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HomeMy WebLinkAbout2011-175A gilt . , a A . 3 . •per AGREEMENT BETWEEN Indian River County [ Grantee ] ,f AND Indian River Habitat for Humanity [ Developer ] FOR THE Neighborhood Stabilization Program 3 ( NSP3 ) THIS AGREEMENT, is entered this 16`h day of August, 2011 by and between the NSP3 Grantee of Indian River County ( herein called "Grantee" ) and Indian River Habitat for Humanity ( herein called " Developer" ) . WHEREAS, the Grantee has applied for and has been awarded funds from the United States Department of Housing and Urban Development ( HUD ) for a Neighborhood Stabilization Program 3 grant referred to herein as " NSP3 " ; and WHEREAS, Grantee wishes to engage Developer to assist Grantee in using a portion of the NSP3 award in accordance with applicable notices, regulations and guidance from HUD; NOW, THEREFORE; it is agreed between the parties hereto that; I . SCOPE OF SERVICE Developer will be responsible for carrying out NSP3 activities in a manner satisfactory to Grantee and consistent with all standards required as a condition of providing these funds . Program activities will include the following uses and corresponding activities eligible under NSP3 : A . Developer Responsibilities 1 . This program activity involves the acquisition and development ( rehabilitation ) of residential property that has been foreclosed upon or abandoned , is blighted or is vacant in accordance with the definitions and requirements of the NSP3 program , to the extent that these activities are incorporated in this Section I and in Exhibit A . Specifically, Developer agrees to undertake the following activities : A . Identify foreclosed , abandoned , and blighted single-family residences in the NSP3 target area ; B . Contract for purchase homes meeting program criteria ; C . Complete all pre -acquisition due diligence activities; D . Acquire eligible properties ; E . Prepare rehabilitation work write - up for acquired properties; . .... . __ ... - 1Page _ F . Rehabilitate acquired properties using Habitat for Humanity' s sweat equity program ; G . Solicit potential NSP3 homebuyers; H . Complete income verification and NSP3 qualification process for NSP3 homebuyer applicants; I . Provide principal mortgage financing for NSP3 homebuyers ; and J . Sell NSP3 homes to income qualified buyers . 2 . Developer will carry out this program in accordance with the policies, procedures and other provisions of the Single - Family Purchase , Redevelopment and Sales Program Manual ( " Program Manual " ) , provided to Developer by Grantee, and incorporated herein by reference . Developer hereby agrees to accept and follow any written amendments to the Program Manual by Grantee that are made as a direct result of additional guidance or regulations provided by HUD, as well as any written amendments that are mutually agreed upon by Grantee and Developer. 3 . Developer is responsible for providing the deliverables that are described in Exhibit A, Homes Sales Activities and Detailed Budget, within the time periods and for the approximate average budget amounts described therein . The total use of NSP3 funds provided under this Agreement may not exceed the total amount of NSP3 funds indicated in Section III ( A ) below . 4 . Developer' s expenditures for program delivery will be limited as follows, unless changes to the limits are agreed to in writing by Grantee and Developer for a particular property : a . Minimum number of homes to be acquired , developed and sold : Thirteen (13) . b . Eligible properties : Developer will acquire only properties in designated NSP3 target areas that are eligible under NSP3 guidelines for rehabilitation or redevelopment as affordable residential properties . These guidelines state that properties acquired must be abandoned or foreclosed upon , blighted , or vacant residential structures . Residential structures will be rehabilitated consistent with NSP3 guidelines . c . Designated target areas : Developer may carry out this activity only in the following NSP3 target area : South of Oslo Road ( 9th Street SW ), east of 27th Avenue , north of 25th Street SW , and west of Lateral J Canal , as shown in the map in Exhibit Be d . Minimum number of homes to be acquired and rehabilitated for households with incomes at or below 50% of area median income to meet Grantee' s 25 % set- aside requirement : three ( 3 ) . e . Developer may execute a home purchase contract without obtaining written approval from Grantee ; , however, Developer shall obtain written approval 2Page prior to termination of the Due Diligence period for the home purchase . To request this approval, Developer will provide Grantee with a property description , proof of abandoned , foreclosed , or vacant status as applicable, preliminary plans and specifications for rehabilitation or construction work, a preliminary development cost, an estimate of sale price , and an estimate of net sales proceeds, including line item estimates of sales and marketing costs, closing costs and financing to be provided to the buyer . The preliminary cost estimate will be provided in a form similar to the development cost estimates in Exhibit A, herein . Grantee will base its approval upon an assessment of NSP3 compliance, financial feasibility, conformity to expenditure limits described herein , and the potential marketability of the property . In addition , properties must be located in NSP3 target areas as described herein . g . Maximum NSP3 expenditure per dwelling unit : Developer may spend no more than $ 100, 000 on any single dwelling unit, unless Grantee gives written approval for an additional amount due to the strategic value of a property for the NSP3 program or unforeseen costs that were beyond the control of Developer . h . Average NSP3 expenditure per dwelling unit : The average NSP3 expenditure per dwelling unit may not exceed $ 85 , 000 ( including developer' s fee ) . Grantee encourages Developer to acquire additional homes at a lower average NSP3 cost if it is feasible . i . Developer fee allowed per dwelling unit : The allowed developer fee is 10% of the purchase price and a fixed amount of $ 1 , 000 per dwelling unit for rehabilitation of each dwelling unit . Developer' s fee shall be due and payable as follows : An amount equal to five percent ( 5 % ) of the purchase price paid to the seller for the property being acquired shall be due and payable to Developer upon the acquisition of each property by Developer . One thousand dollars ( $ 1 , 000 ) per unit will be paid upon final inspection approval by County of the rehabilitation of each unit . An amount equal to five percent ( 5 % ) of the purchase price paid to the seller for the property shall be due and payable to Developer at the time of resale of the dwelling unit . It is understood by both parties that the County, utilizing NSP funding, will pay all costs associated with the acquisition and rehabilitation of each property, including all closing costs and recording fees . It is understood by both parties that Developer is responsible for obtaining property insurance , coordinating yard maintenance , providing all utilities, paying all property taxes, and maintaining the acquired housing units; however, the cost of all services required for each housing unit, beginning at initial acquisition of the property by Developer and ending at resale of the property, will be paid by the County utilizing .._.... ... ......... _ 3 11 ge NSP funding or paid by the Developer and reimbursed by the County utilizing NSP funding . j . Allowed amount of NSP3 Homeowner Financial Assistance per buyer : The allowed amount of NSP3 Homeowner Financial Assistance per Buyer is described in the Program Manual . The total amount of Homeowner Financial Assistance will be recaptured and the obligation secured by a promissory note and mortgage with the Grantee named as lien holder, with an amount and terms as defined elsewhere in this section and in the Program Manual . k . Minimum cash contribution by buyer : Each buyer of an NSP3 home will provide a minimum amount of cash or family gifts toward the combined down payment and closing costs, as described in the Program Manual . I . Other limits on expenditures : Other acquisition , rehabilitation/ construction and soft costs listed in Exhibit A are not subject to per- home cost limits on a line - item basis, but must be reasonable and ordinary costs of development and , in the aggregate, must conform to the per- home cost limits and average costs described elsewhere in this Section I ( A ) ( 4 ) . No NSP3 funds may be spent for purchases of equipment or furnishings . m . Accounting for expenditures : Developer will account for total NSP3 expenditures per home by means of assigning an accounting code for NSP34unded or reimbursed expenses for each property and another accounting code , if applicable , for non - NSP3 funded expenditures ( if any) . At the time of the sale of an NSP3 -assisted home , Developer will provide Grantee with ,a complete accounting of NSP3 expenditures for that home and non - NSP3 expenditures, if any . The separate accounting of NSP3 and other funds used is required for establishing the maximum allowed sale price and will provide necessary financial data on NSP34unded expenditures in the event of a HUD audit of program activities . n . Sale price : The sale price of an NSP3 home shall either be the after- rehabilitation market value of the home or the total amount of NSP3 and non - NSP3 expenditures spent on the home , whichever is less . The market value of a home will be determined in accordance with the provisions in the Program Manual . o . Establishment of a lien in favor of Grantee : Upon sale of an NSP3 - funded home , Developer will cause the homebuyer( s ) to execute a promissory note and mortgage in favor of Grantee for the combined amount of the Homeowner Financial Assistance as defined herein and in the Program Manual . The note and mortgage must be prepared by Developer using forms provided by Grantee . Grantee must review and approve the language inserted in these form documents prior to the documents being executed by the homebuyer( s ) . p . Repayment of net proceeds of sale to Grantee : Upon sale of an NSP3 - funded home, Developer or applicable closing agent will transmit the net proceeds of sale to Grantee . Net proceeds of sale are defined as follows : ....... . . 4I' age i . The sale price of the home ; ii . ( Minus ) the amount of any Homeowner Financial Assistance provided to buyer, as defined herein and in the Program Manual , and described on the settlement statement; iii . ( Minus ) Developer costs of sale as documented by the settlement statement, including but not limited to seller- paid closing costs; iv . ( Plus ) Any reimbursements to Developer of costs previously paid or reimbursed with NSP3 funds, such as pro - rated taxes and assessments . 5 . NSP3 - assisted homes must be sold only to income-qualified households in the categories described in the County' s Agreement with the U . S . Department of Housing and Urban Development and in at least the minimum numbers of households required by that agreement . 6 . Environmental reviews : Grantee is responsible for completing site specific environmental reviews Developer shall share with Grantee any information learned that may be useful to Grantee in preparing each site specific environmental review . 7 . Developer is responsible for contracting with one or more agencies that are qualified to provide required 8 hour pre - purchase counseling and homebuyer education to prospective homebuyers in Developer' s home sales program . Alternatively, if Developer is or becomes HUD certified to provide the required 8 hour pre - purchase counseling and homebuyer education, and if HUD allows for it, Developer may provide the counseling . Developer shall ensure that qualified homebuyers have successfully completed the HUD certified homebuyers educational course prior to purchasing a NSP3 property . Be Grantee Responsibilities Grantee is responsible for the following tasks and deliverables . 1 . Approving each property purchase as described herein and in the Program Manual . 2 . Completing Tier 1 environmental assessments and providing Tier 1 clearances for all NSP3 target areas, as well as preparing site -specific environmental reviews . 3 . Managing all draws of NSP3 funds from HUD and payment of valid and properly documented draw requests from Developer . 5Page 4 . Reporting to HUD via the Disaster Reporting Government Reporting ( DRGR ) system , using, in part, data provided by Developer . 5 . Monitoring all program activities of Developer to assure compliance with the terms of this Agreement, including all NSP3 requirements . -6 . Processing requests for disbursements of NSP3 funds in a timely manner; Grantee will clearly and promptly describe any deficiencies identified by Grantee that prevent a disbursement or portion of a disbursement from being approved . Upon the request of Developer, Grantee must promptly itemize and describe such deficiencies in writing . 7 . Ensuring that information is reported in the Disaster Recovery Grant Reporting ( DRGR ) system in a timely manner . Grantee must comply with the NSP3 performance reporting requirements and with any additional reporting requirements announced by HUD at any time during the duration of this agreement C. Income Eligibility Requirements In accordance with the Wall Street Reform and Consumer Protection Act of 2010 Developer will use all NSP3 funds to assist individuals and families whose incomes do not exceed 120 percent of area median income . Grantee is responsible for ensuring that 25 percent of the total grant is used for the purchase and redevelopment of abandoned or foreclosed upon homes or residential properties to house individuals and families whose incomes do not exceed 50 percent of area median income . ; Developer will use NSP3 funding for individuals and families at or below 50 percent of area median income as required by provisions elsewhere in this agreement . D . Developer Staffing The names and roles of Developer' s key personnel ( staff or contractors ) executing the project are as follows : Chief Executive : Andy Bowler NSP3 Project Manager : Susan Reaves Construction Manager: Larry Gibson Financial staff person responsible for approving submission of NSP3 payment requests : Sara Mayo E . Performance Monitoring Grantee will monitor the performance of Developer based on goals and performance standards as stated above along with all other applicable federal , state and local laws, regulations, and policies governing the funds provided under this contract . Substandard performance as determined by Grantee will constitute noncompliance with this Agreement . If 6Page t- corrective action is not taken by Developer within a reasonable period of time after being notified by Grantee, contract suspension or termination procedures will be initiated . Developer agrees to provide HUD, the HUD Office of Inspector General , the General Accounting Office, Grantee, or Grantee ' s internal auditor( s ) access to all records related to performance of activities in this agreement . F . Progress Reports and Other Reports Developer hereby agrees to provide in a timely manner a. 11 necessary progress reports and other reports required by Grantee on forms to be provided by Grantee . II . TIME OF PERFORMANCE A . Start and Completion Dates Services of Developer shall start upon execution of this agreement by Indian River County and Developer and end on the 31St day of December 2012 with all NSP3 funds allocated having been expended , unless Grantee at its sole discretion approves a later completion date . Developer must obligate at least half of that amount by the 30th day of June , 2012 . Notwithstanding the foregoing, with respect to additional activities and funding, the term of this agreement` will automatically be extended to the 31St day of December, 2013 , if Grantee allocates additional funds to Developer for the activities described herein , or causes another entity ( such as a nonprofit housing fund ) to allocate additional funds . As a condition of Developer receiving such additional allocation of funds, Developer and staff of Grantee must jointly create and agree to a new Exhibit A, Homes Sales Activities and Detailed Budget, describing the additional activities, schedule and costs . The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which Developer is responsible for NSP3 reporting or compliance measures or remains in control of NSP3 funds or other NSP3 assets . III . BUDGET A . Program Budget The total amount of NSP3 funding allocated to Developer is $ 1 , 350 , 3862, '-;This amount represents an allocation of the Grantee ' s total NSP3 funding contingent upon Developer' s performance . Be Additional Budget Details A detailed project budget and cash flow projections are included in Exhibit A . In addition , Grantee may require more detailed or different budget breakdowns than the one 71' ag contained herein , and Developer shall provide such supplementary budget information in a timely fashion in a form and content prescribed by Grantee . C . Recapture and Reallocation of Developer' s Allocation of NSP3 Funds If Developer fails to expend NSP3 funds as indicated with regard to the goals and delivery schedule in Exhibit A. Grantee at its sole discretion may recapture a portion or all of Developer' s total NSP3 funding allocation . The portion recaptured will be equal to Grantee' s estimate of the amount of NSP3 funds that would remain unspent by the spending deadlines described herein , based on Developer' s activities to date and capacity to complete the work . 1 In addition , the amount of Developer' s NS133 funding allocation that is not obligated or expended by the deadlines in Section II herein will be recaptured immediately unless Grantee grants a brief extension of the deadline in writing based on extenuating circumstances and compelling evidence that obligations will be completed during the extended period . IV , PAYMENT It is expressly agreed and understood that the total amount of NSP3 funds to be paid by Grantee to Developer under this "Agreement shall not exceed the amount described in Section III . A . herein plus additional amounts allocated , if any . Requests for the payment of eligible expenses shall be associated with the budget line items in Exhibit A and in accordance with performance . V . NOTICES Notices required by this Agreement shall be in writing and delivered via mail ( postage prepaid ) , commercial courier, personal delivery, e - mail , or sent by facsimile or other electronic means . Any notice sent as aforesaid shall be effective on the date of sending . All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice . Communication and details concerning this contract shall be directed to the following contract representatives : Indian River County Indian River Habitat for Humanity, Inc . Grantee Developer Robert M . Keating, Community Andy Bowler, Director Development Director Name & Title Name & Title Indian River County Indian River Habitat for Humanity, Inc . Grantee Developer _ _ .. 8Pagc 180127th Street, Vero Beach , FL 32960 4568 N . US Highway 1 , Vero Beach , FL 32967 [Address] [Address] ( 772 ) 226 - 1246 ( 772 ) 562 -9860 [Telephone ] [Telephone] ( 772 ) 978- 1806 ( 772 ) 562 -8732 [ Fax Number] [ Fax Number] bkeating@ircgov . com abowlerCalirchabitat.org [ E - mail ] [ E - mail ] VI . ENTIRE AGREEMENT This agreement between Grantee and Developer for the use of funds eligible for receipt supersedes all prior or contemporaneous communications and proposals, whether electronic, oral , or written between Grantee and Developer with respect to this Agreement . Additional requirements associated with this agreement are described in Exhibits A and B . Date IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above . BOARD OF COUNTY COMMISSIONERS •ar..a +a OF INDIAN RIVER COUNTY \ •'•+�����N(ISSIQNF9S *, r Bye Gt.c� • � = Bob Solari, Chairman 4 CZ 1e o•` ATTEST B �� : �„�• _ rrJ�{y*g ••rrrra+•e Jeffrey K . Barton , Cler INDIAN RIVER ABITAT FOR HUMANITY ( DEVELOPER ) BY: Andy Bowler, Director WITNESS jj�� By : �� U Signature 9 ' age Printed Name of Witness APPROVED AS TO FORM AND LEGAL SUFFICIENCY Alan Polac unty Attorney 1011a e 2011 2012 2013 sequential months in 2011, 2012 and 2013. k Oct Nov Dae Jan Feb Mar April may lona Ju "I sept Oct Nov Dee Jars-March ri4June lu -Se Oct-Dec TOTAIS HOME DEVELOPMENT ACTMTIES ;1.3 T. Acquisition areements (housing unitss->'irv"2 . , sk" ';'.3 = i' 4 �' .� „ � ; �- ,>.,_ , . =a. - rr�a" ai :k�. ,.' �.2 >,.ba °�'`sx .. . . "....,.;`ine .=s . -..:. . ° ..'. -' tom=;'.,,zd r'kc+ .:1$` ',`"'*., �7' F . 13 Acquisition closings (housing units t4 .# `h` „. lir a" s '` dao ., rM MAaK "2 ' '" ms'. 2 ,n`m , '".' _ �5°v. � _ � x 13 Construction s ecs/est's completed units £` .a"t'� � ,- . m' .o dY$' , s.2 . "_ - 3 ,N3": 'e+4 :2 13 Rehabs/new construction completed units '�,',"?f,1 ` � xr° '= .-. kPE �tli s _ . r°d*., .u5 ak;. 5 ''a2 r : i"'.1". 3 "�.'"v4 W�. .`Sv �s' x .� ".a `2 .' .'k't( ."':3 �` '^ . ing a. ,. `r . .`t= �`k't " 13 Heu'sl ' units soldassu'rtiesi 'i`Dronth afterlan -: 2 +a�Afa'+=' , s , maa@? ':F r. .".,•a, tat "-t. : .mg:� � '='�,i ...:m;,& �m. ^t.�r.X.. rve;; '.„;;,.... ..fl ,, . k ,ar ,.i.". : z 13 INCOME TARGETING AND SETMIDE EXPENDITURES Homes sold to households =<50% AMI' 11 3 Homes said to households at <120% AMI 11 21 31 1 1 21 211 11 1 10 Other PROJECTED AVERAGE SF UNrr COSTS NSP Funded Funding Total NOTES Purchase price of property acquired So $E0,00D No fees or soh costs may be charged except those below m Acquisition developer fee "ik`,7$3600 50 $3,600 Fee must cover costs of research and other ac uisition costs not described in other line items X Acquisition: proratonz, legal, title and recording torts �`T$2,000 $0 $2,000 =r Rehabilitation/construction ':$1 $0 $1D 000 Includes site security costs " Q Rehab/construction developer fee -+5+;"k.-$3,000 - 50 $1000 ME" IT Real estate taxes during holding period :a.5 ` $o $1500 Property and liability insurance during holding period $ - $01 $1500 2nd closing proorabons leal, title and recording torts 'W $2 50 $2000 Down payment assistance to buyers not included will be " aper transfers' on the settlement sheets r a " Commission for sale of home to homebuyer 'k�.-"' $0 - 50 $D ' Final developer fee, after sale , ._$2301) . $0 $2,200 Q Total Costs U $83800 $0 $838110 3 2011 2012 2013 A PROJECTED NSP FUNDS EXPENDED SeptOct Nov Doc Jan Feb Mar Aprll May lune July Aug Sept. Oct Nov Dec Jan-March Nurse Ju SeptOct-Dec TOTALS ''A Acquisition torts $0 50 $131200 $1%0800 $262,,00 50 50 50 $131200 $131,200 5o $0 $0 $0 ' S0 $o $o 50 50 $0 $852800 C Constuction period costs at end ofperiod) $0 $0 50 $0 $0 $28p00 $42000 $560110 $0 $0 $o $28,000 $28000 50 $0 $0 $0 $0 $0 $0 $1820D0 Marketing, sales and dosing period torts $0 50 $0 $0 $o s0 $0 $0 $80400 $12600 $16800 $0 $0 $0 $8900 $8 ,00 50 $0 50 $o $5,,600 (p Program Administration $0 5o $0 5o $o So $o $o $0 $0 $0 $0 $0 $o $0 $0 5o $o So $0 so N TOTAL PROJECTED NSP EXPENORURES $0 $0 $133,200 $1%,800 $262,400 $28,000 $421000 $56000 $139,600 $1,3,800 $16800 $28,000 $28,000 $0 $8,,00 $8900 $0 $0 $0 $0 $1089,400 1� CUMUTAT;%JERED NSP EXPEND"RES 50 $0 $131,200 $328,000 $590400 $6180400 $660,400 $716,400 $856,000 $99%800 $1016,600 $1,0,4,600 $1,oT16D0 $1,072,600 $1,081,000 $1,089,400 $1,089,400 $1,089,400 $1,089,400 $,,089,400 > ESTIMATED PORTION SPE WON 25% SETASIDE• $251,400 eT C 'A sufficient number of homes will be acquired, rehabilitated, and mid to meet the required 25% setaside NSP3 expenditure requirement - OMILN 7 v CL v CL to Exhibit Be. Additional Requirements I . GENERAL CONDITIONS A . General Compliance Developer agrees to comply with all NSP3 requirements, including those found in the NSP3 Grant Agreement, the Wall Street Reform and Consumer Protection Act of 2010, the HERA Act of 2008 and/or the Recovery Act of 2009 ( as . applicable ), and the requirements applicable to entitlement communities under CDBG regulations . Developer also agrees to comply with all other applicable Federal , state and local laws, regulations, and policies governing the funds provided under this contract . Developer further acknowledges its responsibility for adherence to all applicable terms and conditions of this grant award by sub- recipient entities and contractors, including obtaining a DUNS number ( or updating the existing DUNS record ) , and registering with the Central Contractor Registration . Developer further agrees to use funds . available under this Agreement to supplement rather than supplant funds otherwise available . Be " Independent Contractor" Nothing contained in this Agreement is intended to , or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties . Developer shall at all times remain an " independent contractor" with respect to the services to be performed under this Agreement . Grantee shall be exempt from payment of all Unemployment Compensation , FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance , as Developer is an independent contractor . C . Workers' Compensation Developer shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement . D . Suspension or Termination In accordance with 24 CFR 85 . 43 or 84 . 62 , Grantee may suspend or terminate this Agreement if Developer materially fails to comply with any terms of this Agreement, which include ( but are not limited to ) the following : 1 . Failure to comply with any of the statutes, regulations or provisions referred to herein , or such statutes, regulations, executive orders, and HUD policies or directives as may become applicable at any time ; 2 . Failure , for any reason , of Developer to fulfill in a timely and proper manner its obligations under this Agreement; 3 . Ineffective or improper use of funds provided under this Agreement; or 12Pgc 4 . Submission by Developer to Grantee of reports that are incorrect or incomplete in any material respect . This Agreement may also be terminated for convenience by mutual agreement between Grantee and Developer, in whole or in part; by setting forth the reasons for such termination , the effective date, and , in the case of partial termination, the portion to be terminated . If, in the case of a partial termination, Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, Grantee may terminate the award in its entirety . Such a termination shall be carried out only with the explicit written approval from HUD . E . Insurance and Bonding 1 . In General . Developer, at his sole expense , shall purchase and maintain in full force and effect during the term of this Agreement and any renewals thereafter, policies of insurance as provided in this section naming Grantee as co- insured on all such policies . Developer shall furnish to Grantee binders or policies showing the insurance in force as the time of commencement of the present term : 2 . Commercial General Liability and Commercial Automobile Insurance . Developer shall purchase and maintain in full force general liability insurance in an amount of not less than $ 1 , 000, 000 . 00 per occurrence for injuries or death to persons and $ 100, 000 . 00 per occurrence for damage to property . This insurance shall be written with an acceptable company authorized and licensed to do business in the State of Florida and shall be written in a form acceptable to Grantee . Said insurance shall be taken out prior to beginning any operation and shall be kept in effect until all operations have been successfully terminated . Copies, or the originals as the case may be , shall be furnished to Grantee and shall be approved by Grantee before Developer begins performance under this agreement . Developer shall designate Grantee as an additional insured on all such policies, and such policies shall provide for thirty ( 30 ) days written notice of cancellation to the Grantee . Further, Developer shall provide Grantee with an additional insured endorsement page from each policy in a form acceptable to Grantee . Grantee reserves the right to approve or reject any deductible amounts in the required coverage . Developer shall provide at least ten ( 10 ) days prior notice to Grantee before any termination or reduction in coverage . Liability insurance may be obtained through a separate policy or through the required policies described in subsection (c) below. 3 . Property/Casualty and Builder' s Risk Insurance . Prior to taking title to any NSP3 - assisted property, Developer will obtain a property and casualty or builder' s risk insurance policy that insures the property for losses up to the amount of estimated replacement costs, which may not be less than the estimated amount of investment in the property as described in the Project Budget . If the Project Budget is increased , the amount of coverage must be increased accordingly . If Developer cannot obtain insurance coverage in the total amount of investment in the property after making best efforts, Grantee at its sole discretion may give written approval of a lesser amount of coverage . Developer shall designate Grantee an additional insured on all such policies and such policies shall provide for thirty ( 30 ) days written notice of cancellation to Grantee . Further, Developer shall provide Grantee with an additional insured endorsement page from each policy in a form acceptable to Grantee . Grantee reserves the right to approve or _, I 1- IFF-1. 1 1 11 -_ IF . _ 13Pa e reject any deductible amounts in the required coverage, Developer shall provide at least ten ( 10 ) days prior notice to the Grantee before any termination or reduction in coverage . 4 . Workers' Compensation Insurance : Developer shall carry Worker' s Compensation Insurance in accordance with requirements listed in Florida Statutes . 5 . Developer alone shall be responsible for investigation and payment of claims not covered by insurance . Grantee shall not in any way be responsible for payment of any claims determined to be Developer' s responsibility under this Agreement . II . ADMINISTRATIVE REQUIREMENTS A . Financial Management 1 . Accounting Standards Developer is not subject to the provisions of 24 CFR Part 84 and 24 CFR Part 85, which apply only to governmental entities and nonprofit subrecipients carrying out NSP3 programs . Under this agreement, Developer is not a subrecipient, regardless of whether Developer is a nonprofit or for- profit entity . Developer will use adequate internal controls, and maintain necessary source documentation for all costs incurred and adhere to any other accounting requirements included in this Agreement or the Program Manual 2 . Cost Principles OMB Circulars A-87 , "Cost Principles for State , local and Indian Tribal Governments, " A422 , "Cost Principles for Non - Profit Organizations, " and A- 21, "Cost Principles for Educational Institutions, " do not apply to this developer agreement . Be Documentation and Record Keeping 1 . Client Data The Developer shall maintain client data demonstrating client eligibility for services provided . Such data shall include , but not be limited to , client name , address, income level or other basis for determining eligibility, and description of service or benefit provided . Such information shall be made available upon request to Grantee monitors or their designees for review . 2 . Records to be Maintained Developer shall maintain all records required by Federal regulations specified in 24 CFR 570 . 506 . Such records shall include but not be limited to : 14Pa e a . Records providing a full description of each activity undertaken ; b . Records demonstrating that each activity undertaken benefits low-, moderate -, or middle - income persons . c . Records required to determine the eligibility of activities and the eligibility of all properties assisted; d . Records required to document the purchase and sale amounts of each property, discounts, and the sources and uses of funds for each activity; e . Records documenting compliance with the fair housing and equal opportunity requirements of the NSP3 program , including but not limited to the racial , ethnic, and gender characteristics of persons who are applicants for, participants in , or beneficiaries of the program ; f. Records documenting efforts to ensure that the initial successor in interest in a foreclosed upon dwelling or residential real property has complied with the tenant protection requirements . g . Financial records; and h . Other records necessary to document compliance with Subpart K of 24 CFR Part 570 . 3 . Retention Developer shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five ( 5 ) years . The retention period begins on the date that Grantee submits its first quarterly performance report to HUD via DRGR . Notwithstanding the above , if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period , then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five -year period , whichever occurs later. 4 . Disclosure Developer understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of Grantee ' s or Developer' s responsibilities with respect to services provided under this contract, is prohibited by law unless written consent is obtained from such person receiving service and , in the case of a minor, that of a responsible parent/guardian . 5 . Close -outs 1511ae Developer' s obligation to Grantee shall not end until the US Department of Housing and Urban Development completes all close -out requirements for the NSP3 grant . Activities during this close -out period shall include , but are not limited to : making final payments; disposing of program assets ( including the return of all unused materials, ' equipment, unspent cash advances, and accounts receivable to the Grantee ) and determining the custodianship of records . The terms of this Agreement, however, shall remain in effect during any period that Developer has control over NSP3 funds, including program income . 6 . Audits & Inspections All Developer records with respect to any matters covered by this Agreement shall be made available to Grantee , Grantee agency, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine , and make excerpts or transcripts of all relevant data . Any deficiencies noted in audit reports must be fully cleared by Developer within 30 days after receipt by Developer . Failure of Developer to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments or termination of this agreement . C . Reporting and Payment Procedures 1 . Indirect Costs Direct and indirect costs of staff cannot be charged by Developer. Developer will be reimbursed for internal costs through a developer fee as specified in this Agreement . 2 . Payment Procedures Grantee will pay to Developer funds available under this Agreement based upon information submitted by Developer and consistent with any approved budget and Grantee policy concerning payments . Payments will be made for eligible NSP3 related expenses actually incurred by Developer, and will not exceed actual cash requirements . Payments will be adjusted by Grantee in accordance with advance fund and program income balances available in Developer accounts . In addition , Grantee reserves the right to liquidate funds available under this contract for costs incurred by Grantee on behalf of Developer . HUD, through the Disaster Recovery Grant Reporting ( DRGR ) system , generally provides access to grant funds within 3 working days of an electronically submitted request by Grantee . To ensure expeditious implementation of activities, Grantee agrees to draw funds from the line of credit and make payment to Developer within 10 working days of receipt of Developer'-s complete and properly submitted requests for payment for activities under this agreement, if feasible . Developer agrees to submit requests for payment in a timely manner in the form and at the times directed by Grantee . _ 1 11111. .I I I-. _ _- _. _ 16Pac 3 . Progress Reports Developer shall submit regular Progress Reports to the Grantee in the form, content, and frequency as required by the Grantee . D . Procurement 1 . Compliance Developer shall maintain inventory records of all non -expendable personal property as may be procured with funds provided herein . All program assets ( unexpended program income, property, etc . ) not otherwise disposed of in the closeout agreement shall revert to Grantee upon termination of this Agreement . 2 . Procurement Process Developer is not subject to Part 85 or Part 84 of Title 24 of the Code of Federal Regulations and is not required to competitively procure materials, property, or services . With respect to selecting contractors, however, Developer, shall ensure that : • All estimated costs are eligible , reasonable and necessary • The contractor has the needed capacity and expertise • The contractor is not federally debarred E . Use of and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 for Part 85] and 24 CFR 570 . 503 , 570 . 504, and 570 . 505 , as applicable , which include but are not limited to the following : 1 . Developer shall transfer to Grantee any NSP3 funds on hand and any accounts receivable that are attributable to the use of funds under this Agreement at the time of expiration , cancellation , or termination, unless otherwise specified in the HUD closeout agreement with Grantee . 2 . Real property under the Developer' s control that was acquired or improved , in whole or in part, with funds under this Agreement shall be used in accordance with this Agreement If Developer fails to use NSP3 -assisted real property in a manner that meets NSP3 affordability and benefit requirements within and for the prescribed period of time, Developer shall comply with the applicable sections under 24 CFR 570 . 503 , 570 . 504, and 570 . 505 . III . RELOCATION , REAL PROPERTY ACQUISITION AND ONE = FOR- ONE HOUSING REPLACEMENT . .. 11 17r� age Developer agrees to comply with ( a ) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended ( URA ) , and implementing regulations at 49 CFR Part 24; 24 CFR Part 42 — Displacement, Relocation Assistance and Real Property Acquisition for HUD and HUD Assisted Programs; and 24 CFR 570 . 606 — Displacement, relocation acquisition , and replacement of housing . Developer shall provide appropriate relocation assistance ( URA or section 104 ( d ) ) to eligible displaced persons as defined by applicable HUD and/or URA regulations who are displaced as a direct result of acquisition , rehabilitation , demolition or conversion for an NSP3 -assisted project . Developer also agrees to comply with applicable Grantee or local ordinances; resolutions and policies concerning the displacement of persons . Developer will not use NSP3 funds to demolish major structures or convert units from non - residential uses . IV , TENANT PROTECTION REQUIREMENTS Developer agrees to comply with the Recovery Act provisions concerning tenant protections applicable to NSP3 acquisitions of foreclosed property . Developer must document its efforts to ensure that the initial successor in interest ( ISII ) in a foreclosed upon dwelling or residential real property (typically, the ISII in property acquired through foreclosure is the lender or trustee for holders of obligations secured by mortgage liens ) has provided bona fide tenants with the notice and other protections outlined in the Recovery Act . Developer will not use NSP3 funds to finance the acquisition of property from any ISII that failed to comply with applicable requirements unless Developer assumes the obligations of such ISII with respect to bona fide tenants . If Developer elects to assume such obligations, it may do so only if the tenant is still occupying the property and will provide any tenant displaced as a result of the NSP3 funded acquisition with the assistance outlined in 24 CFR 570 . 606 . If Developer knows that the ISII did not comply with the NSP3 tenant protection requirements and vacated the property contrary to the NSP3 requirements, NSP3 funds cannot be used to acquire such properties . V . PERSONNEL & PARTICIPANT CONDITIONS A . Civil Rights 1 . Compliance Developer agrees to comply with applicable state and local civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended , Title VIII of the Civil Rights Act of 1968 as amended , section 104( b ) and section 109 of Title I of the Housing and Community Development Act of 1974 as amended ( the HCDA) , section 504 of the Rehabilitation Act of 1973 , the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975 , Executive Order 11063 , and Executive Order 11246 as amended by Executive Orders 11375, 11478 , 12107 and 12086 . 2 , Nondiscrimination 18Pa e Developer agrees to comply with the non - discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570 . 607 , as revised by Executive Order 13279 . The applicable non - discrimination provisions in section 109 of the HCDA are still applicable . 3 . Section 504 Developer agrees to comply with all Federal regulations issued pursuant to section 504 of the Rehabilitation Act of 1973 ( 29 U . S . C . 794 ) , which prohibits discrimination against individuals with disabilities or handicaps in any Federally assisted program . Grantee shall provide Developer with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement . Be Affirmative Action 1 . Presidential Executive Order 11246 of September 24, 1966 Developer agrees that it shall be committed to comply with Affirmative Action requirements of the President' s Executive Order 11246 of September 24, 1966 ( as applicable ) . The following provisions of Executive Order 11246 " a " and " b" are applicable to all contracts and subcontracts; provisions "c" through "g" are applicable to all non -exempt construction contracts and subcontracts which exceed $ 10, 000 ; During the performance of this contract, Developer agrees as follows : a . Developer shall not discriminate against any applicant for purchase of housing units or applicant for employment because of race, color, creed , religion , sex, age, handicap, disability, ancestry, national origin , marital status, familial status, or any other basis prohibited by applicable law . DEVELOPER shall take affirmative action to ensure that applicants who are employed are treated during employment without regard to their race, color, creed , religion , sex, age , handicap, disability, ancestry, or national origin . Such action shall include , but not be limited to the following : employment, upgrading, demotion or transfer, recruitment or recruitment advertising, . layoff or termination , rates of pay or other forms of compensation , and selection for training, including apprenticeship . DEVELOPER agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of his nondiscrimination clause . b . Developer will , in all solicitations or advertisement for applicants to qualify for purchase of housing units, or employees placed by or on behalf of DEVELOPER, state that all qualified applicants will receive consideration for qualification or employment without regard to race, color, creed , religion , sex, age , handicap, disability, ancestry, . national origin , marital status, or any other basis prohibited by applicable law . 19I' e c . Developer will send to each labor union or representative or workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers representatives of Developer commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment . d . Developer will comply with all provisions of Executive Order 11246, Equal Employment Opportunity, of September 24, 1965 , as amended by Executive Orders 11375 and 12086 , copies of which are on file and available at County, and of the rules, regulations, and relevant orders of the Secretary of Labor . e . Developer will furnish all information and reports required by Executive Order 11246 of September 24, 1965 , as amended , and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto , and will permit access to its books, records, and accounts by HUD and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders . f. In the event of Developer' s noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled , terminated , or suspended in whole or in part, and Developer may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September, 1965, as amended , and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965 , as amended , or as otherwise provided by law . g . Developer will include the portion of the sentence immediately preceding paragraph ( a ) and the provisions of paragraphs ( a ) through ( g ) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor, issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, as amended , so that such provisions will be binding upon each subcontractor or vendor . Developer will take such action with respect to any subcontract or purchase order as HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided , however, that in the event a Developer becomes involved in , or is threatened with , litigation withy a subcontractor or vendor as a result of such direction by HUD, Developer may request the United States to enter into such litigation to protect the interests of the United States . 2 . Women - and Minority- Owned Businesses ( W/ MBE ) Developer will use its best efforts to afford small businesses, minority business enterprises, and women ' s business enterprises the maximum practicable opportunity to participate in the performance of this contract . As used in this contract, the terms "small business" means a business that meets the criteria set forth in section 3 ( a ) of the Small Business Act, as amended ( 15 U . S . C . 632 ) , and " minority and women ' s business enterprise" means a business at least fifty-one ( 51 ) percent owned and controlled by minority group members or women . Developer may rely on written representations by 20Pae businesses regarding their status as minority and women -owned business enterprises in lieu of an independent investigation . 3 . Access to Records Developer shall furnish and cause each of its own Developers or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by Grantee, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein . 4 . Equal Employment Opportunity and Affirmative Action ( EEO/AA ) Statement Developer will , in all solicitations or advertisements for employees placed by or on behalf of Developer, state that it is an Equal Opportunity or Affirmative Action employer . 5 . Subcontract Provisions Developer will include the provisions of Paragraphs V . A, Civil Rights, and V . B, Affirmative Action , in every subcontract or purchase order, specifically or by reference , so that such provisions will be binding upon each of its own Developers or subcontractors . C . Employment Restrictions 1 . Prohibited Activity Developer is prohibited from using funds provided herein or personnel employed in the administration of the program for : political activities; inherently religious activities; lobbying; political patronage ; and nepotism activities . 2 . Labor Standards Developer agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis- Bacon Act, as amended , the provisions of Contract Work Hours and Safety Standards Act (40 U . S . C . 327 et seq . ) and all other applicable Federal , state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement . Developer agrees to comply with the Copeland Anti - Kick Back Act ( 18 U . S . C . 874 et seq . ) and its implementing regulations of the U . S . Department of Labor at 29 CFR Part 5 . Developer shall maintain documentation that demonstrates compliance with hour and wage requirements of this part . Such documentation shall be made available to Grantee for review upon request . Developer agrees that, except with respect to the rehabilitation or construction of residential property containing fewer than eight ( 8 ) units, all contractors engaged under contracts in excess of $ 2 , 000 .00 for construction , renovation or repair work _ . . . . ............ .... 21page financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 31 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve Developer of its obligation , if any, to require payment of the higher wage . Developer shall cause or require to be inserted in full , in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph . 3 . "Section 3" Clause a. Compliance Compliance with the provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended , and as implemented by the regulations set forth in 24 CFR 135 , and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon Grantee , Developer and any of Developer' s grantees and subcontractors . Failure to fulfill these requirements shall subject Grantee , Developer and any of Developer' s grantees and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided . Developer certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements . Developer further agrees to comply with the Section 3 requirements and to include the following language in all subcontracts executed under this Agreement : "The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended ( 12 U . S . C . 1701 ) . Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low- income residents of the project area , and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low- income persons residing in the metropolitan area in which the project is located . " Developer further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation ( including reduction and abatement of lead - based paint hazards ) , housing construction , or other public construction project are given to low- and very low- income persons residing within the metropolitan area in which the NSP34unded project is located ; where feasible, priority should be given to low- and very low- income persons within the service area of the project or the neighborhood in which the project is located , and to low- and very low- income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation ( including reduction and abatement of lead - based paint hazards ) , housing construction , or other public construction project to ............ 223a e business concerns that provide economic opportunities for low- and very low- income persons residing within the metropolitan area in which the NSP34unded project is located ; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low- income residents within the service area or the neighborhood in which the project is located , and to low- and very low- income participants in other HUD programs . Developer certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements . b. Notifications Developer agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker' s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training . c. Subcontracts Developer will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by Grantee' s agency . Developer will not subcontract with any entity where Developer has notice or knowledge that the entity has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations . D . Conduct 1 . Assignability Developer shall not assign or transfer any interest in this Agreement without the prior written consent of Grantee thereto and HUD ; provided , however, that claims for money due or to become due to Developer from Grantee under this contract may be assigned to a bank, trust company, or other financial institution without such approval . Notice of any such assignment or transfer shall be furnished promptly to Grantee . 2 . Subcontracts a. Approvals Developer shall not enter into any subcontracts over $ 100, 000 with any agency or individual in the performance of this contract without the written consent of Grantee prior to .the execution of such agreement . 23Pa e b. Monitoring Developer will monitor all subcontracted services on a regular basis to assure contract compliance . Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow- up actions taken to correct areas of noncompliance . c. Content Developer shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement . d. Selection Process Although Developer is not subject to Part 85 or Part 84 of Title 24 of the Code of Federal Regulations and is not required to competitively procure materials, property, or services . With respect to selecting contractors/subcontractors Developer, shall ensure that : o All estimated costs are eligible , reasonable and necessary o The contractor/subcontractor has the needed capacity and expertise o The contractor/subcontractor is not federally debarred Executed copies of all subcontracts shall be forwarded to Grantee . 3 , Hatch Act Developer agrees that no funds provided , nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the United States Code . 4 . Conflict of Interest Developer agrees to abide by the provisions of 24 CFR 84 .42 and 570 . 611 , which include ( but are not limited to') the following : a . Developer shall maintain a written code or standards of conduct that shall govern the performance of its officers , employees or agents engaged in the award and administration of contracts supported by Federal funds . b . No employee, officer or agent of Developer shall participate in the selection , or in the award , or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved . c . No covered persons who exercise or have exercised any functions or responsibilities with respect to NSP3 - assisted activities, or who are in a position to participate in a decision - making process or gain inside information with regard to I I IF . 24Pa c such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the NSP3 - assisted activity, or with respect to the proceeds from the NSP3 -assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one ( 1 ) year thereafter . For purposes of this paragraph , a " covered person" includes any person who is an employee , agent, consultant, officer, or elected or appointed official of Grantee , Developer, or any designated public agency . 5 . Lobbying Developer hereby certifies that : a . No Federal appropriated funds have been paid or will be paid , by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan , the entering into of any cooperative agreement, and the extension, continuation , renewal , amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; b . If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form - LLL, " Disclosure Form to Report Lobbying, " in accordance with its instructions; and c . Developer will require that the language of paragraph ( d ) of this certification be included in the award documents for all subawards at all tiers ( including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements ) and that all Developers shall certify and disclose accordingly : d . Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into . Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352 , title 31 , U . S . C . 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 . 6 . Copyright If this contract results in any copyrightable material or inventions, HUD reserves the right to a royalty-free , non -exclusive and irrevocable license to reproduce, publish or 25 P a (Q e otherwise use and to authorize others to use, the work or materials for governmental purposes . 7 . Religious Activities Developer agrees that it will comply with 24 CFR 570 . 200 (j ) so that funds are not used to support inherently religious activities . VI . ENVIRONMENTAL CONDITIONS A . Air and Water Developer agrees to comply with the following requirements insofar as they apply to the performance of this Agreement : 1 . Clean Air Act, 42 U . S . C . , 7401 , et seq . ; 2 . Federal Water Pollution Control Act, as amended , 33 U . S . C . , 1251, et seq . , as amended , 1318 relating to inspection , monitoring, entry, reports, and information , as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; 3 . Environmental Protection Agency ( EPA ) regulations pursuant to 40 CFR Part 50, as amended . Be Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 ( 42 U . S . C . 4001 ), Developer shall assure that, for activities located in an area identified by the Federal Emergency Management Agency ( FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as' a condition of financial assistance for acquisition or construction purposes ( including rehabilitation ) . co Lead - Based Paint Developer agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570 .487 or 24 CFR 570 . 608, and 24 CFR Part 35, Subpart B . Such regulations pertain to all NSP3 -assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead - based paint . Such notification shall point out the hazards of lead - based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead - based paint poisoning and the advisability and availability of blood lead level screening for children under _ _ 26Pair e seven . The notice should also point out that if lead - based paint is found on the property, abatement measures may be undertaken . The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted . D . Historic Preservation Developer agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966 , as amended ( 16 U . S . C . 470 ) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement . In general , this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal , state, or local historic property list . VII . ENVIRONMENTAL REVIEW All NSP3 assistance is subject to the National Environmental Policy Act of 1969 and related federal environmental authorities and regulations at 24 CFR part 50 or 58 . VIII . REHABILITATION STANDARDS Residential structures purchased under this program that are not deemed beyond feasible repair (repairs exceeding 50% of the value of the structure) will be rehabilitated as needed to meet the following : 1 . HUD Section 8 Housing Quality Standards (24CFR982 . 401 ) 2 . Local Zoning Requirements 3 . State of Florida Building Code 4 . The local building code 5 . Modern, Green Building and Energy- Efficiency Criteria 6 . Florida Energy Efficiency Code for Building Construction (Newly Constructed Housing Units) 7 . Accessibility requirements of 24 CFR Part 8 , 24 CFR 100 . 201 , and 24 CFR 100 . 205 as applicable . IX . ELIGIBILITY AND ALLOWABLE COSTS Developer will ensure and document that its NSP3 activities meet eligible use , allowable cost, and eligible activity requirements of NSP3 . X . PURCHASE DISCOUNT 27Pa e Developer will acquire property with NSP3 funds at a minimum discount of one percent for each foreclosed residential property . This requirement applies to all properties purchased with NSP3 funds, and the discount must be taken from the current market appraised value . XI . EMINENT DOMAIN Developer will not undertake any involuntary acquisition of property with NSP3 funds without prior written consent of the Grantee and written opinion of counsel that such acquisition is lawful . XII . SEVERABILITY If any provision of this Agreement is held invalid , the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect . XIII . SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement . XIV , WAIVER Grantee ' s failure to act with respect to a breach by Developer does not waive its right to act with respect to subsequent or similar breaches . The failure of Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision . F :\Community Development\CDBG\2010 NSP\CONTRACTS\Developer Agreement\ Final Agreement and Program Manual\Habitat for Humanity NSP3 Agreement - V5 Clean .doc 28Pae Exhibit Co. 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