Funding Agreement

City of Glendale — Regular Meeting (2022-12-13)

Extracted text (via ocr_local) 43382 characters

FUNDING AGREEMENT
with
ARIZONA DEPARTMENT OF HOUSING

Table of Contents

SECTION 1, FUNDS PROVIDED 2
SECTION 2. OTHER FUNDS. 3
SECTION 3. ACCEPTANCE OF FUNDS 3
SECTION 4. DURATION 3
SECTION 5. INCORPORATION OF TERMS FOR COMPLIANCE WITH PROGRAM

REQUIREMENTS AND APPLICABLE STATE AND FEDERAL LAW 3
SECTION 6. SCOPE OF WORK 5
SECTION 7. REPORTS 6
SECTION 8. SCHEDULE OF COMPLETION 7
SECTION 9. BUDGET 9
SECTION 10. AMENDMENTS AND MODIFICATIONS 10
SECTION 11. ENVIRONMENTAL REVIEW CONDITIONS 10
SECTION 12. APPLICATION AND OTHER PRE-AWARD COSTS iW
SECTION 13. COMPENSATION AND METHOD OF PAYMENT un
SECTION 14. FUNDS RECOUPED BY RECIPIENT, INTEREST AND PROGRAM INCOME .,......sssse0012

SECTION 15. DE-OBLIGATION, RECAPTURE AND REPAYMENT OF FUNDS...

SECTION 16. REVERSION OF ASSETS 15
SECTION 17. DEPARTMENT OF HOUSING RESPONSIBILITIES 15
SECTION 18. SUBCONTRACTING 16
SECTION 19. FAILURE TO MAKE PROGRESS 16
SECTION 20. TERMINATION FOR CAUSE 17
SECTION 21. TERMINATION FOR CONVENIENCE 17
SECTION 22. ENFORCEMENT 17
SECTION 23. CANCELLATION 18
SECTION 24. RECORDS RETENTION 18

SECTION 25. NO OBLIGATION OF STATE GENERAL APPROPRIATIONS FUNDS

SECTION 26. AVAILABILITY OF FUNDS 19

SECTION 27. APPLICABLE LAW AND ARBITRATION 19

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FUNDING AGREEMENT
with
ARIZONA DEPARTMENT OF HOUSING

Table of Contents

SECTION 28. INDEMNIFICATION 19
SECTION 29. FEDERAL GOVERNMENT LIABILITY 20
SECTION 30. AUDIT. 20
SECTION 31. AUDIT EXCEPTIONS 20
SECTION 32. UNALLOWABLE USE OF FUNDS 20
SECTION 33. INTEREST OF MEMBERS OF DEPARTMENT OF HOUSING AND OTHERS .....cssssssss 20
SECTION 34. ACCESS TO RECORDS, PARTICIPANTS AND STAFF 21
SECTION 35, IDENTIFICATION OF DOCUMENTS 21
SECTION 36. COPYRIGHT 2
SECTION 37. RIGHTS IN DATA 21
SECTION 38. FUNDING CONDITIONS 21
SECTION 39. NON-DISCRIMINATION 2
SECTION 40, THIRD PARTY ANTITRUST VIOLATIONS 22
SECTION 41. COMPLIANCE REQUIREMENTS FOR A.R.S. § 41-4401—IMMIGRATION LAWS AND

E-VERIFY REQUIREMENT 22
SECTION 42, INSURANCE 23
SECTION 43. PRIVACY CONSIDERATIONS 25
SECTION 44, NOTICES 25
SECTION 45. REGISTRATION WITH SOCIAL SERVE 26
SECTION 46, ADOH SIGNAGE 26
SECTION 47. PHOTOGRAPHS 26
SECTION 48. STATE OF ARIZONA 26
SECTION 49. A.R.S. § 35-393.01, 27
SECTION 50. A.R.S. § 1-501 RELATING TO FEDERAL PROGRAMS 27

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FUNDING AGREEMENT
with
ARIZONA DEPARTMENT OF HOUSING

Table of Contents

ATTACHMENTS

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Scope of Work

Performance Report/Schedule of Completion

Budget

Request for Payment Form

Special Conditions of the Agreement

Certification and Other Requirements Relating to Title I or Title II Assistance
Authorizing Resolution(s)

Additional Provisions of the 2013 HOME Final Rule (Effective August 23, 2013)

Funding Agreement with
State of Arizona, Department of Housing

AGREEMENT NO. 116-23
TERMINATION DATE June 30, 2023

FUNDING AGREEMENT
BETWEEN THE ARIZONA DEPARTMENT OF HOUSING
AND
CITY OF GLENDALE
FOR
HOMELESS SERVICE GRANT PILOT PROGRAM

This Funding Agreement is made by and between:

The Arizona Department of Housing (“ADOH”), located at, 1110 West Washington Street,
Suite 280, Phoenix, Arizona 85007, acting pursuant to A.R.S. § 41-3953 and (please select
applicable funding source):

Oo OOO

Title I of the Housing and Community Development Act of 1974, as amended
(Community Development Block Grant) (“CDBG”).

Title II of the National Affordable Housing Act of 1990, as amended (HOME
Investments Partnerships Program) (“HOME”).

A.RS. § 41-3955 (State Housing Trust Fund) (“HTF”).
A.RS. § 41-3957 (State Housing Program Fund) (“HPF”).

The AIDS Housing Opportunity Act of 1992, as amended, 42 U.S.C. Section 12902
(Housing Opportunities for Persons with HIV/AIDS) (“HOPWA”).

Title IV Part 578 of the McKinney-Vento Homeless Assistance Act of 1987, as
amended, 42 USC. 11301 et seq. and the Continuum of Care Program regulations as
amended by the Homeless Emergency Assistance and Rapid Transition to Housing
(HEARTH) Act of 2009 (Continuum of Care) (“COC”).

Title I of the Housing and Economic Recovery Act of 2008, Section 1338 (Public Law
110-289). (National Housing Trust Fund) (“NHTF”).

Part A of the Energy and Conservation in Existing Buildings Act of 1976, as amended
and 42 U.S.C. Section 6861 (Department of Energy Weatherization Assistance Program
for Low Income Persons) (“DOE WAP”).

Low Income Energy Assistance Act of 1981, as amended, 42 U.S.C. Section 8621-8630,
(Low Income Home Energy Assistance Program) (“LIHEAP WAP”).

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Funding Agreement with
State of Arizona, Department of Housing

L] — Southwest Gas Corporation, Weatherization Assistance Program (“SWG WAP”).

Xx] | Homeless Service Grant Pilot Program (HSG).
and

CITY OF GLENDALE
(Entity)
An Arizona City (“Recipient”) DUNS #07-752-3579, located at

5850 W. Glendale Ave., Suite B63

Street

Glendale, Arizona 85301
City State Zip
In consideration of the mutual representations and obligations hereunder,
ADOH and Recipient agree as follows:

Section 1. FUNDS PROVIDED

ADOH agrees to provide $195,453.00 in the following type of funds to Recipient in
accordance with this Agreement. ADOH is entitled to change the funding sources as
described in this section, in its sole discretion, so long as the total amount of funds to be
disbursed is not affected thereby.

[] CDBG, CEDA # 14.228
Federal Fiscal Year
$e

[-] HOME, CFDA # 14.239
Federal Fiscal Year
$e

xX] 4HsG

State Fiscal Year 2023
$195,453.00

[] HIF

State Fiscal Year
$__

[] HPF

State Fiscal Year
$

[] HOPWA, CEDA # 14.241
Federal Fiscal Year

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Funding Agreement with
State of Arizona, Department of Housing

$___

[] COC, CEDA # 14.267
Federal Fiscal Year

$___

[| NBTF, CFDA # 14.275
Federal Fiscal Year

[_] DOE WAP, CEDA # 81.042
Federal Fiscal Year
$_

LC] LIHEAP WAP, CFDA # 93.568
Federal Fiscal Year
$_

[] SWG WAP
State Fiscal Year

S$
Section 2, OTHER FUNDS

If applicable, Recipient agrees to secure funding other than that listed in Section 1 for
the completion of this Agreement as indicated in the Budget attached hereto as Attachment
C. ADOH reserves the right to rescind some or all of the funding committed through this
Agreement if other funding sources become unavailable.

Section 3, ACCEPTANCE OF FUNDS

Recipient hereby accepts the award of funds under the terms of this Agreement and
agrees to execute and return this Agreement to ADOH within thirty (30) days of receipt unless
Recipient receives a written waiver of this requirement by ADOH.

Section 4. DURATION

This Agreement shall be effective beginning on the date of execution by ADOH and
shall remain in effect until JUNE 30, 2023 unless sooner terminated, extended or otherwise
amended in accordance with the terms of this Agreement.

Section 5. INCORPORATION OF TERMS FOR COMPLIANCE WITH PROGRAM
REQUIREMENTS AND APPLICABLE STATE AND FEDERAL LAW

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Funding Agreement with
State of Arizona, Department of Housing

Recipient shall carry out each activity in compliance with all applicable State and

Federal laws, Federal regulations and other requirements including, but not limited to, the
provisions indicated as marked below and hereby incorporated into this Agreement, as if
fully set forth herein. Also incorporated into this Agreement as applicable, are the terms of
any resolution authorizing Recipient's application for funds, which is attached hereto as
Attachment G, Authorizing Resolution(s) and any Special Conditions of the Agreement
attached hereto as Attachment E.

Oo OF OO OU

CDBG funds require adherence to the following provisions as revised: (1) 24 CFR Part
570; (2) Certification and Other Requirements Relating to Title I Assistance attached hereto
as Attachment F; (3) the provisions contained in the State of Arizona Consolidated Plan;
(4) ADOH ERR Handbook; (5) ADOH Labor Standards Handbook; (6) CDBG Application
Handbook; (7) CDBG Grant Administration Handbook; and (8) CDBG Procurement,
Contracts and Acquisition Handbook (collectively “the Incorporated Documents”) as
each may be amended from time to time. In the event of a conflict between the terms
of this Agreement and the terms of the Incorporated Documents, the terms of this
Agreement shall govern.

HOME funds require adherence to the following provisions as revised: (1) 24 CFR Part
92; (2) Certification and Other Requirements Relating to Title II Assistance attached hereto
as Attachment F; (3) the provisions contained in the State of Arizona Consolidated Plan;
(4) ADOH ERR Handbook; (5) ADOH Labor Standards Handbook; and (6) the State
Housing Fund Program Summary and Application Guide.

HSG Program funds must adhere to the terms of this Agreement, the Scope of Work
(Attachment A), Performance Report (Attachment B) and any special conditions
indicated on Attachment E if applicable.

HTF funds require adherence to the State Housing Fund Program Summary and
Application Guide as revised.

HPF funds require adherence to the Special Needs Housing Manual as revised.

COC funds require adherence to the following provisions as revised: (1) 24 CFR Part
578; and (2) the Special Needs Housing Manual.

HOPWA funds require adherence to the following provisions as revised: (1) 24 CFR
Part 574; and (2) the Special Needs Housing Manual.

NHTF requires adherence to the following provisions as revised: (1) 24 CFR Parts 91
and 93, Housing Trust Fund Interim Rule; (2) the provisions contained in the State of
Arizona Consolidated Plan; (3) State Housing Fund Program Summary and Application
Guide; (4) State of Arizona Qualified Allocation Plan; and (5) National Housing Trust
Fund Allocation Plan.

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Funding Agreement with
State of Arizona, Department of Housing

[-] DOE WAP funds require adherence to the following provisions as revised: (1) 10 CFR
Part 440 as revised; (2) the Arizona Weatherization Assistance Program State Plan (State
Plan); (3) Health and Safety Plan (HSD Plan), (4) the Arizona Weatherization Policies and
Procedures Handbook; (5) Arizona Weatherization Assistance Program Field Guide; (6)
Standard Work Specifications; and (7) DOE WPN 22-4 Quality Work Plan.

[| LIHEAP WAP funds require adherence to the following provisions: (1) 45 CFR Part
96 as revised; (2) the Arizona Weatherization Assistance Program State Plan (State Plan);
(3) Health and Safety Plan (HSD Plan); (4) the Arizona Weatherization Policies and
Procedures Handbook; (5) Arizona Weatherization Assistance Program Field Guide; (6)
Standard Work Specifications; and (7) WAP Memorandum 15-10 Quality Management Plan.

[] SWG wWaP funds require adherence to the following provisions: (1) the Arizona
Weatherization Assistance Program State Plan (State Plan); (2) Health and Safety Plan (HSD
Plan); (3) the Arizona Weatherization Policies and Procedures Handbook; (4) Arizona
Weatherization Assistance Program Field Guide; (5) Standard Work Specifications; and (6)
WAP Memorandum 15-10 Quality Management Plan.

Section 6. SCOPE OF WORK

Recipient agrees to utilize all funds made available under this Agreement only for the
purpose of implementing the Scope of Work hereby incorporated into this Agreement and
described in Attachment A.

Revisions to Scope of Work. Recipient agrees to follow the procedures indicated as
marked below regarding changes to the Scope of Work.

Revisions to the Scope of Work that change the manner in which an activity is to be
executed or that change final outcome such as number of units, feet of utility line, number of
households served, square footage of building, etc. require written approval from ADOH.
The following substantial revisions to the Scope of Work require written amendment to this
Agreement:

(a) The purpose of the project changes;

(b) The location of the project changes;

(d) ‘The beneficiary of any activity changes;

(e) Recipient is requesting a change to the loan or grant terms. Recipient must
submit a written request for an Agreement amendment to ADOH, with a
revised Scope of Work attached;

(f) The ownership entity changes; and

(g) Any other changes that involve program requirements.

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Funding Agreement with
State of Arizona, Department of Housing

ADOH will respond to the written request within fourteen (14) business days.

Amendments may not be implemented until ADOH consents in writing and an amendment
to the Agreement has been executed.

Section 7. REPORTS

Recipient shall be responsible for providing various reports of all activities related to

this Agreement as identified below and as requested by ADOH or HUD. Recipient shall also
provide to ADOH any additional written information requested by ADOH in a timely
manner and within reasonable deadlines as shall be set by ADOH.

7.1 Performance Report. Recipient agrees to submit the ADOH Performance Report

respective of the types of projects indicated below and attached as Attachment B.

HOME, NHTF, HTF funded rental development projects (“Rental Projects”) or HPF
funded rapid rehousing projects: Recipient must submit a Bimonthly Performance
Report attached hereto as Attachment B. The Bimonthly Progress Report must be
submitted to ADOH on the 20 of January, March, May, July, September and
November and address activities of the preceding two (2) months (ie. the January
report covers the months of November and December).

HOME, HTF and CDBG non-renial projects (HOME, HTF and CDBG Non-Rental
Projects”). Recipient must submit a Monthly Progress Report attached hereto as
Attachment B. The Monthly Progress Report must be submitted to ADOH on the 15%
of each month and address activities of the preceding one (1) month (i.e. the July report
covers the month of June). Failure to submit timely Monthly Progress Reports will
result in suspension of payment reimbursement requests until such reports are
brought current.

COC funded assistance for persons who are homeless (“Homeless Projects”). ADOH
is required to administer the program during the contract term, which is synonymous
with the HUD grant term and as set forth in Section 4. Recipient must submit a
Bimonthly Performance Report attached hereto as Attachment B, The Bimonthly
Progress Report must be submitted to ADOH on the 20% of January, March, May, July,
September and November and address activities of the preceding two (2) months (ie.
the January report covers the months of November and December). Recipient shall
submit Annual Progress Report (APR) data from HMIS to ADOH, no later than thirty
(30) days following the contract termination date listed on Page 1 of the Agreement.

HOPWA funded rental assistance and services (“HOPWA Projects”). A Recipient of
HOPWA awarded funding shall administer said program in the contract term as set
forth in Section 4 and submit one (1) HUD Consolidated Annual Performance Evaluation
Report (CAPER) in accordance with the schedule set forth in Attachment B no later
than sixty (60) days following the end of Fiscal Year date which is June 30" annually.

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Funding Agreement with
State of Arizona, Department of Housing

[-] DOE WAP, LIHEAP WAP and SWG WAP funded projects (“Weatherization
Projects”). Recipient must submit a Monthly Performance Report attached hereto as
Attachment B. The Monthly Performance Report must be submitted to ADOH on the
30% (for the month of February, the last calendar day of the month) of each month and
address activities of the preceding month (i.e. the January 30" report covers the month
of December).

x HSG projects (“HSG Projects”). Recipient must submit a Monthly Progress Report
including data regarding the number of participants in the work program and the
number of daily hours worked by participants; amounts earned by participants; ,
outreach; and other services provided (i.e. meals, showers, laundry, etc.) per the
Recipients project proposal and Scope of Work Attachment A. The Monthly Progress
Report must be submitted to ADOH on the 30" of each month and address activities
of the preceding one (1) month (i.e. the July report covers the month of June). Failure
to submit timely Monthly Progress Reports will result in suspension of payment
reimbursement requests until such reports are brought current.

7.2 Contract Closeout—Completion Reports and Post-Funding Audits.
Recipient's obligation to ADOH under this Agreement shall not end until all closeout
requirements described in this paragraph are completed. ADOH will notify Recipient in
writing that a Completion Report is due to ADOH within sixty (60) days of one (1) of the
following occurrences:

(a) The funds have been expended;

(b) The Scope of Work has been completed;

The Completion Report shall contain the information identified in the notice.

Following the receipt and approval of the Completion Report, ADOH will notify
Recipient in writing that the Agreement is administratively closed.

After the project is administratively closed, Recipient must submit all required audits
to ADOH. All audits for fiscal years in which Recipient received funds from ADOH must be
received, reviewed and found to be satisfactory by ADOH. In the event that ADOH
determines that any project costs described in a post-funding audit are unjustified or describe
ineligible activities, Recipient will be required to refund such monies back to ADOH.

Section 8. SCHEDULE OF COMPLETION
Recipient agrees to make progress with the Scope of Work in accordance with the

Schedule of Completion hereby incorporated into this Agreement and described in Attachment
B.

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Funding Agreement with
State of Arizona, Department of Housing

Revisions to the Schedule of Completion. Recipient agrees to follow the procedures

indicated as marked below regarding changes to the Schedule of Completion.

Rental Projects funded with HOME or HTF. Recipient must notify ADOH of
revisions to the Schedule of Completion using the Bimonthly Performance Report, attached
hereto as Attachment B. To the extent that the changes cause the schedule timeline to
be extended, Recipient must submit a written request for a contract amendment to
ADOH with a revised Schedule of Completion attached. Contract amendment requests
must be received by ADOH a minimum of thirty (30) days prior to the contract
expiration date. ADOH will respond to the written request within fourteen (14)
business days. Amendments may not be implemented until ADOH consents in
writing and an amendment to the Agreement has been executed.

Non-Rental Projects funded with HOME, HSG, HTF and CDBG. Recipient must
notify ADOH of revisions to the Schedule of Completion using the Monthly Performance
Report, attached hereto as Attachment B. To the extent that the changes cause the
schedule timeline to be extended, Recipient must submit a written request for a
contract amendment to ADOH with a revised Schedule of Completion attached.
Contract amendment requests must be received by ADOH a minimum of thirty (30)
days prior to the contract expiration date. ADOH will respond to the written request
within fourteen (14) business days. Amendments may not be implemented until
ADOH consents in writing and an amendment to the Agreement has been executed.

Homeless Projects funded with HTF, HPF or COC. To the extent that the changes
cause the schedule timeline to be extended, Recipient must submit a written request
for a contract amendment to ADOH with a revised Schedule of Completion and
Performance Report attached. Contract amendment requests must be received by
ADOH a minimum of thirty (30) days prior to the contract expiration date. ADOH
will respond to the written request within fourteen (14) business days. Amendments
may not be implemented until ADOH consents in writing and an amendment to the
Agreement has been executed.

Weatherization. Projects funded with DOE WAP, LIHEAP and/or SWG WAP.
Recipients will have twelve (12) months to complete the Scope of Work with no
extensions. ADOH may, based on a review of the progress of Recipient completed
units and expenditures, move funds from a non or under-performing Recipient to a
Recipient meeting or exceeding their performance goals. ADOH will review the
performance of the Recipient on a monthly basis. The first re-allocation of funds if
applicable would occur at six (6) months with additional re-allocations, if needed, at
the eight (8) month and ten (10) month time periods.

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Funding Agreement with
State of Arizona, Department of Housing

Section 9. BUDGET

Recipient agrees to use the funds provided pursuant to this Agreement in accordance
with the Budget that is attached as Attachment C. Recipient further agrees that any project
costs, unless otherwise specified, exceeding the Budget shall be the sole responsibility of
Recipient.

Availability of funding under this Agreement is contingent on final review and
approval of the Budget. Budgetary considerations for specific programs are described below:

[| CDBG Revisions to the Budget. Recipient must obtain written approval from ADOH.
to move funds from one Budget Activity Line Item to another. The following
substantial revisions to the Budget require a contract amendment:

(a) Funds are moved from one Budget Activity Line Item to another and the change
in the Budget Activity Line from which it is moved or to which it is being moved
exceeds fifty percent (50%), unless the move is from administration to a non-
administration activity, in which case only written notice without a contract
amendment is required;

(b) Additional funding sources are added to the Project;

CI HOME, HOPWA, HPF, NHTF and HTF Revisions to the Budget. Recipient must
obtain prior written approval from ADOH to move funds from one Budget Activity
Line Item to another. ADOH will only approve changes to the Budget for eligible
costs as outlined in the State Housing Fund program. The following substantial
revisions to the Budget require a contract amendment:

(a) Additional funding sources are added to the project which require a project to
be re-underwritten to determine gap;
(b) Recipient is requesting a change to the loan terms.

[_] WEATHERIZATION Revisions to the Budget. Recipient must obtain written
approval from ADOH to move funds from one Budget Activity Line Item toanother.

See Section 10 for changes that affect the Budget.

DX] SG Revisions to the Budget. Revisions to Homeless Service Grants do not apply as
budgets are not delineated for specific line item services.

Recipient shall not retain any funds that are drawn down in excess of immediate cash

needs (to be utilized within fifteen (15) days of draw down) to cover subsequent requests for
reimbursement and must return them to ADOH within thirty (30) days of receipt. Recipient

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Funding Agreement with
State of Arizona, Department of Housing

must also return to ADOH any interest that is earned on these funds that are drawn down
and not expended for eligible costs within fifteen (15) days of draw down.

Section 10, AMENDMENTS AND MODIFICATIONS
ADOH may consent to amendment or modification of this Agreement upon written
request of Recipient. All amendments or modifications to this Agreement shall be by mutual

consent of the parties in writing.

Requests for amendments or modifications that result in changes to the Budget must
be supported by a revised Budget that is otherwise consistent with Section 9.

ADOH will respond to the request for amendment or modification to this Agreement
within fourteen (14) business days.

Section HL, ENVIRONMENTAL REVIEW CONDITIONS | Does not apply to HSG Grants

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Funding Agreement with
State of Arizona, Department of Housing

CL] WEATHERIZATION (DOE WAP, LIHEAP WAP). DOE has made a final NEPA
determination for all activities under this Funding Agreement that are listed in the
State Plan formally approved by DOE and incorporated into this Funding Agreement.
Recipients are responsible for compliance with Section 106 pursuant to 36 CFR Part
800.2 (c)(4).

Section 12. APPLICATION AND OTHER PRE-AWARD COSTS

Recipient may use a portion of the funds provided hereunder to reimburse itself for
exempt activities pursuant to 24 CFR 58.34(a)(1)-(11) such as architecture, engineering, testing
and sampling of asbestos and capital needs assessments and environmental reviews.

[| CDBG. If Recipient is receiving funding under this Agreement from the CDBG
program, in accordance with federal procedures, Recipient may use funds provided
hereunder to reimburse it or to pay for costs incurred in preparing the application. In
no event shall such compensation exceed eighteen percent (18%) of the total funding
provided to Recipient by ADOH.

Section 13. COMPENSATION AND METHOD OF PAYMENT

Subject to availability of and receipt of funds from the State’s Unclaimed Property
Fund (for state HTF funds), Arizona 2022 JLBC budget and/or the United States Treasury (for
HOME, CDBG, COC, NHTF HOPWA, DOE WAP and LIHEAP WAP funds) and the
commitment of other required funding as indicated in Recipient's application, ADOH agrees
to reimburse or advance Recipient for authorized expenditures according to the Budget in
Attachment C. Recipient must maintain invoices and other similar documentation to support
payment expenses under those generally accepted accounting principles and procedures
approved by ADOH and outlined in 2 CFR 200 as applicable; 24 CFR Parts 44, 92 and 570 as
applicable; and 10 CFR 440 and 600 as applicable.

Recipient may request funds only after the date of the executed Agreement and other
legal documents as applicable, provided Recipient has satisfied ADOH funding contingencies

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Funding Agreement with
State of Arizona, Department of Housing

and federal Environmental Review conditions. Requests for reimbursement must be made
using the ADOH Request for Payment form hereby incorporated into this Agreement and
attached as Attachment D. For construction projects, Release of Lien documents must be
attached to the Request for Payment in amounts proportionate to contractor reimbursement
requests.

Recipient 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 be otherwise reasonably required to permit ADOH to
determine or confirm that any such expenditures are prudent and within the Scope of Work.

Recipient's right to incur expenses under this Agreement shall cease upon expiration
of this Agreement. All requests for reimbursement on expenditures made prior to expiration
of this Agreement must be requested within sixty (60) days after expiration. Unless expressly
authorized by ADOH in writing, expenditures not requested within the sixty (60) day period
after expiration of this Agreement shall be disallowed and all funds shall be reclaimed by
ADOH.

Section 14, FUNDS RECOUPED BY RECIPIENT, INTEREST AND PROGRAM
INCOME

14.1 Definitions. For purposes of this section, the following definitions shall apply:

“Funds Recouped by Recipient” means funds initially provided by ADOH to
Recipient under this Agreement and any matching contributions that are recouped by
Recipient when: (1) the funds provided by ADOH under this Agreement or matching
contributions or the proceeds of funds provided by ADOH (including, but not limited to,
equipment or housing) do not continue to be used for an approved purpose or eligible
activity, as described in applicable law or regulations, for the full period of affordability
required by this Agreement; or (2) when a State-assisted homeownership housing does not
continue to be the principal residence of the assisted homebuyer for the full affordability
period required by this Agreement. Funds Recouped by Recipient are subject to all the
requirements of Program Income described below with the exception that Recipient shall not
use Funds Recouped by Recipient for administrative purposes. For this reason, Recipient
must separately account for all Funds Recouped by Recipient.

“Interest” means any compensation paid or to be paid for the use or deposit of the
funds provided by ADOH to Recipient under this Agreement.

“Program Income” means gross income received by Recipient directly generated from

the use of funds provided by ADOH under this Agreement. When Program Income is
generated by housing that is only partially assisted with funds provided by ADOH under this

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Funding Agreement with
State of Arizona, Department of Housing

Agreement or matching contributions, the income shall be prorated to reflect the percentage
of funds provided by ADOH under this Agreement. Program Income includes, but is not
limited to, the following: (1) proceeds from the disposition by sale or long-term lease of real
property purchased or improved with funds provided by ADOH under this Agreement; (2)
gross income from the use or rental of real or personal property acquired by Recipient with
funds provided by ADOH under this Agreement, less costs incidental to generation of the
income; (3) payments of principal and interest on loans made using funds provided by ADOH
under this Agreement or matching contributions; (4) proceeds from the sale of loans made
with funds provided by ADOH under this Agreement or matching contributions; (5) proceeds
from sale of obligations secured by loans made with funds provided by ADOH under this
Agreement or matching contributions; (6) Interest earned on Program Income pending its
disposition; (7) proceeds from the disposition of equipment purchased with CDBG funds; (8)
gross income from the use or rental of real property, owned by Recipient, that was constructed
or improved with funds provided by ADOH under this Agreement, less costs incidental to
generation of the income; (9) if the funds provided by ADOH under this Agreement are from
the CDBG Program, funds collected through special assessments made against properties
owned and occupied by households not of low and moderate income, where the assessments
are used to recover all or part of the CDBG portion of a public improvement; and (10) if the
funds provided by ADOH under this Agreement are from the HOME Program, any other
interest or return on the investment permitted under 24 C.F.R. Part 92.205(b) of HOME funds
or matching contributions.

14.2 Use of Program Income and Funds Recouped by Recipient.

Recipient is not authorized by ADOH to retain and reuse Program Income, Funds
Recouped by Recipient or accrued Interest as described in the following paragraph(s) except
as authorized by ADOH through a written agreement.

Recipient must return all Program Income, Funds Recouped by Recipient and Interest
to ADOH within thirty (30) days of receipt.

Recipient must remit to ADOH any Program Income, Funds Recouped by Recipient
or Interest on hand at the time of expiration, cancellation, or termination of this Agreement
or subsequently received by Recipient within thirty (30) days of receipt by Recipient.

Section 15. DE-OBLIGATION, RECAPTURE AND REPAYMENT OF FUNDS

15.1 De-obligation. ADOH may reduce funds from the funding award evidenced
by this Agreement without regard to the source of funding, under the following
circumstances: (1) Recipient has completed performance under the Scope of Work (Attachment
A) without using all of the funds provided by ADOH under this Agreement; (2) this
Agreement expires and not all funds have been expended; (3) ADOH’s original allocation was
a loan and Recipient or Sub-recipient paid the loan; (4) Recipient, with the consent of ADOH,
cancelled or changed an activity required under the Scope of Work for reasons other than non-

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Funding Agreement with
State of Arizona, Department of Housing

performance; or (5) Recipient receives Program Income that has not been included in the
budget or set forth in the Scope of Work; and (6) this Agreement has otherwise been terminated.
ADOH may de-obligate funds under this Agreement under the foregoing circumstances upon
written notice to Recipient.

15.2 Reallocation of De-obligated HOME or State HTF Funds. If the funds
provided by ADOH under this Agreement are from the State HTF or the HOME Program,
ADOH may reallocate funds that it has de-obligated under this Agreement as it determines
in its sole discretion.

15.3 Reallocation of De-obligated CDBG Funds. If the funds provided by ADOH
under this Agreement are from the CDBG Program, ADOH may reallocate funds that it has
de-obligated under this Agreement to Recipient from which the funds were de-obligated for
use under an existing or new funding contract of the same funding year if Recipient can
immediately commit the reallocated funds to a project and execute a new or amended funding
contract within sixty (60) calendar days of the reallocation. If ADOH is not able to reallocate
funds that it has de-obligated under this Agreement in accordance with the foregoing
sentence of this subsection, ADOH may reallocate those funds as it determines in its sole
discretion.

15.4 Recapture. ADOH may reduce funds from the amount of the funding award
evidenced by this Agreement, without regard to the source of funding, under the following
circumstances: (1) ADOH determines that Recipient has failed to use the funds provided by
ADOH under this Agreement in compliance with the terms of this Agreement or the
requirements of applicable laws and regulations (non-compliance); or (2) Recipient fails to
perform in accordance with the performance obligations set forth in the Scope of Work
(Attachment A ) and the Schedule of Completion (Attachment B) or the terms of this Agreement.
ADOH may recapture funds under this Agreement under the foregoing circumstances upon
written notice to Recipient.

15.5 Reallocation of Recaptured Funds. ADOH may reallocate funds that it has
recaptured under this Agreement, without regard to the source of funding, as it determines
in its sole discretion.

15.6 Repayment of Funds. Recipient agrees to repay funds provided under this
contract if ADOH determines that Recipient has failed to use the funds provided by ADOH
under this Agreement in compliance with the terms of this Agreement or the requirements of
applicable laws and regulations. ADOH 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 180 days following the written determination of non-
compliance by ADOH.

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Funding Agreement with
State of Arizona, Department of Housing

Section 16. REVERSION OF ASSETS

16.1 Funds Remaining at Expiration. Upon expiration of this Agreement,
Recipient shall transfer to ADOH any unexpended funds advanced to Recipient by ADOH
under this Agreement.

16.2 Real Property Acquired or Improved with CDBG Funds, Upon expiration of
this Agreement, any real property under Recipient's control that was acquired or improved
in whole or in part with CDBG funds, for non-owner occupied use, provided to Recipient by
ADOH under this Agreement (including CDBG funds provided to Recipient in the form of a
loan) in excess of $25,000, shall either: (1) be used to meet one of the national objectives in 24
CER Part 570.208 until five (5) years after expiration of this Agreement, or for such longer
period of time as determined to be appropriate by Recipient; or (2) not be used in accordance
with 24 CFR Part 570.503(b)(8)(i), in which event Recipient shall pay to ADOH an amount
equal to the current market value of the property less any portion of the value attributable to
expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. No
payment is required after the period of time specified in 24 CFR Part 570.503 (b)(8)(i).

16.3 Real Property Acquired or Improved with HOME Funds. Upon expiration
of this Agreement, any real property under Recipient's control that was acquired or improved
in whole or in part with HOME funds, for non-owner occupied uses, provided to Recipient
by ADOH under this Agreement (including funds provided to Recipient in the form of a loan),
must be occupied only by households that are eligible as low-income families and must meet
the requirements to qualify as affordable housing and is subject to encumbrances and
obligations described in any applicable Declaration of Conditions, Covenants and Restrictions
(“CC&Rs”) for the period of affordability set forth in 24 CFR Part 92.252.

16.4 Real Property Acquired or Improved with State Housing Trust Funds. Upon
expiration of this Agreement, any real property under Recipient's control that was acquired
or improved in whole or in part with state HTF funds, for non-owner occupied uses, provided
to Recipient by ADOH under this Agreement (including funds provided to Recipient in the
form of a loari), must be occupied only by households that are eligible as low-income families
and must meet the requirements to qualify as affordable housing and is subject to
encumbrances and obligations described in any applicable Declaration of CC&Rs for the
period of affordability set forth in the CC&Rs.

Section 17, DEPARTMENT OF HOUSING RESPONSIBILITIES

ADOH shall monitor and evaluate Recipient to determine compliance with and
performance under this Agreement. A summary of discrepancies noted by ADOH during
monitoring visits will be specified in writing. Appropriate time for correction of discrepancies
will be specified in the written report to Recipient. ADOH shall follow up on discrepancies
to ensure that they have been corrected in a timely manner. The failure of ADOH to require
timely performance of any provision of this Agreement shall in no way affect the right of

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Funding Agreement with
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ADOH thereafter to enforce such provision nor shall the waiver of any succeeding breach of
such provision act as waiver of the provision itself.

ADORH shall provide reasonable technical assistance to assist Recipient to comply with
program requirements for the provision of services under this Agreement. However, this in
no way relieves Recipient of full responsibility for its acts or omissions in the performance of
activities required by this Agreement.

Section 18. SUBCONTRACTING

Recipient shall not disburse any funds received under this Agreement without fully
completed written agreements with subcontractors requiring they follow all provisions of this
Agreement and a completed Environmental Review pursuant to Section 11 of this Agreement.

The use of subcontractors does not relieve Recipient of responsibility for ensuring the
administration of the provided funds in accordance with all applicable program
requirements. Recipient is responsible for determining the adequacy of performance under
subcontractor agreements and procurement contracts and for taking appropriate action when
performance issues arise.

Section 19. FAILURE TO MAKE PROGRESS

Failure of Recipient to make progress according to the Schedule of Completion,
attached hereto as Attachment B may result in contract termination, de-obligation of funds or
recapture of funds. Recipient agrees to meet with ADOH at the site in which the funded
activity is taking place to discuss progress and allow ADOH to provide technical assistance

(a) Recipient fails to begin work on its Environmental Review pursuant to Section
11 within the sixty (60) calendar days from the date ADOH executes this
Agreement;

(b) Recipient fails to expend any funds in performance of and in accordance with
the terms of this Agreement within ninety (90) calendar days from the inception
date of this Agreement.

ADOH will terminate any Agreement and recapture funds from the same Agreement in
which Recipient does not commence any of the activities described in the Scope of Work
(Attachment A) or fails to expend any funds in accordance with the Budget (Attachment C)
within 180 calendar days from the full execution date of this Agreement, ADOH may in its

sole discretion, forgo providing technical assistance and recapture funds as outlined in this
Agreement under Section 15.4 hereof and/or terminate this Agreement for cause pursuant to
Section 20 of this Agreement.

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Funding Agreement with
State of Arizona, Department of Housing

Section 20. TERMINATION FOR CAUSE

ADOH may terminate this Agreement in whole or in part at any time whenever it
determines that Recipient has failed to comply with the conditions hereof including, but not
limited to the Scope of Work set forth in Attachment A, Schedule of Completion set forth in
Attachment B and Budget set forth in Attachment C to this Agreement. If ADOH so
determines, it shall notify Recipient in writing by certified mail, return receipt requested, of
such termination for cause with such notification to include the reason(s) for the termination
and the effective date of termination. If ADOH terminates this Agreement pursuant to this
Section, ADOH shall recapture all funds allocated to Recipient under this Agreement
pursuant to Section 15.4 hereof and obtain repayment of funds expended pursuant to Section
15.6, hereof.

Section 21. TERMINATION FOR CONVENIENCE

ADOH or Recipient may terminate this Agreement in whole or part (one (1) or more
activities) if either party believes that continuation will not produce beneficial results. If
ADOH so determines, it shall notify Recipient in writing by certified mail, return receipt
requested, of such termination for convenience and the effective date of termination. If
Recipient so determines, it shall notify ADOH in writing by certified mail, return receipt
requested, of such termination for convenience and the effective date of termination. If
ADOH terminates this Agreement pursuant to this Section, ADOH shall de-obligate,
recapture or receive repayment, as applicable, all funds allocated to Recipient under this
Agreement pursuant to Section 15 hereof.

Section 22, ENFORCEMENT

22.1 Remedies for Noncompliance. If Recipient materially fails to comply with any
term of this Agreement or applicable law, ADOH may take one or more of the following
actions, as appropriate in the circumstances:

(a) Temporarily withhold cash payments pending correction of the deficiency by
Recipient or more severe enforcement action by the awarding agency;

(b) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;

(d) Withhold further awards to Recipient's project funded by the award evidenced
by this Agreement;

(e) Recapture funds and terminate contract;

(f) | Withhold future ADOH grant awards from all sources; or

(g) Take other remedies that may be legally available.

22.2 Appealable Agency Action. Enforcement action taken under this section is an
appealable agency action pursuant to A.RS., Title 41, Chapter 6, Article 10.

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