning the governmental assistance provided or to be provided to a project. If no such governmental assistance is to be provided at the time of the application or in the future, the HOME Recipient shall certify to that fact. The HOME Recipient shall also certify that should other governmental assistance be sought in the future; the Department shall be promptly notified. Activities assisted under this Agreement are subject to the underwriting and subsidy layering requirements established by the Department for each activity pursuant to the most recently amended requirements of 24 CFR sections 92.250 and 92.254. C. Written Agreements The HOME recipient must comply with all requirements established under 24 CFR Part 92, Section 92.504, and any additional program requirements established by the Department. The HOME recipient shall enter into a written agreement that complies with the provisions of 24 CFR section 92.504(c)(1)(xi), which says the following regarding use of the HOME funds, affordability requirements, Uniform administrative requirements, project requirements, other program requirements, affirmative marketing, enforcement of the agreement, and fee prohibitions and limitations: Before the State Recipient provides funds to for-profit owners or developers, nonprofit owners or developers or sponsors, subrecipients, homeowners, homebuyers, tenants (or landlords) receiving tenant-based rental assistance, or contractors who are providing services to the State Recipient, the State Recipient must have a written agreement with such entities that meets the requirements of this section. For contracts with contractors, the State Recipient selects a contractor through applicable procurement procedures and requirements. The contractor provides goods or services in accordance with a written agreement (the contract). For contractors who are administering all or some of the participating jurisdiction's HOME programs or specific services for one or more programs, the contract must include at a minimum the following provisions: City of Ukiah 21-HOME-16009 Page 7 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 1) Use of the HOME funds. The agreement must describe the use of the HOME funds, including the tasks to be performed, a schedule for completing the tasks, a budget, and the length of the agreement. 2) Program requirements. The agreement must provide that the contractor is subject to the requirements in part 92 that are applicable to the participating jurisdiction, except §§ 92.505 and 92.506 do not apply, and the contractor cannot assume the participating jurisdiction responsibilities for environmental review, decisionmaking, and action under § 92.352. Where the contractor is administering only a portion of the program, the agreement must list the requirements applicable to the activities the contractor is administering. If applicable to the work under the contract, the agreement must set forth all obligations the participating jurisdiction imposes on the contractor in order to meet the VAWA requirements under § 92.359, including any notice obligations and any obligations under the emergency transfer plan. 3) Duration of agreement. The agreement must specify the duration of the contract. Generally, the duration of a contract should not exceed two years. For contracts with homebuyers, the agreement must conform to the requirements in § 92.254(a), including the value of the property, principal residency requirements, lease-purchase, if applicable, and the resale or recapture provisions. The agreement must specify the amount of HOME funds, the form of assistance (e.g., grant, amortizing loan, deferred payment loan), the use of the funds (e.g., down-payment, closing costs, rehabilitation) and the time by which the housing must be acquired. A Department-approved HOME Written Agreement must be used. For contracts with homeowners for rehabilitation, the agreement must conform to the requirements in § 92.254(b) and specify the amount and form of HOME assistance, rehabilitation work to be undertaken, date for completion, and property standards to be met. For contracts with tenants for Tenant-Based Rental Assistance, the rental assistance contract or the security deposit contract must conform to §§ 92.209 and 92.253. These Agreements must be executed prior to providing the HOME funds. Any written agreement between the HOME recipient and the individual beneficiaries must name the Department as a third-party beneficiary. City of Ukiah 21-HOME-16009 Page 8 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 D. Income Determination Households assisted under this Agreement must meet the income determination requirements of 24 CFR section 92.203, including but not limited to the requirement to examine at least two months' source documentation evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement) when determining household income. In meeting these requirements, the income determination rules under 24 CFR Part 5 shall be used, including the Part 5 definition of income. E. Fees, as applicable Pursuant to 24 CFR section 92.214, fees such as processing fees, inspection fees, or other fees related to the cost of administering HOME funds cannot be charged to low-income beneficiaries except such reasonable and customary fees that are expressly authorized by the Department pursuant to the requirements of this section. Rental project owners may charge: 1) reasonable application fees to prospective tenants; 2) parking fees to tenants only if such fees are customary for rental projects in the neighborhood; and 3) fees for services, such as bus transportation or meals, as long as the services are voluntary, and fees are charged for services provided. F. Providing Additional HOME Funds to a Project Housing may not be re-assisted with additional HOME Program funds except in accordance with any of the following: upon expiration of applicable federal HOME Affordability Period, or within the exception detailed under 24 CFR section 92.214(a)(6), which provides exceptions for tenant-based rental assistance, assistance to a homebuyer to acquire housing previously assisted with HOME funds, or assistance to preserve affordability of homeownership housing in accordance with § 92.254(a)(9) to a project previously assisted with HOME funds during the period of affordability established by the particular jurisdiction in the written agreement under § 92.504. However, additional HOME funds may be committed to a project for up to one year after project completion (see § 92.502), but the amount of HOME funds in the project may not exceed the maximum per- unit subsidy amount established under § 92.250. City of Ukiah 21-HOME-16009 Page 9 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 10. Property Standards Pursuant to 24 CFR section 92.251, the HOME Recipient shall ensure that all housing units meet the following property standards: A. New construction projects. All new construction projects using HOME funds must meet the requirements of this paragraph (A). 1) State and local codes, ordinances, and zoning requirements Housing that is newly constructed with HOME funds must meet all applicable State and local codes, ordinances, and zoning requirements. HOME-assisted new construction projects must meet State or local residential and building codes, as applicable or, in the absence of a State or local building code, the International Residential Code or International Building Code (as applicable to the type of housing) of the International Code Council. The housing must meet the applicable requirements upon project completion. 2) HUD requirements All new construction projects must also meet the requirements described in this paragraph: a) Accessibility. The housing must meet the accessibility requirements of https://www.ecfr.gov/current/title-24/part-8, which implements Section 504 of the Rehabilitation Act of 1973 at https://www.govinfo.gov/link/uscode/29/794, and Titles II and III of the Americans with Disabilities Act at https://www.govinfo.gov/link/uscode/42/12131–12189 implemented at https://www.ecfr.gov/current/title-28/part-35 and https://www.ecfr.gov/current/title-28/part-36, and Section 12.E.3 of this Exhibit, as applicable. b) Disaster mitigation. Where relevant, the housing must be constructed to mitigate the impact of potential disasters (e.g., earthquakes, hurricanes, flooding, and wildfires), in accordance with State and local codes, ordinances, or other State and local requirements, or such other requirements as HUD may establish. c) Written cost estimates, construction contracts and construction documents. The HOME Recipient must ensure the City of Ukiah 21-HOME-16009 Page 10 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 d) construction contract(s) and construction documents describe the work to be undertaken in adequate detail so that inspections can be conducted. The HOME Recipient must review and approve written cost estimates for construction and determining that costs are reasonable. e) Construction progress inspections. The HOME Recipient must conduct progress and final inspections of construction to ensure that work is done in accordance with the applicable codes, the construction contract, and construction documents. B. Owner-Occupied Rehabilitation projects. All rehabilitation that is performed using HOME funds must meet the requirements of this Paragraph B. 1) Rehabilitation standards. The Department has established rehabilitation standards for all HOME-assisted housing rehabilitation activities that set forth the requirements that the housing must meet upon project completion. The rehabilitation standards must address each of the following, to comply with the Department’s Multifamily Rehabilitation Standards for HOME and HTF Programs (“Rehab Standards”) Section IX, for items applicable to single-family construction. This includes, but is not limited to: (a) Health and safety. The Department’s Rehab Standards identify life-threatening deficiencies that must be addressed immediately if the housing is occupied. (b)Major systems. Major systems are: structural support; roofing; cladding and weatherproofing (e.g., windows, doors, siding, gutters); plumbing; electrical; and heating, ventilation, and air conditioning. For homeownership housing, the Department’s Rehab Standards require, upon project completion, each of the major systems to have a remaining useful life for a minimum of five (5) years or for such longer period specified by the participating jurisdiction, or the major systems must be rehabilitated or replaced as part of the rehabilitation work. (c) Lead-based paint. The Department's Rehab Standards require the housing to meet the lead-based paint requirements at https://www.ecfr.gov/current/title-24/part-35. City of Ukiah 21-HOME-16009 Page 11 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 (d) Accessibility. The Department’s Rehab Standards require that assisted housing meets the accessibility requirements in https://www.ecfr.gov/current/title-24/part-8, which implements Section 504 of the Rehabilitation Act of 1973 at https://www.govinfo.gov/link/uscode/29/794, and Titles II and III, sections 12131-12189 of the Americans with Disabilities Act at https://www.govinfo.gov/link/uscode/42/12131 implemented at https://www.ecfr.gov/current/title-28/part-35 and https://www.ecfr.gov/current/title-28/part-36, as applicable. Rehabilitation may include improvements that are not required by regulation or statute that permit use by a person with disabilities. (e) Disaster mitigation. Where relevant, the Department’s Rehab Standards require the housing to be improved to mitigate the impact of potential disasters (e.g., earthquake, hurricanes, flooding, and wildfires) in accordance with State and local codes, ordinances, and requirements, or such other requirements as HUD may establish. (f) State and local codes, ordinances, and zoning requirements. The Department’s Rehab Standards require the housing to meet all applicable State and local codes, ordinances, and requirements. (g) Uniform Physical Condition Standards. The Department’s Rehab Standards state that upon completion, the HOME-assisted project and units will be decent, safe, sanitary, and in good repair as described in https://www.ecfr.gov/current/title-24/section-5.703. HUD will establish the minimum deficiencies that must be corrected under the participating jurisdiction's rehabilitation standards based on inspectable items and inspected areas from HUD-prescribed physical inspection procedures (Uniform Physical Conditions Standards) pursuant to https://www.ecfr.gov/current/title-24/section- 5.705. 2) Construction documents and cost estimates. The Department’s Rehab Standards require that the work to be undertaken will meet these rehabilitation standards. The construction documents (i.e., inspection report, written scope of work to be performed, and supporting photographs) must be in sufficient detail to establish the basis for a uniform inspection of the housing to determine compliance with the Department’s Rehab Standards. The HOME Recipient must review and City of Ukiah 21-HOME-16009 Page 12 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 approve a written cost estimate for rehabilitation after determining that costs are reasonable. 3) Frequency of inspections. The Department’s Rehab Standards require the HOME Recipient to conduct an initial property inspection to identify the deficiencies that must be addressed. The HOME Recipient must also conduct progress and final inspections to determine that work was done in accordance with work write-ups and the construction contract. C. Acquisition of standard housing projects. All down payment assistance projects using HOME funds must meet the requirements of this paragraph (C). Existing housing that is acquired for homeownership (e.g., down payment assistance) must be decent, safe, sanitary, and in good repair. The Department has established standards to determine that the housing is decent, safe, sanitary, and in good repair. The standards require that the housing meets all applicable State and local building code requirements, and that the housing does not contain the specific deficiencies proscribed by HUD based on the applicable inspectable items and inspected areas in HUD-prescribed physical inspection procedures (Uniform Physical Condition Standards) issued pursuant to https://www.ecfr.gov/current/title-24/section-5.705. The HOME Recipient must inspect the housing and document this compliance based upon an inspection that is conducted no earlier than ninety (90) days before the commitment of HOME assistance. If the housing does not meet these standards, the housing must be rehabilitated at the seller’s expense to meet the standards of this paragraph (c)(3) at https://www.ecfr.gov/current/title-24/section-92.251#p- 92.251(c)(3) before sale or it cannot be acquired with HOME funds. D. Housing occupied by tenants receiving HOME Tenant-Based Rental Assistance. All housing to be occupied by tenants receiving HOME tenant- based rental assistance must meet the standards in https://www.ecfr.gov/current/title-24/section-982.401, or the successor requirements as established by HUD. E. Manufactured housing 1) Construction of all manufactured housing including manufactured housing that replaces an existing substandard unit under the definition of "reconstruction" at 24 CFR section 92.2 must meet the Manufactured Home Construction and Safety Standards codified at 24 CFR Part 3280. These standards preempt state and local codes, which are not identical to the federal standards for the new construction of manufactured housing. City of Ukiah 21-HOME-16009 Page 13 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 In addition, HOME funds provided to assist manufactured housing units must comply with other applicable state and local laws or codes. 2) All new manufactured housing and all manufactured housing that replaces an existing substandard unit under the definition of "reconstruction" must be on a permanent foundation that meets the requirements for foundation systems as set forth in 24 CFR section 203.43(c)(i). All new manufactured housing and all manufactured housing that replaces an existing substandard unit under the definition of "reconstruction," must, at the time of project completion, be connected to permanent utility hook-ups and be located on land that is owned by the manufactured housing unit owner or land for which the manufactured housing owner has a lease for a period at least equal to the applicable period of affordability. 3) In HOME-funded rehabilitation of existing manufactured housing, the foundation and anchoring must meet all applicable state and local codes, ordinances, and requirements or as in the absence of local or state codes, the Model Manufactured Home Installation Standards at 24 CFR Part 3285. Manufactured housing that is rehabilitated using HOME funds must meet the property standards requirements for rental rehabilitation projects, as applicable. 4) The HOME Recipient or another qualified third party shall document this compliance in accordance with inspection procedures established pursuant to 24 CFR 92.251, as applicable. 11. Repayment of Funds If the HOME Recipient either: A) does not complete a project by the date in Exhibit E, Section 3.A; or B) before the date in Exhibit E, Section 3.A fails to expend any portion of the funds the Department awarded to it, pursuant to the requirements applicable to the award of HOME funds granted herein, then the HOME Recipient shall: (1) repay to the Department any HOME funds disbursed on an incomplete rehabilitation project; (2) forfeit and have no further rights or claim to any other remaining herein- granted HOME award funds; and City of Ukiah 21-HOME-16009 Page 14 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 (3) consent to and facilitate as necessary the Department’s use of all the foregoing referenced funds for any purpose, including as may be necessary to satisfy any Department obligation regarding repayment of those funds to the state's HOME Investment Trust Fund in accordance with 24 CFR section 92.503(b). (a) For example, if a HOME Recipient receives a HOME grant of $1,000,000 and disburses and expends only $500,000 by the expenditure deadline referenced in this Standard Agreement but has timely and completely finished all Program projects in a manner that satisfies all applicable requirements for the granted award funds, then the remaining unused funds would be disencumbered by the Department. (b) However, in the situation where a HOME Recipient receives a HOME grant of $1,000,000 and undertakes a rehabilitation project for a portion of those funds, and the HOME Recipient has not completed that project by the expenditure deadline as stated in the Standard Agreement (Exhibit E, Section 3.A) in a manner that satisfies all applicable requirements, then any funds disbursed by the Department for that project must be repaid to the Department. 12. Equal Opportunity Requirements and Responsibilities A. Executive Order 11063 (1962) This Order prohibits discrimination in the sale, leasing, rental, or other disposition of properties and facilities owned or operated by the federal government or provided with federal funds. B. Executive Order 12892 (1994), as amended This Order requires federal agencies to affirmatively further fair housing in their programs and activities. C. The Architectural Barriers Act of 1968, as amended at 42 United States Code (hereinafter “U.S.C.”) section 4151, et seq. This Act requires that buildings and facilities designed, constructed, altered, or leased with certain federal funds after September 1969 must be accessible to and useable by handicapped persons. City of Ukiah 21-HOME-16009 Page 15 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 D. Executive Order 12898, Environmental Justice (1994) This Order requires that each federal agency conduct its program, policies, and activities that substantially affect human health or the environment in a manner that does not exclude persons based on race, color, or national origin. E. Affirmative Marketing 1) Affirmatively Furthering Fair Housing (Fair Employment and Housing Act) The Fair Housing Act in 1968 prohibits discrimination in the sale, rental, and financing of housing based on race, religion, and national origin. Over time the law expanded its protections to include discrimination based on sex, disability, and familial status. The law also introduced the need to go beyond just prohibiting discrimination to instead creating real housing choice by affirmatively furthering fair housing. California Government Code sections 65583, 65583.2, and 65302(h) expanded upon the fair housing requirements and protections outlined in the Fair Employment and Housing Act (FEHA). The duty to affirmatively further fair housing extends to all of a program participant’s activities and programs relating to housing and urban development. The Government Code above includes new requirements that apply to all housing elements due for revision on or after January 1, 2021. Affirmatively Furthering Fair Housing requires taking meaningful actions to combat discrimination, overcome patterns of segregation, and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. The HOME Recipient must take meaningful actions that when taken together, address significant disparities in housing needs and access to opportunity. Such actions may include, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially- or ethnically-concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. (24 CFR parts 91, 92, and 903) (24 CFR sections 5.151 and 5.152) For HOME, AFFH requires collecting demographic data for the beneficiaries and waiting lists and analyzing them to develop more- equitable ways to serve the low-income population. City of Ukiah 21-HOME-16009 Page 16 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 2) Advancing Racial Equity Pursuant to direction from HUD, as provided at the links below, Contractors should prioritize the advancement of racial equity at all levels of the affordable housing. The Department asks the HOME Recipient to be leaders in facilitating partnerships among service organizations and promoting racial equity practices. HOME Recipients cannot simply rely on delivering a standardization of services to address equity. Contractors have the responsibility to examine their data to ensure all eligible persons receive equitable services, and are served with dignity, respect, and compassion regardless of circumstances, ability, or identity. The Department recommends that the HOME Recipient refer to and utilize the Racial Equity Tools available on the HUD Exchange to inform efforts to advance racial equity within the homeless response system, currently at: https://www.hudexchange.info/resource/5787/coc-analysis-tool-race- and-ethnicity/. The Department also encourages Contractors to refer to the Advancing Racial Equity and Fair Housing Learning Brief from the HUD Exchange to help guide practices in this area at the following current link, currently at: https://www.hudexchange.info/resource/6774/advancing-racial-equity-and- fair-housing-learning-brief/. 3) Equal Access for Language and Disabilities Contractors must provide a language access plan that makes appropriate accommodations for LEP interpretive services and services that support the visually impaired as required by Section 504 of the Rehabilitation Act of 1973, as amended, 29 USC section 794 and subsect. (d) (contractors receiving federal financial assistance), in conjunction with section 508 of the Rehabilitation Act of 1973, as amended, 29 USC section 794d (created the U.S. Access Board to regulate websites, electronic information and communication technology (EICT) accessibility); Section 255 of the Communications Act of 1934, as amended; 24 CFR Part 8, including sections 8.3 and 8.4; and 36 CFR Part 1194, 36 CFR §§ 1194.1. 1194.2, and Appendices B and C to Part 1194 (accessibility standards for disabled to communication technology); see U.S. Access Board website. Unruh Civil Rights Act, Civ. Code section [CF1] 51, subds. (b) & (f); Disabled Persons Act, Civ. Code sections 54 & subd. (c), 54.1 & subd. (d). City of Ukiah 21-HOME-16009 Page 17 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 Achieving Compliance: The California State Dept. of Rehabilitation maintains an Assistive Technology website with resources for services to achieve compliance with recognized standards for non-discriminatory accessibility. F. Tenant Protections and Selection 1) Pursuant to 24 CFR section 92.253, there must be a written lease between the tenant and the owner of rental housing assisted with HOME funds that is for a period of not less than one year, unless by mutual agreement between the tenant and the owner, a shorter period is specified. 2) Tenant leases may be terminated only pursuant to the terms of 24 CFR section 92.253(c). 3) The lease must not contain any of the prohibited lease terms in 24 CFR section 92.253(b). 4) Preferences for special needs populations in HOME assisted housing must be approved by the Department in accordance with the terms of 24 CFR section 92.253(d)(3). G. Section 504 of the Rehabilitation Act of 1973 and the "504 Coordinator" The HOME Recipient agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR Part 8. For HOME Recipients with fifteen (15) or more permanent, full-or part-time employees, this includes but is not limited to, the designation of a specific person charged with local enforcement of this Act, as the "504 Coordinator". H. The Civil Rights and Age Discrimination Acts Assurances During the performance of this Agreement, the HOME Recipient assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. § 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations. City of Ukiah 21-HOME-16009 Page 18 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 I. Section 3 Compliance under 24 CFR Part 75 - The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent. For the purposes of this Agreement, Section 3 applies to single-family new construction and rehabilitation projects (including reconstruction) over $200,000 including project soft costs (including Activity Delivery Costs). Pursuant to 24 CFR Part 75.3(a)(2): (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. § 1701z-1 or 1701z-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. § 4801 et seq.); and the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. § 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. (ii) [intentionally omitted, as is not applicable] (iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance. 1) Definitions Definitions for Section 3 are located in 24 CFR Part 75.5. 2) Benchmarks The current benchmarks for all projects that meet the criteria to be considered a Section 3 project is to the greatest extent possible 25% of all City of Ukiah 21-HOME-16009 Page 19 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 labor hours worked shall be performed by Section 3 eligible workers and at least 5% of the 25% be targeted Section 3 eligible workers. (Federal Register (2020) Urban Housing Development Department. Vol.85 No.189,60907-60909). 3) Requirements a) Employment and training. i. To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the project is located. ii. Where feasible, priority for opportunities and training described in paragraph (a)(1) of this section should be given to: 1. Section 3 workers residing within the service area or the neighborhood of the project; and 2. Participants in YouthBuild programs (81 CFR section 56460). (b) Contracting i. The parties to this contract agree to comply with HUD's regulations in 24 CFR. Part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 75 regulations. ii. To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located. City of Ukiah 21-HOME-16009 Page 20 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 iii. Where feasible, priority for contracting opportunities described in paragraph (b)(1) of this section should be given to: 1. Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project; and 2. Youth Build programs. 4) Reporting a) Reporting of labor hours. i. For Section 3 projects, recipients must report in a manner prescribed by HUD: 1. The total number of labor hours worked; 2. The total number of labor hours worked by Section 3 workers; and 3. The total number of labor hours worked by Targeted Section 3 workers. ii. Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to § 75.31. iii. The labor hours reported under paragraph (a)(1) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section, to report. iv. Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the total number of labor hours worked under paragraph (a)(1)(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor City of Ukiah 21-HOME-16009 Page 21 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported. v. Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full- time or part-time employee, informed by the employer's existing salary- or time-and-attendance-based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting. b) Additional reporting if Section 3 benchmarks are not met. If the recipient's reporting under paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks described in § 75.23, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following: If the benchmarks are not met for Section 3 compliance, the Contractor must document their efforts to attract and employ workers that meet section 3 eligibility requirements. Below is a sample list of some of the actions a contractor could take to demonstrate their attempts. Documentation is required so support the actions. i. Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. ii. Provided training or apprenticeship opportunities. iii. Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). iv. Provided or connected Section 3 workers with assistance in seeking employment including: drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job placement services. v. Held one or more job fairs. vi. Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, childcare). City of Ukiah 21-HOME-16009 Page 22 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 vii. Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technical training. viii. Assisted Section 3 workers to obtain financial literacy training and/or coaching. ix. Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. x. Provided technical assistance to help Section 3 business concerns understand and bid on contracts. xi. Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. xii. Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. xiii. Promoted use of business registries designed to create opportunities for disadvantaged and small businesses. xiv. Outreach, engagement, or referrals with the state one-stop system as defined in Section 121(e)(2) of the Workforce Innovation and Opportunity Act. J. Compliance with the “Violence Against Women Reauthorization Act of 2022” (VAWA) (S.3623 - 117th Congress (2021-2022) (as amended or reauthorized)) Title VI - Safe Homes for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking – Sec. 601-603. See also 81 FR 80803, Nov. 16, 2016, and HUD’s HOME Program VAWA requirements at 24 CFR section 92.359. VAWA provides housing protections for survivors of domestic and dating violence, sexual assault, and stalking when it comes to finding and keeping a home, they can feel safe in. VAWA applies for all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation, and which must be applied consistently with all nondiscrimination and fair housing requirements. VAWA now expands housing protections to HUD programs beyond HUD’s public housing program and HUD’s tenant-based and project-based Section 8 programs. VAWA now provides enhanced protections and options for victims of domestic violence, dating violence, sexual assault, and stalking. During the performance of this Agreement, the HOME State Recipient shall ensure that all requirements of VAWA are complied with, including but not limited to: City of Ukiah 21-HOME-16009 Page 23 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 1. Domestic Violence survivors are not denied assistance as an applicant, or evicted or have assistance terminated as a tenant, because the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, and stalking. 2. It will develop and implement an ‘emergency transfer plan’ in accordance with 24 CFR section 92.359(g), which allows for domestic violence survivors to move to another safe and available unit if they fear for their life and safety. 3. It will provide “Protections against denials, terminations, and evictions that directly result from being a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant or tenant otherwise qualifies for admission, assistance, participation, or occupancy.” 4. It will implement a ‘Low-barrier certification process’ where a domestic violence survivor need only to self-certify in order to document the domestic violence, dating violence, sexual assault, or stalking, ensuring third party documentation does not cause a barrier in a survivor expressing their rights and receiving the protections needed to keep themselves safe. 5. Notification requirements – In accordance with 24 CFR section 92.359(c), the HOME State Recipient must provide the notice and certification form described in 24 CFR section 5.2005(a) to the applicant for HOME tenant-based rental assistance when the applicant's HOME tenant-based rental assistance is approved or denied. The State Recipient must also provide the notice and certification form described in 24 CFR section 5.2005(a) to a tenant receiving HOME tenant-based rental assistance when the State Recipient provides the tenant with notification of termination of the HOME tenant-based rental assistance, and when the State Recipient learns that the tenant's housing owner intends to provide the tenant with notification of eviction. 6. Bifurcation of lease requirements – In accordance with 24 CFR section 92.359(d), the following requirements shall apply in place of the requirements at 24 CFR section 5.2009(b): If a family who is receiving HOME tenant-based rental assistance separates under 24 CFR section 5.2009(a), the remaining tenant(s) will retain the HOME tenant-based rental assistance. The HOME State Recipient must determine whether the City of Ukiah 21-HOME-16009 Page 24 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 tenant that was removed from the unit will receive HOME tenant-based rental assistance. 7. VAWA lease term/addendum – In accordance with 24 CFR section 92.359(e), the HOME State Recipient must develop a VAWA lease term/addendum to incorporate all requirements that apply to the owner or lease under 24 CFR Part 5, subpart L, and this section, including the prohibited bases for eviction and restrictions on construing lease terms under 24 CFR sections 5.2005(b) and (c). This VAWA lease term/addendum must also provide that the tenant may terminate the lease without penalty if the HOME State Recipient determines that the tenant has met the conditions for an emergency transfer under 24 CFR section 5.2005(e). When HOME tenant-based rental assistance is provided, the lease term/addendum must require the owner to notify the State Recipient before the owner bifurcates the lease or provides notification of eviction to the tenant. If HOME tenant-based rental assistance is the only assistance provided (i.e., the unit is not receiving project-based assistance under a covered housing program, as defined in 24 CFR section 5.2003), the VAWA lease term/addendum may be written to expire at the end of the rental assistance period. Period of applicability – In accordance with 24 CFR section 92.359(f), for HOME tenant- based rental assistance, the requirements of this section shall apply to the owner of the tenant's housing for the period for which the rental assistance is provided. 13. Environmental Review The HOME Recipient shall comply with the National Environmental Policy Act (NEPA) contained in 42 U.S.C. sections 4321-4347 and the implementing regulations at 24 CFR Parts 50 and 58 as they both may be amended from time to time. No actions by any party (including the HOME Recipient, the developer, owner, or sponsor) shall be undertaken for any activity that would have an adverse environmental impact or limit the choice of reasonable alternatives under 24 CFR section 58.22 until HUD or the Department has issued an environmental clearance, or the State Recipient’s NEPA Certifying Officer or NEPA certification delegee has signed a HUD Environmental form documenting compliance. For any owner-occupied rehabilitation or infill new construction projects, the State Recipient must receive Departmental written permission before committing HOME funds. No more than four infill new construction projects may be undertaken within a 2000-foot radius, as a NEPA Environmental Assessment would be triggered. City of Ukiah 21-HOME-16009 Page 25 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 The HOME Recipient must also document in each project file and its Environmental Review Record compliance with, or project or programmatic exemption from, California Environmental Quality Act (CEQA) requirements. Notwithstanding any provision of this Agreement, the parties agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval for any project undertaken under this Agreement, and that such commitment of funds or approval may occur only upon satisfactory completion of environmental review for each project and, where applicable, receipt by the HOME Recipient of an Authority to Use Grant Funds from the Department under 24 CFR Part 58. A written agreement with each beneficiary constitutes commitment of funds, for each project. 14. Labor Standards Provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. §3701, et seq. (with implementing regulations at 29 CFR Part 5 and 29 CFR Part 1926), and all other applicable federal, state, and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The HOME Recipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. § 874, et seq. and 40 U.S.C. §276(c) with implementing regulations at 29 CFR Part 3). The HOME Recipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Department for review upon request. 15. Displacement, Relocation, and Acquisition The HOME Recipient shall comply with the federal displacement, relocation, and real property acquisition rules governing the HOME Program, which are contained in the Uniform Relocation Act, with implementing regulations at 49 CFR Part 24; and Section 104(d) of the Housing and Community Development Act of 1974, as amended, with implementing regulation at 24 CFR Part 92, and applicable State HOME Regulations. 16. Lead-Based Paint Hazards Assistance provided under this Agreement is subject to the Lead-Based Paint Poisoning Prevention Act and subsequent amendments; and to HUD Lead-Based Paint Regulations found at 24 CFR Part 35, et seq. 17. Conflicts of Interest The HOME Recipient shall comply with the conflict-of-interest provisions in 24 CFR section 92.505 (“Applicability of uniform administrative requirements"), incorporating 2 City of Ukiah 21-HOME-16009 Page 26 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 CFR Part 200 et seq.; 24 CFR section 92.504(c)(3)(v)(E) and 24 CFR section 92.356(f) for the award of rental units; 24 CFR sections 92.356(b)-(e) for the award of contracts; and 24 CFR section 92.356(f) for the award of homebuyer units. 24 CFR section 92.356 prohibits, in part, that any employees, agents, consultants, officers or elected or appointed officials, “who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter.” A Contractor shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees, or agents engaged in the selection, award, and/or administration of contracts supported by Federal funds to ensure no conflict of interest, real or apparent, would be involved pursuant to 2 CFR section 200.318(c) - (written conflict of interest standards). 18. Interest of Certain Federal Officials No member of or delegate to the Congress of the United States, and no resident commissioner, shall be a party to this Agreement or receive any benefit hereunder. 19. Certification Regarding Lobbying (Byrd Amendment) A. The HOME Recipient shall require that the language of the certification be contained in subpart C below, included in the award documents for all subawards (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, Title 31, U.S. Code. 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. C. “The undersigned certifies, to the best of his or her knowledge and belief, that: 1) No federal appropriated funds have been paid or shall be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an City of Ukiah 21-HOME-16009 Page 27 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 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. 2) If any funds other than federally appropriated funds have been paid or shall be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form- LLL, Disclosure Form to Report Lobbying, in accordance with its instructions." 20. Bonus or Commission Prohibition The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining Department approval of the application for such assistance, or Department approval of the applications for additional assistance, or any other approval or concurrence of the Department required under this Agreement, Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, or 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. Leverage and Matching Funds The HOME Recipient shall provide leverage and matching funds, in an amount not less than that specified in Exhibit A, Paragraph 8(B) of this Agreement. 22. Contractors and Subcontractors - Department Requirements A. The HOME Recipient shall not enter into any agreement, written or oral, with any construction contractor without first determining that the construction contractor is duly licensed and eligible to perform the work being contracted for. A construction contractor or subcontractor is not eligible to receive HOME funds if not actively licensed and in good standing with the State of California, as determined by the Department. B. The Department reserves the right to review and approve any contracts or City of Ukiah 21-HOME-16009 Page 28 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 agreements executed by the HOME Recipient related to any HOME-assisted projects. C. For infill new construction, the contract between the HOME Recipient and any construction contractor shall require the construction contractor and its subcontractors, if any, to: a) Perform the Work in accordance with federal, state and local housing and building codes, regulations and statutes; b) Provide adequate security to assure completion of the project and payment of project costs by furnishing the borrower and construction lenders with Performance and Payment Bonds; c) Comply with the applicable Labor Standards/Prevailing Wage Provisions of Section 14 of this Exhibit; d) Comply with the applicable Equal Opportunity Requirements described in Section 12 of this Exhibit; e) Maintain at least the minimum State-required Workers’ Compensation Insurance for those employees who shall perform the Work or any part of it; and f) Maintain, if so required by law, unemployment insurance, disability insurance and liability insurance in an amount to be determined by the Department, 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 Work or any part of it. D. The contract between the HOME Recipient’s beneficiary and any construction contractor shall require the construction contractor and its subcontractors, if any, to: a) Perform the Work in accordance with federal, state and local housing and building codes, regulations and statutes, and Department Rehab Standards; b) Provide adequate security to assure completion of the project and payment of project costs by furnishing the borrower and construction lenders with Performance and Payment Bonds; City of Ukiah 21-HOME-16009 Page 29 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 c) Comply with the applicable Labor Standards/Prevailing Wage Provisions of Section 14 of this Exhibit; d) Comply with the applicable Equal Opportunity Requirements described in Section 12 of this Exhibit; e) Maintain at least the minimum State-required Workers’ Compensation Insurance for those employees who shall perform the Work or any part of it; and f) Maintain, if so required by law, unemployment insurance, disability insurance and liability insurance in an amount 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 Work or any part of it. E. Third-Party Beneficiary: a) The HOME Recipient shall enter into a written agreement that complies with the provisions of 24 CFR 92.504 with any other entity or individual to which it disburses HOME funds. This Agreement must be executed prior to providing the HOME funds. Under 24 CFR 92.201(b)(3)(i) HUD has directed the Department to create a mechanism to which they can monitor HUD funds and ensure that rules and regulations are followed by all State Recipients. The Department is an administrator of HUD HOME Funds to State Recipients. In all contracts between the State Recipient and their subrecipients including any assignees, the Department will and shall always be deemed an intended third-party beneficiary. As such, the HOME Recipient must ensure that there is a written provision in such written agreements that designates the Department as an intended third-party beneficiary of such agreement. b) All agreements, instruments and documents executed by or entered into by the HOME Recipient that materially affect the construction, refinancing, acquisition, operation, ownership, or City of Ukiah 21-HOME-16009 Page 30 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 maintenance of the project, shall be subject to the written approval of the Department. 23. Contractors and Subcontractors - Federal Requirements A. The HOME Recipient and all its contractors and their subcontractors are required to provide the certification set forth below in Paragraph D and include this certification in their contracts. B. This certification is required by the federal government and contains terms defined in Executive Order 12549, a copy of which is available from the Department. For purposes of this Agreement: 1) “prospective lower tier participant” refers to the HOME Recipient and any other party or person that shall receive funds from this Agreement, such as general contractors and their subcontractors; 2) “lower tier transaction” refers to contracts let by the HOME Recipient or HOME Recipient’s contractors utilizing funds provided through this Agreement; and 3) “this proposal” refers to the HOME Recipient’s HOME application and any bid or application from a prospective lower tier participant. C. By signing this Agreement, the HOME Recipient is providing the certification set forth below. The HOME Recipient shall provide immediate written notice to the Department if at any time the HOME Recipient learns that its certification was erroneous when submitted or has become erroneous. D. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions: 1) The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. 2) Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. E. By signing this Agreement, the HOME Recipient agrees that it shall not City of Ukiah 21-HOME-16009 Page 31 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 knowingly enter into any lower tier transaction with a person or entity that is proposed for debarment under 48 CFR section 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in such transaction. F. By signing this Agreement, the HOME Recipient agrees that it shall include the above certification in all lower tier transactions to which it is a part; and it shall require that each of its contractors include the certification in their subcontracts. 24. Faith-Based Activities The HOME Recipient shall comply with the requirements of 24 CFR section 92.257 and 24 CFR section 5.109, which provide, in part, that “Organizations that are directly funded under the HOME Program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the assistance funded under this part." HOME funds and activities must be separate in time and location from explicitly religious activities. 25. Insurance A. The HOME Recipient shall have and maintain in full force and effect during the term of this Agreement: 1) Comprehensive general liability insurance in the amount of not less than one million dollars ($1,000,000); 2) Worker’s compensation insurance; and Other forms of insurance, at such levels, as may be determined by the HOME Recipient and the Department to be necessary for specific components of the Work listed in Exhibit A. 3) Pursuant to the compliance requirements under 24 CFR section 92.508 Recordkeeping (a)(7)(iii), both flood and earthquake insurances may be required depending on findings in the environmental review pursuant to 24 CFR section 92.352 and 24 CFR part 58. 4) Pursuant to 24 CFR section 92.251 Property standards(a)(iii),(b)(vi-viii) Disaster mitigation. Where relevant, the participating jurisdiction's standards must require the housing to be improved to mitigate the impact of potential disasters (e.g., earthquake, hurricanes, flooding, and wildfires) in accordance with State and local codes, ordinances, and requirements. City of Ukiah 21-HOME-16009 Page 32 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 B. The HOME Recipient agrees to furnish satisfactory evidence of the above listed insurance coverage to the Department prior to the commencement of any work and thereafter from time to time upon the Department’s request. Insurance coverage shall not be canceled or changed unless written notice is sent to the Department thirty (30) days prior to the effective date of the action. The Department reserves the right to waive or modify these insurance coverage requirements upon demonstration of cause satisfactory to the Department, and contingent upon the HOME Recipient providing evidence of an alternative to conventional insurance sufficient to provide equivalent protection. 26. Records A. The HOME Recipient shall maintain necessary and sufficient recordkeeping for the program, project, financial, program administration, and federal requirement records specified in 24 CFR section 92.508, for review and inspection by the Department. B. All records specified in 24 CFR section 92.508 shall be retained for the time periods specified in section 32 below. These records include, but are not limited to, the following: 1) a full description of each project assisted with HOME funds, including the location (address of each unit), form of HOME assistance, and the units or tenants assisted with HOME funds; 2) the source and application of funds for each project, including supporting documentation in accordance with 24 CFR section 85.20; and records to document the eligibility and permissibility of the project costs; 3) records demonstrating that each project meets the minimum per-unit subsidy amount of 24 CFR section 92.205(c), the maximum per-unit subsidy amount of 24 CFR section 92.250(a), and the subsidy layering, and underwriting evaluation adopted in accordance with 24 CFR section 92.250(b); 4) records (e.g., inspection reports) demonstrating that each project meets the property standards of 24 CFR section 92.251 at project completion; 5) records demonstrating that each tenant-based rental assistance project meets the written tenant selection policies and criteria of 24 CFR section 92.209(c), including any targeting requirements, the rent reasonableness requirements of that section including any targeting requirements, the rent City of Ukiah 21-HOME-16009 Page 33 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 reasonableness requirements of 24 CFR section 92.209(f), the maximum subsidy provisions of 24 CFR section 92.209(h), property inspection reports and calculation of the HOME subsidy; and 6) records (written agreements) demonstrating compliance with the written agreement requirements in 24 CFR section 92.504. C. If so, directed by the Department upon termination of this Agreement, the HOME Recipient shall cause all records, accounts, documentation, and all other materials relevant to the Work to be delivered to the Department as depository. 27. Reporting In accordance with state HOME regulations section 8216(a)(3), the HOME Recipient shall submit annually, by July 31, a HOME Annual Performance Report on a form provided by the Department. In accordance with state HOME regulations section 8216(a)(2), the HOME Recipient must submit, quarterly, and no later than the last calendar day of the month following each calendar quarter, both a Quarterly Performance Report and a Quarterly Program Income Statement Report to the Department on forms provided by the Department. Unless otherwise waived in writing by the Department, such reporting shall begin in the second month following execution of the Agreement and shall continue through the receipt and approval by the Department of the last “Project Completion Report” under this Agreement. Evidence of said approval shall be in writing from the Department. Additionally, within one month of any quarter in which Contactor expends Program Income, Recaptured Funds, or Program Income Administration funds, Contractor must submit a Quarterly Program Income Statement Report to the Department and must include applicable Project Setup/Completion Report and Project or Admin Drawdown forms. 28. Remedies for Noncompliance and Sanctions The Department is not limited to specified remedies listed for non-compliance and sanctions in the HOME Development Agreement and Regulatory Agreement. 29. Inspections Inspections are required, as follows, for each Program Activity type: A. Infill New Construction City of Ukiah 21-HOME-16009 Page 34 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 The HOME Recipient must conduct an initial inspection during the environmental review process, as well as progress and final inspections of construction to ensure that work is done in accordance with the applicable codes, the construction contract, and construction documents. B. First-Time Homebuyer Assistance The HOME Recipient must inspect the housing and document compliance with the provisions of Section 10.C of this Exhibit, no earlier than 90 days before the commitment of HOME assistance. If the housing does not meet these standards, the housing must be rehabilitated at the seller’s expense to meet the standards of Section 10.C.3 before sale or it cannot be acquired with HOME funds. C. Owner-Occupied Rehabilitation The HOME Recipient must conduct an initial inspection during the environmental review process. The Department’s Rehab Standards require the HOME Recipient to conduct an initial property inspection to identify the deficiencies that must be addressed. The HOME Recipient must also conduct progress and final inspections to determine that work was done in accordance with work write-ups in compliance with the applicable Rehab Standards. D. Tenant-Based Rental Assistance All housing to be occupied by tenants receiving HOME tenant-based rental assistance must meet the standards in 24 CFR 982.401, or the successor requirements as established by HUD. Housing must be reinspected annually to ensure ongoing compliance with these standards. 30. Project Site Notwithstanding any provision in this Agreement, the parties hereto further agree and acknowledge that this Agreement does not constitute a commitment of funds to or approval of any project sites, and that such commitments of funds to or approvals of any project sites may occur only upon satisfactory completion of environmental review for each project. 31. Security Documents and Lien Agreements Prior to the initial disbursement of any HOME funds encumbered by this Agreement, the City of Ukiah 21-HOME-16009 Page 35 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 documents described in this paragraph shall be entered into, executed and, where appropriate, acknowledged and recorded. The documents described in subsections “A” through “E” shall be provided by the Department. The HOME Recipient shall comply with, and fulfill its obligations under, all the applicable documents called for in this Agreement. Any breach or violation by the HOME Recipient or HOME Recipient’s successor in interest of any provision of any of the required documents shall constitute a breach or violation of this Agreement and shall be subject to the remedies provided herein. HOME funds shall be disbursed in the form of loans except for funds disbursed for the purposes set forth in the state HOME Regulations section 8205(c)(2), which shall be provided in the form of a grant. The HOME Recipient shall ensure that all loans made by the HOME Recipient are evidenced by a HOME Loan Agreement and a promissory note, the repayment of which is secured by a deed of trust to be recorded on the property being assisted, or by other security approved by the Department in writing. The HOME Recipient agrees that all said documents shall be executed and where appropriate recorded, prior to disbursement of funds to the project and shall contain the applicable minimum affordability period set forth in 24 CFR section 92.252 and section 8208(b) of the state HOME Regulations for rental housing, or 24 CFR section 92.254 and section 8208(c) of the state HOME Regulations for homeownership, as applicable. 32. Audit/Retention and Inspection of Records A. The HOME Recipient agrees that the Department or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. The HOME Recipient agrees to provide the Department or its designee with any relevant information requested and shall permit the Department or its designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with California Government Code section 8546.7. The HOME Recipient further agrees to maintain such records for a period of five (5) years after the Department closes its HUD grant. NOTE: Record retention is based on the Department’s grant from HUD and the date it is closed by HUD. Therefore, the HOME Recipient shall contact the Department for the specific record retention date for this Agreement. The HOME Recipient also agrees to include in any contract that it enters into, in an amount exceeding $10,000, a provision establishing the Department’s right to City of Ukiah 21-HOME-16009 Page 36 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 audit the contractor’s records and interview their employees. If the HOME Recipient provides HOME funds to for-profit owners or developers or other entity approved by the Department, the HOME Recipient must have a written agreement that includes a provision for meeting the fiscal and audit requirements of this Section. The HOME Recipient shall comply with the caveats and be aware of the penalties for violations of fraud and for obstruction of investigation as set forth in California Public Contract Code section 10115.10. B. An expenditure which is not authorized by this Agreement, or which cannot be adequately documented shall be disallowed, and funds must be returned to the Department within sixty (60) days of discovery by the HOME Recipient unless the Department approves in writing an alternate plan. C. The determination by the Department of the eligibility of any expenditure shall be final. D. If requested by the Department pursuant to HOME regulation at section 8216 of Title 25 of the California Code of Regulations, the HOME Recipient shall cause to be performed a financial audit by an independent certified public accountant. 1) The HOME Recipient shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for audit shall allow access by the Department to the independent auditor's working papers. 2) The HOME Recipient shall submit one copy of all required audit reports to the Department within the earlier of thirty (30) days after receipt of the auditor's report or nine months after the close of the required audit period unless a longer period is agreed to in advance by the Department, to: Department of Housing and Community Development Division of Financial Assistance P.O. Box 952054 Sacramento, CA 94252-2050 ATTN: HOME Long-Term Monitoring E. Pursuant to 2 CFR Part 200 Sub-Part F, a HOME recipient who received in excess of $750,000 in federal funds annually, shall cause to be performed an annual single or program-specific audit conducted for that year by the close of each fiscal year in which this Agreement is in effect, of the following: City of Ukiah 21-HOME-16009 Page 37 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 1) The financial statements and a schedule of federal awards and the auditor's report on the statements and the schedule; 2) A written report of the independent auditor's understanding of the internal control structure and the assessment of control risk; 3) The auditor's report on compliance; and, 4) Other items as stipulated in 2 CFR Part 200 Sub-Part F. F. The audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in 2 CFR Part 200. G. The HOME Recipient shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for audit shall allow access by the Department to the independent auditor's working papers. H. The HOME Recipient shall submit three copies of all required audit reports to the State Controller's Office within the earlier of thirty (30) days after receipt of the auditor's report, nine months after the end of the required audit period, unless a longer period, is agreed to in advance, to: State Controller's Office Division of Audits Financial Audits Bureau/Single Audits Unit 3301 C Street, Suite 700 Sacramento, CA 95816 In addition, the HOME Recipient shall submit one copy of the audit report within the same time frame described in this paragraph to: Federal Audit Clearinghouse Bureau of the Census 1201 East Tenth Street Jeffersonville, IN 47132 I. The performance of this Agreement by the HOME Recipient shall be subject to examination and audit by the State Auditor pursuant to California Government Code section 8546.7. City of Ukiah 21-HOME-16009 Page 38 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 J. The HOME Recipient is responsible for the completion of any required audits and all costs of preparing audits. K. If there are audit findings, the HOME Recipient shall submit a detailed response acceptable to the Department for each audit finding. L. The HOME Recipient shall retain all books and records relevant to this Agreement for a minimum of five (5) years after the project completion as evidenced by the certificate of occupancy or submittal of the HUD-required Project Completion Report whichever is later; except that: 1) records of individual tenant income verifications, project rents inspections shall be retained for the most recent five (5) year period, until five years after the affordability terminates; and, 33. Signs 2) records relating to any and all audits or litigation relevant to this Agreement shall be retained for five (5) years after the conclusion or resolution of the matter. The state, the Bureau of State Audits, and the Department and/or their representatives shall have unrestricted reasonable access to all locations, books, and records for the purpose of monitoring, auditing or otherwise examining said locations, books, and records, with or without prior notice. During the construction period of a project, the Department may place, or require to be placed, signs on the property stating that the HOME Program is providing financing. The signs shall indicate in a typeface and size commensurate with its funding that the Department is a source of financing for the project, through the HOME Program. 34. Special Conditions The HOME Recipient agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit E, if applicable. These conditions shall be met to the satisfaction of the Department prior to Project Set-Up or disbursement of funds, as appropriate. The HOME Recipient shall ensure that all contractors and/or subcontractors are made aware of and agree to comply with all of the conditions of this Agreement and the applicable federal and state requirements governing the use of HOME funds. Failure to comply with these conditions may result in cancellation of this Agreement pursuant to the terms hereof. City of Ukiah 21-HOME-16009 Page 39 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 35. Assignment of Agreement, Assignment of Loan Commitment A. This Agreement shall be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives. This Agreement is not assignable, either in whole or in part, without the prior written approval of the Department, except that the HOME Recipient may assign the commitment of funds represented by this Agreement, without further approval of the Department, to a California limited partnership in which the HOME Recipient is the sole managing general partner. Notwithstanding any such assignment, the HOME Recipient shall remain liable for the performance of its obligations under this Agreement. B. This Agreement represents a commitment of funds for accomplishment of the Work. This commitment of funds shall not be assigned, in whole or in part, by the HOME Recipient or any other entity which, pursuant to the Application or the description of the Work, anticipates receiving any funds encumbered by this Agreement without the prior express written consent of the Department. C. If the HOME Recipient will be the owner during construction of the affordable housing project to be constructed using funds provided pursuant to this Agreement (i.e., the HOME Recipient will be acting as either an “owner” or a “sponsor”), as those all or any portion of this Agreement or the completed Project shall, at a minimum, be conditioned on the following: 1) The HOME Recipient is in compliance with this Agreement; 2) The successor in interest to the HOME Recipient agrees to assume all obligations of the HOME Recipient pursuant to this Agreement and the HOME Program; 3) The successor in interest demonstrates to the Department’s satisfaction that it has the capability to own and operate the Project in full compliance with all Program requirements; and, 4) Any terms of the sale, transfer, or conveyance will not threaten the Department’s security or the successor in interest’s ability to comply with all Program requirements. D. If the HOME Recipient has or will have a contractual obligation to a property owner, or a lessee under a long-term leasehold, to obtain financing, rehabilitate, or construct an affordable housing project using funds provided under this Agreement (i.e., the HOME Recipient will be acting in the capacity of a City of Ukiah 21-HOME-16009 Page 40 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 “developer” as the term is defined by HUD), Department approval of an assignment of all or any portion of this Agreement including the commitment of funds represented by this Agreement shall, at a minimum, be conditioned on the following: 1) The HOME Recipient is in compliance with this Agreement; 2) The property owner or lessee demonstrates to the Department’s satisfaction that it has the capability to own and operate the Project in full compliance with all Program requirements; 3) The property owner or lessee agrees to assume all obligations of the HOME Recipient pursuant to this Agreement and the HOME Program which pertain to the ownership and operation of the project, including, but not limited to, execution of security documents and lien agreements; and 4) Any terms of the sale, transfer, or conveyance will not threaten the Department’s security or the property owner’s or lessee’s ability to comply with all applicable HOME Program requirements. 36. Local Account Unless the Department approves that the HOME Recipient will be retaining funds in a HOME Recipient’s local account, matching funds and income resulting from the use of HOME funds (Program Income and Recaptured Funds) shall be forwarded to the Department for deposit to the state’s local account. The use of all funds maintained in a local account must comply with 24 CFR Part 92. 37. State Contract Manual Requirements (section 3.11, Federally-Funded Contracts (Rev. 3/03)): A. All contracts, except for state construction projects that are funded in whole or in part by the Federal government, must contain a thirty (30) day cancellation clause and the following provisions: 1) It is mutually understood between the parties that this contract may have been written for the mutual benefit of both parties before ascertaining the availability of congressional appropriation of funds to avoid program and fiscal delays that would occur if the contract were executed after that determination was made. 2) This contract is valid and enforceable only if sufficient funds are made City of Ukiah 21-HOME-16009 Page 41 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 available to the state by the United States Government for the purpose of this Program. In addition, this contract is subject to any additional restrictions, limitations, or conditions enacted by the Congress or to any statute enacted by the Congress that may affect the provisions, terms, or funding of this contract in any manner. 3) The parties mutually agree that if the Congress does not appropriate sufficient funds for the program, this contract shall be amended to reflect any reduction in funds. 4) The department has the option to invalidate the contract under the thirty (30) day cancellation clause or to amend the contract to reflect any reduction in funds. B. Exemptions from provisions A.1 through A.4 above may be granted by the Department of Finance provided that the director of the state agency can certify in writing that Federal funds are available for the term of the contract. California Government Code section 8546.4(e) provides that state agencies receiving Federal funds shall be primarily responsible for arranging for Federally required financial and compliance audits, and shall immediately notify the Director of Finance, the State Auditor, and the State Controller when they are required to obtain Federally required financial and compliance audits. 38. Other Federal Requirements In accordance with 24 CFR section 92.350, the following additional federal requirements apply: A. The Drug-Free Workplace Act of 1988 (41 U.S.C. 701, et seq.) and HUD's implementing regulations at 2 CFR Part 2429 are applicable to this Agreement. B. Homebuyer housing counseling is required by 24 CFR section 92.254(a)(3), and shall be provided by only organizations and counselors certified by the Secretary under 24 CFR Part 214 to provide housing counseling, consistent with 12 U.S.C. 1701x. 39. Compatibility of Program Funds It is the duty and responsibility of each Applicant to review the provisions, requirements, and limitations of all funding sources applied for and obtained for a particular project, City of Ukiah 21-HOME-16009 Page 42 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 program, or activity in order to ensure that each and every requirement of those funding sources I compatible with all Department program requirements and restrictions. Incompatibility of funding sources will result in the denial or cancellation of an award or may result in the placement of conditions or limitations on an award, all as determined by the Department in its sole and absolute discretion. 40. False, Fictitious or Fraudulent Claims: Warning: Any person who knowingly makes a false claim or statement to HUD or the Department may be subject to civil or criminal penalties under 18 U.S.C. 287, 1001 and 31 U.S.C. 3729. A. Detecting, Preventing, and Reporting Fraud Fraud is a white-collar crime that has a devastating effect on the HOME program because the HOME program beneficiaries are victims of this crime when the HOME program is abused. The Department wants to stop any criminal assault on the HOME program it administers, and in doing so all HOME funds go to people it was designed to help and improve their living conditions. B. Combatting Fraud The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) is committed to protecting HUD’s programs, operations, and beneficiaries from dishonest individuals and organizations. HUD cannot combat fraud alone. HUD relies on the Department and HOME NOFA applicants to combat HOME program fraud. HUD also relies on applicants for, and people receiving, HUD benefits, such as tenants receiving rental assistance, borrowers with HUD- insured loans, or citizens having their communities restored using HUD grants. The HUD OIG Hotline number is 1-800-347-3735; this is the primary means to submit allegations of fraud, waste, abuse, mismanagement, or Whistleblower related matters for the HOME program to the Office of Inspector General. City of Ukiah 21-HOME-16009 Page 43 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in the HOME program from HUD employees, anyone administering the HOME program, anyone working in the HOME program, contractors, and the public. You can report mismanagement or violations of law, rules, or regulations by HUD employees or program participants. Fraud, Waste and Abuse in the HOME program and its operation may be reported in one of the following four (4) ways: E-mail to: hotline@hudoig.gov By Phone: Call toll free: 1-800-347-3735 By Fax: 202-708-4829 By Mail to: Department of Housing & Urban Development. HUD OIG, Office of Investigation, Room 1200 Field Office One Sansome Street San Francisco, CA 94104 (213) 534-2518 HUD OIG, Office of Investigation Suite 4070 Regional Office 300 North Los Angeles Street Los Angeles, CA 90012 (213) 534-2518 41. Whistleblower Protection Act A. Federal Whistleblower Protection Act (5 U.S.C Section 2302(b)(8)) The Federal Whistleblower Protection Act (WPA) protects employees from retaliation for making protected disclosures. The WPA also provides penalties for supervisors who retaliate against Whistleblowers. 1) A disclosure is protected under the WPA if the employee discloses information the employee reasonably believes to be evidence of: a) a violation of any law, rule, or regulation, b) gross mismanagement, City of Ukiah 21-HOME-16009 Page 44 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 c) a gross waste of funds, d) an abuse of authority, or e) a substantial and specific danger to public health or safety. 2) In general, an employee or applicant may make a protected disclosure to anyone, including non-governmental audiences, unless the information is classified or specifically prohibited by law from release. Options for making a protected disclosure include: a) Informing a supervisor or someone higher up in management, b) Submitting an e-mail complaint to the U.S. Office of Inspector General (OIG) at oig@ftc.gov, c) Filing a complaint with the U.S. Office of Special Counsel (OSC) (OSC) http://www.osc.gov/ B. The California Whistleblower Protection Act (Title 2, Division 1, Chapter 6.5, Article 3.5, Gov. Code §§ 8548-8548.5) 1) The California Whistleblower Protection Act authorizes the California State Auditor to receive complaints from state employees and members of the public who wish to report an improper governmental activity. An "improper governmental activity" is any action by a state agency or any action by a state employee directly related to state government that: a) Violates any state or federal law or regulation, (e.g., Government Code 65302(c)&(g)-(h); Public Resources Code Section 71150 et seq.; 71350 et seq.), b) Violates an Executive Order of the Governor (e.g., Executive Order N-8-23, N-06-19), a California Rule of Court, or any policy or procedure required by the State Administrative Manual or State Contracting Manual, or c) Is economically wasteful or involves gross misconduct, incompetency, or inefficiency. Complaints received by the State Auditor are confidential, and the identity of the complainant may not be revealed without the complainant's permission, aside from to an appropriate law enforcement agency conducting a criminal investigation. 2) There are many ways to file a complaint: City of Ukiah 21-HOME-16009 Page 45 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 a) By Telephone You may call the Whistleblower Hotline at (800) 952-5665 to file a complaint by talking to one of the State Auditor's employees. The hotline generally is staffed Monday through Friday from 8:00 a.m. to 5:00 p.m. If you call when the hotline is not being staffed, or staff is occupied with other calls, you may leave a voicemail message requesting a return call. b) By Mail or Facsimile You may file a complaint in the form of a letter to the State Auditor addressed as follows: Investigations California State Auditor P.O. Box 1019 Sacramento, CA 95812 Or you may fax the letter to the State Auditor at (916) 322-2603. As an alternative, you may complete the electronic version of the complaint form (which is available on the State Auditor website at auditor.ca.gov), print it out, and return it by mail or facsimile as stated above. c) Online Although the State Auditor does not accept complaints by e-mail, you may file a complaint online at https://www.auditor.ca.gov/contactus/complaint. The State Auditor will not undertake an investigation unless there is a basis for believing that your complaint has sufficient merit to warrant spending resources on an investigation. Your complaint should therefore include: i. A clear and concise statement of what you are alleging to be improper activity and why you believe it is improper. City of Ukiah 21-HOME-16009 Page 46 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 ii.The name or other information that clearly identifies the person you are alleging has acted improperly and the department where that person works. iii. The names and contact information for any witnesses who can confirm the truth of what you are saying. iv. Copies of any documents that will support what you are saying. (You should not submit original documents, as they cannot be returned.) 42. Indemnification: HOME Recipient agrees to defend, indemnify, release, and hold harmless the Department, its agents, officers, attorneys, employees, committees, successors and assignees from any and all claims, liabilities, judgments, damages, losses, attorney fees, expenses, costs, actions, or proceedings threatened, asserted, or brought against any of the foregoing individuals or entities related to or arising from the HOME Recipient’s obligations and activities under this Agreement. This indemnification shall include, but not be limited to, all damages, liabilities, judgments, claims, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the HOME Recipient, except loss or liability suffered by the Department caused solely by the Department’s sole negligence or willful misconduct. If, for any reason any portion of the Agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect. The obligations of the HOME Recipient shall be absolute and unconditional and shall survive the construction of the Project and all Department funding. 43. Capacity to Contract: Contractor has the capacity and authority to fulfill the obligations required of it hereunder, and nothing prohibits or restricts the right or ability of Contractor to carry out the terms hereof. 44. Authority to Execute: A. Each person executing this Agreement represents and warrants to the Department that he or she is duly authorized to execute and deliver this Agreement on behalf of the Contractor, and that such authority is evidenced by a binding authorization. The person executing this Agreement, and the Contractor, City of Ukiah 21-HOME-16009 Page 47 of 47 EXHIBIT D HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 acknowledgement that the Department is materially relying upon the foregoing representation and warranty in agreeing to enter into this Agreement. In the event of a defect in any resolution submitted to the Department in connection herewith, then this provision shall be deemed satisfactory and admissible evidence of the authority of the signer to bind Contractor to this Agreement and Contractor shall remain fully bound to the terms hereof. In the even the Department determines in its sole discretion that a resolution submitted by the Contractor is deficient in any way, then within thirty (30) days of the Department’s request, Contractor shall resubmit a new resolution which is satisfactory to the Department. Failure by the Contractor to timely provide such resolution to the Department shall constitute a default under this Agreement. B. Authorized Signatory for Contracts involving a City Jurisdiction Recipient: Pursuant to California Government Code sections 40601 and 40602, the Mayor or Mayor pro tempore sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance described above, then the Department requires that the Mayor or Mayor pro tempore sign this Agreement as the authorized signer for the city and provide to the Department a resolution from the City Council authorizing the Mayor to sign this Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance in effect that expressly authorizes such delegation and a duly authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance as described above, the Department requires the city to provide a copy of such ordinance, as well as a resolution that indicates the name and title of the city official(s) authorized to sign this Agreement and related documents. All resolutions required by this section must be in form and content acceptable to the Department. City of Ukiah 21-HOME-16009 Page 1 of 2 EXHIBIT E HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 Federal Grant Identification HUD Grant Number:M20-SG060100 CFDA Number: 14.239 Date HUD Grant Agreement signed by HUD: September 8, 2020 SPECIFIC PROVISIONS AND SPECIAL TERMS AND CONDITIONS The following are specific terms and conditions (referred to as enumerated provision(s) for ease of reference in prior exhibits) and shall inform the references made to specific information not contained in prior exhibits. 1. Provision Ex. A – E.1 (Scope of Work — as referred to in Exhibit A, Section 3) The Work shall consist of: Type of HOME Activity Awarded Activity Amount Total HOME Units First-Time Homebuyer Program $682,500 4 General Administration $17,500 N/A For the purposes of performing the Work, the Department agrees to provide the amount shown in Exhibit E, Section 2 of this Agreement. In no instance shall the Department be liable for any costs for Work in excess of this amount, nor for any unauthorized or ineligible costs. The HOME Recipient agrees to administer this allocation in accordance with the provisions of 24 Code of Federal Regulations (hereinafter “CFR”) Part 92, and § 8200 through 8220 of Title 25 of the California Code of Regulations. 2. Provision Ex. A – E.2 (Contract Amount – as referred to in Exhibit A, Section 4) As referenced in Exhibit A, the Agreement amount shall be expended as follows: First-Time Homebuyer Program $682,500 State Recipient HOME Administration $17,500 City of Ukiah 21-HOME-16009 Page 2 of 2 EXHIBIT E HOME Investment Partnerships Program (HOME) Program Activities NOFA Date: 12/1/2021, Amended and Restated 2/24/2022. Approval Date: 12/23/2024 Prep. Date: 12/24/2024 3. Provision Ex. A – E.3 (Terms of Agreement and Deadlines – as referred to in Exhibit A, Section 6) A. All Program funds shall be expended by: February 29, 2028 (see Exhibit A, Section 6) B. All Drawdown Requests shall be submitted by: April 30, 2028 (see Exhibit A, Section 6) C. This Agreement shall expire on: February 29, 2046 (see Exhibit A, Section 6) D. Any funds in this contract not drawn from the federal treasury by the federal reversion date of September 30, 2028, shall no longer be available for disbursement. No payments shall be made for drawdown requests received more than sixty (60) days after the expenditure deadline. Any funds not drawn shall be disencumbered. 4. Special Terms and Conditions The following Special Conditions, if any, are applicable to this Standard Agreement and shall control, notwithstanding anything to the contrary herein: HOME First-Time Homebuyer Loan Agreement Approval Requirement The HOME Recipient’s HOME First-Time Homebuyer Loan Agreement must be approved in writing by the Department, as an additional General Setup Condition, before the HOME Recipient will be approved to operate its First-Time Homebuyer Program under this grant. EXHIBIT F City of Ukiah 21-HOME-16009 1 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 2 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 3 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 4 of 89 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 5 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 6 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 7 o f 8 9 C c c moc � fy o w co k k ° _ ) / � g u � & ! 2 I 2 \ ^ \ � 7 ± q§ O a E ° § L ] � § ! e § � ] a \ � CD ) .. ] ) u A 3 E ) o aj ) { 2 / / \ / $ E j { \ _ u ) - E 2 \ / ., ƒ u [ 7 § / § ( m : . cu U- \ k6. CN 04 ) CN (� 0� k E % � d o w § g 0 � & ) m 7 � � ) / / ] f § Z LLX � 0 � Li L LL ) j lu j \ \ � } j / « \ 7 \ \ § \ \ \ d \ } ±� 9 k] 04 6. CN (� 0� EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 10 o f 8 9 EXHIBIT F City of Ukiah 21-HOME-16009 11 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 12 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 13 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 14 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 15 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 16 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 17 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 18 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 19 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 20 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 21 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 22 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 23 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 24 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 25 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 26 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 27 of 89 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 28 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 29 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 30 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 31 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 32 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 33 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 34 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 35 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 36 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 37 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 38 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 39 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 40 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 41 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 42 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 43 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 44 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 45 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 46 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 47 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 48 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 49 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 50 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 51 o f 8 9 EXHIBIT F City of Ukiah 21-HOME-16009 52 of 89 Reports Annual EXHIBIT F City of Ukiah 21-HOME-16009 53 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 54 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 55 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 56 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 57 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 58 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 59 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 60 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 61 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 62 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 63 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 64 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 65 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 66 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 67 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 68 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 69 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 70 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 71 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 72 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 73 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 74 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 75 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 76 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 77 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 78 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 79 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 80 of 89 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 81 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 82 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 83 o f 8 9 EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 84 o f 8 9 Screenshot from Zillow.com Homes sold in the city limits of the City of Ukiah , 2/15/2021 to 2/14/2022 Sale project range: $10,000 to $350,000 Total Sold: 4 EXHIBIT F City of Ukiah 21-HOME-16009 85 of 89 Count of Homes Sold in the City of Ukiah, 2/15/21 to 2/14/22 Sale Price Range: $10,000 to $350,000 Total Sold: 4 Sale Prices of Individual Homes $290,000 $290,000 $295,000 $300,000 $309,000 $310,000 $310,000 $316,000 $320,000 $320,000 $327,000 $328,000 $329,000 $330,000 $334,000 $339,000 $339,000 $340,000 $344,000 $349,000 $350,000 $7 ,000 $85,000 $99,000 $100,000 $128,000 $134,000 $149,000 $152,000 $156,000 $175,000 $200,000 $220,000 $220,000 $225,000 $226,000 $230,000 $244,000 $244,000 $260,000 $275,000 $280,000 Mean Sale Price of homes under $350,000: $24 Median Sale Price of homes under $350,000: $2 ,000 Data from zillow.com *List does not include manufactured homes EXHIBIT F City of Ukiah 21-HOME-16009 86 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 87 of 89 EXHIBIT F City of Ukiah 21-HOME-16009 88 of 89 Pa s s t h r o u g h A g e n c y : R e p o r t D a t e : 05 / 1 7 / 2 0 2 4 Pr o g r a m : R e q u e s t e d B y : Cr a i g S c h l a t t e r Pr o j e c t N a m e / T i t l e : cs c h l a t t e r @ c i t y o f u k i a h . c o m Or g N a m e : Ci t y o f U k i a h Aw a r d / C o n t r a c t N u m b e r : 21 - H O M E - 1 6 0 0 9 St a g e : Pr e - A w a r d Bu d g e t I t e m s Ca t e g o r y T i t l e D e s c r i p t i o n U n i t s U n i t C o s t E x t e n d e d C o s t D i r e c t C o s t I n d i r e c t C o s t G L A c c o u n t C o s t S h a r e T y p e Fi r s t - T i m e H o m e b u y e r F i r s t - T i m e H o m e b u y e r 0 $ 0 . 0 0 $ 0 . 0 0 $ 6 8 2 , 5 0 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 D i r e c t C o s t 0 $ 0 . 0 0 $ 0 . 0 0 $ 6 8 2 , 5 0 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 Ow n e r - O c c u p i e d Re h a b i l i t a t i o n Ow n e r - O c c u p i e d Re h a b i l i t a t i o n 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 D i r e c t C o s t 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 Te n a n t - B a s e d R e n t a l Ass i s t a n c e Te n a n t - B a s e d R e n t a l Ass i s t a n c e 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 D i r e c t C o s t 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 Ge n e r a l A d m i n i s t r a t i o n G e n e r a l A d m i n i s t r a t i o n 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 1 7 , 5 0 0 . 0 0 $ 0 . 0 0 I n d i r e c t C o s t 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 1 7 , 5 0 0 . 0 0 $ 0 . 0 0 Ot h e r Ca t e g o r y T i t l e D e s c r i p t i o n U n i t s U n i t C o s t E x t e n d e d C o s t D i r e c t C o s t I n d i r e c t C o s t G L A c c o u n t C o s t S h a r e T y p e 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 0 . 0 0 0 $ 0 . 0 0 $ 0 . 0 0 $ 6 8 2 , 5 0 0 . 0 0 $ 1 7 , 5 0 0 . 0 0 $ 0 . 0 0 Bu d g e t R e p o r t , C r e a t e d b y C r a i g S c h l a t t e r , c s c h l a t t e r @ c i t y o f u k i a h . c o m , 0 5 / 1 7 / 2 0 2 4 So u r c e : e C i v i s ™ P o r t a l ht t p : / / w w w . e c i v i s . c o m / Gr a n t T o t a l Te n a n t - B a s e d R e n t a l A s s i s t a n c e T o t a l Ge n e r a l A d m i n i s t r a t i o n Ge n e r a l A d m i n i s t r a t i o n T o t a l Ot h e r Ot h e r T o t a l Fi r s t - T i m e H o m e b u y e r Fi r s t - T i m e H o m e b u y e r T o t a l Ow n e r - O c c u p i e d R e h a b i l i t a t i o n Ow n e r - O c c u p i e d R e h a b i l i t a t i o n T o t a l Te n a n t - B a s e d R e n t a l A s s i s t a n c e Bu d g e t R e p o r t Ca l i f o r n i a D e p a r t m e n t o f H o u s i n g a n d C o m m u n i t y D e v e l o p m e n t HO M E 2 0 2 0 - 2 0 2 1 N O F A - P r o g r a m A c t i v i t i e s Ci t y o f U k i a h F i r s t - T i m e H o m e b u y e r P r o g r a m EX H I B I T F Ci t y o f Uk i a h 21 - H O M E - 1 6 0 0 9 89 o f 8 9