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AGREEMENT FOR SERVICES BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND GUADALUPE COMMUNITY DEVELOPMENT CORPORATION A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) Contract Amount: $262,600 Contract Start Date: March1, 2015 Contract Termination Date: Contract Term 24 months from the date fully executed Contract Number: C-22-15-057-3-00 Program Number: CFDA Number: 14.239, HOME Investment Partnerships Program This Agreement is entered into by and between the Guadalupe Community Development Corporation (GCDC), CHDO Developer (hereinafter referred to as the “CHDO”), and Maricopa County, administered by its Human Services Department, (hereinafter referred to as the “Lead Agency” and/or “COUNTY”). The CHDO and COUNTY are collectively referred to herein as the “Parties” and individually as a “Party.” COUNTY shall provide financial reimbursement in a contract amount up to Two Hundred and Sixty Two Thousand six hundred dollars ($262,600) subject to the terms of this Agreement and availability of funds. This 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 for and in consideration of the covenants and conditions set forth in this Agreement, shall provide and perform the services set forth herein. All rights and obligations of the Parties shall be governed by the terms of this Agreement, its exhibits, attachments, and appendices, including any Subcontracts, Amendments, or Change orders as set forth herein and in: Section I – General Provisions – Contain uniform administrative requirements applicable to both Parties participating in the HOME Investment Partnerships (HOME) Program, which include, but are not limited to, definitions; non-discrimination and equal opportunity requirements; disclosure and retention requirements; and debarment, suspension, or ineligibility exclusions. Section II – Special Provisions – Provides specific programmatic requirements upon the CHDO that are established by the HOME Program and applicable HUD regulations. This includes, but is not limited to, disposition of project proceeds; financial record management; reporting requirements; and CHDO certifications. Section III – Work Statement – The section contains, but is not limited to, a narrative of the project; a list of the tasks to be performed; established goals; performance measures; scheduling; budget; planned expenditures of income. Section IV – Compensation – Contains provisions relating to compensation for CHDO, method of payment, terms of reimbursement, conditions-prior to the release of funds. Section V – Attachments –This section contains additional program information and requirements, as well as required reporting formats. Maricopa County Human Services Department Page 1 CHDO Representative: Cristina Campoy, CHDO Executive Director Phone: 480-248-9656 E-mail: guadcdc@cox.net Address: 5933 E. Calle Milagros, Guadalupe, AZ 85283 Lead Agency Representative: Amy Jacobson, Assistant Director Community Development Phone: 602-372-1528 E-mail: jacobsona@mail.maricopa.gov Address: 234 N. Central Avenue, Third Floor, Phoenix, AZ 85004 Notice under this Agreement shall be given by personal delivery or by registered or certified mail, postage prepaid and return receipt requested, to the persons at the addresses set forth above and shall be effective three (3) days after being mailed, unless otherwise indicated in the notice. This Agreement contains all the terms and conditions agreed to by the Parties. No other understanding, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any Party hereto. Nothing in this Agreement shall be construed as consent to any lawsuit or waiver of any defense in a lawsuit brought against the State of Arizona, COUNTY, or the CHDO in any State or federal court. IN WITNESS THEREOF, the Parties have signed this Agreement: Approved By: Approved By: Guadalupe Community Development Corporation MARICOPA COUNTY (LEAD AGENCY) Authorized Signature Chairman, Board of Supervisors Date Date Attested to: Clerk, Board of Supervisors Date In accordance with A.R.S. §§ 11-201, and 11-251, this Agreement has been reviewed by the undersigned Attorneys, and, as to their respective clients only, each Attorney has determined that this Agreement is proper in form and within the power and authority granted under the laws of the state of Arizona. Approved as to form: Approved as to form: Attorney for CHDO Date Attorney for the Board of Supervisors Date Maricopa County Human Services Department Page 2 SECTION I GENERAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Maricopa County Human Services Department Page 3 Section I General Provisions A. 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 herein shall operate to increase the Operating Budget without a written amendment thereto. B. DEFINITIONS As used throughout this Agreement, the following terms shall have the following meanings: 1. Agreement means this Contract for Services, which includes the General Provision, Special Provisions, Work Statement, Compensation, and all applicable attachments, exhibits, appendix, and any laws, rules, or regulations incorporated by reference 2. Assistant Director means the Director of a specific Division within the Human Services Department. 3. Board of Supervisors means the Maricopa County Board of Supervisors. 4. CHDO Developer means the person, firm or organization listed on the Cover Page of this Agreement. 5. 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-sponsored rental housing to a second non-profit. For purposes of this contract, CHDO may retain project proceeds for use on HOME-eligible activities other low-income housing activities, as required by 24 CFR 92.300. 6. Commitment means an executed legally binding written agreement with to use specific amount of HOME funds to produce affordable housing, provide down-payment assistance or tenant based rental. An agreement between the representative unit and a member unit of general local government of the Consortium does not constitute a commitment as described in 24 CFR Part 92.2(1) and (2). 7. County means Maricopa County. 8. Department means the Maricopa County Human Services Department Community Development Division. 9. Developer/Subcontractor means 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. 10. Director means the Director of the Maricopa County Human Services Department. 11. Division means a section of the Human Services Department Community Development Division. 12. Fidelity Bond means a bond to indemnify the CHDO against losses resulting from fraud or lack of integrity, honesty or fidelity of one or more employees, officers or other persons holding a position of trust. 13. Payment Bond means a bond executed to assure payment as required by law of all persons performing work or providing materials in the execution of work provided in this Agreement. 14. Performance Bond means a bond executed to secure fulfillment of all of the CHDO's obligations under this Agreement. 15. Project Coordinator means the liaison between the Department and the CHDO that is responsible for contract monitoring and technical assistance. 16. Projects 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, Maricopa County Human Services Department Page 4 Section I General Provisions construction and/or rehabilitation schedule has been established, and underwriting has been completed and otherwise complies with CFR Part 92.2(2) and 92.2 (A) and (B). 17. Project Coordinator means the liaison between the Department and the CHDO that is responsible for contract monitoring and technical assistance. 18. Public Agency has the meaning prescribed by A.R.S. § 11-951. 19. Subcontract means any contract entered into by the CHDO with a third party for professional services performance of any of the work or provision of any of the services covered by this Agreement. 20. Subcontractor means an entity funded through the CHDO to provide any work or services required by the Work Statement. 21. Vendor means an entity funded through the CHDO to provide services required by the Work Statement. 22. Work Statement means the section of this Agreement that contains a description of services to be delivered pursuant to this Agreement. C. GENERAL REQUIREMENTS 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. 2. The CHDO shall, without limitation, obtain and maintain all licenses, permits, and authority necessary to do business, render services, and perform work under this Agreement, and shall comply with all laws regarding unemployment insurance, disability insurance, and workers’ compensation. 3. The CHDO is an independent in the performance of work and the provision of services under this Agreement and shall comply with all laws regarding unemployment insurance, disability insurance and worker's compensation. 4. CHDO 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 CHDO's organization or with which CHDO (or one of its directors, officers, owners, trust certificate holders or a relative thereof) has a substantial interest, unless CHDO has made full written disclosure of the proposed payments to the Department and has received written approval therefore. For purposes of this provision, the terms "substantial interest" and "relative" shall have the meanings prescribed by A.R.S. § 38-502. D. ACCEPTANCE OF FUNDS CHDO hereby accepts the award of funds under the terms of this Agreement and agrees to execute and return this Agreement to the COUNTY within 30 days of receipt unless CHDO received a written waiver of this requirement by the COUNTY. E. AMENDMENTS All amendments to this Agreement shall be in writing, signed by authorized signers for both Parties, and be requested to the COUNTY no later than six (6) months prior to contract expiration. F. 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 Contract Administrator. The CHDO shall bear all liability under this Agreement, even if it is assigned, delegated, or subcontracted, in whole or in part, unless the Department agrees otherwise. Maricopa County Human Services Department Page 5 Section I General Provisions G. AVAILABILITY OF FUNDS 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, as provided herein, are actually available to the Department for disbursement. The Director shall be the sole authority in determining the availability of funds under this Agreement and the Department shall keep the CHDO fully informed as to the availability of funds. 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, the Board of Supervisors may amend, suspend, decrease, or terminate its 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 Department shall give written notice of the effective date of any suspension, amendment, or termination under this section at least ten (10) calendar days in advance. H. BUDGET ADJUSTMENTS CHDO 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 Contract Amount may be documented by an Amendment signed by the Director and the CHDO’s Representative. If the COUNTY agrees to the budget adjustments that increase the Contract Amount, the COUNTY shall follow section E of this Agreement to amend this Agreement. Any requests for reasonable budget adjustments must be submitted six (6) months prior to the expiration of this Agreement. Requests for adjustments to this Agreement must be supported by appropriate documentation. The CHDO shall not retain any funds drawn down in excess of immediate cash needs (to be used within 15 days of draw down) to cover subsequent requests for reimbursement, and must return them to the COUNTY within 30 days of receipt. The CHDO must also return to the COUNTY any interest that is earned on these funds that are drawn down and not expended for eligible costs within 15 days of draw down. I. DISPUTES 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) days, shall be submitted in accordance with the following dispute resolution process. 2. Disputes must be in writing and filed with the Assistant Director within ten (10) working days from the date the CHDO knew or should have known of the basis of the dispute. The Assistant Director, as applicable, shall respond in writing to the CHDO within fourteen (14) working days. The decision of the Assistant Director shall be final and conclusive unless, within seven (7) working days from the date the CHDO receives the decision, CHDO files a written notice of appeal with the Director of the Department or the Director of Materials Management Department of Maricopa COUNTY, who shall provide the CHDO with a written response within fourteen (14) working days following receipt of the CHDO’s notice of appeal. The decision of the Director shall be final. 3. Pending a final decision of the Director or the Director of the Materials Management Department, the CHDO shall proceed diligently with the performance of this Agreement in accordance with the Assistant Director’s decision. J. DEFAULT AND REMEDIES FOR NONCOMPLIANCE 1. Notwithstanding anything to contrary, this Section shall not be deleted or superseded by any other provision of this Agreement. Maricopa County Human Services Department Page 6 Section I General Provisions 2. This Agreement may be immediately terminated by the COUNTY if the CHDO defaults by failing to perform any objective or breaches any obligation under this Agreement, or any event occurs that jeopardizes the CHDO’s ability to perform any of its obligations under this Agreement. The COUNTY reserves the right to have service provided by persons other than the CHDO if the CHDO is unable or fails to provide required services with the specified time frame. 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 of funds improperly expended, or the recovery of funds improperly acquired. Noncompliance includes, but is not limited to: a. Nonperformance of any obligations required by this Agreement. b. Noncompliance with any applicable federal, state, or local laws, rules or regulations, including HUD guidelines, policies, or directives. c. Unauthorized expenditure of funds. d. Violation of the applicable affordability period. e. Improper disposition of recaptured proceeds. f. Improper disposition of project proceeds. g. Noncompliance with applicable financial record requirements, accounting principles, or standards established by OMB circulars. h. Noncompliance with recordkeeping, record retention, or reporting requirements. 4. Notwithstanding the suspension or termination of this Agreement, or the final determination of the proper disposition of funds, CHDO shall, without intent to limit or with restrictions, be subject to the following: a. All awards of 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. b. Not be relieved of any liability or responsibility associated with the Special Provision or Work Statement. c. Acknowledge that suspension or termination of this Agreement does not affect or terminate any rights against the CHDO at the time of suspension or termination, or that may accrue later. Nothing herein shall be construed to limit or terminate any right or remedy available under contract or rule. d. Wavier of a breach or default of any term, covenant, or condition of this Agreement or any federal, state, or local law, rule, or regulation shall not operate as a waiver of any subsequent breach of the same or any other term, covenant, condition, law, rule, or regulation. K. TERMINATION 1. Either Party may terminate this Agreement at any time by giving the other Party at least sixty (60) calendar days prior notice in writing (unless terminated by the Board of Supervisors under the Availability of Funds provision). The notice shall be given by personal delivery or by registered or certified mail, postage prepaid and a return receipt requested. This Agreement may be terminated by mutual written agreement of the Parties specifying the termination date therein. 2. The COUNTY has the right to terminate this Agreement upon twenty-four (24) hour notice when the COUNTY deems the health or welfare of the service recipients are endangered or the CHDO’s non-compliance jeopardizes funding source financial participation. If not terminated by one of the above methods, this Agreement will terminate upon the expiration of the term of this Agreement stated on Page One of this Agreement. Maricopa County Human Services Department Page 7 Section I General Provisions 3. In accordance with 24 CFR § 85.43, the COUNTY may suspend or terminate this Agreement if the CHDO violates any term or condition of this Agreement or if CHDO fails to maintain a good faith effort to carry out the purpose of this Agreement. 4. COUNTY or CHDO may terminate this Agreement for convenience in accordance with 24 CFR § 85.44. Both Parties shall agree upon the termination conditions including the effective date of the termination. The party initiating the termination shall notify the other party in writing stating the reasons for such termination. L. SEVERABILITY Any provision of this Agreement that is determined to be invalid, void, or illegal by a court shall in no way affect, impair, or invalidate any other provision hereof, and the remaining provisions shall remain in full force and effect. M. STRICT COMPLIANCE The Department’s acceptance of CHDO’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 be in writing and signed by both Parties. N. NON-LIABILITY The COUNTY, its officers, representatives, agents and employees shall not be liable for any act or omission by the CHDO or Vendor or any officer, representative, agent or employee of the CHDO or Vendor occurring in the performance of this Agreement, nor shall these entities be liable for purchases or contracts made by the CHDO, Vendor or any officer, representative, agent and employee of CHDO or Vendor, in connection with this Agreement. O. INDEMNIFICATION To the fullest extent permitted by law, and except for the willful misconduct of COUNTY, CHDO shall defend, hold harmless and indemnify COUNTY and all of its officers, employees, agents, and volunteers from and against any and all damages, claims, losses, liabilities, actions or expenses (including, but not limited to attorneys’ fees, expert witness fees, court costs, and attorneys’ fees and costs of appellate proceedings) (collectively “Claims”) relating to, arising out of or alleged to have resulted from this Agreement. The CHDO’S duty to defend, hold harmless and indemnify County pursuant to this section shall arise in connection with any claim, damage, loss or expense that is attributable or alleged to be attributable to bodily injury, sickness, disease, including death, or to injury to, impairment, or destruction of property, including but not limited to personal property belonging to CHDO and CHDO’S employees, arising from or related to this Agreement, including claims resulting in whole or in part from the acts, errors, mistakes, omissions, work or services of the CHDO or anyone for whose acts the CHDO may be legally liable. The amount and type of insurance coverage requirements set forth herein will in no way be construed as limiting the scope of the indemnity in this paragraph. The scope of this indemnification does not extend to the sole negligence of County. The CHDO will be responsible for primary loss investigation and defense and judgment costs where this Indemnification applies. CHDO’S obligations under this section shall survive the expiration or earlier termination of this Agreement. The amount and type of insurance coverage requirements set forth herein will in no way be construed as limiting the scope of the indemnity in this paragraph. P. TECHNICAL ASSISTANCE The Department shall provide reasonable technical assistance to the CHDO to assist in complying with State and federal laws, regulations, and accountability for diligent performance and compliance with the terms and conditions of this Agreement and all applicable laws, regulations, and standards. However, Maricopa County Human Services Department Page 8 Section I General Provisions this assistance in no way relieves the CHDO of full responsibility and accountability for its actions and performance in compliance with the terms of this Agreement. Q. SINGLE AUDIT ACT REQUIREMENTS CHDOs’ in receipt of federal funds through the Department 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 shall comply with OMB Circular A-133, and A-122, as applicable, and 24 CFR Parts 44, 84, 85, 92 and 570 as applicable. 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 shall take corrective actions within six (6) months of the date of receipt of the reports. The Department shall consider sanctions as described in OMB Circular A-133 for the CHDOs not in compliance with the audit requirements. R. AUDIT DISALLOWANCES 1. The CHDO shall, upon written notice thereof, 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, as well as court costs and attorney’s fees the COUNTY spends to pursue legal action relating to a disallowance. Court costs and attorney’s fees incurred will be specifically identified as applicable to the recovery of the disallowed costs in question. 2. If the COUNTY determines that a cost for which payment has been made is a disallowed cost, the Department will notify the CHDO in writing of the disallowance and the required course of action, which shall be at the option of the Department, either to adjust any future claim submitted by the CHDO by the amount of the disallowance or to require immediate repayment of the disallowed amount by the CHDO issuing a check payable to the COUNTY. S. STAFF AND VOLUNTEER TRAINING The Department may make available to the CHDO the opportunity to participate in any applicable training activities conducted by the Department. T. CLEAN AIR ACT If the total face value of this Agreement exceeds $100,000, the CHDO agrees to comply with all regulations, standards, and orders issued pursuant to 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. U. LOBBYING 1. No federal appropriated funds have been paid or will be paid by or on behalf of the CHDO to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. 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 contract, grant, loan or cooperative agreement, the CHDO shall complete and submit OMB Form-LLL, titled "Disclosure of Lobbying Activities," in accordance with its instructions and 31 U.S.C. § 1352. V. RELIGIOUS ACTIVITIES The CHDO agrees that none of its costs and none of the costs incurred by any Vendor will include any expense for any religious activity. Maricopa County Human Services Department Page 9 Section I General Provisions W. POLITICAL ACTIVITY PROHIBITED None of the funds, materials, property, or services contributed by the COUNTY or the CHDO under this Agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for public office. X. COVENANT AGAINST CONTINGENT FEES The CHDO warrants that no person or entity has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage or contingent fee. For breach or violation of this warranty, the COUNTY may immediately terminate this Agreement without liability. Y. 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 conduct of this Agreement. The CHDO and its agents shall safeguard the confidentiality of this information, just as the CHDO would safeguard their own confidential information. The CHDO shall include a clause to this effect in all Subcontracts. Z. 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 to the other Party, upon request, any available information that is relevant to this Agreement and to the performance hereunder. AA. COPYRIGHTS If this Agreement results in a book or other written material, 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 to authorize others to use all copyrighted material and all material that can be copyrighted as a result of this Agreement. BB. PATENTS Any discovery or invention arising out of, or developed in the course of, work aided by this Agreement shall be promptly and fully reported to the Department 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 thereon, shall be disposed of and administered, in order to protect the public interest. CC. CONTRACT COMPLIANCE MONITORING The Department shall monitor the CHDO’s compliance with, and performance under, the terms and conditions of this Agreement and the applicable federal regulations promulgated by HUD. On-site visits for compliance monitoring may be made by the Department at any time during the CHDO’s normal business hours, announced or unannounced. During an on-site visit, the CHDO shall make all of its records and accounts related to work performed and services provided under this Agreement available to the Department for inspection and copying. Maricopa County Human Services Department Page 10 Section I General Provisions DD. CONTINGENCY RELATING TO OTHER CONTRACTS AND GRANTS 1. The CHDO shall, during the term of this Agreement, immediately inform the Contract COUNTY in writing of the award 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 the CHDO to notify the Department of such award shall be considered a violation of this Agreement and the COUNTY may immediately terminate this Agreement without liability. 2. The Contract Administrator may request, and the CHDO will provide within a reasonable time, which shall not exceed ten (10) working days, a copy of such other agreement or grant, when in the opinion of the Contract Administrator the award of the agreement or grant may affect the costs being paid or reimbursed under this Agreement. 3. If the Contract Administrator determines that the award to the CHDO of such other agreement or grant has affected the costs being paid or reimbursed under this Agreement, the Contract Administrator will prepare an amendment to this Agreement effecting a cost adjustment. If the CHDO disputes the proposed cost adjustment, the dispute shall be resolved pursuant to the "Disputes" section contained herein. EE. MINIMUM WAGE REQUIREMENTS The CHDO warrants that it shall pay all its employees who are performing work or providing services under 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. FF. RECOGNITION OF DEPARTMENT SUPPORT The CHDO will give recognition to the Department, the COUNTY and the funding source for its support when the CHDO publishes materials or releases public information that is paid for in whole or in part with funds received by the CHDO under this Agreement. GG. INSURANCE CHDO, at CHDO’s own expense shall purchase and maintain the herein stipulated minimum insurance from a company or companies duly licensed by the State of Arizona and possessing a current A.M. Best, Inc. rating of A+. In lieu of State of Arizona licensing, the stipulated insurance m a y be purchased from a company or companies, which are authorized to do business in the State of Arizona, provided that said insurance companies meet the approval of COUNTY. The form of any insurance policies and forms must be acceptable to COUNTY. CHDO shall have in effect at all times during the term of this Agreement insurance that is adequate to protect the COUNTY, its officers and employees, participants, and equipment funded under this Agreement against the losses set forth below. CHDO shall name the COUNTY as an additional insured party. CHDO shall provide the Department with documentation of insurance coverage by furnishing the Contract Administrator a certificate of insurance or a certified copy of the insurance policy or other documentation that is required by the Contract Administrator. CHDO’s insurance shall be primary insurance as respects COUNTY, and any insurance or self- insurance maintained by COUNTY shall not contribute to it. Any failure to comply with the claim reporting provisions of the insurance policies or any breach of an insurance policy warranty shall not affect the COUNTY’s right to coverage afforded under the insurance policies. The insurance policies may provide coverage that contains deductibles or self-insured retentions. Such deductible and/or self-insured retentions shall not be applicable with respect to the Maricopa County Human Services Department Page 11 Section I General Provisions coverage provided to COUNTY under such policies. CHDO shall be solely responsible for the deductible and/or self-insured retention and COUNTY, at its option, may require CHDO to secure payment of such deductibles or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit. COUNTY reserves the right to request and to receive, within 10 working days, certified copies of any or all of the herein required insurance certificates. COUNTY shall not be obligated to review policies and/or endorsements or to advise CHDO of any deficiencies in such policies and endorsements, and such receipt shall not relieve CHDO from, or be deemed a waiver of COUNTY’s right to insist on strict fulfillment of CHDO’s obligations under this Contract. The insurance policies required by this Contract, except Workers’ Compensation, shall name COUNTY, its agents, representatives, officers, directors, officials and employees as Additional Insured’s. The policies required hereunder, except Workers’ Compensation, shall contain a waiver of transfer of rights of recovery (subrogation) against COUNTY, its agents, representatives, officers, directors, officials and employees for any claims arising out of CHDO’s work or service. 1. Commercial General Liability: Commercial General Liability insurance and, if necessary, Commercial Umbrella insurance with a limit of not less than $1000,000 for each occurrence, $2,000,000 Products/Completed Operations Aggregate, and $2,000,000 General Aggregate Limit. The policy shall include coverage for bodily injury, broad form property damage, personal injury, products and completed operations and blanket contractual coverage, and shall not contain any provision which would serve to limit third party action over claims. There shall be no endorsement or modification of the CGL limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage. 2. Automobile Liability: Commercial/Business Automobile Liability insurance and, if necessary, Commercial Umbrella insurance with a combined single limit for bodily injury and property damage of not less than $2,000,000 each occurrence with respect to any of the CHDO’s owned, hired, and non-owned vehicles assigned to or used in performance of the CHDO’s work or services under this Contract. 3. Workers’ Compensation: Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of CHDO’s employees engaged in the performance of the work or services under this Contract; and Employer’s Liability insurance of not less than $1,000,000 for each accident, $1,000,000 disease for each employee, and $1,000,000 disease policy limit. CHDO waives all rights against COUNTY and its agents, officers, directors and employees for recovery of damages to the extent these damages are covered by the Workers’ Compensation and Employer’s Liability or commercial umbrella liability insurance obtained by CHDO pursuant to this Contract. 4. Certificates of Insurance Prior to commencing work or services under this Contract, CHDO shall have insurance in effect as required by the Contract in the form provided by the COUNTY, issued by CHDO’s insurer(s), as evidence that policies providing the required coverage, conditions and limits required by this Contract are in full force and effect. Such certificates shall be made available to the COUNTY upon ten (10) business days. BY SIGNING THE AGREEMENT PAGE THE CONTRACTOR AGREES TO THIS REQUIREMENT Maricopa County Human Services Department Page 12 Section I General Provisions AND FAILURE TO MEET THIS REQUIREMENT WILL RESULT IN CANCELLATION OF CONTRACT. In the event any insurance policy(ies) required by this contract is (are) written on a “claims made” basis, coverage shall extend for two years past completion and acceptance of CHDO’s work or services and as evidenced by annual Certificates of Insurance. If a policy does expire during the life of the Contract, a renewal certificate must be sent to COUNTY fifteen (15) days prior to the expiration date. 5. Cancellation and Expiration Notice. Insurance required herein shall not be permitted to expire, be canceled, or materially changed without thirty (30) days prior written notice to the COUNTY. 6. If the CHDO provides professional or semi-professional personal services under this agreement for which malpractice or professional liability coverage is available, such as medical, psychiatric, or legal services, Contractor shall carry minimum liability coverage of $2,000,000 each occurrence and provide the Department with proof of coverage except for governmental entities that are self-insured. HH. BONDING 1. The CHDO shall not receive any initial reimbursements under this Agreement in an amount greater than the CHDO's bonding limit. The CHDO shall provide the Contract Administrator with documentation of required bonding. 2. The CHDO shall have fidelity bonding of not less than the maximum amount of cash on hand or an amount equal to the initial reimbursement, whichever is greater. 3. Bonding requirements shall prevail throughout the term of this Agreement. II. GRIEVANCE PROCEDURE The CHDO shall each 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 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 Department if the grievance is not satisfied at the CHDO’s level. This system shall include protest procedures for decisions related to contract awards and requests for reasonable accommodations for persons with disabilities. JJ. NONDISCRIMINATION The CHDO, in connection with any service or other activity 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 shall include this clause in all of its Subcontracts. KK. EQUAL EMPLOYMENT OPPORTUNITY The CHDO shall not discriminate against any employee or applicant for employment because of race, age, disability, color, religion, sex, or national origin. The shall each take affirmative action to insure that 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. The CHDO shall, to the extent such provisions apply, comply with Title VI and VII of the Civil Rights Act of 1964, as amended (42 U.S.C. §§ 2000a, et seq.); the Rehabilitation Act of 1973, as amended (29 U.S.C. §§ 701, et seq.); the Age Discrimination in Employment Act of 1967, as amended (29 U.S.C. §§ 621, et seq.); the Americans With Disabilities Act of Maricopa County Human Services Department Page 13 Section I General Provisions 1990 (42 U.S.C. §§ 12101, et seq.); and Arizona Executive Order 99-4, which mandates that all persons shall have equal access to employment opportunities. LL. 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 the bank account shall be commingled with other funds or money belonging to the CHDO. All interest earned on the 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, it shall be in accord with generally accepted accounting principles. MM. RETENTION OF RECORDS 1. This provision applies to all financial and programmatic records, supporting document, statistical records, and other records of the CHDO that are related to this Agreement. 2. The CHDO 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 Department, federal and State auditors, and any other persons duly authorized by the Department, shall have full access to, and the right to examine, copy, and make use of any and all of the records. NN. ADEQUACY OF RECORDS If the CHDO’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, the CHDO shall reimburse the COUNTY for the services not supported and documented. OO. COMPETITIVE BID REQUIREMENTS 1. Equipment The CHDO shall obtain all equipment to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost pursuant to the following competitive bidding system: a. Procurements in excess of $300, but less than $1,000, require oral price quotations from two or more vendors. The CHDO shall keep and maintain a record of the vendors’ verbal quotations. The CHDO’s award shall be made to the lowest bidder meeting specification requirements concerning price, conformity to specifications, and other purchasing factors. b. Procurements exceeding an aggregate amount of $1,000 shall be approved by the Contract Administrator. At least three (3) bidders shall be solicited to submit written quotations. The CHDO shall solicit written quotations by issuing a Request for Quotation to at least three (3) vendors. The award shall be made to the lowest bidder meeting specification requirements concerning price, conformity to specifications, and other purchasing factors. 2. Supplies The CHDO shall obtain all supplies to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost and pursuant to a system of written quotes whenever the price is expected to be greater than $300, unless the CHDO obtains the Contract Authority’s prior written approval to purchase supplies by an alternate method. 3. Minority, Women, and Small Business Enterprises Maricopa County Human Services Department Page 14 Section I General Provisions The CHDO 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. 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. PP. PROPERTY Any property furnished or purchased pursuant to the terms of this Agreement shall be utilized, maintained, repaired, and accounted for in accordance with instructions furnished by the Department, and shall revert to the COUNTY upon termination of this Agreement, unless the Contract Administrator determines otherwise. The costs to repair such property are the responsibility of the CHDO or the Administrator, as applicable, within the limits budgeted herein. Repair costs beyond the budgeted amount shall be approved by the Contract Authority. QQ. IMMIGRATION REFORM AND CONTROL COMPLIANCE The CHDO understands and acknowledges the applicability of the Immigration Reform and Control Act of 1986 (Pub. L. No. 99-603) (“IRCA”). The CHDO shall comply with the IRCA in performing under this Agreement and shall grant the COUNTY access to inspect its personnel records to verify such compliance. RR. DRUG FREE WORKPLACE ACT The CHDO agrees to comply with the Drug-Free Workplace Act of 1988 (41 U.S.C. §§ 701, et seq.), which requires that the CHDO and grantees of federal funds must certify that they will provide drug- free workplaces. This certification is a precondition to receiving a grant or entering into this Agreement. SS. GOVERNOR’S EXECUTIVE ORDER NO. 88-26 The CHDO is required to use the Arizona Taxonomy of Human Services for reporting and contracting purposes. TT. STATUTORY RIGHT OF CANCELLATION Notice is given that 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, an employee or agent of any other Party to this Agreement in any capacity or consultant to any other Party of this Agreement with respect to the subject matter of this Agreement. The COUNTY may also 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 this COUNTY from any other Party to this Agreement arising as the result of this Agreement. UU. EMPLOYMENT DISCLAIMER 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 between the Parties, and the rights and obligations of the Parties shall be only those expressly set forth in this Agreement. The Parties agree that no individual performing under this Agreement on behalf the CHDO is 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 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 Maricopa County Human Services Department Page 15 Section I General Provisions premiums appurtenant thereto concerning such individuals and shall defend and hold the COUNTY harmless with respect thereto. VV. CERTIFICATION REGARDING DEBARMENT, SUSPENSION INELIGIBILITY AND VOLUNTARY EXCLUSION The undersigned, by signing and submitting this Agreement has the authority to certify the CHDO to the terms, representations and/or warrants of this Certification. The CHDO, defined as the primary participant in accordance with 45 CFR Part 76, certifies to the best of its knowledge and belief that it and its principals: 1. are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 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; 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 (b) of this certification; and 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. 5. shall immediately notify the Department if, at any time during the term of this Agreement, it is debarred, suspended, declared ineligible, or voluntarily excluded from participation. The Department may pursue available remedies in the event of such occurrence, including immediate termination of this Agreement. 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 Department may pursue available remedies in the event of such occurrence, including immediate termination of this Agreement. The CHDO shall include, without modification, this Certification’s language, titled “Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion – Lower Tier Covered Transactions,” in all agreements with subgrantees and other contractors; in all lower tier covered transactions, and in all solicitations for lower tier covered transactions in accordance with 45 CFR Part 76. Should the CHDO not be able to provide this Certification, an explanation as to why shall be immediately provided to the Department, Attention: Community Development Assistant Director, 234 N. Central Ave. Third Floor, Phoenix, AZ 85004. WW. VERIFICATION REGARDING COMPLIANCE WITH ARIZONA REVISED STATUTES § 23-214 AND FEDERAL IMMIGRATION LAWS AND REGULATIONS By entering into this Agreement, the CHDO represents and warrants compliance with the Immigration and Nationality Act (8 U.S.C. §§ 1101, et seq.) and all other federal and State immigration laws and regulations related to the immigration status of its employees. The CHDO shall obtain statements from its Vendors certifying compliance and shall furnish the statements to the Department upon request. These representations and warranties shall remain in effect throughout the term of this Agreement. The CHDO and its Vendors shall also maintain Employment Eligibility Verification forms (I-9), as required by the U.S. Department of Labor’s Immigration Reform and Control Act of 1986 (Pub. L. No. 99-603), for all employees performing work under this Contract. I-9 forms are available for download at USCIS.GOV. Maricopa County Human Services Department Page 16 Section I General Provisions The CHDO warrants that it is in compliance with A.R.S. § 41-4401 (e-verify requirements) and further acknowledges: 1. That the CHDO and its 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; 2. That a breach of a warranty under subparagraph 1 above shall be deemed a material breach of this Agreement and the COUNTY may immediately terminate this Agreement without liability; 3. That the COUNTY and any contracting government entity retains the legal right to inspect the papers and employment records of CHDO or Vendors employee who works on this Agreement to ensure that the CHDO or Vendors is complying with the warranty provided under subsection 1 above and that the CHDO agrees to make all papers and employment records of said employee(s) available during normal working hours in order to facilitate such an inspection. XX. CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS 1. The CHDO agrees that this Contract and employees working on this Contract 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; 2. The CHDO shall inform its 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 copies provided to COUNTY upon request; and 3. The CHDO shall insert the substance of this clause, including this paragraph (3), in all subcontracts over the simplified acquisition threshold ($150,000 as of September 2013). i. COMPLIANCE WITH REQUIREMENTS REGARDING ELIGIBILITY FOR PUBLIC BENEFITS The CHDO shall comply with State and other laws regarding eligibility for public benefits including ARS § 1-501 and § 1-502 which states that public benefits shall only be provided to eligible applicants who are citizens of the United States, or are Qualified Non-Citizens: 1. All applicants authorized to receive public benefits must provide documentation of their lawful presence in the United States through a verification process. 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. The Affidavit Demonstrating Lawful Presence in the United States or similar form shall be used to document compliance with requirements 1 and 2, above. 4. Employees of Maricopa County and its subcontracted entities are required to report “discovered violations” of federal immigration law 5. Public benefits are defined in ARS 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. Maricopa County Human Services Department Page 17 Section I General Provisions 6. Programs, services, or assistance such as soup kitchens, crisis counseling and intervention, and short-term shelter which meet the following conditions are exempt from ARS 1-501 and 1-502: (i) deliver in-kind services at the community level, including through public or private nonprofit agencies; (ii) 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 (iii) are necessary for the protection of life or safety Maricopa County Human Services Department Page 18 SECTION II SPECIAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES Maricopa County Human Services Department Page 19 Section II Special Provisions A. EFFECT To the extent that the Section II Special Provisions are in conflict with the Section I General Provisions, the Special Provisions shall control. To the extent that the Work Statement is in conflict with the General Provisions or the Special Provisions, then the Work Statement shall control. To the extent that the Compensation Provisions are in conflict with the General Provisions, Special Provisions or Work Statement then the Compensation Provisions shall control. B. DEFINITIONS As used throughout this Section as a supplement to the Definitions in Section I, the following terms shall have the following meanings: 1. Admin Manual means the Administrative Manual on Compact Disk produced by the Community Development Division of the Human Services Department. 2. Annual Action Plan means the annual plan submitted by the COUNTY as the lead agency to HUD that describes jurisdiction’s program goals. 3. Beneficiary means a person or household who meets the income requirements of 24 CFR 92.203 subject to the restriction on assistance to students enrolled in and institution of higher education as described in 24 CFR 5.612. When determining the annual income of a household to establish eligibility for HOME assistance, the CHDO must count the income of all persons in the household, including non-related individuals. 4. BOS means the Maricopa County Board of Supervisors. 5. CD means Community Development Division. 6. CHDO means Community Housing Development Organization, a special designation for qualified nonprofit organizations that meet certain legal and organizational characteristics described in the HOME regulations at 24 CFR Part 92.2. The purpose of the organization must include the provision of decent housing that is affordable to low and moderate income people. 7. COUNTY means Maricopa County. 8. Developer means an organization that owns property and develops the project or has the contractual obligation to a property owner to develop a project. 9. Five Year Consolidated Plan means HUD required Consolidated Plan submitted by the COUNTY as the lead agency 10. HOME means HOME Investment Partnerships Program 24 CFR Part 92. 11. HUD means U.S. Department of Housing and Urban Development. C. STANDARDS The CHDO shall perform the work and provide the services identified in the Work Statement and shall immediately notify the Department whenever the CHDO is unable to, or anticipates an inability to, perform any of the work, or provide any of the services required by the terms of this Agreement. The CHDO acknowledges 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 to the remedies provided in the Default and Remedies for Noncompliance established by the General Provisions D. COMPLIANCE WITH LAWS, RULES & REGULATIONS This Agreement and the Parties hereto, are subject to all applicable federal, state, or local laws, rules, and regulations. The CHDO shall comply with all applicable laws, rules and regulations, without limitation to those designated within this Agreement. Refer to the Default and Remedies for Noncompliance provided in the General Provisions. E. GENERAL PROVISIONS, SECTION I, SUPERSEDED BY SPECIAL PROVISIONS, SECTION II 1. “LL Financial Management” is superseded by the Special Provisions. 2. “SS Governor’s executive order no. 88-26” is deleted. Maricopa County Human Services Department Page 20 Section II Special Provisions F. AUDIT REQUIREMENTS The CHDO shall, at its own expense, file with the Human Services Department, Community Development Division by March 30th of each year, either audited financial statements prepared in accordance with federal single audit requirements; or, financial statements prepared in accordance with generally accepted accounting principles audited by an independent certified public accountant. G. SPECIAL FEDERAL AND PROJECT PROVISIONS 1. PROGRAMS: In accordance with HOME Program regulations, the CHDO agrees implement the Program fully as described in the Work Statement in accordance with the terms of the Five-Year Consolidated Plan and the Annual Action Plan submitted by the COUNTY to HUD for funds to carry out the Program and the Certifications which were submitted concurrently with the Annual Action Plan to HUD, and with any Cooperation Agreements with the Municipality (as applicable). The Annual Action Plan is hereby incorporated by reference into this Agreement. In summary, the Program is described in the Work Statement, Section III. The CHDO shall be responsible to provide various reports of all activities related to the Scope of Work. The CHDO agrees to submit to the COUNTY Reports: a. Quarterly CHDO Project Proceeds Reports and supporting documentation due on the 15th of July, October, January and April. b. Quarterly Progress Reports due on the 15th of July, October, January and April of the preceding three months (i.e. July report cover the months of April, May and June) and address all programs described in the scope of work. Failure to submit timely Quarterly Progress Reports will result in suspension of payment reimbursement requests until all reports are brought current. Quarterly reports are continually due for rental projects to ensure that all beneficiary data is regularly updated with beneficiary information during lease-up along with vacant unit reports. Within six months from the date of project completion, if a rental unit remains unoccupied, the CHDO 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, 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 purposes 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 unrented as described in §92.252. c. Monthly Request for Payment Reimbursement on the COUNTY required form and must include all supporting documentation and have a Match Log and supporting documentation; d. HOME Setup and Completion Reports- be submitted to the COUNTY after a fully executed written agreement, environmental review record and all other conditions prior to a commitment of funds described in 24 CFR 92.2(1) (2). HOME Completion Reports --within sixty (60) days of final payment request submit HOME Completion Reports and all required documents as described in section 8 b CHDO of this Section to Project Coordinator. e. MBE/WBE information; and f. Other HUD-required reporting data as applicable shall be submitted. 2. PROJECT PROCEEDS: Project Proceeds include, but are not limited to: [1] the permanent financing of a CHDO project which is used to pay off a CHDO financed construction loan; [2] the sale of CHDO sponsored rental housing to a second non-profit; [3] the sale of Maricopa County Human Services Department Page 21 Section II Special Provisions CHDO developed homeownership housing; [4] the principal and interest payments from a loan to a buyer of CHDO developed homeownership housing. When project proceeds are generated by housing that is only partially assisted with HOME funds or matching funds, the income shall be prorated to reflect the percentage of HOME fund used. Project proceeds may be retained and used by the CHDO under the following conditions: submit to the COUNTY documentation supporting the amount of project proceeds received and expended. Quarterly project proceeds reports are due to the COUNTY by the 15th day following the end of the quarter. At the end of each fiscal year, June 30th a yearly project proceeds log must be submitted to the COUNTY that states project proceeds received and expended. Project proceeds that are not expended at the end of this Agreement shall be sent to the COUNTY in accordance with 24 CFR 92.503 within 30 days. The CHDO must use all Project Proceeds for HOME-eligible or other housing activities to benefit low-income families, as required by 24CFR 92.300(a)(2). The COUNTY requires that all CHDO proceeds generated from this AGREEMENT be used for acquisition and/or new construction of single family homes to qualified low income families as defined in 24 CFR 92. Funds generated from the use of CHDO proceeds are not CHDO proceeds. The HOME requirements shall continue to apply as long as the CHDO receives and uses CHDO proceeds, even if the CHDO proceeds are received or used after the expiration of this AGREEMENT. 3. 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 and/or very low income households 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 covenants running with the land. The option to use deed restrictions or covenants running with the land must include period of affordability set forth in §92.252 and §92.254. 4. DEOBLIGATION: The COUNTY may reduce funds from the funding award evidenced by this Agreement without regard to the source of funding, under the following circumstances: a. The CHDO completes performance under the Work Statement without using all funds provided by the COUNTY under this Agreement; b. This Agreement expires all funds are expended; c. The COUNTY original allocation was a loan and the CHDO paid the loan; d. Cancelled or changed an Program required under the Work Statement for reasons other than non-performance; e. This Agreement has otherwise been terminated. The COUNTY may deobligate funds under this Agreement under the foregoing circumstances upon written notice to the CHDO. 5. REDUCTION IN FUNDS: The COUNTY may reduce funds from the amount of the funding award evidenced by this Agreement, under the following circumstances: 1) The COUNTY determines that the CHDO failed to use the funds provided by the COUNTY under this Agreement in compliance with the terms and conditions outlined herein; or 2) the CHDO fails to perform in accordance with the performance obligations set forth in the Work Statement and Project Schedule or the terms of this Agreement. The COUNTY may reduce funds under this Agreement under the foregoing circumstance upon written notice to the CHDO. 6. REPAYMENT OF FUNDS: The CHDO agrees to repay funds provided under this Agreement in compliance with the terms of this Agreement or the requirement of applicable laws and regulations. This repayment obligation extends to but is not limited to questioned costs identified in HUD monitoring or Single Audit and repayments required by HUD for Maricopa County Human Services Department Page 22 Section II Special Provisions 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 eight (180) days following the written determination of noncompliance by the COUNTY. 7. FUNDS REMAINING AT EXPIRATION: Upon expiration of the Agreement, the CHDO shall transfer to the COUNTY any unexpended funds advanced to the CHDO by the COUNTY under this Agreement. 8. ADMINISTRATIVE REQUIREMENTS: In accordance with federal regulations, including 24 CFR § 92, et seq., the COUNTY is responsible for ensuring the administration of HOME Program Funds in accordance with all program requirements. a. FINANCIAL RECORDS: The CHDO’s accounting system and financial records shall comply with the applicable requirements and standards of OMB Circulars A- 110, A-122, A-133, and 24 CFR Part 225. Such systems shall be subject to monitoring from time to time by the COUNTY and by HUD. i. The CHDO agrees to adhere to accounting principles and procedures, to utilize adequate internal controls and maintain necessary source documentation for all costs incurred. The CHDO further agrees to maintain an adequate accounting system that provides for appropriate grant accounting (including calculation of project proceeds). ii. The CHDO is to adhere to applicable audit requirements as described and in accordance with OMB Circular A-133. In addition, all CHDOs must provide annual single-audit reports or annual audited financial statements to the COUNTY. iii. The CHDO is to adhere to the repayment of investment requirements set forth in 24 CFR § 92.503. Any HOME Funds invested in housing that do not meet the affordability requirements for the period specified in § 92.252 or § 92.254, as applicable, must be repaid in accordance with 24 CFR § 92.503(b)(3). b. DOCUMENTATION AND RECORD KEEPING: i. Records to be Maintained The CHDO shall maintain all records required by the federal regulations specified in 24 CFR § 92.508 that are pertinent to the activities to be funded under this Agreement. Such records shall include, but not be limited to: 1. Records demonstrating that the CHDO is and remains a qualified CHDO; 2. Records providing a full description of each activity undertaken and its impact; 3. Records required determining the eligibility of activities; 4. Records which demonstrate compliance with environmental review requirements; 5. Records 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); 6. Records which demonstrate citizen participation; 7. Records which demonstrate compliance regarding acquisitions, displacement, relocation and replacement housing; 8. Records demonstrating continuing compliance for all activities and/or compliance with recapture provisions of the affordability standards; Maricopa County Human Services Department Page 23 Section II Special Provisions 9. Records documenting compliance with the fair housing and equal opportunity components of the HOME program; 10. Financial records required by OMB Circular A-110; 11. Other records necessary to document compliance with HOME Program requirements; 12. Records documenting compliance with Section 3 of the Housing and Urban Development Act of 1968; 13. Records that demonstrate compliance with deeds of trust, promissory notes, and forgivable loans associated with owner- occupied housing activities; 14. Records supporting that the CHDO has maintained client data demonstrating clients served meet 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. 15. All applicable federal, State, and local laws and regulations, including compliance with A.R.S. § 1-1501 and § 1-502 (Attachment A). ii. Outcome Measures – The CHDO shall maintain data that supports the accomplishment of the desired outcomes as indicated in the Work Statement. iii. Disclosure – The CHDO understands 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 CHDO’s responsibilities with respect to services provided under this Agreement is prohibited unless written consent is obtained from such person receiving service. iv. Activity Reports – Such reports as required by the COUNTY including, but not limited to, HOME Setup/Completion Reports, Quarterly Progress Reports, Quarterly Project proceeds Reports, Match Reports, MBE/WBE information, and other HUD-required reporting data, as applicable shall be submitted in accordance with the Administrative Manual on CD at the completion of each Program which is described under the Scope of Work. v. Audits and Inspections – All CHDO 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 within 45 days after receipt by the CHDO. Failure of the CHDO to comply with above audit requirements shall constitute a violation of this Agreement and may result in the withholding of future payments. The CHDO hereby agrees to have an Annual Audit conducted in accordance with Administrative Manual on CD concerning CHDO audits. The Annual Audit requirement is applicable to all levels of funding received by the CHDO under this Agreement, even if the level of funding is less than the current thresholds cited in OMB Circular A-133. vi. Performance Monitoring – The COUNTY shall monitor the CHDO to determine if 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 herein. The CHDO will prepare for monitoring as set forth in the HOME Maricopa County Human Services Department Page 24 Section II Special Provisions Consortium Monitoring Current Practices and assure that all required files and documentation are available at scheduled monitoring. Failure of the CHDO to administer, implement and perform as determined by federal regulations and COUNTY shall constitute non-compliance with this Agreement. Non-compliance is a violation of this Agreement and may result in the withholding of future payments. vii. Policy/Administrative Manuals Use - CHDO agrees to be familiar with and comply with the policies/procedures established in the most recent Administrative Manual on CD. Noncompliance with the Administrative Manual on CD shall constitute a breach of contract. 9. ENVIRONMENTAL REVIEW CONDITIONS: 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. Exempt activities described in § 24 CFR 58.34(a)(1)-(11) are activities that generally have no physical impact on the environment. If federal funds are involved in an activity, 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 and/or the COUNTY provides written authorization based on approval of an ERR. 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 fund based on a completion ERR. The cost of the option must be a nominal portion of the purchase price. a. The CHDO agrees to comply with: the National Environmental Policy Act of 1969 (P.L. 91-190) pursuant thereto 40 CFR Parts 1500 – 1508; Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities pursuant thereto Title 24 CFR Part 58, Subpart A; CPD Notice 01-11 HOME Environmental Review Requirements and with all conditions required in the process of the environmental assessment. b. Air and Water - The CHDO shall comply with the following requirements insofar as they apply to the performance of this Agreement: i. Clean Air Act, 42 U.S.C. § 7401, et seq., as amended. ii. Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251, et seq, as amended, § 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308 and all regulations and guidelines issued thereunder. iii. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. iv. The CHDO agrees to comply with conditions set forth by the Air Quality Department or other COUNTY agency, as required. c. Flood Disaster Protection - In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC § 4001), the CHDO 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 shall require the homeowner to obtain and maintain flood insurance as a condition of funding, or funds shall not be utilized. d. Historic Preservation - The CHDO shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966 (16 USC § 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Maricopa County Human Services Department Page 25 Section II Special Provisions Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Office for all rehabilitation and demolition of historic properties that are fifty (50) years old or older or that is listed or eligible for the National Register of Historic places, or included on any State or local historic property inventory or any archaeological findings. e. Release Of Funds (ROF) - No funds may be encumbered prior to the completion of the Environmental Review. The Environmental Review Record (ERR) must be completed before any funds are obligated. Funding is also 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 to notify the COUNTY, and to refrain from making any commitments and expenditures on a site until a Release of Funds has been issued by the COUNTY. Failure to meet these conditions will mean that requested funds will not be disbursed. 10. The CHDO CERTIFIES: a. That it is a CHDO that meets the applicable requirements of the HOME Program. b. That it possesses legal authority to execute this Agreement. c. That its governing body has duly adopted or passed, as an official act, a resolution, motion, or similar action authorizing the person identified as the official representative of the CHDO to execute this Agreement and to comply with the terms of this Agreement. d. That the activity described herein shall be carried out and the services administered in compliance with all federal laws and regulations as follows: i. The CHDO shall comply with the requirements and standards of OMB Circular A-87, OMB Circular A-133, Audits of States, and with 24 CFR Part 85, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments". 11. ADDITIONAL CERTIFICATIONS, WARRANTIES, AND AGREEMENTS: a. The Parties shall 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 CFR §§ 92.350-92.454), which include: i. The requirements of the Fair Housing Act, (42 CFR §§ 3601-3620), and implementing regulations at 24 CFR 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) (3 CFR §§ 1958-1963 Come, p. 652 and 3 CFR § 1980, Come. p. 307) and implementing regulations at 24 CFR 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 CFR Part 1 (Nondiscrimination in Federally Assisted Programs of HUD); ii. Executive Order 13166 (Improving Access to Services for Persons with Limited English Proficiency) pursuant to Title VI of the Civil Rights Act of 1964; iii. 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 CFR § 146 (nondiscrimination on the basis of age in HUD programs or activities receiving federal financial assistance); Maricopa County Human Services Department Page 26 Section II Special Provisions iv. 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 CFR 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.); v. The requirements of the Executive Order 11246 (Equal Employment Opportunity) and the regulations issued under the Order at 41 CFR Chapter 60 (3 CFR §§ 1964-65, Come,. p. 339); vi. The requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1702u) (Employment Opportunities for Business and Lower Income Persons in Connection with Assisted Activities); and vii. The requirements of Executive Orders 11625 and 12432 regarding Minority Business Enterprise Development, and 12138 regarding Women's Business Enterprise, and Regulations S. 85.36 (e) and of Section 281 of the National Housing Affordability and Stability Act. b. The Parties to this Agreement 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 5 or more rental units, by providing information about the availability of HOME Program-assisted units that are vacant at the time of completion or that later become vacant. The Parties 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. c. HOME funds may not be used for operations or modernization of public housing projects financed under the Housing Act of 1937. d. 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 USC § 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 CFR 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 agrees not to commit or incur any expenditures for HOME activities until this environmental review process has been completed. Should it be determined that the CHDO has incurred expenses in violation of the NEPA requirements, the CHDO will be responsible for the full costs for such expenditures and repayment of any related reimbursements. The CHDO shall provide all necessary assistance to the COUNTY in completing this environmental review process. e. The Parties to this Agreement agree to abide with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 USC §§ 4291-4655) and the governmental implementing regulations at 49 CFR Part 24 as they apply to this HOME Program. f. The Parties shall comply with the Davis-Bacon Act (40 U.S.C. §§ 276a, et seq.), Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327, et seq.), related acts and the provisions of 24 CFR Part 24 regarding Government Debarment and Suspension as they apply to this HOME Program. g. The Parties shall comply with the Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001, et seq.) as they apply to this HOME Program. Maricopa County Human Services Department Page 27 Section II Special Provisions h. The Parties shall comply with the Drug-Free Workplace Act of 1988 as it applies to the HOME Program. i. 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. §§ 4801, et seq.), and is therefore subject to 24 CFR Part 35. j. No person who is an employee, agent, consultant, officer or elected official, or appointed official who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME assisted activity, either for themselves or those whom they have family or business ties, during their tenure or for one year thereafter. k. The CHDO warrants that it is in compliance with A.R.S. § 41-4401 and further acknowledges i. That the CHDO and its subcontractors/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 (A); ii. That a breach of a warranty under subsection a above, shall be deemed a material breach of the contract that is subject to penalties up to and including termination of the contact; iii. That the COUNTY retains the legal right to inspect the employment papers of any CHDO or vendors employee who works on the Agreement to ensure that the CHDO or vendor is complying with the warranty provided under subsection a above and that the CHDO agrees to make all papers and employment records of said employee(s) available during normal working hours in order to facilitate such an inspection; and iv. That nothing herein shall make any CHDO, or vendor an agent or employee of the COUNTY; 1) That the Administrative Manual on CD shall be made accessible to all applicable CHDO staff. 12. REGARDING SUBCONTRACTS AND VENDORS: a. Approvals – Unless expressly authorized in the written Agreement by the CHDO exempt activities such as architectural, engineering and administration may be undertaken and reimbursed by the COUNTY prior to receipt of HUD Request Release of Funds RROF. Exempt activities described in 24 CFR 58.34(1)(1)-(11) are activities that generally have no physical impact on the environment. Otherwise the CHDO 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 enter into by a subcontract(s) with any agency or individual in the performance of this Program that are not exempt activities without the Release of Funds (ROF) from the COUNTY prior to the execution of such Agreement. b. Selection Process – The CHDO 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. c. Section 3 of the Housing and Urban Development Act of 1968– The CHDO 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 shall not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of the Maricopa County Human Services Department Page 28 Section II Special Provisions regulations under 24 CFR § 135. The CHDO has the responsibility of determining Section 3 eligibility. d. Monitoring – The CHDO shall monitor and review all subcontracted services on an annual basis to assure contract compliance. Results of monitoring efforts shall be summarized in Monthly Progress Reports and supported with documented evidence, if requested, of follow-up actions taken to correct areas of noncompliance. 13. THE COUNTY CERTIFIES: a. That a public purpose is served by the financial participation of the COUNTY in the Statement of Work. b. That the HOME Program funds designated for the Work Statement constitute reasonable and prudent assistance necessary for completion of the activity. 14. PROGRAM COMPLETION - Upon completion of the Work Statement, all unspent HOME Program funds and property shall be forfeited to the COUNTY for reallocation as defined by the Maricopa HOME Consortium Policies and Procedures. The CHDO shall continue to be responsible for compliance activities until all HOME Program requirements and contractual obligations are met including affordability restrictions. The CHDO obligation shall not end until all close-out requirements are completed. The COUNTY will notify the CHDO in writing that a Completion Report is due to the COUNTY within sixty (60) days of one of the following occurrences: a. Funds have been expended for the activity; b. The Work Statement has been completed; c. The contract period set forth in this Agreement has expired; or d. The Agreement has otherwise been terminated. Following the receipt and approval of the Completion Report for each activity, the COUNTY will notify the CHDO in writing that each activity is closed. In compliance with 24 CFR 92.502(d) all project completion data shall be entered in IDIS within 120 days of the final drawdown for all activity types. 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 CFR 92.251, Uniform Physical Condition Standards (UPCS) pursuant to 24 CFR 5.703, the final draw has been disbursed; and the projection completion data entered into IDIS. For the purposes of a rental project, the project is complete when construction is complete and the units are ready for occupancy. The identification of a beneficiary is not required for project completion. Vacant rental units may be marked as vacant when completion data is entered. Within six months from the date of project completion, if a rental unit remains unoccupied, the CHDO 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, HUD will require repayment of all HOME funds invested in the unit. 15. FAILURE TO MAKE PROGRESS - Failure of the CHDO to make progress according to the Schedule of Completion may result in contract termination, deobligation of funds or recapture of funds. CHDO agrees to meet with the COUNTY at the site in which the funded activity is taking place to discuss progress and allow the COUNTY to provide technical assistance if: a. The CHDO fails to complete its Environmental Review pursuant to section 5 within one hundred and eighty(180) calendar days from the date the COUNTY executes this Agreement; b. The CHDO fails to commit funds to a specific local project in performance of and in accordance with the terms of this Agreement within eighteen (18) months from Maricopa County Human Services Department Page 29 Section II Special Provisions the execution date the COUNTY executes this Agreement. Commit for the purposes of this paragraph shall have the same meaning as 24 CFR 92.2(2)(i)-(iii). c. If the CHDO purchases vacant land with HOME funds, construction must commence within 12 months. d. The CHDO fails to expend HOME funds in performance of and in accordance with the terms of this Agreement within twenty-four (24) months from the date the COUNTY executes this Agreement. 16. The COUNTY will terminate any Agreement and require repayment of funds from the same Agreement in which the CHDO does not timely perform the activities described in paragraph 15 above or in the milestones 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 I hereof and/or terminate the Agreement for cause pursuant to Section I of this Agreement. 17. In the event that a project is not completed within twenty-four months from the date that the COUNTY executes this agreement, the CHDO must repay the HOME funds. The COUNTY may at its option ask HUD for a 12-month extension provided that the CHDO provides the status of the project, identifies the steps taken to overcome any obstacles to completion, provide proof of adequate funding to complete the project, and provides a schedule with milestone for completion of the project. If HUD does not provide an extension or the COUNTY determines that the CHDO has not provided an adequate basis for a continuance, the CHDO must return funds to the COUNTY. 18. GENERAL CONDITIONS: a. It is expressly understood by the Parties that this Agreement has been negotiated and executed in anticipation of receipt of funds by the COUNTY from HUD pursuant to the HOME Program and that, therefore, the terms, conditions, and sums payable under this Agreement are subject to any changes or limitations that may be required by HUD and HOME regulations. Notwithstanding any other provisions of this Agreement, any payment to CHDO by the COUNTY under this Agreement is contingent upon the actual receipt of funds from HUD. b. Both parties acknowledge that no member of the governing body, nor any employee of the COUNTY who exercises any functions or responsibilities in connection with the carrying out of the activity to which this Agreement pertains, has any personal interest, direct or indirect, in this Agreement. c. The COUNTY may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of all Parties, and provided that such amendments are in compliance with the procedures in the Standard Operating Procedures Administrative Manual. Such amendments shall not invalidate this Agreement nor relieve or release the COUNTY or CHDO from their obligations under this Agreement. Amendments shall be filed with the original Agreement. d. Changes – The COUNTY may, at any time, by written order, make changes within the general scope of this Agreement in any one or more of the following areas: i. Work Statement 1. Which do not increase or decrease the amount of total contract funding; 2. Modify the project timeline as long as the last day of the project timeline is within the end date of the contract; or 3. Modify terms consistent with any change to scope of work required by Federal, State, or COUNTY regulations ordinances or policies. ii. Administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by HUD or local Maricopa County Human Services Department Page 30 Section II Special Provisions regulations, policies, or requirements. It is the CHDO’s responsibility to ensure the latest documents are consulted and followed. e. The County may increase or /decrease Agreement funding resulting from a reallocation pursuant to a majority vote of the Consortium members funding per Consortium/BOS policies with the agreement of both parties; provided the change in funding is approved by the Board of Supervisors. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. f. The CHDO agrees to be familiar with, update as necessary, and comply with the policies and procedures established in the most recent Maricopa HOME Consortium Standard Operating Procedures Manual and all provisions in the most recent Administrative Manual on CD. Non-compliance with the Maricopa HOME Consortium Standard Operating Procedures Manual shall constitute a breach of this Agreement. g. The CHDO agrees to give all notices and comply with all laws, ordinances, rules, building codes, regulations, and lawful orders of any public authority bearing on the performance of activities pursuant to this Agreement. If the CHDO observes that any of the Agreement documents are in conflict with any laws, statutes, building codes, or regulations, it shall promptly notify the COUNTY in writing, and any necessary changes shall be accomplished by appropriate written modification. h. Should the CHDO perform any work knowing it to be contrary to applicable laws, ordinances, rules, building codes, or regulations, it shall assume full responsibility therefore, and shall bear all costs incurred due to its negligence. Any dispute not resolved by mutual agreement by the parties hereto shall be decided in accordance with applicable Arizona laws, ordinances, and codes of the state and local governments. i. Acknowledge the contribution of the COUNTY HOME Program in all published literature, brochures, programs, flyers, etc., during the term of the Agreement. j. Execute and abide by Certifications mandated by HOME Program requirements as listed in HOME CERTIFICATIONS. 19. REVERSION OF ASSETS: Upon expiration of this Agreement, the CHDO shall transfer all remaining unspent funds and the value of other assets, as defined by the terms of affordability (Attachment A) relating to the HOME Investment Partnerships Program, to the AGENCY. A written letter of intent to terminate this Agreement shall be submitted to the COUNTY and AGENCY at least thirty (30) days prior to termination of this Agreement. Maricopa County Human Services Department Page 31 Section II Special Provisions CHDO CERTIFICATIONS In accordance with the provisions of the Home Investment Partnerships Act and with 24 CFR 92.150 of the HOME Investment Partnerships Program Rule, the CHDO certifies that: (A) Before committing any funds to an activity, the CHDO will evaluate the activity in accordance with 24 CFR 92.504 and the guidelines that it adopts for this purpose and complete all assessments required by the rules, including, but not limited to: 1. Complete all income determinations, underwriting and subsidy layering guidelines, rehabilitation standards, refinancing guideline, homebuyer program policies and affordability requires; 2. Complete a timely environmental review; 3. Complete an underwriting review; assess developer capacity, fiscal soundness and neighborhood market conditions; and 4. The CHDO will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing. (B) The CHDO shall affirmatively further fair housing, which means it shall take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. (C) The CHDO will only utilize HOME funds to pay for eligible activities and costs of those activities permitted in 24 CFR 92.300 and not specifically prohibited under 24 CFR 92.214 (Prohibited Activities and Fees). (D) The submission of the program description is authorized under State and local law (as applicable), and that the CHDO possesses the legal authority to carry out the Home Investment Partnerships (HOME) Program, in accordance with the HOME regulations; (E) The CHDO will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations and the requirements of 24 CFR 92.353; and 49 CFR Part 24; and it has in effect and is following 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 under the HOME programs. (F) The CHDO will use HOME funds pursuant to the Five Year Consolidated Plan approved by the HUD and all requirements of 24 CFR Part 92; (G) The CHDO shall comply with Section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 C.F.R. Part 135 (H) The CHDO will provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about: i. The dangers of drug abuse in the workplace; ii. The participating jurisdiction's policy of maintaining a drug-free workplace; iii. Any available drug counseling, rehabilitation, and employee assistance programs; and iv. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will: i. Abide by the terms of the statement; and ii. Notify the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; Maricopa County Human Services Department Page 32 Section II Special Provisions 5. Notifying the COUNTY in writing, within ten calendar days after receiving notice under paragraph (4)(ii) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph (4)(ii), with respect to any employee who is so convicted i. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or ii. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal State, or local health, law enforcement, or other appropriate agency. 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5, and 6. (I) To the best of its knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the COUNTY, 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 loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant, loan, or cooperative agreement, the CHDO will complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in accordance with its instructions; and 3. The CHDO will require that the language of paragraph (F) of this certification be 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 Vendors shall certify and disclose accordingly. (J) The CHDO shall, upon proper notice or with knowledge obtained by itself or others, take any and all proactive actions necessary, and provide any and all applicable remedies to address and correct any act by itself, its employees, officials, successors, assigns, CHDOs, or vendors that resulted in any wrongdoing (intentional or unintentional); misuse or misappropriation of funds; the incorrect or improper disposition of funds; any violation of any federal, state, or local law, rule, or regulation; or the breach of any certification or warranty provided in this Agreement. Signature (CHDO Representative) Date Printed/Typed Name Executive Director/ Title Maricopa County Human Services Department Page 33 Section II Special Provisions APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: A. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this Agreement and is imposed by 31 U.S.C. § 1352 (limitation on use of appropriated funds to influence certain federal contracting and financial transactions). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. B. Drug-Free Workplace Certification 1. By signing and submitting this application or Agreement, the CHDO is providing the certification. 2. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the CHDO knowingly rendered a false certification, or otherwise violated the requirements of the Drug-Free Workplace Act, in addition to any other remedies, HUD may take action authorized under the Drug-Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the CHDO does not identify the workplaces at the time of application, or upon award, if there is no application, the CHDO must keep the identity of the workplace(s) on file in its office and make the information available for federal inspection. Failure to identify all known workplaces constitutes a violation of the CHDO’s drug-free workplace requirements. 4. Workplace identifications must include the actual address of buildings (or parts of buildings), or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, or State employees in each local unemployment office, performers in concert halls or radio stations). 5. If the workplace identified to the agency changes during the performance of the grant, the CHDO shall inform HUD of the change(s), if it previously identified the workplaces in question (see paragraph three). 6. The CHDO may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance: ___________________________________ Check if there are workplaces on file that are not identified here. The certification with regard to the drug-free workplace is required by 24 CFR Part 24, subpart F. 7. Definitions of terms in the Non-procurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. The CHDO’s attention is called, in particular, to the following definitions from these rules: i. "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); Maricopa County Human Services Department Page 34 Section II Special Provisions ii. "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the federal or State criminal drug statutes; iii. "Criminal drug statute" means a federal or non-federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; iv. "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (iii) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of CHDOs or vendors in covered workplaces). Maricopa County Human Services Department Page 35 SECTION III WORK STATEMENT MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Maricopa County Human Services Department Page 36 Section III Work Statement MARICOPA COUNTY HOME Investment Partnerships Program FY 2014-2015 Date: March 1, 2015 DUNS: 015750361 Program Year: FY 2014-2015 Project: Acquisition / New Construction Type of Property: Single Family Residential Amount of Funding $262,600 Work Statement- GCDC will acquire and/or develop sites and provide new construction of four (4) single-family homes on scattered sites for low and very low-income families. GCDC construction staff and subcontractors will accomplish new construction on GCDC owned/acquired lots in Guadalupe, AZ. Qualified families will be required to contribute 50-100 hours of sweat equity during the construction phase. Families will contribute sweat equity in order to comply at a minimum with any HUD Self-help Homeownership Opportunity Program (SHOP) requirements. The GCDC staff will work closely with Lenders and Maricopa County to ensure that families are income qualified. Beneficiaries: Four (4) first time homebuyers at or below 80% of median income level, but above 60%. CHDO will secure affordability through the Recapture Provisions. Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. Beneficiaries income eligibility will be verified by GCDC staff and will comply with 24 CFR 92.203(d)(1) GCDC will also assist families with gathering necessary information to qualify with a permanent lender which requires credit and income verification. Consolidated Plan – Project will increase the supply of affordable rental units for low and very low income households. High priority rated in the Consolidated Plan A. OBJECTIVES AND OUTCOMES: OUTCOMES OBJECTIVE AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY x DECENT Single Family Homebuyer Activities, Acq/Rehab of Housing Activities in a HOUSING Housing Rehab and rental housing, Acq/New Construction targeted revitalization Emergency Rehab, of rental housing, Expansion of assisted area Homebuyer rental units in the private marketplace Assistance Maricopa County Human Services Department Page 37 Section III Work Statement B. LOGIC MODEL: PERFORMANCE INDICATORS OUTPUTS INPUTS/RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES GCDC staff, SHOP, Acquire and/ or Four families/16-20 Increased GCDC Staff, HOME funds, family develop and individuals. Local affordable SHOP, HOME volunteer sweat equity, construct four (4) volunteers, GCDC housing for 4 funds, family participation Western units of Affordable Construction Staff low mod income volunteer and States HOME Consortium Housing. and Subcontractors. families. sweat equity, (HUD SHOP) and local Improved quality participation banks. of life. Western States HOME Consortium (HUD SHOP) and local banks. C. SITE INFORMATION: Four building sites on zoned and developed residential lots within the Town of Guadalupe limits and service area. D. PERFORMANCE REPORTING - GOALS: Project Completion date: Must be completed within 24 months of contract execution TIMELINE OF ACTIVITIES START COMPLETION MILESTONES: Tasks to be Performed DATE DATE Application Dec 2013 Complete Environmental Review Dec 2013 Complete Project Selection Dec 2013 Complete Market Study Mar 2013 Complete Financing Secured Aug 2015 Oct 2015 Underwriting Dec 2013 Dec 2013 Contract Execution April 2015 April 2015 Set-up in IDIS April 2015 April 2015 Project start Nov 2015 Sep 2016 Construction/Homebuyer Assistance Jan 2016 Sep 2016 Close-out/ Completion Report Oct 2016 Nov 2016 Any change to the Timeline will need to be approved by the COUNTY. E. ACTIVITY FOLLOW-UP AND LONG TERM COMMITMENT: The HOME units created will have a period of affordability based on the direct amount of homebuyer assistance as outlined in Attachment A-Affordability Requirements.. During this time, the project will be monitored annually and the units will be verified annually. The affordability standard will be enforced by a promissory note and deed of trust. Maricopa County Human Services Department Page 38 Section III Work Statement F. ACTIVITY BUDGET SUMMARY: ACTIVITY OTHER HOME CASH TOTAL ACTIVITY RESOURCES AMOUNT AMOUNT BUDGET AMOUNT Acquisition $52,000 $52,000 Demolition $ 0 New Construction $220,000 $175,793 $395,793 Reconstruction $ 0 Rehabilitation $ 0 Relocation $ 0 Development Costs (b) $117,513 $117,513 Staff Costs (b) $5,000 $5,000 Services (b) $ 0 Administration Costs $2,500 $2,500 Development Fees $26,600 $26,600 Other (Specify) $16,000 $16,000 Construction Management TOTALS (for each $262,600 $ 0 $352,806 $615,406 column) (a) If match will be in the form of cash and will be used in this project only. Do not include non-cash match in this budget. (b) These costs must be address specific; otherwise, these costs must be considered administrative costs. (c) $2,500 per activity/property will be withheld from the total amount of HOME funds obligated to each activity/address until a completion form is submitted by Guadalupe CDC. G. ACTIVITY MATCH: SPECIFIC AMOUNT FORM OF MATCH SOURCE $3,000 In-kind contributions Family Sweat Equity $62,650 Cash-Non federal grants FHLB-AHP TOTAL $65,650 H. SALES PRICE: The sales price will be determined by a duly licensed appraisal and the property will be sold at or below the appraised value. In addition, the property value shall not exceed 95 percent of the median purchase price for the area as described in 24 CFR 92.254(a)(2)(iii). The income of buyers shall be determined according to the requirements at 92.203. I. CHDO PROJECT PROCEEDS: All proceeds generated from CHDO development activities shall be considered project proceeds and subject to the project proceeds requirements set forth in HOME Program regulations. Project Maricopa County Human Services Department Page 39 Section III Work Statement proceeds shall be tracked by the CHDO and held in an interest bearing account. Documentation supporting the amount of project proceeds received and expended shall be submitted on the periodic progress report, if requested by the COUNTY. Project proceeds shall be retained and expended by the CHDO for acquisition and/or new construction of single family homes for qualified low income families as defined in 24 CFR 92. J. CONVERSION TO RENTAL: Any HOME homebuyer units that have not been sold to an eligible homebuyer within nine (9) months of receipt of a Certificate of Occupancy 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 CFR 92.254(a)(3). If the vacant property is not converted, HOME funds must be repaid to the COUNTY. K. AFFORDABILITY REQUIREMENTS: 1. The housing that is developed with HOME funds must be single family housing. The family or individual acquiring the housing must qualify as low income and maintain the housing as the principal residence throughout the Period of Affordability. 2. Recapture provisions (Attachment C) will be used to ensure compliance with the Period of Affordability required by HUD at 92.254 of the HOME regulations. The affordability restrictions will be secured by a Promissory Note and a Deed of Trust. The Period of Affordability is based on the direct HOME subsidy that enabled the homebuyer to buy the property. The direct subsidy includes down payment, closing costs, interest subsidies, or other HOME assistance provided directly to the homebuyer. In addition, the direct subsidy includes any assistance that reduced the purchase price from fair market value to an affordable price. If any of the HOME assisted units developed under this Agreement are sold below fair market value, the difference between the fair market value and the purchase price shall be considered to be directly attributable to the HOME subsidy. Maricopa County Human Services Department Page 40 SECTION IV COMPENSATION MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Maricopa County Human Services Department Page 41 Section IV Compensation A. COMPENSATION In accordance with federal regulations, including 24 CFR 92, the COUNTY is responsible for ensuring the administration of HOME Program funds in accordance with all program requirements. Subject to the availability and authorization of funds for the explicit purposes set forth below, COUNTY will pay the CHDO compensation for services rendered as indicated in the following subsections. A total of $2,500 per activity/property will be withheld from the total amount of HOME funds obligated and disbursed to each activity/address until a Completion Form is submitted by Guadalupe CDC. B. METHOD OF PAYMENT CHDO agrees to submit monthly reimbursement requests utilizing the approved Reimbursement Request Form (See Sample) to COUNTY. CHDO may request funds only after the CHDO has satisfied the funding contingencies and federal Environmental Review conditions and has a written agreement in place for project activities. Request for reimbursement must be made using the request for payment incorporated in this Agreement. COUNTY agrees to reimburse CHDO for actual allowable costs incurred, upon certification of HUD Environmental Release of Funds and submittal by CHDO of an itemized statement of actual expenditures incurred, supported by appropriate documentation. Reimbursement by COUNTY is not to be construed as final in the event that HUD disallows reimbursement for the Program or any portion thereof. CHDO must maintain proof of said expenditures including checks, payrolls, time records, invoices, contracts, vouchers, orders and other accounting documents evidencing in proper detail the nature and propriety of the respective charges as may be required by applicable federal rules and regulations, including requirements by the Federal Office of Management and Budget, and as may otherwise reasonably required per the COUNTY to determine or confirm that any such expenditures are pursuant and within the scope of work. C. REIMBURSEMENT The COUNTY shall provide financial assistance in an amount up to Four Hundred Sixty Thousand dollars ($262,600) subject to the terms of this Agreement and availability of funds. This Agreement price constitutes the COUNTY’s entire participation and obligation in the performance and completion of all work to be performed under this Agreement. D. RELEASE OF FUNDS (ROF) No funds may be encumbered prior to the completion of the Environmental Review except for exempt activities as described in 24 CFR 58.34(a)(1)-(11) that generally have no physical impact on the environment. The Environmental Review Record (ERR) must be completed before any funds are obligated. Funding is also conditioned upon the completion of the ERR of every activity site by address. The responsibility for certifying the appropriate Environmental Review Record and ROF shall rest with the COUNTY. It is the responsibility of the CHDO to notify the COUNTY, and to refrain from making any commitments and expenditures on a site until a Release of Funds has been issued by the COUNTY. Failure to meet these conditions will mean that requested funds will not be disbursed. Maricopa County Human Services Department Page 42 Section IV Compensation REIMBURSEMENT REQUEST FORM MARICOPA COUNTY HUMAN SERVICES DEPARTMENT FOR MCHSD USE ONLY HOME INVESTMENT PARTNERSHIPS PROGRAM ALLOCATION 14/15 $ 262,600.00 Invoice Date: BALANCE $ 262,600.00 CHDO Developer: Guadalupe CDC Address: 5933 E. Calle Milagros City/Zip: Guadalupe, AZ 85283 FISCAL YEAR GOAL: Construction 4 single-family homes in Guadalupe ACCOMPLISMENTS: Affordable Housing FY 14/15 PROJECT BUDGET SUM OF ACTIVITY PRIOR THIS INVOICE IDIS # ACTIVITY BUDGET INVOICES TO MCHSD BALANCE MATCH APPLIED Acq/New Construction of single family New Construction $ 220,000.00 $ 220,000.00 $ - Developer Fee $ 26,600.00 $ 26,600.00 $ - Construction Management $ 16,000.00 $ 16,000.00 $ - SUB TOTAL $ 262,600.00 $ - $ - $ 262,600.00 $ - TOTALS $ 262,600.00 $ - $ - $ 262,600.00 $ - Maricopa County Human Services Department Page 43 SECTION V ATTACHMENTS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Maricopa County Human Services Department Page 44 Section V Attachments ATTACHMENT A AFFORDABILITY REQUIREMENTS The CHDO agrees to comply with the specific provisions of 24 CFR Part 92, Subpart F, in addition to the following requirements. I. HOMEOWNERSHIP PROGRAMS (Homebuyers) Properties must be affordable to low-income purchasers. Affordability is achieved if the monthly payments for principal, interest, property taxes and insurance do not exceed 30% of the gross income of a homebuyer. The purchase agreement must require repayment of the funds if the housing does not meet the affordability requirements for the specified time period. The term of affordability for subsequent purchase single-family projects shall be up to 15 years after the property is sold to the new homeowner. The actual term of the affordability standard is determined by the type of property being occupied as a new homeownership initiative. If the property is an existing structure, the term of affordability is 5 years if less than $15,000 of HOME money is utilized, 10 years for $15,000 to $39,999 and 15 years for amounts over $40,000. These terms of affordability remain in existence from the time of initial purchase by the original homebuyer. Any changes to this policy will be clearly defined in the Work Statement. II. RENTAL PROGRAMS * Every HOME assisted unit is subject to rent controls, which insure rents are affordable to low-income families. There are two rental rates assigned to the HOME assisted units known as High and Low rental rates. High rental rates are required for up to 80% of the HOME assisted rental units and must be the lesser of: • Section 8 Fair Market Rents (FMR's) or area-wide exception rents for existing housing minus tenant paid utilities; OR • Rents which are 30% of the adjusted income for households at 65% of median income or area-wide exception rents minus tenant paid utilities; Low rental rates are required for at least 20% of the HOME assisted units in projects with five or more HOME assisted units and must be: • Equal to 30% of annual incomes for households at 50% of median income minus tenant paid utilities. * Note: Calculations and current standards for FMR's, status of area rent exceptions, median income standards and High or Low rental rates vary annually. The most current figures must be used throughout the period of affordability. These can be obtained from the local HUD Office or the COUNTY. UTILITIES - The maximum allowable rent must be reduced if the tenant pays for utilities. The FMR's provided on which rental rates are calculated include all utilities except telephone. (Included in FMR are allowances for water, gas, electrical and associated combined utility fees for municipal trash removal, etc.) If the tenant pays for any of them then the rent must be reduced accordingly. Any proposed utility adjustment other than a reduction of rent for tenant paid utilities must be approved by the AGENCY in advance. Maricopa County Human Services Department Page 45 Section V Attachments BASIC CALCULATION FOR AFFORDABLE HOME RENTAL RATES - High rent calculations for 80% of HOME assisted units: Obtain the area FMR's by bedroom size and/or any area wide rent exceptions. This information is available from the COUNTY. Obtain the maximum rents, based on the number of bedrooms for families earning 65% of median income. Again, this information is available from the COUNTY. The lower of the above two calculations provides the high rent for 80% of the HOME assisted units. Low rent calculations for 20% of HOME assisted units: Obtain from the COUNTY the rents allowed by bedroom size for families earning 50% of median income. This is your low rent rate for 20% of the HOME assisted units. Adjust this figure by subtracting any tenant paid utilities. TERM OF RENT CONTROL - * Rent control term is determined by the average amount of HOME investment per unit as follows: (a) All New Construction or Acquisition of New Housing has a minimum affordability period of 20 years. (b) Where units are rehabilitated or purchased as existing units the following terms of affordability apply: (1) Where the average investment per unit is less than $15,000 there is a 5-year minimum period of affordability. (2) Where the average investment per unit is $15,000 to $40,000 there is a 10-year minimum period of affordability. (3) Where the average investment per unit is over $40,000 there is a 15-year minimum period of affordability. * If the individual project is FHA insured, the term of affordability is the term of the mortgage insurance or the specified minimum for the investment, whichever is greater. GENERAL RENT AFFORDABILITY CONSIDERATIONS - Monthly rents and unit allowances must be recalculated annually by the owner of the units. Annual publications of Fair Market Rents (FMR) are available from HUD or the COUNTY, so new rent rates can be established. This means according to the FMR HOME High or Low rental rates may increase or decrease. HOME Family Income Limits are calculated periodically by HUD and available from the local HUD office. Maricopa County Human Services Department Page 46 Section V Attachments ATTACHMENT B BASIC THRESHOLD REQUIREMENTS MAXIMUM PER UNIT SUBSIDY Minimum per unit investment must be no less than $1000. 1. Homebuyers a. The purchaser’s income may not exceed 80% of the median income for Phoenix. b. The purchaser must occupy the new property as their principal residence. c. The appraised value of the property to be acquired must not exceed 95% of median area purchase price of existing housing per 92.254(a)(2)(iii)s for the type of housing being purchased. 2. Rental Housing Production a. Rents must be controlled in accordance with Section 8 guidelines for the Phoenix area. (See Affordability, Attachment A) b. Tenants must be low income, 1) 20% of units must be occupied by persons whose income is at or below 50% of the Phoenix median income. 2) Persons whose income is below 80% of the Phoenix median income must occupy the balance of the units. If there are more than five units in a project, then at least 20% of the units must be occupied by persons whose income is at or below 50% of the Phoenix median income. c. Maximum subsidy limits established by HUD cannot be exceeded. d. Special accessibility requirements apply to some rental projects. 3. Energy Saving Requirements HUD funds utilized in housing programs require specific energy efficient procedures. All new construction must comply with the current edition of Council of American Building Officials (CABO) Model Energy Code in accordance with Part 92.251 and the International Energy Conservation Code. Substantial rehabilitation must comply with the HUD Cost Effective Energy Conservation and Effectiveness Standards (CEECS) in 24 Part 39. In other rehabilitation activities, the below measures are to be incorporated that are cost effective. Independent studies by public finance and economic development firms have proved that up front energy saving techniques are amortized in a few years by savings in resultant lower electric and gas utility payments made by residents of affordable housing. In order to comply with these energy saving requirements in the Phoenix area, it will be necessary to provide an insulation envelope that includes R-19 values in walls and R-30 in ceilings/roofs. An approved vapor barrier must be included with the exterior insulation. All cracks and voids in the exterior building envelope shall be sealed to prevent air infiltration that can count for as much as 40% of energy loss. Ducts installed in uncooled spaces must have R-6 insulation. Thermostats are to be installed that control temperature ranges from 55o to 85o F and located away from heat generating devices such as refrigerators. In addition, windows will be reduced in size to the minimum area and shall be double-glazing. Sun struck windows are to be covered with sun screens. Additional considerations might include the use of vinyl framed windows (with improved ultraviolet barrier provisions) in lieu of wood or metal framing as they are generally lower cost and do not require periodic painting. Limit the use of dark colored roofs and walls as they absorb heat to a greater degree. The use of high-efficiency energy heat pumps will provide heating and cooling at the same installation cost of separate evaporative cooler and furnace systems. Ceiling fans will extend the comfort range of occupants to the low 80's and operate at low cost. If reduced air infiltration envelopes described above are installed, the energy costs have been demonstrated to be the same or lower for the average informed homeowner utilizing heat pump systems. Experience has demonstrated significant lack of proper maintenance of evaporative Maricopa County Human Services Department Page 47 Section V Attachments coolers that ultimately cause extensive roof repairs and frequent cooler replacements, increasing long-term costs to the homeowner. HUD has provided a Model Energy Code Compliance Guide, MECheck Manual, HUD-1560-PDR dated October 1995. The specific features of individual house plans and designs can be individually reviewed with a software version of MECheck, however the above measures prescribed in the Compliance Guide will satisfy the required energy savings in a vast majority of affordable home plans that are utilized in the Phoenix area. 4. Lead-Based Hazards Any activity that receives HOME funds must comply with 24 CFR 92.355 § Part 35, including first-time homebuyer programs and rental assistance programs, as well as rehab activities. HOME funds can be targeted to specific units; however, all units in the assisted building are subject to lead-based paint hazard controls. Notification of lead-based hazards is required for tenants, purchasers, and owner-occupants of all HOME assisted units constructed before 1978. Defective paint surfaces in all units constructed before 1978 will be inspected regardless of the occupancy of the unit. If the unit houses a child under 7 who has an EBB greater than 25, all interior and exterior chewable surfaces must be tested with an XRF tester. If lead-based paint is found, the surfaces must be treated according to Part 35. It is permissible to not test and treat all surfaces according to Part 35. 5. Property Standards All housing will meet property standards of 24 CFR 92.251, including Uniform Physical Condition Standards (UPCS) pursuant to 24 CFR 5.703, upon project completion and during the period of affordability. Housing that is constructed or rehabilitated with HUD funds must meet all applicable local codes, rehabilitation standards, ordinances and zoning ordinances at the time of project completion. Housing must be safe, decent and sanitary. . New construction projects must also meet the accessibility requirements as outlined in 24 CFR 92.251 (a)(2)(i) which implements Section 504 of the Rehabilitation Act of 1973 and Titles II and III of the Americans with Disabilities Act. The County will conduct progress and final inspections of construction to ensure that work is done in accordance with the applicable codes, the construction contract, and construction documents. Maricopa County Human Services Department Page 48 Section V Attachments ATTACHMENT C RECAPTURE PROVISIONS RIDER #3 TO FORGIVABLE HOME PROGRAM LOAN AGREEMENT NOTICE TO HOME PROGRAM ASSISTED BUYER: THIS HOME FUNDED MORTGAGE IS SUBJECT TO RECAPTURE. IT IS MOST IMPORTANT THAT YOU READ THIS NOTICE CAREFULLY. You have applied for HOME assistance in your housing. Under this program the U. S. Department of Housing and Urban Development (HUD) through the Maricopa County HOME Investment Partnerships Program will provide assistance to your purchase of property at: Definitions “Affordability Period or Period of Affordability”— As defined by HUD at 92.254 of the HOME regulations the period of affordability is determined by the direct HOME subsidy provided to the homebuyer that enabled the homebuyer to purchase the unit. Any HOME project proceeds used to provide direct assistance to the homebuyer is included when determining the period of affordability. The period of affordability varies with the level of HOME Funds or project proceeds provided. The following table outlines the required minimum affordability periods for homebuyer projects that are subject to recapture restrictions:: HOME Funds/Project Affordability Period Proceeds Provided <$15,000 5 years $15,001 to $40,000 10 years >$40,000 15 years “Direct HOME subsidy” to the homebuyer is the amount of HOME assistance that enabled the homebuyer to purchase the dwelling unit and includes down payment, closing costs, interest subsidies, or other HOME assistance provided directly to the homebuyer. In addition, direct subsidy includes any assistance that reduced the purchase price from fair market value to an affordable price. This does not include any HOME investment for acquisition and/or construction. “Net proceeds” of a sale are the sales price minus the superior loan payment (other than HOME funds) and any closing costs. Policy and Regulations Under the HOME Recapture Provision the following conditions apply. You will be required to execute a note and second mortgage (or deed of trust) with addendum at settlement of the mortgage in favor of Guadalupe Community Development Corporation (GCDC) to ensure repayment of the assistance. GCDC will enforce the following Recapture Provisions: The amount of HOME funds subject to recapture is the entire amount of the direct HOME subsidy from the net proceeds available from the sale of the property (as defined in number 3 above). If there are insufficient net proceeds available from the sale of the property, the homebuyer will not be required to repay the difference between the total direct HOME subsidy and the amount recaptured from available net proceeds. Repayment of the HOME subsidy is due at sale of property, or if the property no longer remains the owner’s permanent residence. Maricopa County Human Services Department Page 49 Section V Attachments In the event this mortgage is assumed, GCDC will demand payment of the recapture amount from the mortgagor who is in possession of the property at the time an event occurs that activates the Recapture Provision. NOTE: Assumptors should be aware that the recapture amount due to GCDC will be calculated based on the assistance paid on behalf of the original mortgagor as well as that amount paid on behalf of all previous assumptors of the mortgage. Maricopa County Human Services Department Page 50 Section V Attachments ATTACHMENT D MBE/WBE PROVISIONS CHDO shall conduct all procurement transactions in a manner to provide, to the maximum extent practical, open and free competition. According to 24 CFR 84, CDHO shall make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small and minority businesses and women’s business enterprises. Per 24 CFR 85.36 ( c ) (4), grantees and subgrantees will ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, grantees and subgrantees will not preclude potential bidders from qualifying during the solicitation period. Further, 24 CFR 85.36 (e) (2) (I) requires that qualified small and minority businesses and women’s business enterprises are to be placed on solicitation lists. Any solicitation list utilized by the CHDO for procurement purposes must be open and inclusive, and routinely updated and managed to provide timely and up to date information on vendors available to provide the necessary services and products. A solicitation list is any properly developed database, classification or categorizing of potential service providers that provides information on the capabilities and resources of providers. Maricopa County Human Services Department Page 51 Section V Attachments ATTACHMENT E RELIGIOUS ORGANIZATIONS Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the HOME program. Organizations funded under the HOME program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the assistance funded with HOME. If an organization conducts such activities, the activities must be offered separately, in time or location, from the HOME funded assistance and participation must be voluntary for the beneficiaries of the HOME assistance provided. HOME funds may not be used to support any inherently religious activities. A HOME-funded organization shall not discriminate, in providing program assistance, against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. A religious organization that participates in the HOME program will retain its independence from federal, state and local governments, and may continue to carry out its mission including the definition, practice and expression of its religious beliefs. A HOME-funded religious organization retains its authority over its internal governance and it may retain religious terms in its organization’s name, select its board members on a religious basis and include religious references in its mission statements and other governing documents. Faith-based organizations may use space in their facilities, without removing religious art, icons, scriptures, or other religious symbols. HOME funds may not be used for the acquisition, construction, or rehabilitation of structures to the extent that those structures are used for inherently religious activities. HOME funds may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activities, HOME funds may not exceed the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to HOME funds. Sanctuaries, chapels, or other rooms used as its principal place of worship, are ineligible for HOME- funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the term of the grant, is subject to government-wide regulations governing real property disposition. (See 24 CFR Parts 84 and 85). If a state or local government voluntarily contributes its own funds to supplement federally funded activities, the state or local government has the option to segregate the federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds. Maricopa County Human Services Department Page 52 Section V Attachments ATTACHMENT F REQUEST FOR REIMBURSEMENT COVER LETTER AND CERTIFICATION LETTERHEAD Date Amy Jacobson, Assistant Director Maricopa County Human Services Department 234 N. Central Avenue, 3rd Floor Phoenix, AZ 85004 Dear Ms. Jacobson: Subject: Reimbursement Request FY 2014 CHDO Funds The (name of CHDO) is hereby requesting $ of its HOME funds allocation for reimbursement of expenditures for the following programs/activities: IDIS# Amount Requested $ Address/Activity Environmental Release Date This letter will certify that the (name of CHDO) has complied with the requirements of the HUD, Maricopa County Community Development, and the specific requirements of the HOME program in the administration of the above-referenced programs/activities. (Name of CHDO) additionally certifies that financial documents, environmental reviews, and the project files as required under the HOME program are on file at our office. The required match is certified to be from non-federal sources and has not been previously used. Enclosed with this request are the following: 1. Reimbursement Request on County Form 2. Expense documentation (HUD 1 statement as applicable for acquisitions) 1. Match documentation 2. Other documentation or certifications as needed If there are any questions, please contact at (phone number) or email@xxx.gov. Sincerely, Name Title Maricopa County Human Services Department Page 53 Section V Attachments ATTACHMENT G HOME FUNDS MATCH CERTIFICATION Maricopa County Human Services Department Page 54 Section V Attachments ATTACHMENT H CHDO PROGRESS REPORT Maricopa County Human Services Department Page 55 Section V Attachments ATTACHMENT I SAMPLE DEED OF TRUST ______________________________________________________________________________ Requested By: When Recorded Return to: DEED OF TRUST Effective Date: County and State where Real Property is located: TRUSTOR/OWNER: Guadalupe Community BENEFICIARY: Maricopa County Development Corporation TRUSTEE: Maricopa County Obligation Secured: Promissory Note Amount $ Subject Real Property: See Exhibit A FOR THE PURPOSE OF SECURING: (a) Performance of each agreement of Trustor herein contained. (b) Payment of the indebtedness evidenced by promissory note or notes of even date herewith, and any extension or renewal thereof, in the principal sum of ________, executed by Trustor in favor of Beneficiary or order. Payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory note or notes, (c) This Deed of Trust, the Promissory Note and (d) The position of Beneficiary in relation to other creditors. Subject Real Property Legal: See Exhibit A 1. Conveyance. Trustor irrevocably grants and conveys to Trustee in trust, with power of sale, the Subject Real Property, subject to existing taxes, covenants, conditions, restrictions, rights of way and easements of record, to be held as security for the payment by Trustor of the Obligation Secured and for the performance of other obligations of Trustor as set forth in this Deed of Trust. 2. Appurtenances. Trustor grants, together with the Subject Real Property, all buildings and improvements now or hereafter erected thereon and all fixtures attached to or used in connection with the Subject Real Property (including, without limiting the generality of the foregoing, all ventilating, heating, air conditioning, refrigeration, plumbing and lighting fixtures), together with all leases, rents, issues, profits or income therefrom (hereinafter “Property Income”), subject, however, to the right power and authority hereinafter given to Beneficiary to collect and apply such Property Income. Maricopa County Human Services Department Page 56 Section V Attachments 3. Taxes, Assessments and Trust Expenses. Trustor shall pay, before delinquent, all taxes and assessments affecting the Subject Real Property, all encumbrances, charges and liens, when due, with interest, on the Subject Real Property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this trust and all lawful charges, costs and expenses of any reinstatement of this Deed of Trust following a default. 4. Fire Insurance. Trustor shall, at Trustor’s expense, maintain in force fire and extended coverage insurance in any amount of not less than the full replacement value of any buildings which may exist on the Subject Real Property with loss payable to Beneficiary. Trustor shall provide fire insurance protection on its furniture, fixtures and other personal property on the Subject Real Property in an amount equal to the full insurable value thereof and promises that any insurance coverage in this regard will contain a waiver of the insurer’s right of subrogation against Beneficiary. The amount collected under any insurance policy may be applied to any indebtedness hereby secured and in such order as the Beneficiary may determine, or at the option of the Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default hereunder or cause discontinuance of any action that may have been or may thereafter be taken by Beneficiary or Trustee because of such default. 5. Liability Insurance. Trustor shall, at Trustor’s expense, maintain in force policies of liability insurance, with Beneficiary as an additional insured thereunder, insuring Trustor against any claims resulting from the injury to or the death of any person or the damage to or the destruction of any property belonging to any person by reason of Beneficiary’s interest hereunder or the use and occupancy of Subject Real Property by Trustor. Such insurance shall be include:: 5a. Against any claim resulting from injury to or the death of any one person. 5b. Against any claim resulting from injury to or deaths of any number of persons from any one accident. 5c. Against any claim resulting from the damage to or destruction of any property belonging to any person. 6. Processing of Insurance Policies. Trustor shall promptly deliver to Beneficiary the originals or true and exact copies of all insurance policies including flood insurance (if required) by this Deed of Trust. Trustor shall not do or omit to do any act which will in any way impair or invalidate any insurance policy required by this Deed of Trust. All insurance policies shall contain a written obligation of the insurer to notify Beneficiary in writing at least 10 days prior to any cancellation thereof. 7. Indemnification of Trustee and Beneficiary. Trustor shall hold Trustee and Beneficiary, harmless from and indemnify them for any and all claims raised by any third party against Trustee, Beneficiary, or Program Contractors resulting from their interests hereunder or the acts of Trustor. Such indemnification shall include reasonable attorneys’ fees and costs, including cost of evidence of title. Trustor shall appear in, and defend, any action or proceeding purporting to affect the security hereof or the rights or powers of the Trustee, Beneficiary, or Program Contractors; and shall pay all costs and expenses of Trustee, Beneficiary, or Program Contractors, including costs of evidence of title and attorneys’ fees in a reasonable sum in such action or proceeding which Trustee, Beneficiary, or Program Contractors may appear, and in suit brought by Beneficiary to foreclose on this Deed of Trust. 8. Right of Beneficiary or Trustee to Pay Obligations of Trustor. If Trustor fails or refuses to pay any sums due to be paid by it under the provisions of this Deed of Trust, or fails or refuses to take any action as herein provided, then Beneficiary or Trustee shall have the right to pay any such sum due to be paid by Trustor and to perform any act necessary. The amount of such sums paid by Beneficiary or Trustee for the account of Trustor and the cost of any such action, together with interest thereon at the maximum legal contractual rate per annum, from the date of payment until satisfaction, shall be added to the Obligation Secured, unless otherwise specified by Beneficiary at the time of such payment. Maricopa County Human Services Department Page 57 Section V Attachments The payment by Beneficiary or Trustee of any such sums or the performance of any such action shall be prima facie evidence of the necessity therefore. 9. Condemnation. Any award of damages in connection with any condemnation or injury to any of the Subject Real Property by reason of Public use or for damages for private trespass or injury thereto are assigned in full and shall be paid to Beneficiary, who shall apply them to the payment of the principal of the Obligation Secured, the interest thereon, and any other charges and amounts secured hereby in such manner as Beneficiary may elect. Any remaining balance shall be paid to Trustor. Beneficiary may, at Beneficiary’s option, appeal from any such award in the name of Trustor. Unless Trustor and Beneficiary otherwise agree in writing, any application of such proceeds to principal shall not extend or postpone the due dates of any installment payments of the Obligation Secured or change the amount of such payments. 10. Care of Property. Trustor shall take reasonable care of the Subject Real Property and the buildings thereon and shall maintain them in good repair and condition as at the original date of this Deed of Trust, although ordinary depreciation is expected. Trustor shall commit or permit no waste and do no act which will unduly impair or depreciate the value of the Subject Real Property as required, then Beneficiary or Trustee, at their option, may make necessary repairs and add the cost thereof to the Obligation Secured. Trustor shall not abandon any water rights, power rights or any rights of whatever nature which are appurtenant to the Subject Real Property. 11. Right to Inspect Subject Real Property. At all convenient and reasonable times, upon prior notice to Trustor, Beneficiary or Trustee shall have the right and license to go on and into the Subject Real Property to inspect it in order to determine whether the provisions of this Deed of Trust are being kept and performed. 12. Event of Default. Each of the following shall be considered an event of default of this Deed of Trust: 12a. The failure of Trustor to make any payment hereunder or under the Obligation Secured on or before the due date thereof; 12b. The failure of Trustor to perform any duty required by this Deed of Trust; 12c. The removal or attempted removal by Trustor of any property included in the Subject Real Property without the consent of Beneficiary; 12d. Abandonment of the Subject Real Property by Trustor; 12e. The filing, execution or occurrence of: (1) A petition in bankruptcy by or against Trustor. (2) A petition or answer seeking a reorganization, composition, readjustment, liquidation, dissolution or other relief of the same or different kind under any provision of the Bankruptcy Act. (3) Adjudication of Trustor as a bankrupt or insolvent, or insolvency in the bankruptcy equity sense. (4) An assignment by Trustor for the benefit of creditors, whether by trust, mortgage or otherwise. (5) A petition or other proceedings by or against Trustor for the appointment of a trustee, receiver, guardian, conservator or liquidator of Trustor with respect to all or substantially all its property. Maricopa County Human Services Department Page 58 Section V Attachments 6) Trustor’s dissolution or liquidation or the taking of possession of Trustor’s property by any governmental authority in connection with dissolution or liquidation. 12f. A determination by Beneficiary that the security of the Deed of Trust is inadequate or in danger of being impaired or threatened from any cause whatsoever. 12g. The sale, conveyance, transfer or attempted conveyance or transfer, or subjection to a mortgage or deed of trust, whether voluntary, involuntary or by operation of law, of the Subject Real Property or any interest in it, without prior written consent of Beneficiary. Notwithstanding the forgoing, Beneficiary expressly agrees that any refinance of indebtedness on the Property to which this Note and Deed of Trust are subordinate does not constitute a default so long as such refinancing is conducted for the sole purpose of loss mitigation, foreclosure prevention or retention of the Property as the Borrower’s primary residence. Any refinance activity regarding indebtedness on the Property for purposes of “cashing out,” equity or that is otherwise not for the purpose of loss mitigation, foreclosure prevention, or retention of the property for use as the Borrower’s primary residence is hereby deemed to constitute a default of the Note and Deed of Trust during the 84 month duration of the Note. 13. Acceleration. In the event of default by Trustor, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written notice setting forth the nature thereof and of Beneficiary’s election to cause the Subject Real Property to be sold under this Deed of Trust. Beneficiary shall also deposit with Trustee all documents evidencing the Obligation Secured and any expenditures secured hereby. 14. Trustee’s Sale. Upon receipt of Beneficiary’s notice of election to cause the Subject Real Property to be sold, Trustee shall, in accordance with all provisions of law, give notice of Trustee’s Sale and, after the lapse of the required amount of time, sell the Subject Real Property at public auction, at the time and place specified in the Notice of Trustee’s Sale, to the highest bidder of cash in lawful money of the United States, payable at the time of sale. Any persons, including Trustor, Trustee or Beneficiary may purchase at the Trustee’s Sale. Trustee may postpone or continue the sale by giving notice of postponement or continuance by public declaration at the time and place last appointed for sale. Upon sale, Trustee shall deliver to the purchaser a Trustee’s Deed conveying the Subject Real Property, but without any covenant or warranty, expressed or implied. 15. Proceeds of Trustee’s Sale. After deducting all costs, fees and expenses of Trustee and of this trust, including the cost of evidence of title in connection with the sale and reasonable attorney’s fees, Trustee shall apply the proceeds of sale to payment of all sums then secured hereby and all other sums due under the terms hereof, with accrued interest, and the remainder, if any, to the persons legally entitled thereto or as provided by ARS §33-812 as currently codified or as amended. 16. Defaults on Prior Encumbrances. If there are mortgages upon the Subject Real Property or other encumbrances which are prior in time or prior in right, then Trustor promises to comply with the terms of those prior mortgages or encumbrances. If Trustor fails to comply with such terms and defaults on those mortgages or obligations, such default shall also be considered a default of this Deed of Trust, and Trustee or Beneficiary herein may advance the monies necessary to remedy such defaults, and, if it does, such monies shall be added to the Obligation Secured and shall bear the Maximum contractual legal rate of interest from the date monies are tendered unless otherwise specified by Beneficiary at the time of such payment. Beneficiary may also proceed on this default by exercising the same remedies it has on this Deed of Trust. Maricopa County Human Services Department Page 59 Section V Attachments 17. Deficiency Judgment. Unless prohibited by law, Beneficiary shall be entitled to a deficiency judgment against Trustor if the Trustee’s Sale yields an amount insufficient to fully satisfy Trustor’s obligation hereunder pursuant to A.R.S §33-814 as presently codified or amended. 18. Foreclosure and Other Remedies. In lieu of sale pursuant to the power of sale conferred hereby, this Deed of Trust may be foreclosed in the same manner provided by law for the foreclosure of mortgages on real property. Beneficiary shall also have all other rights and remedies available hereunder and at law or in equity. All rights and remedies shall be cumulative. In the event of a foreclosure or deed in lieu of foreclosure of the First Mortgage, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the First Mortgagor’s ability to sell the property shall have no effect on subsequent owners or purchaser of the Property. Any person, including his successors or assigns (other than the Owner/First Mortgagor, or a related entity of the Owner/First Mortgagor) receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Mortgage shall receive title to the Property free and clear from such restrictions. All restrictions relating to affordable housing programs that are otherwise allowed by HUD policy must automatically terminate upon foreclosure, deed-in-lieu of foreclosure, or assignment of the insured mortgage to HUD, its Secretary, and/or its assigns. The restrictions will automatically terminate if title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary of HUD. 19. Reinstatement After Default. Notwithstanding Beneficiary’s acceleration of sums secured by this Deed of Trust, Trustor shall have the right to have any proceedings begun by Beneficiary to enforce this Deed Trust discontinued and to have the Deed of Trust reinstated at any time before the day of the Trustee’s Sale or before the filing of a foreclosure action. In order to have the Deed of Trust reinstated after default, the Trustor must: 19a. Pay to Beneficiary the entire amount due under this Deed of Trust and the Obligation Secured, other than such portion of the principal as would not be due had no default occurred; 19b. Cure all defaults or covenants or agreements of Trustor as contained in this Deed of Trust; 19c. Pay costs and expenses incurred by Beneficiary and Trustee in enforcing the terms of this Deed of Trust and pursuing remedies; 19d. Pay reasonable attorney’s fees actually incurred by Beneficiary and Trustee 19e. Pay the recording fee for any cancellation of notice of sale; 19f. Pay the Trustee’s fees, in an amount not to exceed $600 or one half of one per cent of the entire unpaid principal sum secured, whichever is greater. Upon reinstatement, this Deed of Trust and the obligation secured hereby shall remain in full force and effect as if no acceleration had occurred. 20. Assignment of Property Income. As additional security, Trustor hereby gives Beneficiary the right, power and authority, during the continuance of this Trust, to collect the Property Income, reserving to Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such Property Income as it becomes due and payable. Upon any such default, Beneficiary may at any time, without notice, either in person, by agent or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby Maricopa County Human Services Department Page 60 Section V Attachments secured, enter upon and take possession of the Property Income; in its own name sue for or otherwise collect such Property Income, including amounts past due and unpaid; and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of the Property Income, the collection of such Property Income and the application thereof, shall not cure or waive any default or notice of Trustee’s Sale hereunder or invalidate any act done pursuant to such notice. 21. Acts of Trustee Affecting Subject Real Property. At any time, without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the Obligation Secured for endorsement, Trustee may, without liability, release and reconvey all or any part of the Subject Real Property, consent to the making and recording, or either, of any map or plat of all or any part of the Subject Real Property; join in granting any easement thereon; join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance or charge hereof. Any such action by Trustee may be taken without affecting the personal liability of any person for payment of the indebtedness secured hereby, without affecting the security hereof for the full amount secured hereby on all property remaining subject hereto, and without the necessity that any sum representing the value or any portion thereof of the property affected by Trustee’s action be credited on the indebtedness. 22. Satisfaction of the Obligation. Upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and the Obligation Secured to Trustee for cancellation, and upon payment of Trustee’s fees, Trustee shall release and reconvey, without covenant or warranty, express or implied, the Subject Real Property held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as “the person or persons legally entitled thereto.” 23. Notices. Copies of all notices and communications concerning this Deed of Trust shall be mailed to the Parties at the addresses specified in this Deed of Trust. Any change of address shall be communicated to the other Parties in writing. Any documents which may adversely affect the rights of any party to this Deed of Trust shall be dispatched by Certified Mail, Return Receipt Requested. 24. Headings. The marginal or topical headings of the provisions herein are for convenience only and do not define, limit or construe the contents of these provisions. 25. Interpretation. In this Deed of Trust, whenever the context so requires, masculine gender includes the feminine and neuter, and the singular includes the plural and vice versa. 26. Applicable Law. This Deed of Trust shall be subject to and governed by the laws of the State of Arizona, in particular the provisions of ARS Title 33, Chapter 6.1, regardless of the fact that one or more Parties now is or may become a resident of a different state. 27. Waiver. Any waiver by any party of a breach of any provision of this Deed of Trust shall not operate or be construed as a waiver of any subsequent breach hereof. 28. Succession of Benefits. The provisions of this Deed of Trust shall inure to the benefit of and be binding upon the Parties hereto, their heirs, personal representatives, conservators and permitted assigns. 29. Successor Trustee. Beneficiary may appoint a Successor Trustee in the manner prescribed by law. A Successor Trustee herein shall, without conveyance from the predecessor Trustee, succeed to all the predecessor’s title, estate, rights, powers and duties. Trustee may resign by mailing or delivering notice thereof to Beneficiary and Trustor. Maricopa County Human Services Department Page 61 Section V Attachments 30. Entire Agreement. The terms of this Deed of Trust constitute the entire agreement among the Parties and the Parties represent that there are no collateral or side agreements not otherwise provided for within the terms of this Deed of Trust. 31. Time of Essence. Time is of the essence in this Deed of Trust and every term, condition, covenant and provision hereof. 32. Modification. No modification of this Deed of Trust shall be binding unless evidenced by an agreement in writing and signed by all Parties. 33. Partial Invalidity. If any provision of this Deed of Trust is held to be invalid or unenforceable all the remaining provisions shall nevertheless continue in full force and effect. TRUSTOR/OWNER: ____________________________ Trustor/Owner Signature _____________________________ Trustor/Owner Signature STATE OF ARIZONA ) ) ss. County of Maricopa ) The foregoing instrument was acknowledged before me this _____ day of , 20___, by . (Name and Title) Notary Public BENEFICIARY: By:_____________________________________ Title:__________ STATE OF ARIZONA County of Maricopa The foregoing instrument was acknowledged before me this _____ day of , 20___, by . (Name and Title) Notary Public Do not destroy this Deed of Trust or the note that it secures. Both must be delivered to the Trustee for cancellation before release and conveyance will be made. Maricopa County Human Services Department Page 62 Section V Attachments RIDER #1 TO DEED OF TRUST PROMISSORY NOTE Maricopa County, Arizona ______________ For value received, __________________________ promises to pay to ______________________ the sum of _________________ payable in accordance with the terms of the LOAN AGREEMENT, attached hereto and incorporated herein. The loan shall bear interest in accordance with the terms of the LOAN AGREEMENT. No payments are required other than to pay such sum in full without penalty whenever the OWNER(S) wishes or if the OWNER(S) ceases to develop the property within twelve (12) months of the purchase agreement. The loan is forgiven when the OWNER conveys the property to an income qualified beneficiary. Principal and interest shall be payable in lawful money of the United States of America. The prevailing party in a suit on this note shall recover, as part of the judgment, reasonable attorney’s fees that may be fixed by the judge of the court. This note is secured by a deed of trust upon real property. _____________________________ Trustor/Owner Signature _____________________________ Trustor/Owner Signature STATE OF ARIZONA ) ) ss COUNTY OF MARICOPA ) Before me, this ______ day of _______________________, 20____, the undersigned Notary Public, ____________________________________, personally appeared before me, avowing to be the OWNER(S) and executed the foregoing instrument for the purposes therein contained by signing his/her/their names hereto. _____________________________ Notary Public My Commission Expires: __________________________ Maricopa County Human Services Department Page 63