Loading...
HomeMy WebLinkAboutC2005-720 - 10/18/2005 - NA FY05 HOME FUNDING AGREEMENT LULAC VILLAGE HOUSING, L. P. STATE OF TEXAS ~ ~ COUNTY OF NUECES ~ KNOW ALL BY THESE PRESENTS: SECTION 1. PARTIES TO AGREEMENT (A) This agreement is made and entered into by and between the Corpus Christi Community Improvement Corporation, a non-profit corporation organized under the laws of the State of Texas ("CCCIC"), and TX LULAC Village Housing, L. P., a limited partnership organized under the laws of the State of Texas ("LULAC"). (8) The parties have severally and collectively agreed, and by the execution of this Agreement are bound, to the mutual obligations and to the performance and accomplishment of tasks described in this Agreement. SECTION 2. AGREEMENT PERIOD This agreement shall commence on the date of execution by the CCCIC and shall terminate two years from the date of execution, unless as otherwise specifically provided by the terms of this Agreement. SECTION 3. GRANT FUNDS (A) The CCCIC agrees to grant LULAC $259,359 of federal HOME funds subject to the conditions in this Agreement. (8) LULAC shall execute a covenant to bind the property for a period of years ("Covenant of Affordability"), the terms of which are set out in this Agreement and in the sample which is attached to this Agreement as Exhibit A. The executed Covenant of Affordability will be recorded in the Nueces County deed records. The Covenant of Affordability will be released upon LULAC's completion of the terms and provisions contained in this Agreement. SECTION 4. LULAC'S PERFORMANCE (A) The grant proceeds shall be used by LULAC to rehabilitate units by replacing the water heaters, installing site lighting and other hard wiring, and by installing accessibility features and other pre-approved improvements at the 152-unit property located at 1417 Horne Road, Corpus Christi, Texas ("Project"). 200='-720 J 0/18/05 (('('1(' (B) LULAC will continue to operate this federal Section 8 property to provide housing to low and moderate income families. These dwellings are located in Corpus Christi, Texas. (C) In this Agreement low and moderate income families are defined in accordance with Title 24 CFR 92.2 and calculated based on 24 CFR 92.203(b)(1), (''Housing''), such dwellings to be located in Corpus Christi, Texas, as described in the Preliminary Budget and Construction Schedule ("Exhibit B"). (0) The Project shall be administered in accordance with all federal laws, rules, and regulations including, but not limited to, the HOME Investment Partnerships Act at Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12701, et seq., and implementing federal regulations contained in 24 CFR Part 92; the HOME Program Guidelines and Application Package, and Exhibit C, which is attached and incorporated in this Agreement. (E) LULAC agrees to acknowledge the sponsorship of the Corpus Christi Community Improvement Corporation at any event promoting the project or any other project sponsor (F) LULAC shall perform all activities in accordance with the terms of the assurances, certifications, and all other statements made by LULAC in its application for the Project funded under this Agreement; and with all other terms, provisions, and requirements set forth in this Agreement SECTION 5. CCCIC'S OBLIGATIONS (A) In consideration of full and satisfactory performance of the activities referred to in Section 4 of this Agreement, the CCCIC shall make payments under the grant for the actual and reasonable costs incurred by LULAC during the Agreement period for performances rendered under this Agreement by LULAC, subject to the limitations set forth in this Section 5. (B) It is expressly understood and agreed by the parties, that the CCCIC's obligations under this Section 5 are contingent upon the actual receipt of adequate federal funds to meet the CCCIC's liabilities under this Agreement. If adequate funds are not available to make payments under this Agreement, the CCCIC shall notify LULAC in writing within a reasonable time after such fact is determined. The CCCIC shall then terminate this Agreement and will not be liable for failure to make payments to LULAC under this Agreement. (C) The CCCIC shall not be liable to grant LULAC money for any costs incurred by LULAC which are allowable costs, as set forth in 24 CFR 92.206 and Section 7 of this Agreement. Funds provided under this Agreement may not be used for payment of prohibited activities as defined in 24 CFR 92.214. (0) The CCCIC shall not be liable to grant LULAC money for any costs incurred by LULAC or any performances rendered by LULAC which are not strictly in accordance with the terms of this Agreement. (E) The CCCIC shall not be liable to grant LULAC money for costs incurred or per- formances rendered by LULAC before commencement of this Agreement or after termination of this Agreement. SECTION 6. DISBURSEMENT OF FUNDS (A) The CCCIC will provide funds under this Agreement in accordance with the requirements of 24 CFR 92.502. LULAC may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. All work related to a request for disbursement will be inspected prior to disbursement of funds. Funds will be disbursed within ten (10) working days following completion of an inspection resulting in a favorable review and approval by representatives of the CCCIC. (B) It is expressly understood and agreed by the parties that payments under this Agreement are contingent upon LULAC's full and satisfactory performance of its obliga- tions under this Agreement. The CCCIC reserves the right to recapture unexpended funds provided under this Agreement in the event the CCCIC determines that LULAC will be unable to expend funds within the prescribed time as determined by represen- tatives of the CCCIC SECTION 7. ADMINISTRATIVE REQUIREMENTS, COSTS PRINCIPLES, AND PROGRAM INCOME (A) LULAC must comply with federal regulations including, but not limited to, applicable regulations under OMB Circular No. A-122 and the following requirements of 24 CFR part 84: 99 84.2, 84.5, 84.13 through 84.16; 84.26 through 84.28; 84.30; 84.31; 84.34 through 84.37; 84.40 through 84.48; 84.51; 84.60 through 84.62; 84.72; and 84.73 pursuant to 24 CFR 92.505(b). (B) LULAC shall maintain records of the receipt, accrual, and disposition of all Project and program income funds in the same manner as required for in Section 7.A. above for all funds provided under this Agreement. LULAC shall provide reports of program Income as requested by representatives of the CCCIC and at the termination of this Agreement. (C) All program income must be re-invested by LULAC and applied towards housing initiatives for low and moderate income individuals and families including, but not limited to, acquisition and rehabilitation of rental or home ownership projects. SECTION 8. RETENTION AND ACCESSIBILITY OF RECORDS (A) LULAC must establish and maintain those records listed under 24 CFR 92.508 and other records as may be determined by CCCIG. (B) LULAC shall give representatives of the CCCIC, the Comptroller of the United States, or any other duly authorized representatives, access to and the right to examine all books. accounts, records, reports, files and other papers, things, or property belonging to or in use by LULAC pertaining to this Agreement. Such rights to access shall continue as long as the records are retained by LULAC. LULAC agrees to maintain such records rn an accessible location. (C) All records pertinent to this Agreement shall be retained by LULAC for five years following the date of termination of this Agreement or of submission of the final close- out report, whichever is later, with the following exceptions: 1 If any litigation, claim or audit is started before the expiration of the five-year period and extends beyond the five-year period, the records shall be main- tained until all litigation, claims or audit findings involving the records have been resolved 2 Records relating to real property acquisition shall be retained for the period of affordability required under 24 CFR 92.254 or 24 CFR 92.252 as applicable, plus five years 3. Records covering displacement and acquisitions must be retained for at least five years after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with 24 CFR 92.353. (0) LULAC shall include the substance of this Section 8 in all subcontracts. (E) LULAC must provide citizens, public agencies, and other interested parties with reasonable access to records consistent with the Texas Public Information Act, Texas Government Code, Chapter 552. SECTION 9. REPORTING REQUIREMENTS (A) LULAC shall submit to the CCCIC such reports on the operation and performance of this Agreement as may be required by the CCCIC including, but not limited to, the reports specified in this Section 9. LULAC shall provide the CCCIC with all reports necessary for the CCC/C's compliance with 24 CFR 92.509 and 24 CFR Part 92, Subpart L (B) /n addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood and agreed by the parties hereto that if LULAC fails to submit to the CCCIC in a timely and satisfactory manner any report required by this Agreement, the CCCIC may. at its sole option and in its sole discretion, withhold any or all payments otherwise due or requested by LULAC, upon notice in writing of its decision and the reasons, Payments withheld pursuant to this section may be held by the CCCIC until the delinquent obligations for which funds are withheld are fulfilled by LULAC. (C) Acknowledgment of Funding Source. LULAC shall give credit to the CCCIC as the Project funding source in all presentations, written documents, publicity and advertise- ments regarding the Project SECTION 10. MONITORING The CCCIC reserves the right to, from time to time, carry out field inspections to ensure compliance with the requirements of this Agreement. LULAC shall attend a precon- struction meeting prior to the first construction draw. After each monitoring visit, the CCCIC shall provide LULAC with a written report of the monitor's findings. If the monitoring reports note deficiencies in LULAC's performances, under the terms of this Agreement, the monitoring report will include requirements for the timely correction of the deficiencies by LULAC. Failure by LULAC to take the action(s) specified in the monitoring report may be cause for suspension or termination of this Agreement, as provided in Section 18 and Section 19 of this Agreement. SECTION 11. INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties hereto that the CCCIC is con- tracting with LULAC as an independent contractor, and that LULAC, as such, agrees to hold the CCCIC harmless and to indemnify the CCCIC from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occurring or in any way incident to, arising out of, or in connection with the services to be performed by LULAC under this Agreement. SECTION 12. INDEMNIFICATION (A) LULAC agrees that it shall indemnify the City of Corpus Christi and the CCCIC (collectively, "Indemnities") and hold the Indemnitees harmless of, from, and against all claims, demands, actions, damages, losses, costs, liabilities, expenses, and judgments re- covered from or asserted against City of Corpus Christi or the CCCIC on account of injury or damage to person or property to the extent any damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by an act or omission, negligence or misconduct on the part of LULAC or any of its agents, servants, employees, contractors, patrons, guests, licensees, or invitees entering upon the Project being improved pursuant to this Agreement or when any such injury or damage is the result, proximate or remote, of the violation by LULAC or any of its agents, servants, employees, contractors, patrons, guests, licensees, or invitees of any law, ordinance, or governmental order of any kind, or when any injury or damage may in any other way arise from or out of the acquisition, rehabilitation, modification, or construction at the Project or out of the use or occupancy of the Project by LULAC, its agents, servants, employees, contractors, patrons, guests, licensees, or invitees including, without limitation, any damages or costs which may occur as a result of the design of the rehabilitation, modification, or construction of the Project, the bidding process, actual rehabilita- tion, modification, or construction of the Project, administration of the construction contracts by LULAC, the City of Corpus Christi, or the CCCIC or its designee, failure of the Project prior to completion and acceptance of the rehabilitation, modification, or construction by LULAC, failure of the rehabilitation, modification, or construction of the Project to work as designed, failure of any contractor or subcon- tractor or manufacturer to honor its warranties, or failure of LULAC to maintain the Project. (B) These terms of indemnifications shall be effective upon the date of execution of this Agreement and whether the iniury or damage may result from the sole negligence. contributory negligence. or concur- rent negligence of Indemnities: but not if the damage or iniury may result from the gross negligence or willful misconduct of Indemnitees. (C) LULAC covenants and agrees that, in case of the City of Corpus Christi or the CCCIC shall be made a party to any litigation against LULAC or in any litigation commenced by any party relating to this Agreement and the construction of the Project contemplated hereunder, LULAC shall and will pay all costs and expenses, including reasonable attorneys' fees and court costs incurred by or imposed upon the City of Corpus Christi or the CCCIC by virtue of any such litigation. (0) LULAC, for and in consideration of the CCCIC's participation in this Agreement, hereby agrees and covenants that LULAC will never institute any suit or action at law against the City of Corpus Christi or the CCCIC, or their respective officers, agents, servants, or em- ployees, ("Releasees"), related to the performance by any party under this Agreement, nor institute, prosecute. or in any way aid in the institution or prosecution of any claim, demand, action, or cause of action for damages, costs, expenses, or compensation related to the performance by any party under this Agreement, whether or not caused by the negligence of Releasees. SECTION 13. SUBCONTRACTS (A) Except for subcontracts to which the federal labor standards requirements apply, LULAC may not subcontract for performances described in this Agreement without obtaining CCCIC's prior written approval. LULAC shall only subcontract for performances described in this Agreement to which the federal labor standards requirement apply after LULAC has submitted a Subcontractor Eligibility form, as specified by the CCCIC, for each such proposed subcontract, and LULAC has obtained the CCCIC's prior written approval, based on the information submitted, of LULAC's intent to enter into such proposed subcontract. LULAC, in subcontracting for any performances described in this Agreement, expressly understands that in entering into such subcontracts, the CCCIC is not in any manner liable to LULAC's subcontractor(s). (8) In no event shall any provision of this Section 13, specifically the requirements that LULAC obtain the CCCIC's prior written approval of a subcontractor's eligibility, be construed as relieving LULAC of the responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all of the terms of this Agreement, as if such performances rendered were rendered by LULAC. The CCCIC's approval of a subcontractor's eligibility under this Section 13 does not con- stitute adoption, ratification, or acceptance of LULAC's or the subcontractor's perfor- mance. The act of approval of a subcontractor's eligibility under this Section 13 does not waive any right of action which may exist or which may subsequently accrue to the CCCIC under this Agreement. The CCCIC retains at all times the right to insist upon LULAC's full compliance with the terms of this Agreement. (C) LULAC shall comply with all applicable federal, state, and local laws, regulations, and ordinances when making procurements under this Agreement. (0) LULAC shall comply with all applicable federal, state, and local laws, regulations, and ordinances for the term of this Agreement. SECTION 14. CONFLICT OF INTEREST LULAC shall ensure that no person who (1) is an employee, agent, consultant, officer or elected or appointed official of LULAC that receives funds and who exercises or has exercised any functions or responsibilities with respect to activities assisted with funds provided under this Agreement or (2) who is in a position to participate in a decision making process or gain inside information with regard to such activities may obtain a personal or financial interest or benefit from a HOME assisted activity, or have an interest in any agreement, subcontract, or contract (or the proceeds thereof) with respect to a HOME assisted activity either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. LULAC shall ensure compliance with applicable provisions under 24 CFR 92.356 and OMB Circular A-110 in the procurement of property and services. SECTION 15. NONDISCRIMINATION (A) LULAC shall ensure that no person shall on the grounds of race, color, religion, sex, age, handicap, familial status, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds provided under this Agreement. (B) In addition, funds provided under this Agreement must be made available in accordance with the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 9170u) such that: 1. To the greatest extent feasible, opportunities for training and employment arising in connection with the planning and carrying out of any Project assisted with HOME funds provided under this Agreement be given to low- income persons residing with the general local government area or metropolitan area or nonmetropolitan county in which the project is located; and 2. To the greatest extent feasible, agreements for work to be performed in connection with any such Project be awarded to business concerns, including, but not limited to, individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance, or repair, which are located in or owned in substantial part by persons residing in the same metropolitan area or nonmetropolitan county as the Project. SECTION 16. LEGAL AUTHORITY (A) LULAC assures and guarantees that LULAC possesses the legal authority to enter into this Agreement, receive funds authorized by this Agreement, and to perform the services LULAC has obligated itself to perform under this Agreement. (B) The person or persons signing and executing this Agreement on behalf of LULAC, or representing themselves as signing and executing this Agreement on behalf of LULAC, do hereby warrant and guarantee that he, she, or they have been duly authorized by LULAC to execute this Agreement on behalf of LULAC and to validly and legally bind LULAC to all terms, performances, and proviSions in this Agreement. (C) LULAC shall not employ, award contract to, or fund any person that has been debarred, suspended, proposed for debarment, or placed on ineligibility status by the U.S. Department of Housing and Urban Development. In addition, the CCCIC shall have the right to suspend or terminate this Agreement if LULAC is debarred, sus- pended, proposed for debarment, or is determined to be ineligible from participating in the HOME Program SECTION 17 . LITIGATION AND CLAIMS LULAC shall give the CCCIC immediate notice in writing of: (i) any action, including any proceeding before an administrative agency filed against LULAC in connection with this Agreement; and (ii) any claim against LULAC, the cost and expense of which LULAC may be entitled to be reimbursed by the CCCIC. Except as otherwise directed by the CCCIC, LULAC shall furnish immediately to the CCCIC copies of all pertinent papers received by LULAC with respect to such action or claim. SECTION 18. CHANGES AND AMENDMENTS (A) Except as specifically provided otherwise in this Agreement, any alterations, additions, or deletions to the terms of this Agreement shall be by amendment hereto in writing and executed by both parties to this Agreement. Modifications which do not change the essential scope and purpose of this Agreement may be approved on behalf of the CCCIC by the General Manager. (B) It is understood and agreed by the parties to this Agreement that performances under this Agreement must be rendered in accordance with the HOME Investment Partnership Act of 1990 (the "Act"), 42 U.S.C. 9912701 et. seq., the regulations promulgated under the Act, the assurances and certifications made to the CCCIC by LULAC, and the assurances and certifications made to the United States Department of Housing and Urban Development by the CCCIC with regard to the operation of the HOME Program. Based on these considerations, and in order to ensure the legal and effective performance of this Agreement by both parties, it is agreed by the parties that the performances under this Agreement are amended by the provisions of the HOME Program, and any amendments thereto and may further be amended in the following manner: The Department of Housing and Urban Development may from time to time during the term of this Agreement establish, interpret, or clarify performance require- ments mandated under this Agreement. The policy directives promulgated in the form of HOME Issuances shall have the effect of modifying the terms of this Agreement and shall be binding upon LULAC, as if written and included in this Agreement; provided, however, that said policy directives and any amendments shall not alter the terms of this Agreement so as to release the CCCIC of any obligation specified in Section 6 of this Agreement to reimburse costs incurred by LULAC prior to the effective date of the amendments or policy directives. (C) Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in federal law or regulations are automatically incorporated into this Agreement without written amendment and shall become effective on the date designated by the law or regulation. The CCCIC or LULAC may require written changes or amendments to this Agreement when any substantial alterations, additions, or deletions to the terms of this Agreement are required by changes in federal law or regulations. (D) LULAC has provided an estimated Project Budget and Construction Schedule based upon the proposed construction listed above, which budget and schedule will be at-tached hereto and made a part hereof for all purposes as Exhibit B. Ten days prior to award of any funds pursuant to this Agreement, LULAC will provide a finalized Budget and Project Implementation Schedule, which includes a schedule of costs of com- pletion, and a schedule of completion for the various aspects of construction of the Project which will be substituted for the then existing Exhibit B and which will become Exhibit B of this contract for all purposes. SECTION 19. SUSPENSION In the event LULAC fails to comply with any terms of this Agreement, the CCCIC may, in accordance with 24CFR 85.43 and upon written notification to LULAC, suspend this Agreement in whole or in part and withhold further payments to LULAC, and prohibit LULAC from incurring additional obligations of funds under this Agreement. SECTION 20. TERMINATION The CCCIC may terminate this Agreement, in whole or in part, in accordance with 24 CFR 85.43 and this Section 20. The CCCIC may terminate this Agreement for con- venience in accordance with 24 CFR 85.44. In the event LULAC materially fails as determined by the CCCIC to comply with any term of this Agreement, whether stated in a federal statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere. the CCCIC may take one or more of the following actions: 1. Temporary withhold cash payments pending correction of the deficiency by LULAC or take more severe enforcement action against LULAC. 2. Disallow all or part of the cost of the activity or action not in compliance. 3. Wholly or partly suspend or terminate the current award for the LULAC Project. 4. Withhold further HOME awards from LULAC. 5. Take other remedies that may be legally available. Additionally, this Agreement may be cancelled upon thirty-day notice of cancellation upon mutual agreement of the parties. SECTION 21. AUDIT (A) Unless otherwise directed by the CCCIC, LULAC shall arrange for the performance of an annual financial and compliance audit of funds received and performances rendered under this Agreement, subject of the following conditions and limitations: 1 LULAC shall have an audit made in accordance with 24 CFR 92.506, 24 CFR Part 44. or OMB Circular A-133 for any of its fiscal years included within the Agreement period specified in Section 2 of this Agreement in which LULAC receives more than $300,000 in federal financial assistance provided by a federal agency in the form of grants, agreements, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance or direct appropriations, but federal financial assistance does not include direct federal cash assistance to individuals. The term includes awards of federal financial assistance received directly from federal agencies, or indirectly through other units of state and local government. 2. At the option of LULAC, each audit required by this section may cover either LULAC's entire operations or each department, agency, or establishment of LULAC which received, expended or otherwise administered federal funds. 3. Notwithstanding Section 5(a)(4), Section 5(a)(5), and Section 6 of this Agreement, LULAC may utilize funds budgeted under this Agreement to pay for that portion of the cost of such audit services properly allocable to the activities funded by the CCCIC under this Agreement; provided, however, that the CCCIC shall not make payment for the cost of such audit services until the CCCIC has received such audit report from LULAC. 4. Unless otherwise specifically authorized by the CCCIC in writing, LULAC shall submit the report of such audit to the CCCIC within thirty (30) days atter completion of the audit, but no later than one (1) year atter the end of each federal fiscal period included within the period of this Agreement. Audits performed under subsection A of this Section 21 are subject to review and resolution by the CCCIC or its authorized representative. 5. As part of its audit, LULAC shall verify expenditures according to the Budget and Construction Schedule attached as Exhibit B. (B) Notwithstanding subsection A of this Section 21, the CCCIC reserves the right to conduct an annual financial and compliance audit of funds received and performances rendered under this Agreement. LULAC agrees to permit the CCCIC or its authorized representative to audit LULAC's records and to obtain any documents, materials, or information necessary to facilitate such audit. Should an audit not be required by subsection A of this Section 21, LULAC shall provide an annual audit to the CCCIC of funds received in performance of this Agreement. (C) LULAC understands and agrees that it shall be liable to CCCIC for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this Agreement. LULAC further understands and agrees that reimbursement to the CCCIC of such disallowed costs shall be paid by LULAC from funds which were not provided or otherwise made available to LULAC under this Agreement. (D) LULAC shall take all necessary actions to facilitate the performance of such audit or audits conducted pursuant to this Section 21 as the CCCIC may require of LULAC. (E) All approved HOME audit reports shall be made available for public inspection within 30 days after completion of the audit. SECTION 22. ENVIRONMENTAL CLEARANCE REQUIREMENTS (A) LULAC understands agrees that, by the execution of this Agreement, it shall assume the responsibilities for environmental review, decision making, and other actions in accordance with and to the extent specified in 24 CFR 92.352 and 24 CFR, Part 58. SECTION 23. LABOR STANDARDS All laborers and mechanics employed in the rehabilitation of a project assisted under this Agreement that contains 12 or more dwelling units shall be paid wages at rates as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. ~276a-5), and contracts involving their employment shall be subject to the applicable provisions of the Contract Work Hours and Safety Standards Act (40 U.S.C. ~~327 -333). Construction contractors and subcontractors must comply with regulations issued under these acts and with other federal laws and regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community Development Programs), as applicable. SECTION 24. SPECIAL CONDITIONS (A) Release of Funds. The CCCIC shall not release any funds for any costs incurred by LULAC under this Agreement until CCCIC has received certification from LULAC that its fiscal control and fund accounting procedures are adequate to assure the proper dis- bursal of and accounting for funds provided under this Agreement. The CCCIC shall specify the content and form of such certification. (B) Affordability. Funds provided under this Agreement must meet the affordability requirements of the HOME rules for a period of five (5) years. LULAC agrees to repay all HOME funds governed by this Agreement if the Project fails to comply or ceases to comply with the affordability requirements as set forth in this Agreement. The afford- ability requirements must continue to be met throughout the term of the Agreement and shall be binding upon the successors, assigns, and transferees of the Project and of LULAC as required by 24 CFR 92.254. (C) Housing Quality Standards. LULAC shall ensure that all parts of the Project assisted with funds provided under this Agreement shall meet the requirements of 24 CFR 92.251" (0) Affirmative Marketing. LULAC shall adopt and submit for the CCCIC's approval affirmative marketing procedures and requirements not later than 30 days after the date this Agreement is executed. The affirmative marketing procedures and requirements shall include, but need not be limited to, those specified in 24 CFR 92.351. The CCCIC will assess the efforts of the LULAC's during marketing of the units by use of compli- ance certification or personal monitoring visit to the Project at least annually. Where LULAC fails to follow the affirmative marketing requirements, corrective actions shall include extensive outreach efforts to appropriate contacts to achieve the occupancy goals or other sanctions the CCCIC may deem necessary. LULAC must provide the CCCIC with an annual assessment of the affirmative marketing program of the Project and its associated development. The assessment must include: 1" Method used to inform the public and potential homebuyers about federal fair housing laws and affirmative marketing policy. LULAC's advertising vacant units must include the equal housing opportunity logo or statement. Advertising media must include newspaper, radio, television, brochures, leaflets, or may involve simply a sign in a window. LULAC may wish to use community organizations, places of worship, employment centers, fair housing groups, housing counseling agencies, social service centers or medical service centers as resources for this outreach. 2. Records describing actions taken by the LULAC to affirmatively market units and records to assess the results of these actions. LULAC must maintain a file containing all marketing efforts (Le., copies of newspapers ads, memos of phone calls, copies of letters, etc.) to be available for inspection at least annually by the CCCIC. 3. LULAC shall solicit applications for vacant units from persons in the housing market who are least likely to apply for the rehabilitated housing without benefit of special outreach efforts. In general, persons who are not of the race/ethnicity of the residents of the neighborhood in which the rehabilitated building is location shall be considered those least likely to apply. 4. LULAC shall maintain a listing of all homebuyers residing in each unit through the end of the compliance period. (F) Reversion of Assets. Upon termination of this Agreement, all funds remaining on hand on the date of termination and all accounts receivable attributable to the use of funds received under this Agreement shall revert to the CCCIC. LULAC shall return these assets to the CCCIC within seven (7) business days after the date of termination. (G) Enforcement of Agreement. LULAC shall provide the CCCIC with a legallyenforce- able covenant, meeting the requirements set out in Exhibit A of this Agreement., to enforce the affordability requirements of subsection B of this Section 24. LULAC shall record the covenant in the real property records of the county where the Project is located and return the original document, duly certified as to recordation by the appropriate county official, to the CCCIC within two business days of the final exe-cution of this Agreement (H) Flood Insurance. Funds provided under this Agreement may not be used in connection with acquisition or rehabilitation of a development located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless the locality in which the site is located is participating in the National Flood Insurance Program. (I) Displacement, Relocation, and Acquisition. LULAC must ensure that it has taken all reasonable steps to minimize the displacement of persons (individuals, families, and business and nonprofit organizations) as a result of a project assisted with funds provided under this Agreement. LULAC must comply with the applicable provisions of 24 CFR 92.353. SECTION 25. INSURANCE (A) Liability Insurance. LULAC shall have in force throughout the term of this Agreement comprehensive general liability insurance coverage with a personal/bodily injury endorsement in the minimum amount of $500,000 per person/$1 ,000,000 per occurrence and $100,000 for property damage arising out of each occurrence. The comprehensive general liability shall include a Contractual Liability endorsement. The insurance policy shall name the City of Corpus Christi and the CCCIC as an additional insured. A certificate to that effect shall be provided to the City of Corpus Christi/CCCIC at least ten (10) days prior to start of construction. (8) Fire and Extended Coverage. LULAC shall have in force throughout the term of this Agreement fire and extended coverage insurance in an amount sufficient to cover the replacement cost of the Project. The insurance policy shall name the City of Corpus Christi and the CCCIC as loss payee using a standard loss payee clause. A certificate to that effect will be proVided to the City of Corpus Christi/CCCIC prior to the commencement of construction at the Project. (C) Notice to City of Corpus Christi/CCCIC. LULAC shall require its insurance policies to provide that the General Manager of the CCCIC shall be given thirty (30) days advance written notice by the insurer prior to cancellation, nonrenewal, or material change of the insurance policies required by this Section 25. The insurer shall be subject to approval by the City of Corpus Christi and the CCCIC. Failure to maintain such insurance will be cause for the CCCIC to take control of the Project and will cancel any claim that LULAC may have to the use of the Project or the Project funds. LULAC shall provide the City of Corpus Christi/CCCIC with certificates of insurance reflecting all the stated coverages and shall, upon request of the City of Corpus Christi or the CCCIC, promptly provide the City of Corpus Christi or the CCCIC with copies of all such insurance policies. (0) Right to Re-evaluate and Adjust Limits. The City Manager, General Manager, or their respective designees, shall retain the right to re-evaluate the insurance require- ments and adjust the coverage limits upon thirty (30) days written notice. Insurance coverage limits shall be adjusted no more frequently than once a year. SECTION 26. ORAL AND WRITTEN AGREEMENTS (A) All oral and written agreements between the parties to this Agreement relating to the subject matter of this agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement. (B) The attachments enumerated and denominated below are made a part of this Agreement and constitute promised performances by LULAC in accordance with this Agreement: 1. Exhibit A, Covenant of Affordability 2. Exhibit B, Budget and Construction Schedule 3. Exhibit C, Other Applicable Laws and Regulations 4. Exhibit 0, Certifications SECTION 27. JURISDICTION AND VENUE The laws of the State of Texas shall apply to any dispute arising under this Agreement. For purposes of litigation pursuant to this Agreement, venue shall lie in Corpus Christi, Nueces County, Texas, where this Agreement was entered into and shall be performed. SECTION 28. COMPLIANCE WITH FEDERAL, S1 A TE AND LOCAL LAWS LULAC shall comply with all federal, State, and local laws, statutes, ordinances, rules, and regulations and with the orders and decrees of any court, administrative body, or tribunal related to the activities and performances of LULAC under this Agreement. Upon request by the CCCIC, LULAC shall furnish satisfactory proof of its compliance with this section of the Agreement. SECTION 29. REMEDIES It is expressly understood and agreed by the parties to this Agreement that any right or remedy provided for in this Section 28 or in any other provision of this Agreement will not act to preclude the exercise of any other right or remedy provided under this Agreement or under any provision of law, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other rights or remedies. Failure to exercise any right or remedy under this Agreement does not constitute a waiver of the right to exercise that or any other right or remedy at any time. EXECUTION PAGES FOllOW Executed in duplicate originals this ~ck day of -) (I 1~~ \ ,2006. ATTEST Corpus Christi Community Improvement Corporation t1u tl~~~ Rex Kinnison President Armando Chapa Secretary ACKNOWLEDGMENTS STATE OF TEXAS ~ ~ KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES ~ This instrument was acknowledged before me on the c9vJday of -:t...e-h~, 2006, by Rex Kinnison, President of the Corpus Christi Community Improvement Co~o- ration. on behalf of the corporation'_J, \.~' - . ,.,....~..'ii.., TAMERA L RILEY !'."f:J;;;~C:\ Notary Public \* ~ .J' J STATE OF TEXAS '\~~/ My Comm. Exp. 05-26-2008 ~ ...."tI...... ~ ..... j/'J ' i ;11 (' ~L~ L. __ AUt ",*LU.. n G04JNC'l._~ -..-.-.. - --.......-.~. ...........&. ~r~AL"lt2.. RECIPIENT: TX LULAC VILLAGE HOUSING, L. P. by: TX LULAC Village Development, L. L. C" a Texas limited liability company and the sole general partner of TX LULAC Village Housing, L. P. by: LULAC Village Park Trust, a nonprofit charitable trust organized under the laws of Texas and the sole member of TX LULAC Village Development, L. L. C. 1, ; / /b j/'/, I ./ n ~w-~'CL ,':' -f~~'- .-~--- .. f' 1_ __.__- Henry Gorham/ President and Trustee ACKNOWLEDGMENTS STATE OF TEXAS S S COUNTY OF NUECES S KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me on the \ ..,+ day of Ff. i\ R..lAt\t-'t 2006, by Henry Gorham as President and Trustee of LULAC Village Park Trust, a nonprofit charitable trust, on behalf of the trust. ,.~.~-----. '-~.""-;'''''"'---'''';':''-.''-';''-: ~*.'.'~"-1.' I ",",", . r I A 'oe: 'i=R V 'ELL c:, ..~~~'{;.':;:.'.:.':H~:~,.,:~..... ~/~)\"r, Y~.'. ".). .,- " '. .\... r... ,,"':.:......lL.. 'Jl)11< ~tal(: c Texa ~ ~ * ~ ~_ ' ." . '--)\1 :_,)mr,w ~~on E^~:I~es ~ \~;.. .....". FBRUAF/2; 'DO' , It """;;~,H~l'~"- '& ..'" , f ~.__'______'7":-'--''""''''''''_--''':~ ,~~-~ \'\\ \'>l,', '-- \~)~~ W ~\jcz..- NOTARY PUBLIC, State of Texas EXHIBIT A Page 1 of 2 COVENANT TO BIND PROPERTY FOR PERIOD OF AFFORDABILlTY STATE OF TEXAS s s COUNTY OF NUECES s KNOW ALL BY THESE PRESENTS: Pursuant to an agreement entered into between the Corpus Christi Community Improvement Corporati<;m ("CCCIC") and TX LULAC Village Housing, L. P. ("LULAC"), executed February , 2006, which is incorporated in this instrument by reference ("Agreement"), LULAC accepted federal funds, in conjunction with the United States Department of Housing and Urban Development's HOME Program administered by the CCCIC, for rehabilitation of the following property: Lots 3, 4, and 5 of Lyle's Subdivision of Lots 1 and 2 of Section E of the Paisley Subdivision of the Hoffman tract, of the City of Corpus Christi, Nueces County, Texas, as shown by the map or plat of record in Volume 1, page 58, of the Map Records of Nueces County, Texas, and com- monly known by its street address of 1417 Horne Road, located in Corpus Christi, Nueces County, Texas (hereinafter referred to as the "Property"). Pursuant to the terms, conditions, and covenants contained within the Agree- ment, LULAC, as owner of the Property and in consideration of receiving the funds, agrees to bind the Property with the affordability requirements specified in Title 24, Part 92.252, of the United States Code of Federal Regulations, for a period of not less than five (5) years from the date of completion of the rehabilitation project on the Property, such date of completion presently unknown but anticipated to be June 30, 2006. This instrument constitutes a covenant running with the land and binds all suc- cessors, assigns, and transferees of the Property that is the subject of this instrument. Executed this the __ day of ~- /.(l ~,('/ 2006 "., . TX LULAC VILLAGE HOUSING, L. P. by: TX LULAC Village Development, L. L. C., a Texas limited liability company and the sole general partner of TX LULAC Village Housing, L. P. EXHIBIT A Page 2 of 2 by: LULAC Village Park Trust, a nonprofit charitable trust organized under the laws of Texas and the sole member of TX LULAC Village Development, L. L. C. / ./ -/:://.. '.; / .' "_ /f - --L-- ,.C", ," Signature j' - ~ ~j V'/:// ...: _:i~ .: . ). Title ,i / - /,.( // / '" . . ./ Date ~.{ ACKNOWLEDGMENT STATE OF TEXAS s s COUNTY OF NUECES s Subscribed to and sworn before me this \S -+ day ofF C:o \) ~\l..Q ~) ,2006, bY'~\'<:,~ \) '-' ",' "l~ }'- , of LULAC Village Park Trust, the~sole member of TX LULA Village Development, L.L.C., the sole general partner of TX LULAC Village Housing, L.P , on behalf of the partnership. "Il.'~--'''''~'l.~__~~ . ,<~~:~u~>.. MJNA KOSTE'1 WELLS ~. f":~;;.~'.... \nt-'lr.! ,ouDi'c. St8\e of Te.15 ~\.~./' My CommlSSlor Expires ) ,,---";;;:~~'c;,~~/ :'~BRUARV :1, 20C' . L.':"':::'~'~:~_~#' _:.-." """'0<..---'" "_'~C-' ,\ '-'l',-_,_ \ '. 'tr\ \.l-_____ \J'--~"-'"'~_/ NOTARY PUBLIC, State of Texas EXHIBIT B HOME Program LULAC Village Park Apartments Preliminarv Budaet: --------T---- - ---. ActiVity-+ Scope of Work Plumbing [ Install gas water heaters in lieu of electric water I heaters ~ctrical - Install site Ii htin ,tele hone and TV cable re-wire Other Site I Install handicap door openers, rehabilitate parking 1m rovements and ma extend to other t e of im rovements Professional Architect, Engineer or General Contractor I ~~:, P!ojec~c~sL==-=~~----- ___====- I - ! Total HOME Funds Available , Preliminary Schedule: Bud et $134,508 $75,070 $16,940 $32,841 $259,359 $259,359 December 2005 January 2006 June 2006 f ( EXHIBIT C Page 1 of 3 OTHER FEDERAL REQUIREMENTS CHDO shall comply with all federal, state, and local laws and regulations applicable to the activities and performances rendered by CHDO under this agreement including but not limited to the laws. and the regulations specified in Section I through VI of this Exhibit D. CIVIL RIGHTS The Fair Housing Act (42 U.S.c. 3601-20) and implementing regulations at 24 CFR Part 1 OO~ Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p. 652 and 3 CFR. 1980 Comp., p. 307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR. Part 107~ and title VI of the Civil Rights Act of 1964 (42 V.S.C. 2000d) (Nondiscrimination in Federally Assisted Programs) and implementing regulations issued at 24 CFR, Part 1: Executive Order 11063. as amended by Executive Order 12259, and 24 CFR Part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063". The failure or refusal of ClIDO to comply with the requirements of Executive Order 11063 or 24 CFR, Part 107 shall be a proper basis for the imposition of sanctions specified in 24 CFR 107.60; The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 V.S.c. 6101-07) and implementing regulations at 24 CFR, Part 146, and the prohibitions against discrimination against handicapped individuals under section 504 of the Rehabilitation Act of 1973 (29 V.S.c. 794) and implementing regulations at 24 CFR, Part 8~ The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., p. 339) (Equal Employment Opportunity) and the implementing regulations issued at 41 CFR. Chapter 60. The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise), and 12138 (concerning Women's Business Enterprise). Consistent with RUD's responsibilities under these Orders. Each applicant must make efforts to encourage the use of minority and women's business enterprises in connection with HOME funded activities. The CHDO must prescribe procedures acceptable to the CCCIC to establish activities to ensure the inclusion, to the maximum extent possible. of minorities and women, and entities owned by minorities and women. The ClIDO will be required to identify contracts which have been bid by minority owned, women owned, and lor small disadvantaged businesses. The Age Discrimination Act of 1975 (42 U.S.c. 996101 et seq.); Section 504 of the Rehabilitation Act of 1973 (29 U.S.c., Section 794) and "Nondiscrimination Based on Handicap in Federally-Assisted Programs and Activities of the Department of Housing and Urban Development", 24 CFR, Part 8. By signing this agreement. CHDO understands and agrees that the activities funded herein shall be operated in accordance with 24 CFR, Part 8; and the Architectural Barriers Act of 1968 (42 U.S.c., LOA\1460.001 17 EXHIBIT C Page 2 of 3 . J. \ Section .../.151 et. seq.). including the use of a telecommunications device for deaf persons (TDDs) or equally effective communication system. II. LEAD-BASED PAlNT Title IV of the Lead-Based Paint Poisoning Prevention Act (42 V.S.c. Sec. 4831). III. ENVIRONMENTAL STA.NDARDS Environmental Review Procedures for Title I Community' Development Block Grant Programs, 24 CFR Part 58, as amended in 47 Fed. Reg. 15750 (April 12, 1982); National Environmental Policy Act of 1969 (42 V.S.C. Sec. 4321 et. seq.) and 40 CFR Parts 1500-1508; The National Historic Preservation Act of 1966 (16 D.S.C. Sec. 470 et. seq.) as amended; particularly Section 106 (16 U.S.c. Sec. 470f); Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971(36 Fed. Reg. 8921), particularly Section 2(c); The Reservoir Salvage Act of 1960 (16 V.S.C. Sec. 469 et seq.), particularly Section 3 (16 U.S.c. Sec. 469a-I), as amended by the archeological and Historic Preservation Act of 1974; Flood Disaster Protection Act of 1973. (42 V.S.C. Sec. 4001 et. seq.) as amended, particularly Sections 102(a) and 202(a) (42 V.S.c. Sec. 4012a (a) and Sec. 4106(a)); Executive Order ] 1988. Floodplain Management, May 24, 1977 (42 Fed. Reg. 26951), particularly Section 2(a); Executive Order 11990. Protection of Wetlands, May 24, 1977 (42 Fed. Reg. 26961), particularly Sections 2 and 5; The Coastal Zone Management Aet of 1972. (16 V.S.C. Sec. 1451 et seq.) as amended, particularly Section 307(c) an (d) (16 V.S.c. Sec. 1456(c) and (d)); The Safe Drinking Water Act of 1974, (42 V.S.c. Sec. 201. 300(t) et'seq.), and (21 U.S.c. Sec. 349) as amended. particularly Section 1424 (e) (42 V.S.C. Sec. 300h-303(e)); The Endangered Species Act of 1973, (16 U.S.c. Sec. 1531 et seq.) as amended. particularly Section 7 (16 U.S.c. Sec. 1536); The Wild and Scenic Rivers Act of 1968, (16 V.S.c. Sec. 1271 et seq.) as amended, particularly Section 7(b) and (c)(16 U.S.c. Sec. 1278(b) and (e)); The Clean Air Act (41 U.S.c. Sec. 7401 et seq.) as amended. particularly Section 176(c) and LOA\1460.001 18 EXHIBIT C Page 3 of 3 I \ rd) (42 U S.c. Sec. 7506(cJ and Id)): Farmlands Protection and Policy Act of 1981. (7 U.S.c. Sec. 4201 et seq.) 24 CFR Part 5]. Environmental Criteria and Standards. IV. ACQUISITIONIRELOCA TION The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.c., Sec. 4601 et. seq.), 49 CFR Part 24, and 24 eFR Section 570.496a (55 Fed. Reg. 29309 (July 18, 1990)). LOA \ 1460.00 1 19 EXHIBIT D Certification Regarding Lobbying for Agreements, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of its knowledge and belief, that: 1. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a member of congress, an officer or employee of congress. or an employee of a member of congress in connection with the awarding of any federal agreement, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, or modification of any federal agreement grant, loan, or cooperative agreement. 2. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of congress, an officer or employee of congress, or an employee of a member of congress III connection WIth this federal agreement. grant. loan, or cooperative agreement, the undersigned shall complete and submit standard form -LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including sub agreements, subgrants, and agreements under grants, loans, and cooperative agreements) and that CHDOs shall certify and disclose accordingly. ThIS certification IS material representation of fact 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 31 U. S.C. Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100.000 for each such failure. rx LULAC VILLAGE HOUSING, L.P , .,,: 7.1f;t.... ~/ .~~. .i',',f: ;;r-- j-;Y r<,,"'-t:r-""'." - ~ ./ P & /.A..L~.c A . .I' ...-- Date