Developer Agreement - Substantial Final Form
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WHEN RECORDED, RETURN TO:
City of Glendale
City Clerk
5850 West Glendale Avenue
Glendale, Arizona 85301
DEVELOPER AGREEMENT FOR
MULTI-FAMILY RENTAL DEVELOPMENT
UNDER THE HOME INVESTMENT PARTNERSHIP PROGRAM
FY 2022-23
This Developer Agreement (this “Agreement”) for the multi-family rental development project known as
Glendale Senior Apartments (“Project”) under the Home Investment Partnerships Program (“Agreement”) is
entered into this
day of ______________, 2023 by and between the City of Glendale, an
Arizona municipal corporation (“City”), and Mercy Housing Mountain Plains, a Colorado nonprofit
corporation (“Recipient”).
RECITALS
WHEREAS, the City has applied for and received federal funds pursuant to the HOME Investment
Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42
U.S.C. 12701, et seq. (“HOME Program”) to assist low-income persons and families in obtaining decent and
affordable rental housing opportunities;
WHEREAS, the Maricopa County HOME Consortium administers the HOME Program in Maricopa
County, Arizona;
WHEREAS, the City has received an allocation of $764,833 of FY 2022-23 funds from the Maricopa
County HOME Consortium from a direct entitlement made by the U.S. Department of Housing and Urban
Development (“HUD”);
WHEREAS, Recipient, is a non-profit corporation that has applied for HOME Program funds from the
City to be loaned to Recipient and subsequently loan to and ultimately used by MHMP 19 Glendale Senior
Apartments LLLP, an Arizona limited liability limited partnership (“Developer”) to assist low-income
persons and families in obtaining decent and affordable housing opportunities;
WHEREAS, the City believes that the activities of the Recipient and Developer described in the Project
comply with the requirements of the HOME Program regulations;
WHEREAS, it is necessary that the City and Recipient enter into an Agreement for the implementation of
eligible activities; and
WHEREAS, the City desires to enter into this Agreement and provide Recipient with $500,000 in HOME
Program funds to loan to the Developer to pay for part of the costs of implementing the Project.
The Parties enter into the following agreement:
AGREEMENT
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1
HOME Developer Agreement. Pursuant to 24 CFR § 92.504, the City and Recipient enter into
this HOME Developer Agreement to secure HOME Program funds in the development of the
Project, an affordable multi-family rental development in the City of Glendale.
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Agreement Amount. The City shall provide financial assistance in an amount not to exceed
$500,000.00 subject to the terms of this Agreement and subject to the availability of federal funds.
Providing this Agreement amount constitutes the City's entire participation and obligation in the
performance and completion of all work to be performed under this Agreement.
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Matching Funds. Non-administrative HOME funds require a 25% non-federal match equal to
$125,000.00. The City currently has sufficient matching funds for this, and Developer is not required
to provide matching funds for this project.
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Use of HOME funds. Recipient shall cause Developer, in close coordination with the City, to
perform all professional, technical and construction services necessary to provide new construction
of multi-family rental units as detailed in Exhibit A.
5
Affordability. The Project is subject to ongoing compliance requirements of the HOME Program
for the length of the affordability period identified in 24 C.F.R. § 92.252. The affordability period
begins once the Maricopa County HOME Consortium records the close of the Project in the
Integrated Disbursement Information System (“IDIS”), a nationwide database providing HUD with
current information regarding the HOME Program activities underway across the nation, including
funding data. To document initial and ongoing unit affordability, Recipient shall cause Developer to
create and submit an Affordability Compliance Management Plan to the City for approval thirty days
prior to the initial rent-up of HOME-assisted units. This Plan must provide procedures as to how
Developer will comply with the provisions in this Section 5 of the Agreement.
5.1
Rent limitations. Pursuant to 24 CFR 92.252 (a), initial rents of HOME-assisted units shall
not exceed the HOME High Rents provided by HUD and in effect at the time of initial
occupancy and each year thereafter. The value of these rents accommodates the cost of
utilities. Recipient shall cause Developer to provide the City will a list of utilities provided at
the project site, as well as the provider of those services. The City will determine the Utility
Allowance Schedule prior to initial occupancy, and annually thereafter during the period of
affordability.
5.2
Initial rent schedule and utility allowances. The City will provide Recipient and
Developer with the HOME rent schedule and approved Utility allowance schedule prior to
initial marketing of HOME-assisted units, and annually thereafter during the period of
affordability as revised by HUD.
5.3
Period of Affordability. Recipient agrees that it will cause Developer to ensure HOME-
assisted units remain affordable and subject to the affordability requirements of 24 CFR
92.252 (e) and contained in this Agreement. The City and Recipient agree that the period of
affordability applicable to this project is 20 years from the date the affordability period
begins as established in the first paragraph of this Section 5.
5.4
Subsequent Rents During Period of Affordability. City and Recipient agree that HOME
rents established at the time of initial occupancy represent a floor in the rent that can be
charged during the period of affordability established herein despite adjustments to Fair
Market Rents and median household incomes made by HUD. The City will provide
Recipient and Developer with updated HOME rents within 30 days of their availability and
publication by HUD. Recipient will cause Developer to provide City with documentation of
rents and occupancy on an annual basis in compliance with ongoing affordability
requirements. Recipient agrees that changes in HOME rents will not affect existing leases in
effect at the time of publication of new HOME rents, and will provide tenants written notice
of rent increases no later than 30 days before the expiration of existing leases.
5.5
Adjustment of HOME rent. If, during the period of affordability, Recipient’s analysis of
the project’s financial viability is in jeopardy due to HUD’s changes in Fair Market Rents or
median household income, Recipient will notify the City within 30 days to determine if an
appeal to HUD is justified and necessary. If, in the sole discretion of the City, such an
appeal is justified and necessary, Recipient will, and will cause Developer to cooperate with
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the City to provide all necessary documentation and rationale as the basis of the appeal. The
City will facilitate the appeal process on behalf of Recipient and/or Developer, as applicable.
5.6
Tenant Income. In order for the Project to be eligible for HOME Program assistance,
tenants occupying HOME-assisted units must have a gross annual household income that
does not exceed 60% percent of area median income (“AMI”), adjusted for household size.
Recipient shall cause Developer to verify of household income in accordance with 24 C.F.R.
§ 92.203.
5.7
Over-income Tenants. If, during the annual requalification process stipulated in 24 C.F.R.
§ 92.203 a tenant is determined to be over income, Recipient shall cause Developer to
designate the next available comparable unit as a floating HOME-assisted unit and apply all
HOME regulatory requirements and those of this Agreement to that unit. The parties
acknowledge that the Federal Low-Income Housing Tax Credit ("LIHTC") program and the
HOME program are both providing funding for the construction of the Project. As both
programs have separate guidelines, if the guidelines of the programs conflict, but do not
prevent co-existence of the guidelines on the Project, then the most restrictive guidelines will
control the operation and use of the two (2) HOME-assisted units. Recipient shall cause
Developer to notify the City of any requirements of LIHTC that conflict with the
requirements of this Agreement; the parties agree to take reasonable steps to remedy such
conflicts if possible and necessary.
5.8
Fixed and Floating Units. Recipient and City agree that HOME-assisted units will be
floating. Recipient shall cause Developer to determine and verify income eligibility of
tenants for the HOME-assisted unit, and will constitute two (2) one-bedroom units, and one
(1) two-bedroom unit for a total of three (3) HOME-assisted units. Units must be
comparable in square footage, amenities and number of bedrooms to non-HOME-assisted
units. This comparability of units will apply to all subsequent tenants after initial occupancy
to maintain unit conformity through the period of affordability.
5.9
Tenant Selection. Recipient shall cause Developer to adopt, adhere to and submit to the
City for review and approval written tenant selection policies and procedures that comply
with the requirements of 24 CFR 92.253 (d), including: 1. limitation of tenancy to those
households at or below 60% of area median income, as established and revised annually by
HUD; 2. basis for selection related to the prospective tenant’s reasonable ability to fulfill the
terms of the lease agreement; 3. description of eligibility or preference criteria for certain
population segments (as applicable) that is in full compliance with the non-discrimination
requirements established in 24 CFR 92.350; 4. acceptance of Section 8 or HOME Tenant-
Based Rental Assistance recipients as potential tenants; 5. Provision of a wait-list based on
the chronological order of receipt of applications; and 6. Prompt written notification for
rejection of a tenant’s application and the reason(s) for the rejection.
5.10
Lease Requirements
5.10.1 Recipient shall cause Developer and Tenant to enter into a written lease agreement
of not less than one year unless a shorter period is mutually agreed upon and
specified in the lease.
5.10.2 Recipient shall cause Developer to adhere to the requirement that all lease
agreements shall not contain any of the prohibited terms of 24 CFR 92.253 (b), as
provided in Exhibit E of this Agreement.
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Maximum Per Unit Subsidy. Recipient will, or will cause Developer to ensure that total HOME
funds invested in the project will not exceed the per-unit dollar limitations established under section
221(d) (3) (ii) of the National Housing Act (12 U.S.C. 17151 (d) (3) (ii)).
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Property Standards During Development. Recipient will, or will cause Developer to ensure that
all units constructed will meet the property standards set forth in 24 CFR 92.251 at the time of
project completion and throughout the period of affordability as provided for in Section 5.3
contained herein.
7.1
Recipient covenants that upon completion of construction the Project will comply with all
applicable State and local codes and ordinances.
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7.2
Recipient covenants that upon completion of construction, the Project will comply with
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) as promulgated by 24 CFR 8,
Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) as
promulgated by 28 CFR 35 and 36, and the Fair Housing Act (42 U.S.C. 3601-3619) as
promulgated by 24 CFR 100.201 and 205.
7.3
Recipient will cause Developer to provide all documentation to City upon request in
compliance of this section, including, but not limited to: construction cost estimates,
contracts, inspection records and financial records.
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Ongoing Property Standards
8.1
Recipient shall, or shall cause Developer to ensure that the HOME-assisted units continue to
remain safe, decent and sanitary throughout the period of affordability. At a minimum,
assisted units must comply with HUD Housing Quality Standards (HQS) applicable to the
Section 8 Housing Choice Voucher Program.
8.2
The City will inspect, using HUD-prescribed instruments, each assisted unit, at least once
annually to document compliance with these property standards.
8.3
The City will provide ample notice to Recipient and Developer to facilitate the inspection of
each assisted unit.
8.4
In the event of non-compliance, the City will provide written notification of the violation to
the Recipient and Developer, and provide for a 30-day cure period, at which time, the
Recipient shall, or shall cause Developer to notify the City of completion of repairs, and
schedule a reinspection.
8.5
Violations that, in the City’s sole discretion, constitute an immediate threat to the health or
safety of occupants, shall allow the City to require a shorter cure period.
8.6
Deficient units shall be re-inspected as many times as is necessary to ensure that all identified
violations have been corrected to the standards required in 24 CFR 92.251 (f).
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Conditions of Religious Organizations.
9.1
Organizations that are religious or faith-based are eligible, on the same basis as any other
organization, to participate in the HOME Program. Neither the federal government nor a
state or local government receiving funds under the HOME Program will discriminate
against an organization on the basis of the organization’s religious character or affiliation.
9.2
Organizations that are directly 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 under this section.
9.3
If an organization conducts such activities, the activities must be offered separately, in time
or location, from the assistance funded under this part, and participation must be voluntary
for the beneficiaries of the assistance provided.
9.4
The completed Project must be used exclusively by the owner entity for secular purposes,
available to all persons regardless of religion. In particular, there must be no religious or
membership criteria for tenants of the Property.
9.5
An organization that participates in the HOME Program will not, in providing HOME
Program assistance, discriminate against a Program beneficiary or prospective Program
beneficiary on the basis of religion, religious belief or lack thereof.
9.6
The City will assure that any use of HOME Program funds by a religious organization, when
commingled with funds of the religious organization, meet the requirements of 24 C.F.R. §
92.257.
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Non-Discrimination. In the selection of Tenants, Recipient shall cause Developer to comply with
all non-discrimination requirements of 24 C.F.R. § 92.350. Recipient agrees to cause Developer to
post notices containing this policy against discrimination in conspicuous places available to applicants
for employment and employees. All solicitations or advertisements for employees, placed by or on
the behalf of Developer, will state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, disability, sex, national origin, financial status,
age, sexual orientation, gender identity, or marital status.
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Nondiscrimination and Equal Employment Opportunity.
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11.1
Recipient shall ensure that Developer will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, disability, national origin, financial
status, age, sexual orientation, gender identity, or marital status. Such action will include, but
not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment
or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. Recipient agrees to cause
Developer to post in conspicuous places, available to employees and applicants for
employment, notices to be provided by the City’s Representative setting forth the provisions
of this nondiscrimination clause.
11.2
Recipient will cause Developer to, in all solicitations or advertisements for employees placed
by or on behalf of Developer, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, disability, national origin, financial
status, age, sexual orientation, gender identity, or marital status.
11.3
Recipient will cause Developer to send to each labor union or representative of workers with
which he has a collective bargaining agreement or other contract or understanding, a notice
to be provided by the City's Representative, advising the labor union or worker's
representative of Developer's commitments under Executive Order No. 11246 of September
24, 1965, and will post copies of the notice in conspicuous places available to employees and
applicants for employment.
11.4
Recipient will cause Developer comply with all provisions of Executive Order 11246 of
September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of
Labor.
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Intentionally Omitted.
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Debarment and Suspension. As required by 24 C.F.R. Part 24.1, federal funds will not be used
directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any
contractor, subcontractor, developer, business, consultant or any entity during any period of
debarment, suspension, or placement in ineligibility status, including the beneficiary of HOME
Program investment.
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Drug Free Workplace. Recipient agrees to cause Developer to make diligent efforts to comply
with 24 C.F.R. Part 24, Subpart F, as described in Attachment J of this Agreement.
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Affirmative Marketing & Minority Outreach. Recipient will cause Developer to adopt affirmative
marketing procedures and requirements for HOME Program-assisted housing containing five (5) or
more housing units. “Affirmative marketing procedures” will consist of actions to provide
information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the
housing market area to the available housing and will comply with the requirements and procedures
of 24 C.F.R. § 92.351.
16
Environmental Review. No HOME Program funds may be encumbered until the City has
completed an Environment Review pursuant to the provisions of the National Environmental Policy
Act of 1969 (“NEPA”) and the related authorities listed in HUD’s implementing regulations at 24
C.F.R. § 50.1, et seq. and 24 C.R.F. § 58.1, et seq. Until the Environment Review is complete, and a
Release of Funds obtained from HUD, Recipient will not, and will cause Developer to not undertake
or commit any HOME Program funds to physical or choice-limiting actions, including property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to
environmental clearance. The results of the Environmental Review may result in a decision to
proceed with, modify or cancel the Project.
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Displacement, Relocation, and Acquisition.
17.1
Recipient will cause Developer to ensure that it has taken all reasonable steps to minimize
the displacement of persons (families, individuals, businesses, nonprofit organizations, and
farms) as a result of the Project.
17.2
Recipient will cause Developer to consult the City prior to proceeding with any Project
activity with HOME Program funds that may cause temporary or permanent displacement
of the beneficiary of HOME Program investment. Such consultation shall assure
compliance with appropriate relocation requirements of 24 C.F.R. § 92.353 in accordance
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with the requirements of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (“URA”) (42 U.S.C. §§ 4201-4655) and implementing regulations at 49
C.F.R. Part 24, as amended and the Fair Housing Act (42 U.S.C. §§ 3601-19).
17.3
The Project is subject to the requirements of the Housing and Community Development
Act of 1974, and implementing regulation at 24 C.F.R. § 570. This includes the section 104
(d) requirements to provide relocation assistance and replace low- and moderate-income
housing as described at 24 C.F.R. § 570.606(c).
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Labor Requirements.
18.1
Federal regulation 24 C.F.R. § 92.354 requires that any contract for the construction
(rehabilitation or new construction) of affordable housing with 12 or more units assisted
with funds made available under the HOME Program must contain a provision requiring
that the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant
to the Davis-Bacon Act (40 U.S.C. §§ 276a-5), will be paid to all laborers and mechanics
employed in the development of affordable housing involved. Such agreements must also
be subject to the overtime provisions, as applicable, to the Work Hours and Safety Standards
Act (40 U.S.C. §§ 327-332).
18.2
Recipient will cause Developer to comply with regulations issued under Federal Laws and
Regulations pertaining to labor standards and HUD handbook 1344.1 (Federal Labor
Standards Compliance in Housing and Community Development Programs), as applicable.
18.3
Recipient will cause Developer to furnish all information and reports required by Executive
Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and
accounts by the City and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and order
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Labor, Training & Business Opportunity (Section 3)
19.1
It is agreed that performance under this Agreement is on a Project assisted under a program
providing direct federal financial assistance from HUD and is subject to the requirements of
Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. §
1701u), as well as any and all applicable amendments thereto. Section 3 requires that, to the
greatest extent feasible, opportunities for training and employment be provided to low and
moderate income residents of the Project area, and that contracts, to the greatest extent
feasible, for work in connection with the Project be awarded to business concerns which are
located in, or owned in substantial part by persons residing in the Project area.
19.2
Recipient will cause Developer to comply with the regulations issued pursuant thereto by
HUD as set forth in Title 24 of the Code of Federal Regulations and all applicable rules and
orders of HUD issued there under as well as any and all applicable amendments thereto
prior to the execution of this Agreement as well as during the term of this Agreement.
Recipient certifies and agrees and will cause Developer to certify and agree that it is under no
contractual or other disability, which would prevent it from complying with these
requirements as well as any and all applicable amendments thereto.
19.3
In construction contracts of $100,000 or more, Recipient will cause Developer to include a
clause that in every subcontract performing work in connection with the Project and will, at
the direction of the City, take appropriate action under 24 C.F.R. Part 135. Recipient will
cause Developer to not subcontract with any subcontractor where it has notice or
knowledge that the latter has been found in violation of regulations under Title 24 of the
Code of Federal Regulations and will not enter into any subcontract unless the subcontractor
has first provided it with a preliminary statement of ability to comply with these
requirements as well as with any and all applicable amendments thereto.
19.4
Compliance with the provisions of Section 3, the regulations set forth in Title 24 of the
Code of Federal Regulations and all applicable rules and orders of HUD issued thereunder is
a condition precedent to federal financial assistance being provided to and continuing to be
provided to the Recipient. Such compliance will be binding upon the applicant or recipient
for such assistance, its successors, and assigns. Failure to fulfill these requirements will
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subject Recipient, Developer, its contractors and subcontractors, its successors, and assigns
to those sanctions specified by Title 24 of the Code of Federal Regulations, as amended, and
may be cause to terminate this Agreement.
20
Conflict.
20.1
Recipient acknowledges, and agrees to cause Developer to acknowledge this Agreement is
subject to A.R.S. § 38-511, which allows for cancellation of this Agreement in the event any
person who is significantly involved in initiating, negotiating, securing, drafting, or creating
the Agreement on City's behalf is also an employee, agent, or consultant of any other party
to this Agreement.
20.2
Recipient agrees to, and agrees to cause Developer to abide by the provisions of 24 C.F.R. §
92.356 with respect to conflicts of interest, and covenants that no person who exercises or
have exercised any functions or responsibilities with respect to activities assisted with
HOME Program funds or who are in a position to participate in a decision making process
or gain any inside information with regard to these activities, may obtain a financial interest
or benefit from the Project, or have an interest in any contract, subcontract or agreement
with respect thereto, or proceeds derived from the Project, either for themselves or those
with whom they have family or business ties, during their tenure or for one year thereafter.
20.3
Recipient covenants, and agrees to cause Developer to covenant that no partner, nor any
member of its staff has an identity of interest with any person or entities that might benefit
directly or indirectly financially from this Agreement.
20.4
Recipient further covenants, and agrees to cause Developer to Covenant that in the
performance of this Agreement no person, having such a financial interest and/or influence
with regard to the Project, will be employed or retained by Recipient or Developer.
20.5
No owner, developer or sponsor of a project assisted with HOME Program funds (or
officer, employee, agent or consultant of the owner, developer or sponsor) whether private,
for profit or nonprofit (when acting as an owner, developer or sponsor) may occupy a
HOME Program-assisted affordable housing unit in the Project. This provision does not
apply to an individual who receives HOME Program funds to acquire or rehabilitate his or
her principle residence or to an employee or agent of the owner or developer of a rental
housing project who occupies a housing unit as the Project manager or maintenance worker.
20.6
If such conflict as outlined above does exist, Recipient is bound, and shall cause Developer
to disclose officially in writing, on Recipient and/or Developer’s letterhead, as applicable, the
nature and extent of that conflict prior to execution of this Agreement, or if discovered
subsequently, to disclose such conflict as soon as it occurs or is known.
20.7
Exceptions to above requirements are allowed under certain circumstances in accordance
with 24 C.F.R. §§ 92.356(d), (e) and (f)(2). Requests for exceptions must be made to the City
who, after determination as to whether an exception request is warranted, will render a
decision and/or seek the approval of HUD to render a decision.
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Records and Reports.
21.1
The City reserves the right to inspect, monitor, and observe work and services performed by
Recipient and/or Developer at any and all reasonable times.
21.2
The City reserves the right to audit the records of Recipient and/or Developer any time
during the performance of this Agreement and for a period of six (6) years after the period
of affordability has been satisfied under this Agreement.
21.3
Recipient will cause Developer to provide the City with a copy of their single audit and
management letter pursuant to the requirements of 2 CFR 200 annually, but no later than 30
days after completion of single audit.
21.4
Access will be immediately granted to the City, HUD, the Comptroller General of the
United States, or any of their duly authorized representatives to any books, documents,
papers, and records of Recipient and/or Developer or its contractors which are directly
pertinent to that specific contract for the purpose of making audit, examination, excerpts,
and transcriptions.
22
Enforcement of the Agreement.
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22.1
The City will enforce this Agreement in accordance with 24 C.F.R. § 85.43, by suspension or
termination of the Agreement should Recipient or Developer fail to comply with any term
of the Agreement, or for convenience in accordance with 24 C.F.R. § 85.44.
22.2
Recipient acknowledges and agrees to cause Recipient to acknowledge that it will be subject
to sanctions set forth in HOME Program Regulation 24 C.F.R. Part 92, if determined to be
applicable by the City.
22.3
The parties hereto agree that this Agreement will be construed and enforced according to
the laws of the State of Arizona and all applicable federal laws and regulations.
22.4
The City will secure its interest in this Agreement as required by the HOME Program with a
Promissory Note (Exhibit G), a Collateral Assignment of Deed of Trust and a Declaration
of Covenants, Conditions, and Restrictions the latter two recorded separately and
concurrently with this Agreement.
23
Disbursement of Funds
23.1
Project expenses will be paid based on invoices for actual expenses paid. All such expenses
will be in conformance to the approved Project Budget. Recipient will cause Developer to
be responsible for any cost overruns.
23.2
Recipient shall cause Developer to covenant that all expenditures will comply with 2 CFR
200, and will be allowable, allocable and reasonable. The City reserves the right to inspect
records and Project sites to determine that reimbursement and compensation requests meet
the terms of 2 CFR 200. The City also reserves the right to hold payment until adequate
documentation has been provided and reviewed.
23.3
Recipient shall cause Developer to submit a final invoice upon completion of the Project.
Final payment will be made after the City has determined that all services have been
rendered, files and documentation delivered, and units constructed and occupied by eligible
tenants in full compliance with HOME Program regulations, including submission of a
completion report and documentation of eligible occupancy, property standards and long-
term use restrictions.
23.4
Recipient and Developer will be monitored by the City for compliance with the regulations
of 24 C.F.R. § 92.252(a) (4) for the affordability period specified herein. Recipient shall
cause Developer to provide reports and access to Project files as requested by the City
during the construction of the Project and for six (6) years after completion and closeout of
the Agreement or during the affordability period, whichever is longer.
24
Duration of the Agreement. This Agreement shall be effective for 24 months commencing on the
date of this Agreement and expiring on [DATE], 2025 unless sooner terminated pursuant to the
provisions contained herein.
25
Procurement Standards.
25.1
Recipient shall cause Developer to comply with local procurement requirements as listed in
the Additional Requirements as further described in Exhibit J.
25.2
Recipient shall cause Developer to establish procurement procedures to ensure that materials
and services are obtained in a cost-effective manner. When procuring services to be
provided under this Agreement, Recipient shall cause Developer to comply, at a minimum,
with the nonprofit procurement standards at 24 C.F.R. §§ 84.40-48.
25.3
To the extent Recipient or Developer can be considered to be a religious organization, it
will, or will cause Developer, as applicable, to abide by all portions of 24 C.F.R. § 92.257.
26
Uniform Administrative Requirements. To the extent applicable to a nongovernmental recipient
of federal funds, and to the extent applicable to the Project, Recipient will cause Developer to
comply with 2 CFR 200, as amended, the Davis-Bacon Act (40 U.S.C. 276a et seq.), as amended, and
as supplemented by Department of Labor regulations (29 C.F.R. Part 5, as amended), the Copeland
Anti-Kickback Act (18 U.S.C. 874), as amended, and as supplemented by Department of Labor
regulations (29 C.F.R. Part 3, as amended), the Agreement Work Hours and Safety Standards Act (40
U.S.C. 327 et seq.), as amended, and as supplemented by Department of Labor regulations (29 C.F.R.
Part 5, as amended); Executive Order 11246 (Equal Opportunity), as amended, and as supplemented
by Department of Labor regulations (41 C.F.R., chapter 60, as amended); and the Uniform
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Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq., as
amended and Section 104(d) of the Act), and in accordance with 24 C.F.R. Part 42, as amended.
27
Immigration Law Compliance.
27.1
Recipient shall cause Developer to cause any contractor to and on behalf any subcontractor,
to warrant, to the extent applicable under A.R.S. § 41-4401, compliance with all federal
immigration laws and regulations that relate to their employees as well as compliance with
A.R.S. § 23-214(A) which requires registration and participation with the E-Verify Program.
27.2
Any breach of warranty under subsection 18.1 above is considered a material breach of this
Agreement and is subject to penalties up to and including termination of this Agreement.
27.3
City retains the legal right to inspect the papers of any Contractor or subcontractor
employee who performs work under this Agreement to ensure that the Contractor or any
subcontractor is compliant with the warranty under subsection 18.1 above.
27.4
City may conduct random inspections, and upon request of City, Contractor will provide
copies of papers and records of Contractor demonstrating continued compliance with the
warranty under subsection 18.1 above. Contractor agrees to keep papers and records
available for inspection by the City during normal business hours and will cooperate with
City in exercise of its statutory duties and not deny access to its business premises or
applicable papers or records for the purposes of enforcement of this section.
27.5
Recipient agrees to cause Developer to cause Contractor to incorporate into any
subcontracts under this Agreement the same obligations imposed upon Contractor and
expressly accrue those obligations directly to the benefit of the City. Contractor also agrees
to require any subcontractor to incorporate into each of its own subcontracts under this
Agreement the same obligations above and expressly accrue those obligations to the benefit
of the City.
27.6
Contractor’s warranty and obligations under this section to the City is continuing throughout
the term of this Agreement or until such time as the City determines, in its sole discretion,
that Arizona law has been modified in that compliance with this section is no longer a
requirement.
27.7
The “E-Verify Program” above means the employment verification program administered
by the United States Department of Homeland Security, the Social Security Administration,
or any successor programs.
28
Insurance.
28.1
Recipient will cause Developer to obtain, maintain and provide evidence of the following
insurance ("Required Insurance") consistent with Exhibit K, Insurance Certificate.
28.2
Developer and Sub-contractors. Recipient shall cause Developer, and each Sub-contractor
performing work or providing materials related to this Agreement to procure and maintain
the insurance coverages described below (collectively “Contractor's Policies"), until each
Parties' obligations under this Agreement are completed
28.3
Recipient shall cause Developer to at all times relevant hereto carry a commercial general
liability policy with a combined single limit of at least $1,000,000 per occurrence and
$2,000,000 annual aggregate.
28.4
Sub-contractors must at all times relevant hereto carry a general commercial liability policy
with a combined single limit of at least $1,000,000 per occurrence.
28.5
This commercial general liability insurance must include independent contractors' liability,
contractual liability, broad form property coverage, products and completed operations,
XCU hazards if requested by the City, and a separation of insurance provision.
28.6
These limits may be met through a combination of primary and excess liability coverage.
28.7
Auto. A business auto policy providing a liability limit of at least $1,000,000 per accident for
Developer and $1,000,000 per accident for Sub-contractors and covering owned, non-owned
and hired automobiles.
28.8
Workers' Compensation and Employer's Liability. A workers' compensation and employer's
liability policy providing at least the minimum benefits is required by Arizona law.
10
28.9
Equipment Insurance. Recipient shall cause Developer to secure, pay for, and maintain all-
risk insurance as necessary to protect the City against loss of owned, non-owned, rented or
leased capital equipment and tools, equipment and scaffolding, staging, towers and forms
owned or rented by Developer or its Sub-contractors.
28.10
Notice of Changes. Recipient shall cause Developer's Policies to provide for not less than
30 days' advance written notice to City Representative of:
28.10.1 Cancellation or termination of Developer or Sub-Contractor’s Policies;
28.10.2 Reduction of the coverage limits of any of Developer or and Sub-Contractor’s
Policies; and
28.10.3 Any other material modification of Developer or Sub-Contractor’s Policies related
to this Agreement.
Certificates of Insurance.
28.11
Within 20 business days after the execution of the Agreement, Recipient shall cause
Developer to deliver to City Representative certificates of insurance for each of Developer
and Sub-Contractor’s Policies, which will confirm the existence or issuance of Contractor
and Sub-Contractor’s Policies in accordance with the provisions of this section, and copies
of the endorsements of Developer and Sub-contractor's Policies in accordance with the
provisions of this section.
28.12
City is and will be under no obligation either to ascertain or confirm the existence or
issuance of Developer and Sub-Contractor’s Policies, or to examine Developer and Sub-
Contractor’s Policies, or to inform Contractor or Sub-contractor in the event that any
coverage does not comply with the requirements of this section.
28.13
Recipient’s failure to cause Developer to secure and maintain Developer Policies and to
assure Sub-Contractor Policies as required will constitute a material default under this
Agreement.
28.14
Other Contractors or Vendors.
28.14.1 Other contractors or vendors that may be contracted by Developer with in
connection with the Project must procure and maintain insurance coverage as is
appropriate to their particular agreement.
28.14.2 This insurance coverage must comply with the requirements set forth above for
Contractor's Policies (e.g., the requirements pertaining to endorsements to name the
parties as additional insured parties and certificates of insurance).
28.15
Policies. Except with respect to workers' compensation and employer's liability coverages,
the City must be named and properly endorsed as additional insureds on all liability policies
required by this section.
28.16
The coverage extended to additional insureds must be primary and must not contribute with
any insurance or self-insurance policies or programs maintained by the additional insureds.
28.17
All insurance policies obtained pursuant to this section must be with companies legally
authorized to do business in the State of Arizona and acceptable to all parties.
28.18
Recipient shall cause Developer to cause its Sub-contractors to obtain and maintain the
Required Insurance.
28.19
City may consider waiving these insurance requirements for a specific Sub-contractor if City
is satisfied the amounts required are not commercially available to the Sub-contractor and
the insurance the Sub-contractor does have is appropriate for the Sub-contractor's work
under this Agreement.
28.20
Recipient shall cause Developer and Sub-contractors to provide to the City proof of
Required Insurance whenever requested.
29
Bonds. Upon execution of this Agreement, and if applicable, Developer must furnish payment and
performance bonds as required under A.R.S. § 34-608 and 24 C.F.R. Part 85.36(h).
30
Compliance with Federal, State & Local Laws. Developer covenants and warrants that it will
comply with all applicable laws, ordinances, codes, rules and regulations of the state local and federal
11
governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil Rights
Act of 1968 PL.90-284; Executive Order 11063 on Equal Opportunity and Housing Section 3 of the
Housing and Urban Development Act of 1968; Housing and Community Development Act of
1974, and all requirements of the HOME Program as set forth in 24 C.F.R. Part 92.
31
Suspension & Termination.
31.1
In accordance with 24 C.F.R. § 85.43, suspension or termination may occur if Recipient
materially fails to comply with any term of the award, and that the award may be terminated
for convenience in accordance with 24 C.F.R. § 85.44.
31.2
If Recipient is unable to cause Developer to meet the approved timelines as required by
HOME Program regulations or complete the Project because of delays resulting from Acts
of God, untimely review and approval by the City and other governmental authorities having
jurisdiction over the Project, or other delays that are not caused solely by Developer, the City
will grant a reasonable extension of time for completion of the Project. It will be the
responsibility of Recipient and/or Developer to notify the City promptly in writing
whenever a delay is anticipated or experienced, and to inform the City of all facts and details
related to the delay. Recipient will, or will cause Developer to also inform the City when it
expects the delay to end and when it expects the Project to be complete.
31.3
If Recipient fails in any manner to fully perform and carry out any of the terms, covenants,
and conditions of the Agreement, or if Recipient refuses or fails to cause Developer to
proceed with the Project with such diligence as will ensure its completion within the time
fixed by HOME Program regulations, Recipient will be in default and notice in writing will
be given to Recipient’s Representative of such default by the City or an agent of the City. If
Recipient fails to cure such default within such time as may be required by such notice, the
City may at its option terminate and cancel the Agreement at the expiration of the cure
period. Developer, and partner of Developer shall have the same right, but not the
obligation to cure defaults hereunder on the same terms as the Recipient. Nothing in this
section, modifies or removes an obligation to cure any default.
31.4
In the event of such termination, all HOME Program funds awarded to Recipient pursuant
to this Agreement will be immediately revoked and any approvals related to the Project will
immediately be deemed revoked and canceled. In such event, Recipient will no longer be
entitled to receive any compensation for work undertaken after the date of the termination
of this Agreement, as the grant funds will no longer be available for this Project.
31.5
In the event of such termination, Recipient will be entitled to receive just and equitable
compensation for any work satisfactorily completed hereunder prior to the date of said
termination.
31.6
Notwithstanding the above, Recipient will not be relieved of liability to the City for damages
sustained by the City by virtue of any breach of the Agreement by the Recipient. The City
may withhold any payments to the Recipient for the purpose of setoff against such damages
until such time as the exact amount of damages due the City from Recipient is determined
whether by court of competent jurisdiction or otherwise.
31.7
The waiver or failure to enforce a breach of any term, covenant or condition hereof will not
operate as a waiver of any subsequent breach of the same or any other term, covenant, or
condition hereof.
32
Default-Loss of HOME Program Funds.
32.1
In the event of such termination, all HOME Program funds awarded to Recipient pursuant
to this Agreement will be immediately revoked and any approvals related to the Project will
immediately be deemed revoked and canceled. In such event, Recipient will no longer be
entitled to receive any compensation for work undertaken after the date of the termination
of this Agreement, as the HOME Program funds will no longer be available for this Project.
32.2
Such termination will not affect or terminate any of the rights of the City as against
Recipient then existing, or which may thereafter accrue because of such default, and the
foregoing provision will be in addition to all other rights and remedies available to the City
under the law and the Note and Collateral Assignment of Deed of Trust (if in effect),
12
including but not limited to compelling Recipient to compel Developer to complete the
Project in accordance with the terms of this Agreement, in a court of equity.
32.3
The waiver of a breach of any term, covenant or condition hereof will not operate as a
waiver of any subsequent breach of the same or any other term, covenant, or condition
hereof.
33
Indemnification Agreement. Recipient will, or will cause Developer to, during the term of this
Agreement, indemnify, hold, protect, and save harmless the City and any and all of its officers,
elected officials, agents, and employees from and against any all actions, audits, proceedings, claims
and demands, loss, liens, out of pocket costs, expenses and liability of any kind and nature
whatsoever, for injury to or death of persons, or damage to property, including property owned by
the City brought, made, filed against, imposed upon or sustained by the City, its officers, agents, or
employees in and arising from attributable to or caused directly or indirectly by the gross negligence,
wrongful acts, omissions or from operations conducted by the Recipient, the Developer, its officers,
agents or employees, or by any person acting on behalf of Recipient and with Recipient’s knowledge
and consent, expressed or implied.
34
Prohibited Lobbying Activities. Recipient, his/her agent or representative will not have any
lobbying contact, as defined by the Lobbying Disclosure Act (2 U.S.C. 1602), orally or in any written
form with any City elected official or any City employee other than the Planning and Community
Development Department, City Manager, Deputy or Assistant City Manager or City Attorney’s office
(for legal issues only) regarding the contents of this Agreement.
35
Prohibited Political Contribution. Recipient, during the term of this Agreement, will not make a
contribution reportable under Title 16, Chapter 6, Article 1, Arizona Revised Statutes to a candidate
or candidate committee for any City elective office during the term of this Agreement. The City
reserves the right to terminate the Agreement without penalty for any violation of this provision.
36
Contingent Fees. Recipient promises that it has not employed or retained any company or person,
other than bona fide employees working solely for Recipient, to solicit or secure this Agreement, and
that it has not paid or agreed to pay any company or person, other than bona fide employees working
solely for Recipient, any fee, commission, percentage, brokerage fee, gifts or any other consideration
contingent upon or resulting from the award or making of this Agreement. For breach of this
promise, the City may cancel this Agreement without liability or, at its discretion, deduct the full
amount of the fee, commission, percentage, brokerage fee, gift or contingent fee from the
compensation due Recipient.
37
Successors and Assigns. This Agreement is binding on the City and Recipient, and its successors
and assigns. Neither the City nor Recipient will assign or transfer its interest in this Agreement
without the written consent of the other.
38
Representatives.
Recipient. Recipient's representative ("Recipient's Representative") authorized to act on Recipient's
behalf with respect to the Project, and his or her address for Notice delivery is:
Mercy Housing Mountain Plains
1600 Broadway, Suite 200
Denver, CO 80202
Attn: Kuhl Brown
And to:
Winthrop & Weinstine, P.A.
225 S. 6th Street, Suite 3500
Minneapolis, MN 55402
Attn: Jon, L. Peterson, Esq.
Developer. Developer's representative ("Developer's Representative") authorized to act on
Developer's behalf with respect to the Project, and his or her address for Notice delivery is:
13
MHMP 19 Glendale Senior Apartments LLLP
c/o: Mercy Housing Mountain Plains
1600 Broadway, Suite 200
Denver, CO 80202
Attn: Kuhl Brown
And to:
Winthrop & Weinstine, P.A.
225 S. 6th Street, Suite 3500
Minneapolis, MN 55402
Attn: Jon, L. Peterson, Esq.
With a copy to Developer's Investor Limited Partner:
Wincopin Circle LLLP
c/o Enterprise Community Asset Management, Inc.
70 Corporate Center
11000 Broken Land Parkway, Suite 700
Columbia, MD 21004
And to:
Holland & Knight LLP
10 St. James Avenue, 12th Floor
Boston, MA 02116
Attn: Dayna M. Hutchins, Esq.
City. City's representative ("City's Representative") authorized to act on City's behalf, and his or her
address for Notice delivery is:
CITY OF GLENDALE CONTACT
With required copies to:
City of Glendale
City of Glendale
City Manager
City Attorney
5850 West Glendale Avenue
5850 West Glendale Avenue
Glendale, Arizona 85301
Glendale, Arizona 85301
Concurrent Notices. All notices to City's Representative must be given concurrently to City Manager
and City Attorney.
A notice will not be considered to have been received by City's Representative until the time that it
has also been received by the City Manager and City Attorney.
City may appoint one or more designees for the purpose of receiving notice by delivery of a written
notice to Contractor identifying the designee(s) and their respective addresses for notices.
Changes. Recipient or City may change its representative or information on Notice, by giving Notice
of the change in accordance with this section at least ten days prior to the change.
39
Other Provisions.
39.1
Recipient is responsible for all applicable state and federal social security benefits and
unemployment taxes and agrees to indemnify and protect the City against such liability.
14
39.2
Recipient will maintain a procurement code of conduct for its organization, and ensure
compliance by all employees.
39.3
Alterations to the Project and Budget must be mutually agreed upon by the City and
Recipient, and will be incorporated into this Agreement by written amendments signed by
both parties.
39.4
This Agreement represents the entire agreement between the parties and supersedes all prior
representations, negotiations or agreements whether written or oral.
39.5
Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
39.6
In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached documents, the terms in this Agreement will rule.
39.7
No waiver or breach of any provision of this Agreement will constitute a waiver of a
subsequent breach of the same or any other provision hereof, and no waiver will be effective
unless made in writing.
39.8
Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement
be determined by a court of competent jurisdiction to be invalid, illegal or otherwise
unenforceable under the laws of the State of Arizona, such provisions, paragraphs,
sentences, words or phrases will be deemed modified to the extent necessary in order to
conform with such laws, or if not modifiable to conform with such laws, then same will be
deemed severable, and in either event, the remaining terms and provisions of this Agreement
will remain unmodified and in full force and effect.
39.9
Recipient, Developer and its employees and agents will be deemed to be independent
contractors, and not agents or employees of the City, and will not attain any rights or
benefits under the civil service or pension ordinances of the City, or any rights generally
afforded classified or unclassified employee; further they will not be deemed entitled to state
compensation benefits as an employee of the City.
39.10
Funding for this Agreement is contingent on the availability of funds and continued
authorization for the Project and is subject to amendment or termination due to lack of
funds, or authorization, reduction of funds, and/or change in regulations.
40
Exhibits. The following exhibits, with reference to the term in which they are first referenced, are
incorporated by this reference.
Exhibit A
Project Scope
Exhibit B
Legal Description
Exhibit C
Project Schedule
Exhibit D
Project Budget
Exhibit E
Prohibited Lease Provisions
Exhibit F
Reserved
Exhibit G
Developer Promissory Note
Exhibit H
Certifications
Exhibit I
Federal Laws and Regulations
Exhibit J
Additional Requirements
Exhibit K
Insurance
(Signatures Appear on the Next Page)
15
IN WITNESS WHEREOF, all parties concerned acknowledge that they have read, understand, approve, and
accept all of the provisions of this Agreement.
CITY OF GLENDALE, an Arizona
municipal corporation
___________________________________
Kevin R. Phelps
City Manager
ATTEST:
______________________________
Julie K. Bower
City Clerk
(SEAL)
APPROVED AS TO FORM:
______________________________
Michael D. Bailey
City Attorney
16
Mercy Housing Mountain Plains a Colorado nonprofit
corporation
By: _______________________________
Name: Shelly Marquez
Its: President
STATE OF ___________ )
) ss.
County of ____________ )
This Developer Agreement is subscribed and sworn to before me this _____ day of
_________________, 2023, by Shelly Marquez, the President of Mercy Housing Mountain Plains , a
Colorado nonprofit corporation, as Recipient , who signed the above document.
____________________________________
Notary Public
My Commission Expires:
_____________________
1
EXHIBIT A
PROJECT SCOPE
1.
Purpose. The City has awarded Recipient HOME Program funds to pay for partial construction costs
associated with the development of the Project, a 148-unit affordable multi-family rental project.
2.
Location. The Project site is 4902 W. Glendale Avenue in the City of Glendale, AZ 85301, as defined
in Exhibit B.
3.
Schedule. Project activities will include, but are not limited to: site acquisition; completion of all pre-
development activities (environmental review, release of funds, funding commitments, design review,
building permits, etc.); construction mobilization, construction, marketing and occupancy of 148 units.
Project construction completion expected by [DATE], and 100% occupancy achieved by [DATE], as
defined in Exhibit C.
4.
Funding. The City is providing [$500,000.00] of the total budget. Developer is obtaining remainder
of Project funds from equity funding made available through an allocation of Low Income Housing
Tax Credits, private permanent financing and gap financing from the State of Arizona. The total
budget for the Project is [$XX,XXX,XXX.XX]. The budget and Project expenses are defined in
Exhibit D.
1
EXHIBIT B
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA,
STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:
[INSERT LEGAL DESCRIPTION]
APN: [XXX-XX-XXXX]
2
EXHIBIT C
PROJECT SCHEDULE
Project Milestone
Estimated Completion Date
Completion of Environmental Review
DATE
Design review and building permit
DATE
Receipt of Release of Funds from HUD
DATE
Acquisition of property & commitment of funding
DATE
Notice to Proceed
DATE
Construction mobilization
DATE
25% completion
DATE
50% completion
DATE
75% completion
DATE
100% completion
DATE
25% occupancy (including HOME-assisted units)
DATE
50% occupancy
DATE
100% occupancy
DATE
Project Completion & Closeout
DATE
3
EXHIBIT D
PROJECT BUDGET
SOURCES
TOTAL PROJECT FUNDING FY
2022-23
City of Glendale HOME Program Funding - Loan
$
INSERT LENDER – permanent lender
$
Arizona Dept. of Housing Gap Financing
$
LIHTC Equity
$
Deferred Developer Fee
$
Total
$
1
EXHIBIT E
PROHIBITED LEASE PROVISIONS
Pursuant to 24 CFR 92.253 (b), the following terms are prohibited from inclusion in leases of HOME-assisted units for
the period of affordability agreed upon herein.
1.
Agreement to be Sued. Tenant shall not be required to agree to be sued, admit guilt or consent to judgement in
favor of the landlord in legal proceedings brought forth in connection with the lease agreement.
2. Treatment of Property. Landlord shall not take, hold, or sell tenant’s personal property without notice and a
court decision on the rights of the respective parties.
3. Excusing Owner from Responsibility. Tenant shall not be required to hold landlord or landlord’s agents
harmless in any action or failure to act, whether unintentional or negligent.
4. Waiver of Notice. Tenant shall not be required to waive notification of a lawsuit instituted by landlord.
5. Waiver of Legal Proceedings. Tenant shall not be required to waive a court proceeding in an eviction process.
6. Waiver of Jury Trial. Tenant shall not be required to waive any right to a trial jury.
7. Waiver of Right to Appeal Court Decisions. Tenant shall not be required to waive their rights to appeal a court
decision associated with the lease.
8. Tenant’s Payment of Legal Fees. Tenant shall not be required to pay any legal costs of landlord associated with
a court proceeding.
9. Mandatory Supportive Services. Tenant shall not be required to accept supportive services in connection with
their occupancy of the HOME-assisted unit.
Recipient acknowledges and agrees that inclusion of any of these provisions in a HOME-assisted lease agreement,
regardless of intent, is unenforceable.
Mercy Housing Mountain Plains, a Colorado nonprofit
corporation
By: _______________________________
Name: Shelly Marquez
Its: President
1
EXHIBIT F
[Reserved].
1
EXHIBIT G
DEVELOPER PROMISSORY NOTE
Loan Amount: $500,000.00
Glendale, Arizona
Date: [DATE], 2023
FOR VALUE RECEIVED, the undersigned ("Maker") jointly and severally promise(s) to pay to the order of
the City of Glendale, an Arizona municipal corporation (City), or its successors, the principal sum of FIVE
HUNDRED THOUSAND DOLLARS AND NO/100 ($500,000.00). This Promissory Note (“ Note”) is
made on a 20-year Deferred Payment, bearing interest at the rate of 0.0% per annum.
This Note shall become due and payable in full upon any transfer, voluntary, involuntary, or by operation of
law, of the property defined in Attachment 1 hereto (the “Property”) within ten years from the date of this
Note, or at any time within twenty years from the date of this Note the Property ceases to be used to provide
services to assist low-income persons and families in obtaining decent and affordable rental opportunities.
This Note is security for the obligations of the undersigned contained in the Developer Agreement by and
between Maker and the City dated as of the date hereof (the “Agreement”) for the Project, as defined therein,
executed by the parties as of the date hereof.
The amount due at such time shall be the full principal sum amount as authorized by the HOME Investment
Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42
U.S.C. 12701, et seq. (“HOME Program”).
If at the end of the term of this Note, the undersigned has continuously provided the services and complied
with the provisions of the Agreement, the City shall, in its sole and absolute discretion, consider the
obligations of this Note to have been met and shall consider its security interest in the Property to be released
to the undersigned.
Should default be made in the payment of any amount when due, or should the undersigned default on any
obligation owed to the City under the terms of this Note providing security, therefore, the whole sum of
principal shall become immediately due and payable at the option of the City.
If suit or action is instituted by City to recover on this Note, the undersigned will pay reasonable attorneys’
fees and costs in addition to the amount due on the Note.
Diligence, demand, protest and notice of demand and protest are hereby waived and the undersigned hereby
waives, to the extent which otherwise would apply to the debt evidenced by this Note. Consent is hereby
given to the extension of time of payment of this Note, without notice.
The undersigned reserves the right to repay at any time all of the principal amount of this Note in a single
payment without the penalties, discount or premiums.
The Note is nonrecourse. The Loan evidenced by this Note may be prepaid at any time without penalty.
[Signature page to follow]
2
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of the date above
written.
MAKER:
MHMP 19 Glendale Senior Apartments LLLP,
an Arizona limited liability limited partnership
By: MHMP 19 Glendale Senior Apartments GP LLC
Its: General Partner
By: Mercy Housing Mountain Plains
Its: Manager
By: _______________________________
Name: Shelly Marquez
Its: President
STATE OF _______________ )
) ss.
County of ________________ )
This Note is subscribed and sworn to before me this _____ day of _________________, 2023, by
Shelly Marquez, the President of Mercy Housing Mountain Plains, the Manager of MHMP 19 Glendale
Senior Apartments GP LLC, the General Partner of MHMP 19 Glendale Senior Apartments LLLP, an
Arizona limited liability limited partnership, the Maker who signed the above document.
____________________________________
Notary Public
My Commission Expires:
3
Attachment 1 to Promissory Note
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA,
STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:
[INSERT LEGAL DESCRIPTION]
APN: [XXX-XX-XXXX]
1
EXHIBIT H
CERTIFICATIONS
See attached Certifications:
1.
Policy of Nondiscrimination on the Basis of Disability.
2.
Section 319 of Public Law 101-121.
3.
Contracting with Small and Minority Firms, Women’s Business Enterprises and Labor Surplus Area
Firms.
4.
Drug-Free Workplace.
###
1
POLICY OF NONDISCRIMINATION ON THE
BASIS OF DISABILITY
The undersigned representative agrees, on behalf of Client, to have or adopt a Policy of Nondiscrimination
on the Basis of Disability. Such Policy will state that the Developer does not discriminate on the basis of
disabled status in the admission or access to, or treatment or employment in, its federally assisted programs or
activities.
_______________________________________
_______________________________________
Signature
Date
1
SECTION 319 OF PUBLIC LAW 101-121
The Undersigned certifies, to the best of his or her knowledge and belief, that:
1.
No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 this Federal
contract, grant, loan, or cooperative agreement, the undersigned will complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
3.
The undersigned will require that the language of this certification be included in the award documents for
all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and
cooperative agreements), and that all agencies will certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made
or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed
by 31 U.S.C. § 1352. Any person who fails to file the required certification will be subject to a civil penalty of not
less than $10,000 and not more than $100,000 for each such failure.
_______________________________________
_______________________________________
Signature
Date
1
CONTRACTING WITH SMALL AND MINORITY FIRMS,
WOMEN’S BUSINESS ENTERPRISES AND LABOR SURPLUS AREA FIRMS
1.
It is a national policy to award a fair share of contracts to small and minority business firms.
Accordingly, affirmative steps must be taken to assure that small and minority businesses are utilized
when possible as sources of supplies, equipment, construction, and services. Affirmative steps will
include the following:
1.1
Qualified small and minority businesses on solicitation lists.
1.2
Assuring that small and minority businesses are solicited whenever they are potential
sources, and to the greatest extent possible that these businesses are located within the
metropolitan area.
1.3
When economically feasible, dividing total requirements into smaller tasks or quantities so as
to permit maximum small and minority business participation.
1.4
Where the requirement permits, establish delivery schedules which will encourage
participation by small minority businesses.
1.5
Using the services and assistance of the Small Business Administration, and the Office of
Minority Business Enterprises of the Department of Commerce and the Community
Services Administration as required.
1.6
If any subcontracts are to be let, requiring the prime contractor to take the affirmative steps
in §§ 1.1 through 1.5. Grantees will take similar appropriate action in support of women's
enterprises.
1.7
To the greatest extent feasible, opportunities for training and employment will be given to
low and moderate income persons residing within the metropolitan area.
2.
The above-described equal opportunity requirements are obligations of the City because federal
funds are being utilized to finance the Project to which this Project pertains.
3.
In executing any contract, the Developer agrees to comply with the requirements and to provide
appropriate documentation at the request of the City.
_______________________________________
_______________________________________
Signature
Date
1
DRUG-FREE WORKPLACE
The Recipient certifies that it will maintain a drug-free workplace in accordance with the requirements of 24
C.F.R. Part 24, Subpart F by:
1.
Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in the Recipient’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:
2.1
The dangers of drug abuse in the workplace;
2.2
The Recipient’s policy of maintaining a drug-free workplace;
2.3
Any available drug counseling, rehabilitation and employee assistance programs; and
2.4
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:
4.1
Abide by the terms of the statement; and
4.2
Notify the employer 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.
5.
Notifying the City in writing, within ten calendar days after receiving notice under paragraph 4.2
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 will 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 4.2,
with respect to any employee who is so convicted:
6.1
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
6.2
Requiring such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a federal, state, local health
requirements, law enforcement, or other appropriate agency.
7.
Making a good faith effort to continue to maintain a drug-free workplace through implementation of
the above-described paragraphs.
_______________________________________
_______________________________________
Signature
Date
2
EXHIBIT I
FEDERAL LAWS AND REGULATIONS
FY 2022-23
The following federal laws and regulations shall apply to the Project only to the extent applicable
pursuant to federal law and regulations for the Project:
1.
Applicability of Uniform Administrative Requirements. The parties should comply with all
administrative requirements, cost principles, and audit requirements as provided in 2 CFR Part 200 in
compliance with the Final Guidance issued by U.S. Department of Housing and Urban Development on Feb.
26, 2015 (Notice: SD-2015-01)
2.
Equal Opportunity.
2.1
The City agrees to comply with Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and the HUD
regulations under 24 CFR Part 1, which provides that no person in the United States will, on the
grounds of race, color, or national origin, be excluded from participation in, be denied the benefits
of, or be otherwise subjected to discrimination under any activity receiving Federal financial assistance
by way of grant, loan, or MOU and will immediately take any measures necessary to effectuate this
requirement. If any real property or structure thereof is provided or improved with the aid of Federal
financial assistance extended to the City, this assurance will obligate the City, or in the case of any
transfer of such property or structure is used for a purpose of which the Federal financial assistance
is extended or for another purpose involving the provision of similar services or benefits.
2.2
The City agrees to comply with Title VIII of the Civil Rights Act of 1968 (P.L. 90-284), as amended
by the Fair Housing Amendments Act of 1988 (P.L. 100-430), and will administer all activities relating
to housing and community development in a manner to affirmatively further fair housing within
Constitutional limitations throughout the United States.
2.3
The City agrees to comply with Section 109 of the Housing and Community Development Act of
1974 and 1977, as amended, and in conformance with all requirements imposed pursuant to the
regulations of the Department of HUD (24 CFR Part 570.602) issued pursuant to that Section; and
in accordance with Equal Opportunity obligations of that Section, no person in the United States
will, on the grounds of race, color, national origin, or sex, be excluded from participation in, be
denied the benefits of, be subjected to discrimination under, any activity funded in whole or in part
with the Community Development funds. Section 109 of the Act further provides that any
prohibition against discrimination on the basis of age, under the Age Discrimination Act of 1975
(24 CFR Part 146), or with respect to an otherwise qualified handicapped person, as provided in
Section 504 of the Rehabilitation Act of 1973 (24 CFR Part 8), will also apply to any activity funded
in whole or in part with funds made available pursuant to the Act.
2.4
The City agrees to comply with Executive Order 11063 on equal opportunity in housing and related
facilities owned or operated by the Federal Government or provided with Federal financial assistance.
2.5
The City agrees to comply with Executive Order 11246, as amended, requiring nondiscrimination
and affirmative action to ensure nondiscrimination in employment by government contractors and
subcontractors and under federally assisted construction contractors.
2.6
The City agrees to comply with Section 3 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701u), as amended, the HUD regulations issued pursuant thereto (24 CFR Part 135) as
follows:
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a.
The work to be performed is on a project assisted under a activity providing direct Federal
financial assistance from the Department of Housing and Urban Development and is
subject to the requirements of Section 3 of the Housing and Urban Development Act of
1968, as amended (12 U.S.C. 1701u); Section 3 requires that to the greatest extent feasible,
opportunities for training and employment be given to lower income residents of the project
area and MOUs for work in connection with the project be awarded to business concerns
that are located in or owned in substantial part by persons residing in the area of the project.
b.
The parties to the Developer Agreement to which this exhibit is attached will comply with
the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary
of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules
and orders of the Department issued there under prior to the execution of the Developer
Agreement to which this exhibit is attached.
c.
The contractor will send to each labor organization or representative or workers, with which
he has a collective bargaining MOU or other MOU or understanding, if any, a notice
advertising the said labor organization or workers' representative of his commitments under
this Section 3 clause and will post copies of the notice in conspicuous places available to
employees and applicants for employment or training.
d.
The contractor will include this Section 3 clause in every subcontract for work in connection
with the project and will, at the direction of the applicant or Community of Federal financial
assistance, take appropriate action pursuant to the subcontract upon a finding that the
subcontractor is in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 CFR Part 135. The contractor will not subcontract with any subcontractor
where it has notice or knowledge that the latter has been found in violation of regulations
under 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first
provided it with a preliminary statement of ability to comply with the requirements of these
regulations.
e.
Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135,
and all applicable rules and orders of the Department issued there under prior to the
execution of the Developer Agreement to which this exhibit is attached, will be a condition
of the Federal financial assistance provided to the project.
3.
Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban
Development – Effectuation of Title VI of the Civil Rights Act of 1964.
3.1
The City shall, as a recipient of HUD financial assistance, take reasonable steps to provide meaningful
access to Limited English Proficiency (LEP) persons. This requirement shall extend to the City’s
entire activity regardless of how much HUD assistance is received.
3.2
In order to determine what reasonable steps must be taken to provide meaningful access to LEP
persons, the City should apply HUD’s four-factor analysis.
a.
Identify the number or proportion of LEP persons eligible to be served or likely to be
encountered by the activity or City.
b.
Identify the frequency with which LEP persons come in contact with the activity.
4
c.
Consider the nature and importance of the activity or service provided by the activity to
people’s lives.
d.
Identify the resources available to the City and the costs associated with providing
meaningful access to LEP persons.
3.3
The City must determine what language assistance measures are sufficient for the activity funded
with HUD funds. The City shall have flexibility in addressing the needs of the LEP persons served;
however, this cannot be used to minimize the obligation that the needs be addressed. The City is not
required to take measures that would be a cost burden or cost prohibitive to the City.
3.4
Efforts to take reasonable steps to provide meaningful access to LEP persons must be documented
in the City’s records and be made available upon request.
4.
Section 504. The City agrees to comply with any federal regulations issued pursuant to compliance with
Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against the handicapped in any
federally assisted program.
5.
Subcontracting. All work or services covered by the Developer Agreement to which this exhibit is attached,
which is subcontracted by the City, will be specified by written MOU and subject to all provisions of this
exhibit. All subcontracts must be approved by the City prior to execution.
6.
Interest of Certain Federal Officials. No member of or delegate to the Congress of the United States
shall be admitted to any share or part of the Developer Agreement to which this exhibit is attached or to any
benefit to arise from the same.
7.
Interest of Members, Officers or Employees of the City, Members of Local Governing Body, or
Other Public Officials. No member, officer, or employee of the City or its designees or agents, no member
of the governing body of the locality in which the activity is situated, and no other public official of such
locality or localities who exercises any functions or responsibilities with respect to the activity during his tenure
or for one year thereafter, will have any interest, direct or indirect, in any MOU or subcontract, or the proceeds
thereof, for work to be performed in connection with the Activity assisted under the Developer Agreement
to which this exhibit is attached pursuant to the provisions of 24 CFR 570.611.
8.
Lobbying. HOME Funds shall not be used for publicity or propaganda purposes designed to support or
defeat legislation proposed by federal, state, or local governments or to influence or attempting to influence
an officer or employee of any agency, a member or employee of Congress.
9.
Hatch Act. The City agrees to comply with all provisions of the Hatch Act and that no part of the activity
will involve political activities, nor will personnel employed in the administration of the activity be engaged
in activities in contravention of Title V, Chapter 15, of the United States Code.
10.
Labor Standards Provisions.
10.1
To the extent applicable to the Project, the City agrees to comply with the requirements of the
Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of MOU
Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable federal, state
and local laws and regulations pertaining to labor standards insofar as those acts apply to the
5
performance of the Developer Agreement to which this exhibit is attached. The City agrees to
comply with the Copeland Anti-Kick-Back Act (18 U.S.C. 874 et seq.) and its implementing
regulations of the U. S. Department of Labor at 29CFR Part 5. The City shall maintain
documentation that demonstrates compliance with hour and wage requirements of this part. Such
documentation shall be made available to the Grantee for review upon request.
10.2
To the extent applicable to the Project. the City agrees that, except with respect to the rehabilitation
or construction of residential property containing less than eight (8) units, all contractors engaged
under MOUs in excess of $2,000.00 for construction, renovation or repair work financed in whole
or in part with assistance provided under the Developer Agreement to which this exhibit is attached,
shall comply with federal requirements adopted by the City pertaining to such MOUs and with the
applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1,3,5
and 7 governing the payment of wages and ration of apprentices and trainees to journey workers;
provided that, if wage rates higher than those required under the regulations are imposed by state or
local laws nothing hereunder is intended to relieve the City of its obligation, if any, to require payment
of the higher wage. The City shall cause or require to be inserted in full, in all such MOUs subject
to such regulations, provisions meeting the requirement of this paragraph.
11.
Compliance with Environmental Requirements. The City agrees to comply with any conditions resulting
from the City's compliance with the provisions of the National Environmental Policy Act of 1969 and the
other provisions of law specified at 24 CFR §58.5 insofar as the provisions of such Act apply to activities set
forth in the Statement of Work.
12.
Compliance with Flood Disaster Protection Act.
12.1
The Developer Agreement to which this exhibit is attached is subject to the requirements of the
Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under
the Developer Agreement to which this exhibit is attached is approved for acquisition or construction
purposes as defined under Section 3(a) of said Act, for use in any area identified by the Secretary as
having special flood hazards, which is located in a community not then in compliance with the
requirements for participation in the national flood insurance program pursuant to Section 201(d) of
said Act; and the use of any assistance provided under the Developer Agreement to which this exhibit
is attached for such acquisition or construction in such identified areas in communities then
participating in the national flood insurance program will be subject to the mandatory purchase of
flood insurance requirements of Section 102(a) of said Act.
12.2
Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared, or improved
with assistance provided under the Developer Agreement to which this exhibit is attached shall
contain, if such land is located in an area identified by the Secretary as having special flood hazards
and in which the sale of flood insurance has been made available under the National Flood Insurance
Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the transferee and its
successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance
required with respect to financial assistance for acquisition or construction purposes under Section
102(2) of Flood Disaster Protection Act of 1973. Such provisions will be required notwithstanding
the fact that the construction of such land is not itself funded with assistance under the Developer
Agreement to which this exhibit is attached.
13.
Compliance with Environmental Laws.
13.1
The Developer Agreement attached to this exhibit is subject to the requirements of the Clean Air
Act, as amended, 42 U.S.C. 1857 et seq.; the Federal Water Pollution Control Act, as amended, 33
U.S.C. 1251 et seq.; and the regulations of the Environmental Protection Agency with respect thereto,
at 40 CFR Part 15, as amended from time to time.
6
13.2
In compliance with said regulations, the City will cause or require to be inserted in full in all
Agreements and subcontracts with respect to any nonexempt transaction thereunder funded with
assistance provided under the Developer Agreement to which this exhibit is attached, the following
requirements:
a.
A stipulation by the contractor or subcontractor that any facility to be utilized in the
performance of any nonexempt Agreement or subcontract is not listed on the list of
Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40
CFR §15.20.
b.
Agreement by the contractor to comply with all the requirements of Section 114 of the Clear
Air Act, as amended (42 U.S.C. 1857c-8), and Section 308 of the Federal Water Pollution
Control Act, as amended, (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports,
and information, as well as all other requirements specified in said Section 114 and Section
308, and all regulations and guidelines issued thereunder.
c.
A stipulation that as a condition for the award of the MOU, prompt notice will be given of
any notification received from the director, Office of Federal Activities EPA, indicating that
a facility utilized or to be utilized for the MOU is under consideration to be listed on the
EPA list of Violating Facilities.
d.
Agreement by the contractor that he will include or cause to be included the criteria and
requirements in paragraphs (a) through (d) of this section in every nonexempt subcontract
and requiring the contractor to take such action as the Government may direct as means of
enforcing such provisions.
e.
In no event will any amount of the assistance provided under the Developer Agreement
attached to this exhibit be utilized with respect to a facility that has given rise to a conviction
under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution
Control Act.
13.3
The Resource Conservation and Recovery Act. The City will comply with the Resource Conservation
and Recovery Act (“RCRA”), including, but not limited to, 42 U.S.C. § 6962, which requires
preference be given in procurement programs to the purchase of specific products containing
recycled materials identified in guidelines developed by the Environmental Protection Agency
(“EPA”) (40 CFR Parts 247 through 252).
13.4
The Toxic Substances Control Act. The City will comply with the Toxic Substances Control Act
(“TSCA”), 15 U.S.C. §2601 et seq.
13.5
The Federal Insecticide, Fungicide and Rodenticide Act. The City will comply with the Federal
Insecticide, Fungicide and Rodenticide Act (“FIFRA”), 7 U.S.C. §136 et seq.
13.6
The City will comply with all other applicable federal and state environmental laws and regulations,
including, but not limited to, §6002 of the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act (“RCRA”) (Pub. L. 94-580, 42 U.S.C. §6962). Section 6962 requires
that preference be given in procurement programs to the purchase of specific products containing
recycled materials identified in guidelines developed by the Environmental Protection Agency
(“EPA”) (40 CFR Parts 247 through 252). Accordingly, state and local institutions of higher
7
education, hospitals, commercial organizations and international organizations when operating
domestically, and non-profit organizations that receive direct Federal awards or other Federal funds
will give preference in their procurement programs funded with Federal funds to the purchase of
recycled products pursuant to the EPA guidelines.
14.
Historic Preservation. The Developer Agreement attached to this exhibit is subject to the requirements of
P.L. 89-665, the Archaeological and Historic Preservation Act of 1974 (P.L. 93-291), Executive Order 11593,
and the procedures prescribed by the Advisory Council on Historic Preservation in 36 CFR Part 800. The
City must take into account the effect of a project on any district, site, building, structure, or object listed in
or found by the Secretary of the Interior, pursuant to 35 CFR Part 800, to be eligible for inclusion in the
National Register of Historic Places, maintained by the National Park Service of the U. S. Department of the
Interior, and must make every effort to eliminate or minimize any adverse effect on a historic property.
15.
Historic Barriers. The Developer Agreement attached to this exhibit is subject to the requirements of the
Architectural Barriers Act of 1968 (42 U.S.C. 4151) and its regulations. Every building or facility (other than
a privately owned residential structure) designed, constructed, or altered with HOME funds must comply
with requirements of the "American Standards Specifications for Making Buildings and Facilities Accessible
to, and Usable by, the Physically Handicapped.”
16.
Lead-Based Paint. The Developer Agreement attached to this exhibit is subject to the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821 et seq.), and Lead-Based Paint Regulations (24CFR Part 35 and 24
CFR §570.608 and/or 92.335), and related amendments thereto. The use of lead-based paint is prohibited
whenever federal funds are used directly or indirectly for the construction, rehabilitation, or modernization
of residential structures. All federally assisted residential structures and related property constructed prior to
1978, Homebuyer Programs, Tenant-Based Rental Assistance, and Special-Needs Housing (acquisition), will
comply with existing and new Lead-Based Paint Hazard Reduction Requirements, effective September 15,
2000. As the Grantor or Participating Jurisdiction, the City of Glendale shall be consulted regarding the
compliance status.
17.
Acquisition/Relocation. The Developer Agreement attached to this exhibit is subject to providing a
certification that, if applicable, it 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 at 49 CFR Part 24, and 24 CFR Part 511.14 and 570.606, which govern the acquisition of real
property for the project and provision of relocation assistance to persons displaced as a direct result of
acquisition, rehabilitation, or demolition for the project.
18.
Property Disposition. Real or personal property purchased in whole or in part with HOME funds shall not
be disposed through sale, use, or location without the written permission of the City and/or HUD as
applicable. The proceeds from the disposition of real property will be considered Program Income and
subject to 24 CFR §570.504(c).
19.
Debarment, Suspension, Ineligibility and Voluntary Exclusion.
19.1
In order to participate in the Developer Agreement to which this exhibit is attached, the City must
certify that it and/or its owners/officers have not been debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from covered transactions by a federal
department or agency.
19.2
The City, shall include without modification the Certification language, entitled “Certification
Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion – Lower Tier Covered
8
Transactions” with all subgrantees or other contractors; in all lower tier covered transactions and in
all solicitations for lower tier covered transactions in accordance with 45 CFR part 76.
19.3
If the City is unable to comply with this requirement, an explanation shall be immediately provided
to the City.
20.
Federal Fire Prevention and Control Act of 1992. The Fire Administration Authorization Act of 1992
added a new Section 31 to the Federal Fire Prevention and Control Act of 1974. This Section requires that
approved smoke detectors be installed in all houses assisted under the Community Development Block Grant
Program. To comply with this requirement and locally adopted codes City shall install smoke detectors in all
sleeping areas and any hallway connecting these sleeping areas.
1
EXHIBIT J
ADDITIONAL REQUIREMENTS
See attached requirements:
1.
Procurement
2.
Disputes/Grievance Procedure
3.
Right to Refuse Service
1
PROCUREMENT
1.
The Recipient agrees to cause Developer to comply with federal procurement requirements and the
City’s procurement code for all expenditures of funds. Below is an overview of the procurement
requirements.
1.1
Purchases over $50,000 must be publicly bid.
1.2
Purchases between $10,001 and $50,000 must follow competitive purchasing procedures
based on written quotations.
1.3
Purchases of $5,000 to $10,000, whenever practical, must be based on oral quotations, with
file documentation of vendors contacted and quotations received.
1.4
Purchases under $5,000 do not require written or oral quotations.
1.5
Expenditures for employee salaries or items such as client subsidies would not generally be
subject to procurement requirements. (Such items do not generally constitute purchases.)
2.
The Recipient agrees to cause Developer to adopt a written procurement policy that, at a minimum,
complies with the above procurement requirements, and to follow accounting procedures that will
assure compliance with federal and city procurement codes.
3.
The Recipient further agrees to cause Developer to retain sufficient supporting documentation to
demonstrate compliance with these requirements. Examples include, but are not limited, to the
following:
3.1
Copies of bid documents;
3.2
Written quotations; and
3.3
Evidence of oral quotations.
###
1
DISPUTES/GRIEVANCE PROCEDURE
1.
The Recipient agrees to cause Developer negotiate and resolve any disputes in the delivery of
activities stated herein and will inform the City in writing of such negotiations and resolutions.
2.
In the event the issue is not resolved, the City will confer with all parties to understand the issue, if
appropriate, offer guidance, and try and reach an amicable solution.
###
1
RIGHT TO REFUSE SERVICE
The City reserves the right to refuse, terminate, or suspend service or accounts to an individual, company, or
agency, if the City believes that conduct or actions violate applicable law, is harmful to the interests of the
City of Glendale and its affiliates, or meets the criteria covered under City’s Right to Refuse Assistance Policy.
Legal counsel will be consulted before such action is undertaken, unless an emergency exists.
###
1
EXHIBIT K
INSURANCE CERTIFICATE
(See attached)
25976906v3