CITY OF CHANDLER-NEWTOWN CDC AGREEMENT.PDF
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AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT NEWTOWN COMMUNITY DEVELOPMENT CORPORATION A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, AND THE CITY OF CHANDLER Agreement Amount: $212,987 Agreement Start Date: ____________ Agreement Termination Date: September 30, 2023 Agreement Number: C-22-21-112-X-00 CFDA Number: 14.239, HOME Investment Partnerships Program DUNS Number CHDO: 022225143 DUNS Number Administrator: 077524981 This Agreement (“Agreement”) is entered between Maricopa County, administered by its Human Services Department (“County”), Newtown Community Development, Corporation, a Community Housing Development Organization (“CHDO”), and the City of Chandler (“Administrator”). The CHDO, the Administrator, and the County collectively are referred to in this Agreement as the “Parties” and individually as a “Party.” The County shall provide financial reimbursement in the amount listed above, subject to the terms of this Agreement and the availability of funds. The Agreement Amount constitutes the County’s entire participation and obligation in the performance and completion of all work to be performed under this Agreement. The CHDO and the Administrator for and in consideration of the covenants and conditions set forth in this Agreement shall provide and perform the services set forth in this Agreement. All rights and obligations of the Parties shall be governed by the terms of this Agreement and its exhibits, attachments, and appendices, including any Subcontracts, Amendments, or Change Orders as set forth in this Agreement and in: Section 1 – General Provisions Section 2 – Special Provisions Section 3 – Work Statement Section 4 – Compensation Section 5 – Attachments Lead Agency: Maricopa County Representative: Rachel Milne, Assistant Director, Housing and Community Development Division Phone: 602-372-1528 E-mail : Rachel.Milne@maricopa.gov Address: 234 North Central Avenue, Third Floor, Phoenix, Arizona 85004 Page 1 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Administrator: City of Chandler Representative: Karin Bishop Phone: 480-782-4353 E-mail: karin.bishop@chandleraz.gov Address: Mail Stop 600; P.O. Box 4008; Chandler, Arizona 85244-4008 CHDO: Newtown Community Development Corporation Representative: Stephanie Brewer, Executive Director Phone: 480-517-1589 E-mail: stephanie@newtowncdc.org Address:2106 East Apache Boulevard, Suite 112, Tempe, Arizona 85281 Notice under this Agreement shall be given by either personal delivery or registered or certified mail, postage prepaid and return receipt requested, to the persons at the addresses set forth above and shall be effective upon receipt if personally delivered and three (3) business days after being placed in the U.S. Mail, properly addressed, with sufficient postage, if sent by registered or certified mail. Business days means Monday through Friday, unless recognized as a federal or State of Arizona holiday. This Agreement contains all the terms and conditions agreed to by the Parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Parties to this Agreement. Nothing in this Agreement shall be construed as consent to any lawsuits, or waiver of any defenses in a lawsuit brought against Maricopa County, the CHDO, or the Administrator in any state or federal court. The parties have authorized the undersigned to execute this Agreement, and it shall be effective upon approval and signature by both Parties. Signatures contained on the following page Page 2 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler IN WITNESS, the Parties have approved and signed this Agreement: APPROVED BY: APPROVED BY: MARICOPA COUNTY CITY OF CHANDLER (Administrator) Jack Sellers, Chairman, Board of Supervisors Joshua Wright, Acting City Manager ____________________________________ ____________________________________ Date Date Attested to: Attested to: _ _ Clerk of the Board Date City Clerk Date IN ACCORDANCE WITH A.R.S. §§ 11-201 11- IN ACCORDANCE WITH A.R.S. §§ 9-240 AND 251, AND 11-952, THIS AGREEMENT HAS 11-952, THIS AGREEMENT HAS BEEN BEEN REVIEWED BY THE UNDERSIGNED REVIEWED BY THE UNDERSIGNED ATTORNEY WHO HAS DETERMINED IT IS ATTORNEY WHO HAS DETERMINED IT IS PROPER IN FORM AND WITHIN THE PROPER IN FORM AND WITHIN THE POWERS AND AUTHORITY GRANTED TO POWERS AND AUTHORITY GRANTED TO MARICOPA COUNTY UNDER THE LAWS OF THE CITY OF CHANDLER UNDER THE THE STATE OF ARIZONA. LAWS OF THE STATE OF ARIZONA. Approved as to form: Approved as to form: Deputy County Attorney Date Attorney for the City of Chandler Date APPROVED BY: NEWTOWN COMMUNITY DEVELOPMENT, an Arizona nonprofit corporation (CHDO) Stephanie Brewer Date Executive Director Page 3 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler SECTION 1 GENERAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Page 4 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 1.0 PURPOSE The County shall provide the CHDO and the Administrator with U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program funds for the provision of HOME activities as identified in Section 3 (Work Statement). 2.0 TERM The Term of this Agreement shall commence upon the signature of the last signer (“Agreement Start Date”) and terminate on the Agreement Termination Date listed on page 1 of this Agreement. 3.0 RENEWAL This Agreement may be renewed by a written amendment, provided, however, that the CHDO and the Administrator are in full compliance with all terms and conditions of this Agreement. The County shall notify the CHDO and Administrator in writing of its intent to extend the Agreement term at least thirty (30) calendar days prior to the expiration of the original Agreement term, or any additional terms thereafter. 4.0 AMENDMENTS 4.1 All Amendments to this Agreement shall be in writing and signed by the Parties and be requested to the County no later than ninety (90) days prior to contract expiration. 4.2 The County may amend this Agreement, provided that such amendments make specific reference to this Agreement and are executed in writing and signed by a duly authorized representative of each of the Parties. Such amendments shall not invalidate this Agreement and shall neither relieve nor release the County, the CHDO, or the Administrator from their obligations under this Agreement. 5.0 TERMINATION 5.1 Pursuant to A.R.S. § 38-511, the County may cancel this Agreement without penalty or further obligation within three years after execution of this Agreement, if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the County is at any time while this Agreement or any extension of this Agreement is in effect, is or becomes an employee or agent of any other party to this Agreement in any capacity or consultant to any other party to this Agreement with respect to the subject matter of this Agreement. Additionally, pursuant to A.R.S. § 38-511, the County may recoup any fee or commission paid or due to any person significantly involved in initiating, negotiating, securing, drafting, or creating this Agreement on behalf of the County from any other party to this Agreement arising as the result of this Agreement. A cancellation notice made under this paragraph shall be effective when the recipient receives a written notice of cancellation unless the notice specifies a later date. 5.2 Pursuant to A.R.S. § 38-511, the Administrator may cancel this Agreement without penalty or further obligation within three years after execution of this Agreement, if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Administrator is at any time while the Agreement or any extension of the Agreement is in effect, an employee or agent of any other party to this Agreement in any capacity or consultant to any other party to this Agreement with respect to the subject matter of this Agreement. Additionally, pursuant to A.R.S § 38-511, the Administrator may recoup any fee or commission paid or due to any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Administrator from any other party to this Agreement arising as the result of this Agreement. A cancellation notice Page 5 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions made under this paragraph shall be effective when the recipient receives a written notice of cancellation unless the notice specifies a later date. 5.3 A Party may terminate this Agreement at any time by giving the other Parties at least sixty (60) calendar days prior notice in writing (unless terminated by the County under the Availability of Funds provision). The notice shall be given by either personal delivery or registered or certified mail, postage prepaid and return receipt requested to the persons at the addresses set forth on pages 1 and 2 of this Agreement. 5.4 The County has the right to terminate this Agreement upon twenty-four (24) hours’ notice when the County deems the health or welfare of the service recipients are endangered or the non-compliance of the CHDO or the Administrator (or both) jeopardizes funding source financial participation. If not terminated by one of the above methods, then this Agreement will terminate upon the expiration of the Term of this Agreement stated on page 1 of this Agreement. 5.5 In accordance with 2 C.F.R. Part 200, Subpart D, the County may suspend or terminate this Agreement if either the CHDO or the Administrator violates, or both violate, any term or condition of this Agreement or if either the CHDO or the Administrator fails, or both fail, to maintain a good faith effort to carry out the purpose of this Agreement. 5.6 The Parties may terminate this Agreement for convenience in accordance with 2 C.F.R. Part 200, Subpart D. The Parties shall agree upon the termination conditions including the effective date of the termination. The Party initiating the termination shall notify the other Parties in writing stating the reasons for such termination. 6.0 EFFECT To the extent that the Special Provisions are in conflict with the General Provisions, the Special Provisions shall control. To the extent that the Work Statement and the Special or General Provisions are in conflict, the Work Statement shall control. To the extent that the Compensation Provisions are in conflict with the General Provisions, Special Provisions or Work Statement, the Compensation Provisions shall control. Nothing in this Agreement shall operate to increase the Operating Budget without a written amendment to this Agreement. 7.0 DEFINITIONS As used throughout this Agreement, the following terms shall have the following meanings: 7.1 Administrator means the Party responsible for administering this Agreement. The Administrator s responsible for administering this Agreement. 7.2 Annual Action Plan means the annual plan submitted by the County (as the lead agency of the Maricopa HOME Consortium) to HUD, which describes the Consortium’s annual program goals. 7.3 Assistant Director means the Director of the Housing and Community Development Division within the Maricopa County Human Services Department. 7.4 Beneficiary means a person or household that meets the income requirements of 24 C.F.R. § 92.203 subject to the restriction on assistance to students enrolled in an institution of higher education, as described in 24 C.F.R. § 5.612. 7.5 Board of Supervisors (BOS) means the Maricopa County Board of Supervisors. 7.6 CHDO is a community housing development organization, a private non-profit organization that meets the requirements under 24 C.F.R. Part 92.300. 7.7 CHDO Project Proceeds means funds resulting from the sale of CHDO developed homeownership housing; permanent financing of a CHDO project that is used to pay off a CHDO-financed construction loan; the principal and interest payments from a loan to a buyer of CHDO-developed homeownership housing; or sale of CHDO- Page 6 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions sponsored rental housing to a second non-profit. For purposes of this Agreement, the CHDO may retain project proceeds for use in HOME-eligible or other housing activities which benefit low-income families, as required by 24 C.F.R. § 92.300. CHDO proceeds that are retained by the CHDO are not subject to the requirements of the HOME regulations unless the funds are recaptured because the housing no longer meets the affordability requirements. Once the CHDO proceeds are used, there are no further HOME requirements. 7.8 Commitment or Commit to a Specific Local Project shall have the same meaning as set forth in 24 C.F.R. § 92.2 (1) and (2), respectively. 7.9 County means Maricopa County. 7.10 Department means the Maricopa County Human Services Department, Housing and Community Development Division as Lead Agency. 7.11 Developer/Subcontractor means either a non-profit or for-profit organization carrying out HOME-related project activities as described in the written agreement between the County and the Developer. 7.12 Director means the Director of the Maricopa County Human Services Department. 7.13 Division means the Housing and Community Development Division of the Maricopa County Human Services Department. 7.14 Five-Year Consolidated Plan means the HUD required Consolidated Plan submitted by the County as the Lead Agency for the Maricopa HOME Consortium. 7.15 HOME means the HOME Investment Partnerships Program. 7.16 HUD means U.S. Department of Housing and Urban Development. 7.17 Lead Agency or Department means the Maricopa County Human Services Department, Housing and Community Development Division. 7.18 Low-income families means families whose annual incomes do not exceed 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. An individual does not qualify as a low-income family if the individual is a student who is not eligible to receive Section 8 assistance under 24 C.F.R. § 5.612. 7.19 Minority Business Enterprise (MBE) means an entity that is majority owned or controlled by a socially and economically disadvantaged individual as described by Public Law 95-507. 7.20 Net Proceeds means the amount remaining after deducting non-HOME debt and closing costs from the sale of a HOME funded asset, obligation, or loan. 7.21 Performance Bond means a bond executed to secure fulfillment of all of the CHDO's obligations under this Agreement. 7.22 Project means rehabilitation or new construction as described in a legally binding agreement between the CHDO and the prospective owners or beneficiaries of the HOME funds for which all necessary financing has been secured and budgeted and for which an acquisition, construction, or rehabilitation schedule has been established and underwriting has been completed and otherwise complies with 24 C.F.R. §§ 92.2(2)(A) and 92.2(2)(B). 7.23 Public Agency has the meaning prescribed by A.R.S. § 11-951. 7.24 Subcontract means any agreement entered into by the CHDO with a third party for professional services for performance of any of the work or provision of any of the services covered by this Agreement. 7.25 Subcontractor means an entity funded through the CHDO to provide any work or services required by the Work Statement. Page 7 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 7.26 Vendor means an entity funded through the CHDO to provide services required by the Work Statement. 7.27 Very low-income families means low-income families whose annual incomes do not exceed 50 percent of the median family income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. An individual does not qualify as a very low-income family if the individual is a student who is not eligible to receive Section 8 assistance under 24 C.F.R. § 5.612. 7.28 Work Statement means the section of this Agreement that contains a description of services to be delivered pursuant to this Agreement. 7.29 Women’s Business Enterprise (WBE) means an entity in which a woman has majority ownership and control. 8.0 GENERAL REQUIREMENTS 8.1 The terms of this Agreement shall be construed in accordance with Arizona law and the applicable regulations of the United States Department of Housing and Urban Development (HUD). Any lawsuit arising out of this Agreement shall be brought in the appropriate court in Maricopa County, Arizona. 8.2 The CHDO and the Administrator shall, without limitation, obtain and maintain all licenses, permits, and authority necessary to do business, render services, and perform work under this Agreement, and they shall comply with all laws regarding unemployment insurance, disability insurance, and workers’ compensation. 8.3 The CHDO and the Administrator are independent contractors in the performance of work and the provision of services under this Agreement. 8.4 The CHDO and the Administrator shall comply with the regulations prohibiting a conflict of interest, and not make any payments, either directly or indirectly, to any person, partnership, corporation, trust, or other organization that has a substantial interest in the Parties’ organization or with which the Parties (or one of their directors, officers, owners, trust certificate holders, or relatives) have a substantial interest, unless the Parties make full written disclosure of the proposed payments to the County and have received written approval for the payments. For purposes of this provision, the terms "substantial interest" and "relative" shall have the meanings prescribed by A.R.S. § 38-502. 9.0 ACCEPTANCE OF FUNDS The CHDO and the Administrator hereby agree to the receipt of funds under the terms of this Agreement and agree to execute and return a signed Agreement to the County within 30 calendar days after receipt of this Agreement unless the CHDO and the Administrator have received a written waiver of this requirement from the County. 10.0 ASSIGNMENT AND SUBCONTRACTING No right, liability, obligation, or duty under this Agreement may be assigned, delegated, or subcontracted, in whole or in part, without the prior written approval of the County. The CHDO and the Administrator shall bear all liability under this Agreement, even if it is assigned, delegated, or subcontracted, in whole or in part, unless the County agrees otherwise. Page 8 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 11.0 AVAILABILITY OF FUNDS 11.1 The provisions of this Agreement relating to the payment for services shall become effective when funds assigned for the purpose of compensating the CHDO and the Administrator, as provided in this Agreement, are available to the County for disbursement. The County shall be the sole authority in determining the availability of funds under this Agreement and the County shall keep the CHDO and the Administrator fully informed as to the availability of funds. 11.2 If any action is taken by any state agency, federal department, or any other agency or instrumentality to suspend, decrease, or terminate its fiscal obligation under or in connection with this Agreement, then the Parties may amend, suspend, decrease, or terminate their obligations under or in connection with this Agreement. In the event of termination, the County shall be liable for payment only for services rendered prior to the effective date of the termination, provided that such services performed are in accordance with the provisions of this Agreement. The County shall give written notice of the effective date of any suspension, amendment, or termination under this paragraph at least ten (10) calendar days in advance. 12.0 BUDGET ADJUSTMENTS 12.1 Any requests for reasonable budget adjustments must be submitted ninety (90) calendar days prior to the expiration of this Agreement. Requests for adjustments to this Agreement must be supported by documentation. 12.2 The CHDO and the Administrator must receive prior written approval from the County to move funds from one budget activity line item to another. Budget adjustments that do not change the Agreement amount may be documented by an Administrative Change Order approved and fully executed by the Chairman of the Board of Supervisors and the CHDO’s authorized Representative and the Administrator’s authorized Representative and defined in Section 2 (Special Provisions), Paragraph 19.0 (Administrative Change Orders and Addendums). If a budget change is necessary that either increases or decreases the Agreement amount, then the County shall follow Section 1 (General Provisions), Paragraph 4.0 (Amendments) of this Agreement to amend the Agreement. 13.0 DISPUTES 13.1 Except as may otherwise be provided for in this Agreement, any dispute arising out of this Agreement that is not resolved between the Parties within a reasonable period of time, which shall not exceed one hundred twenty (120) calendar days, shall be submitted in accordance with the following dispute resolution process: 13.1.1 Notice of the specific grounds of a dispute shall be in writing and filed with the Assistant Director within ten (10) business days from the date the CHDO and the Administrator knew or should have known of the basis of the dispute. 13.1.2 The Assistant Director shall respond in writing to the CHDO and the Administrator within fourteen (14) business days. The decision of the Assistant Director shall be final and conclusive unless, within seven (7) business days after the date the CHDO and the Administrator are served with the decision, the CHDO and the Administrator file a written notice of appeal with the Human Services Department Director. 13.1.3 The Human Services Department Director shall provide the CHDO and the Administrator with a written response within fourteen (14) business days following receipt of the notice of appeal. The decision of the Director shall be final and not appealable. Page 9 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 13.1.4 Pending a final decision from the Director, the CHDO and the Administrator shall diligently proceed with their performance of this Agreement in accordance with the Assistant Director’s decision. 14.0 DEFAULT AND REMEDIES FOR NONCOMPLIANCE 14.1 Notwithstanding anything to the contrary, this paragraph shall not be deleted or superseded by any other provision of this Agreement. 14.2 This Agreement may be immediately terminated by the County if either the CHDO or the Administrator defaults by failing to perform any objectives, or breaches any obligations under this Agreement, or any events occur that jeopardizes the CHDO’s or the Administrator’s ability to perform any of their obligations under this Agreement. The County reserves the right to have the services provided by persons other than the CHDO or the Administrator if either the CHDO or the Administrator is unable or fails to provide required services with the specified time frame. 14.3 Failure to comply with the requirements of this Agreement and all the applicable federal, state, or local laws, rules, and regulations may result in suspension or termination of this Agreement, the return of unexpended funds (less just compensation for work satisfactorily completed that, to date, has not been paid), the reimbursement to the County by the CHDO and the Administrator of any funds improperly expended, or the recovery of funds improperly acquired. Noncompliance with this Agreement includes but is not limited to: 14.3.1 Nonperformance of any obligations; 14.3.2 Noncompliance with any applicable federal, state, or local laws, rules, or regulations, including HUD guidelines, policies, or directives; 14.3.3 Unauthorized expenditure of funds; 14.3.4 Violation of the applicable affordability period; 14.3.5 Improper disposition of recaptured proceeds; 14.3.6 Improper disposition of Project Income; 14.3.7 Noncompliance with applicable financial record requirements, accounting principles, or standards established by 2 C.F.R. Part 200, and 14.3.8 Noncompliance with recordkeeping, record retention, or reporting requirements. 14.4 Notwithstanding the suspension or termination of this Agreement, or the final determination of the proper disposition of funds, the CHDO and the Administrator shall, without intent to limit or with restrictions, be subject to the following: 14.4.1 All funding shall be immediately revoked, and any approvals related to the project described in the Special Provision or Work Statement shall be deemed revoked and canceled. Thereby, any entitlements to compensation after suspension or termination of this Agreement are similarly revoked and unavailable. 14.4.2 Not be relieved of any liability or responsibility associated with the Special Provision or Work Statement. 14.4.3 Acknowledge that suspension or termination of this Agreement does not affect or terminate any rights against the CHDO and the Administrator at the time of suspension or termination, or that may accrue later. Nothing in this Agreement shall be construed to limit or terminate any right or remedy available under contract or rule. 14.4.4 Waiver of a breach or default of any terms, covenants, or conditions of this Agreement or any federal, state, or local laws, rules, or regulations shall not operate as a waiver of any subsequent breach of the same or any other terms, covenants, conditions, laws, rules, or regulations. Page 10 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 14.5 The CHDO and the Administrator shall, upon notice or with knowledge obtained by the CHDO, the Administrator, or others, take any and all proactive actions necessary, and provide any and all applicable remedies to address and correct any acts by them or their employees, officials, successors, assigns, contractors, or subcontractors that resulted in any wrongdoing (intentional or unintentional); misuse or misappropriation of funds; the incorrect or improper disposition of funds; any violations of any federal, state, or local laws, rules, or regulations; or the breach of any certifications or warranties provided in this Agreement. 15.0 SEVERABILITY Any provisions of this Agreement that are determined to be invalid, void, or illegal by a court shall in no way affect, impair, or invalidate any other provision of this Agreement, and the remaining provisions shall remain in full force and effect. 16.0 STRICT COMPLIANCE The County’s acceptance of the CHDO’s and the Administrator’s performance that is not in strict compliance with the terms of this Agreement shall not be deemed to waive the requirements of strict compliance for all future performance. All changes in performance obligations under this Agreement shall follow Section 1 (General Provisions), Paragraph 4.0 (Amendments), of this Agreement. 17.0 NON-LIABILITY The County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions shall not be liable for any act or omission by the CHDO, the Administrator, or Vendor or any agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the Administrator, or Vendor occurring in the performance of this Agreement, nor shall the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions be liable for purchases or contracts made by the CHDO, the Administrator, Vendor or any agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the Administrator, or the Vendor, in connection with this Agreement. 18.0 INDEMNIFICATION 18.1 To the extent permitted by law, the CHDO and the Administrator shall, and shall cause any of their Subcontractors, to indemnify, defend, save and hold harmless the County, any jurisdictions or agencies issuing any permits for any work arising out of this Agreement, and their respective agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions (hereafter referred to as “Indemnitee”) from and against any and all claims, demands, actions, liabilities, damages, losses, judgments, or expenses (including court costs, attorney and expert fees, and costs of claim processing, investigation, and litigation) (hereafter referred to as “Claims”): A.) that either directly or indirectly are caused by, arise from, or relate to breach of this Agreement by the CHDO, the Administrator, and any of their Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the Administrator, and any of their Subcontractors; and B.) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property that are either directly or indirectly caused by, arise from, or relate to, or Page 11 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions are alleged to be caused by, arise from, or relate to, in whole or in part, the negligent or willful acts or omissions of the CHDO, the Administrator, and any of their Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the Administrator, and any of their Subcontractors. This indemnity includes any claims or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of the CHDO, the Administrator, or any of their Subcontractors to conform to any federal, state, or local laws, statutes, ordinances, rules, regulations, or court decrees. It is the specific intention of the Parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by the CHDO, the Administrator, and any of its Subcontractors from and against any and all claims. It is agreed that the CHDO, the Administrator, and any of their Subcontractors will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. 18.2 To the extent permitted by law, the County and the CHDO shall, and shall cause any of their Subcontractors, to indemnify, defend, save and hold harmless the City, any jurisdictions or agencies issuing any permits for any work arising out of this Agreement, and their respective agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions (hereafter referred to as “Indemnitee”) from and against any and all claims, demands, actions, liabilities, damages, losses, judgments, or expenses (including court costs, attorney and expert fees, and costs of claim processing, investigation, and litigation) (hereafter referred to as “Claims”): A.) that either directly or indirectly are caused by, arise from, or relate to breach of this Agreement by the CHDO, the County, and any of their Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the County, and any of their Subcontractors; and B.) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property that are either directly or indirectly caused by, arise from, or relate to, or are alleged to be caused by, arise from, or relate to, in whole or in part, the negligent or willful acts or omissions of the CHDO, the County, and any of their Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions of the CHDO, the County, and any of their Subcontractors. This indemnity includes any claims or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of the CHDO, the County, or any of their Subcontractors to conform to any federal, state, or local laws, statutes, ordinances, rules, regulations, or court decrees. It is the specific intention of the Parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by the CHDO, the County, and any of its Subcontractors from and against any and all claims. It is agreed that the CHDO, the County, and any of their Subcontractors will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. 19.0 TECHNICAL ASSISTANCE The County shall provide reasonable technical assistance to the CHDO and the Administrator to assist in complying with state and federal laws and regulations, and Page 12 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions accountability for diligent performance and compliance with the terms and conditions of this Agreement and all applicable laws, regulations, and standards. However, this assistance in no way relieves the CHDO and the Administrator of full responsibility and accountability for their actions and performance in compliance with the terms of this Agreement. 20.0 SINGLE AUDIT ACT REQUIREMENTS The CHDO and the Administrator are subject to the federal audit requirements of the Single Audit Act of 1984, as amended (Pub. L. No. 98-502) (codified at 31 U.S.C. § 7501, et seq.). The CHDO and the Administrator shall comply with 2 C.F.R. Part 200. Upon completion, such audits shall be made available for public inspection. Audits shall be submitted within the twelve (12) months following the close of the fiscal year. The CHDO and the Administrator shall take corrective actions within six (6) months after the date of receipt of the reports. The County shall consider sanctions as described in 2 C.F.R. § 200.505 if it is determined by HUD or the County that either the CHDO or the Administrator (or both) is not in compliance with the audit requirements. 21.0 AUDIT DISALLOWANCES 21.1 The CHDO and the Administrator shall, upon written notice, reimburse the County for any payments made under this Agreement that are disallowed by a federal, state, or County audit in the amount of the disallowance. 21.2 If the County determines that a cost for which payment has been made is a disallowed cost, then the County will notify the CHDO and the Administrator in writing of the disallowance and the required course of action, which shall be at the option of the County, either to adjust any future claim submitted by the CHDO and the Administrator by the amount of the disallowance or to require immediate repayment of the disallowed amount by the CHDO and the Administrator issuing a check payable to the County. 22.0 STAFF AND VOLUNTEER TRAINING The County may make available to the CHDO and the Administrator the opportunity to participate in any applicable training activities conducted by the County. 23.0 CLEAN AIR ACT If the total face value of this Agreement exceeds $100,000, then the CHDO and the Administrator agree to comply with all regulations, standards, and orders issued under the Clean Air Act of 1970, as amended (42 U.S.C. § 7401, et seq.), to the extent any are applicable by reason of performance of this Agreement. 24.0 RELIGIOUS ACTIVITIES The CHDO and the Administrator agree that none of their costs and none of the costs incurred by any Vendors will include any expenses for any religious activities. 25.0 POLITICAL ACTIVITY PROHIBITED None of the funds, materials, property, or services contributed by the County, the CHDO, or the Administrator under this Agreement shall be used for any partisan political activities, or to further the election or defeat of any candidates for public office. 26.0 COVENANT AGAINST CONTINGENT FEES The CHDO and the Administrator warrant that no person or entity has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a Page 13 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions commission, percentage, brokerage, or contingent fee. For breach or violation of this warranty, the County may immediately terminate this Agreement without liability. 27.0 SAFEGUARDING OF PARTICIPANT INFORMATION The use or disclosure by any Party of any information concerning an applicant for, or recipient of, services under this Agreement is directly limited to the purpose of this Agreement. The CHDO and the Administrator and their agents shall safeguard the confidentiality of this information as required by federal and state law. The CHDO and the Administrator shall include a clause to this effect in all Subcontracts. 28.0 RIGHTS IN DATA The Parties shall have the use of data and reports resulting from this Agreement without cost or other restriction, except as otherwise provided by law or applicable regulation. Each Party shall supply the other Parties, upon request, any available information that is relevant to this Agreement and to the performance it. 29.0 COPYRIGHTS If this Agreement results in a book or other written material, then the author is free to copyright the work, but the County reserves a royalty-free, nonexclusive, perpetual, and irrevocable license to reproduce, publish, use, and authorize others to use all copyrighted material and all material that can be copyrighted as a result of this Agreement. 30.0 PATENTS Any discoveries or inventions arising out of, or developed in the course of, work aided by this Agreement shall be promptly and fully reported to the County for determination as to whether patent protection on such invention or discovery shall be sought and how the rights in the invention or discovery, including rights under any patent issued on such invention or discovery, shall be disposed of and administered in order to protect the public interest. 31.0 AGREEMENT COMPLIANCE MONITORING 31.1 The County will monitor the CHDO’s and Administrator’s compliance for fiscal and programmatic performance under the terms and conditions of this Agreement and applicable regulations promulgated by the HUD and Maricopa County. On-site visits for compliance monitoring may be made by either the County or its grantor agencies (or by both the County and its grantor agencies) at any time during the CHDO's and Administrator’s normal business hours, announced or unannounced. For auditing purposes, the County shall provide the CHDO and Administrator with a 30-calendar day advance notice of proposed on-site visit. During an on-site visit, the CHDO and Administrator shall make all of their records and accounts related to work performed under this Agreement available to the County for inspection and copying. 31.2 The County shall request information for monitoring/audit per Office of Management and Budget (OMB) Uniform Guidance 2 C.F.R. Part 200, to include: 31.2.1 Financial Management 2 C.F.R. § 200.302 31.2.2 Internal Controls 2 C.F.R. § 200.303 31.2.3 Bonds 2 C.F.R. § 200.304 31.2.4 Payment and Financial Reporting 2 C.F.R. § 200.305 31.2.5 Cost Sharing or Matching 2 C.F.R. § 200.306 31.2.6 Program Income 2 C.F.R. § 200.307 31.2.7 Revision of Budget and Program Plans 2 C.F.R. § 200.308 31.2.8 Period of Performance 2 C.F.R. § 200.309 31.2.9 Insurance Coverage 2 C.F.R. § 200.310 Page 14 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 31.2.10 Record Retention and Access 2 C.F.R. § 200.334 31.2.11 Procurement Standards 2 C.F.R. § 200.318 31.2.12 Indirect Costs 2 C.F.R. § 200.414 31.2.13 Compensation-Personal Services 2 C.F.R. § 200.430 31.2.14 Audit Requirements 2 C.F.R. § 200.501-200.517 32.0 CONTINGENCY RELATING TO OTHER CONTRACTS AND GRANTS 32.1 The CHDO and the Administrator shall, during the term of this Agreement, immediately inform the Lead Agency in writing of any other agreement or grant, including any other agreement or grant awarded by the County, where the award may affect either the direct or indirect costs being paid or reimbursed under this Agreement. Failure by either the CHDO or the Administrator (or both) to notify the County of such award shall be considered a violation of this Agreement and the County may immediately terminate this Agreement without liability. 32.2 The County may request, and the CHDO and the Administrator will provide within a reasonable time, which shall not exceed ten (10) business days, a copy of such other agreement or grant, when in the opinion of the County the award of the Agreement or grant may affect the costs being paid or reimbursed under this Agreement. 32.3 If the County determines that the award to either the CHDO or the Administrator (or both) of such other agreement or grant has affected the costs being paid or reimbursed under this Agreement, then the County will prepare an amendment to this Agreement effecting a cost adjustment. If either the CHDO or the Administrator (or both) disputes the proposed cost adjustment, then the dispute shall be resolved pursuant to the "Disputes" paragraph contained in this Agreement. 33.0 MINIMUM WAGE REQUIREMENTS The CHDO and the Administrator warrant that they shall pay all of their employees who are engaged in either performing work or providing services under the terms of this Agreement not less than the minimum wage specified under Section 206(a)(1) of the Fair Labor Standards Act of 1938, as amended (29 U.S.C. § 201, et seq.), by law and regulation, and, as applicable, Executive Order 13658, as amended, and as specified by Arizona law. 34.0 RECOGNITION OF DEPARTMENT SUPPORT The CHDO and the Administrator will give recognition to the County and the funding source for their support when either the CHDO or the Administrator (or both) publish materials that are (or release public information that is) paid for either in whole or in part with funds received by the CHDO and the Administrator under this Agreement. 35.0 INSURANCE 35.1 The CHDO and the Administrator, shall purchase and maintain the minimum insurance stipulated in this Agreement from a company or companies duly licensed by the State of Arizona and possessing a current A.M. Best, Inc. rating of B++6 or higher. In lieu of State of Arizona licensing, the stipulated insurance may be purchased from a company that is or companies that are authorized to do business in the State of Arizona, provided that such insurance company or companies meet the approval of the County. The form of any insurance policies and forms must be acceptable to the County. 35.2 All insurance required under this Agreement shall be maintained in full force and effect until all work or service required to be performed under the terms of this Agreement is satisfactorily completed and formally accepted. Failure to do so may, at the sole discretion of the County, constitute a material breach of this Agreement. Page 15 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 35.3 The CHDO’s and the Administrator’s insurance shall be primary insurance as respects the County, and any insurance or self-insurance maintained by the County shall not contribute to it. 35.4 Any failure to comply with the claim reporting provisions of the insurance policies or any breach of an insurance policy warranty shall not affect coverage afforded under the insurance policies to protect the County. 35.5 The insurance policies may provide coverage that contains deductibles or self- insured retentions. The CHDO and the Administrator shall be solely responsible for the deductible and self-insured retention. 35.6 The County reserves the right to request and to receive, within 10 business days, certified copies of any or all of the insurance certificates required under this Agreement. The County shall not be obligated to review either policies or endorsements (or both) or to advise the CHDO and the Administrator of any deficiencies in such policies and endorsements, and such receipt shall not relieve either the CHDO or the Administrator from, or be deemed a waiver of the County’s right to insist on strict fulfillment of the CHDO’s and the Administrator‘s obligations under this Agreement. 35.7 The insurance policies required by this Agreement, except Workers’ Compensation, shall name the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions as Additional Insureds. 35.8 The policies required under this Agreement, except Workers’ Compensation, shall contain waivers of transfer of rights of recovery (subrogation) against the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions for any claims arising out of the work or service of either the CHDO or the Administrator (or both). 35.9 The CHDO’s and the Administrator’s policies shall stipulate that the insurance afforded the CHDO and the Administrator shall be primary insurance and that any insurance carried by the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions shall be excess and not contributory insurance, as provided by A.R.S. § 41-621. 35.10 Coverage provided by the CHDO and the Administrator shall not be limited to the liability assumed under the Indemnification provisions of this Agreement. 35.11 The CHDO and the Administrator shall have coverage in effect at all times during the term of this Agreement in an amount that is adequate to protect the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, and commissions and equipment funded under this Agreement against such losses as are set forth below. The CHDO and the Administrator shall each name the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, committees, or commissions as additional insured parties. The CHDO and the Administrator shall each provide the County with documentation of insurance coverage by furnishing the County a certificate of insurance or a certified copy of the insurance policy or other documentation. 35.12 The following types and amounts of insurance are required as a minimum: 35.12.1 Workers' Compensation according to statutory limits. 35.12.2 Unemployment Insurance as required by Arizona Law. 35.12.3 Public Liability, Bodily Injury, and Property Damage: 35.12.3.1 General Liability, each occurrence, $1,000,000; and Page 16 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 35.12.3.2 Property Damage $1,000,000; or combined single limit each occurrence $1,000,000.00 minimum 3 Automobile and Truck Liability with minimum limits of $1,000,000.00 per occurrence. 35.12.4 Standard minimum deductible amounts are allowable. Any deductible amounts are the responsibility of the CHDO and the Administrator and reimbursements, if any, under this Agreement are subject to regulatory provisions of the funding source(s) of this Agreement. 35.12.5 Property or equipment purchased or furnished through funds provided under this Agreement shall be fully insured for the purchase or replacement cost of such property or equipment. 35.13 Certificates of Insurance: 35.13.1 Upon execution of this Agreement, the CHDO and the Administrator shall furnish the County with valid and complete certificates of insurance or formal endorsements as required by the Agreement, issued by the CHDO’s and the Administrator’s insurer(s), as evidence that policies providing the required coverage, conditions, and limits required by this Agreement are in full force and effect. Such certificates shall identify this Agreement by number and title. 35.13.2 Prior to commencing either work or services under this Agreement, the CHDO and the Administrator shall have insurance in effect as required by this Agreement in the form provided by the County, issued by the CHDO’s and the Administrator’s insurer(s), as evidence that policies providing the coverage, conditions, and limits required by this Agreement are in full force and effect. Such certificates shall be made available to the County within ten (10) business days after this Agreement has been fully executed by the Parties. BY SIGNING THIS AGREEMENT, THE CHDO AND THE ADMINISTRATOR AGREE TO THIS REQUIREMENT AND THAT FAILURE TO MEET THIS REQUIREMENT WILL RESULT IN CANCELLATION OF THIS AGREEMENT. 35.13.3 In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend for two years past completion and acceptance of the CHDO’s and the Administrator’s work or services and as evidenced by annual Certificates of Insurance. 35.13.4 If a policy does expire during the life of this Agreement, then a renewal certificate must be sent to the County fifteen (15) business days prior to the expiration date. 35.14 Cancellation and Expiration Notice: Insurance required under this Agreement shall not be permitted to expire, be canceled, or be materially changed without thirty (30) business day’s prior, written notice to the County. 35.15 Subcontractors: Either the CHDO’s and the Administrator’s certificate(s) shall include all Subcontractors as insureds under its (their) policies or the CHDO and the Administrator shall furnish to the County separate certificates for each Subcontractor. All coverages for Subcontractors shall be subject to the minimum requirements identified above. Page 17 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 35.16 Approval: Any modifications or variations from the insurance requirements in this Agreement must have prior approval from the County whose decision shall be final. Such action will not require a formal amendment and must be approved by both Parties. 35.17 Exceptions: In the event the CHDO, the Administrator, or a Subcontractor is a public entity, the Insurance Requirements shall not apply to such public entity. Such public entity shall provide a Certificate of Self-Insurance. 36.0 BONDING 36.1 The CHDO shall not commence performance or receive any reimbursements under this Agreement until such time as an assurance of performance (performance bond) shall have been provided in the full amount of this Agreement. 36.2 Any performance bond shall be from a company with a rating not less than B++ and shall be in form acceptable to the Maricopa County Attorney. 36.3 The CHDO shall provide the County with documentation of required bonding. 36.4 Nothing contained in this paragraph shall limit the ability of the CHDO to provide multiple assurances provided that the total assured amount shall be not less than the full amount of this Agreement. 37.0 GRIEVANCE PROCEDURE The CHDO and the Administrator shall establish a system through which applicants for, and recipients of, services may present grievances and may take appeals about eligibility and other aspects of the CHDO’s and the Administrator’s work under this Agreement. The grievance procedure shall include provisions for notifying the applicants for, and recipients of, services of their eligibility or ineligibility for service and their right to appeal to the County if the grievance is not satisfied at the CHDO’s and the Administrator’s level. This system shall include protest procedures for decisions related to contract awards and requests for reasonable accommodations for persons with disabilities. 38.0 NONDISCRIMINATION The CHDO and the Administrator, in connection with any services or other activities under this Agreement, shall not in any way discriminate against any person on the grounds of race, color, religion, sex, national origin, age, disability, political affiliation or belief. The CHDO and the Administrator shall include this clause in all of their Subcontracts. 39.0 EQUAL EMPLOYMENT OPPORTUNITY 39.1 The CHDO and the Administrator shall not discriminate against any employees or applicants for employment because of race, age, disability, color, religion, sex, or national origin. 39.2 The CHDO and the Administrator shall each take affirmative action to ensure applicants are employed and that employees are treated during employment without regard to their race, age, disability, color, religion, sex, or national origin. Such action shall include but is not limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, lay-off or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 39.3 The CHDO and the Administrator shall, to the extent the following provisions apply, comply with: 39.3.1 Title VI and VII of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2000a, et seq.); 39.3.2 the Rehabilitation Act of 1973, as amended (29 U.S.C. § 701, et seq.); Page 18 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 39.3.3 the Age Discrimination in Employment Act of 1967, as amended (29 U.S.C. § 621, et seq.); 39.3.4 the Americans With Disabilities Act of 1990 (42 U.S.C. § 12101, et seq.); and 39.3.5 Arizona Executive Order 2009-09, as amended, which mandates that all persons shall have equal access to employment opportunities. 40.0 DISABILITY REQUIREMENTS The CHDO and the Administrator agree that any electronic or information technology offered under this Agreement shall comply with Section 508 of the Rehabilitation Act of 1973, which requires that employees and members of the public shall have access to and use of information technology that is comparable to the access and use by employees and members of the public who are not individuals with disabilities. 41.0 UNIFORM ADMINISTRATIVE REQUIREMENTS The CHDO and the Administrator agree to comply with all applicable provisions of Title 2, Subtitle A, Chapter II, Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards contained in 2 C.F.R. Part 200. 42.0 FINANCIAL MANAGEMENT The CHDO shall establish and maintain a separate, interest-bearing bank account for money provided under this Agreement, or an accounting system that assures the safeguarding and accountability of all money and assets provided under this Agreement. No part of the money deposited in such bank account shall be commingled with other funds or money belonging to the CHDO or the Administrator (or both). All interest earned on such account shall be disposed of in a manner specified by the County in accordance with applicable state and federal regulations. The CHDO shall provide a signed bank account agreement authorizing the County to obtain information about the account. If an accounting system is used, then it shall be in accordance with generally accepted accounting principles. 43.0 RETENTION OF RECORDS 43.1 This provision applies to all financial and programmatic records, supporting documents, statistical records, and other records of the CHDO and the Administrator that are related to this Agreement. 43.2 The CHDO and the Administrator shall retain all records related to this Agreement for a minimum of six (6) years after final payment or until after the resolution of any audit questions, which could be more than six (6) years, whichever is longer, or for the period of affordability imposed by deed restrictions. The County, federal and state auditors, and any other persons duly authorized by the County, shall have full access to, and the right to examine, copy, and make use of any and all of the records. 44.0 ADEQUACY OF RECORDS If the CHDO’s and the Administrator’s books, records, and other documents related to this Agreement are not sufficient to support and document that allowable services were provided to eligible participants, then the CHDO and the Administrator shall reimburse the County for the services not supported and documented. 45.0 COMPETITIVE BID REQUIREMENTS 45.1 Equipment The CHDO and the Administrator shall obtain all equipment to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost in accordance with the following competitive bidding system: Page 19 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 45.1.1 Procurements less than $3,000 (micro-purchases) are exempt from needing competitive quotes. 45.1.2 Procurements exceeding an aggregate amount of $1,000 shall be approved by the County. At least three (3) bidders shall be solicited to submit written quotations. The award shall be made to the lowest bidder meeting specification requirements concerning price, conformity to specifications, and other purchasing factors. 45.2 Supplies The CHDO and the Administrator shall obtain all supplies to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost and in accordance with a system of written quotes whenever the price is expected to be greater than $300, unless the CHDO and the Administrator obtain the County’s prior written approval to purchase supplies by an alternate method. 45.3 Minority, Women, and Small Business Enterprises The CHDO and the Administrator shall take affirmative steps to provide an opportunity for minorities, women, and small businesses to compete in the procurement of equipment and supplies under this Agreement. 45.4 Funding source requirements relating to competitive bid procedures may supersede any or all subparts of this clause and will be specified in the Special Provisions section of this Agreement. 46.0 PROPERTY Any property furnished or purchased under the terms of this Agreement shall be utilized, maintained, repaired, and accounted for in accordance with instructions furnished by the County and shall revert to the County upon termination of this Agreement unless the County determines otherwise. The costs to repair such property are the responsibility of the CHDO and the Administrator within the limits budgeted under this Agreement. Repair costs beyond the budgeted amount shall be approved by the County. 47.0 IMMIGRATION LAWS AND REGULATIONS 47.1 Federal Immigration and Nationality Act 47.1.1 The CHDO and the Administrator understand and acknowledge the applicability of the Immigration Reform and Control Act of 1986 (IRCA). The CHDO and the Administrator agree to comply with the IRCA in performing under this Agreement and to permit the other Parties to inspect personnel records to verify such compliance. 47.1.2 The CHDO and the Administrator warrant compliance with the Federal Immigration and Nationality Act (FINA) and all other federal immigration laws and regulations related to the immigration status of their employees. The CHDO and the Administrator shall obtain statements from their subcontractors certifying compliance and shall furnish the statements to the Assistant Director upon request. These warranties shall remain in effect through the term of this Agreement. The CHDO and the Administrator and their subcontractors shall also maintain Employment Eligibility Verification forms (I-9) as required by the U.S. Department of Labor’s Immigration and Control Act for all employees performing work under the Agreement. I-9 forms are available for download at USCIS.GOV. 47.1.3 The County may request verification of compliance for any employee or subcontractor performing work under this Agreement. Should the County either suspect or find that the CHDO or the Administrator (or both) or any of their subcontractors are not in compliance, then the County may pursue Page 20 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions any and all remedies allowed by law, including, but not limited to: suspension of work, termination of this Agreement for default, and suspension or debarment (or both) of the CHDO or the Administrator (or both). All costs necessary to verify compliance are the responsibility of the CHDO, the Administrator, and their subcontractor(s). 47.2 Arizona Law 47.2.1 The CHDO and the Administrator warrant that they will comply with A.R.S. § 41-4401 (e-verify requirements) and further acknowledge that: 47.2.2 The CHDO and the Administrator and their Subcontractors and Vendors, if any, warrant their compliance with all federal immigration laws and regulations that relate to their employees and their compliance with A.R.S. § 23-214; 47.2.3 A breach of a warranty under Sub-subparagraphs 47.2.1 and 47.2.2 above shall be deemed a material breach of this Agreement and the County may immediately terminate this Agreement without liability; and 47.2.4 The County and any contracting government entities retain the legal right to inspect the papers and employment records of any employees of CHDO and the Administrator and their Subcontractors and Vendors who work on this Agreement to ensure that the CHDO and the Administrator and their Subcontractors and Vendors are complying with the warranty provided under Sub-subparagraphs 47.2.1 and 48.7.2 above and that the CHDO and the Administrator agree to make all papers and employment records of such employee(s) available during normal working hours in order to facilitate such an inspection. 48.0 GOVERNOR’S EXECUTIVE ORDER NO. 88-26 The CHDO and the Administrator are required to use the Arizona Taxonomy of Human Services for reporting and contracting purposes. 49.0 EMPLOYMENT DISCLAIMER 49.1 This Agreement is not intended to constitute, create, give rise to, or otherwise recognize a joint venture agreement, partnership, or other formal business association or organization of any kind amongst the Parties, and the rights and obligations of the Parties shall be only those expressly set forth in this Agreement. 49.2 The Parties agree that no individuals performing activities under this Agreement on behalf the either CHDO or the Administrator (or both) are to be considered a County employee, and no rights of County civil service, County retirement, or County personnel rules shall accrue to such individuals. The CHDO and the Administrator each shall have total responsibility for all its salaries, wages, bonuses, retirement, withholdings, workers’ compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and shall defend and hold the County harmless with respect thereto. 50.0 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY, AND VOLUNTARY EXCLUSION 50.1 The undersigned individuals, by signing and submitting this Agreement, indicate that they have the authority to certify the CHDO and the Administrator to the terms, representations, and warranties of this Certification. The CHDO and the Administrator, defined as the primary participant in accordance with 2 C.F.R. Part Page 21 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 376, both certify to the best of their knowledge and belief that they and their principals: 50.1.1 are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 50.1.2 have not, within a 3-year period preceding this Agreement, been convicted of or had a civil judgment rendered against them for the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of any federal or state antitrust statutes, or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 50.1.3 are not presently indicted or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with the commission of any of the offenses enumerated in Subparagraph 50.1.2) of this certification; 50.1.4 have not, within a 3-year period preceding this Agreement, had one or more public transactions (federal, state, or local) terminated for cause or default; 50.1.5 shall immediately notify the County if, at any time during the term of this Agreement, they are debarred, suspended, declared ineligible, or voluntarily excluded from participation. The County may pursue available remedies in the event of such occurrence, including immediate termination of this Agreement; and 50.1.6 shall not enter into a subcontract or sub-recipient agreement with any person or organization that is debarred, suspended, declared ineligible, or voluntarily excluded from participation. The County may pursue available remedies in the event of such occurrence, including immediate termination of this Agreement. 50.2 The CHDO and the Administrator shall include, without modification, this Certification’s language, titled “Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion” in all agreements with other contractors, in all lower tier covered transactions, and in all solicitations for lower tier covered transactions in accordance with 45 C.F.R. Part 76. 50.3 Should the CHDO and the Administrator not be able to provide this Certification, an explanation as to why shall be immediately provided to the County, Attention: Housing and Community Development Assistant Director, 234 North Central Avenue, Third Floor, Phoenix, Arizona 85004. 51.0 CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS 51.1 The CHDO and the Administrator agree that this Agreement and employees working on this Agreement will be subject to the whistleblower rights and remedies in the pilot program on contractor employee whistleblower protections established at 41 U.S.C. § 4712 by Section 828 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112–239) and Section 3.908 of the Federal Acquisition Regulation; 51.2 The CHDO and the Administrator shall inform their employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 U.S.C. § 4712, as described in Section 3.908 of the Federal Acquisition Regulation. Documentation of such employee notification must be kept on file by the CHDO and the Administrator and copies provided to the County upon request; and Page 22 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 1 General Provisions 51.3 The CHDO and the Administrator shall insert the substance of this clause, including this paragraph, in all subcontracts over the simplified acquisition threshold ($250,000 as of June 2021). 52.0 WRITTEN CERTIFICATION IN ACCORDANCE WITH A.R.S. § 35-393.01 If the CHDO and Administrator engage in for-profit activity and have 10 or more employees, and if this Agreement has a value of $100,000 or more, then the CHDO and Administrator certify they are not currently engaged in, and agree for the duration of this Agreement not to engage in, a boycott of goods or services from Israel. This certification does not apply to a boycott prohibited by 50 U.S.C. § 4842 or a regulation issued pursuant to 50 U.S.C. § 4842. 53.0 SURVIVAL The indemnification, hold harmless, defense, and non-liability provisions of this Agreement shall have full force and effect notwithstanding any other provisions in this Agreement and shall survive the termination or expiration of this Agreement. 54.0 LOBBYING 54.1 No federal appropriated funds have been paid or will be paid by or on behalf of the CHDO or Administrator (or both) 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 agreement, 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 agreement, grant, loan, or cooperative agreement. 54.2 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 any federal agreement, grant, loan or cooperative agreement, then the CHDO or Administrator (or both) shall complete and submit OMB Form-LLL, titled "Disclosure of Lobbying Activities," in accordance with its instructions and 31 U.S.C. § 1352. Page 23 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler SECTION 2 SPECIAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Page 24 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 1.0 STANDARDS The CHDO and the Administrator shall perform the work and provide the services identified in the Work Statement and the CHDO and the Administrator shall immediately notify the County whenever the CHDO or the Administrator is (or both are) unable to, or anticipate(s) an inability to, perform any of the work, or provide any of the services required by the terms of this Agreement. The CHDO and the Administrator acknowledge that any inability to perform the work and provide the services, or comply with the standards, set forth in this Agreement may subject the CHDO or the Administrator (or both) to the remedies provided in the Default and Remedies for Noncompliance established in the General Provisions. 2.0 COMPLIANCE WITH LAWS, RULES & REGULATIONS This Agreement and the Parties to it are subject to all applicable federal, state, or local laws, rules, and regulations. The CHDO and the Administrator shall comply with all applicable laws, rules, and regulations, without limitation to those designated within this Agreement. 3.0 COMPLIANCE WITH REQUIREMENTS REGARDING ELIGIBILITY FOR PUBLIC BENEFITS 3.1 The CHDO and the Administrator shall comply with state and other laws regarding eligibility for public benefits, including A.R.S. §§ 1-501 and 1-502, which state that public benefits shall only be provided to eligible applicants who are citizens of the United States, or are Qualified Non-Citizens: 3.1.1 All applicants authorized to receive public benefits must provide documentation of their lawful presence in the United States through a verification process. 3.1.2 All eligible applicants must also execute a sworn affidavit stating that the documentation provided during the verification process to prove citizenship or qualified non-citizen is true. 3.1.3 The Affidavit Demonstrating Lawful Presence in the United States or similar form shall be used to document compliance with requirements listed above. 3.1.4 Maricopa County and its subcontracted entities are required to report “discovered violations” of federal immigration law. 3.1.5 Federal public benefits are defined in A.R.S. § 1-501 as any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or by appropriated funds of the United States; and any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of the United States or by appropriated funds of the United States. 3.1.6 State or local public benefits are defined in A.R.S. § 1-502 as any grant, contract, loan, professional license, or commercial license provide by an agency of the state or local government or by appropriated funds of a state or local government; and any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of a state or local government or by appropriated funds of a state or local government. Page 25 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 3.2 Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter) that meet the following conditions are exempt from A.R.S. §§ 1-501 and 1-502: 3.2.1 deliver in-kind services at the community level, including through public or private nonprofit agencies; 3.2.2 do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient’s income or resources; and 3.2.3 are necessary for the protection of life or safety. 4.0 AUDIT REQUIREMENTS The CHDO and the Administrator each shall, at their own expense, file with the Human Services Department, Housing and Community Development Division by March 30th of each year, either audited financial statements prepared in accordance with federal single audit requirements, or financial statements of the HOME Program prepared in accordance with generally accepted accounting principles audited by an independent certified public accountant. 5.0 SPECIAL FEDERAL AND PROJECT PROVISIONS 5.1 In accordance with HUD HOME Program regulations, the CHDO and the Administrator agree to use HOME funds pursuant to the Five-Year Consolidated Plan and the Annual Action Plan as approved by HUD and all requirements of 24 C.F.R. Part 92. The CHDO and the Administrator will require that this requirement is included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and agreements under grants, loans, and cooperative agreements) and that all Subcontractors and Vendors shall certify and disclose accordingly. The Annual Action Plan is hereby incorporated by reference into this Agreement. The project activities are described in Section 3 (Work Statement). The CHDO and the Administrator shall be responsible to provide reports of all activities related to the Work Statement. The CHDO and the Administrator agree to submit to the County the following reports: 5.1.1 Project Proceeds Reports: due quarterly with supporting documentation and with each Request for Reimbursement. 5.1.2 Quarterly Performance Reports: due on the 15th of January, April, July, and October of the preceding three (3) months (i.e., the July report covers the months of April, May, and June). Reports shall address all project activities described in the Work Statement. Failure to submit timely Quarterly Performance Reports will result in suspension of reimbursement of funds requested until all reports are brought current. 5.1.3 Request for Reimbursements: The Request for Reimbursement Form must include all supporting documentation, a Match Log, and Summary of Project Proceeds/Recaptured Funds Report. The CHDO will complete the documents and submit them to the Administrator for approval. The Administrator will forward the Request for Reimbursement and all supporting documentation to the Lead Agency for payment. 5.1.4 HOME Setup Reports: due within one (1) year after the date this Agreement is fully executed. According to 24 C.F.R. § 92.250 (b): Before Setup Reports are submitted, the CHDO and the Administrator must evaluate the project in accordance with guidelines that the owner/developer has adopted for determining a reasonable level of profit or return on owner’s or developer’s investment in a project and must not Page 26 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions commit or invest any more HOME funds, alone or in combination with other governmental assistance, than are necessary to provide quality affordable housing that is financially viable for a reasonable period (at a minimum, the period of affordability in accordance with 24 C.F.R. §§ 92.252 and 92.254) and that will not provide a profit or return on the owner’s or developer’s investment that exceeds the CHDO’s and the Administrator’s established standards for the size, type, and complexity of the project. 5.1.5 HOME Completion Report: due no later than sixty (60) calendar days after final payment is requested. The HOME Completion Report must include all required documents as described in this Agreement. Within ten (10) business days after receipt of the HOME Completion Report, the County will enter project completion data into the HUD Exchange Integrated Disbursement and Information System (IDIS). The date the HOME Completion Report is entered into IDIS is the date the affordability period commences for each activity. 5.1.6 Initial Request for Reimbursement form: with required documentation for each activity is due within 45 (forty-five) days after submitting a HOME Setup Report. 5.1.7 Other HUD: required reporting data as applicable. 6.0 PROGRAM INCOME PROJECT PROCEEDS Project proceeds may be retained and used by the CHDO and the Administrator for HOME-eligible or other housing activities that benefit low-income families, as outlined in 24 C.F.R. Part 92. The CHDO and the Administrator will submit a Project Proceeds report with each request for reimbursement. 7.0 REAL PROPERTY ACQUIRED OR IMPROVED WITH HOME FUNDS Upon expiration of this Agreement, any real property under the CHDO’s control that was acquired or improved in whole or in part with HOME funds must be occupied by low- or very-low income households (or both) and in compliance with HOME occupancy limits and must meet the requirements to qualify as affordable housing subject to encumbrances and obligations described in any applicable recorded deed restrictions. The option to use deed restrictions must include a period of affordability set forth in 24 C.F.R. §§ 92.252 and 92.254. 8.0 DE-OBLIGATION 8.1 The County may de-obligate funds under this Agreement under any one or more of the following circumstances upon written notice to the CHDO and the Administrator: 8.1.1 The CHDO and the Administrator complete performance under the Work Statement without using all funds provided by the County under this Agreement; 8.1.2 The County’s original allocation was a loan and the CHDO and the Administrator paid the loan; 8.1.3 A Program activity under the Work Statement is cancelled or changed for reasons other than non-performance; or 8.1.4 This Agreement has been terminated. 9.0 REDUCTION IN FUNDS 9.1 The County, through an Amendment, may reduce Agreement funds under either of the following circumstances: Page 27 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 9.1.1 The County determines that the CHDO and the Administrator failed to utilize the funds provided by this Agreement in compliance with the terms and conditions outlined herein; or 9.1.2 The CHDO and the Administrator failed to perform in accordance with Section 3 (Work Statement) and identified timelines. 10.0 REPAYMENT OF FUNDS The CHDO and the Administrator shall repay funds that are defined as unallowable costs under applicable laws and regulations. This repayment obligation extends to, but is not limited to, questioned costs identified in either a monitoring review or Single-Audit report. Repayment of funds is required by HUD for failed projects during the period of affordability for projects financed under this Agreement. The County may specify in writing the terms of the repayment or alternative terms in lieu of repayment. However, in no case shall repayment or alternative terms be accomplished later than one hundred eighty (180) calendar days following the written determination by the County of noncompliance. 11.0 ADMINISTRATIVE REQUIREMENTS 11.1 The County is responsible for ensuring HUD HOME Program funds are administered in accordance with the HOME regulations, 24 C.F.R. Part 92. The County shall monitor the CHDO’s and the Administrator’s activities to ensure compliance with the following: 11.1.1 FINANCIAL RECORDS: accounting system and financial records comply with the applicable requirements and standards of 2 C.F.R. Part 200. and are subject to monitoring from time to time by the either the County or by HUD. 11.1.1.1 The CHDO and the Administrator agree to adhere to accounting principles and procedures, to utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. The CHDO and the Administrator further agree to maintain an adequate accounting system that provides for appropriate grant accounting (including calculation of project proceeds). 11.1.1.2 The CHDO and the Administrator shall adhere to applicable audit requirements as described in, and in accordance with, 2 C.F.R. Part 200. In addition, the CHDO and the Administrator must provide annual single-audit reports or annual audited financial statements to the County. 11.1.1.3 The CHDO and the Administrator shall adhere to the repayment of investment requirements set forth in 24 C.F.R. § 92.503. Any HOME Funds invested in housing that do not meet the affordability requirements for the period specified in either 24 C.F.R. § 92.252 or § 92.254, as applicable, must be repaid in accordance with 24 C.F.R. § 92.503(b)(3). 11.1.2 DOCUMENTATION AND RECORD KEEPING 11.1.2.1 Records to be Maintained: The CHDO and the Administrator shall maintain all records required by the federal regulations specified in 24 C.F.R. § 92.508 that are pertinent to the activities to be funded under this Agreement. Such records shall include, but not be limited to, records: 11.1.2.1.1 Demonstrating that the CHDO is and remains a qualified CHDO; Page 28 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 11.1.2.1.2 Providing a full description of each activity undertaken and its impact; 11.1.2.1.3 Required to determine the eligibility of activities; 11.1.2.1.4 Demonstrating compliance with environmental review requirements; 11.1.2.1.5 Required to document the acquisition, improvement, use, or disposition of real property acquired or improved with HOME assistance (Properties retained shall continue to meet eligibility criteria); 11.1.2.1.6 Demonstrating citizen participation; 11.1.2.1.7 Demonstrating compliance regarding acquisitions, displacement, relocation, and replacement housing; 11.1.2.1.8 Demonstrating continuing compliance for all activities and compliance with recapture provisions of the affordability standards; 11.1.2.1.9 Documenting compliance with the fair housing and equal opportunity components of the HOME Program; 11.1.2.1.10 Required by 24 C.F.R. § 570.502, 2 C.F.R. Part 200, and OMB Circulars; 11.1.2.1.11 Other records necessary to document compliance with HOME Program requirements; 11.1.2.1.12 Documenting compliance with Section 3 of the Housing and Urban Development Act of 1968 and implementing regulations at 24 C.F.R. § 75.19, regardless of whether Section 3 language is included in subrecipient or other agreements; 11.1.2.1.13 Demonstrating compliance with deeds of trust, promissory notes, and forgivable loans; 11.1.2.1.14 Supporting that the CHDO and the Administrator have maintained client data demonstrating all clients served have met the income and other criteria required by federal law and that no unlawful discrimination occurs in the solicitation or selection process of low-income persons or groups and that no conflict of interest exists, as described in 24 C.F.R. § 92.356; 11.1.2.1.15 Documenting compliance with underwriting and subsidy layering requirements, including the requirement that the CHDO and the Administrator will not invest any more HOME funds in combination with other federal assistance than is necessary to provide affordable housing, as described in 24 Page 29 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions C.F.R. § 92.250 and further described in HUD Notice CPD 15-11; and 11.1.2.1.16 Demonstrating compliance with federal, state, and local laws and regulations, including compliance with A.R.S. §§ 1-501 and 1-502. 11.1.2.2 Outcome Measures – The CHDO and the Administrator shall maintain data that supports the accomplishment of the desired outcomes as indicated in the Work Statement. 11.1.2.3 Disclosure – The CHDO and the Administrator understand that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the County’s or the CHDO’s and the Administrator’s responsibilities with respect to services provided under this Agreement, is prohibited unless written consent is obtained from such person receiving service. 11.1.2.4 Program Activity Reports – Such reports as required by the County including, but not limited to, HOME Setup/Completion Reports, Quarterly Performance Reports, Quarterly Project Proceeds Reports, Match Reports, MBE/WBE information, and other HUD-required reporting data, as applicable, shall be submitted at the completion of each Program that is described under the Work Statement. 11.1.2.5 Audits and Inspections – All of the CHDO’s and the Administrator records with respect to any matters covered by this Agreement shall be made available to the County, its designees, and the federal government, at any time during normal business hours, as often as the County deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any relevant deficiencies noted in audit reports shall be addressed by the CHDO and the Administrator within 45 days after receipt by the CHDO and the Administrator. Failure of the CHDO and the Administrator to comply with the above audit requirements shall constitute a violation of this Agreement and may result in the withholding of future payments. The Annual Audit requirement is applicable to all levels of funding received by the CHDO and the Administrator under this Agreement, even if the level of funding is less than the current thresholds cited in 2 C.F.R. § 200.501. 11.1.2.6 Performance Monitoring – The County and the Administrator will monitor the CHDO to determine whether HOME funded activities are implemented and administered in accordance with all applicable federal requirements and gauge performance of the CHDO against goals and performance standards required in this Agreement. The CHDO shall ensure that all required files and documentation are available at scheduled monitoring visits. The failure of the CHDO to administer, implement, and perform as determined by federal regulations and by the County shall Page 30 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions constitute non-compliance with this Agreement. Non- compliance is a violation of this Agreement and may result in the withholding of future payments. 12.0 ENVIRONMENTAL REVIEW CONDITIONS 12.1 Completion of the Environmental Review Record (ERR) is mandatory before taking any physical action on a site or entering into choice-limiting contracts. Only exempt activities such as administration may be taken and reimbursed by the County prior to receiving a written release of HOME funds to the CHDO and the Administrator. Exempt activities described in 24 C.F.R. § 58.34(a)(1) - (11) are activities that generally have no physical impact on the environment. If federal funds are involved in an activity, then neither federal nor non-federal funds may be expended or committed by contract (conditional or not) for property acquisition, rehabilitation, conversion, lease, repair, or construction activities until HUD or both HUD and the County provides the CHDO and Administrator with written authorization based on approval of an ERR. 12.2 An option agreement (to purchase land or a single-family residence) on a proposed site or property is allowable prior to the completion of the environmental review if the option agreement is contingent upon a HUD authorization to use funds based on the completion of the ERR. The cost of the option must be a nominal portion of the purchase price. 12.2.1 The CHDO and the Administrator agree to comply with: The National Environmental Policy Act of 1969 (P.L. 91-190) pursuant to 40 C.F.R. §§ 1500 – 1508; Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities pursuant thereto Title 24 C.F.R. Part 58, Subpart A; CPD Notice 01-11 HOME Environmental Review Requirements; and all conditions required in the process of the environmental assessment. 12.2.2 Air and Water - The CHDO and the Administrator shall comply with the following requirements insofar as they apply to the performance of this Agreement: 12.2.2.1 Clean Air Act, 42 U.S.C. § 7401, et seq., as amended. 12.2.2.2 Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251, et seq, as amended, Section 1318 relating to inspection, monitoring, entry, reports, and information, and all regulations and guidelines issued thereunder. 12.2.2.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. Part 50, as amended. 12.2.2.4 The CHDO and the Administrator agree to comply with conditions set forth by the Air Quality Department or other County agency, as required. 12.2.2.5 Flood Disaster Protection - In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. § 4001), the CHDO and the Administrator shall ensure that for activities located in an area identified by 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. The CHDO and the Administrator shall require the homeowner to obtain and Page 31 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions maintain flood insurance as a condition of funding, or funds shall not be utilized. 12.2.2.6 Historic Preservation - The CHDO and the Administrator shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966 (54 U.S.C. § 300101, et seq.) and the procedures set forth in 36 C.F.R. § 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. 12.2.2.7 Release of Funds (ROF) - No funds may be encumbered prior to the completion of the Environmental Review. The ERR must be completed before any funds are obligated. Funding also is conditioned upon the completion of the ERR of every activity site by address. The responsibility for certifying the appropriate ERR and ROF shall rest with the County. It is the responsibility of the CHDO and the Administrator to notify the County and to refrain from making any commitments and expenditures on a site until a ROF has been issued by the County. Failure to meet these conditions will mean that requested funds will not be disbursed. 13.0 ADDITIONAL CERTIFICATIONS, WARRANTIES, AND AGREEMENTS 13.1 The CHDO agrees to undertake the same obligations as the County has undertaken to HUD pursuant to the County’s Annual Action Plan (included in this Agreement by reference) and shall adhere to the federal Certifications reference below, including Attachment 1 - Certification for a Drug-Free Workplace (HUD form 50070) and Attachment 2 - Certification of Payments to Influence Federal Transactions (HUD form 50071). The CHDO and the Administrator shall hold the County harmless, defend, and indemnify the County against any damage or other liability that the County may incur with respect to HUD as a result of any failure on the part of the CHDO and the Administrator. 13.2 The CHDO and the Administrator agree: 13.2.1 To ensure that the total HOME investment in each unit does not exceed the maximum per unit subsidy (24 C.F.R. § 92.250) for the area in which the property is located. This limit is updated annually. Refer to Attachment 3 of this Agreement. 13.2.2 To ensure that the period of affordability imposed on the project reflects the per unit subsidy limit. The minimum affordability period is five years for HOME subsidies of less than $15,000 per unit; ten years for subsidies of $15,000 to $40,000; and 15 years for subsidies greater than $40,000. 13.2.3 To ensure that the annual Homeownership Value Limits are not exceeded. HOME funds for homebuyer assistance or single-family rehabilitation projects must have an initial purchase price that does not exceed 95% of the median purchase price for Maricopa County. These limits apply to homeownership units assisted with HOME funds for the following single-family activity types: new housing construction for resale; homebuyer assistance; acquisition with rehabilitation for resale; and owner-occupied housing rehabilitation. Page 32 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions This limit is updated annually. Refer to Attachment 3 of this Agreement. 13.2.4 To utilize and make available the HOME funds in conformity with the non-discrimination and equal opportunity requirements set out in the HUD regulations in the National Housing Affordability and Stability Act (24 C.F.R. §§ 92.350 - 92.454), which include: 13.2.5 Implementation of the Fair Housing Act, (42 U.S.C. § 3601, et seq.), and implementing regulations at 24 C.F.R. Part 100 (discriminatory conduct under the Fair Housing Act), Executive Order 11063 (Equal Opportunity in Housing) as amended by Executive Order 12259 (leadership and coordination of fair housing in federal programs) and implementing regulations at 24 C.F.R. Part 107 (nondiscrimination and equal opportunity in housing under Executive Order 11063), and Title VI of the Civil Rights Act of 1964 (42 U. S. C. § 2000d, et seq.), and implementing regulations at 24 C.F.R. Part 1 (Nondiscrimination in Federally Assisted Programs of HUD); 13.2.6 Affirmatively further fair housing, which includes taking appropriate actions to overcome the effects of any impediments identified in the County’s “Analysis of Impediments to Fair Housing Choice” and maintain records reflecting any actions taken in regard to fair housing; 13.2.7 Adhere to Executive Order 13166 (Improving Access to Services for Persons with Limited English Proficiency) in accordance with Title VI of the Civil Rights Act of 1964; 13.2.8 Implementation of the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. § 6101, et seq.) and the regulations at 24 C.F.R. Part 146 (nondiscrimination on the basis of age in HUD programs or activities receiving federal financial assistance); 13.2.9 Implementation of the prohibitions against discrimination on the basis of handicap under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794, et seq.) and implementing regulations at 24 C.F.R. Part 8 (nondiscrimination based on handicap in federally assisted programs and activities of HUD) and the Americans with Disabilities Act 1990 (42 U.S.C. § 12101, et seq.); 13.2.10 Implementation of the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701u) (Employment Opportunities for Business and Lower Income Persons in Connection with Assisted Activities); 13.2.11 Implementation of the requirements of Executive Orders 11625 and 12432 regarding MBE development and 12138 regarding WBE, and 24 C.F.R. § 85.36 (e) and of Section 281 of the National Housing Affordability and Stability Act; and 13.2.12 Implementation of the requirements of 24 C.F.R § 5.106 Equal access in accordance with the individual’s gender identity in community planning and development programs. 13.3 The CHDO and the Administrator agree that they will prepare and adopt acceptable procedures and requirements for affirmatively marketing units in the HOME Activities, when HOME Program-assisted housing contains five (5) or more rental units, by providing information about the availability of HOME Program- Page 33 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions assisted units that are vacant at the time of completion or that later become vacant. The CHDO and the Administrator shall make good faith efforts to provide information and to otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market to the available housing during the period of affordability. These procedures and requirements are not applicable when units are occupied by families referred from a Public Housing Authority's (PHA) waiting list, or to families receiving tenant-based rental assistance provided from HOME funds. 13.4 HOME funds may not be used for operations or modernization of public housing projects financed under the Housing Act of 1937. 13.5 The County, as the participating jurisdiction, assumes all the responsibilities for environmental review, decision making, and action under the National Environmental Policy Act of 1969 (42 U.S.C. § 4321) and the other provisions of the law that would apply to HUD were HUD to undertake such Activities as Federal Activities in accordance with 24 C.F.R. Part 58 (environmental review procedures for entities assuming HUD environmental responsibilities). The County will assume the responsibilities for the Request for Release of Funds. The CHDO and the Administrator agree not to commit or incur expenditures for HOME activities until this environmental review process has been completed. Should it be determined that the CHDO and the Administrator have incurred expenses in violation of the NEPA requirements, the CHDO and the Administrator will be responsible for the full costs for such expenditures and repayment of any related reimbursements. The CHDO and the Administrator shall provide all necessary assistance to the County in completing this environmental review process. 13.6 The CHDO and the Administrator agree to comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. §§ 4601-4655) and the governmental implementing regulations at 49 C.F.R. Part 24; and follow a residential anti-displacement and relocation assistance plan required under §104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding as they apply to the HOME Program. 13.7 The CHDO and the Administrator shall comply with the Davis-Bacon Act (40 U.S.C. § 3141, et seq.), Contract Work Hours and Safety Standards Act (40 U.S.C. § 3701, et seq.) related acts, and the provisions of 24 C.F.R. Part 24 regarding Government Debarment and Suspension as they apply to this HOME Program. 13.8 The CHDO and the Administrator shall comply with the Flood Disaster Protection Act of 1973 (42 U.S.C. § 4001, et seq.) as they apply to this HOME Program. 13.9 The CHDO and the Administrator shall comply with the Drug-Free Workplace Act of 1988 as it applies to the HOME Program. 13.10 Housing assisted with HOME Program funds constitutes HUD-assisted housing for the purposes of the Lead-Based Paint Poisoning Prevention Act (42. U.S.C. §, 4851) and is therefore subject to 24 C.F.R. Part 35. 13.11 No person who is an employee, agent, consultant, officer or elected official, or appointed official who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who is in a position in a decision making process or gains inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, either for himself/herself or those whom the person has family or business ties, during his/her tenure or for one year thereafter. Page 34 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 14.0 SUBCONTRACTS AND VENDORS 14.1 Approvals – Unless expressly authorized in this Agreement, exempt activities such as architectural, engineering, and administration may not be undertaken and reimbursed by the County prior to receipt of HUD Request Release of Funds (RROF). Exempt activities described in 24 C.F.R. § 58.34(a)(1)-(12) are activities that generally have no physical impact on the environment. Otherwise, the CHDO and the Administrator shall not expend or commit federal or non-federal funds by contract (conditional or not) for property acquisition, rehabilitation, conversion, lease, repair or construction activities, until HUD has provided written authorization based on approved ERR. Any pre-Agreement costs entered into by subcontract with any agency or individual in the performance of this Program that are not exempt activities without Release of Funds (ROF) from the County prior to the execution of such Agreement. 14.2 DUNS Number – All Subcontractors shall have a valid DUNS number and an active profile in the federal System for Award Management, or SAM. 14.3 Fees – The CHDO and the Administrator and all Subcontractors under this Agreement shall not charge servicing, origination, or other fees for the costs of administering the HOME Program, except as permitted by 24 C.F.R. § 92.214(b)(1). 14.4 Selection Process – The CHDO and the Administrator shall ensure that all subcontracts in the performance of this Agreement are awarded on a fair and open competitive basis. Executed copies of all subcontracts shall be forwarded to the County along with documentation, if requested, concerning the selection process. 14.5 Section 3 of the Housing and Urban Development Act of 1968 – The CHDO and the Administrator shall include the Section 3 clause in every subcontract and shall take appropriate action pursuant to the subcontract upon a finding that a Subcontractor is in violation of regulations issued by HUD. The CHDO and the Administrator shall not subcontract with any entity where either the CHDO or the Administrator has (or both have) notice or knowledge that the entity has been found in violation of the regulations under 24 C.F.R. § 75.19. The CHDO and the Administrator have the responsibility of determining Section 3 eligibility. 14.6 Monitoring – The CHDO and the Administrator shall monitor/review all subcontracted services to assure contract compliance. Results of monitoring efforts shall be summarized in Quarterly Performance Reports and supported with documented evidence, if requested, of follow-up actions taken to correct areas of noncompliance. 15.0 THE COUNTY CERTIFIES 15.1 That a public purpose is served by the County contracting for activities identified in Section 3 (Work Statement). 15.2 That the HOME Program funds designated for the Work Statement activities constitute reasonable and prudent assistance. 16.0 THE ADMINISTRATOR AGREES TO 16.1 Complete and submit to the County all Environmental Reviews (ERs) in a timely manner. 16.2 Provide technical assistance to the CHDO on a continuing basis. 16.3 Approve all Requests for Reimbursement, review all requests for Amendments, and make recommendations to the County in a timely manner. 16.4 Monitor timely implementation of the CHDO’s project, including encumbrance obligations, and make recommendations for compliance. Page 35 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 16.5 Keep the Maricopa HOME Consortium informed of progress toward goals. 16.6 Serve as the lien holder for all real estate developed, if applicable. 16.7 At the completion of the project, provide a close out memo detailing the on-going HOME requirements and responsibilities for the affordability period. 17.0 PROGRAM COMPLETION 17.1 Upon completion of the Agreement activities, any Agreement funds not expended shall be retained by the County for reallocation as defined by the Maricopa HOME Consortium Policies and Procedures. 17.2 The disposition of any property purchased during the term of this Agreement shall follow Section 1 (General Provisions), Paragraph 46.0 (Property). 17.3 The CHDO and the Administrator shall continue to be responsible for compliance activities until all HOME Program requirements and contractual obligations are met, including affordability restrictions. The CHDO’s and the Administrator’s obligations shall not end until all close-out requirements are completed. The County will notify the CHDO and the Administrator in writing that a Completion Report is due to the County within sixty (60) days after one of the following occurrences: 17.3.1 Funds have been expended for the activity; 17.3.2 The Work Statement has been completed; 17.3.3 This Agreement has expired; or 17.3.4 The Agreement has otherwise been terminated. 17.4 Following the receipt and approval of the Completion Report for each activity, the County will notify the CHDO and the Administrator in writing that each activity is closed. In compliance with 24 C.F.R. § 92.502(d), all project completion data shall be entered into IDIS by the County within 120 days after the final drawdown. Project completion means projects have all necessary title transfer and construction work completed, projects comply with HOME requirements including property standards set forth at 24 C.F.R. § 92.251, the final draw has been disbursed, and the projection completion data has been entered into IDIS. 17.5 For the purposes of a rental project, the following shall apply: 17.5.1 The project shall be completed when the site receives a Certificate of Occupancy; 17.5.2 It is not required for a beneficiary to be identified for the project to be considered complete. Vacant rental units may be marked as vacant when completion data is entered into IDIS. 17.5.3 If any rental unit remains unoccupied six (6) months after the date of project completion, the CHDO and the Administrator must provide the County information about marketing efforts to place occupants in the unit and, if appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible. 17.5.4 Within eighteen (18) months after the date of project completion, if efforts to market the unit are unsuccessful and the unit is not occupied by an eligible beneficiary (or beneficiaries), the CHDO and the Administrator shall be required to repay all HOME funds invested in the unit. 18.0 FAILURE TO MAKE PROGRESS 18.1 The failure of the CHDO and the Administrator to make progress according to the Work Statement may result in the termination of this Agreement, de-obligation of funds, or recapture of funds. The CHDO and the Administrator agree to meet with Page 36 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions the County at the site at which the funded activity is to take place to discuss progress and allow the County to provide technical assistance if: 18.1.1 The CHDO and the Administrator fail to complete an Environmental Review pursuant to Section 2 (Special Provision) Paragraph 12.0 (Environmental Review Conditions) within one hundred and eighty (180) calendar days after the date this Agreement is executed; 18.1.2 The CHDO and the Administrator fail to commit funds to a specific local project in accordance with the terms of this Agreement within eighteen (18) months after the date of full execution of this Agreement. Commit for the purposes of this paragraph shall have the same meaning as in 24 C.F.R. § 92.2(2)(i)-(iii). 18.1.3 The CHDO and the Administrator fail to expend HOME funds in performance of project activities in accordance with the terms of this Agreement within twenty-four (24) months after the date of full execution of this Agreement. 18.1.4 Within six (6) months after the date of project completion, if a unit remains unoccupied, then the CHDO and the Administrator must provide the County information about current marketing efforts and, if appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible. Within 18 months from the date of project completion, if efforts to market the unit are unsuccessful and the unit is not occupied by an eligible tenant, then HUD will require repayment of all HOME funds invested in the unit. A unit that has not served a low- or very low-income household has not met the purpose of the HOME program. Therefore, the costs associated with the unit are ineligible. This tracking provides the County with early notice of any units at risk of going unoccupied as described in 24 C.F.R. § 92.252. 18.2 The County will terminate this Agreement and recapture funds, if the CHDO and the Administrator do not perform the activities described in the Work Statement of this Agreement. The County, in its sole discretion, may forgo providing technical assistance and require repayment of funds as outlined in this Agreement under Section 1 (General Provisions), Paragraph 5.0 (Termination), or terminate the Agreement for cause under Section 1 (General Provisions), Paragraph 5.0 (Termination). 19.0 GENERAL CONDITIONS 19.1 Administrative Change Orders – The Chairman of the Board of Supervisors is authorized upon the recommendation of the Human Services Department Director and Legal Counsel to make changes within the general scope of the Agreement on behalf of the County through Administrative Change Orders. Administrative Change Orders shall be approved and fully executed by the Chairman of the Board of Supervisors and the City. Administrative Change Orders may address any of the following areas: 19.1.1 Administrative Change Orders may address any of the following areas: 19.1.1.1 Modifications to the project timeline if the last day of the project timeline is within the Agreement term; 19.1.1.2 Modifications to Budget line items if the Agreement Amount remains unchanged; 19.1.1.3 Modifications required by federal, state, or County regulations, ordinances, or policies; Page 37 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 2 Special Provisions 19.1.1.4 Modifications to administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by HUD or local regulations, policies, or requirements; and 19.1.1.5 Modifications to Administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by HUD or by local regulations, policies, or requirements. 19.1.2 It is the responsibility of the City to ensure the latest documents are consulted and followed. 19.2 Addenda: 19.2.1 The CHDO and the Administrator shall submit to the County an Addendum when each property has been identified and will be acquired by the CHDO and the Administrator for rehabilitation activities under this Agreement. A sample Addendum is attached as Attachment 4; and 19.2.2 All Addenda shall be integrated into this Agreement. 19.3 It is the responsibility of the CHDO and the Administrator to ensure the latest documents are consulted and followed. 20.0 REVERSION OF ASSETS Unexpended funds must be de-obligated and returned to the County for reallocation. At the expiration of this Agreement, the County, upon recommendation of the Maricopa HOME Consortium staff, may reallocate any unencumbered funds per the Consortium reallocation policy, as stated in the Maricopa HOME Consortium Intergovernmental Three- year Cooperative Agreement. A written letter to de-obligate funds will be sent to the CHDO from the County a minimum of ninety (90) calendar days prior to termination of this Agreement. 21.0 VIOLENCE AGAINST WOMEN REAUTHORIZATION ACT of 2013 The CHDO and the Administrator must comply with VAWA 2013, which applies to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation, and which must be applied consistent with all nondiscrimination and fair housing requirements. The CHDO must give a Notice of Occupancy Rights to tenants and applicants to ensure they are aware of their rights under VAWA, maintain an emergency transfer plan, and document incidents of domestic violence, dating violence, sexual assault, and stalking. Page 38 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler SECTION 3 WORK STATEMENT MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Page 39 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 3 Work Statement MARICOPA COUNTY HOME Investment Partnerships Program Work Statement Program Year 2020 DUNS Number CHDO: 022225143 DUNS Number Administrator:077524981 Project: Newtown-Chandler Community Land Trust Acquisition/Resale Type of Property: Single Family Residential 1.0 FUNDING CHDO 2020 CASH MATCH OTHER TOTAL HOME RESOURCES BUDGET FUNDS $212,987 $860,280 $1,073,267 2.0 SCOPE OF WORK 2.1 Project Description: Acting in the capacity of a developer, the CHDO will acquire and rehabilitate two (2) single-family houses in Chandler. The property will be acquired with CHDO’s line of credit, following completion of environmental review requirements. This is a scattered-site homeownership project and will target zip codes 85224, 85225, and 85226 to be supplemented by the specific street address. Parties agree to execute an Addendum once properties are identified. Addenda to this Agreement identifying individual properties by street address for participation in the Newtown-Chandler Community Land Trust Program (CLT) will be executed before funding is made available. Funds will be paid to CHDO and the Administrator only after the CHDO and the Administrator have met the Commitment requirements as set forth in 24 C.F.R. § 92.2 (1) and (2), respectively, and are prepared to commence construction within twelve months. 2.2 Project Purpose: The Project will create homeownership opportunities for low- income households, which is a high priority in the Consolidated Plan. The completed units shall be sold through the CHDO’s (CLT) program in which the buyer purchases the improvements only and enters into a 99-year CLT Ground Lease with the CHDO. The CLT Ground Lease contains provisions that require the housing to be used as the buyer’s principal residence and restricts resale/transfer only to Low-Income buyers. In addition, the CLT Ground Lease has a shared- appreciation provision that limits the sale price of the housing and helps ensure affordability for future buyers. 2.3 Project Beneficiaries: Two (2) first-time homebuyers at or below 80% of the area median income level. The CHDO will secure affordability through the Resale Provisions. The CHDO shall ensure the beneficiaries are income-eligible and comply with 24 C.F.R. § 92.203(d)(1). The eligible buyer will be required to complete an approved homebuyer education class and homeownership counseling. The homeownership counseling services provided must meet the definition of housing counseling as defined at 24 C.F.R. Part 5.100. The content and process of housing counseling must meet the standards outlined in 24 C.F.R. part 214. Eligible buyers also will be required to complete a CLT orientation, at which time the ground lease, resale restrictions, shared equity, and all other provisions of the CLT program shall be fully explained. Page 40 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 3 Work Statement 2.4 Project Staff: The CHDO shall maintain staff qualified to perform the duties of the project. The CHDO shall immediately notify the Administrator and the County regarding any changes in staff committed to the CHDO project. The Administrator and the County reserve the right to review the qualifications of new staff committed to the CHDO project after the execution of this Agreement. The CHDO will be responsible for all communications with the Administrator and the Maricopa HOME Consortium, providing all updates and as requested. In addition, any complaints will be the responsibility of the CHDO. 2.5 Subcontractors: The CHDO, as the developer on this project, will oversee every aspect of the project. This oversight includes, but is not limited to, day-to-day operations; preparing budgets; managing the budget, timeline, and change orders; issuing a Request for Proposal and selecting the general contractor and Subcontractors. The CHDO shall select subcontractors in accordance with the Administrative Requirements of this Agreement. The CHDO shall contract with responsible and qualified subcontractors to perform the duties of the project. The CHDO shall verify the qualifications of each subcontractor through license verification, references, and SAM.gov. 2.6 Funds for rehabilitation are obligated by completing a detailed set of plans and specifications (work write-up) and completing a detailed construction/rehabilitation cost estimate based upon those specifications. Such cost estimate may include a contingency for construction change orders of up to 15% for rehabilitation and up to 5% for new construction. The property must be free from any defects that pose a danger to the health and safety of occupants and must meet written rehabilitation standards and local codes and ordinances at project completion. Copies of the final inspection must be retained in the project files and provided to the County upon submitting a completion report. 2.7 Period of Affordability: Resale provisions will be used to ensure compliance with the Period of Affordability required by HUD at 24 C.F.R. § 92.254. The affordability restrictions will be secured by a CLT Ground Lease and a Declaration of Affirmative Land Use Restrictions. 2.8 The completed units shall be sold through the CLT program in which the buyer purchases the improvements only and enters into a 99-year CLT Ground Lease with the CHDO. The CLT Ground Lease shall contain provisions that require the housing to be used as the buyer’s principal residence and restricts resale/transfer only to Low-income families. In addition, the CLT Ground Lease has a shared- appreciation provision that limits the sale price of the housing and helps ensure affordability for future buyers. A Memorandum of Ground Lease and Right of First Refusal shall be recorded. A Performance Deed of Trust also shall be recorded and name the CHDO as the beneficiary. The foregoing ensures that the CHDO is notified in the event the owner of the improvements attempts to either refinance or transfer the property. 2.9 The shared-appreciation provision conforms to Maricopa HOME Consortium Recapture/Resale Provisions: The “Fair Return” for leasehold properties is defined as the lessee’s purchase price, plus 25% of the lessee’s share of the increase in leasehold value at time of resale based on a leasehold valuation performed by a duly licensed appraiser. 2.10 Declaration of Affirmative Land Use Restrictions: Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictive Covenant for HOME Project shall be executed between the Administrator and the CHDO and recorded against the land to secure the Period of Affordability as required by HUD. The Period of Affordability is based on the total amount of HOME funds invested in the housing. Page 41 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 3 Work Statement 3.0 OBJECTIVES AND OUTCOMES: OUTCOMES OBJECTIVE AVAILABILITY/ AFFORDABILITY SUSTAINABILITY ACCESSIBILITY Homebuyer Activities, Single-Family Acq/Rehab of rental DECENT Housing Rehab and housing, Acq/New Housing Activities in a HOUSING Emergency Rehab, Construction of rental targeted revitalization Homebuyer housing, Expansion of area Assistance assisted rental units in the private marketplace 4.0 LOGIC MODEL: PERFORMANCE INDICATORS INPUTS/ OUTPUTS RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES CHDO staff, Acquisition, Two households Increased Decent funding, rehabilitation, affordable housing housing. contractors and resale for low- income families. Increased homeownership. Improved neighborhoods and quality of life. 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES COMPLETION MILESTONES: Tasks to be Performed DATE Application/market study 12/06/2019 Execute third party agreement for HOME funds 07/15/2021 Site selection 03/31/2022 Environmental Review approval 03/31/2022 Homeownership counseling/buyer preparation 04/30/2022 Acquisition 03/31/2022 Work write-ups and bid selection 04/30/2022 Homebuyer financing secured 04/30/2022 Rehabilitation 04/30/2022 Resale of properties to homeowners 04/30/2022 Final Close-out /Project Completion Form 03/31/2022 Any change to the Timeline will need to be approved by the County. Page 42 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 3 Work Statement 6.0 ACTIVITY BUDGET SUMMARY: ACTIVITY PY2020 TOTAL Additional HOME ACTIVITY Sources FUNDS BUDGET Acquisition $212,987 $511,543 $724,530 Land $4,028 $4,028 Inspections, title, appraisal $1,611 $1,611 Legal fees $4,833 $4,833 Rehabilitation construction cost $140,700 $140,700 Development Costs: Loan interest, taxes, insurance, utilities, resale title & closing, realtor fees. $60,300 $60,300 Developer Fee (address specific project delivery) $93,265 $93,265 Down Payment Assistance $44,000 $44,000 TOTALS $212,987 $860,280 $1,073,267 6.1 Note: A total of $3,000 per activity will be withheld from the total amount of HOME funds obligated to each activity/address. $1,500 may be reimbursed upon completion of rehabilitation/new construction (Certificate of Occupancy) and a signed purchase contract with a qualified buyer. The final $1,500 will be reimbursed when a completion form is submitted by the CHDO to the County. 6.2 Additional Sources: CHDO Line of Credit and cash. 7.0 ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE Federal Home Loan Bank of $162,000 WISH/IDEA Funds San Francisco 8.0 SALES PRICE: 8.1 To ensure the homes are affordable for the target income group, the sales price shall be calculated so that each buyer’s monthly housing expenses (including principal, interest, property taxes, and home insurance) does not exceed 35% of the buyer’s gross monthly household income, unless there are documented compensating factors. In addition, the housing will have a purchase price that does not exceed 95% of the median purchase price for the area as described in 24 C.F.R. § 92.254 (a)(2). Refer to Attachment 3 to this Agreement. 8.2 The buyer may obtain a mortgage loan with a fixed-term and interest rate, and lender fees may not exceed 5% of the mortgage amount. The income of the buyer shall be determined according to the requirements at 24 C.F.R. § 92.203. 9.0 CHDO PROJECT PROCEEDS: 9.1 All proceeds generated from the CHDO development activities shall be considered Project proceeds and subject to the Project proceeds requirements set forth in HOME Program regulations. Project proceeds shall be tracked by the CHDO and reported to the Administrator. Documentation supporting the amount of Project Page 43 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 3 Work Statement proceeds received and expended shall be submitted to the Administrator and the County. Project proceeds shall be retained and expended by the CHDO for either the construction of additional properties under this Agreement or other HOME- eligible activities, in both cases with prior approval from the Administrator and the County. 10.0 CONVERSION TO RENTAL: If the acquired property under this Agreement has not been sold to an eligible homebuyer within nine (9) months after the receipt of a Certificate of Occupancy, then it must be converted to a HOME rental unit that complies with all HOME requirements for the period of affordability applicable to such rental units according to 24 C.F.R. § 92.254(a)(3). If the vacant property is not converted, then the HOME funds must be repaid to the County. Page 44 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler SECTION 4 COMPENSATION MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Page 45 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 4 Compensation 1.0 COMPENSATION 1.1 The CHDO and the Administrator will only utilize HOME funds to pay for eligible activities and costs of those activities permitted in 24 C.F.R. § 92.300 and not specifically prohibited under 24 C.F.R. § 92.214 (Prohibited Activities and Fees). 1.2 The CHDO and the Administrator shall be reimbursed utilizing the Catalog of Federal Domestic Assistance (CFDA): 14.239, HOME Investment Partnerships Program provided to the County through the U.S. Department of Housing and Urban Development (HUD). 1.3 Subject to the availability and authorization of funds for the explicit purposes set forth below, the County will pay the CHDO and the Administrator compensation for services rendered as indicated in the following paragraphs. 1.4 The CHDO and the Administrator shall not retain any funds drawn down in excess of immediate cash needs (to be used within 15 calendar days after drawdown) to cover subsequent requests for reimbursement. Any excess funds must be returned to the County within 30 days after receipt. The CHDO and the Administrator also must return to the County any interest that is earned on those funds that are drawn down and not expended for eligible costs within 15 days after the funds have been draw down. 2.0 METHOD OF PAYMENT 2.1 The CHDO and the Administrator agree to submit reimbursement requests utilizing the approved Reimbursement Request Form to the County, along with the Match Log Certification Form. The CHDO and the Administrator may request funds only after the CHDO and the Administrator have satisfied the funding contingencies and federal Environmental Review conditions and have a written agreement in place for Project activities. Requests for reimbursement must be made using the request for payment incorporated in this Agreement. 2.2 The CHDO and the Administrator may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount needed. Program income must be disbursed before the CHDO and the Administrator request funds from the County. 2.3 The County agrees to reimburse the CHDO for actual allowable costs incurred, upon certification of HUD Environmental Release of Funds and submittal by the CHDO and the Administrator of an itemized statement of actual expenditures incurred, supported by appropriate documentation. Reimbursement by the County is not to be construed as final in the event that HUD disallows reimbursement for the Program or any portion thereof. The County shall reimburse the CHDO and the Administrator on a Net 0 payment standard. 3.0 TIMELINESS 3.1 A Request for Reimbursement shall be submitted by the CHDO and Administrator by the 15th calendar day of the month following the month close out in which the expenditure occurred. 3.2 All requests for reimbursement of expenditures must be submitted within the same fiscal year in which the expenditures are incurred. The fiscal year runs July 1st through June 30th, and all Requests for Reimbursement shall be submitted by the CHDO and Administrator no later than July 30th for the preceding fiscal year. 3.3 All requests for reimbursements shall be submitted by the CHDO and the Administrator to: HSDFINANCE@MARICOPA.GOV. Page 46 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 4 Compensation 4.0 REIMBURSEMENT 4.1 The County shall provide financial reimbursement for services performed by the CHDO, not to exceed the amounts listed on page 1 of this Agreement and the availability of of funds. 4.2 The County shall reimburse the CHDO on a net “0” payments standard. 5.0 FINAL REIMBURSEMENT UPON AGREEMENT TERMINATION 5.1 Upon termination of this Agreement at the date identified on page 1 of this Agreement, or as may be amended, the CHDO and the Administrator shall submit the final reimbursement request. 5.1.1 This request shall be submitted no later than 30 calendar days after the termination date except as noted immediately below. 5.1.2 If the termination date is between June 10th and June 30th, then the final reimbursement request shall be submitted by July 10th. 5.1.3 The final progress report, and any other required reports that may be applicable such as the Project proceeds report, shall be submitted with the final reimbursement request. Page 47 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler SECTION 5 ATTACHMENTS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Page 48 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 5 Attachments Attachment 1 Page 49 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 5 Attachments Attachment 2 Page 50 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 5 Attachments Attachment 3 HOME Maximum Per-Unit Subsidy Limits This limit determines the maximum amount of HOME funds that may be invested on a per-unit basis in HOME-assisted housing projects as of June 4, 2020. Bedroom Maximum HOME per unit subsidy limit Size 0 Bedroom $ 153,314 1 Bedroom $ 175,752 2 Bedrooms $ 213,718 3 Bedrooms $ 276,482 4 Bedrooms $ 303,490 5 Bedrooms $ 303,490 Please request updated HOME maximum per unit investment limits from the Maricopa County Housing and Community Development Division on an annual basis, as these limits are adjusted annually by the U.S. Department of Housing & Urban Development (HUD). For current Maricopa HOME Consortium limits, refer to additional Maricopa County Information Bulletins here: https://www.maricopa.gov/3893/Funding-Notices-Bulletins More information can be found here: https://www.hudexchange.info/resource/2315/home-per-unit-subsidy/ HOME Homeownership Value Limits (95% Limits) Community Housing Development Organizations using HOME funds for homeownership assistance for new housing construction for resale must have an initial purchase price that does not exceed 95% of the median purchase price for Maricopa County which is $313,000 as of July 1, 2020. Please request updated HOME Homeownership Value Limits from the Maricopa County Housing and Community Development Division on an annual basis, as these limits are adjusted annually by the U.S. Department of Housing & Urban Development (HUD), or go to either www.maricopa.gov/3893 or HUD’s website for the updated versions each year. Page 51 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler Section 5 Attachments Attachment 4 ADDENDUM TO THE AGREEMENT BETWEEM MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT, NEWTOWN CDC, AND THE CITY OF CHANDLER ACTIVITY: Newtown-Chandler Community Land Trust Acquisition/Resale Single Family Residential CONTRACT START DATE: CONTRACT END DATE: CONTRACT NUMBER: ACTIVITY FUNDING AMOUNT: I. The purpose of this Addendum is to identify the property(ies) acquired for Project activities. II. Pursuant to the Agreement Section 2 (Special Provisions), Paragraph 19.0 (General Conditions), of the Parties’ Agreement, the following property is identified for purchase: ______________ [Insert street address(es) and Maricopa County tax parcel number(s)]. III. All other terms of the Agreement not amended by this Addendum shall remain in full force and effect as approved. IV. The Parties have authorized the undersigned to execute this Addendum on their behalf. V. This Addendum shall be effective upon approval and signature by the Parties. IN WITNESS, the Parties have approved and signed this Addendum. MARICOPA COUNTY CITY OF CHANDLER (Administrator) _____________________________________ _____________________________________ Chairman, Board of Supervisors Date City Manager Date ATTESTED TO: ATTESTED TO: _____________________________________ _____________________________________ Clerk of the Board Date City Clerk Date APPROVED AS TO FORM: APPROVED AS TO FORM: _____________________________________ _____________________________________ Deputy County Attorney Date Attorney for the City of Chandler Date NEWTOWN COMMUNITY DEVELOPMENT CORPORATION (CHDO) _____________________________________ Executive Director Date Page 52 of 52 CHDO Agreement with Newtown Community Development and the City of Chandler