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Page 1 of 51 Newtown CDC CHDO Agreement AGREEMENT FOR SERVICES BETWEEN MARICOPA COUNTY HUMAN SERVICES DEPARTMENT AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION Agreement Amount: $443,507 Agreement Start Date: October 1, 2021 Agreement Termination Date: September 30, 2024 Agreement Number: CFDA Number: 14.239, HOME Investment Partnerships Program Newtown DUNS No.: 022225143 This Agreement (“Agreement”) is entered into by and between Newtown Community Development Corporation, a Community Housing Development Organization (the “CHDO”) and Maricopa County Human Services Department, (“County”). The CHDO and the County are collectively referred to herein as the “Parties” and individually as a “Party.” The County shall provide financial reimbursement in an amount not to exceed Four hundred forty- three thousand five hundred and seven dollars ($443,507) subject to the terms of this Agreement and availability of funds. This Agreement amount constitutes the County’s entire participation and obligation in the performance and completion of all work to be performed under this Agreement. The CHDO and the County for and in consideration of the covenants and conditions set forth in this Agreement shall provide and perform the services set forth herein. All rights and obligations of the Parties shall be governed by the terms of this Agreement, its exhibits, attachments, and appendices, including any Subcontracts, Amendments, or Change Orders as set forth herein and in: Section 1 – General Provisions Section 2 – Special Provisions Section 3 – Work Statement Section 4 – Budget and Compensation Section 5 – Attachments Lead Agency: Maricopa County Representative: Rachel Milne, Assistant Director, Housing and Community Development Division Phone: 602-372-1528 E-mail: Rachel.Milne@maricopa.gov Address: 234 N. Central Avenue, Third Floor, Phoenix, AZ 85004 CHDO: Newtown Community Development Corporation Representative: Stephanie Brewer, Executive Director Phone: 480-517-1589 E-mail: Stephanie@newtowncdc.org Address: 2106 E. Apache Blvd, Tempe, AZ 85281 Notice under this Agreement shall be given by either personal delivery or by registered or certified mail, postage prepaid and return receipt requested, to the persons at the addresses set forth Page 2 of 51 Newtown CDC CHDO Agreement above and shall be effective upon receipt if personally delivered and three (3) business days after being placed in the U.S. mail, properly addressed, with sufficient postage, if sent by registered or certified mail. Business days means Monday through Friday, unless recognized as a federal or State of Arizona holiday. This Agreement contains all the terms and conditions agreed to by the Parties. No other understanding, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any Party hereto. Nothing in this Agreement shall be construed as consent to any lawsuit or waiver of any defense in a lawsuit brought against the State of Arizona, Maricopa County, the CHDO in any State or federal court. IN WITNESS THEREOF, the Parties have signed this Agreement: APPROVED BY: MARICOPA COUNTY Jack Sellers Date Chairman, Board of Supervisors APPROVED BY: NEWTOWN CDC COMMUNITY DEVELOPMENT CORPORATION Stephanie Brewer Date Attested to: Clerk, Board of Supervisors Date In accordance with A.R.S. §§ 11-952, 11-201, and 11-251, this Agreement has been reviewed by the undersigned Deputy County Attorney and has determined that this Agreement is proper in form and within the power and authority granted under the laws of the State of Arizona. Approved as to form: Deputy County Attorney Date Page 3 of 51 Newtown CDC CHDO Agreement SECTION 1 GENERAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Section 1 General Provisions Page 4 of 51 Newtown CDC CHDO Agreement 1.0 PURPOSE The County shall provide the CHDO with U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program funds for the provision of HOME activities as identified in Section 3 Work Statement. 2.0 TERM The Term of this Agreement shall commence upon the signature of the last signer (“Agreement Start Date”) and terminate on the Agreement Termination Date listed on page 1 of this Agreement. 3.0 RENEWAL This Agreement may be renewed by a written amendment provided the CHDO is in full compliance with all terms and conditions of this Agreement. Under A.R.S. § 11-952, no renewal may exceed the duration of the previous agreement. The County shall notify the CHDO in writing of its intent to extend the Agreement term at least thirty (30) calendar days prior to the expiration of the original Agreement term, or any additional terms thereafter. 4.0 AMENDMENTS All Amendments to this Agreement shall be in writing and signed by authorized signers for both Parties. 5.0 TERMINATION 5.1 Pursuant to A.R.S. § 38-511, the County may cancel this Agreement without penalty or further obligation within three years after execution of this Agreement, if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the County is at any time while this Agreement or any extension of this Agreement is in effect, is or becomes an employee or agent of any other party to this Agreement in any capacity or consultant to any other party to this Agreement with respect to the subject matter of this Agreement. Additionally, pursuant to A.R.S. § 38-511, the County may recoup any fee or commission paid or due to any person significantly involved in initiating, negotiating, securing, drafting, or creating this Agreement on behalf of the County from any other party to this Agreement arising as the result of this Agreement. A cancellation notice made under this section shall be effective when the recipient receives a written notice of cancellation unless the notice specifies a later date. 5.2 A Party may terminate this Agreement at any time by giving the other Parties at least sixty (60) calendar days prior notice in writing (unless terminated by the County under the Availability of Funds provision). The notice shall be given by either personal delivery or by registered or certified mail, postage prepaid and return receipt requested to the persons at the addresses set forth on page 2 of this Agreement. 5.3 The County has the right to terminate this Agreement upon twenty-four (24) hour notice when the County deems the health or welfare of the service recipients are endangered or the CHDO’s non-compliance jeopardizes funding source financial participation. If not terminated by one of the above methods, then this Agreement will terminate upon the expiration of the Term of this Agreement stated on page 1 of this Agreement. 5.4 In accordance with 2 C.F.R. Part 200, Subpart D, the County may suspend or terminate this Agreement if the CHDO violates any term or condition of this Agreement or if the CHDO fails to maintain a good faith effort to carry out the purpose of this Agreement. Section 1 General Provisions Page 5 of 51 Newtown CDC CHDO Agreement 5.5 The Parties may terminate this Agreement for convenience in accordance with 2 C.F.R. Part 200, Subpart D. The Parties shall agree upon the termination conditions including the effective date of the termination. The Party initiating the termination shall notify the other Parties in writing stating the reasons for such termination. 6.0 EFFECT To the extent that the Special Provisions are in conflict with the General Provisions, the Special Provisions shall control. To the extent that the Work Statement is in conflict with the General Provisions or the Special Provisions, the Work Statement shall control. To the extent that the Compensation Provisions are in conflict with the General Provisions, Special Provisions, or Work Statement, the Compensation Provisions shall control. Nothing in this Agreement shall operate to increase the Operating Budget without a written amendment to this Agreement. 7.0 DEFINITIONS As used throughout this Agreement, the following terms shall have the following meanings: 7.1 Annual Action Plan means the annual plan submitted by the County as the lead agency of the Maricopa HOME Consortium that describes the Consortium’s annual program goals. 7.2 Assistant Director means the Director of the Housing and Community Development Division within the Human Services Department. 7.3 Beneficiary means a person or household that meets the income requirements of 24 C.F.R. § 92.203 subject to the restriction on assistance to students enrolled in an institution of higher education, as described in 24 C.F.R. § 5.612. 7.4 Board of Supervisors (BOS) means the Maricopa County Board of Supervisors. 7.5 CHDO is a community housing development organization, a private non-profit organization that meets organization that meets the requirements under 24 C.F.R. part 92.300 listed on the Cover Page of this Agreement. 7.6 CHDO Project Proceeds means funds resulting from the sale of CHDO developed homeownership housing; permanent financing of a CHDO project that is used to pay off a CHDO-financed construction loan; the principal and interest payments from a loan to a buyer of CHDO-developed homeownership housing; or sale of CHDO- sponsored rental housing to a second non-profit. For purposes of this Agreement, CHDO may retain project proceeds for use in HOME eligible or other housing activities which benefit low-income families, as required by 24 C.F.R. § 92.300. CHDO proceeds which are retained by the CHDO are not subject to the requirements of the HOME regulations unless the funds are recaptured because the housing no longer meets the affordability requirements. Once the CHDO proceeds are used, there are no further HOME requirements. 7.7 Commitment or Commit to a Specific Local Project shall have the same meaning as set forth in 24 C.F.R. § 92.2 (1) and (2), respectively. 7.8 County means Maricopa County by and through its Human Services Department. 7.9 Department means Lead Agency or Maricopa County Human Services Department, Housing & Community Development Division as Lead Agency. 7.10 Developer/Subcontractor means a non-profit or for-profit organization carrying out HOME related project activities as described in the written agreement between the County and the Developer. 7.11 Director means the Director of the Maricopa County Human Services Department. 7.12 Division means the Housing & Community Development Division of the Human Services Department. Section 1 General Provisions Page 6 of 51 Newtown CDC CHDO Agreement 7.13 Five Year Consolidated Plan means the HUD required Consolidated Plan submitted by the County as the Lead Agency for the Maricopa HOME Consortium. 7.14 HOME means HOME Investment Partnerships Program. 7.15 HUD means U.S. Department of Housing and Urban Development. 7.16 Lead Agency or Department means Maricopa County Human Services Department, Housing and Community Development Division. 7.17 Low-income families means families whose annual incomes do not exceed 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. An individual does not qualify as a low-income family if the individual is a student who is not eligible to receive Section 8 assistance under 24 C.F.R. § 5.612. 7.18 Minority Business Enterprise (MBE) means an entity which is majority owned or controlled by a socially and economically disadvantaged individual as described by Public Law 95-507. 7.19 Net Proceeds means the amount remaining after deducting non-HOME debt and closing costs from the sale of a HOME funded asset, obligation, or loan. 7.20 Performance Bond means a bond executed to secure fulfillment of all of the CHDO's obligations under this Agreement. 7.21 Project means rehabilitation or new construction as described in a legally binding agreement between the CHDO and the prospective owners or beneficiaries of the HOME funds for which all necessary financing has been secured and budgeted and for which an acquisition, construction and/or rehabilitation schedule has been established, and underwriting has been completed and otherwise complies with 24 C.F.R. § 92.2(2) and 92.2 (A) and (B). 7.22 Public Agency has the meaning prescribed by A.R.S. § 11-951. 7.23 Subcontract means any agreement entered into by the CHDO with a third party for professional services performance of any of the work or provision of any of the services covered by this Agreement. 7.24 Subcontractor means an entity funded through the CHDO to provide any work or services required by the Work Statement. 7.25 Vendor means an entity funded through the CHDO to provide services required by the Work Statement. 7.26 Work Statement means the section of this Agreement that contains a description of services to be delivered pursuant to this Agreement. 7.27 Women’s Business Enterprise (WBE) means an entity in which a woman has majority ownership and control. 8.0 GENERAL REQUIREMENTS 8.1 The terms of this Agreement shall be construed in accordance with Arizona law and the applicable laws and regulations of the United State Department of Housing and Urban Development (HUD). Any lawsuit arising out of this Agreement shall be brought in the appropriate court in Maricopa County, Arizona. 8.2 The CHDO shall, without limitation, obtain and maintain all licenses, permits and authority necessary to do business, render services and perform work under this Agreement, and shall comply with all laws regarding unemployment insurance, disability insurance and worker's compensation. Section 1 General Provisions Page 7 of 51 Newtown CDC CHDO Agreement 8.3 The CHDO is an independent contractor in the performance of work and the provision of services under this Agreement and is not to be considered an officer, employee or agent of the County. 8.4 The CHDO shall comply with the regulations prohibiting a conflict of interest. The CHDO shall not make any payments, either directly or indirectly, to any person, partnership, corporation, trust, or other organization that has a substantial interest in CHDO's organization or with which the CHDO (or any of its directors, officers, owners, trust certificate holders, or a relative thereof) has a substantial interest, unless the CHDO has made full written disclosure of the proposed payments to the County and has received written approval for the payments. 8.5 For purposes of this provision, the terms "substantial interest" and "relative" shall have the meanings prescribed by A.R.S. § 38-502. 9.0 ACCEPTANCE OF FUNDS The CHDO hereby accepts the award of funds under the terms of this Agreement and agrees to execute and return this Agreement to the County within 30 calendar days of receipt unless the CHDO receives a written waiver of this requirement by the County. 10.0 ASSIGNMENT AND SUBCONTRACTING No right, liability, obligation, or duty under this Agreement may be assigned, delegated, or subcontracted, in whole or in part, without the prior written approval of the County. The CHDO shall bear all liability under this Agreement, even if it is assigned, delegated, or subcontracted, in whole or in part, unless the County agrees otherwise. 11.0 AVAILABILITY OF FUNDS 11.1 The provisions of this Agreement relating to the payment for services shall become effective when funds assigned for the purpose of compensating the CHDO, as provided herein, are actually available to the County for disbursement. The County shall be the sole authority in determining the availability of funds under this Agreement and the County shall keep the CHDO fully informed as to the availability of funds. 11.2 If any action is taken by any State agency, federal department, or any other agency or instrumentality to suspend, decrease, or terminate its fiscal obligation under, or in connection with this Agreement, the County may amend, suspend, decrease, or terminate its obligations under or in connection with this Agreement. In the event of termination, the County shall be liable for payment only for services rendered prior to the effective date of the termination, provided that such services performed are in accordance with the provisions of this Agreement. The County shall give written notice of the effective date of any suspension, amendment, or termination under this section at least ten (10) calendar days in advance. 12.0 BUDGET ADJUSTMENTS 12.1 Any requests for reasonable budget adjustments shall be submitted ninety (90) calendar days prior to the Termination Date of this Agreement. Requests for financial adjustments to this Agreement shall be supported by appropriate documentation. If the County agrees to the budget adjustments, the County shall follow Paragraph 4.0 above. 12.2 The CHDO must receive prior written approval from the County to move funds from one budget line item to another. Budget adjustments that do not change the total Agreement amount may be documented by an Administrative Change Order approved and fully executed by the Chairman of the Board of Supervisors and the Section 1 General Provisions Page 8 of 51 Newtown CDC CHDO Agreement CHDO’s authorized Representative and defined in Section 2 (Special Provisions), Paragraph 18.1. If a budget adjustment is necessary that either increases or decreases the Agreement amount, then the County shall follow Section 1 (General Provisions), Paragraph 4.0 (Amendments) of this Agreement to amend the Agreement. 13.0 DISPUTES 13.1 Except as may otherwise be provided for in this Agreement, any dispute arising out of this Agreement that is not resolved between the Parties within a reasonable period of time, which shall not exceed one hundred twenty (120) calendar days, shall be submitted in accordance with the following dispute resolution process. 13.2 If a dispute cannot be resolved informally, then the CHDO shall notify the Department in writing by mailing notice of the dispute to the Assistant Director within ten (10) business days from expiration of the informal dispute resolution process described in Subparagraph 13.1 above. 13.3 The Assistant Director shall respond in writing to the CHDO within fourteen (14) business days. The decision of the Assistant Director shall be final and conclusive unless, within seven (7) business days from the date the CHDO is served with the decision, the CHDO files a written notice of appeal with the Human Services Department Director. 13.4 The Human Services Director shall provide the CHDO with a written response within fourteen (14) business days following receipt of the notice of appeal. The decision of the Director shall be final and not appealable. 13.5 Pending a final decision of the Director, the CHDO shall proceed diligently with its performance of this Agreement in accordance with the Assistant Director’s decision. 14.0 SEVERABILITY Any provision of this Agreement that is determined to be invalid, void, or illegal by a court shall in no way affect, impair, or invalidate any other provision hereof, and the remaining provisions shall remain in full force and effect. 15.0 STRICT COMPLIANCE The County’s acceptance of the CHDO’s performance that is not in strict compliance with the terms of this Agreement shall not be deemed to waive the requirements of strict compliance for all future performance. All changes in performance obligations under this Agreement shall be in writing and signed by both Parties. 16.0 NON-LIABILITY The County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions shall not be liable for any act or omission by the CHDO, or Vendor or any agent, representative, official, officer, director, employee, volunteer, department, agency, board, or commission of the CHDO, or Vendor occurring in the performance of this Agreement, nor shall the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions be liable for purchases or contracts made by the CHDO, Vendor or any agent, representative, official, officer, director, employee, volunteer, department, agency, board, or commissions of the CHDO, or the Vendor, in connection with this Agreement. Section 1 General Provisions Page 9 of 51 Newtown CDC CHDO Agreement 17.0 INDEMNIFICATION To the extent permitted by law, the CHDO shall, and shall cause any of its Subcontractors, to indemnify, defend, save and hold harmless the County, any jurisdiction or agency issuing any permits for any work arising out of this Agreement, and their respective agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions (hereafter referred to as “Indemnitee”) from and against any and all claims, demands, actions, liabilities, damages, losses, judgments, or expenses (including court costs, attorney and expert fees, and costs of claim processing, investigation, and litigation) (hereafter referred to as “Claims”): A.) that either directly or indirectly are caused by, arise from, or relate to breach of this Agreement by the CHDO, and any of its Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, or commissions of the CHDO, and any of its Subcontractors; and B.) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property that are either directly or indirectly caused by, arise from, or relate to, or are alleged to be caused by, arise from, or relate to, in whole or in part, the negligent or willful acts or omissions of the CHDO, and any of its Subcontractors, or any of the agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, or commissions of the CHDO, and any of its Subcontractors. This indemnity includes any claim or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of the CHDO, or any of its Subcontractors to conform to any federal, state or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the Parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by the CHDO and any of its Subcontractors from and against any and all claims. It is agreed that the CHDO, and any of its Subcontractors, will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. 18.0 TECHNICAL ASSISTANCE The County shall provide reasonable technical assistance to the CHDO to assist in complying with state and federal laws, regulations, and accountability for diligent performance and compliance with the terms and conditions of this Agreement and all applicable laws, regulations, and standards. However, this assistance in no way relieves the CHDO of full responsibility and accountability for its actions and performance in compliance with the terms of this Agreement. 19.0 SINGLE AUDIT ACT REQUIREMENTS The CHDO is subject to the federal audit requirements of the Single Audit Act of 1984, as amended (Pub. L. No. 98-502) (codified at 31 U.S.C. §§ 7501, et seq.). The CHDO shall comply with 2 C.F.R. Part 200. Upon completion, such audits shall be made available for public inspection. Audits shall be submitted within the twelve (12) months following the close of the fiscal year. The CHDO shall take corrective actions within six (6) months of the date of receipt of the reports. The County shall consider sanctions as described in 2 C.F.R. § 200.505 if it is determined by HUD or the County that the CHDO is not in compliance with the audit requirements. 20.0 AUDIT DISALLOWANCES 20.1 The CHDO shall, upon written notice, reimburse the County for any payments made under this Agreement that are disallowed by a federal, State or County audit in the amount of the disallowance. Court costs and attorney and expert fees incurred will Section 1 General Provisions Page 10 of 51 Newtown CDC CHDO Agreement be specifically identified as applicable to the recovery of the disallowed costs in question. 20.2 If the County determines that a cost for which payment has been made is a disallowed cost, the County will notify the CHDO in writing of the disallowance and the required course of action, which shall be at the option of the County, either to adjust any future claim submitted by the CHDO by the amount of the disallowance or to require immediate repayment of the disallowed amount by the CHDO issuing a check payable to the County. 21.0 STAFF AND VOLUNTEER TRAINING The County may make available to the CHDO the opportunity to participate in any applicable training activities conducted by the County. 22.0 CLEAN AIR ACT If the total face value of this Agreement exceeds $100,000, the CHDO agrees to comply with all regulations, standards, and orders issued pursuant to the Clean Air Act of 1970, as amended (42 U.S.C. §§ 7401, et seq.), to the extent any are applicable by reason of performance of this Agreement. 23.0 LOBBYING 23.1 No federal appropriated funds have been paid or will be paid by or on behalf of the CHDO to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. 23.2 If any funds, other than federal appropriated funds, have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with any federal contract, grant, loan or cooperative agreement, the CHDO and the Administrator shall complete and submit OMB Form-LLL, titled "Disclosure of Lobbying Activities," in accordance with its instructions and 31 U.S.C. § 1352. 24.0 RELIGIOUS ACTIVITIES The CHDO warrants that none of its costs and none of the costs incurred by any Vendor or its Subcontractors will include any expense for any religious activity. 25.0 POLITICAL ACTIVITY PROHIBITED None of the funds, materials, property, or services contributed by the County or the CHDO or any Subcontractor under this Agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for public office. 26.0 COVENANT AGAINST CONTINGENT FEES The CHDO warrants that no person or entity has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. For breach or violation of this warranty, the County may immediately terminate this Agreement without liability. Section 1 General Provisions Page 11 of 51 Newtown CDC CHDO Agreement 27.0 SAFEGUARDING OF PARTICIPANT INFORMATION 27.1 The CHDO shall observe and abide by all applicable State of Arizona and federal statues, rules, and regulations regarding the use or disclosure of information including, but not limited to, information concerning applicants for and recipients of contracted services. To the extent permitted by law, the CHDO shall release information to the County, Department, Attorney General’s Office, or other designated agency as required by the County by the terms of this Agreement or by law. 27.2 The CHDO shall comply with the requirements of the Arizona Address Confidentiality Program, A.R.S. §§ 41-161, et seq. The Department will advise the CHDO as to applicable policies and procedures adopted for such compliance. 28.0 RIGHTS IN DATA The Parties shall have the use of data and reports resulting from this Agreement without cost or other restriction, except as otherwise provided by law or applicable regulation. The Parties shall supply to the other Parties, upon request, any available information that is relevant to this Agreement and to the performance hereunder it. 29.0 COPYRIGHTS If this Agreement results in a book or other written material, the author is free to copyright the work, but the County reserves a royalty-free, nonexclusive, perpetual, and irrevocable license to reproduce, publish, and otherwise use, and to authorize others to use all copyrighted material and all material that can be copyrighted as a result of this Agreement. 30.0 PATENTS Any discovery or invention arising out of, or developed in the course of, work aided by this Agreement shall be promptly and fully reported to the County for determination as to whether patent protection on such invention or discovery shall be sought and how the rights in the invention or discovery, including rights under any patent issued thereon, shall be disposed of and administered in order to protect the public interest. 31.0 AGREEMENT COMPLIANCE MONITORING/AUDITING 31.1 The County will monitor the CHDO’s compliance for fiscal and programmatic performance under the terms and conditions of this Agreement and applicable regulations promulgated by the HUD and Maricopa County. On-site visits for compliance monitoring may be made by either the County or its grantor agencies (or by both the County and its grantor agencies) at any time during the CHDO’s normal business hours, announced or unannounced. For auditing purposes, the County shall provide the CHDO with a 30-day advance notice of proposed on-site visit. During an on-site visit, the CHDO shall make all of their records and accounts related to work performed under this Agreement available to the County for inspection and copying. 31.2 The County shall request information for fiscal monitoring/audit per Office of Management and Budget (OMB) Uniform Guidance 2 C.F.R. § 200, to include: 31.2.1 Financial Management 2 C.F.R. § 200.302 31.2.2 Internal Controls 2 C.F.R. § 200.303 31.2.3 Bonds 2 C.F.R. § 200.304 31.2.4 Payment and Financial Reporting 2 C.F.R. § 200.305 31.2.5 Cost Sharing or Matching 2 C.F.R. § 200.306 31.2.6 Program Income 2 C.F.R. § 200.307 31.2.7 Revision of Budget and Program Plans 2 C.F.R. § 200.308 Section 1 General Provisions Page 12 of 51 Newtown CDC CHDO Agreement 31.2.8 Period of Performance 2 C.F.R. § 200.309 31.2.9 Insurance Coverage 2 C.F.R. § 200.310 31.2.10 Record Retention and Access 2 C.F.R. §§ 200.334 – 200.338 31.2.11 Procurement Standards 2 C.F.R. § 200.318 31.2.12 Indirect Costs 2 C.F.R. § 200.414 31.2.13 Compensation-Personal Services 2 C.F.R. § 200.430 31.2.14 Audit Requirements 2 C.F.R. §§ 200.501-200.517 32.0 CONTINGENCY RELATING TO OTHER CONTRACTS AND GRANTS 32.1 The CHDO shall, during the term of this Agreement, within 15 business days from acceptance, inform the Assistant Director in writing of the award of any other agreement or grant, including any other agreement or grant awarded by the County, where the award may affect either the direct or indirect costs being paid or reimbursed under this Agreement. The CHDO’s failure to notify the County of any such agreement shall be a breach of this Agreement and the County may immediately terminate this Agreement without liability. 32.2 The Assistant Director may request, and CHDO shall provide within a reasonable time, which shall not exceed ten (10) business days, a copy of all such other agreements or grants, when, in the opinion of the Assistant Director, the award of the agreement or grant may affect the costs being paid or reimbursed under this Agreement. 32.3 If the Assistant Director determines that the award to the CHDO of such other agreements or grants has affected the costs being paid or reimbursed under this Agreement, then the Assistant Director shall prepare an amendment to this Agreement effecting a cost adjustment. If the CHDO disputes the proposed cost adjustment, then the dispute shall be resolved pursuant to the "Disputes" paragraph of this Agreement, the dispute shall be resolved pursuant to the "Disputes" section contained herein. 33.0 MINIMUM WAGE REQUIREMENTS The CHDO warrants that it shall pay all of their employees who are engaged in either performing work or providing services under the terms of this Agreement not less than the minimum wage specified under Section 206(a)(1) of the Fair Labor Standards Act of 1938, as amended (29 U.S.C. §§ 201, et seq.), by law and regulation, and, as applicable, Executive Order 13658, as amended, and as specified by Arizona law. 34.0 RECOGNITION OF DEPARTMENT SUPPORT The CHDO will give recognition to the County and the funding source for their support when the CHDO publishes materials that are (or releases of public information that is) paid for either in whole or in part with funds received by the CHDO under this Agreement. 35.0 INSURANCE 35.1 The CHDO, shall and shall cause any of its Subcontractors to purchase and maintain the minimum insurance stipulated in this Agreement from a company or companies duly licensed by the State of Arizona and possessing a current A.M. Best, Inc. rating of B++6 or higher. In lieu of State of Arizona licensing, the stipulated insurance may be purchased from a company which is or companies which are authorized to do business in the State of Arizona, provided that such insurance company or companies meet the approval of the County. The form of any insurance policies and forms must be acceptable to the County. Section 1 General Provisions Page 13 of 51 Newtown CDC CHDO Agreement 35.2 All insurance required under this Agreement shall be maintained in full force and effect until all work or service required to be performed under the terms of the Agreement is satisfactorily completed and formally accepted. Failure to do so may, at the sole discretion of the County, constitute a material breach of this Agreement. 35.3 The CHDO’s insurance shall be primary insurance as respects the County, and any insurance or self-insurance maintained by the County shall not contribute to it. 35.4 Any failure to comply with the claim reporting provisions of the insurance policies or any breach of an insurance policy warranty shall not affect coverage afforded under the insurance policies to protect the County. 35.5 The insurance policies may provide coverage that contains deductibles or self- insured retentions. Such deductible or self-insured retentions (or both) shall not be applicable with respect to the coverage provided to the County under those policies. The CHDO shall be solely responsible for the deductible and self-insured retention and the County, at its option, may require the CHDO to secure payment of such deductibles or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit. 35.6 The County reserves the right to request and to receive, within 10 business days, certified copies of any or all of the insurance certificates required under this Agreement. The County shall not be obligated to review policies and endorsements or to advise the CHDO of any deficiencies in such policies and endorsements, and such receipt shall not relieve the CHDO from, or be deemed a waiver of the County’s right to insist on strict fulfillment of the CHDO’s obligations under this Agreement. 35.7 The insurance policies required by this Agreement, except Worker’s Compensation, shall name the County, its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions as Additional Insureds. 35.8 The policies required under this Agreement, except Worker’s Compensation, shall contain a waiver of transfer of rights of recovery (subrogation) against the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, board, and commissions for any claims arising out of the CHDO’s work or service. 35.9 The CHDO's policies shall stipulate that the insurance afforded the CHDO shall be primary insurance and that any insurance carried by the County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions shall be excess and not contributory insurance, as provided by A.R.S. § 41-621. 35.10 Coverage provided by the CHDO shall not be limited to the liability assumed under the indemnification provisions of this Agreement. 35.11 Commercial General Liability: Commercial General Liability insurance and, if necessary, Commercial Umbrella insurance with a limit of not less than $2,000,000 for each occurrence, $2,000,000 Products/Completed Operations Aggregate, and $4,000,000 General Aggregate Limit. The policy shall include coverage for premises liability, bodily injury, broad form property damage, personal injury, products and completed operations and blanket contractual coverage, and shall not contain any provisions which would serve to limit third party action over claims. There shall be no endorsement or modifications of the CGL limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage. 35.12 Worker’s Compensation: 35.12.1Worker’s Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of the CHDO’s employees engaged in Section 1 General Provisions Page 14 of 51 Newtown CDC CHDO Agreement the performance of the work or services under this Agreement; and Employer’s Liability insurance of not less than $1,000,000 for each accident, $1,000,000 disease for each employee, and $1,000,000 disease policy limit. 35.12.2CHDO waives all rights against County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions for recovery of damages to the extent these damages are covered by the Worker’s Compensation and Employer’s Liability or commercial umbrella liability insurance obtained by the CHDO pursuant to this Agreement. 35.13 Sexual Molestation and Physical Abuse: 35.13.1When services involve working with children, elderly, or disabled individuals, the insurance requirements in the (sub)contract must include coverage for "sexual molestation and physical abuse." Coverage for this type of claim, or allegation, is excluded from standard general liability policies. Therefore, CHDOs whose services include working with or caring (or both) for children/elderly and disabled persons should have their policies specifically endorsed to include this coverage. 35.13.2The policy shall be endorsed to include coverage for sexual molestation and physical abuse at limits not less than $2,000,000.00 per occurrence and $4,000,000.00 aggregate. These limits may be included within a General Liability policy, Professional Liability policy or provided by separate endorsement with its own limits as required. CHDO and its Subcontractors must provide the following statement on their Certificate(s) of Insurance: “Sexual molestation and physical abuse coverage is included.” Policies/certificates stating that “Sexual molestation and physical abuse coverage is not excluded” do not meet this requirement. 35.14 Certificates of Insurance: Upon execution of this Agreement, the CHDO shall, and shall cause any of its Subcontractors, to furnish the County with valid and complete certificates of insurance, or formal endorsements as required by the Agreement, issued by the CHDO’s insurer(s), as evidence that policies providing the required coverage, conditions and limits required by this Agreement are in full force and effect. Such certificates shall identify this Agreement by number and title. 35.15 Prior to commencing either work or services under this Agreement, the CHDO shall have insurance in effect as required by the Agreement in the form provided by the County, issued by the CHDO’s insurer(s), as evidence that policies providing the required coverage, conditions and limits required by this Agreement are in full force and effect. Such certificates shall be made available to the County with ten (10) business days after a request by the County. BY SIGNING THIS AGREEMENT, THE CHDO AGREES TO THIS REQUIREMENT AND THAT FAILURE TO MEET THIS REQUIREMENT WILL RESULT IN CANCELLATION OF THIS AGREEMENT. 35.16 In the event any insurance policy(ies) required by this Agreement is (are) written on a “claims made” basis, coverage shall extend for two years past completion and acceptance of the CHDO’s work or services and as evidenced by annual Certificates of Insurance. 35.17 If a policy does expire during the life of this Agreement, then a renewed Certificate of Insurance must be sent to the County forty-five (45) business days prior to the expiration date. 35.18 Cancellation and Expiration Notice: Section 1 General Provisions Page 15 of 51 Newtown CDC CHDO Agreement Insurance required under this Agreement shall not be permitted to expire, be canceled, or materially changed without thirty (30) business days prior written notice to the County. 35.19 If the CHDO provides professional or semi-professional personal services under this Agreement for which malpractice or professional liability coverage is available, such as medical, psychiatric, or legal services, then the CHDO shall carry minimum liability coverage of $2,000,000 each occurrence and provide the County with proof of coverage. 35.20 Subcontractor: The CHDO’s certificate(s) shall include all Subcontractors as insureds under its policies or the CHDO shall furnish to the County separate certificates for each Subcontractor. All coverages for Subcontractors shall be subject to the minimum requirements identified above. 35.21 Approval: Any modification or variation from the insurance requirements in any agreement must have prior approval from the County whose decision shall be final. Such action will not require a formal Amendment. 35.22 Exceptions: In the event the CHDO is a public entity, the Insurance Requirements shall not apply to such public entity. Such public entity shall provide a Certificate of Self-Insurance or a Certificate of Proof of Pool Insurance. Nongovernmental Subcontractors of the CHDO shall comply with all insurance terms. 36.0 BONDING 36.1 The CHDO shall not commence performance or receive any reimbursements under this Agreement until such time as an assurance of performance (performance bond) shall have been provided in the full amount of this Agreement. 36.2 Any performance bond shall be from a company with a rating not less than B++ and shall be in form acceptable to the Maricopa County Attorney. 36.3 The CHDO shall provide the County with documentation of required bonding. 36.4 Nothing contained in this paragraph shall limit the ability of the CHDO to provide multiple assurances provided that the total assured amount shall be not less than the full amount of this Agreement. 37.0 GRIEVANCE PROCEDURE The CHDO shall establish a system through which applicants for, and recipients of, services may present grievances and may take appeals about eligibility and other aspects of the CHDO’s work under this Agreement. The grievance procedure shall include provisions for notifying the applicants for, and recipients of, services of their eligibility or ineligibility for service and their right to appeal to the County if the grievance is not satisfied at the CHDO’s level. This system shall include protest procedures for decisions related to contract awards and requests for reasonable accommodations for persons with disabilities. 38.0 NONDISCRIMINATION 38.1 The CHDO, in connection with any services or other activities under this Agreement, shall not in any way discriminate against any person on the grounds of race, color, religion, sex, national origin, age, disability, political affiliation or belief. The CHDO shall include this clause in all of its Subcontracts. 38.2 The CHDO shall comply with requirements of the Housing and Urban Development Equal Access Rule at 24 C.F.R. Part 5, Final Rule 5863, to ensure equal access to housing and services regardless of gender identity. Section 1 General Provisions Page 16 of 51 Newtown CDC CHDO Agreement 39.0 EQUAL EMPLOYMENT OPPORTUNITY 39.1 The CHDO shall not discriminate against any employee or applicant for employment because of race, age, disability, color, religion, sex, or national origin. 39.2 The CHDO shall each take affirmative action to ensure applicants are employed and that employees are treated during employment without regard to their race, age, disability, color, religion, sex, or national origin. Such action shall include but is not limited to the following: employment, upgrading, demotion or transfer, recruitment, or recruitment advertising, lay-off or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 39.3 The CHDO shall and shall cause its Subcontractors to comply with: 39.3.1 Title VI and VII of the Civil Rights Act of 1964, as amended (42 U.S.C. §§ 2000a, et seq.); 39.3.2 the Rehabilitation Act of 1973, as amended (29 U.S.C. §§ 701, et seq.); 39.3.3 the Age Discrimination in Employment Act of 1967, as amended (29 U.S.C. §§ 621, et seq.); 39.3.4 the Americans With Disabilities Act of 1990 (42 U.S.C. §§ 12101, et seq.); and 39.3.5 Arizona Executive Order 2009-09, as amended, et seq. which mandates that all persons shall have equal access to employment opportunities. 40.0 DISABILITY REQUIREMENTS The CHDO agrees that any electronic or information technology offered under this Agreement shall comply with A.R.S. §§41-2531 and 41-2532 and Section 508 of the Rehabilitation Act of 1973, which requires that employees and members of the public shall have access to and use of information technology that is comparable to the access and use by employees and members of the public who are not individuals with disabilities. 41.0 UNIFORM ADMINISTRATIVE REQUIREMENTS By entering into this Agreement, the CHDO agrees to comply with all applicable provisions of Title 2, Subtitle A, Chapter II, Part 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS contained in Title 2 C.F.R. §§ 200, et seq. 42.0 FINANCIAL MANAGEMENT The CHDO shall establish and maintain a separate, interest-bearing bank account for money provided under this Agreement, or an accounting system that assures the safeguarding and accountability of all money and assets provided under this Agreement. No part of the money deposited in the bank account shall be commingled with other funds or money belonging to the CHDO. All interest earned on the account shall be disposed of in a manner specified by the County in accordance with applicable State and federal regulations. The CHDO shall provide a signed bank account agreement authorizing the County to obtain information about the account. If an accounting system is used, it shall be in accord with generally accepted accounting principles. 43.0 RETENTION OF RECORDS 43.1 This provision applies to all financial and programmatic records, supporting document, statistical records, and other records of the CHDO that are related to this Agreement. 43.2 The CHDO shall retain all records relevant to this Agreement for six (6) years after final payment or until after the resolution of any audit questions which could be more than six (6) years, whichever is longer, and the County, federal and state auditors Section 1 General Provisions Page 17 of 51 Newtown CDC CHDO Agreement and any other persons duly authorized by the County shall have full access to, and the right to examine, copy, and make use of any and all of the records. 44.0 ADEQUACY OF RECORDS If the CHDO’s books, records and other documents related to this Agreement are not sufficient to support and document that allowable services were provided to eligible participants, the CHDO shall reimburse the County for the services not supported and documented. 45.0 COMPETITIVE BID REQUIREMENTS 45.1 Equipment If this Agreement is with other than a Public Agency, the CHDO shall obtain all equipment to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost in accordance with the following competitive bidding system: 45.1.1 Procurements in excess of $300, but less than $1,000, require oral price quotations from two or more vendors. The CHDO shall keep and maintain a record of the vendors’ verbal quotations. The CHDO’s award shall be made to the lowest bidder meeting specification requirements concerning price, conformity to specifications, and other purchasing factors. 45.1.2 Procurements exceeding an aggregate amount of $1,000 must be approved by the Assistant Director. At least three (3) bidders shall be solicited to submit written quotations. The CHDO shall solicit written quotations by issuing a Request for Quotation to at least three (3) vendors. The award shall be made to the lowest bidder meeting specification requirements concerning price, conformity to specifications, and other purchasing factors. 45.2 Supplies If this Agreement is with other than a Public Agency, then the CHDO shall obtain all supplies to be utilized under this Agreement and purchased with funds provided under this Agreement at the lowest practical cost and in accordance with a system of written quotes whenever the price is expected to be greater than $300, unless the CHDO obtains the Assistant Director’s prior written approval to purchase supplies by an alternate method. 45.3 Minority, Women and Small Business Enterprises The CHDO shall take affirmative steps to provide an opportunity for minorities, women, and small businesses to compete in the procurement of equipment and supplies under this Agreement. 45.4 Bidding Procedures If the CHDO is a Public Agency, then the CHDO's own bidding procedures shall govern. 45.5 Procedures May Be Superseded Funding source requirements relating to competitive bid procedures may supersede any or all subparts of this clause and will be specified in the Special Provisions section of this Agreement. 46.0 PROPERTY 46.1 Any County property furnished or purchased pursuant to the terms of this Agreement shall be utilized, maintained, repaired, and accounted for in accordance with instructions furnished by the County, and title to all such property shall revert to the County upon the expiration or termination of this Agreement. The costs to repair Section 1 General Provisions Page 18 of 51 Newtown CDC CHDO Agreement such property are the responsibility of the CHDO within the limits budgeted in this Agreement. 46.2 Any CHDO property furnished or purchased pursuant to the terms of the Agreement shall be utilized, maintained, repaired, and accounted for by the CHDO. Repair costs of such property shall be the responsibility of the CHDO. 47.0 IMMIGRATION LAWS AND REGULATIONS 47.1 Federal Immigration and Nationality Act 47.1.1 The CHDO understands and acknowledges the applicability of the Immigration Reform and Control Act of 1986 (IRCA). The CHDO agrees to comply with the IRCA in performing under this Agreement and to permit the County to inspect personnel records to verify such compliance. 47.1.2 By entering into this Agreement, the CHDO warrant compliance with the Federal Immigration and Nationality Act (FINA) and all other federal immigration laws and regulations related to the immigration status of its employees. The CHDO shall obtain statements from their subcontractors certifying compliance and shall furnish the statements to the County upon request. These warranties shall remain in effect through the term of the Agreement. The CHDO and their subcontractors shall also maintain Employment Eligibility Verification forms (I-9) as required by the U.S. Department of Labor’s Immigration and Control Act for all employees performing work under the Agreement. I-9 forms are available for download at USCIS.GOV. 47.1.3 The CHDO may request verification of compliance for any employee or Subcontractor performing work under the Agreement. Should the County suspect or find that the CHDO or any of its Subcontractors are not in compliance, then the County may pursue any and all remedies allowed by law, including, but not limited to: suspension of work, termination of the Agreement for default, and suspension or debarment (or both) of the CHDO. All costs necessary to verify compliance are the responsibility of the CHDO or its Subcontractor. 47.2 Arizona Law: The CHDO warrants that it is in compliance with A.R.S. § 41-4401 (e- verify requirements) and further acknowledges that: 47.2.1 That then CHDO and its Vendors, if any, warrant their compliance with all federal immigration laws and regulations that relate to their employees and their compliance with A.R.S. § 23-214; 47.2.2 A breach of a warranty under this Subparagraph 46.2.2 shall be deemed a material breach of this Agreement and the County may immediately terminate this Agreement without liability; and 47.2.3 The County and any contracting government entity retain the legal right to inspect the papers and employment records of any CHDO or Vendor employees who works on this Agreement to ensure that the CHDO or Vendor is complying with the warranty provided under this Subparagraph 46.2.3 and that the CHDO agrees to make all papers and employment records of those employees available during normal working hours in order to facilitate such an inspection. 48.0 DRUG FREE WORKPLACE ACT The CHDO and the Administrator agree to comply with the Drug-Free Workplace Act of 1988 (41 U.S.C. §§ 701, et seq.), which requires that the CHDO and the Administrator and Section 1 General Provisions Page 19 of 51 Newtown CDC CHDO Agreement grantees of federal funds must certify that they will provide drug-free workplaces. This certification is a precondition to receiving a grant or entering into this Agreement. 49.0 GOVERNOR’S EXECUTIVE ORDER NO. 88-26 The CHDO is required to use the Arizona Taxonomy of Human Services for reporting and contracting purposes. 50.0 EMPLOYMENT DISCLAIMER 50.1 This Agreement is not intended to constitute, create, give rise to, or otherwise recognize a joint venture agreement, partnership, or other formal business association or organization of any kind amongst the Parties, and the rights and obligations of the Parties shall be only those expressly set forth in this Agreement. 50.2 The CHDO agrees that no individual performing under this Agreement on behalf of the CHDO may be considered a County agent, employee, or representative and that no rights of County civil service, County retirement, or County personnel rules shall accrue to or apply to any such individual. The CHDO shall have total responsibility for all salaries, wages, bonuses, retirement, withholdings, workers’ compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and the CHDO shall indemnify, defend, and hold harmless the County with respect thereto. 50.3 The County agrees that no individual performing under this Agreement on behalf of County may be considered a CHDO agent, employee, or representative and that no rights of the CHDO civil service, the CHDO retirement, or the CHDO personnel rules shall accrue to or apply to any such individual. The County shall have total responsibility for all salaries, wages, bonuses, retirement, withholdings, workers’ compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and the County shall indemnify, defend and hold harmless the CHDO with respect thereto. 51.0 CERTIFICATION REGARDING DEBARMENT, SUSPENSION INELIGIBILITY AND VOLUNTARY EXCLUSION 51.1 The undersigned, by signing this Agreement, represents that he/she has the authority to bind the CHDO to the terms of this Certification. The CHDO, as the primary participant in accordance with 2 C.F.R. Part 180, certifies to the best of its knowledge and belief that it and its principals: 51.1.1 Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 51.1.2 Have not within a 3-year period preceding the Start Date of this Agreement, been convicted of or had a civil judgment rendered against them for (1) the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, State, or local) transaction or contract under a public transaction; (2) the violation of any federal or State antitrust statutes or (3) the commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 51.1.3 Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with the commission of any of the offenses enumerated in Sub-subparagraph 51.1.2 above; and Section 1 General Provisions Page 20 of 51 Newtown CDC CHDO Agreement 51.1.4 Have not, within a three-year period preceding this Start Date of this Agreement, had one or more public transactions (federal, state, or local) terminated for cause or default. 51.2 The CHDO agrees to include, without modification, this clause in all lower tier covered transactions (i.e., transactions with Subcontractors) and in all solicitations for lower tier covered transactions related to this Agreement. 52.0 CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS 52.1 The CHDO agrees that this Agreement and employees working on this Agreement will be subject to the whistleblower rights and remedies in the pilot program on contractor employee whistleblower protections established at 41 U.S.C. § 4712 by section 828 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112–239) and section 3.908 of the Federal Acquisition Regulation; 52.2 The CHDO shall inform its employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 U.S.C. § 4712, as described in section 3.908 of the Federal Acquisition Regulation. Documentation of such employee notification must be kept on file by the CHDO and copies provided to County upon request; and 52.3 The CHDOt shall insert the substance of this clause, including this Paragraph 52.0, in all subcontracts over the simplified acquisition threshold ($250,000 as of June 2021). 53.0 WRITTEN CERTIFICATION PURSUANT TO A.R.S. § 35-393.01 If the CHDO engages in for-profit activity and has 10 or more employees, and if this Agreement has a value of $100,000 or more, then the CHDO certifies it is not currently engaged in, and agrees for the duration of this Agreement not to engage in, a boycott of goods and services from Israel. This certification does not apply to a boycott prohibited by 50 U.S.C. § 4842 or a regulation issued pursuant to 50 U.S.C. § 4842. 54.0 SURVIVAL The indemnification, hold harmless, defense, and non-liability provisions of this Agreement shall have full force and effect notwithstanding any other provisions in this Agreement and shall survive the termination or expiration of this Agreement. 55.0 FORCE MAJEURE 55.1 Neither Party shall be liable for failure of performance, nor incur any liability to the other Party on account of any loss or damage resulting from any delay or failure to perform all or any part of this Agreement if such delay or failure is caused by events, occurrences, or causes beyond the reasonable control and without negligence of the Parties. Such events, occurrences, or causes will include Acts of God/Nature (including fire, flood, earthquake, storm, hurricane, or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, riots, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, lockout, blockage, embargo, labor dispute, strike, pandemic, and interruption or failure of electricity or telecommunication service. 55.2 Each Party, as applicable, shall give the other Party notice of its inability to perform and particulars in reasonable detail of the cause of the inability. Each party must use best efforts to remedy the situation and remove, as soon as practicable, the cause of its inability to perform or comply. Section 1 General Provisions Page 21 of 51 Newtown CDC CHDO Agreement 55.3 The Party asserting Force Majeure as a cause for non-performance shall have the burden of proving that reasonable steps were taken to minimize delay or damages caused by foreseeable events, all non-excused obligations were substantially fulfilled, and the other Party was timely notified of the likelihood or actual occurrence that would justify such an assertion, so that other prudent precautions could be contemplated Page 22 of 51 Newtown CDC CHDO Agreement SECTION 2 SPECIAL PROVISIONS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Section 2 Special Provisions Page 23 of 51 Newtown CDC CHDO Agreement 1.0 STANDARDS The CHDO shall perform the work and provide the services identified in the Work Statement and shall immediately notify the Department whenever the CHDO is unable to, or anticipates an inability to, perform any of the work, or provide any of the services required by the terms of this Agreement. The CHDO acknowledges that any inability to perform the work and provide the services, or comply with the standards set forth in this Agreement may subject the CHDO to the remedies provided in Paragraph 5.0, Default and Remedies for Noncompliance provided in the Special Provisions. 2.0 COMPLIANCE WITH LAWS, RULES & REGULATIONS This Agreement and the Parties to it, are subject to all applicable federal, state, or local laws, rules, and regulations. The CHDO shall ensure compliance, and the CHDO shall comply with all applicable laws, rules, and regulations, without limitation to those designated within this Agreement. Refer to Paragraph 5.0, Default and Remedies for Noncompliance provided in the Special Provisions. 3.0 COMPLIANCE WITH REQUIREMENTS REGARDING ELIGIBILITY FOR PUBLIC BENEFITS 3.1 The CHDO shall comply with State and other laws regarding eligibility for public benefits including A.R.S. §§ 1-501 and 1-502 which state that public benefits shall only be provided to eligible applicants who are citizens of the United States, or are Qualified Non-Citizens: 3.1.1 All applicants authorized to receive public benefits must provide documentation of their lawful presence in the United States through a verification process. 3.1.2 All eligible applicants must also execute a sworn affidavit stating that the documentation provided during the verification process to prove citizenship or qualified non-citizen is true. 3.1.3 The Affidavit Demonstrating Lawful Presence in the United States or similar form shall be used to document compliance with requirements 1 and 2, above. 3.1.4 Maricopa County and its subcontracted entities are required to report “discovered violations” of federal immigration law. 3.1.5 Federal public benefits are defined in A.R.S. § 1-501 as any grant, contract, loan, professional license, or commercial license provided by an agency of the United States or by appropriated funds of the United States; and any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of the United States or by appropriated funds of the United States. 3.1.6 State or local public benefits are defined in A.R.S. § 1-502 as any grant, contract, loan, professional license, or commercial license provide by an agency of the state or local government or by appropriated funds of a state or local government; and any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefit, or any other similar benefit for which payments or assistance are provided to an individual, household, or family eligibility unit by an agency of a state or local government or by appropriated funds of a state or local government. Section 2 Special Provisions Page 24 of 51 Newtown CDC CHDO Agreement 3.2 Programs, services, or assistance such as soup kitchens, crisis counseling and intervention, and short-term shelter which meet the following conditions are exempt from A.R.S. §§ 1-501 and 1-502: 3.2.1 deliver in-kind services at the community level, including through public or private nonprofit agencies; 3.2.2 do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient’s income or resources; and 3.2.3 are necessary for the protection of life or safety. 4.0 AUDIT REQUIREMENTS 4.1 In accordance with A.R.S. § 11-624, the CHDO shall, at its own expense, file with the County by March 31st of each Agreement year, either: 4.1.1 Audited financial statements prepared in accordance with federal single audit requirements; or 4.1.2 Financial statements of the HOME program prepared in accordance with generally accepted accounting principles audited by an independent certified public accountant; or 4.1.3 A Comprehensive Annual Financial Report, prepared in accordance with generally accepted accounting principles audited by an independent certified public accountant. 5.0 DEFAULT AND REMEDIES FOR NONCOMPLIANCE 5.1 Notwithstanding anything to the contrary, this Section shall not be deleted or superseded by any other provision of this Agreement. 5.2 This Agreement may be immediately terminated by the County if the Contractor defaults by failing to perform any objective or breaches any obligation under this Agreement, or any event occurs that jeopardizes the Contractor’s ability to perform any of its obligations under this Agreement. The County reserves the right to have service provided by persons other than the Contractor if the Contractor is unable or fails to provide required services within the specified time frame in the work statement. 5.3 Failure to comply with the requirements of this Agreement and all the applicable federal, state, or local laws, rules, and regulations may result in suspension or termination of this Agreement, the return of unexpended funds (less just compensation for work satisfactorily completed that, to date, has not been paid), the reimbursement of funds improperly expended, or the recovery of funds improperly acquired. Noncompliance includes, but is not limited to: 5.3.1 Non-performance of any obligations required by this Agreement. 5.3.2 Noncompliance with any applicable federal, state, or local laws, rules or regulations, including Department of Treasury guidelines, policies, or directives. 5.3.3 Unauthorized expenditure of funds. 5.3.4 Improper disposition of program income. 5.3.5 Noncompliance with applicable financial record requirements, accounting principles, or standards established by OMB circulars and 2 C.F.R. §§ 200, et seq. 5.3.6 Noncompliance with recordkeeping, record retention, or reporting requirements. Section 2 Special Provisions Page 25 of 51 Newtown CDC CHDO Agreement 5.4 Notwithstanding the suspension or termination of this Agreement, or the final determination of the proper disposition of funds, the Contractor shall, without intent to limit or with restrictions, be subject to the following: 5.4.1 All awards of funding shall be immediately revoked, and any approvals related to the project described in the Special Provision or Work Statement shall be deemed revoked and canceled. Thereby, any entitlements to compensation after suspension or termination of this Agreement are similarly revoked and unavailable. 5.4.2 Not be relieved of any liability or responsibility associated with the Special Provision or Work Statement. 5.4.3 Acknowledge that suspension or termination of this Agreement does not affect or terminate any rights against the Contractor at the time of suspension or termination, or that may accrue later. Nothing herein shall be construed to limit or terminate any right or remedy available under Agreement or rule. 5.4.4 Waiver of a breach or default of any term, covenant, or condition of this Agreement or any federal, state, or local law, rule, or regulation shall not operate as a waiver of any subsequent breach of the same or any other term, covenant, condition, law, rule, or regulation. 5.5 The Contractor shall, upon notice or with knowledge obtained by itself or others, take any and all proactive actions necessary, and provide any and all applicable remedies to address and correct any act by itself, and any and all of its agents, representatives, officers, officials, directors, employees, volunteers, successors, assigns, or Subcontractors that resulted in any wrongdoing (intentional or unintentional); misuse or misappropriation of funds; the incorrect or improper disposition of funds; any violation of any federal, state, or local law, rule, or regulation; or the breach of any certification or warranty provided in this Agreement. 6.0 SPECIAL FEDERAL AND PROJECT PROVISIONS 6.1 In accordance with HUD HOME Program regulations, the CHDO agrees to use HOME funds pursuant to the Five-Year Consolidated Plan and the Annual Action Plan as approved by HUD and all requirements of 24 C.F.R. Part 92. The CHDO will require that this requirement is included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and agreements under grants, loans, and cooperative agreements) and that all Subcontractors and Vendors shall certify and disclose accordingly. The Annual Action Plan is hereby incorporated by reference into this Agreement. The project activities are described in Section 3 (Work Statement). The CHDO shall be responsible to provide reports of all activities related to the Work Statement. The CHDO agrees to submit to the County the following reports: 6.1.1 Project Proceeds Reports: due quarterly with supporting documentation and with each Request for Reimbursement. 6.1.2 Quarterly Performance Reports: due on the 15th of January, April, July, and October of the preceding three (3) months (i.e., the July report covers the months of April, May, and June). Reports shall address all project activities described in the Work Statement. Failure to submit timely Quarterly Performance Reports will result in suspension of reimbursement of funds requested until all reports are brought current. 6.1.3 Request for Reimbursements: The Request for Reimbursement Form must include all supporting documentation, a Match Log, and Summary of Section 2 Special Provisions Page 26 of 51 Newtown CDC CHDO Agreement Project Proceeds/Recaptured Funds Report. The CHDO will complete the documents and submit them to the County for approval. 6.1.4 HOME Setup Reports: due within one (1) year after the date this Agreement is fully executed. According to 24 C.F.R. § 92.250(b): Before Setup Reports are submitted, the CHDO must evaluate the project in accordance with guidelines that the owner/developer has adopted for determining a reasonable level of profit or return on owner’s or developer’s investment in a project and must not commit or invest any more HOME funds, alone or in combination with other governmental assistance, than are necessary to provide quality affordable housing that is financially viable for a reasonable period (at a minimum, the period of affordability in accordance with 24 C.F.R. §§ 92.252 and 92.254) and that will not provide a profit or return on the owner’s or developer’s investment that exceeds the CHDO’s established standards for the size, type, and complexity of the project. 6.1.5 HOME Completion Reports: due no later than sixty (60) calendar days after final payment is requested. The HOME Completion Report must include all required documents as described in this Agreement. Within ten (10) business days of receiving the HOME Completion Report, the County will enter project completion data into the HUD Integrated Disbursement and Information System (IDIS). The date the HOME Completion Report is entered into IDIS is the date the affordability period commences for each activity. 6.1.6 Initial Request for Reimbursement form: with required documentation for each activity is due within 45 (forty-five) calendar days of submitting a HOME Setup Report. 6.1.7 Other HUD: required reporting data as applicable. 7.0 PROJECT PROCEEDS Project proceeds may be retained and used by the CHDO for County approved HOME- eligible or other housing activities that benefit low-income families. The CHDO will submit a Project Proceeds report with each request for reimbursement, and upon request of the County. 8.0 REAL PROPERTY ACQUIRED OR IMPROVED WITH HOME FUNDS Upon expiration of this Agreement, any real property under the CHDO’s control that was acquired or improved in whole or in part with HOME funds must be occupied by low- income households and in compliance with HOME occupancy limits and must meet the requirements to qualify as affordable housing subject to encumbrances and obligations described in any applicable recorded deed restrictions. The option to use deed restrictions or covenants running with the land must include period of affordability set forth in 24 C.F.R. §§ 92.252 and 92.254. 9.0 DE-OBLIGATION 9.1 The County may de-obligate funds under this Agreement under the foregoing circumstances upon written notice to the CHDO: 9.1.1 The CHDO completes performance under the Work Statement without using all funds provided by the County under this Agreement; 9.1.2 The County’s original allocation was a loan and the CHDO paid the loan; 9.1.3 A Program activity under the Work Statement is cancelled or changed for reasons other than non-performance; or Section 2 Special Provisions Page 27 of 51 Newtown CDC CHDO Agreement 9.1.4 This Agreement has been terminated. 10.0 REDUCTION IN FUNDS 10.1 The County, through an Amendment, may reduce Agreement funds under either of the following circumstances: 10.1.1 The County determines that the CHDO failed to use the funds provided by the County under this Agreement in compliance with the terms and conditions outlined herein; or 10.1.2 The CHDO failed to perform in accordance with Section 3 (Work Statement) and identified timelines. 11.0 REPAYMENT OF FUNDS The CHDO shall repay funds that are defined as unallowable costs under applicable laws and regulations. This repayment obligation extends to, but is not limited to, questioned costs identified in either a monitoring review or Single Audit report. Repayment of funds is required by HUD for failed projects during the period of affordability for projects financed under this Agreement. The County may specify in writing the terms of the repayment or alternative terms in lieu of repayment however in no case shall repayment or alternative terms be accomplished later than one hundred eighty (180) calendar days following the written determination of by the County of noncompliance. 12.0 ADMINISTRATIVE REQUIREMENTS 12.1 The County is responsible for ensuring HUD HOME Program funds are administered in accordance with the HOME regulations, 24 C.F.R. Part 92. The County shall monitor the CHDO’s activities to ensure compliance with the following. 12.1.1 FINANCIAL RECORDS: accounting system and financial records comply with the applicable requirements and standards of 2 C.F.R. Part 200 and are subject to monitoring from time to time by the either the County or by HUD. 12.1.1.1 The CHDO agrees to adhere to accounting principles and procedures, to utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. The CHDO further agrees to maintain an adequate accounting system that provides for appropriate grant accounting (including calculation of project proceeds). 12.1.1.2 The CHDO shall adhere to applicable audit requirements as described, and in accordance with 2 C.F.R. Part 200. In addition, the CHDO must provide annual single-audit reports or annual audited financial statements to the County. 12.1.1.3 The CHDO shall adhere to the repayment of investment requirements set forth in 24 C.F.R. § 92.503. Any HOME Funds invested in housing that do not meet the affordability requirements for the period specified in 24 C.F.R. § 92.252 or § 92.254, as applicable, must be repaid in accordance with 24 24 C.F.R. § 92.503(b)(3). 12.1.2 DOCUMENTATION AND RECORD KEEPING 12.1.2.1 Records to be Maintained: The CHDO shall maintain all records required by the federal regulations specified in 24 C.F.R. § 92.508 that are pertinent to the activities to be Section 2 Special Provisions Page 28 of 51 Newtown CDC CHDO Agreement funded under this Agreement. Such records shall include, but not be limited to records: 12.1.2.1.1 Demonstrating that the CHDO is and remains a qualified CHDO; 12.1.2.1.2 Providing a full description of each activity undertaken and its impact; 12.1.2.1.3 Required to determine the eligibility of activities; 12.1.2.1.4 Demonstrating compliance with environmental review requirements; 12.1.2.1.5 Required to document the acquisition, improvement, use or disposition of real property acquired or improved with HOME funds (Properties retained shall continue to meet eligibility criteria); 12.1.2.1.6 Demonstrating citizen participation; 12.1.2.1.7 Demonstrating compliance regarding acquisitions, displacement, relocation and replacement housing; 12.1.2.1.8 Demonstrating continuing compliance for all activities and/or compliance with resale provisions of the affordability standards; 12.1.2.1.9 Documenting compliance with the fair housing and equal opportunity components of the HOME program; 12.1.2.1.10 Required by 24 C.F.R. § 570.502, 2 C.F.R. Part 200 and OMB Circulars; 12.1.2.1.11 Other records necessary to document compliance with HOME Program requirements; 12.1.2.1.12 Documenting compliance with Section 3 of the Housing and Urban Development Act of 1968 and implementing regulations at 24 C.F.R. Part 135; 12.1.2.1.13 Demonstrating compliance with deeds of trust, promissory notes, and forgivable loans; 12.1.2.1.14 Supporting that the CHDO and has maintained client data demonstrating clients served have met the income and other criteria required by federal law and that no unlawful discrimination occurs in the solicitation or selection process of low- income persons or groups and that no conflict of interest exists, as described in 24 C.F.R. § 92.356; 12.1.2.1.15 Documenting compliance with underwriting and subsidy layering requirements, including the requirement that the CHDO will not invest any more HOME funds in combination with other federal assistance than is necessary to provide affordable housing, as described in Section 2 Special Provisions Page 29 of 51 Newtown CDC CHDO Agreement 24 C.F.R. § 92.250 and further described in HUD Notice CPD 15-11; and 12.1.2.1.16 Documenting compliance with federal, State, and local laws and regulations, including compliance with A.R.S. §§ 1-501 and 1-502. 12.1.2.2 Outcome Measures – The CHDO shall maintain data that supports the accomplishment of the desired outcomes as indicated in the Work Statement. 12.1.2.3 Disclosure – The CHDO understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the County’s or the CHDO’s responsibilities with respect to services provided under this Agreement, is prohibited unless written consent is obtained from such person receiving service. 12.1.2.4 Program Activity Reports – Such reports as required by the County including, but not limited to, HOME Setup/Completion Reports, Quarterly Performance Reports, Quarterly Project Proceeds Reports, Match Reports, Section 3 and MBE/WBE information, and other HUD- required reporting data, as applicable shall be submitted at the completion of each Activity that is described under the Work Statement. 12.1.2.5 Audits and Inspections – All of the CHDO’s records with respect to any matters covered by this Agreement shall be made available to the County, its designees, and the federal government, at any time during normal business hours, as often as the County deems necessary, to audit, examine and make excerpts or transcripts of all relevant data. Any relevant deficiencies noted in audit reports shall be addressed by the CHDO within 45 calendar days after receipt by the CHDO. Failure of the CHDO to comply with above audit requirements shall constitute a violation of this Agreement and may result in the withholding of future payments. The Annual Audit requirement is applicable to all levels of funding received by the CHDO under this Agreement, even if the level of funding is less than the current thresholds cited in 2 C.F.R. § 200.501. 12.1.2.6 Performance Monitoring – The County will monitor the CHDO to determine whether HOME funded activities are implemented and administered in accordance with all applicable federal requirements and gauge performance of the CHDO against goals and performance standards required herein. The CHDO shall assure that all required files and documentation are available at scheduled monitoring reviews. Failure of the CHDO to administer, implement and perform as determined by federal regulations and County shall constitute non-compliance with this Agreement. Non-compliance is a violation of this Agreement and may result in the withholding of future payments. Section 2 Special Provisions Page 30 of 51 Newtown CDC CHDO Agreement 13.0 ENVIRONMENTAL REVIEW CONDITIONS 13.1 Completion of the Environmental Review Record (ERR) is mandatory before taking any physical action on a site or entering into choice limiting contracts. Only exempt activities such as administration may be reimbursed by the County prior to receiving a written release of HOME funds to the CHDO. Exempt activities described in 24 C.F.R. § 58.34(a)(1)-(11) are activities that generally have no physical impact on the environment. If federal funds are involved in an activity, neither federal nor non-federal funds may be expended or committed by contract (conditional or not) for property acquisition, rehabilitation, conversion, lease, repair, or construction activities, until HUD and/or the County provides written authorization based on approval of an ERR. 13.2 An option agreement (to purchase land or a single-family residence) on a proposed site or property is allowable prior to the completion of the environmental review if the option agreement is contingent upon a HUD authorization to use funds based on the completion of the ERR. The cost of the option must be a nominal portion of the purchase price. 13.2.1 The CHDO agrees to comply with: the National Environmental Policy Act of 1969 (P.L. 91-190) pursuant thereto 40 C.F.R. Parts 1500 – 1508; Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities pursuant thereto Title 24 C.F.R. Part 58, Subpart A; CPD Notice 01-11 HOME Environmental Review Requirements and with all conditions required in the process of the environmental assessment. 13.2.2 The CHDO shall comply with the following requirements insofar as they apply to the performance of this Agreement: 13.2.2.1 Clean Air Act, 42 U.S.C. § 7401, et seq., as amended. 13.2.2.2 Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251, et seq, as amended, § 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308 and all regulations and guidelines issued thereunder. 13.2.2.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. § 50, as amended. 13.2.2.4 The CHDO agrees to comply with conditions set forth by the Arizona Department of Environmental Quality (ADEQ) or another County agency, as required. 13.2.2.5 Flood Disaster Protection - In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC § 4001), the CHDO shall assure that for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes. (In the case of housing, the homeowner must obtain and maintain flood insurance as a condition of funding, or funds may not be utilized.) 13.2.2.6 Historic Preservation - The CHDO shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966 (16 U.S.C. § 470) and the procedures set forth in 36 C.F.R. § 800, Advisory Council on Historic Preservation Procedures for Protection of Section 2 Special Provisions Page 31 of 51 Newtown CDC CHDO Agreement Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Office for all rehabilitation and demolition of historic properties that are fifty (50) years old or older, or that are listed or eligible for the National Register of Historic places, or places included on any state or local historic property inventory or any archaeological findings. 13.2.2.7 Release Of Funds (ROF) - No funds may be encumbered prior to the completion of the Environmental Review. The ERR must be completed before any funds are obligated. Funding is also conditioned upon the completion of the ERR of every activity site by address. The responsibility for certifying the appropriate ERR and ROF shall rest with the County. It is the responsibility of the CHDO to notify the County and to refrain from making any commitments and expenditures on a site until a ROF has been issued by the County. Failure to meet these conditions will mean that requested funds will not be disbursed. 14.0 ADDITIONAL CERTIFICATIONS, WARRANTIES, AND AGREEMENTS 14.1 The CHDO agrees to undertake the same obligations as the County has undertaken to HUD pursuant to the County’s Annual Action Plan (included in this Agreement by reference) and shall adhere to the federal Certifications reference below, including Attachment 1 - Certification for a Drug-Free Workplace (HUD form 50070) and Attachment 2 - Certification of Payments to Influence Federal Transactions (HUD form 50071). The CHDO shall hold the County harmless, defend, and indemnify the County against any damage or other liability that the County may incur with respect to HUD as a result of any failure on the part of the CHDO. 14.2 The CHDO agrees: 14.2.1 To ensure that the total HOME investment in each unit does not exceed the maximum per unit subsidy (24 C.F.R. § 92.250) for the area in which the property is located. This limit is updated annually. Refer to Attachment 3, of this Agreement); 14.2.2 To ensure that the period of affordability imposed on the project reflects the per unit subsidy limit. The minimum affordability period is five years for HOME subsidies of less than $15,000 per unit; ten years for subsidies of $15,000 to $40,000; and 15 years for subsidies greater than $40,000. 14.2.3 To ensure that the annual Homeownership Value Limits are not exceeded. HOME funds for homebuyer assistance or single-family rehabilitation projects must have an initial purchase price that does not exceed 95% of the median purchase price for Maricopa County. These limits apply to homeownership units assisted with HOME funds for the following single-family activity types: new housing construction for resale; homebuyer assistance; acquisition with rehabilitation for resale; and owner-occupied housing rehabilitation. This limit is updated annually. Refer to Attachment 3, of this Agreement. Section 2 Special Provisions Page 32 of 51 Newtown CDC CHDO Agreement 14.2.4 To utilize and make available the HOME funds in conformity with the non-discrimination and equal opportunity requirements set out in the HUD regulations in the National Housing Affordability and Stability Act (24 C.F.R. §§ 92.350-92.454), which include: 14.2.5 Implementation of the Fair Housing Act, (42 C.F.R. §§ 3601-3620), and implementing regulations at 24 C.F.R. Part 100 (discriminatory conduct under the Fair Housing Act), Executive Order 11063 (Equal Opportunity in Housing) as amended by Executive Order 12259 (leadership and coordination of fair housing in federal programs) (3 C.F.R. §§ 1958-1963 Comp., p. 652 and 3 C.F.R. § 1980, Comp. p. 307) and implementing regulations at 24 C.F.R. Part 107 (nondiscrimination and equal opportunity in housing under Executive Order 11063), and Title VI of the Civil Rights Act of 1964 (42 U. S. C. §§ 2000d, et seq.), and implementing regulations at 24 C.F.R. Part 1 (Nondiscrimination in Federally Assisted Programs of HUD); 14.2.6 To affirmatively further fair housing, which includes taking appropriate actions to overcome the effects of any impediments identified in the County’s “Analysis of Impediments to Fair Housing Choice” and maintain records reflecting any actions taken in regard to fair housing; 14.2.7 To comply with 24 C.F.R. Part 92, Subpart H, which includes affirmative marketing requirements, labor requirements, and lead- based paint requirements; 14.2.8 To adhere to Executive Order 13166 (Improving Access to Services for Persons with Limited English Proficiency) in accordance with Title VI of the Civil Rights Act of 1964; 14.2.9 Implementation of the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. §§ 6101, et seq.) and the regulations at 24 C.F.R. Part 146 (nondiscrimination on the basis of age in HUD programs or activities receiving federal financial assistance); 14.2.10 Implementation of the prohibitions against discrimination on the basis of handicap under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §§ 794, et seq.) and implementing regulations at 24 C.F.R. Part 8 (nondiscrimination based on handicap in federally assisted programs and activities of HUD) and the Americans with Disabilities Act 1990 (42 U.S.C. §§ 12101, et seq.); 14.2.11 To adhere to the requirements of the Executive Order 11246 (Equal Employment Opportunity) and the regulations issued under the Order at 41 C.F.R. Chapter 60 (3 C.F.R. §§ 1964-65, Comp, p. 339); 14.2.12 Implementation of the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1702u) (Employment Opportunities for Business and Lower Income Persons in Connection with Assisted Activities); 14.2.13 Implementation of the requirements of Executive Orders 11625 and 12432 regarding MBE development and 12138 regarding WBE, and Regulations S. 85.36 (e) and of Section 281 of the National Housing Affordability and Stability Act; and Section 2 Special Provisions Page 33 of 51 Newtown CDC CHDO Agreement 14.2.14 Implementation of the requirements of the HUD 246 Rule (24 C.F.R. Part 5 Final Rule 5863) to ensure equal access to housing and services regardless of gender identity. 14.3 The CHDO agrees to prepare and adopt acceptable procedures and requirements for affirmatively marketing units in the HOME Activities, when HOME Program- assisted housing contains five (5) or more rental units, by providing information about the availability of HOME Program-assisted units that are vacant at the time of completion or that later become vacant. The CHDO shall make good faith efforts to provide information and to otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market to the available housing during the period of affordability. These procedures and requirements are not applicable when units are occupied by families referred from a Public Housing Authority's (PHA) waiting list, or to families receiving tenant-based rental assistance provided from HOME funds. 14.4 HOME funds may not be used for operations or modernization of public housing projects financed under the Housing Act of 1937. 14.5 The County, as the participating jurisdiction, assumes all the responsibilities for environmental review, decision making, and action under the National Environmental Policy Act of 1969 (42 U.S.C. § 4321) and the other provisions of the law that would apply to HUD were HUD to undertake such Activities as Federal Activities in accordance with 24 C.F.R. Part 58 (environmental review procedures for entities assuming HUD environmental responsibilities). The County will assume the responsibilities for the Request for Release of Funds. The CHDO agrees not to commit or incur expenditures for HOME activities until this environmental review process has been completed. Should it be determined that the CHDO has incurred expenses in violation of the NEPA requirements, the CHDO will be responsible for the full costs for such expenditures and repayment of any related reimbursements. The CHDO shall provide all necessary assistance to the County in completing this environmental review process. 14.6 The CHDO agrees to comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. §§ 4291-4655) and the governmental implementing regulations at 49 C.F.R. Part 24; and follow a residential anti-displacement and relocation assistance plan required under §104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding as they apply to the HOME Program. 14.7 The CHDO shall comply with the Davis-Bacon Act (40 U.S.C. §§ 276a, et seq.), Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327, et seq.) related acts, and the provisions of 24 C.F.R. Part 24 regarding Government Debarment and Suspension as they apply to this HOME Program. 14.8 The CHDO shall comply with the Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001, et seq.) as they apply to this HOME Program. 14.9 The CHDO shall comply with the Drug-Free Workplace Act of 1988 as it applies to the HOME Program. 14.10 Housing assisted with HOME Program funds constitutes HUD-assisted housing for the purposes of the Lead-Based Paint Poisoning Prevention Act (42. U.S.C. §§ 4801, et seq.) and is therefore subject to 24 C.F.R. Part 35. 14.11 No person who is an employee, agent, consultant, officer or elected official, or appointed official who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who is in a position in a decision making process or gains inside information with regard to these activities, Section 2 Special Provisions Page 34 of 51 Newtown CDC CHDO Agreement may obtain a financial interest or benefit from a HOME-assisted activity, either for himself/herself or those whom the person has family or business ties, during his/her tenure or for one year thereafter. 15.0 REGARDING SUBCONTRACTS AND VENDORS 15.1 Approvals – Unless expressly authorized in this Agreement, exempt activities such as architectural, engineering and administration may be undertaken and reimbursed by the County prior to receipt of HUD Request Release of Funds (RROF). Exempt activities described in 24 C.F.R. § 58.34(1)(1)-(11) are activities that generally have no physical impact on the environment. Otherwise, the CHDO shall not expend or commit federal or non-federal funds by contract (conditional or not) for property acquisition, rehabilitation, conversion, lease, repair, or construction activities, until HUD has provided written authorization based on approved ERR. Any pre-Agreement costs enter into by a subcontract(s) with any agency or individual in the performance of this Program that are not exempt activities without the Release of Funds (ROF) from the County prior to the execution of such Agreement. 15.2 DUNS Number -- All subcontractors shall have a valid DUNS number and an active profile in the federal System for Award Management, or SAM. Documentation of the DUNS Number must be included in all project files. 15.3 Fees – The CHDO and all subcontractors under this Agreement shall not charge servicing, origination, or other fees for the costs of administering the HOME program, except as permitted by 24 C.F.R. § 92.214(b)(1). 15.4 Selection Process – The CHDO shall ensure that all subcontracts in the performance of this Agreement are awarded on a fair and open competitive basis. Executed copies of all subcontracts shall be forwarded to the County along with documentation, if requested, concerning the selection process. 15.5 Section 3 of the Housing and Urban Development Act of 1968 – The CHDO shall include the Section 3 clause in every subcontract and shall take appropriate action pursuant to the subcontract upon a finding that a subcontractor is in violation of regulations issued by HUD. The CHDO shall not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of the regulations under 24 C.F.R. Part 135. The CHDO has the responsibility of determining Section 3 eligibility. 15.6 Monitoring – The CHDO shall monitor/review all subcontracted services on an annual basis to assure contract compliance. Results of monitoring efforts shall be summarized in Quarterly Performance Reports and supported with documented evidence, if requested, of follow-up actions taken to correct areas of noncompliance. 16.0 THE COUNTY CERTIFIES 16.1 That a public purpose is served by the County contracting for activities identified in Section 3 (Work Statement). 16.2 That the HOME Program funds designated for the Work Statement constitute reasonable and prudent assistance. 17.0 PROGRAM COMPLETION 17.1 Upon completion of the Work Statement, all unspent HOME Program funds and property shall be forfeited to the County for reallocation as defined by the Maricopa HOME Consortium Policies and Procedures. Section 2 Special Provisions Page 35 of 51 Newtown CDC CHDO Agreement 17.2 The disposition of any property purchased during the term of this Agreement shall follow Section 1 (General Provisions), Paragraph 46.0 (Property). 17.3 The CHDO shall continue to be responsible for compliance activities until all HOME Program requirements and contractual obligations are met including affordability restrictions. The CHDO’s obligation shall not end until all close-out requirements are completed. The County will notify the CHDO in writing that a Completion Report is due to the County within sixty (60) calendar days of one of the following occurrences: 17.3.1 All funds have been expended for the activity; 17.3.2 The Work Statement has been completed; 17.3.3 This Agreement has expired; or 17.3.4 The Agreement has otherwise been terminated. 17.4 Following the receipt and approval of the Completion Report for each activity, the County will notify the CHDO in writing that each activity is closed. In compliance with 24 C.F.R. § 92.502(d) all project completion data shall be entered in HUD’s IDIS within 120 calendar days of the final drawdown for all activity types. Project completion means projects have all necessary title transfer and construction work completed, projects comply with HOME requirements including property standards set forth at 24 C.F.R. § 92.251, the final draw has been disbursed; and the projection completion data entered into IDIS. 17.5 For the purposes of a rental project, the following shall apply: 17.5.1 The project shall be completed when the site receives a Certificate of Occupancy; 17.5.2 It is not required for a beneficiary to be identified for the project to be considered complete. Vacant rental units may be marked as vacant when completion data is entered into IDIS. 17.5.3 If any rental unit remains unoccupied six (6) months after the date of project completion, the CHDO must provide the County information about marketing efforts to place occupants in the unit and, if appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible. 17.5.4 Within eighteen (18) months after the date of project completion, if efforts to market the unit are unsuccessful and the unit is not occupied by an eligible beneficiary (or beneficiaries), the CHDO shall be required to repay all HOME funds invested in the unit. 18.0 FAILURE TO MAKE PROGRESS 18.1 The failure of the CHDO to make progress according to the Work Statement may result in the termination of this Agreement, de-obligation of funds, or recapture of funds. The CHDO agrees to meet with the County at the site at which the funded activity is to take place to discuss progress and allow the County to provide technical assistance if: 18.1.1 The CHDO fails to complete an Environmental Review pursuant to Section 2 (Special Provision) Paragraph 12.0 (Environmental Review Conditions) within one hundred and eighty (180) calendar days after the date this Agreement is executed; 18.1.2 The CHDO fails to commit funds to a specific local project in accordance with the terms of this Agreement within eighteen (18) months after the date of full execution of this Agreement. Commit for the purposes of this paragraph shall have the same meaning as in 24 C.F.R. § 92.2(2)(i)-(iii). Section 2 Special Provisions Page 36 of 51 Newtown CDC CHDO Agreement 18.1.3 The CHDO fails to expend HOME funds in performance of project activities in accordance with the terms of this Agreement within twenty-four (24) months after the date of full execution of this Agreement. 18.1.4 Within six (6) months after the date of project completion, if a unit remains unoccupied, then the CHDO must provide the County information about current marketing efforts and, if appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible. Within 18 months from the date of project completion, if efforts to market the unit are unsuccessful and the unit is not occupied by an eligible tenant, then HUD will require repayment of all HOME funds invested in the unit. A unit that has not served a low-income household has not met the purpose of the HOME program. Therefore, the costs associated with the unit are ineligible. This tracking provides the County with early notice of any units at risk of going unoccupied as described in 24 C.F.R. § 92.252. 18.2 The County will terminate this Agreement and recapture funds if the does not perform the activities described in the Work Statement of this Agreement. The County, in its sole discretion, may forgo providing technical assistance and require repayment of funds as outlined in this Agreement under Section 1, Paragraph 5.0, or terminate the Agreement for cause under Section 1, Paragraph 5.0. 19.0 GENERAL CONDITIONS 19.1 Administrative Change Orders– The Chairman of the Board of Supervisors is authorized upon the recommendation of the Human Services Department Director and Legal Counsel to make changes within the general scope of the Agreement on behalf of the County through Administrative Change Orders. Administrative Change shall be approved and fully executed by the Chairman of the Board of Supervisors and the City. Administrative Change Orders may address any of the following areas: 19.1.1 Modifications to the project timeline if the last day of the project timeline is within the Agreement term; 19.1.2 Modifications to Budget line items if the Agreement Amount remains unchanged; 19.1.3 Modifications required by federal, state, or County regulations, ordinances, or policies; and 19.1.4 Modifications to Administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by HUD or local regulations, policies or requirements. 19.2 It is the responsibility of the CHDO to ensure the latest documents are consulted and followed. 20.0 REVERSION OF ASSETS Unexpended funds must be de-obligated and returned to the County for reallocation. At the expiration of the Agreement, the County, upon recommendation of the Maricopa HOME Consortium staff, may reallocate any unencumbered funds per the Consortium reallocation policy, as stated in the Maricopa HOME Consortium Intergovernmental Agreement- Three Year Cooperative Agreement. A written letter to de-obligate funds will be sent to the CHDO from the County a minimum of ninety (90) calendar days prior to termination of the Agreement. Section 2 Special Provisions Page 37 of 51 Newtown CDC CHDO Agreement 21.0 VIOLENCE AGAINST WOMEN REAUTHORIZATION ACT of 2013 The CHDO must comply with VAWA 2013, which applies to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation, and which must be applied consistent with all nondiscrimination and fair housing requirements. The CHDO must give a Notice of Occupancy Rights to tenants and applicants to ensure they are aware of their rights under VAWA, maintain an emergency transfer plan, and document incidents of domestic violence, dating violence, sexual assault, and stalking. Page 38 of 51 Newtown CDC CHDO Agreement SECTION 3 WORK STATEMENT MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Section 3 Work Statement Page 39 of 51 Newtown CDC CHDO Agreement MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2021 DUNS Number: 022225143 Project: Urban County Land Trust Program-West-side CHDO (Homeownership) Type of Property: Acquisition and Rehabilitation of 5 Single Family Houses 1.0 FUNDING HOME PY 2021 CHDO FUNDS OTHER RESOURCES TOTAL BUDGET $443,507 $1,105,993 $1,549,500 2.0 SOURCE AND AMOUNT OF MATCH: SOURCE AMOUNT WISH/IDEA Funds $110,877 TOTAL $110,877 3.0 SCOPE OF WORK 3.1 Project Description: The CHDO will acquire and rehabilitate five (5) single-family houses within the city limits of Glendale, Peoria, and Surprise. This project is a scattered-site single-family homeownership project. The Parties agree to execute an addendum at the time the property is identified. An Addendum to this Agreement identifying individual properties by street address for participation in the CHDO's Community Land Trust Program (CLT) will be executed before funding is made available regarding each property. Funds will be paid to the CHDO only after it has met the commitment requirements as set forth in 24 C.F.R. § 92.2 (1) and (2), respectively, and is prepared to commence rehabilitation within twelve months. Newtown is committed to buying at least one house in each of the cities. 3.1.1 Funds for rehabilitation are obligated by completing a detailed set of specifications (work write-up) and completing a detailed rehabilitation cost estimate based upon those specifications. The cost estimate may include a contingency for construction change orders. The CHDO must inspect each property prior to occupancy and at project completion to ensure compliance with applicable standards and codes. Each property must be free from any defects that pose a danger to the health and safety of occupants and must meet written rehabilitation standards and local codes and ordinances at project completion. Copies of the final inspection report must be retained in the project files and submitted to the County upon submitting a completion report. Section 3 Work Statement Page 40 of 51 Newtown CDC CHDO Agreement 3.1.2 After rehabilitation is completed, the homes will be sold to eligible low- income first-time homebuyers. Properties will be acquired using the CHDO’s line of credit, following environmental review approval from Maricopa County. 3.1.3 In addition to the requirements set forth in Section 4 (Compensation), the CHDO will execute a Deed of Trust and Note provided by the County and naming the County as the Beneficiary in order to secure any funds provided to the CHDO as reimbursement for acquisition costs. Upon sale of the property to an eligible buyer, the County will provide a Deed of Release and Re-conveyance (By Beneficiary) for the secured acquisition funds. 3.1.4 Resale provisions: Resale provisions will be used to ensure compliance with the period of affordability required by HUD at 92.254 of the HOME regulations. The affordability restrictions will be secured by the CLT Ground Lease and a Declaration of Affirmative Land Use Restrictions. 3.1.5 The completed units will be sold through the CLT program in which the buyer only purchases the improvements to the real property and enters into a 99-year CLT Ground Lease with the CHDO. The CLT Ground Lease contains provisions that require that the housing to be used as the buyer's principal residence and restricts resale/ transfer to only Low- Income buyers. In addition, the CLT Ground Lease contains a shared appreciation provision that limits the sale price of the housing and helps ensure affordability for future buyers. A Memorandum of Ground Lease and Right of First Refusal will be recorded. A "Performance" Deed of Trust” will also be recorded naming the CHDO as the Beneficiary; ensuring the CHDO is notified in the event the owner of the home attempts to refinance or transfer the property. 3.1.6 The shared appreciation provision will conform to the Maricopa HOME Consortium’s Resale Provisions. "Fair Return" for leasehold properties is defined as the lessee’s purchase price, plus 25% of the lessee's share of the increase in leasehold value at time of resale based on a leasehold valuation performed by a licensed appraiser. 3.1.7 Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictive Covenant for HOME Project will be executed between the buyer and the CHDO and recorded against the land to secure the Period of Affordability as required by HUD. The Period of Affordability will be based on the total amount of HOME funds invested in the housing. 3.1.8 Eligible buyers will be required to complete an approved homebuyer education class, homeownership counseling, and a CLT orientation. The CLT orientation fully explains the ground lease, resale restrictions, shared equity, and all other provisions of the CLT program. Once a purchase contract is approved, the CHDO will execute a Homebuyer Resale Agreement with the approved low-income homebuyer. 3.2 Project Purpose: The Project will create homeownership opportunities for five low- income households, which is rated a high priority in the Consolidated Plan. Section 3 Work Statement Page 41 of 51 Newtown CDC CHDO Agreement 3.3 Project Beneficiaries: Five first-time homebuyers at or below 80% of the area median income will benefit from this Project. Beneficiaries’ income eligibility will be verified by the CHDO’s staff and will comply with 24 C.F.R §. 92.203(d)(1). 3.4 Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. 3.5 Project Staff: The CHDO shall maintain staff qualified to perform the duties of the project. The CHDO shall immediately notify the County regarding any changes in staff committed to the project. The County reserves the right to review the qualifications of new staff committed to the project after the execution of this Agreement. The CHDO will be responsible for all communications with the Maricopa HOME Consortium, providing all updates and as needed reporting. In addition, any complaints will be the responsibility of the CHDO. 3.6 Subcontractors: The CHDO will oversee every aspect of the project. This oversight includes, but is not limited to, day-to-day operations; preparing budgets; managing the budget, timeline, and change orders; issuing a Request for Proposal and selecting the general contractor and Subcontractors. The CHDO shall select Subcontractors in accordance with the Administrative Requirements of this Agreement. The CHDO shall contract with responsible and qualified Subcontractors to perform the duties of the project. The CHDO shall verify the qualifications of each Subcontractor through license verification, references, and SAM.gov. 3.7 Project Affordability: The family or individual acquiring the housing must qualify as low-income, as defined in 24 C.F.R. § 5.609, and maintain the housing as the principal residence throughout the period of affordability, which shall be for a period of 15 years from the date that the completion report is entered into HUD’s Integrated Disbursement and Information System (IDIS). Resale provisions will be used to ensure compliance with the period of affordability required by HUD at 24 C.F.R. § 92.254 of the HOME regulations. 3.7.1 Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictions (LURA) will be executed to secure the Period of Affordability and require the housing to be used as the buyer’s principal residence, as required by HUD. The LURA will include a due on sale clause to ensure that funds are recaptured if the property is sold during the Affordability Period. The CHDO will use it’s Right of First Refusal to purchase the home and resell the home to an eligible low-income homebuyer. 4.0 OBJECTIVES AND OUTCOMES: OBJECTIV E OUTCOMES AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY DECENT HOUSING Single-Family Housing Rehab and Emergency Rehab, Homebuyer Assistance Homebuyer Activities, Acq/Rehab of rental housing, Acq/New Construction of rental housing, Expansion of assisted rental units in the private marketplace Housing Activities in a targeted revitalization area Section 3 Work Statement Page 42 of 51 Newtown CDC CHDO Agreement 5.0 LOGIC MODEL: PERFORMANCE INDICATORS OUTPUTS INPUTS/ RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES Development Staff, Funding and Contractors Acquire and rehabilitate five (5) units of Affordable Housing to be held in the CLT Five (5) Households Increased affordable housing for a low-income family. Increased homeownership . Improved neighborhoods and quality of life. Decent and affordable housing 6.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 02/03/2021 Execute CHDO Agreement with Maricopa County 12/15/2021 Site Selection 03/31/2023 Environmental Reviews to Maricopa County 03/31/2023 Homeownership counseling/buyer preparation 04/30/2022 Execute Homebuyer Agreement for Resale 04/30/2023 Acquisition 03/31/2023 Produce Scope of Work and Bid Selection 04/30/2023 Homebuyer Financing Secured 04/30/2023 Rehabilitation/Construction 04/30/2023 MCHSD Final inspection 4/30/2023 Resale of Properties to Eligible Homebuyers 04/30/2023 Expend Proceeds 05/15/2023 Final Close-out /Project Completion Form 06/30/2023 Any change to the Timeline will need to be approved by the County. 7.0 ACTIVITY BUDGET SUMMARY: ACTIVITY PY 2021 HOME CHDO FUNDS OTHER RESOURCES TOTAL ACTIVITY BUDGET Acquisition $443,507 739,993 1,183,500 Rehabilitation 175,000 175,000 Developer Fee 116,000 116,000 Closing costs 75,000 75,000 TOTALS $443,507 $1,105,993 $1,549,500 Section 3 Work Statement Page 43 of 51 Newtown CDC CHDO Agreement Note: A total of $2,500 per activity will be withheld as retainage from the total amount of HOME funds obligated to each activity until a completion report is submitted to the County. 8.0 SALES PRICE: 8.1 To ensure the homes are affordable for the target income group, the sales price shall be calculated so that each buyer’s monthly housing expenses (including principal, interest, property taxes, and home insurance) does not exceed 35% of the buyer’s gross monthly household income, unless there are documented compensating factors. In addition, the housing will have an initial purchase price or estimated after rehabilitation that does not exceed 95% of the median purchase price for the area, as described in 24 C.F.R. § 92.254 (a)(2). Refer to Attachment 3 to this Agreement. 8.2 The buyer must obtain a mortgage loan with a fixed term and interest rate and lender fees may not exceed 5% of the mortgage amount. The income of the buyer shall be determined according to the requirements at 24 C.F.R. § 92.203. 9.0 PROJECT PROCEEDS AND DISPOSITION: All proceeds generated from the development activities shall be considered Project proceeds and subject to the requirements set forth in HOME Program regulations, as defined in 24 C.F.R. § 92. Project proceeds shall be retained and expended by the CHDO for the acquisition and rehabilitation of additional properties under this Agreement. Project proceeds shall be tracked by the CHDO and reported to the County with each Request for Reimbursement and at the request of the County. 10.0 CONVERSION TO RENTAL: If the home has not been sold to an eligible homebuyer within nine (9) months after the receipt of a Certificate of Occupancy, then it must be converted to a HOME rental unit that complies with all HOME requirements for the period of affordability applicable to such rental units, according to 24 C.F.R. § 92.254(a)(3). If the vacant property is not converted, then HOME funds must be repaid to the County. Page 44 of 51 Newtown CDC CHDO Agreement SECTION 4 COMPENSATION MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Section 4 Compensation Page 45 of 51 Newtown CDC CHDO Agreement 1.0 COMPENSATION 1.1 The CHDO will only utilize HOME funds to pay for eligible activities and costs of those activities permitted in 24 C.F.R. § 92.300 and not specifically prohibited under 24 C.F.R. § 92.214 (Prohibited Activities and Fees). 1.2 The CHDO shall be reimbursed utilizing the Catalog of Federal Domestic Assistance (CFDA): 14.239, HOME Investment Partnerships Program provided to the County through the HUD. 1.3 Subject to the availability and authorization of funds for the explicit purposes set forth below, the County will pay the CHDO compensation for services rendered as indicated in the following subsections. 1.4 The CHDO shall not retain any funds drawn down in excess of immediate cash needs (to be used within 15 calendar days after draw down) to cover subsequent requests for reimbursement. Any excess funds must be returned to the County within 30 calendar days after receipt. The CHDO also must return to the County any interest that is earned on these funds that are drawn down and not expended for eligible costs within 15 calendar days after the funds have been drawn. 2.0 METHOD OF PAYMENT 2.1 The CHDO agrees to submit reimbursement requests utilizing the approved Reimbursement Request Form to the County, along with the Match Log Certification Form. The CHDO may request funds only after the CHDO has satisfied the funding contingencies and federal Environmental Review conditions and have a written agreement in place for Project activities. Requests for reimbursement must be made using the request for payment incorporated in this Agreement. 2.2 The CHDO may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount needed. Program income must be disbursed before the CHDO requests funds from the County. 2.3 The County agrees to reimburse the CHDO for actual allowable costs incurred, upon certification of HUD Environmental Release of Funds and submittal by the CHDO of an itemized statement of actual expenditures incurred, supported by appropriate documentation. Reimbursement by the County is not to be construed as final in the event that HUD disallows reimbursement for the Program or any portion thereof. 2.4 The County shall reimburse the CHDO on a Net 0 payment standard. 3.0 TIMELINESS 3.1 The CHDO shall submit monthly requests for reimbursement by the 15th calendar day of the month following the month close out. 3.2 The CHDO shall submit the final reimbursement for each Work Statement not later than 15 calendar days after the reimbursable period ends. 3.3 The CHDO shall submit to the County a Request for Reimbursement of all expenditures within the same fiscal year in which the expenditures are incurred. The fiscal year runs July 1st through June 30th and all Requests for Reimbursement shall be submitted no later than July 30th for the preceding fiscal year. 3.4 All requests for reimbursements shall be submitted to: HSDFINANCE@MARICOPA.GOV. Section 4 Compensation Page 46 of 51 Newtown CDC CHDO Agreement 4.0 REIMBURSEMENT The County shall provide financial assistance in an amount not to exceed four hundred forty-three thousand five hundred and seven dollars ($443,507) subject to the terms of this Agreement and availability of funds. 5.0 FINAL REIMBURSEMENT UPON AGREEMENT TERMINATION 5.1 Upon termination of this Agreement at the date identified on page 1 of this Agreement, or as may be amended, the CHDO shall submit the final reimbursement request. 5.1.1 This request shall be submitted no later than 30 calendar days after the termination date except as noted immediately below. 5.1.2 If the termination date is between June 10th and June 30th, then the final reimbursement request shall be submitted by July 10th. 5.1.3 The final progress report, and any other required reports that may be applicable such as the Project proceeds report, shall be submitted with the final reimbursement request. Page 47 of 51 Newtown CDC CHDO Agreement SECTION 5 ATTACHMENTS & FORMS MARICOPA COUNTY HUMAN SERVICES DEPARTMENT Section 5 Attachments & Forms Page 48 of 51 Newtown CDC CHDO Agreement Attachment 1 Section 5 Attachments & Forms Page 49 of 51 Newtown CDC CHDO Agreement Attachment 2 Section 5 Attachments & Forms Page 50 of 51 Newtown CDC CHDO Agreement Attachment 3 HOME Maximum Per-Unit Subsidy Limits This limit determines the maximum amount of HOME funds that may be invested on a per-unit basis in HOME-assisted housing projects, as of June 4, 2020. Bedroom Size Maximum HOME per unit subsidy limit 0 Bedroom $153,314 1 Bedroom $175,752 2 Bedrooms $213,718 3 Bedrooms $276,482 4 Bedrooms $303,490 5 Bedrooms $303,490 Please request updated HOME maximum per unit investment limits from the Maricopa County Housing and Community Development Division on an annual basis, as these limits are adjusted annually by the U.S. Department of Housing & Urban Development (HUD) For current Maricopa HOME Consortium limits, refer to additional Maricopa County Information Bulletins here: https://www.maricopa.gov/3893/Funding-Notices-Bulletins More information can be found here: https://www.hudexchange.info/resource/2315/home-per-unit-subsidy/ HOME Homeownership Value Limits (95% Limits) CHDOs using HOME funds for homeownership assistance for new housing construction for resale must have an initial purchase price that does not exceed 95% of the median purchase price for Maricopa County that does not exceed $375,000 as of July 1, 2021. Please request updated HOME Homeownership Value Limits from the Maricopa County Housing and Community Development Division on an annual basis, as these limits are adjusted annually by the U.S. Department of Housing & Urban Development (HUD) or go to www.hsd.maricopa.gov or HUD’s website for the updated versions each year. Section 5 Attachments & Forms Page 51 of 51 Newtown CDC CHDO Agreement Attachment 4 ADDENDUM TO THE AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND __________________________ ACTIVITY: Acquisition and Rehabilitation of Five Single Family Residential Houses CONTRACT START DATE: CONTRACT END DATE: CONTRACT NUMBER: ACTIVITY FUNDING AMOUNT: I. The purpose of this Addendum is to identify the property(ies) acquired for program activities. II. Pursuant to the Agreement Section 3 (Work Statement), Paragraph 18.0 (General Conditions), the following property is hereby identified for purchase: ________________ II. Remaining terms of the original Agreement not amended hereby remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement to be effective on the year and day first above written. NEWTOWN CDC (CHDO) MARICOPA COUNTY Authorized Signature Date Bruce Liggett, Director Date CITY OF CHANDLER Approved as to form: Authorized Signature Date Deputy County Attorney Date