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HomeMy WebLinkAboutC2005-726 - 10/18/2005 - Approved FY05 HOME FUNDING AGREEMENT CLIFF MAUS VILLAGE APARTMENTS 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 Com- munity Improvement Corporation, a non-profit corporation organized under the laws of the State of Texas ("CCCIC"), and the Cliff Maus Village Trust, a charitable trust orga- nized under the laws of the State of Texas ("Trust"). (B) 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 accom- plishment of the tasks described in this Agreement. SECTION 2. AGREEMENT PERIOD This agreement shall commence on the date of execution by the CCCIC and shall terminate on February 28, 2008, unless as otherwise specifically provided by the terms of this Agreement. SECTION 3. GRANT FUNDS (A) The CCCIC agrees to grant the Trust $114,000 of federal HOME funds subject to the conditions in this Agreement. (B) The Trust 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 then replace the sample Exhibit A provided with this Agreement, the text of the executed Covenant of Affordability is then, by agreement of the parties, incor- porated in this document by reference, and the new Exhibit A will be recorded in the offical deed records of Nueces County. The binding terms of the recorded Covenant of Affordability will be released upon the Trust's completion of the terms and provisions contained in this Agreement. SECTION 4. TRUST'S PERFORMANCE (A) The grant proceeds shall be used by the Trust to rehabilitate units by replacing the 'Nate. I.eaters, installing site lightil'9 ana other h.rd wiring.,.arl{j by if:lstalliAg ace~&ibilitv s.er )A/d~ ~Vl'"'r!..-t..^ 1.. 2005-726 1 0/18/05 M2005-356 Cliff Maus Village Apartments ft."t~l'e! and other pre-approved improvements loca~ed on r~al property at 1458 West ~ POint Road, Corpus Chnstl, Nueces County, Texas (ProJect")., 1..\ 1C&ST Suf>Pt-lErvttt:'AjI Ur \ tilYt) .)..~J Lo. }.. v (B) The Trust 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 which is attached to this Agreement as Exhibit B and which is incorporated in this Agreement by reference ("Budget and Construction Schedule"). (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, entitled "Other Federal Requirements," which is attached to this Agreement and which exhibit's text is incorporated in this Agreement by reference. (E) The Trust agrees to acknowledge the sponsorship of the Corpus Christi Community Improvement Corporation at any event promoting the project or any other project spon- sor. (F) The Trust shall perform all activities in accordance with the terms of the as- surances, certifications, and all other statements made by the Trust in its application for the Project funded under this Agreement; and with all other terms, provisions, and re- quirements 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 the Trust during the Agreement period for performances rendered under this Agreement by the Trust, 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 the Trust 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 the Trust under this Agreement ~C) The CCCIC shall not be liable to grant the Trust money for any costs incurred by the Trust 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. (D) The CCCIC shall not be liable to grant the Trust money for any costs incurred by the Trust or any performances rendered by the Trust which are not strictly in accor- dance with the terms of this Agreement. (E) The CCCIC shall not be liable to grant the Trust money for costs incurred or per- formances rendered by the Trust 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 require- ments of 24 CFR 92.502. The Trust 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 re- sulting 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 the Trust's full and satisfactory performance of its obli- gations under this Agreement. The CCCIC reserves the right to recapture unexpended funds provided under this Agreement in the event the CCCIC determines that the Trust will be unable to expend funds within the prescribed time as determined by representa- tives of the CCCIC. SECTION 7. ADMINISTRATIVE REQUIREMENTS, COSTS PRINCIPLES, AND PROGRAM INCOME (A) The Trust must comply with federal regulations including, but not limited to, appli- cable regulations under OMB Circular No. A-122 and the following requirements of 24 CFR part 84: ~~ 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) The Trust shall maintain records of the receipt, accrual, and disposition of all Proj- ect and program income funds in the same manner as required for in Section 7.A. above for all funds provided under this Agreement. The Trust 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 reinvested by the Trust 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) The Trust must establish and maintain those records listed under 24 CFR 92.508 and other records as may be determined by CCCIC. (B) The Trust 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 belong- ing to or in use by the Trust pertaining to this Agreement. Such rights to access shall continue as long as the records are retained by the Trust. The Trust agrees to maintain such records in an accessible location. (C) All records pertinent to this Agreement shall be retained by the Trust 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. (D) The Trust shall include the substance of this Section 8 in all subcontracts. (E) The Trust must provide citizens, public agencies, and other interested parties with reasonable access to this Agreement and other documents and records that directly pertain to this Agreement, consistent with the Texas Public Information Act, Texas Government Code, Chapter 552. SECTION 9. REPORTING REQUIREMENTS (A) The Trust shall submit to the CCCIC such reports on the operation and perfor- mance of this Agreement as may be required by the CCCIC including, but not limited to, the reports specified in this Section 9. The Trust shall provide the CCCIC with all re- ports necessary for the CCCIC's compliance with 24 CFR 92.509 and 24 CFR Part 92, Subpart L. (B) In addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood and agreed by the parties hereto that if the Trust 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 the Trust, 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 the Trust. (C) Acknowledgment of Funding Source. The Trust shall give credit to the CCCIC as the Project funding source in all presentations, written documents, publicity and adver- tisements 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. The Trust shall attend a precon- struction meeting prior to the first construction draw. After each monitoring visit, the CCCIC shall provide the Trust with a written report of the monitor's findings. If the moni- toring reports note deficiencies in the Trust's performances, under the terms of this Agreement, the monitoring report will include requirements for the timely correction of the deficiencies by the Trust. Failure by the Trust to take the action(s) specified in the monitoring report may be cause for suspension or termination of this Agreement, as provided in Sections 18 and 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 the Trust as an independent contractor, and that the Trust, 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 as- serted by any third party occurring or in any way incident to, arising out of, or in connec- tion with the services to be performed by the Trust under this Agreement. SECTION 12. INDEMNIFICATION (A) The Trust 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, dam- ages, losses, costs, liabilities, expenses, and judgments recovered from or asserted against City of Corpus Christi or the CCCIC on ac- count 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 the Trust or any of its agents, servants, employees, contractors, patrons, guests, licensees, or in- vitees entering upon the Project being improved pursuant to this Agreement or when any such injury or damage is the result, proxi- mate or remote, of the violation by the Trust or any of its agents, ser- vants, 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 acqui- sition, rehabilitation, modification, or construction at the Project or out of the use or occupancy of the Project by the Trust, its agents, servants, employees, contractors, patrons, guests, licensees, or in- vitees 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 rehabilitation, modification, or construction of the Project, administration of the con- struction contracts by the Trust, 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 the Trust, failure of the rehabilitation, modification, or construction of the Project to work as designed, failure of any contractor or subcontrac- tor or manufacturer to honor its warranties, or failure of the Trust to maintain the Project. (B) These terms of indemnifications shall be effective upon the date of final execution of this Aareement and whether the iniury or damaae may result from the sole nealiaence. contributory nealiaence. or concurrent nealiaence of Indemnities: but not if the damaae or iniury may result from the aross nealiaence or willful misconduct of Indem- nitees. (C) The Trust covenants and agrees that, in case of the City of Corpus Christi or the CCCIC shall be made a party to any litigation against the Trust or in any litigation commenced by any party relating to this Agreement and the construction of the Project contemplated under this Agreement, the Trust 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. (D) The Trust, for and in consideration of the CCCIC's participation in this Agreement, hereby agrees and covenants that the Trust 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, the Trust may not subcontract for performances described in this Agreement without obtaining CCCIC's prior written approval. The Trust shall only subcontract for per- formances described in this Agreement to which the federal labor standards require- ment apply after the Trust has submitted a Subcontractor Eligibility form, as specified by the CCCIC, for each such proposed subcontract, and the Trust has obtained the CCCIC's prior written approval, based on the information submitted, of the Trust's intent to enter into such proposed subcontract. The Trust, in subcontracting for any perfor- mances described in this Agreement, expressly understands that in entering into such subcontracts, the CCCIC is not in any manner liable to the Trust's subcontractor(s). (8) In no event shall any provision of this Section 13, specifically the requirements that the Trust obtain the CCCIC's prior written approval of a subcontractor's eligibility, be construed as relieving the Trust 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 the Trust. The CCCIC's approval of a subcontractor's eligibility under this Section 13 does not con- stitute adoption, ratification, or acceptance of the Trust'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 the Trust's full compliance with the terms of this Agreement. (C) The Trust shall comply with all applicable federal, state, and local laws, regulations, and ordinances when making procurements under this Agreement. (0) The Trust shall comply with all applicable federal, state, and local laws, regulations, and ordinances for the term of this Agreement. SECTION 14. CONFLICT OF INTEREST The Trust shall ensure that no person who (1) is an employee, agent, consultant, officer or elected or appointed official of the Trust 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 inter- est 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. The Trust shall ensure compliance with applicable provisions under 24 CFR 92.356 and OM8 Circular A-11 0 in the procurement of property and services. SECTION 15. NONDISCRIMINATION (A) The Trust 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 ac- tivity funded in whole or in part with funds provided under this Agreement. (8) In addition, funds provided under this Agreement must be made available in accor- dance 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 as- sisted with HOME funds provided under this Agreement be given to low- income persons residing with the general local government area or metro- politan 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, in- cluding, but not limited to, individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabili- tation, 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) The Trust assures and guarantees that the Trust possesses the legal authority to enter into this Agreement, receive funds authorized by this Agreement, and to perform the services the Trust has obligated itself to perform under this Agreement. (B) The person or persons signing and executing this Agreement on behalf of the Trust, or representing themselves as signing and executing this Agreement on behalf of the Trust, do hereby warrant and guarantee that he, she, or they have been duly authorized by the Trust to execute this Agreement on behalf of the Trust and to validly and legally bind the Trust to all terms, performances, and provisions in this Agreement. (C) The Trust 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 the Trust is debarred, sus- pended, proposed for debarment, or is determined to be ineligible from participating in the HOME Program SECTION 17. LITIGATION AND CLAIMS The Trust shall give the CCCIC immediate notice in writing of: (i) any action, including any proceeding before an administrative agency filed against the Trust in connection with this Agreement; and (ii) any claim against the Trust, the cost and expense of which the Trust may be entitled to be reimbursed by the CCCIC. Except as otherwise directed by the CCCIC, the Trust shall furnish immediately to the CCCIC copies of all pertinent papers received by the Trust with respect to such action or claim. SECTION 18. CHANGES AND AMENDMENTS (A) Except as specifically provided otherwise in this Agreement, any alterations, addi- tions, or deletions to the terms of this Agreement shall be by amendment to this docu- ment 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 be- half 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 pro- mulgated under the Act the assurances and certifications made to the CCCIC by the Trust, 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 the Trust, 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 the Trust 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 desig- nated by the law or regulation. The CCCIC or the Trust 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) The Trust has provided an estimated Project Budget and Construction Schedule based upon the proposed construction listed above, which budget and schedule will be attached to this Agreement and made a part of this Agreement for all purposes as Exhibit B. Ten days prior to award of any funds pursuant to this Agreement, the Trust will provide a finalized Budget and Project Implementation Schedule, which includes a schedule of costs of completion, and a schedule of completion for the various aspects of construction of the Project which will be substituted for the then existing Exhibit Band which will become Exhibit B of this Agreement for all purposes. SECTION 19. SUSPENSION In the event the Trust fails to comply with any terms of this Agreement, the CCCIC may, in accordance with 24CFR 85.43 and upon written notification to the Trust, suspend this Agreement in whole or in part and withhold further payments to the Trust, and prohibit the Trust 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 the Trust 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 the Trust or take more severe enforcement action against the Trust. 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 Trust's Project. 4, Withhold further HOME awards from the Trust. 5, Take other remedies that may be legally available. Additionally, this Agreement may be cancelled upon a thirty-day notice of cancellation upon mutual agreement of the parties, prior to the receipt of any portion of the funds to the Trust. SECTION 21. AUDIT (A) Unless otherwise directed by the CCCIC, the Trust shall arrange for the perfor- mance of an annual financial and compliance audit of funds received and performances rendered under this Agreement, subject of the following conditions and limitations: 1 The Trust shall have an audit made in accordance with 24 CFR 92.506, 24 CFR Part 44. or OMS Circular A-133 for any of its fiscal years included within the Agreement period specified in Section 2 of this Agreement in which the Trust receives more than $300,000 in federal financial assistance pro- vided 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 in- directly through other units of state and local government. 2 At the option of the Trust, each audit required by this section may cover either the Trust's entire operations or each department, agency, or establishment of the Trust which received, expended or otherwise administered federal funds. 3 Notwithstanding Section 5(a)(4), Section 5(a)(5), and Section 6 of this Agree- ment, the Trust may utilize funds budgeted under this Agreement to pay for that portion of the cost of such audit services properly allocable to the activi- ties 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 the Trust. 4 Unless otherwise specifically authorized by the CCCIC in writing, the Trust shall submit the report of such audit to the CCCIC within thirty (30) days after completion of the audit, but no later than one (1) year after 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, the Trust shall verify expenditures according to the Budget and Construction Schedule attached and incorporated 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. The Trust agrees to permit the CCCIC or its authorized representative to audit the Trust's records and to obtain any documents, materials, or information necessary to facilitate such audit. Should an audit not be required by sub- section A of this Section 21, the Trust shall provide an annual audit to the CCCIC of funds received in performance of this Agreement. (C) The Trust 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. The Trust further understands and agrees that reimbursement to the CCCIC of such disallowed costs shall be paid by the Trust from funds which were not provided or otherwise made available to the Trust under this Agreement. (D) The Trust 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 the Trust. (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) The Trust understands agrees that, by the execution of this Agreement, it shall as- sume 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. 9276a-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. 99327 -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 the Trust under this Agreement until CCCIC has received certification from the Trust that its fiscal control and fund accounting procedures are adequate to assure the proper disbursal of and accounting for funds provided under this Agreement. The CCCIC shall specify the content and form of such certification. (8) Affordability Requirements. Funds provided under this Agreement must meet the affordability requirements of the federal HOME rules for a period of five (5) years from the date of completion of the rehabilitation, such date of completion presently unknown but anticipated to be no later than February 28, 2008. Furthermore, at least 20% of the units rehabilitated with funds received under this Agreement must meet federal Section 8 Low Rent limits established by federal law. The Trust agrees to repay all HOME funds governed by this Agreement if the Project fails to comply or ceases to comply with the affordability requirements set forth in this Agreement and by federal law. 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 as re- quired by 24 CFR 92.254. (C) Housing Quality Standards. The Trust shall ensure that all parts of the Project as- sisted with funds provided under this Agreement shall meet the requirements of 24 CFR 92.251. (0) Affirmative Marketing. The Trust shall adopt and submit for the CCCIC's approval affirmative marketing procedures and requirements not later than 30 days atter 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 the Trust's during marketing of the units by use of compli- ance certification or personal monitoring visit to the Project at least annually. Where the Trust fails to follow the affirmative marketing requirements, corrective actions shall in- clude extensive outreach efforts to appropriate contacts to achieve the occupancy goals or other sanctions the CCCIC may deem necessary. The Trust 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. The Trust's advertising vacant units must include the equal housing opportunity logo or statement. Adver- tising media must include newspaper, radio, television, brochures, leaflets, or may involve simply a sign in a window. The Trust may wish to use commu- nity organizations, places of worship, employment centers, fair housing groups, housing counseling agencies, social service centers or medical ser- vice centers as resources for this outreach. 2 Records describing actions taken by the the Trust to affirmatively market units and records to assess the results of these actions. The Trust 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 The Trust 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 rehabili- tated building is location shall be considered those least likely to apply. 4 The Trust 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. The Trust shall return these assets to the CCCIC within seven (7) business days after the date of termination. (G) Enforcement of Agreement. The Trust shall provide the CCCIC with a legally en- forceable Covenant of Affordability, meeting the requirements set out in the sample Exhibit A of this Agreement., in order to enforce the affordability requirements of sub- section B of this Section 24. The Trust shall record the Covenant of Affordability 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 execution of this Agreement. (H) Flood Insurance. Funds provided under this Agreement may not be used in con- nection 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. The Trust 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 pro- vided under this Agreement. The Trust must comply with the applicable provisions of 24 CFR 92.353. SECTION 25. INSURANCE (A) Liability Insurance. The Trust 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. (B) Fire and Extended Coverage. The Trust 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 payees using a standard loss payee clause. A certificate to that effect will be provided to the City of Corpus Christi/CCCIC prior to the com- mencement of construction on the Project. (C) Notice to City of Corpus Christi and CCCIC. The Trust 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, non renewal, 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 the Trust may have to the use of the Project or the Project funds. The Trust 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, and their respective designees, retain the right to re-evaluate the insurance requirements and adjust the coverage limits, up or down, upon thirty (30) days written notice to the Trust. Insurance coverage limits shall be adjusted no more frequently than once per 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 the Trust 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, STATE AND LOCAL LAWS The Trust 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 the Trust under this Agreement. Upon request by the CCCIC, the Trust 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 0 day of ,2006. ATTEST ~ /J .' /0 Armando Chapa Secretary Corpus Christi Community Improvement Corporation ~ ( Ju.t (. ~tY>--' ex Kinnison President ACKNOWLEDGMENTS STATE OF TEXAS S S COUNTY OF NUECES S KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me on the"'} I \jday of' ....t..-h--LA,U;..L' , 2006, by Rex Kinnison, President of the Corpus Christi Community Improvement Cor o- ration, on behalf of the corporation. ~(;) "tAJJ, I LL~ NOTARY PUBLIC, State of Texa . ~ ~ i;~?J~~;-;~'. TAMERA l RilEY > H*;';, Notary Public \~~.._.._~/ ::.TATE OF TEXAS '"'~e!:....,''' My Comm. Expo 05.26.2008 I> '\ l' ..', J I ' Lt 1\' ) )~ i . __~___~ AU i !''lVi\! U. ~y t'''-,\!JI'fCll, ILl/J//.;,,' f.L -.j~~ ...."......"....~ SEClflAlty-- ~ iV<..... CLIFF MAUS VILLAGE TRUST /~ ..l "I- J~tl. war~~l//~- efIairman z/;!-' /~k , Date ACKNOWLEDGMENTS STATE OF TEXAS ~ ~ COUNTY OF NUECES ~ KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me on the ! 'i tv-. day of tc tY~ '" L- -l , 2006, by John S. Warren, Chairman of Cliff Maus Village Trust, a nonprofit charita~e trust, on behalf of the trust. .r."~~~ ':';".~~"~..~.;o..,."",,,:,;,.. ---....;-.;~-l.. ~ .'",\\~l~"f'(" i . t', :.: 'Fr- "l'~"" . ."-'-~, I <..;N;....U.'t ". '<~....'I\." ~ .,..,TFi.WE..' LS' ~ ..... j"'*,',:-, ".....e .0" '_ ....., , ~ -. ' ~ ' ," '. Ut. .c:l,~...' -r i;';"-""'( = . + .., ..." . '", -'.~ fI \ ",:, ,.:' My Go'l1" iSSIOr. t>piru I '. <'<~'OF'~';:;' ,';:BRUrW;~ '>{{: ~ ~_T "":'::::::--..>",...~~:'5~~''''''-;irO.~ ~',o.,,~,~~:,....... ~ ( l '. r c _ ~~0~~~' ~~~'''\.. ~ NOTARY PUBLIC, State of Texas COVENANT TO BIND PROPERTY FOR PERIOD OF AFFORDABILlTY STATE OF TEXAS ~ ~ KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES ~ Pursuant to an agreement entered into between the Corpus Christi Community Improvement Corporation ("CCCIC") and the Cliff Maus Village Trust ("Trust"), executed on February _,2006, which is incorporated in this instrument by reference ("Agree- ment") , the Trust accepted federal funds, in conjunction with the United States Depart- ment of Housing and Urban Development's Home Investment Partnership Program ("HOME Program") administered by the CCCIC. for rehabilitation of the following property Lot 1, Cliff Maus Village, of the City of Corpus Christi, Nueces County, Texas, as shown by the map or plat on record in the Map Records of Nueces County, Texas, and which is com- monly known by its street address of 1458 West Point 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, as owner of the Property and in consideration of receiving the funds, the Trust agrees to bind the Property with the affordability requirements specified in the Agree- ment and 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 no later than February 28, 2008. Furthermore, at least 20% of the units rehabili- tated with the funds received under the Agreement must meet the federal Section 8 Low Rents established under federal law This instrument constitutes a covenant running with the land and binds all successors, assigns, and transferees of the Property, such Property being subject to this instrument. EXHIBIT A Page 1 of 2 CLIFF MAUS VILLAGE TRUST John S. Warren, Chairman Date: STATE OF TEXAS ~ ~ COUNTY OF NUECES ~ Subscribed to and sworn before me this _ day of , 2006, by John S. Warren, Chairman of the Cliff Maus Village Trust, a Texas nonprofit charitable trust, on behalf of the trust. Notary Public, State of Texas AFTER RECORDING RETURN TO: A TTN Administrator, Community Planning Division c/o Corpus Christi Community Improvement Corporation P. O. Box 9277 Corpus Christi, Texas 78469-9277 EXHIBIT A Page 2 of 2 Source of Funds City of CorpJs Christi Cliff Maus Replacenent Fund .Hard Costs New PVC Sewer Ploe Paving Repair Excavation. Backfill Compaction Soft Costs Storage And Temporary Facilities Permit and Inspections r otal Cliff Maus Village Sewer Replacement Prellimlnary Budget Funding Totals 81,195.00 4,830.00 70,953.00 2.30000 575.00 EXHIBIT B Page 1 of 2 114,000.00 45,853.00 159,853.00 156,978.00 2.875.00 159.853.00 CLIFf MALiS VILLAGE TRUST CDBG AND HOME PROGRAM FUNDS GRANT PRE! ,IMINARY r01\STRUCTIO"J SCIIEDULl:: Scpkmher 11 2110:' ~Iome Fund A warded :.-Io\:mbcr I", 2(1(J5 SolIcItation for Bids November 29, 20()5 Award ('ontr<lct December L 2005 Contractor Start Excavation Jalluary 3, 2006 20ryo February 3. 2006 40%, March 3.200$ jp 60% Apn i ), 20M~ 80% Mav 3,200710 . . 100% Project complete EXHIBIT B Page 2 of 2 EXHIBIT C OTHER FEDERAL REQUIREMENTS Cliff Maus Village Trust shall comply with all federal, state, and local laws and regulations applicable to the activities and performances rendered by the Trust under this agreement including but not limited to the laws. and the regulations specified in Section I through VI of this Exhibit D. l. Cl VIL RIGHTS rhe Fair Housing Act (42 U.s.e. 3601-20) and implementing regulations at 24 CFR Part 100: Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p. 52 and 3 CFR. 1980 Comp., p. 30n (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 I: 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 the Trust 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: rhe prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975(42 U.S.c. 6101-07) and implementing regulations at 24 CFR. Part 146. and the prohibitions against discrimination against handicapped mdividuals under section 504 of the Rehabilitation Act of 1973 (29 U.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 HUD'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 Trust 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 Trust will be required to identify contacts which have been bid by minority owned, women owned, and/or small disadvantaged businesses. The Age Discrimination Act of 1975 (42 1 r.s.c. ~~~6101 et seq.); Sl:ction 504 of the Rehabilitation Act \If 1973 (29 U.S.c., Section 794) and 'Nondiscrimination Based on Handicap in Federally-Assisted Programs and Activities of the Department of Housing and lrban Development". 24 CFR. Part 8. By signing this agreement, rhe Trust understands clnd agrl:es that the acti,ities funded herein shall be operated in accordance with 24 eFR. Part 8: and the Architectural Barriers Act of 1968 (42 U.S.c., Section 4151 e1. .,eq.). including the use of a telecommunications device for deaf persons (TDDs) or I:qually effective commul11cation system II. LLAD-RASED PAINT Title IV of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. Sec. 4831). Ill. ENVIRONMENTAL STANDARDS 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 U.S.c. Sec. 4321 et. seq.) and 40 CFR Parts 1500-1508: The National Historic Preservation Act of 1966 (16 U.S.c. Sec. 470 et. seq.) as amended: particularly Section I06( 16 U.S.c. Sec. 470f); Executive Order 11593. Protection and Enhancement of the Cultural Environment, Mav 13. 1971 (36 Fed. Reg. 8921 ), particularly Section 2( c); The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et seq.), particularly Section 3 (16 U. S. C. See. 469a-I). as amended by the archeological and Historic Preservation Act of 1974: Flood Disaster Protection Act of 1973, (42 U.S.c. Sec. 4001 et. seq.) as amended, particularly Sections 1 02(a) and 202(a) (42 U.S.c. Sec. 4012a (a) and Sec. 4106(a)); Executive Order 11988, 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.' 2 I he Coastal Zone l'vlanagement Act of 1972. (16 U.S.C. Sec. 1451 et seq.) as amended. particularly Section ]07(c) an (d) (16 (l.S.C. Sec. 1456(c) and (d)); 1 he Safe Drinking Water Act of 1974. (42 U .S.c. Sec. 201. 300(f) et seq.), and (21 (' S C. See. 349) as amended. particularly Section 1424 (e) (42 D.S.C. Sec. 300h- 303( e I): The Endangered Species Act of 1973. (1 h lJ.S.c. Sec. 1531 et seq.) as amended. particularly Section 7 ( 16 ( 1 S.C Sec. 1536): The Wild and Scenic Rivers Act of 1968. (16 U .S.c. Sec. 1271 et seq.) as amended. particularly Section 7(h) and (c)( 16 lJS.c. Sec. 1278(b) and (c)); The Clean Air Act (41 L.S.C. Sec. 7401 et seq.) as amended, particularly Section 176(c) and (d) (-+2 U.S.c. Sec. 7506(c) and (d)): Farmlands Protection and Policy Act of 1981. (7 U.S.c. Sec. 4201 et seq.) 24 CFR Part 51. Environmental Criteria arid Standards. IV. ACQUISITION! RELOCATION The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.c.. Sec. 460 I et. seq.). 49 CFR Part 24, and 24 CFR Section 570.496a (55 Fed. Reg. 29309 (July] 8, 1990)). 3 EXHIBIT D Certification Regarding Lobbying for Agreements. Grants. I.oans. and Cooperative Agreements The undersigned certifies, to the best of its knmvledge and belief, that: ]. No federal appropriated funds have been paid or wiU 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 in connection with this federal agreement, grant. loan, or cooperative agreement. the undersigned shall complete and submit standard form -LLL, "Disclosure F arm to Report Lobbying". in accordance with its instructions. ;. The undersigned shall require that the language ofthis certification be included 111 the award document~ for all suba\vards at all tiers (including subagreements, sub grants, and agreements under grants. loans. and cooperative agreements) and that the Trust 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 D.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. CUFF MAUS VILI .A( IE TRl iST s~~~~'lt(/<~ &-tM/ ~AM1L / Z-.)/~/~../_ ._ _ ____~_ _____ Date